Sparks v. Cash America International, Inc.

789 So. 2d 231, 2000 Ala. LEXIS 542
CourtSupreme Court of Alabama
DecidedDecember 29, 2000
Docket1972125 and 1972229
StatusPublished

This text of 789 So. 2d 231 (Sparks v. Cash America International, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sparks v. Cash America International, Inc., 789 So. 2d 231, 2000 Ala. LEXIS 542 (Ala. 2000).

Opinion

On Application for Rehearing

PER CURIAM.

The opinion of October 27, 2000, is withdrawn, and the following opinion is substituted therefor.

Kevin Sparks filed this breach-of-contract and fraud action against his former employer, Cash America of Alabama, Inc.; the employer’s parent corporation, Cash America International, Inc.; and his supervisor, Bill Ewing, on March 3, 1997. We affirm conditionally.

Cash America International owns and operates pawnshops worldwide. Cash America of Alabama, an Alabama corporation, operates the pawnshops in Alabama, with a place of business in Mobile County. Sparks, a management employee, had worked at a number of Cash America locations in various states. When the dispute at issue in this action arose, Sparks was working out of the Mobile County location.

Sparks received an annual salary; based on his job performance, he was also eligible to receive incentive bonuses, pursuant to Cash America International’s incentive-bonus plan. A dispute arose concerning bonuses that Sparks claimed Cash America International and Cash America of Alabama (hereinafter sometimes collectively referred to as “Cash America”) owed him. Sparks sued, alleging that during 1994 and [233]*2331995 he had received inadequate incentive-bonus payments while he was a management employee of Cash America. In addition, he alleged that Cash America had converted certain incentive bonuses and certain items of personalty. Finally, Sparks alleged that Cash America had breached a contract by refusing to comply with the provisions of a 1994 incentive-bonus plan.

Sparks claimed he had relied upon certain representations made by employees of Cash America, including his supervisor, Bill Ewing, to the effect that he would receive an incentive-bonus payment pursuant to the terms of the 1994 bonus plan if he agreed to accept a position as a regional manager. Applying the performance factors of the 1994 bonus plan, Sparks calculated his bonus for the first nine months of 1995 to exceed $32,000. The actual bonus Sparks received for that period was $7,500. Sparks claimed an out-of-pocket loss of $25,000 and claimed unspecified damages for mental anguish.

Cash America claimed that the 1994 bonus plan contained both objective factors and discretionary factors and that the $7,500 bonus award had been based in part on the “discretionary” factors. Cash America also claimed that Sparks was never promoted to the position of regional manager over all of Cash America’s Division Five locations, but served only as an assistant to the vice president of that division, with supervisory authority over only half the stores in that division. Thus, Cash America claimed that the payment of the bonus was discretionary and that Sparks was entitled only to a bonus for the stores that he directly supervised within the region.

On March 18, 1998, Cash America moved for a summary judgment as to all of Sparks’s claims. The trial court granted the motion with regard to Sparks’s count alleging conversion of currency, but denied the motion as to all other claims. A jury trial began on June 2, 1998. Sparks rested his case on June 5, 1998. Cash America moved for a judgment as a matter of law (“JML”), pursuant to Rule 50(a), Ala. R.Civ.P. The court granted the motion as to counts 1, 2, 3, and 10 of Sparks’s amended complaint-these counts contained Sparks’s claims relating to his 1994 relocation and also the conversion claim that had remained after the court had entered the summary judgment. The breach-of-contract and fraud claims relating to Sparks’s 1995 incentive-bonus payment went to the jury. The judge charged the jury on the law of promissory fraud and intentional suppression, specifically as it related to the incentive-bonus plan and the calculation of the bonus payments.

On June 5, 1998, the jury returned a verdict in favor of Sparks and against Cash America, awarding $150,000 in compensatory damages and $1 million in punitive damages. The jury found in favor of Ewing, Sparks’s direct supervisor. On the same day, the court entered a judgment on the jury verdict. On June 19, 1998, Cash America moved for a JML or, in the alternative, a remittitur or a new trial.

The trial court heard Cash America’s postjudgment motion on July 10, 1998. The court, by an order dated August 7, 1998, granted the motion for a remittitur. The order purported to reduce the award to $75,000 in compensatory damages and $225,000 in punitive damages, for a total damages award of $300,000. However, in its order the court did not permit Sparks to accept or to reject the remittitur. Rule 59(f), Ala.R.Civ.P., permits a court to grant a conditional remittitur:

“(f) Remittitur. The court may, on motion for new trial, require a remittitur as a condition to the overruling of the motion for new trial; and, the accep[234]*234tance of such remittitur by the plaintiff shall not, on appeal by the defendant, prejudice the plaintiffs right to seek reinstatement of the verdict in its full amount.”

Thus, the plaintiff may choose either to accept or to reject the remittitur. If the plaintiff accepts the remittitur, then the jury’s award is reduced accordingly. If the plaintiff rejects the remittitur, then the defendant is granted a new trial. The trial court neglected to give Sparks' the option to accept or to reject the remittitur.

At 11:33 a.m. on August 26,1998, Cash America filed a motion to alter or amend the court’s August 7 order to give Sparks an election. Cash America requested that the August 7, 1998, order be “altered, amended, modified or reissued” to ensure the validity of the order and also requested “such other, further, and different relief as justice may require.” At 3:41 p.m. that same day, Sparks filed a notice of appeal from the August 7 order. On August 27, 1998, Sparks filed a motion requesting the trial court to affirmatively “strike defendants’ motion to alter or amend” and requesting that Cash America’s motion be “held for naught.” The court denied Sparks’s motion. On August 31, 1998, the trial judge “amended” his August 7 order in which he had ordered a remittitur of the awards. The court amended the order so as to give Sparks until September 14,1998, to accept the remittitur; otherwise, the amendment provided, Cash America would get a new trial. Sparks pursued his appeal. This Court stayed the August 31, 1998, order to the extent it required Sparks to elect by September 14 to accept or to reject the remittitur. Cash America cross-appealed.

Sparks asserts that the August 7, 1998, order was legally defective because it did not expressly give Sparks the right to elect whether to accept the remittitur. Moreover, Sparks asserts, because he had appealed from that order before the trial court attempted to amend it, the amendment had no effect. Therefore, Sparks argues, both the order of August 7 and the order of August 31 are void, and the June 5 judgment, in the full amount of the verdict, must stand. We disagree.

The original order ruling on Cash America’s postjudgment motion is not void. However, the order purporting to amend the judgment to allow Sparks the right to reject the remittitur and choose instead a new trial has no effect, because that original order had already been appealed before the trial court entered the order purporting to amend it. See generally Ex parte Dowling, 477 So.2d 400, 404 (Ala.1985).

On its cross-appeal, Cash America asks this Court to reverse the original judgment of the trial court and render a judgment in its favor.

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789 So. 2d 231, 2000 Ala. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sparks-v-cash-america-international-inc-ala-2000.