D'Amico v. Structural I Co.
229 Ariz. 262
| Ariz. Ct. App. | 2012Background
- Structural I Company is a family-owned framing business; it hired Irene D'Amico as CEO under a July 2003 contract for five years, with termination only for cause.
- Disputes over 2004-2005 bonuses and other issues led to D'Amico's April 2006 termination.
- D'Amico sued Structural I for breach of contract; Structural I counterclaimed for fiduciary duty, fraud, unjust enrichment, fraudulent concealment, and replevin.
- A 13-day trial resulted in six special verdicts: breach for termination without cause, underpayment of 2004-2005 bonuses, substantial unpaid wages, and mixed findings on other claims; D'Amico prevailed on several claims while Structural I prevailed on fiduciary-duty breach against D'Amico.
- Judge entered judgment in D'Amico's favor for roughly $910,616 after offsets and interest; both parties appealed.
- The Arizona Court of Appeals addressed two issues on appeal: (1) standing to challenge allegedly privileged testimony and (2) whether the court abused its discretion in denying treble damages under § 23-355(A).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Privilege standing for appeal | Structural I argues the court erred in admitting privileged Cottor testimony. | D'Amico contends the privilege belongs to the McLeods and is not challengeable by Structural I on appeal. | Privilege owner must appeal; Structural I lacked standing; admission upheld. |
| Treble damages discretion under § 23-355(A) | D'Amico argues treble damages should be awarded for bad-faith wage withholding. | Structural I asserts the court may deny treble damages in its discretion, even absent good-faith dispute. | Court vacated denial of treble damages and remanded to exercise discretion; treble damages may be awarded or denied. |
Key Cases Cited
- Bain v. Superior Court, 148 Ariz. 331 (Ariz. 1986) (psychologist/patient privilege; client holds privilege; stand[ing] to appeal)
- State v. Miles, 211 Ariz. 475 (Ariz. App. 2005) (de novo review of privilege existence and standing)
- State v. Griswold, 105 Ariz. 1 (Ariz. 1969) (privilege is personal to the client)
- McCormick on Evidence, 6th ed. (authoritative treatise) (not a reported case) (privilege review limited to client-owner on appeal)
- Crum v. Maricopa County, 190 Ariz. 512 (Ariz. App. 1997) (treble damages discretionary under § 23-355(A))
- Sanborn v. Brooker & Wake Prop. Mgmt., Inc., 178 Ariz. 425 (Ariz. App. 1994) (treble damages; discretion in awarding under § 23-355(A))
- Apache East, Inc. v. Wiegand, 119 Ariz. 308 (Ariz. App. 1978) (good-faith wage dispute prevents automatic treble damages)
- Patton v. Mohave County, 154 Ariz. 168 (Ariz. App. 1987) (treble damages context in wage-withholding cases)