KIMBERLY COREMIN and
SCOTT COREMIN,
Plaintiffs,
v
.
Guilford County
No. 02 CVS 5841
SHERRILL FURNITURE COMPANY,
RALPH WOODY WILLIAMS, and
MELANIE COOPER,
Defendants.
Appeal by plaintiffs from an order entered 25 February 2004 by
Judge Anderson Cromer in Guilford County Superior Court. Heard in
the Court of Appeals 8 March 2005.
Kennedy, Kennedy, Kennedy & Kennedy, L.L.P., by Harvey L.
Kennedy and Harold L. Kennedy, III, for plaintiff-appellants.
Womble Carlyle Sandridge & Rice, P.L.L.C., by James M. Powell,
Lucretia D. Guia, and J. Mark Sampson, for defendant-
appellees.
ELMORE, Judge.
Kimberly and Scott Coremin (plaintiffs) are former sales
representatives of Precedent Furniture (Precedent), a district
division of defendant Sherrill Furniture Company (Sherrill
Furniture). Plaintiffs, a married couple, worked according to
contracts with Sherrill Furniture. Defendant Ralph Woody
Williams was, at all times relevant to this action, the chief
executive officer of Precedent. On 25 April 2001, Williams held a meeting with plaintiffs to
address their criticism of a new furniture line introduced earlier
that day. Williams informed plaintiffs that he had spoken with
Buddy Sherrill, owner of Sherrill Furniture, and that their sales
relationship with the company would be terminated if plaintiffs did
not change their negative attitude.
Plaintiff Kim Coremin thereafter complained of sexual
harassment by Williams to Mike Powers, chief financial officer of
Sherrill Furniture. Powers met with plaintiffs to discuss the
sexual harassment incidents involving Kim Coremin and then
interviewed several other employees of Precedent as part of his
investigation of the complaint. Mike Powers reported his findings
to Buddy Sherrill but did not recommend any specific course of
action regarding Williams. Kim Coremin testified that no further
incidents of sexual harassment occurred after this investigation.
Plaintiffs requested a formal meeting with Buddy Sherrill and
Mike Powers, which occurred on 23 July 2001. Melanie Cooper, the
vice president of creative design at Sherrill Furniture, was also
present at this meeting. Buddy Sherrill asked Kim Coremin to go
through the allegations one by one. Once Kim had finished, Melanie
Cooper questioned her about the context of Williams's comments.
Ms. Cooper asked Kim why she had permitted another male employee,
Larry Payne, to hug and grab [her] on the ass and was able to
laugh off that conduct but not the actions of Williams. Ms. Cooper
also inquired about an incident where Kim playfully flicked the
handcuffs of a police officer outside where company employees wereunloading furniture prior to a market. At the conclusion of the
meeting, Kim Coremin requested that Williams be terminated.
At the 2001 fall furniture market, Scott Coremin and Andy
Leeds, the former Director of Sales and Marketing at Sherrill
Furniture, were involved in a dispute which resulted in Scott
pushing Andy up against the wall. Williams, standing in a nearby
room, observed the incident and intervened. After learning of this
incident two days later, Buddy Sherrill spoke to Andy Leeds about
it. Immediately thereafter, Buddy notified plaintiffs that he was
terminating their relationship with Sherrill Furniture.
Plaintiffs filed their complaint on 12 April 2002 in Guilford
County Superior Court. Plaintiffs Kim and Scott Coremin alleged
tortious interference with contract and unfair and deceptive trade
practices against Williams and Sherrill Furniture. Kim Coremin
also alleged the following claims: intentional infliction of
emotional distress (against Williams and Sherrill Furniture);
negligent retention and supervision (against Williams and Sherrill
Furniture); and slander per se (against Melanie Cooper and Sherrill
Furniture). On 13 November 2003, defendants filed a motion for
summary judgment. The summary judgment hearing was scheduled for
9 January 2004, and plaintiff Kim Coremin submitted an affidavit on
7 January 2004. The trial court granted defendants' summary
judgment motion on all claims. From this order entered 25 February
2004, plaintiffs appeal.
We review plaintiffs' arguments on each claim separately.
Summary judgment is properly granted when 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. N.C. Gen. Stat. § 1A-1, Rule 56(c)
(2003). A party moving for summary judgment may prevail if it
meets the burden (1) of proving an essential element of the
opposing party's claim is nonexistent, or (2) of showing through
discovery that the opposing party cannot produce evidence to
support an essential element of his or her claim. Lowe v.
Bradford, 305 N.C. 366, 369, 289 S.E.2d 363, 366 (1982).
I. Intentional Infliction of Emotional Distress
The elements of an action for intentional infliction of
emotional distress (IIED) are 1) extreme and outrageous conduct by
the defendant 2) which is intended to and does in fact cause 3)
severe emotional distress. Waddle v. Sparks, 331 N.C. 73, 82, 414
S.E.2d 22, 27 (1992) (quotation omitted). Conduct is extreme and
outrageous when it is 'so outrageous in character, and so extreme
in degree, as to go beyond all possible bounds of decency, and to
be regarded as atrocious, and utterly intolerable in a civilized
community.' Guthrie v. Conroy, 152 N.C. App. 15, 22, 567 S.E.2d
403, 408 (2002) (quoting Briggs v. Rosenthal, 73 N.C. App. 672,
677, 327 S.E.2d 308, 311, cert. denied, 314 N.C. 114, 332 S.E.2d
479 (1985)). The determination of whether conduct rises to the
level of extreme and outrageous is a question of law. Id. at 21,
567 S.E.2d at 408. In the context of alleged sexual harassment as
the conduct underlying a claim for IIED, a plaintiff may create agenuine issue of material fact as to whether the conduct was
extreme and outrageous if the evidence shows:
an unfair power relationship between defendant
and plaintiff; explicitly obscene or X rated
language; sexual advances towards plaintiff;
statements expressing desire to engage in
sexual relations with plaintiff, or; defendant
either touching plaintiff's private areas or
touching any part of the plaintiff's body with
his private parts.
Id. at 23, 567 S.E.2d at 409 (citations omitted) (reviewing case
law on IIED claims based upon allegations of sexual harassment).
Here, the evidence shows the following incidents in support of
plaintiff Kim Coremin's IIED claim: Williams touched Kim's hair,
shoulders, and the small of her back; in the presence of both
plaintiffs, Williams told Kim that she had a great figure for her
appetite and remarked to Scott that he liked her legs; after Kim
blew drywall dust off of a catalog, Williams stated, Scott, you
never told me that Kim gave blow jobs[]; and while Kim was
standing on a ladder, Williams stood below her with his face near
hear buttocks.
(See footnote 1)
In each instance, the conduct fell short of sexual
touching, sexual advances, or X rated obscene language. The
blow job comment, although insulting and offensive, does not
constitute conduct which is so egregious as to go beyond all
possible bounds of decency. See Guthrie, 152 N.C. App. at 22, 567S.E.2d at 408 (stating that mere insults, indignities, and
threats are not extreme and outrageous acts).
Plaintiff Kim Coremin presents no evidence that Williams made
sexual advances, touched his private parts to her body, or touched
her private parts. Cf. Hogan v. Forsyth Country Club Co., 79 N.C.
App. 483, 490-91, 340 S.E.2d 116, 121, disc. review denied, 317
N.C. 334, 346 S.E.2d 141 (1986) (summary judgment improper where
plaintiff's evidence of extreme and outrageous conduct showed that
co-worker asked her to have sex with him, rubbed his penis against
her buttocks and touched her buttocks with his hands).
The remaining facts plaintiffs allege as supporting the IIED
claim are contradictory to Kim Coremin's deposition testimony. In
particular, plaintiffs state that Williams asked a male sales
representative at the April 2000 furniture market if he was trying
to score with Kim. However, Kim Coremin testified in her
deposition that when Williams overheard the sales representative
offer to mail some catalogs to Kim's house to assist her in
purchasing new lamps for the showroom, Williams asked him if he was
trying to score brownie points with her. Thus, the comment was
not of a sexual nature as implied by plaintiffs in their brief.
This Court has previously held that a party opposing a motion for
summary judgment cannot create a genuine issue of material fact by
filing an affidavit contradicting his prior sworn testimony.
Pinczkowski v. Norfolk S. Ry. Co., 153 N.C. App. 435, 440, 571
S.E.2d 4, 7 (2002). Accordingly, we do not consider the factspresented by plaintiffs which contradict the previously submitted
deposition testimony.
As plaintiffs have failed to present sufficient evidence of
the extreme and outrageous element necessary to maintain a claim
for IIED, the trial court properly granted summary judgment to
defendants on this claim.
II. Negligent Retention
Next, plaintiffs allege that Sherrill Furniture retained
Williams and failed to adequately supervise him following notice of
the sexual harassment allegations against him. However,
plaintiffs' claim for negligent retention and supervision must fail
because they cannot maintain the IIED tort claim against Williams.
See Hogan, 79 N.C. App. at 496-97, 340 S.E.2d at 124-25 (where
evidence does not establish that employee of defendant committed
tortious act alleged, intentional infliction of emotional distress,
plaintiff may not maintain action against defendant employer based
upon negligence in retaining the employee).
III. Slander Per Se
Next, plaintiffs contend that the statements by Melanie Cooper
during the 23 July 2001 meeting constitute slander per se. In
North Carolina, [s]lander per se is an oral communication to a
third person which amounts to (1) an accusation that the plaintiff
committed a crime involving moral turpitude; (2) an allegation that
impeaches the plaintiff in his trade, business, or profession; or
(3) an imputation that the plaintiff has a loathsome disease.
Phillips v. Winston-Salem/Forsyth County Bd. of Educ., 117 N.C.App. 274, 277, 450 S.E.2d 753, 756 (1994), disc. review denied, 340
N.C. 115, 456 S.E.2d 318 (1995).
Here, the statements by Melanie Cooper at the July 2001
meeting do not fall into one of these three categories.
Specifically, the statement regarding Kim's allegedly flirting with
and expressing affections to a male co-worker does not impeach Kim
in her business capacity. See Johnson v. Bollinger, 86 N.C. App.
1, 10, 356 S.E.2d 378, 384 (1987) (statement must touch plaintiff
in respect to his business occupation or trade). Furthermore,
plaintiffs concede in their brief that the statements made by Ms.
Cooper are subject to a qualified privilege. Indeed, Ms. Cooper
was speaking in her capacity as a vice president of Sherrill
Furniture during an internal investigation into sexual harassment
allegations. As such, it was incumbent upon plaintiffs to set
forth specific facts to show that Ms. Cooper acted with actual
malice. See Dobson v. Harris, 352 N.C. 77, 86, 530 S.E.2d. 829,
836-37 (2000) (in order to overcome qualified privilege, plaintiff
must present more than conclusory, subjective allegation that
defendant acted with actual malice). Plaintiffs have failed to
negate the good faith presumption of qualified privilege, and the
trial court properly granted summary judgment on this claim.
IV. Tortious Interference with Contractual Rights
The requisite elements of an action for interference with
contract are:
(1) a valid contract between the plaintiff and
a third person which confers upon the
plaintiff a contractual right against a third
person; (2) the defendant knows of thecontract; (3) the defendant intentionally
induces the third person not to perform the
contract; (4) and in doing so acts without
justification; (5) resulting in actual damage
to plaintiff.
United Laboratories, Inc. v. Kuykendall, 322 N.C. 643, 661, 370
S.E.2d 375, 387 (1988).
First, plaintiffs contend that Sherrill Furniture is liable
for the tort of interference with contract; however, this Court has
held that a plaintiff cannot maintain an action for interference
with contract against a party to that contract. See Wagoner v.
Elkin City Schools' Bd. of Education, 113 N.C. App. 579, 587, 440
S.E.2d 119, 124 (citing Smith v. Ford Motor Co., 289 N.C. 71, 87,
221 S.E.2d 282, 292 (1976)), disc. review denied, 336 N.C. 615, 447
S.E.2d 414 (1994). As such, plaintiffs' claim against Sherrill
Furniture, a party to the contracts, must fail. Second, plaintiffs
assert a claim of tortious interference with contract against
Williams, alleging that Williams and Andy Leeds contrived an
altercation [with Scott Coremin] as a basis for terminating the
[plaintiffs'] contract.
A non-outsider to a contract, such as a manager or
supervisor with a legitimate business interest in the subject
matter of the contract, may be liable for interference with
contract only if he acted with legal malice. See Smith v. Ford
Motor Co., 289 N.C. 71, 87-88, 221 S.E.2d 282, 292 (1976) (defining
non-outsider); Varner v. Bryan, 113 N.C. App. 697, 702, 440 S.E.2d
295, 298 (1994) (explaining legal malice standard applicable to
non-outsider). Accordingly, [t]he plaintiff's evidence must showthat the defendant acted without any legal justification for his
action. Varner, 113 N.C. App. at 702, 440 S.E.2d at 298. Here,
plaintiffs set forth no specific facts to support their allegation
that Williams reported the incident between Scott Coremin and Andy
Leeds for retaliatory purposes, rather than legitimate business
reasons. Additionally, plaintiffs cannot forecast evidence that
Williams induced Buddy Sherrill to terminate plaintiffs' contracts.
See Dalton v. Camp, 353 N.C. 647, 655, 548 S.E.2d 704, 710 (2001)
(where nothing in record shows inducement by defendant beyond mere
speculation, plaintiff has failed to establish essential element of
tortious interference with contract). Indeed, Buddy Sherrill
testified that he did not speak to Williams at any time in the
period between the Leeds incident and plaintiffs' termination.
Therefore, plaintiffs cannot establish prima facie evidence of each
element of their claim for tortious interference with contract.
V. Unfair and Deceptive Trade Practices
In order to establish a prima facie claim for unfair trade
practices [under N.C. Gen. Stat. § 75-1.1], a plaintiff must show:
(1) defendant committed an unfair or deceptive act or practice, (2)
the action in question was in or affecting commerce, and (3) the
act proximately caused injury to the plaintiff. Dalton, 353 N.C.
at 656, 548 S.E.2d at 711. Slander per se and tortious
interference with contract are unfair or deceptive acts or
practices within the meaning of the statute. See Ausley v. Bishop,
133 N.C. App. 210, 515 S.E.2d 72 (1999); United Laboratories, Inc.
v. Kuykendall, 322 N.C. 643, 370 S.E.2d 375 (1988). Here, plaintiffs have not forecast evidence of any fraudulent act or
other tortious conduct by Williams or Sherrill Furniture coming
within the purview of N.C. Gen. Stat. § 75-1.1. In particular,
plaintiffs cannot forecast prima facie evidence of their claims for
slander per se or contractual interference. Thus, plaintiffs have
failed to show the existence of an unfair act or practice.
In sum, defendants have established that plaintiffs cannot
produce evidence to support each essential element of their claims.
The trial court, therefore, properly granted summary judgment to
defendants in this matter.
Affirmed.
Judges WYNN and TYSON concur.
Report per Rule 30(e).
*** Converted from WordPerfect ***