Sunshine Investments, Inc. v. Brooks

642 So. 2d 408, 1994 WL 169986
CourtSupreme Court of Alabama
DecidedMay 6, 1994
Docket1921631
StatusPublished
Cited by5 cases

This text of 642 So. 2d 408 (Sunshine Investments, Inc. v. Brooks) 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
Sunshine Investments, Inc. v. Brooks, 642 So. 2d 408, 1994 WL 169986 (Ala. 1994).

Opinion

Philip B. Ahn and Sunshine Investments, Inc., d/b/a Economy Inn, appeal from judgments entered on jury verdicts awarding Debra Ann Brooks ("Debra Ann") and Robert Edison Brooks ("Robert") a total of $43,317.53 in damages and attorney fees. Debra Ann and Robert, wife and husband, are former employees of an Economy Inn owned by Sunshine Investments. Robert recovered against Sunshine Investments on his claim alleging failure to pay overtime; Debra Ann recovered against Sunshine Investments on her claims alleging failure to pay overtime and alleging wrongful termination, as defined under 29 U.S.C. § 215(a)(3), which prohibits termination of employees for making complaints about failure to pay overtime; and Debra Ann recovered against Ahn for defamation. This appeal presents only the sufficiency *Page 409 of the evidence on the defamation and wrongful termination claims.

Ahn is the sole owner of Sunshine Investments. In the early part of 1991, Debra Ann began working as a desk clerk at an Economy Inn owned by Sunshine Investments. She was paid for her work at the rate of $4.50 an hour. She continued to work as a desk clerk until April 1991, when she was made an assistant manager. She testified that although she took the managerial position, Sunshine Investments continued to pay her on an hourly basis. She testified that although she sometimes worked over 40 hours per week, she was never paid overtime.

Robert originally began working at the same Economy Inn as a part-time maintenance helper in April 1991. In June 1991, Robert entered into a contract with Sunshine Investments whereby he agreed to become a full-time maintenance helper. Ahn agreed in the contract to pay Robert $258.00 every two weeks. He also agreed to allow Robert and Debra Ann to live in an apartment in the motel rent-free. Robert testified that he later became the manager of the motel.

In June 1991, Debra Ann reported a robbery at the Economy Inn that she said occurred while she was working at the front desk. Debra Ann said that a man came in, stabbed her in the stomach, and took money from the cash register. She did not receive medical attention after the incident. Robert testified that Ahn deducted from his pay the amount of money that was allegedly taken during the robbery. Robert also testified that Ahn told him he thought Debra Ann had staged the robbery herself.

Robert Lee Anderson testified that he worked as a maintenance helper at the Economy Inn while the Brookses worked there. He testified that Ahn and Sunshine Investments did not pay him overtime although he occasionally worked over 40 hours a week. He testified that he was present when Debra Ann complained to Ahn about the fact that the employees were not being paid overtime. He also testified that one day when he was painting Ahn's house, Ahn told him that Debra Ann had "done it herself" and had stabbed herself. Anderson testified that when Ahn told him this, he was not working in his capacity as a maintenance man at Economy Inn but was simply working for Ahn painting his house.

Debra Ann testified that she often worked overtime hours, but that Ahn refused to compensate her for them at "time and a half"; that he would either pay her for the hours at her regular pay rate, or he would not pay her for those hours at all. Debra Ann testified that she contacted the Department of Labor concerning his refusal to pay. She testified that Ahn fired her because she repeatedly talked to him about his not paying her or the other employees fully. Debra Ann testified that she did not "stage" or fake the robbery, and she testified that her attorney wrote to Ahn a demand for a retraction of the statements he had made concerning her and the robbery.

She further testified that she was unable to obtain her time cards from Sunshine Investments, but that in her estimation it owed her approximately $2,085 in unpaid overtime. She also testified that since Ahn had fired her, she had not obtained another job, although she had looked for one. Robert's employment contract with Ahn stated that Debra Ann was to receive $768 a month. Debra Ann testified, however, that she did not consider herself bound by the contract between Robert and Ahn.

Debra Ann also testified that on various occasions Ahn deducted from her paycheck shortages in the cash register's balance. Debra Ann also testified that Ahn stated that he fired her because he believed that she had used a customer's credit card to purchase some flowers.

Ahn's attorney moved for a directed verdict on the wrongful discharge claim and the defamation claim, but the trial court denied the motion. The jury awarded Robert and Debra Ann $1,500 each against Sunshine Investments on their claims for unpaid overtime compensation. The jury awarded Debra Ann compensatory damages of $1000 and punitive damages of $3,000 against Ahn on the defamation claim. The jury awarded Debra Ann damages of $13,259.88 on her wrongful discharge claim against Sunshine *Page 410 Investments. The circuit court entered judgments on these verdicts and also entered an award of liquidated damages as provided for under 29 U.S.C. § 216(b), awarding an additional $13,259.88 to Debra Ann on the wrongful discharge claim and an additional $1,500 each to Debra Ann and Robert on their claims for unpaid overtime compensation. It also awarded attorney fees to the Brookses as provided under 29 U.S.C. § 216(b). Sunshine Investments and Ahn made a motion for judgment not withstanding the verdict or a new trial, which the circuit court denied.

I. DEFAMATION CLAIM
The defendants argue in their brief that the plaintiffs did not present a prima facie case of defamation against either Ahn or Sunshine Investments. Because the verdict and the judgment on the defamation claim were solely against Ahn individually, we will not consider the arguments on behalf of Sunshine Investments.

Ahn first argues that he cannot be held individually liable for any defamatory statements, because, he argues, he was acting within the line and scope of his employment when he made the statements. For example, he argues that there was no evidence to justify "piercing the corporate veil." Ahn cites no authority to support the proposition that if he engaged in tortious conduct, only the corporation and not he can be held liable. Ahn misconstrues the law if he assumes that, merely because he is employed by a corporation, that employment protects him from all civil liability for tortious conduct. A person is liable for the torts that he commits, regardless of the capacity in which he acts. Southeastern Constr. Co. v.Robbins, 248 Ala. 367, 27 So.2d 705 (1946); Finnell v. Pitts,222 Ala. 290, 132 So. 2 (1930)1; Chandler v. Hunter,340 So.2d 818 (Ala.Civ.App. 1976).

Ahn next argues that his statements did not constitute slander per se and that, therefore, Debra Ann's proof was deficient for failure to prove harm to her reputation.

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Cite This Page — Counsel Stack

Bluebook (online)
642 So. 2d 408, 1994 WL 169986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunshine-investments-inc-v-brooks-ala-1994.