DRUG EMPORIUM, INC. v. PEAKS et al.
A97A0710
Court of Appeals of Georgia
JULY 3, 1997
227 Ga. App. 121 | 488 SE2d 500
just as well been authorized by the record to reach the opposite result. However, because there is evidence to support the trial court‘s finding of fact that the prosecutor lacked instigative intent, Haralson‘s plea in bar based upon double jeopardy grounds was properly denied. See generally Sanders v. State, 197 Ga. App. 867 (399 SE2d 734) (1990).
2. Haralson argues the trial court erred in failing to articulate the standard it used in determining there was no prosecutorial misconduct barring retrial. In the written order, the trial court denied the plea in bar “based upon the Court‘s finding that the State did not deliberately engage in any misconduct with the intent of securing a mistrial. Reed v. State, [Cit.]” As discussed above, in Reed, supra, this Court specifically set out the applicable double jeopardy standard as being the intent of the prosecutor in the misconduct, with intent being a fact question. Thus, the trial court did indicate the standard it applied in reaching its decision. Although Haralson complains that the trial court gave no indication as to how it evaluated the prosecutor‘s intent, he cites no authority requiring that the court include such information in the order. In any event, the court specifically stated that it considered the totality of circumstances surrounding the trial in reaching its decision. This enumeration is without merit.
Judgment affirmed. Pope, P. J., and Blackburn, J., concur.
DECIDED JULY 3, 1997.
Viveca B. Famber, for appellant.
Lewis R. Slaton, District Attorney, Carla E. Young, Kirby Clements, Jr., Assistant District Attorneys, for appellee.
After appellees Joann Peaks and Eric Jackson filed their complaint for false imprisonment, false arrest, slander, intentional infliction of emotional distress, loss of consortium, and bad faith against Drug Emporium, Inc. and Super Discount Markets d/b/a Cub Foods and both defendants were served with the summons and complaint, appellant Drug Emporium did not file a timely answer. Defendant Super Discount Markets filed its answer, but appellees dismissed the complaint against Super Discount Markets. On December 29, 1995, default judgment was entered against appellant.
Appellees pled in some 46 paragraphs the averred facts that set forth two theories of recovery that were ultimately presented to the jury: (1) false imprisonment; and (2) false arrest. Such averments set forth that Mary Wilson attempted to pass a forged check with appellant but that it was detected as being forged; Wilson disappeared from the store, and appellant‘s employees began a search including going next door to Cub Foods where they incorrectly identified Peaks, had the Atlanta Police Department called, had Cub Foods security detain Peaks and her husband, had them taken to appellant‘s store by the police, had them identified incorrectly by its store employees, and caused Peaks to be arrested for forgery which caused her to
The complaint also averred that appellant‘s employees did not merely report the felony but searched the premises of Cub Foods, twice falsely identified Peaks as the perpetrator, caused others to detain not only Peaks but also her husband, Jackson, and then had them taken to the manager‘s office of appellant where they were detained while a second identification was made and a discussion took place about the arrest of Peaks. The complaint alleged that appellant “acted in bad faith, ha[s] been stubbornly litigious, and/or ha[s] caused plaintiffs unnecessary trouble and expense.” The complaint prayed “that plaintiff Joann Peaks be awarded punitive damages as a result of defendant Super Discount Market, Inc.‘s wilful or grossly negligent conduct, which indicated a wanton disregard for the rights of plaintiff, in an amount not less than $500,000; that plaintiff Eric Jackson be awarded punitive damages as a result of defendant Super Discount Market, Inc.‘s wilful or grossly negligent conduct, which indicated a wanton disregard for the rights of plaintiff, in an amount not less than $250,000; that plaintiff Joann Peaks be awarded punitive damages as a result of defendant Drug Emporium, Inc.‘s wilful or
The complaint alleged inter alia that the arrest of the plaintiffs was instigated and effectuated at the direction of employees of Drug Emporium, Inc. The body of the complaint, however, does not aver that the facts averred constitute aggravated circumstances authorizing the imposition of punitive damages under
On January 10, 1996, appellant filed its answer and moved to open the default. Attached to the motion to open default was the affidavit of Monique Jobs. The affidavit stated that she was the employee of C T Corporation Systems (“CT“) whose job it was to receive service; that CT was the agent for service of appellant; that service was made on September 5, 1995; that she had the complaint and summons delivered by Federal Express to appellant at 155 Hidden Ravine Drive, Powell, Ohio 43065; that a receipt from appellant was returned to CT on September 7, 1995; and that CT did not notify local counsel for appellant or appellant‘s insurance carrier. The affidavit of Donna Talley, assistant to the vice-president of appellant, stated that the complaint was received from CT; that it was facsimiled to Daniel James Insurance Agency, Inc., Toledo, Ohio, general agent for its liability carrier General Insurance; that CT forwarded various other pleadings over the next several months; that on January 3, 1996, a default judgment was received; and that until the default judgment was received, it did not know that no answer had been filed. The affidavit of Patricia K. Page, senior claims representative for Daniel James Insurance Agency, Inc., indicated that she received the facsimile but she does not have any transmission report to the Atlanta office of General Insurance. The affidavit of Neita Conley, claims supervisor for General Insurance, states that it never received notice of the suit from its agent.
The trial court heard the motion to open default on February 29, 1996. On June 11, 1996, the motion to open default was denied.
The suit came to jury trial on the issue of damages on June 11, 1996; a verdict was returned on June 14, 1996; and a judgment was entered on July 2, 1996, in the amount of $4,000 for necessary expenses, $82,000 for pain and suffering, $7,500 for loss of consortium, and $150,000 for punitive damages.
Although appellant filed its motion for new trial after oral argument on the motion, the trial court denied appellant‘s new trial motion. Thereafter, appellant timely filed its notice of appeal. Held:
1. Appellant‘s first enumeration of error is that the trial court erred in denying appellant‘s motion to open default.
Appellant admitted receipt of the summons and complaint on September 5, 1995. Appellant then waited 117 days until after a default judgment was entered against it, before filing its motion to open the default under
Where a defendant has been properly served and relies upon the insurer, the insurance agent, or counsel to file an answer timely, the failure of the defendant‘s agent, counsel, or insurer is imputable to the defendant in determining the presence or absence of excusable neglect. See Pulliam v. Nichols, 202 Ga. App. 95 (413 SE2d 215); U. S. Xpress v. W. Timothy Askew & Co., 194 Ga. App. 730 (391 SE2d 707). Excusable neglect means a reasonable excuse or justification for fail- ure to answer timely; it is “that neglect which might have been the act of a reasonably prudent person under the same circumstances.” (Citations omitted.) Ezzard v. Morgan, 118 Ga. App. 50, 53 (3) (162 SE2d 793); see Security Mgmt. Co. v. Keasler, 131 Ga. App. 230 (205 SE2d 515).
The failure of the insurance agent to deliver the summons and complaint to the insurer and the failure of the defendant to
The affidavit of the claims agent stated conclusions, not facts, upon which the trial judge could exercise sound discretion; the affidavit failed to set forth a “good and meritorious defense.” Coleman v. Dairyland Ins. Co., 130 Ga. App. 228, 229 (202 SE2d 698); see also Town of Thunderbolt v. River Crossing Apts., Ltd., 189 Ga. App. 607 (377 SE2d 12). Where the conditions precedent to the opening of default have not been met, the trial court does not abuse its discretion in denying a motion to open the default. See Taurus Productions v. Maryland Sound Indus., 155 Ga. App. 147 (270 SE2d 337); B-X Corp. v. Fulton Plumbing Co., 140 Ga. App. 131 (230 SE2d 331); Ga. Hwy. Express Co. v. Do-All Chem. Co., 118 Ga. App. 736 (165 SE2d 429).
The role of the appellate court in reviewing a grant or denial of a motion to open default is the determination of whether all the conditions have been met and, if so, whether the trial court abused its discretion under the facts and circumstances. Majestic Homes v. Sierra Dev. Corp., 211 Ga. App. 223 (438 SE2d 686). We find that the trial court did not abuse its discretion in denying the motion to open the default judgment in the case sub judice.
2. Although the trial court did not abuse its discretion by denying Drug Emporium‘s motion to open the default, this case is so procedurally and substantively defective that the judgment of the trial court awarding punitive damages cannot be affirmed. We cannot affirm an award of punitive damages in which the trial court declined to follow the procedures and standards now required by
(a) Prejudicial error occurred in this case by the giving of an outdated charge on punitive damages consistent with the provisions of
Appellant expressly objected to the trial court‘s charge on punitive damages on the ground that the punitive damages statute had been changed. Appellant‘s attorney specifically referred to the new statute,
However, pretermitting whether appellant adequately preserved this question on appeal by taking a timely, adequate exception to the trial court‘s charge of the old statute rather than the new statute and by sufficiently arguing this particular issue in its appellate brief, is the issue whether this was
In Foskey v. Foskey, 257 Ga. 736, 737 (2) (363 SE2d 547), our Supreme Court listed four types of erroneous jury charges as to which reversal will occur though no exception thereto was taken. Among those erroneous charges are those which are of a kind likely to influence a jury either to find against a defendant or to return a larger verdict than it might have otherwise done and those which are blatantly apparent and prejudicial to the extent the erroneous charge raises the question of whether the losing party has to some extent at least been deprived of a fair trial because of it. The erroneous charge here at issue was of a kind likely to influence a jury to find an award in favor of plaintiffs merely to compensate for their wounded feelings and also is so blatantly in error as to raise the question whether, as to at least the award of punitive damages, appellant was deprived of a fair trial because of the erroneous charge. Thus, on either of these two Foskey grounds, the charge here at issue constituted plain error within the meaning of Lynd, supra, and the error is preserved for appellant‘s consideration and correction.
The correct legal basis (as distinguished from the correct legal standard — an issue discussed in subsequent subdivisions in this opinion), which would support an award of punitive damages by the jury, was a substantial issue in these proceedings. It is beyond dispute that “‘the trial court has a duty, even in the absence of a request, to charge the jury the law as to every substantial and vital issue in the case. . . .’ [Cit.]” Agnew v. State, 267 Ga. 589, 591 (2) (481 SE2d 516). Notwithstanding speculation unsupported by the record regarding the effect of this error, it cannot be said this critical charging error was harmless, as the erroneous charge (purporting to address the proper legal basis for an award of punitive damages) erroneously allowed the jury to award punitive damages merely for the wounded feelings of the plaintiffs. It also did not address the correct legal basis supporting an award and inform them that punitive damages no longer could be awarded as compensation.
(b) Secondly, although not enumerated as error or argued in Drug Emporium‘s appellate brief, appellee Jackson is not entitled to punitive damages because the complaint‘s prayer for relief contains no specific prayer for punitive damages (
(c) In asserting that prejudicial error did not occur regarding the award of punitive damages, appellees rely substantially on the precedent of this Court in Hill v. Johnson, 210 Ga. App. 824 (437 SE2d 801). However, Hill is distinguishable. Of particular significance is that in Hill, unlike the case before us, Johnson included in his complaint a separate count for punitive damages expressly averring that “‘such actions merit the award of punitive damages to plaintiff under
In this case, because no evidence on liability for punitive damages was presented at the hearing, appellee Peaks’ entitlement to punitive damages depends solely upon the allegations in her complaint. As the complaint averred no viable claim for punitive dam- ages, the default alone was not sufficient to authorize an award of punitive damages.
“A judgment by default properly entered against parties sui juris operates as an admission by the defendant of the truth of the definite and certain allegations and the fair inferences and conclusions of fact to be drawn from the allegations of the declaration. Conclusions of law[ ] and facts not well pleaded and forced inferences are not admitted by a default judgment.” (Citations and punctuation omitted.) Stroud v. Elias, 247 Ga. 191, 193 (1) (275 SE2d 46). Although appellees’ prayer for relief requested the award of punitive damages, the prayer is not an allegation in the complaint which requires an answer (
In the case at bar there exists no separate count in the complaint for punitive damages, and particularly, there exists no averment that an award of punitive damages was merited under
(d) Although the complaint contained allegations that Drug Emporium caused appellees’ false arrest, false imprisonment, slander, and intentional infliction of emotional distress, this case was submitted to the jury only on appellees’ claims of false arrest and false imprisonment. (The record does not reveal how or why the other allegations against Drug Emporium were removed from the jury‘s consideration.) Therefore, it is wrong to conclude that punitive damages were authorized on one basis and then decide the amount of punitive damages to be awarded on another basis. This is particularly true when the allegations submitted to the jury regarding false imprisonment and false arrest do not allege facts sufficient to state a claim authorizing the award of punitive damages based only upon Drug Emporium‘s default.
The complaint, which did not accompany the jury to the deliberations room, merely averred allegations of false arrest and false imprisonment, torts which in themselves have no element of malice. See Williams v. Smith, 179 Ga. App. 712, 713-714 (348 SE2d 50): The only essential elements in an action to recover damages for illegal arrest or false imprisonment are the arrest or detention and the unlawfulness thereof. Malice and lack of probable cause need not be shown. Adams & Adams, Ga. Law of Torts (1996 ed.) § 29-4, False Imprisonment & False Arrest, p. 498: “Some cases have confused the tort of false arrest with that of malicious arrest, but malicious arrest involves the initiation of criminal proceedings.” Compare Adams & Adams, supra at § 29-5, Malicious Prosecution & Malicious Arrest, pp. 503-504. As no averment asserts that Drug Emporium‘s employees acted maliciously, the complaint in this case did not allege counts of malicious arrest or malicious prosecution. Further, the trial court clearly interpreted the allegations as constituting false arrest and not malicious arrest because the trial court advised the jury that false arrest and false imprisonment were used interchangeably in the charge.
Hence, the complaint does not authorize an award of punitive damages because there is no specific allegation that Drug Emporium‘s actions showed wilful misconduct, malice, fraud, wantonness, oppression, or that entire want of care which would raise the presumption of conscious indifference to consequences. See
A default judgment only “operates as an admission, by the defendant of the truth of the definite and certain allegations and the fair inferences and conclusions of fact to be drawn from the allegations.” (Citations and punctuation omitted.) Id. at 193 (1). Consequently, even excluding the fact that the trial court submitted the issue of damages solely as to appellees’ claims of false arrest and false imprisonment and appellee Jackson‘s claim of loss of consortium, the default still does not support the award of punitive damages to the appellees. Notwithstanding that Drug Emporium‘s default admitted each and every material allegation of the complaint except the amount of damages suffered by Peaks (Whitby v. Maloy, 150 Ga. App. 575 (1) (258 SE2d 181)), these admissions were not sufficient to authorize a charge on punitive damages because they contained no allegations concerning punitive damages within the meaning of Stroud, supra.
3. Further, the statement in the prayer that appellee Peaks be awarded punitive damages because of Drug Emporium‘s “wilful or grossly negligent conduct, which indicated a wanton disregard for the rights of plaintiff” is no substitute for an allegation in the complaint seeking punitive damages. Even though “[m]alice, intent, knowledge, and other condition of mind of a person may be averred generally” (
In another context, to state specifically special damages means that they must be pleaded with particularity. Signal Oil & Gas Co. v. Conway, 126 Ga. App. 711, 717 (3) (191 SE2d 624), rev‘d on other grounds, 229 Ga. 849 (194 SE2d 909). The same rule applies when praying for punitive damages. Therefore, in this case, the default, standing alone, was not sufficient to support a determination that Drug Emporium was liable for punitive damages.
4. Moreover, we reject the contention that appellant‘s mere failure to move for a directed verdict or to strike the evidence, based upon a failure to prove aggravating circumstances by “clear and convincing evidence,” constituted an express waiver of this higher statutory standard of proof. Contrary to any implicit contention, Hill, supra, did not address this particular issue and did not so affirmatively hold. Likewise, the case of Floyd v. First Union Nat. Bank &c., 203 Ga. App. 788 (417 SE2d 725) did not consider the appellate issues here under contention. Rather, one of the major issues addressed in Floyd was the effect of a default judgment on an averment by plaintiffs which demanded judgment as to both claims for punitive damages and attorney fees “‘in an amount to be determined at trial’ rather than in a specific dollar amount.” Id. at 788 (1). Hill and Floyd are not dispositive of these matters as ““[q]uestions which merely lurk in the record, neither brought to the attention of the court nor ruled upon, are not to be considered as having been so decided as to constitute precedents.“’ [Cits.]” Gordy Tire Co. v. Dayton Rubber Co., 216 Ga. 83, 89 (1) (114 SE2d 529).
5. Appellant took exception to the giving of both appellees’ Requests to Charge Nos. 4 and 5 and to the charging remarks given by the trial court immediately following the giving of appellees/plain-tiffs’ Request to Charge No. 5. In these charging remarks, the trial court emphasized that it was for the jury “to look at the evidence and make [its] determination” whether there exists evidence of the elements necessary to support an award of punitive damages. After re- emphasizing the element of “an entire want of care and indifference to the consequences [by the defendants],” the trial court gratuitously stated: “Those are the circumstances in which punitive damages would be allowed in this case, or I should say substantially punitive damages would be allowed. They would be entitled to at least nominal damages.” (Emphasis supplied.) This latter instruction on its face is both confusing and misleading, and a fair risk exists that the jury would interpret it as mandating them to return an award of punitive damages at least in some nominal amount. “Instructions not warranted by the evidence are cause for a new trial unless it is apparent that the jury could not have been misled thereby.” (Citations and punctuation omitted.) Dept. of Transp. v. Davison Investment Co., 267 Ga. 568, 570 (481 SE2d 522).
This charge created a fair risk that the jury would believe they were compelled to award punitive damages to the appellees/plain-tiffs, at least in some “nominal” amount. Thus, under the precedent of Foskey, supra, this charging error was not waived by a failure to take exception thereto. Further, it was of such nature as to bring them within the protective mantle of
For these reasons, the judgment can be affirmed only on the condition that appellees/plaintiffs in error agree to strike therefrom the $150,000 punitive damage award within ten days from the date the remittitur of this Court is made the judgment of the trial court; otherwise, judgment is reversed in its entirety and the case remanded for a new trial. See generally Cullen v. Novak, 201 Ga. App. 459, 460 (411 SE2d 331); Marriott Corp. v. American Academy &c., 157 Ga. App. 497, 501 (2) (277 SE2d 785).
Judgment affirmed on condition. Andrews, C. J., Pope, P. J., Johnson, Blackburn and Ruffin, JJ., concur. Eldridge, J., concurs in part and dissents in part.
ELDRIDGE, Judge, concurring in part and dissenting in part.
I concur in the majority‘s Division 1 and respectfully dissent as to the remainder of the opinion.
1.
Appellees chose to submit the case to the jury on the theories of false imprisonment and false arrest. “False imprisonment is the unlawful detention of the person of another, for any length of time, whereby such person is deprived of his personal liberty.”
“Wanton and wilful conduct differs from gross negligence. Wilful conduct is based on an actual intention to do harm or inflict injury; wanton conduct is that which is so reckless or so charged with indifference to the consequences as to justify the jury in finding a wantonness in spirit to actual intent.” (Citations and punctuation omitted.) Hendon v. DeKalb County, 203 Ga. App. 750, 758 (5) (417 SE2d 705) (1992); see also Dyches v. McCorkle, 212 Ga. App. 209, 216 (2) (441 SE2d 518) (1994). The facts stated in the complaint and the failure of appellant to put up any evidence at trial as to punitive damages, either to mitigate the imposition of punitive damages or to refute that its conduct was wilful or wanton in order to mitigate the imposition of punitive damages under
By the default judgment, appellant is barred from showing that there was probable cause for the detention and arrest, and the complaint shows a complete absence of probable cause. “Malice may be inferred if ‘defendant‘s acts were wanton or were done with a reckless disregard for or conscious indifference to the rights of the plaintiff.’ Bowen v. Waters, 170 Ga. App. 65, 67 (2) (316 SE2d 497) (1984).” Willis v. Brassell, 220 Ga. App. 348, 352 (3) (469 SE2d 733) (1996). Therefore, the jury may infer malice from the complete absence of probable cause. See generally inference of malice in malicious prosecution cases id. at 353; Fuller v. Jennings, 213 Ga. App. 773, 776 (1) (445 SE2d 796) (1994); Garmon v. Warehouse Groceries &c., 207 Ga. App. 89, 92 (2) (427 SE2d 308) (1993); McMillan v. Day Realty Assoc., 159 Ga. App. 366, 368 (2) (283 SE2d 298) (1981). Appellant‘s silence as to the aggravating circumstances and failure to put up any defense evidence in mitigation of the punitive damages could be construed by the jury as an admission of plaintiffs’ assertions regarding punitive damages.
In the caption of
In a default judgment, the aggravating factors under
Unlike Clarke v. Cotton, 263 Ga. 861 (440 SE2d 165) (1994), a case upon which appellant relies, appellant failed to object and to request that the jury be charged that the burden of proof is by clear and convincing evidence and that such standard be defined. Under
“[W]e pointed out that, in Georgia, the purpose of punitive dam- ages is to deter the repetition of reprehensible conduct by the defendant.
“Something more than the mere commission of a tort is always required for punitive damages. There must be circumstances of aggravation or outrage, such as spite or malice, or a fraudulent or evil motive on the part of the defendant, or such as a conscious and deliberate disregard of the interests of others that the conduct may be called wilful or wanton. There is general agreement that, because it lacks this element, mere negligence is not enough, even though it is so extreme in degree as to be characterized as gross. Still less, of course, can such damages be charged against one who acts under an innocent mistake in engaging in conduct that nevertheless constitutes a tort.” (Citations and punctuation omitted.) Banks v. ICI Americas, supra at 610 (3), quoting Colonial Pipeline Co. v. Brown, 258 Ga. 115, 121-122 (4) (365 SE2d 827) (1988).
When a party is in default on an intentional tort which falls within the ambit of
The admitted facts of the complaint showed “[t]here was no harm with regard to punitive damages against [appellant] because the overwhelming [admissions in the default] showed a ‘conscious indifference to consequences’ on [its] part, more than meeting the clear and convincing standard of
The provisions of
2. Appellant submitted no written request to charge on
“Assuming without deciding that it is always error for the trial court not to comply exactly with the requirements of
3. Appellant‘s exception to Request to Charge No. 4 is based upon possible confusion to the jury with regard to pain and suffering and for loss of capacity to labor and earn money. However, the charge was a correct statement of the law. See Williams v. Vinson, 104 Ga. App. 886, 892-893 (6) (123 SE2d 281) (1961); Langran v. Hodges, 60 Ga. App. 567, 569-571 (3) (4 SE2d 489) (1939).
For reversal of a case based upon a jury charge or failure to charge, there must be a showing of harmful error, which causes such gross injustice that the question of whether the party has been deprived of a fair trial can fairly be raised. See Greenhill v. State, 199 Ga. App. 218, 222 (404 SE2d 577) (1991); Wisenbaker v. Warren, 196 Ga. App. 551, 555 (5) (396 SE2d 528) (1990); Hamrick v. Wood, 175 Ga. App. 67, 68 (2) (332 SE2d 367) (1985).
DECIDED JULY 3, 1997.
Sharon C. Barnes, for appellant.
Paris & Peterson, Richard J. Paris, Jr., Stephen D. Peterson, for appellees.
