BART F. VIRDEN, Judge
Family Dollar Trucking, Inc.; Family Dollar, Inc.; and Family Dollar Services, Inc. (collectively, Family Dollar) bring this appeal from a judgment entered by the Crittenden County Circuit Court on a jury's verdict awarding Jimmy Ward and Robert Huff a total of $3.25 million on their causes of action for malicious prosecution and outrage after they had been accused of theft and fired from their jobs with Family Dollar. Family Dollar argues that Huff and Ward failed to present sufficient evidence to support their causes of action and that the damages awards were excessive and not supported by the evidence. We hold that there was sufficient evidence to support the malicious-prosecution claims and that the damages awards were not excessive; however, we find the evidence insufficient to support the out-rage claim. Accordingly, we affirm in part and reverse and dismiss in part.
Huff and Ward were mechanics in Family Dollar's West Memphis Distribution Center. They were supervised by Dennis Stripling. In part, their duties were to conduct integrity inspections and to remove from service any trailers that were deemed not "road worthy" after the trailers failed the inspections.
According to Huff, starting in 2005 and ending sometime in 2006, he and Ward were given permission by Stripling to purchase and re-sell the trailers that had failed inspection. Stripling informed Family Dollar's corporate fleet-maintenance manager, Bennie Stinson, who approved the sales. When Huff or Ward would sell a trailer, they would give Stripling the amount he said was the price and they would keep the balance. Stripling was supposed to forward the proceeds to Family Dollar. Family Dollar denies that it ever authorized the sales.
When Family Dollar learned of the sales, it began an investigation. Huff and Ward, among others, were terminated from their employment. Family Dollar's investigative reports were given to the West Memphis Police Department, which then conducted its own investigation. At the request of the police, the investigator for Family Dollar signed the affidavits for arrest warrants for Huff, Ward, and Stripling. Charges were filed. Huff and Ward agreed to testify against Stripling. Stripling subsequently pled guilty to a Class A misdemeanor and made restitution. The prosecutor then nolle prossed the charges against appellees.
In April 2009, Huff and Ward filed suit against Family Dollar for malicious prosecution and outrage, contending Family Dollar prosecuted them when Family Dollar knew they were innocent, causing them to suffer mental anguish, humiliation, and emotional distress. They sought both compensatory and punitive damages. Family Dollar answered and counterclaimed for conversion of the trailers.
The case proceeded to a jury trial over four days in early February 2014. At the conclusion of Huff and Ward's case and again at the close of all the evidence, Family Dollar moved for directed verdicts on both causes of action, which the court denied.
Our standard of review of the denial of a motion for directed verdict is whether the jury's verdict is supported by substantial evidence. Crawford Cnty. v. Jones, 365 Ark. 585, 232 S.W.3d 433 (2006). Similarly, in reviewing the denial of a motion for JNOV, we will reverse only if there is no substantial evidence to support the jury's verdict, and the moving party is entitled to judgment as a matter of law. Id. Substantial evidence is that which goes beyond suspicion or conjecture and is sufficient to compel a conclusion one way or the other. Id. It is not our place to try issues of fact; rather, we simply review the record for substantial evidence to support the jury's verdict. Id. In determining whether there is substantial evidence, we view the evidence and all reasonable inferences arising therefrom in the light most favorable to the party on whose behalf judgment was entered. Id. A motion for directed verdict should be denied when there is a conflict in the evidence, or when the evidence is such that fair-minded people might reach different conclusions. See McMickle v. Griffin, 369 Ark. 318, 254 S.W.3d 729 (2007) (citing Wal-Mart Stores, Inc. v. Kelton, 305 Ark. 173, 806 S.W.2d 373 (1991)). The circuit court found, and we affirm that such was the case here.
Family Dollar first challenges the jury's verdicts on the malicious-prosecution claims. Our supreme court recently set forth the elements of a cause of action for malicious prosecution as follows:
McMullen v. McHughes Law Firm, 2015 Ark. 15, at 15-16, 454 S.W.3d 200, 210 (internal citations omitted).
The thrust of Family Dollar's argument is that probable cause conclusively existed because Tonya Alexander, sitting as a special judge, issued arrest warrants for Huff and Ward, and that it acted on the advice of the deputy prosecuting attorney, Lindsey Fairley.
The jury in this case was instructed on the advice-of-counsel defense. According to Huff and Ward, the jury might well have found that Family Dollar did not fully disclose to counsel all facts known to its investigator, in particular that Dan Gazaway, Family Dollar's investigator in this matter, believed that Huff and Ward were telling the truth when they told him that they had permission from Stripling and others to sell the trailers. We agree.
Jimmy Huff testified that he had previously bought surplus Family Dollar property by going to his supervisor at the time, Richard Morgan. Regarding the trailers in question in this lawsuit, he said that he spoke with his supervisor, Dennis Stripling, about purchasing some of the trailers that did not pass the integrity tests and that Stripling spoke with Mike Preston, Family Dollar's regional transportation manager in West Memphis, and Bennie Stinson, Family Dollar's corporate fleet-maintenance manager, to get approval. According to Huff, Stripling later told Huff he could buy trailers for $400. Huff and Ward purchased and then sold other trailers over a one-year period, turning the $400 cost of each trailer over to Stripling. Huff assumed that Stripling was forwarding the money to Family Dollar.
Bennie Stinson testified that, at the time, Family Dollar had no written policies or procedures in place for the disposition of property. Stinson stated that he advised Stripling about the process he used at Family Dollar's corporate office in North Carolina regarding disposal of Family Dollar's property, but left it up to Stripling and Preston to determine the process for disposing of property at the West Memphis Distribution Center. One of the purchasers of multiple trailers, James Kitchens, testified that he personally talked with Stinson, who advised him that the disposition of the trailers was up to Stripling.
Dan Gazaway testified that Preston told him that Stripling had authorization from Stinson to dispose of some trailers. He also said that Huff repeated his statement outlined above. Gazaway stated that Preston knew trailers were either being sold or given away, which is why Preston was fired. Gazaway stated he never told the prosecutors or the police that he believed Huff and Ward were being truthful or that they were acting pursuant to instructions from Stripling, Preston, or Stinson.
Lieutenant Troy Galtelli of the West Memphis Police stated that it would have been significant in his investigation to know that a management official allowed the trailers to be sold. He also did not recall Gazaway's telling him that Stripling set the prices for the trailers and that Huff and Ward paid that price before reselling the trailers. Galtelli said that, under those circumstances, he did not think that it would be theft, and he would not have filed the charges.
Tonya Alexander, the special judge who issued the warrants for Huff's and Ward's arrests, testified that she was not sure if she had been told that Huff and Ward sold the trailers with the permission of their supervisor, and that it would have been important to know this information. Alexander agreed that if Family Dollar had
Where testimony is in sharp conflict, it is the province of the jury, not the circuit court, to resolve such conflict. Kellerman, supra. In particular, when the evidence conflicts as to what a defendant told his attorney in a malicious-prosecution action, a jury question is presented on the advice-of-counsel defense. Id. This was the view taken by the circuit court in denying Family Dollar's motions for directed verdict. Viewing the testimony in the light most favorable to Huff and Ward, there is substantial evidence that Family Dollar did not make a full, fair, and truthful disclosure to Fairley, the prosecuting attorney. A jury may reject the advice-of-counsel defense if there is substantial evidence that the defendants either did not impartially state all the facts to counsel or did not honestly and in good faith act upon the advice given to them. Id.
This same evidence would also support the jury in finding that Family Dollar lacked probable cause to file criminal charges against Huff and Ward. Huff and Ward were charged with theft of property. A person commits theft of property if he or she knowingly takes or exercises unauthorized control over, or makes an unauthorized transfer of an interest in, the property of another person with the purpose of depriving the owner of the property. Ark. Code Ann. § 5-36-103(a)(1) (Repl. 2013). If the testimony from Huff and Ward that they had permission from Dennis Stripling to sell the trailers was believed, then they would not be guilty of making unauthorized transfers of Family Dollar property. Gazaway testified that he never told prosecutors that Huff and Ward were acting pursuant to Stripling's instruction or that Stripling's superior, Mike Preston — Family Dollar's regional transportation manager — signed asset-disposal forms indicating that some of the trailers had been disposed of.
Malice, the fourth element of a cause of action for malicious prosecution, can be inferred from the lack of probable case. Wal-Mart Stores, Inc. v. Williams, 71 Ark.App. 211, 29 S.W.3d 754 (2000). We hold that there was evidence upon which the jury could have found malice. Gazaway testified that he had been instructed by Charlie Gibson, the senior vice president of the supply chain, to prosecute Huff and Ward. There was also testimony from Raina Avalon, Family Dollar's vice president of transportation, that although Huff and Ward stated that they had permission from Dennis Stripling to sell the trailers, that information was not confirmed. This evidence, along with the allowable inference of malice, presented a question of fact, properly left for the jury. Gazaway testified that his superiors wanted Huff and Ward prosecuted. This is also the sort of "automatic" decision to prosecute that was condemned in Wal-Mart Stores, Inc. v. Yarbrough, 284 Ark. 345, 349, 681 S.W.2d 359, 362 (1984). See also Burkett v. Burkett, 95 Ark.App. 314, 236 S.W.3d 563 (2006).
We hold that the evidence was sufficient to support the claims for malicious prosecution and the circuit court properly allowed the matter to go to the jury.
This brings us to Family Dollar's argument that the evidence was insufficient as a matter of law to establish the cause of action for outrage. We agree. Arkansas courts have consistently taken a narrow view in recognizing claims for the
The supreme court's statement in Adams is appropriate in this case:
Adams, 315 Ark. at 306, 867 S.W.2d at 443-44. Applying this standard for the tort of outrage, we cannot say that Huff and Ward's evidence is sufficient to sustain their claims for outrage. Accordingly, we reverse and dismiss the claims for outrage.
Finally, Family Dollar argues that the damages awarded for malicious prosecution are excessive, unsupported by the evidence, and appear to have been given under the influence of passion or prejudice.
Allstate Ins. Co. v. Dodson, 2011 Ark. 19, at 14, 376 S.W.3d 414, 425 (citing Bank of Eureka Springs v. Evans, 353 Ark. 438, 455, 109 S.W.3d 672, 682 (2003)). The burden to be met under this standard of review in such a case is whether there is substantial evidence to support the verdict. Id.
The jury was instructed, without objection by Family Dollar, that if it found for Huff and Ward on the question
What was the evidence of damages? First, the only out-of-pocket expense was the $2,500 Huff and Ward each paid to attorney Chet Dunlap for representation in the criminal case. Second, both Huff and Ward were arrested and spent a short time in jail. They testified that they suffered from anxiety and sleepless nights. They further testified that they suffered damage to their reputations after being labeled as thieves. There was testimony that Huff became distant from his family, and his blood pressure rose. He also was embarrassed because he had involved his long-time friends. Huff also had to borrow money from friends and family to meet his living expenses after being unable to draw from his 401(k) account. According to Huff, these events caused him to drink heavily for a period. While Ward found other employment, Huff testified that he has not been able to do so because of the accusation by Family Dollar. He was making approximately $45,000 per year at the time he was fired. In light of the concurring and dissenting opinions authored by the minority in this case, it bears repeating that we, as an appellate court, do not weigh the evidence and supplant the role of the jury. E.g., Stewart Title Guar. Cox. v. Am. Abstract & Title Co., 363 Ark. 530, 215 S.W.3d 596 (2005). Whether each of us, had we been seated as a juror, would have found the facts as this jury did is not the question. Rather, we are to determine if the circuit judge was correct in his determination that there was substantial evidence to allow the jury to make the decision. Id.
Family Dollar further contends that the jury's damages award was made under the influence of passion or prejudice. We require more than the bald assertion that a verdict is the result of passion and prejudice to reverse. Davis v. Davis, 313 Ark. 549, 557, 856 S.W.2d 284, 288 (1993). Our colleagues in the concurring and dissenting opinions suggest that these gentlemen "hit the lottery." Such a statement is dismissive of the jury and the circuit judge who heard the testimony and observed the witnesses in this case. The cases are legion wherein we claim to give near total deference to the fact-finder's determination of the weight of the evidence and the credibility of the witnesses. We are at a loss as to why those same principles should not apply in this case. The court's conscience is never shocked when a jury returns a verdict for $0.00 in a case of liability. E.g., Wallis v. Keller, 2015 Ark.App. 343, 464 S.W.3d 128 (citing Fritz v. Baptist Mem'l Health Care Corp., 92 Ark.App. 181, 211 S.W.3d 593 (2005)). In reviewing the proof most favorably to Huff and Ward, as we are required to do, we cannot say that the verdict demonstrates passion or prejudice on the part of the jury or shocks the conscience of this court. Id.
Affirmed in part; reversed and dismissed in part.
Gladwin, C.J., and Harrison, Whiteaker, and Hixson, JJ., concur in part and dissent in part.
Brandon J. Harrison, Judge, concurring and dissenting.
I agree with all of my colleagues' decisions that the outrage claim and the related damages verdict and judgment must be reversed and dismissed. I also agree with the majority that substantial evidence supports the jury's verdict on the malicious-prosecution claim.
I respectfully dissent, however, on the amount of money the jury awarded on that claim. A $2.75 million aggregate award in favor of Jimmy Huff and Robert Ward is shockingly excessive and should be significantly reduced. The jury decided that these men were damaged by Family Dollar's actions. But even viewing the evidence in the light most favorable to Huff and Ward, the record buckles under the weight of the judgment.
Let's begin with the arrests. Chet Dunlap, Huff and Ward's criminal defense attorney, testified that he allowed Huff to go to the West Memphis Police Department to speak with Detective Galtelli on a Friday afternoon, believing he would not be arrested, because Dunlap did not believe Huff had done anything wrong. Huff testified that, after he was arrested around 4:30 p.m. that Friday afternoon, he sat in the back of a car, was transported to jail, fingerprinted, booked, and photographed. Attorney Dunlap said he was "shocked" when Huff was arrested and called a circuit judge he had known for a long time and asked the judge to set a bond. The circuit judge did so. As a result, Dunlap successfully prevented Huff from having to stay in jail over the weekend. Huff still said the experience made him feel "like a thief and a criminal." Ward was not quite as fortunate; he spent about an hour in jail after being arrested and held in the "holding tank" and was also fingerprinted and photographed. Ward said he felt "abused." Neither man had a prior criminal history.
Here is more about Ward and Huff as gleaned from the trial testimony.
Ward, 59, started with Family Dollar in 1998, as a Class C Mechanic. He worked second shift in the truck shop and repaired storage trailers. We have no information on the money he was making at Family Dollar when his employment was terminated. We have no information on any employment-related benefits he was receiving or may have been entitled to receive. We have no information about his work-performance history with Family Dollar and whether he could have reasonably expected to continue working for Family Dollar for any number of years to come. Ward did not mention the scarcity of jobs in the region where he lived. He did say that the turmoil "caused me a lot of sleepless nights and a lot of knots in my stomach. It's been a really bad few years."
Huff testified that he started with Family Dollar in September 1996 as a Class B Mechanic and began the maintenance shop/inspection process for the company. He also said that Family Dollar fired him right before Christmas, and his four-year-old daughter "wants everything at Walmart we look at, and I ain't got a job, couldn't draw unemployment, couldn't go to work anywhere `cause a felony was [pending]." And Huff explained that his mother mortgaged her house a second time and loaned him $10,000. Another friend, said Huff, gave him $10,000 and told Huff to pay him back whenever he could.
Huff's wife "went through a hard time," and he "drank quite a bit for a while." Mrs. Huff said that it was "awful" after her husband was arrested, that he grew distant, and that his blood pressure increased. She did not file a loss-of-consortium claim.
No one sought and received psychological counseling or any other treatment from a medical-care provider as far as the record reveals.
The circuit court instructed the jury on these two types of damages related to the malicious-prosecution claims: (1) mental anguish and (2) reasonable expenses for defense of their criminal prosecution. Damages for mental anguish are recoverable for malicious-prosecution claims. See Yam's Inc. v. Moore, 319 Ark. 111, 117, 890 S.W.2d 246, 249 (1994). The amount of damages associated with mental anguish, and other elements of damage, is usually a jury question; and we do not typically substitute our judgment for the jury's. See Wal-Mart Stores, Inc. v. Tucker, 353 Ark. 730, 742, 120 S.W.3d 61, 68 (2003).
Remittitur is an exception to the usual deference given to a jury's verdict, however, and Family Dollar has asked that we significantly reduce the judgment amount if not reverse it outright. A remittitur is appropriate when a jury returns a conscience-shocking verdict, or one that resulted from passion or prejudice. Advocat, Inc. v. Sauer, 353 Ark. 29, 43, 111 S.W.3d 346, 353 (2003); Ark. Code Ann. § 16-64-123 (Repl. 2009). When a remittitur is considered, the question to be answered is whether substantial evidence supports the jury's award. Id. The answer to this question turns on each case's facts. Wal-Mart Stores, Inc. v. Tucker, 353 Ark. 730, 742, 120 S.W.3d 61, 69 (2003) (deciding if a remittitur was proper on a case-by-case basis and reviewing the proof and all reasonable inferences in a light most favorable to the appellee). On appeal, when determining whether the amount was so great as to shock our judicial conscience, we may consider past and future medical expenses, permanent injury, loss of earning capacity, scars resulting
The amount of compensatory damages awarded for the malicious prosecution in this case — $2.75 million — is shocking. Huff and Ward were damaged. But the related evidence was limited to testimony describing Huff and Ward as distant, upset, and embarrassed by their arrests. Neither Huff nor Ward spent a night in jail. The felony theft charges were nolle prossed by the prosecutor — though I wholly grant that no one benefits from a felony charge hanging around his neck like an albatross, even if the charge is not fully pressed. The most physically tangible manifestation of the stress Huff and Ward experienced seemed to be a loss of sleep and Huff's increased use of alcohol. (But for how long Huff increased his drinking, by how much, and at what financial, personal, or familial cost is guesswork.) Huff's wife testified that his blood pressure increased given the bad experience — but no specific, adverse medical condition or personal-discomfort link was made. We are also left groping for evidence about what specific economic harm was done by the malicious prosecution for the same reason: no testimony (expert or otherwise) addressed the lost earnings, or the lost-earning potential, of Huff or Ward. The record is completely silent as to Ward's earnings. The only out-of-pocket expenses were that Huff and Ward incurred attorney's fees for having to defend the criminal charges ($5,000); and Huff received up to $20,000 in loans from his mother and a friend.
"A damages award is not a lottery ticket[.]" Vaccaro Lumber v. Fesperman, 100 Ark.App. 267, 267 S.W.3d 619 (2007). I would substantially reduce the judgment and bring it in line with the proof because, in my view, Huff and Ward hit the lottery.
Whiteaker, J., agrees.
Kenneth S. Hixson, Judge, concurring and dissenting.
Our court is in agreement that the jury's verdict on the tort of outrage must be reversed, but we are in marked disagreement about the cause of action for malicious prosecution and resulting damages. I believe that there was insufficient evidence presented to allow the claim for malicious prosecution to go to the jury, or the court should have granted the motion for judgment notwithstanding the verdict, such that our court must reverse and dismiss on malicious prosecution and the accompanying compensatory award.
Even when we view the evidence in favor of the appellees, which we must, here is the essential evidence reflected in the record:
The then-prosecutor agreed that probable cause existed to arrest Huff and Ward, even if some of the trailers were given away with Family Dollar's permission. The then-prosecutor also knew that Huff sold trailers with Stripling's permission.
We have held that two essential elements of the tort of malicious prosecution are lack of probable cause and malice. Cordes v. Outdoor Living Ctr., Inc., 301 Ark. 26, 781 S.W.2d 31 (1989). "The test for determining probable cause is an objective one based not on the accused's actual guilt, but upon the existence of facts or credible information that would induce a person of ordinary caution to believe the accused to be guilty." (Emphasis added.) Wal-Mart Stores, Inc. v. Yarbrough, 284 Ark. 345, 348, 681 S.W.2d 359 (1984). Furthermore, acting upon the advice of counsel is a defense to a charge of malicious prosecution. Kellerman v. Zeno, 64 Ark.App. 79, 983 S.W.2d 136 (1998). To avail itself of the defense, Family Dollar must have made a full, fair, and truthful disclosure of all facts known to it and acted in good faith on counsel's advice. Malvern Brick & Tile Co. v. Hill, 232 Ark. 1000, 342 S.W.2d 305 (1961). Family Dollar had the burden of proving this defense by a preponderance of the evidence. Eggleston v. Ellis, 291 Ark. 317, 724 S.W.2d 462 (1987). Family Dollar clearly carried that burden.
Giving of information, or even making an accusation of criminal misconduct, does not constitute procurement of the proceedings initiated by the prosecutor if it is left entirely to the discretion of the prosecutor whether to initiate proceedings. Restatement (Second) of Torts § 653, comment g (1977). The exercise of the prosecutor's discretion makes the initiation of the prosecution his own and protects from liability the person whose information or accusation has led the officer to initiate the proceedings. Id. A viable malicious prosecution case can be maintained when the information provided was known to be false, or if the desire of the reporting person to have the prosecution commenced, is the determining factor in the prosecutor's decision to prosecute. Id. Our standard of review of the denial of a motion for judgment notwithstanding the verdict is the same as that for a denial of a directed-verdict motion. Carter v. Cline, 2011 Ark. 474, 385 S.W.3d 745. Thus, a circuit court may enter a judgment notwithstanding the verdict only if there is no substantial evidence to support the verdict and the moving party is entitled to judgment as a matter of law. Ford Motor Co. v. Washington, 2013 Ark. 510, 17, 431 S.W.3d 210, 220.
Here, the record is absolutely void of any evidence of lack of probable cause.
I am authorized to state that Chief Judge Gladwin joins this dissent, with the exception that he does not join that part discussing remittitur in footnote 1.
Concurring in part; dissenting in part.