362 S.W.3d 21
Mo. Ct. App.2012Background
- J.M. Neil & Associates, Inc. (JMN) is a certified, woman-owned staffing company; ARW is a certified, service-disabled veteran-owned small business.
- In 2005, the parties formed a teaming agreement: ARW as prime on the GSA contract; JMN as subcontractor, with specified employee assignments and a non-compete protecting JMN's personnel.
- ARW was awarded the GSA contract; two JMN associates worked on it under the teaming agreement.
- In February 2009, ARW terminated the teaming agreement for alleged poor performance; Smith informed Haylock he could stay on the GSA contract only if employed by a different staffing company, listing four agencies including Nash Resources, Inc. (NRI).
- Nash Resources, owned by Smith’s mother, was one of the listed agencies; Haylock was hired by Nash on February 21, 2009 and began working for ARW on February 23, 2009 under NRI.
- JMN sued in February 2009; after trial in July 2010, the jury awarded compensatory damages on three counts and $170,000 punitive damages against ARW and NRI on the conspiracy count; the trial court later granted JNOV on punitive damages, and JMN appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether JMN presented a submissible case for punitive damages | JMN showed evil motive and reckless disregard | Respondents contend evidence insufficient to prove clear and convincing punitive standard | Yes; submissible case presented |
| Whether the trial court properly granted JNOV on punitive damages | De novo review supports punitive damages submission | JNOV proper because no clear and convincing evidence of malice | JNOV reversed; remand to reinstate verdict |
Key Cases Cited
- Koppe v. Campbell, 318 S.W.3d 233 (Mo.App. W.D.2010) (submissibility and JNOV standard for punitive damages)
- Horizon Mem'l Grp., L.L.C. v. Bailey, 280 S.W.3d 657 (Mo.App. W.D.2009) (clear and convincing standard; punitive damages submission)
- Drury v. Mo. Youth Soccer Ass'n, 259 S.W.3d 558 (Mo.App. E.D.2008) (proof of culpable mental state; evil motive may be inferred)
- Claus v. Intrigue Hotels, LLC, 328 S.W.3d 777 (Mo.App. W.D.2010) (intentional wrongful act; bad motive when act wrongfully known)
- Williams v. Trans States Airlines, Inc., 281 S.W.3d 854 (Mo.App. E.D.2009) (willful misconduct and bad motive factors in punitive damages)
- Laws v. St. Luke's Hosp., 218 S.W.3d 461 (Mo.App. W.D.2007) (presumption favoring reversal of JNOV in substantial-evidence review)
- Livingston v. Baxter Health Care Corp., 313 S.W.3d 717 (Mo.App. W.D.2010) (substantial evidence standard for punitive damages review)