Welsh Manufacturing, Division of Textron, Inc. v. Pinkerton's, Inc.

474 A.2d 436, 44 A.L.R. 4th 603, 1984 R.I. LEXIS 467
CourtSupreme Court of Rhode Island
DecidedMarch 9, 1984
Docket80-442-Appeal
StatusPublished
Cited by70 cases

This text of 474 A.2d 436 (Welsh Manufacturing, Division of Textron, Inc. v. Pinkerton's, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welsh Manufacturing, Division of Textron, Inc. v. Pinkerton's, Inc., 474 A.2d 436, 44 A.L.R. 4th 603, 1984 R.I. LEXIS 467 (R.I. 1984).

Opinion

OPINION

KELLEHER, Justice.

This is an action for negligence wherein the plaintiff, Welsh Manufacturing (Welsh), brought suit against a security guard company, Pinkerton’s, Inc. (Pinkerton’s), for losses sustained as a result of three major thefts. Welsh claimed that Pinkerton’s was negligent in the hiring, training, supervision, or assignment of a guard who was later found to have been a co-conspirator in connection with the Welsh thefts and that such negligence was the proximate cause of its losses. A Superior Court jury returned a verdict in favor of Welsh, judgment was rendered in accordance therewith, and Pinkerton’s now appeals.

On appeal, Pinkerton’s contends that there was insufficient evidence relative to each theory of liability to warrant their individual submission to the jury. Additionally, it challenges the propriety of the trial court’s refusal to grant its motion for a new trial. We affirm the judgment of the Superior Court.

*438 Pinkerton’s is a long-established security service-corporation serving Rhode Island and neighboring areas of Massachusetts. It was engaged by Welsh for approximately thirty years to provide for the security of Welsh’s manufacturing facility, which in 1973 was located in the Olneyville section of Providence. Welsh, a division of Tex-tron, manufactured gold sunglass frames for the United States government. The Welsh complex consisted of two buildings, one across the street from the other. There were always sizable quantities of gold on the Welsh premises, and Pinkerton’s agents were aware of this fact.

Under the contract between the parties, Pinkerton’s assessed the security requirements of Welsh’s premises and daily provided one uniformed and unarmed security officer therein for twenty-four hours. During the night shift, that is, approximately midnight to early morning, the guard was required to make periodic checks of all floors in the complex, registering his presence at designated locations. Between August 24, 1973, and October 7, 1973 — a span of about forty-five days— three thefts at Welsh’s facility resulted in losses of gold in excess of $200,000. All three thefts were carried out by the same persons. The first two incidents occurred while Pinkerton’s employee, Donald Lawson (Lawson), was guarding Welsh’s facility during the night shift. On both of these occasions, Lawson admitted the perpetrators of the thefts. At the time of the third theft, Lawson had quit working for Pinkerton’s, but he testified later that he had provided vital information to parties who subsequently, on the Saturday evening of the 1973 Columbus Day weekend, broke into Welsh’s plant, put a gun to the head of the Pinkerton guard on duty, handcuffed him to a nearby machine, and “cleaned out” Welsh’s gold inventory, which had a value of close to $180,000.

Lawson was a twenty-one-year-old part-time employee who worked for Pinkerton’s on weekends. During the time of the Welsh thefts he had been employed by Pinkerton’s for less than six months. He was at this same time a member of the United States Navy. In July 1972 he had been transferred to Quonset Point Naval Air Station in North Kingstown, Rhode Island, and thereafter took up residence in a West Warwick apartment building. The jury heard Lawson’s deposition, which revealed that after having made the acquaintance of the occupant of the adjoining apartment, one Anthony Fiore, a person with known criminal proclivity, Lawson had agreed to procure a security-guard position at Pinkerton’s for the purpose of assisting the neighbor in stealing the valuable commodities stored on premises to which he might be assigned. In return, Lawson too would share in the fruits of such thefts. Accordingly, Lawson had applied to Pinkerton's in March 1973, and in alleged violation of what Welsh claimed at trial to be a duty to make a reasonable investigation, Pinkerton’s hired him.

We consider briefly the principles of law involved in the action before us. In deciding this case, we align ourselves with the majority of jurisdictions that recognize the direct liability of an employer to third parties who are injured by acts of unfit, incompetent, or unsuitable employees. 1 Illustrative of these are Ponticas v. K.M.S. Investments, 331 N.W.2d 907 (Minn.1983), and C.K. Security Systems, Inc. v. Hartford Accident & Indemnity Co., 137 Ga. App. 159, 223 S.E.2d 453 (1976). In Ponti-cas, a tenant who was sexually assaulted by the manager of her apartment complex brought suit against the owner of the complex. The tenant alleged that the owner *439 was negligent in hiring the manager, who had a criminal record. On his application for the position, the manager had provided the names of two references, one without an address, the other without a phone number. When asked if he had ever been convicted of any crimes, he entered “traffic tickets.” The owner of the complex did not investigate further. It was adduced at trial that, in fact, the two references were his mother and his sister and at the time of his application he was on parole following a conviction in California for burglary and receiving stolen goods. Ponticas, 331 N.W.2d at 909-10. The court stated that an employer has the duty to exercise ordinary care in hiring persons who, because of the nature of the employment, could present a threat of injury to members of the public. Id. at 911. The court further stated that the scope of an employer’s pre-selection investigation is related to the degree of risk a potential employee poses to the third party but imposed no duty upon the employer to inquire into an applicant’s criminal record. The Ponticas court found, however, that because the employment involved the manager’s access to the apartment by use of a passkey, the scope of the owner’s preselection investigation was not commensurate with the risks involved. Id. at 913.

In C.K. Security Systems, Inc. v. Hartford Accident & Indemnity Co., 137 Ga. App. 159, 223 S.E.2d 453 (1976), a guard who had been furnished by a security company to a landlord pursuant to a contract entered the office of one of the landlord’s tenants and stole a blank check. He made the check payable to himself for an amount representing a six to seven thousand dollar overdraft, forged the tenant’s signature, and deposited the check in the guard’s own account in another bank. The tenant’s bank authorized payment, having failed to check the signature. The bank and its insurer brought an action against the security company and its employee, claiming that the company had negligently hired its guard. In support of its motion for summary judgment, the guard’s employer offered an affidavit showing the following: the guard had passed a personnel test with a high grade; he had been granted a permit to serve as a guard by the local police department; the security company had contacted the guard’s prior employers; the guard had passed a criminology course. There was evidence that the police department in granting its permits only inquired into felony convictions.

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Bluebook (online)
474 A.2d 436, 44 A.L.R. 4th 603, 1984 R.I. LEXIS 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welsh-manufacturing-division-of-textron-inc-v-pinkertons-inc-ri-1984.