MEMORANDUM
This wrоngful discharge diversity action arises from the termination of Plaintiff Michael Paolella’s employment with Defendant Browning-Ferris, Inc. At trial, the plaintiff argued that the defendant fired him in retaliation for his demands that it cease its deceptive billing practices. The jury found for Plaintiff, and awarded him $ 732,000 in damages. The defendant now renews its Motion
In its Renewed Motion for Judgment as a Matter of Law, Defendant argues that Plaintiff failed to prove that it committed an illegal act, and that he failed to show a causal link between his protest and his termination. The defendant also contends that Plaintiff may not benefit from the public policy exception to the employment-at-will doctrine because he participated in the alleged illegаl activity. In its Motion for a New Trial, Defendant maintains that this court improperly instructed the jury on reliance, and thus impermissibly shifted the burden of proof. It also argues that Plaintiffs recovery is barred by the efficient breach doctrine, and that the jury’s verdict as to both liability and damages is against the weight of the evidence. Finally, in its Motion to Correct an Omission in Civil Judgment, Defendant asserts that the court should amend its judgment to reflect the front pay and back pay figures found by the jury. Plaintiff contests each of these argumеnts. Upon the following reasoning, I shall deny the defendant’s Renewed Motion for Judgment as a Matter of Law. I also shall deny the parties’ motions for a new trial, provided that Plaintiff accepts a remittitur of damages to $ 600,000. I shall grant Defendant’s Motion to Correct a Clerical Omission.
I. Background
Defendant Browning-Ferris, Inc. (“BFI”) is a Delaware corporation in the trash-hauling and recycling business. In November, 1989, Plaintiff Michael Paolella signed an employment agreement with BFI, and began working as a sales supervisor in King of Prussia, Pеnnsylvania. BFI later promoted Mr. Paolella to sales manager and transferred him to Delaware. In 1992, BFI switched invoicing systems. Under this new system, BFI told its customers that it was simply passing along its costs, while in fact it was charging substantially more, all of which increase went to its own profits. The testimony revealed that BFI drafted invoices in which it exaggerated the amount customers paid for landfill costs by fabricating the weight of their trash. Plaintiff testified that he believed this system to be unethical and illegal, and that he prally expressed his concerns to BFI’s Delaware district manager, Ronald Hanley, and to the head of the Atlantic region, Mr. Snyder. BFI demoted Mr. Paolella in the fall of 1992, and fired him on January 17, 1994. BFI maintained that it fired Mr. Paolella because of his poor performance. Mr. Paolella countered that he was fired for making repeated protests about BFI’s billing practices.
After a four-day trial, the jury found for Plaintiff, and awarded him $ 732,000 in damages. The court then requested that the jury specify the amount of back pay аnd front pay included in that award. The jury informed the court that it was awarding Plaintiff $ 135,000 in back pay, and $ 597,000 in front pay. Now before the court are Defendant’s Renewed Motion for Judgment as a Matter of Law, or, in the alternative, Motion for a New Trial, Plaintiffs Motion for a New Trial, and Defendant’s Motion to Correct an Omission in Civil Judgment. Delaware law governs this dispute. 1
II. Standard of Review
Under Fed.R.Civ.P. 50(b), a court should grant judgment as a matter of law “only if, viewing the evidence in the light most favorable to the nonmovant and giving it the advantage of every fair and reasonable inference,” insufficient evidence exists “from which a jury reasonably could find liability.”
The Federal Rules permit district courts to order new trials “for any of the reasons for which new trials have heretofore been granted in actions аt law in the Courts of the United States.” Fed.R.Civ.P. 59(a). These reasons include prejudicial errors of law and verdicts against the weight of the evidence.
See Maylie v. National R.R. Passenger Corp.,
III. Discussion
A. Renewed Motion for Judgment as a Matter of Law
Defendant’s Renewed Motion for Judgment as a Matter of a Law raises several whistleblower issues. First, if an employee complains about illegal conduct, as opposed to mere questionable conduct, is he protected by Delaware’s whistleblower exception to the employment-at-will doctrine? I conclude that he is. Second, dоes that protection extend to an employee even if his protests are only within the company? Under the circumstances of this ease, I conclude that Plaintiff is protected. Third, is a plaintiff totally barred from recovery if he himself participated in his employer’s illegal acts? Here, I conclude it is not a total bar, but that it does call for some reduction in Plaintiffs damage award. Fourth, and finally, did too much time elapse between Plaintiffs internal complaints and his termination to permit an inference of causation? I conclude that this was a jury question, on which they were fully charged, and which was fully argued, and that there was sufficient evidence of record to support their implicit finding of causation.
1. Criminal Activity
A preliminary issue is whether Plaintiff produced sufficient evidence to permit a jury to find reasonably that BFI had engaged in criminal activity. Under Delaware law,
A person commits theft when, with the intent ... [to deprive the owner of the property or appropriate it], he obtains property of another person by intentionally creating or reinforcing a false impression as to a present or past fact, or by preventing the other person from acquiring information which would adversely affect his judgment of a transaction.
11 DeLC. § 841. After receiving a charge with this statutory language, the jury found that BFI had obtained greater fees, the property of others, by creating a false impression that the rate increase reflected higher landfill costs alone. N.T. of Oct. 3, 1996, at 101. That is a crime. As such, it is explicit; it is recognizable.
There was sufficient evidence for a rational jury to conclude that BFI had engaged in this criminal activity. Mr. Paolella testified that Mr. Hanley told the sales force that he intended to use the waste authority’s 25% rate increase to improve profits. N.T. of Sept. 30, 1996, at 64-70. Mr. Hanley also personally instructed Mr. Paolella to lie to a customer, Edward B. DeSeta, and all other customers about the average weight used to calculate their bills. N.T. of Sеpt. 30, 1996, at 88. Mr. Paolella’s supervisor, Stephen Sanko, told him to fabricate weight tickets for another customer, Dempsey’s Diner. N.T. of Oct. 1, 1996, at 20. Geoffrey Sehenck, a former BFI employee, corrobo
2. Protection of Internal Whistleblowers
I hаve found no Delaware court case addressing the question of whether an employee, terminated for internally blowing the whistle on criminal conduct, may benefit from the public-policy exception to the doctrine of employment-at-will. On an issue of first impression, a court sitting in diversity “must forecast the position the supreme court of the forum would take.”
See Clark v. Modern Group, Ltd.,
The Supreme Court of Delaware has held that every employment contract contains an implied, or socially imposed, covenant of good faith and fair dealing.
Merrill v. CrothallAmerican, Inc.,
3. Participation in the Criminal Activity
Mr. Paolella did participate in the criminal activity, and that is not to be condoned. He did, however, help to protect the public interest by complaining internally, and he at least tried to bring a halt to the activity by telling the F.B.I. To preclude even a penny of recovery to a whistleblower plaintiff because that plaintiff had some slight participation in that wrongdoing would be a disincentive to rooting out corruption, and would mute more than a few whistles. Such a rule seems unfairly harsh.
In the real world, it is a fact that not every observer of less-than-licit conduct is a third party, coyly staying an innocent and proper distance away from the misdeeds. The
In the context of negligence, the trend of law nationally, and in Delaware as well, has been to abolish the rule which totally bars recovery to a plaintiff should that plaintiff be found, even in the slightest degree, contributorily negligent. 10 Del.C. § 8132. The modern trend is to attenuate, rather than to obliterate, recovery. By analogy, that same principle should apply to this case, and I predict that Delaware would not totally preclude recovery here.
On the other hand, by analogy to the now well-established doctrine of comparative fault, I do believe that there should be some reduction in the plaintiffs recovery. To let the verdict stand, without any penalty for Mr. Paolella’s own wrongdoing, would seem unjustly generous. His argument, that he went along with the scheme only out of economic duress, simply will not wash. That one needs the money, that one will suffer economic hardship if one does not play along with a scheme to skim from one’s customers, has never been a defense to fraud. But to utterly nullify his award, to penalize him for his participatory wrongdoing, would be unjustly harsh. I thus shall let him keep his verdict, but with some attrition, with remittitur.
Whenever a judge assesses the amount by which a verdict is to be reduced, to quantify that portion of the verdict which “shocks the conscience,” the task is a tad daunting. In sizing up — or down — damages, one may not, of cоurse, speculate, indulge in arbitrary' guesswork. Mathematically precise calipers are not available. One must use as much definiteness and accuracy as the 'circumstances permit. At bar, the plaintiff was not the instigator of the plan to cheat BFI’s customers. He was not the leader, but a follower. He got caught up in it because he happened to occupy a position on the defendant’s staff where it was his lot to do some of the wrongdoing, or else lose his job. It seems that, in the grand scheme of things, he was but one. small cog in a rather large wheel. Viewing all of the circumstances, I have concluded that a reduction of $ 132,000 is appropriate. For Mr. Paolella to receive more than $ 600,000, under the circumstances just recited, would shock the judicial conscience.
4. Causation
BFI also asserts that too much time elapsed between Mr. Paolella’s objections to the billing policy and his termination to permit an inference of causation. Although Mr. Paolеlla’s oral protests occurred in 1992, the final event of record before Plaintiffs termination on January 17, 1994 is a letter dated December 30, 1993. This letter’s tone is brusque, sarcastic, and hostile. Virtually all of it is addressed to Plaintiffs plaints as to his commissions’ being withheld and his responses to accusations of poor job performance and poor attitude. It concludes with a request to implement the following program:
1. Immediately cease all illegal activities
2. Immediately cease all discrimination
3. Refund all monies due for earned commissions, etc.
4. Adopt an overall attitude change
The jury had this exhibit to consider, with all its ramifications. Apparently, the jury attached significаnt weight to the first entry, “Immediately cease all illegal activities,” particularly in light of Plaintiffs testimony that he was referring to BFI’s billing policy. N.T. of Oct. 1, 1996, at 37. It appears that the jury found Plaintiffs forced separation from BFI, coming just three weeks later, to have some causal correlation with this language. All relevant evidence on the question of causation was before the jury. Given the evidence, and the láw, I would be overreaching to say that, in achieving its verdict, the jury itself had overreached.
B. Motion for a New Trial
In its Motion for a New Trial, BFI argues that I improperly instructed the jury on reliance; that is, that the charge impermissibly allowed the jury to infer that BFI’s customers had relied on its misrepreséntations, even
It also maintains that, under the efficient breach doctrine, a breach of contract is not a crime.
See Pressman,
1. Jury Charge
In charging the jury, BFI argues that the court somehow shifted the burden of proof when I discussed the meaning of consent and plaintiff’s allegation that something on the wrong side of the law was occurring. I did indeed set forth plaintiffs theory of the case, but that was immediately followed with a statement of defendant’s theory of the case. The court expressly took no position as to which side should prevail. N.T. of October 3, 1996, at 96, 102, 104, 108-09, 120.
The charge did not shift the burden of proof to BFI to disprove reliance by the customers. It merely instructed the jury that they had the right to infer such reliance, if there were sufficient circumstances to permit that inference to be drawn. In fact, an inference is simply a “logical tool” which shifts neither the burden of persuasion nor the burden of proof because “the trier of fact can reject the inference in whole or in part.”
Commonwealth v. Shaffer,
2. Efficient Breach
The doctrine of efficient breach says that the law should not deter an otherwise socially beneficial, or “efficient,” breach of contract by forcing the promisor to compensate the promisee for more than the promisee’s actual losses.
See, e.g., Patton v. Mid-Continent Systems, Inc.,
3. Liability Evidence
BFI also maintains that the jury’s verdict on liability ran contrary to the weight of the evidence. As is so often seen in employment cases, BFI presented a good deal of evidence to the effect that Mr. Paolella was a worthy candidate for being sacked— for reasons having nothing to do with his blowing of whistles. BFI presented evidence that Plaintiff was a whiner with a bad attitude, that he did not get along well with others, that he was always grumbling about getting more аnd more commissions, for example. Mr. Paolella, on the other hand, presented evidence of BFI’s criminal conduct and testified that he called BFI on its illegalities. Further, he produced a letter sent to them just three weeks before his termination, reiterating his concerns about BFI’s illegal activity. Although the letter discussed far more than illegal activity, focusing as it did on Mr. Paolella’s concern that his commissions were not sufficiently hefty, the entire letter was before the jury, was fully argued to the jury, and the jury reached their decision. For this court to intrude upon their credibility findings at this juncture, when those findings are supported by evidence, would be to .trespass into their exclusive domain.
4.Damage Evidence
The jury returned a verdict of $ 732,000. They reached this verdict after hearing testimony that Mr. Paolella had earned approximately $ 50,000 annually at BFI, had earned only $ 21,000 since his termination, and that if he had worked at BFI until age sixty-five, he would have earned income for another fourteen years. In summation, Plaintiffs counsel argued for an award of $ 109,000 in back pay, $ 490,000 in front pay, and an unspecified sum for cost-of-living increases, medical benefits, and pension benefits.
I do agree, as discussed above, that the verdict is too high in light of Mr. Paolella’s participation in what this jury found to be a nefarious scheme. Thus, I have retrenched the award to $ 600,000. However, I cannot say that the record reveals evidence of passion or prejudice.
See Dunn v. HOVIC, 1
F.3d 1371, 1383 (3d Cir.)
(en
banc) (finding that size of verdict alone, if supported by evidence, cannot show prejudice and passion), ce
rt. denied,
C. Motion to Correct Clerical Omission
BFI wishes this court to include in the civil judgment the jury’s specific findings of front and back pay. Mr. Paolella opposes this motion, arguing that the court should not have given the jury an additional interrogatory after it had returned with its verdict. He has cited no law to support his position. In fact, the request for additional interrogatories does have precedent.
See Bolden v. Southeastern Pa. Transp. Auth.,
IY. Conclusion
In sum, I shall deny BFI’s Renewed Motion for Judgment as a Matter of Law and Motion for a New Trial. I condition the denial of a new trial on the plaintiffs agreement to take a remittitur. I shall deny as moot Plaintiffs conditional Motion for a Nеw Trial on damages.
An order follows.
ORDER
AND NOW, this 3rd day of July, 1997, for the reasons described in the accompanying memorandum:
1. The defendant’s Renewed Motion for Judgment as a Matter of Law and alternative Motion for a New Trial are DENIED. I condition the denial of the new trial motion on the plaintiffs agreement to accept a remittitur of damages to $600,000.
2. The defendant’s Motion to Correct a Clerical Omission in Civil Judgment is GRANTED. The second paragraph of the Civil Judgment of October 3,1996, is AMENDED to read:
“IT IS ORDERED that judgment be and the same is hereby entеred in favor of the plaintiff, Michael Paolella, and against the defendant, Browning-Ferris, Inc., in the amount of $732,000, consisting of $135,000 in back pay and $597,000 in front pay.”
3. The plaintiffs Motion for a New Trial is DENIED as moot.
Notes
. Although Mr. Paolella and BFI originally entered into a written agreement which included a Pennsylvania choice-of-law clause, BFI later transferred him to Delaware, where, with no written contract, he assumed a new position. He then performed work in Delaware for BFI’s Delaware division. The conduct underlying this controversy took place in Delawаre. Thus, Delaware law controls this case. See
Klaxon Co. v. Stentor Elec. Mfg. Co.,
.
See, e.g., Smith v. Mitre Corp.,
. In the criminal context, if an observer sees some kindly gentleman's pocket being picked, instantly notifies the police, and thе fleeing pickpocket is arrested, then, at trial, the person whose wallet was filched need not testify that he did not consent to its appropriation. That inference is self-evident.
