Potthoff v. Jefferson Lines, Inc.

363 N.W.2d 771, 1985 Minn. App. LEXIS 3898
CourtCourt of Appeals of Minnesota
DecidedFebruary 26, 1985
DocketCX-84-1357
StatusPublished
Cited by17 cases

This text of 363 N.W.2d 771 (Potthoff v. Jefferson Lines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potthoff v. Jefferson Lines, Inc., 363 N.W.2d 771, 1985 Minn. App. LEXIS 3898 (Mich. Ct. App. 1985).

Opinion

OPINION

PARKER, Judge.

Jefferson Lines and Daniel Prins, its president, appeal from a judgment entered after a jury verdict for Douglas Potthoff. Potthoff had alleged that appellants intentionally interfered with his contractual relations with his employer, Four Star Bus Lines. Appellants claim the verdict cannot be upheld because the evidence was insufficient and because the trial court erred in refusing to sustain their justification defense as a matter of law, in excluding hearsay evidence of complaints about Pot-thoff, and in allowing the jury to award damages for emotional distress and punitive damages. They also contend the verdict was excessive as the result of passion and prejudice. We affirm in part and reverse that part of the judgment comprising damages for emotional distress.

FACTS

Potthoff brought this action against Jefferson Lines, Inc. (Jefferson), and its president, Daniel Prins, for intentional interference with contractual relations. Jefferson had employed Potthoff as a bus driver on its passenger coaches. After a bus driven by Potthoff was involved in an accident in November 1981, Jefferson fired him for failing to follow its reporting procedures.

At about the time Jefferson terminated Potthoff, four other Jefferson bus drivers began operating as Four Star Bus Lines (Four Star) with the encouragement of Jefferson and Prins. Four Star agreed to take over some of the less profitable routes that Jefferson was required to operate under its license from the ICC. Four Star and Jefferson executed a lease/purchase agreement for four buses to use on those routes and agreed on a servicing and storage arrangement for Four Star’s buses at Jefferson’s terminal. Jefferson also set its service rates lower for Four Star than for its other service customers.

Potthoff sought employment with Four Star after losing his job with Jefferson. Four Star agreed to hire him as a substitute driver, setting no definite job duration. Potthoff and former Four Star partner Irving Abbott, “a very convincing and credible witness in the view of the [trial] court,” testified that it was agreed that Potthoff would work into a full-time position as their need for additional help grew. Potthoff was warned, however, to keep a “low profile” around the Jefferson facility. The implied purpose of a low profile was to avoid causing any disruption among Jefferson employees and to avoid attracting the attention and anger of Prins.

Prins testified that he had no objection to Four Star’s hiring of discharged Jefferson employees but that he did not want them on Jefferson premises. He said repeatedly that his only reason for wanting to exclude former employees from the Jefferson terminal was that “it was not a good procedure to have employees that were dis *774 charged for cause commingling with my other workers.” He said he had no personal animosity toward Potthoff at all and that Potthoff was dismissed solely for violating reporting rules, not for insubordination, absenteeism, tardiness, misconduct, or poor job performance.

Because Pour Star stored and serviced its buses at the Jefferson facility, Four Star drivers needed to come onto Jefferson property to leave and pick up buses. Four Star had no central office of its own at that time, and Four Star personnel often met on Jefferson property to discuss business and deliver documents.

Jefferson maintains a lounge on its property known as the driver’s room, with a T.V., tables, chairs, and vending machines. Both Jefferson drivers and other drivers having their buses serviced use the room to relax or to do required paperwork.

Prins saw Potthoff on the Jefferson premises for the first time in early December 1981. Potthoff was in the driver’s room during a “meeting” where Prins was showing Jefferson drivers a new commercial filmed for Jefferson. Prins found Walter Bailey, a Jefferson supervisor, in a meeting and told him to see that Potthoff left the premises immediately. Bailey contacted Four Star partner James DiGideo and told him it was in Four Star’s “best interest” to keep Potthoff off the property if they wanted to renew their service contract in March 1981.

There is a conflict in the testimony about the second incident. Prins said he saw Potthoff inside some Jefferson offices and again told Bailey to get him off the premises. DiGideo and Abbott testified that Prins saw Potthoff bring a bus into the garage and then walk into the driver’s room. Abbott testified that Prins came into the garage, told them to “get rid of Potthoff,” and said, “I don’t care if he ever drives a bus again” and “If you don’t get rid of him, you [Four Star] won’t be here.” The Four Star partners decided immediately that they had to fire Potthoff.

At trial there was testimony that another former Jefferson driver who was working full-time for Four Star, Roger Abraham-son, spent considerably more time in the driver’s room than Potthoff. No one ever complained about his presence to Four Star. Abrahamson was hired full-time by Four Star in October 1980 and continued to work there at the time of trial.

Potthoff’s theory at trial was that Prins and Bailey intentionally interfered with his contractual relations with Four Star. Additionally, he claimed that Prins and Jefferson acted with willful indifference to his rights. Appellants contended that any interference with Potthoff’s contract was completely justified by Jefferson’s right to control its property.

The jury found defendants to have wrongfully interfered with the employment contract between Potthoff and Four Star, that such interference was, upon clear and convincing evidence, in willful indifference to Potthoff’s rights, and awarded Potthoff compensatory damages of $41,000 for lost income, $15,000 for emotional suffering, and $25,000 in punitive damages.

The trial court denied appellants’ motions for judgment notwithstanding the verdict or, in the alternative, a new trial. They appeal from the judgment subsequently entered on the verdict.

ISSUES

1. Is the evidence sufficient to sustain a verdict of intentional interference with contractual relations?

2. Did the trial court err in refusing to sustain appellants’ justification defense as a matter of law or in submitting erroneous instructions to the jury?

3. Did the trial court err in excluding hearsay evidence that Jefferson had received complaints about Potthoff?

4. Did the trial court err in allowing the jury to award damages for emotional distress?

5. Did the trial court err in allowing the jury to award punitive damages?

6. Was the verdict excessive because of passion and prejudice?

*775 DISCUSSION

In reviewing a jury verdict on appeal, the court must consider the evidence in the light most favorable to the prevailing party, and the verdict must be sustained unless it is manifestly and palpably contrary to the evidence. See, e.g., Stuempges v. Parke, Davis & Co., 297 N.W.2d 252, 256 (Minn.1980).

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Bluebook (online)
363 N.W.2d 771, 1985 Minn. App. LEXIS 3898, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potthoff-v-jefferson-lines-inc-minnctapp-1985.