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Waddle & Simpson v. Sparks & Guilford Mills, Inc. — North Carolina Court of Appeals (Filed 21 August 1990)

Factual and Procedural Background

On 20 April 1988 plaintiffs Joann Waddle and Jacqueline Simpson filed a complaint alleging intentional and negligent infliction of mental distress against their supervisor, defendant Jack Sparks, and negligent hiring and retention against their employer, Guilford Mills, Inc. Defendants moved for summary judgment on 24 and 26 April 1989. The trial court granted the motions on 15 June 1989. Plaintiffs appealed from the orders granting summary judgment. The Court of Appeals heard the matter and assessed whether the trial court erred in granting summary judgment for defendants.

Legal Issues Presented

  1. Whether the trial court erred in granting summary judgment for defendants as to plaintiff Waddle's claim for intentional infliction of emotional distress and for negligent retention against Guilford Mills.
  2. Whether the trial court erred in granting summary judgment for defendants as to plaintiff Simpson's claim for intentional infliction of emotional distress (including whether Simpson's evidence fell within the three-year statute of limitations).

Arguments of the Parties

Plaintiff-Appellants' Arguments

  • Plaintiffs argued that summary judgment was improper with respect to their claims for intentional infliction of emotional distress; they presented a forecast of evidence describing sexually connotative statements and offensive actions by supervisor Sparks.

Defendant-Appellees' Arguments

  • Defendants moved for summary judgment. Sparks denied the truth of Waddle's allegations, testifying that there was no truth to them.
  • Defendants argued as an affirmative defense that plaintiffs' claims were grounded in assault and battery — which would invoke a one-year statute of limitations — and thus the claims would be time-barred.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sauls v. Charlotte Liberty Mut. Ins. Co., 62 N.C. App. 533, 535, 303 S.E.2d 358, 360 (1983) Limits of summary judgment: court may decide whether a genuine issue of material fact exists but not decide issues of fact. The court cited Sauls to explain the proper role of summary judgment and to frame its review of whether triable issues of fact remained for plaintiffs.
Land-of-Sky Regional Council v. Co. of Henderson, 78 N.C. App. 85, 336 S.E.2d 653 (1985), disc. review denied, 316 N.C. 553, 344 S.E.2d 7 (1986) When reviewing summary judgment, courts must view all evidence in the light most favorable to the nonmoving party. The court applied this principle in evaluating Waddle's and Simpson's forecasts of evidence to determine whether genuine issues of material fact existed.
Walker v. Westinghouse Electric Corp., 77 N.C. App. 253, 335 S.E.2d 79 (1985), disc. review denied, 315 N.C. 597, 341 S.E.2d 39 (1986) Supports the rule that evidence must be viewed in the light most favorable to the nonmoving party on summary judgment. The court relied on Walker as part of its summary judgment standard review.
Valdese Gen. Hosp. v. Burns, 79 N.C. App. 163, 339 S.E.2d 23 (1986) Summary judgment is generally inappropriate when a state of mind such as intent is at issue. The court used Valdese to support the conclusion that summary judgment is often improper where intent (here, Sparks' intent) is disputed.
Dickens v. Puryear, 302 N.C. 437, 276 S.E.2d 325 (1981) Defines elements of intentional infliction of emotional distress (extreme and outrageous conduct; intended to cause and does cause severe emotional distress) and establishes a three-year statute of limitations for that tort. The court recited Dickens to set out the tort's elements, to explain the three-year limitations period, and to reject the defendants' argument that the claims were assault and battery (one-year limitations) rather than IIED.
Pleasants v. Barnes, 221 N.C. 173, 177, 19 S.E.2d 627, 629 (1942) Elements for employer liability in negligent retention: plaintiff must show the employee committed a tortious act causing injury and that the employer knew or had reason to know of the employee's incompetency prior to the act. The court cited Pleasants in analyzing whether Guilford Mills could be liable for negligent retention based on reported conduct of Sparks.
Hogan v. Forsyth Country Club Co., 79 N.C. App. 483, 340 S.E.2d 116, disc. review denied, 317 N.C. 334, 346 S.E.2d 140 (1986) Employer liability for negligence in employing or retaining depends on sufficient evidence of the underlying tort by the employee. The court relied on Hogan to conclude that because Simpson's evidence was insufficient to establish a claim against Sparks, she could not maintain a negligent retention claim against Guilford Mills.

Court's Reasoning and Analysis

The Court began by stating the summary judgment standard under Rule 56(c): summary judgment is proper only if there is no genuine issue as to any material fact, viewing the evidence in the light most favorable to the nonmoving party. The Court reiterated that summary judgment is generally inappropriate when a party's state of mind (such as intent) is at issue.

Applying the elements of intentional infliction of emotional distress as set out in Dickens v. Puryear (extreme and outrageous conduct; intent to cause and causing severe emotional distress; three-year statute of limitations), the Court separately analyzed each plaintiff's forecast of evidence.

As to plaintiff Waddle, the Court identified specific acts within the three-year limitations period (e.g., sexually explicit statements in 1985–1986, repeated sexual innuendo beginning in 1983 continuing through her employment, attempts to brush against her breasts in 1983–84, and complaints she made to management in late 1985). Viewing that evidence in Waddle's favor, the Court concluded:

  • There were sufficient allegations to raise a factual question whether Sparks' conduct was extreme and outrageous (not merely insults or unflattering opinions).
  • There was a factual dispute as to Sparks' intent; because Sparks denied the allegations, intent could not be conclusively resolved on summary judgment and thus remained a triable issue.
  • Waddle alleged humiliation and intimidation sufficient to raise a jury question as to severe emotional distress.
  • Regarding negligent retention, Waddle's evidence that she reported Sparks' conduct to Personnel Director Brenda Shelton and that there is no record of any confrontation of Sparks after December 1985 raised an inference that Guilford Mills had notice and potentially impliedly ratified the conduct, creating questions for a jury under Pleasants.
  • The defendants' contention that the claims were assault and battery subject to a one-year statute of limitations was rejected: the Court cited Dickens to explain the distinction and found the argument meritless.

As to plaintiff Simpson, the Court found Simpson could not place any specific incidents within the three-year limitations period. Her deposition testimony showed she "can't say for sure" when alleged incidents occurred and could not identify dates or years. Because there was simply no evidence that any alleged incidents occurred within the three-year period, the Court held the evidence was insufficient to raise a triable issue and affirmed summary judgment for Sparks. The Court further held that, because Simpson could not establish a claim against Sparks, she could not maintain a negligent retention claim against Guilford Mills (citing Hogan).

Holding and Implications

Affirmed in part; reversed in part; and remanded.

Direct effects:

  • The Court reversed the trial court's grant of summary judgment as to plaintiff Waddle's claims (intentional infliction of emotional distress against Sparks and negligent retention against Guilford Mills) and remanded those claims for further proceedings consistent with the opinion.
  • The Court affirmed the trial court's grant of summary judgment as to plaintiff Simpson's claims (both against Sparks and Guilford Mills) because Simpson's evidence did not show any actionable conduct within the three-year statute of limitations period.

The opinion does not announce or claim to establish a new legal rule; it applies established summary judgment standards and precedent to the facts before the court.

JOANN.W. WADDLE AND JACQUELINE E. SIMPSON v. JACK SPARKS AND GUILFORD MILLS, INC.

1. Trespass 2 (NCI3d) — intentional infliction of emotional distress — sexual harassment by supervisor — sufficient forecast of evidence Plaintiff's forecast of evidence presented genuine issues of material fact for the jury in an action against her former supervisor for intentional infliction of emotional distress based on various sexually connotative statements and offensive actions.

Am Jur 2d, Fright, Shock, and Mental Disturbance 17; Trespass 8, 18.

2. Master and Servant 29 (NCI3d) — negligent retention of supervisor — sufficient forecast of evidence Plaintiff's forecast of evidence was sufficient to maintain her claim against defendant employer for negligent retention of her supervisor where it would permit a jury to find that the supervisor's behavior constituted the intentional infliction of emotional distress, the supervisor was acting within the course and scope of his employment, and defendant employer impliedly ratified the supervisor's behavior after plaintiff reported the supervisor's actions to the employer's personnel director.

Am Jur 2d, Master and Servant 213.

3. Trespass 2 (NCI3d) — intentional infliction of emotional distress — statute of limitations — insufficient forecast of evidence A second plaintiff's forecast of evidence was insufficient to establish a claim against her former supervisor for intentional infliction of emotional distress where there was no evidence that any of the incidents upon which plaintiff relied took place within the three year statute of limitations period.

Am Jur 2d, Master and Servant 357.

Judge LEWIS concurring in part and dissenting in part.

On 20 April 1988, plaintiffs filed a complaint against defendants alleging intentional and negligent infliction of mental distress against defendant Sparks and negligent hiring and retention of defendant Sparks by defendant Guilford Mills. Defendants filed motions for summary judgment on 24 April and 26 April 1989. The trial court granted these motions on 15 June 1989.

From the orders granting summary judgment to defendants, plaintiffs appeal.

ORR, Judge.

The sole issue on appeal is whether the trial court erred in granting summary judgment for defendants. For the reasons below, we hold that the trial court erred in granting summary judgment for defendants against plaintiff Waddle and affirm the summary judgment against plaintiff Simpson.

Under N.C. Gen. Stat. 1A-1, Rule 56 (c) (1983), a motion for summary judgment shall be granted "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law." This remedy permits the trial court to decide whether a genuine issue of material fact exists; it does not allow the court to decide an issue of fact. Sauls v. Charlotte Liberty Mut. Ins. Co., 62 N.C. App. 533, 535, 303 S.E.2d 358, 360 (1983) (citations omitted).

In a summary judgment proceeding, the trial court must determine if there is a triable material issue of fact, viewing all evidence presented in the light most favorable to the nonmoving party. Land-of-Sky Regional Council v. Co. of Henderson, 78 N.C. App. 85, 336 S.E.2d 653 (1985), disc. review denied, 316 N.C. 553, 344 S.E.2d 7 (1986); Walker v. Westinghouse Electric Corp., 77 N.C. App. 253, 335 S.E.2d 79 (1985), disc. review denied, 315 N.C. 597, 341 S.E.2d 39 (1986). Summary judgment is generally inappropriate when a state of mind such as intent or knowledge is at issue. Valdese Gen. Hosp. v. Burns, 79 N.C. App. 163, 165, 339 S.E.2d 23, 25 (1986) (citation omitted). With these general principles in mind, we now turn to whether the trial court erred in granting summary judgment against plaintiffs.

Both plaintiffs argue that summary judgment was improper regarding their claims of intentional infliction of emotional distress. The elements of this tort are: (1) extreme and outrageous conduct, (2) which is intended to cause and does cause (3) severe emotional distress. Dickens v. Puryear, 302 N.C. 437, 452, 276 S.E.2d 325, 335 (1981). This tort also may lie where a "defendant's actions indicate a reckless indifference to the likelihood that they will cause severe emotional distress." Id. The statute of limitations for the tort of intentional infliction of emotional distress is three years. Id. at 444, 276 S.E.2d at 330.

I.

Plaintiff Waddle's Action

Plaintiff Waddle's allegations in the complaint and her testimony at her deposition indicate the following acts occurred within three years of the 20 April 1988 date of the complaint.

1. Plaintiff began her employment for Defendant Guilford Mills (hereinafter Guilford Mills) in 1970, and voluntarily terminated her employment (rather than be fired) in October 1987. Defendant Sparks began his employment as Waddle's shift supervisor in early 1983. At all times alleged, Sparks acted within the course and scope of his employment for Guilford Mills.

2. Sometime in March 1986, plaintiff and some other workers were threading a machine and one worker mentioned greasing the balls. Waddle heard Sparks state something to another employee to the effect of, "what are you worrying about Bill's balls for?"

3. In the fall of 1985, Waddle had a cut on her finger which became infected with pus. When she went to the supervisor's office to have her finger treated, Sparks stated, "yeah, Joann's got a pussy finger. Walt's going to have to work on Joann's pussy." As someone else was coming into the office Sparks stated, "You can't go in there right now. Walt's working on Joann's pussy finger." Waddle testified that as the defendant spoke he paused between the words "pussy" and "finger."

4. Waddle testified that beginning in 1983, Sparks constantly used sexual innuendoes and injected sexual statements into ordinary conversations, which continued throughout Waddle's employment.

5. On two occasions in 1983, Sparks attempted to brush up against Waddle's breasts. This behavior continued until sometime in 1984. Waddle testified that she was continually watching for Sparks' attempts to rub against her so that she could get away from him.

6. Sometime in March or April 1985, plaintiff and Sparks were examining some fabric and Waddle commented that the fabric "has four holes the way it's supposed to." Sparks replied, "do you have four holes? I bet you know how to use all of them, don't you?"

7. As early as the fall of 1985, Waddle complained about Sparks to Assistant Plant Manager Ed Gray about several things including Sparks' "vulgar and filthy" mouth. Sparks acknowledged in his deposition that he had received a verbal reprimand from Plant Manager John Moffitt concerning his vulgar language.

8. In November or December 1985, Waddle complained to Personnel Director Brenda Shelton about Sparks' unfair treatment concerning job assignments and his "filthy mouth."

Viewing the above evidence in the light most favorable to Waddle, we hold that the trial court erred in granting summary judgment in favor of defendants. First, there are sufficient facts alleged to raise a question of whether Sparks' conduct was extreme and outrageous. The allegations are sufficient to establish that Sparks' behavior constituted more than insults or unflattering opinions.

Second, there are sufficient facts to raise a question of what Sparks intended by his behavior. There is not enough evidence before the trial court to make a conclusive determination that Sparks did not intend to cause severe emotional distress to Waddle. Sparks testified that there was no truth to any of Waddle's allegations. Therefore, there was no emotional distress to Waddle and no intent on his (Sparks) part to create emotional distress. However, when there is a question of intent, summary judgment is usually inappropriate. See Valdese Gen. Hosp. v. Burns, 79 N.C. App. 163, 339 S.E.2d 23 (1986).

Moreover, Waddle alleged that she was humiliated and upset over the situation at work with Sparks' alleged sexual harassment and was intimidated. Viewing this evidence in the light most favorable to Waddle, it is not conclusive proof of emotional distress, but it at least raises an issue of fact for a jury.

Third, with regard to plaintiff's complaint that defendant Guilford Mills negligently retained Sparks as an employee, the evidence raises enough questions concerning whether Sparks was acting in the course and scope of his employment and whether his behavior was impliedly ratified by Guilford Mills after Waddle reported Sparks to Brenda Shelton. Before an employer may be held liable for negligent retention of an employee, plaintiff must establish that the incompetent employee committed a tortious act resulting in injury to plaintiff, and that prior to the act, the employer knew or had reason to know of the employee's incompetency. Pleasants v. Barnes, 221 N.C. 173, 177, 19 S.E.2d 627, 629 (1942). Waddle's evidence raises such inferences here.

There is evidence in the case sub judice that some of Sparks' behavior was reported to Ms. Shelton. There is no evidence before us concerning what Ms. Shelton did with the information she obtained from Waddle. There is certainly no evidence that Sparks was ever confronted after December 1985 with the information available to Ms. Shelton. Therefore, we hold that summary judgment was granted improperly in favor of Guilford Mills with regard to plaintiff Waddle.

Finally, defendants argue that plaintiffs' claim for relief is grounded in assault and battery (not intentional infliction of emotional distress); and therefore, the statute of limitations is one year instead of three years. Under this affirmative defense, plaintiffs' claim would be completely barred because none of the alleged incidents occurred within one year of April 1988 when plaintiffs filed their complaint. We find this argument to be completely without merit. See Dickens v. Puryear, 302 N.C. 437, 276 S.E.2d 325 (1981), and the cases cited therein. (In order for an action to lie in assault and battery, there must be an apprehension of immediate harmful or offensive contact, as distinguished from one in the future. Threats, without an offer or attempt to show violence, are not assaults.)

II.

Plaintiff Simpson's Claims

Plaintiff Simpson began working at Guilford Mills in 1983 and terminated her employment in 1986. The forecast of Simpson's evidence indicates that her supervisor, Sparks, engaged in a course of behavior including the use of foul language, sexual innuendoes, and obscene gestures toward her and other employees. Many of her allegations and testimony in her deposition are similar to Waddle's as reviewed above.

Simpson, however, can place no time period in which Sparks allegedly intentionally inflicted emotional distress. She was unable to place a day, month or year on any of the specific events she alleged. Therefore, viewing the evidence in the light most favorable to Simpson, she is unable to prove that any of the specific acts she alleged occurred after March 1985, which would have placed them within the three year statute of limitations period.

Simpson did not allege or testify to a single act by Sparks or a group of acts by Sparks that occurred within the limitations period. The following exchange is one example of Simpson's response concerning when the incidents alleged occurred.

Q. When did that occur?

A. I can't say for sure.

Q. How long before you left?

A. I have no idea.

Q. Could it have been as much as a year?

A. It might have.

Q. Maybe more?

A. I don't know. I don't remember.

Q. You have no idea when that occurred?

A. No.

Q. You can't even tell us which year it occurred in?

A. No. Like I said, there was lots of them.

There is simply no evidence to indicate that any of the alleged incidents regarding Simpson took place within the three year statute of limitations period. For this reason, we hold that the trial court did not err in granting summary judgment to defendant Sparks against plaintiff Simpson.

Moreover, we hold that the trial court did not err in granting summary judgment to Guilford Mills against plaintiff Simpson. Because the evidence is insufficient to establish Simpson's claim against Sparks, Simpson may not maintain an action against Guilford Mills based upon its negligence in employing or retaining Sparks. See Hogan v. Forsyth Country Club Co., 79 N.C. App. 483, 340 S.E.2d 116, disc. review denied, 317 N.C. 334, 346 S.E.2d 140 (1986).

In summary, we hold that the trial court erred in granting summary judgment against plaintiff Waddle and did not err in granting summary judgment against plaintiff Simpson and remand to the trial court for action consistent with this opinion.

Affirmed in part; reversed in part; and remanded.

Judge GREENE concurs.

Judge LEWIS concurs in part and dissents in part.

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WADDLE v. SPARKS
(Aug 1, 1990)