IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
September 2002 Term
_____________
No. 30459
_____________
CAMDEN-CLARK MEMORIAL HOSPITAL
CORPORATION, A CORPORATION
Plaintiff Below, Appellee
v.
SONYA TURNER,
Defendant Below, Appellant
______________________________________________________
Appeal from the Circuit Court of Wood County
Honorable George W. Hill, Judge
Civil Action No. 01-C-207
REVERSED AND REMANDED WITH DIRECTIONS
_____________________________________________________
Submitted: October 9, 2002
Filed: December 6, 2002
|
Richard A. Hayhurst, Esq. Andrew C. Woofter, Esq. Law Office of Richard Hayhurst Parkersburg, West Virginia Attorneys for Appellee
|
Hoyt Eric Glazer, Esq. Law Offices of Stuart Calwell, PLLC Charleston, West Virginia Attorney for Appellant |
1.
In reviewing the exceptions to the findings of fact and conclusions
of law supporting the granting of a temporary or preliminary injunction, we
will apply a three-pronged deferential standard of review. We review the final
order granting the temporary injunction and the ultimate disposition under
an abuse of discretion standard, West v. National Mines Corp., 168 W. Va. 578, 590, 285 S.E.2d 670, 678 (1981), we review
the circuit court's underlying factual findings under a clearly erroneous standard, and we
review questions of law de novo.' Syllabus Point 4, Burgess v. Porterfield, 196 W. Va. 178,
469 S.E.2d 114 (1996). Syl. pt. 1, State v. Imperial Marketing, 196 W. Va. 346, 472 S.E.2d
792 (1996).
2.
The granting or refusal of an injunction, whether mandatory or preventive,
calls for the exercise of sound judicial discretion in view of all the circumstances
of the particular case; regard being had to the nature of the controversy,
the object for which the injunction is being sought, and the comparative hardship
or convenience to the respective parties involved in the award or denial of
the writ. Syl. pt. 4, State ex rel. Donley v. Baker,
112 W. Va. 263, 164 S.E. 154 (1932).
3.
An ex parte preliminary injunction is an extraordinary remedy which
is justified only under extraordinary circumstances. Syl. pt. 1, Ashland Oil, Inc. v. Kaufman,
181 W. Va. 728, 384 S.E.2d 173 (1989).
4.
'Although the effect of an ex parte order granting a preliminary
injunction remains the same under W. Va. Code § 53-5-8, a court shall grant
such an injunction only if it clearly appears from specific facts shown by affidavit
or by verified complaint that immediate and irreparable injury, loss, or damage
will result to the applicant before the adverse party or his attorney can be
heard in opposition. The applicant's attorney must certify to the court the
efforts, if any, which have been made to give the notice and the reasons supporting
any claim that notice should not be given.' Syllabus Point 3, Ashland Oil,
Inc. v. Kaufman, 181 W. Va. 728, 384 S.E.2d 173 (1989). Syl. pt. 1,
United Mine Workers of Am., Local Union 1938 v. Waters, 200 W. Va. 289,
489 S.E.2d 266 (1997).
5.
A party in a civil action who desires immediate injunctive relief without prior
notice to the adverse party must make application for a temporary restraining
order under Rule 65 of the West Virginia Rules of Civil Procedure. Both the
applicant and the court must comply with the dictates of the rule, including
applicable time limits.
6.
If a civil action contains both a request for injunctive relief and a legal
claim that would ordinarily be tried before a jury, a court must allow a jury
to hear the legal claim before ruling on the question of permanent injunctive
relief.
McGraw, Justice:
Appellant Sonya Turner contests the lower court decision to enjoin her from
entering the premises of the hospital where she had worked as a clerk after the hospital
presented evidence that Ms. Turner had made threats of violence against her supervisors and
co-workers. The lower court first granted an ex parte temporary restraining order, and then
subsequently granted both a preliminary and a permanent injunction. Ms. Turner claims that
she did not threaten anyone, and that the hospital terminated her because of her support of
a union organizing effort at the hospital. Because we find that the lower court erred in
placing a burden on Ms. Turner to disprove the allegations made against her, we reverse the
lower court's grant of a permanent injunction and remand the case with directions.
The parties dispute the facts that led up to the issuance of the temporary
restraining order. The hospital maintains that Ms. Turner had made numerous threats against
several of her co-workers, including comments that she owned a gun, that she might come
to work and shoot the place up, or blow everyone away, or other statements to that
effect. The hospital presented the lower court with affidavits from several co-workers who
had overheard these statements and claimed to be in fear that Ms. Turner would carry out
these threats.
Ms. Turner claims that the real reason behind the hospital's decision to
suspend, and then terminate, her was that she was an ardent union supporter and was actively
involved in the efforts of the United Steel Workers' Union to organize the hospital
employees. Ms. Turner claims that the only potentially threatening statement she made was
a joking comment made at a meeting at the local union hall when she said, in jest, that she
was so mad she could spit and felt like shooting someone. To support her argument on
appeal, she notes that she was a vocal union supporter, wore a button in support of the union,
attended many union meetings, and wrote of her experience in a pro-union publication. She
also points to testimony of other co-workers, who stated they were never in any fear of Ms.
Turner.
Upon being served with the
temporary restraining order, Ms. Turner attempted to schedule a hearing to
dissolve it the week of May 14, 2001, but was unable to so do because of a
conflict with the court's schedule. Ms. Turner's counsel and counsel for the
hospital agreed to an extension of the temporary restraining order until the
court could hold a hearing. On May 23, 2001, Ms. Turner filed a Motion to
Vacate and Dissolve the temporary restraining order. On June 5, 2001 she also
filed an answer to the hospital's original complaint, denying the hospital's
allegations and making counterclaims for retaliatory discharge and abuse of
process. (See
footnote 1) However, in a hearing conducted on June 14,
2001, the lower court refused to dissolve the temporary restraining order
and even refused to hear testimony from Ms. Turner or her witnesses, concluding
that she had waived her rights to contest the temporary restraining order when she agreed to extend
it beyond the time limits contained in the applicable rule.
(See footnote 2)
Ms. Turner then sought a peremptory
Writ of Mandamus and/or Prohibition from this Court. This Court issued a Rule
to Show Cause on June 27, 2001, directing the hospital and the circuit court
to show why the requested writ should not be awarded unless sooner mooted
by the holding of a full evidentiary hearing in the underlying proceeding.
As a result, the lower court agreed to hold an evidentiary hearing, effectively
mooting the appellate process at that point. The court held a hybrid
hearing on August 16, 2001, during which witnesses testified for each side.
The parties characterize the hearing of August 16th either as an
evidentiary hearing, a hearing on Ms. Turner's motion to dissolve the temporary
restraining order, or a hearing to determine if the court should grant a preliminary
injunction. After this hearing the court issued an order dated August 27,
2001, in which it denied Ms. Turner's motion to dissolve the temporary restraining
order and granted a preliminary injunction
(See footnote 3) against Ms. Turner that effectively extended
the prohibitions contained in the temporary restraining order.
The court set a date of September 14, 2001 for a hearing to consider whether
the preliminary injunction should become a permanent injunction. Prior to the hearing, Ms.
Turner requested a jury trial on her counterclaims, which the court refused. On September
14, 2001, the lower court conducted a bench trial, over Ms. Turner's objection, to determine
if the injunction should become permanent. At that proceeding, Ms. Turner put on additional
evidence, but the hospital, other than cross-examining Ms. Turner's witnesses, simply rested
on the evidence it had already presented the court.
By order dated September 18, 2001, the court entered a permanent injunction
against Ms. Turner that incorporated the terms of the temporary restraining order initially
entered on May 10, 2001, and also taxed Ms. Turner with the cost of the proceedings. To
date, no jury has heard Ms. Turner's claims of retaliatory discharge and abuse of process.
Because we find that the lower court erred, we strike down the permanent injunction and
remand this case with directions.
In reviewing the exceptions to the findings of fact and
conclusions of law supporting the granting of a temporary or
preliminary injunction, we will apply a three-pronged deferential
standard of review. We review the final order granting the
temporary [preliminary] injunction and the ultimate disposition
under an abuse of discretion standard, West v. National Mines
Corp., 168 W. Va. 578, 590, 285 S.E.2d 670, 678 (1981), we
review the circuit court's underlying factual findings under a
clearly erroneous standard, and we review questions of law de
novo. Syllabus Point 4, Burgess v. Porterfield, 196 W. Va.
178, 469 S.E.2d 114 (1996).
Syl. pt. 1, State v. Imperial Marketing, 196 W. Va. 346, 472 S.E.2d 792 (1996). Accord,
State ex rel. United Mine Workers of America, Local Union 1938 v. Waters, 200 W. Va. 289,
296, 489 S.E.2d 266, 273 (1997).
To determine if the lower court has exceeded the bounds of its discretion in issuing the injunction, we must also examine the overall circumstances of the case and whether the court has made an attempt to balance the requisite factors:
The granting or refusal of an injunction, whether mandatory or
preventive, calls for the exercise of sound judicial discretion in
view of all the circumstances of the particular case; regard
being had to the nature of the controversy, the object for which
the injunction is being sought, and the comparative hardship or
convenience to the respective parties involved in the award or
denial of the writ.
Syl. pt. 4, State ex rel. Donley v. Baker, 112 W. Va. 263, 164 S.E. 154 (1932). Accord, Jefferson Cty. Bd. of Educ. v. Jefferson County Educ. Ass'n, 183 W. Va. 15, 393 S.E.2d 653 (1990); State ex rel. East End Assoc. v. McCoy, 198 W. Va. 458, 481 S.E.2d 764 (1996). In making this balancing inquiry, we have followed the lead of the Fourth Circuit Court of Appeals:
Under the balance of hardship test the [lower] court must
consider, in flexible interplay, the following four factors in
determining whether to issue a preliminary injunction: (1) the
likelihood of irreparable harm to the plaintiff without the
injunction; (2) the likelihood of harm to the defendant with an
injunction; (3) the plaintiff's likelihood of success on the
merits; and (4) the public interest.
Jefferson County Bd. of Educ. v. Jefferson County Educ. Ass'n, 183 W. Va. 15, 24, 393 S.E.2d 653, 662 (1990) (quoting Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Bradley, 756 F.2d 1048, 1054 (4th Cir.1985) (citation omitted)) (additional citations omitted). Finally, when considering the issuance of an ex parte temporary restraining order, we must determine if the lower court has abused its discretion with respect to the requirements of Rule 65 of the West Virginia Rules of Civil Procedure, which we discuss below. With these standards in mind, we proceed to consider the parties' arguments.
A. Injunctive Relief
This term has not always been
a part of our law on injunctions, but was introduced into our Rules of Civil
Procedure in the wake of this Court's decisions in Ashland Oil, Inc. v.
Kaufman, 181 W. Va. 728, 384 S.E.2d 173 (1989) and United Mine Workers
of Am., Local Union 1938 v. Waters, 200 W. Va. 289, 489 S.E.2d 266 (1997).
(See footnote 5) In
Ashland, the
lower court granted an injunction against Ashland Oil without first providing notice. On
appeal, this Court recognized that our court rules, which left decisions about notice to the
discretion of the judge, differed from the federal rules, which allowed injunctions without
notice only in special circumstances and with finite time limits.
Finding the federal rules superior to our own in this regard, the court stated: [W]e have concluded that adherence to some of the standards set forth in Rule 65 of the Federal Rules of Civil Procedure would more adequately assure that parties to West Virginia's injunction procedures are accorded due process of law. Ashland Oil, Inc. v. Kaufman, 181 W. Va. 728, 733, 384 S.E.2d 173, 178 (1989). The Court went on to fashion a syllabus point that incorporated the desired changes:
Although the effect of an ex parte order granting a preliminary
injunction remains the same under W. Va. Code § 53-5-8, a
court shall grant such an injunction only if it clearly appears
from specific facts shown by affidavit or by verified complaint
that immediate and irreparable injury, loss, or damage will result
to the applicant before the adverse party or his attorney can be
heard in opposition. The applicant's attorney must certify to the
court the efforts, if any, which have been made to give the
notice and the reasons supporting any claim that notice should
not be given.
Syl. pt. 3, Ashland Oil, Inc. v. Kaufman, 181 W. Va. 728, 384 S.E.2d 173 (1989). As the
Court explained in the Waters case, the reason for making the applicant of an ex parte order
jump through these additional procedural hoops is [t]o assure that there is adequate
protection of due process rights in the issuance of preliminary injunctions. United Mine
Workers of Am., Local Union 1938 v. Waters, 200 W. Va. 289, 296, 489 S.E.2d 266, 273
(1997). Waters concerned an injunction sought by a mining company against union members
who were picketing the mine. The lower court had granted an injunction to the company
without notice to the union members, and this Court reversed that decision.
We note that in both of these cases, the Court referred to an ex parte order granting a preliminary injunction and not to a temporary restraining order. At the time of these opinions the term temporary restraining order was not officially present in our legal lexicon. (See footnote 6) As Justice Starcher explained in his opinion in Waters:
West Virginia's injunction procedures differ from those found
in the Federal Rules of Civil Procedure. Ashland Oil v.
Kaufman, 181 W. Va. 728, 732, 384 S.E.2d 173, 177 (1989)
Unlike the federal court system, West Virginia law does not
provide for temporary restraining orders, but only
preliminary injunctions. Compare West Virginia Rules of
Civil Procedure 65 [1960] with Federal Rules of Civil
Procedure 65(b) [1987].
Id. 200 W. Va. 289, 294 n.2, 489 S.E.2d 266, 271 n.2. However, by April
6, 1998, Rule 65 of the West Virginia Rules of Civil Procedure has been amended
to include the new term. The rule now states that no preliminary injunction
may issue without notice to the adverse party, and the language of the rule
suggests that a temporary restraining order is essentially a preliminary
injunction of limited duration granted on an ex parte basis, subject
to special requirements.
(See footnote 7) The rule states, in part:
(a) Preliminary Injunction.
(1) Notice.--No preliminary injunction shall be issued without
notice to the adverse party. . . .
(b) Temporary Restraining Order; Notice; Hearing; Duration.
-- A temporary restraining order may be granted without written
or oral notice to the adverse party or that party's attorney only if
(1) it clearly appears from specific facts shown by affidavit or
by the verified complaint that immediate and irreparable injury,
loss, or damage will result to the applicant before the adverse
party or that party's attorney can be heard in opposition, and (2)
the applicant's attorney certifies to the court in writing the
efforts, if any, which have been made to give the notice and the
reasons supporting the claim that notice should not be required.
. . .
W. Va. R. Civ. Pro. 65. Thus, we now have three species of injunction under our rules of
civil procedure, the temporary restraining order, the preliminary injunction, and the
permanent injunction.
In order to clarify the terminology and procedure for seeking injunctive relief ex parte, we hold that a party in a civil action who desires immediate injunctive relief without prior notice to the adverse party must make application for a temporary restraining order under Rule 65 of the West Virginia Rules of Civil Procedure. Both the applicant and the court must comply with the dictates of the rule, including applicable time limits. Nothing in our holding should be read to interfere with other proceedings that might provide some sort of ex parte relief, such as Family Court Proceedings, (See footnote 8) Child Abuse and Neglect Proceedings, (See footnote 9) Domestic Violence Proceedings, (See footnote 10) or other circumstances already controlled by some other statute, rule, or regulation.
As suggested by its name, a temporary restraining order cannot exist
indefinitely. In the event that a court grants an ex parte temporary restraining order, then our
rules state the temporary restraining order will expire in 10 days without further order of the
court or agreement by the parties to extend it:
Every temporary restraining order granted without notice shall
be indorsed with the date and hour of issuance; shall be filed
forthwith in the clerk's office and entered of record; shall
define the injury and state why it is irreparable and why the
order was granted without notice; and shall expire by its terms
within such time after entry, not to exceed 10 days, as the court
fixes, unless within the time so fixed the order, for good cause
shown, is extended for a like period or unless the party against
whom the order is directed consents that it may be extended for
a longer period. . . .
Id.
(See footnote 11) In practice, this means that the applicant
for a temporary restraining order who wished to enjoin a party on a continuing
basis should request a hearing for his or her application for a preliminary
injunction before the expiration of the temporary restraining order.
Otherwise there may be a gap when the temporary restraining order has expired
under the rule, but no preliminary injunction has yet issued.
Turning to the facts of this case, first we note that this Court does not agree
with the earlier ruling of the circuit court, since mooted by subsequent decision, that Ms.
Turner somehow waived her right to object to the temporary restraining order when she
agreed to extend it beyond the deadline. As noted, Rule 65 states that a temporary
restraining order will expire no later than ten days after issue, unless, before its expiration,
the court extends it for another ten days, or unless the party against whom the order is
directed consents that it may be extended for a longer period. Id. In the instant matter, the
court granted the temporary restraining order on May 10, 2001. Ms. Turner sought a hearing
within ten days, but could not get one. Although she was under no obligation to do so, she
agreed to extend that temporary restraining order. Clearly, agreeing to extend the term of the
temporary restraining order does not waive the subject party's right to contest the temporary
restraining order, or any subsequent injunction.
Ms. Turner first argues that the lower court erred in granting the temporary
restraining order. She claims that the hospital demonstrated, at best, its conjecture that Mrs.
Turner might be violent. Her position is that the evidence offered by the hospital is
insufficient for the court to interfere with her ability to go to the hospital for work, and that
courts should not issue injunctive relief on such a speculative basis.
Rule 65 required the court to determine if it clearly appear[ed] . . . that
immediate and irreparable injury, loss or damage would result before the court could hear
Ms. Turner's side of the story. Reasonable minds may differ on whether it was clearly
apparent that Ms. Turner was going to injure someone. We note that nothing in the record
suggests that Ms. Turner has ever harmed anyone in her life. However, we do not wish to
second guess a trial court judge presented with evidence that a shooting might occur in the
absence of court action. In the instant case, we feel that the hospital complied with the
requirements of the rule, and that the lower court did not abuse its discretion in awarding the
temporary restraining order. Although we believe that the likelihood that Ms. Turner would
actually have harmed someone at the hospital is extremely low, we concur with the lower
court that had there been a violent altercation, irreparable harm almost certainly would have
resulted.
Although we do find that the court did not err when it granted the temporary
restraining order, we are not of the same opinion concerning the court's grant of the
preliminary injunction. Of concern to us is the fact that the lower court appears to have
placed a burden on Ms. Turner to disprove the allegations against her. In its order of August
27, 2001, in which it denied Ms. Turners' motion to dissolve the temporary restraining order
and allowed the temporary injunction to remain in force, the court noted that Ms. Turner had
failed to sustain her burden of proof.
The United States Supreme Court discussed this issue in a case concerning an employer who had sought a temporary restraining order, under the federal rules, against the members of a union:
Situations may arise where the parties, at the time of the hearing
on the motion to dissolve the restraining order, find themselves
in a position to present their evidence and legal arguments for or
against a preliminary injunction. In such circumstances, of
course, the court can proceed with the hearing as if it were a
hearing on an application for a preliminary injunction. At such
hearing, as in any other hearing in which a preliminary
injunction is sought, the party seeking the injunction would bear
the burden of demonstrating the various factors justifying
preliminary injunctive relief, such as the likelihood of
irreparable injury to it if an injunction is denied and its
likelihood of success on the merits.
Granny Goose Foods, Inc. v. Brotherhood of Teamsters and Auto Truck Drivers Local No.
70 of Alameda County, 415 U.S. 423, 441, 94 S. Ct. 1113, 1125, 39 L. Ed. 2d 435, 451
(1974)(footnote omitted). As the Court said in summation The burden was on the
employers to show that they were entitled to a preliminary injunction, not on the Union to
show that they were not. Id. 415 U.S. at 443, 94 S. Ct. at 1126, 39 L. Ed. 2d at 452.
Similarly, in this case, the burden of proof remained on the hospital, not Ms. Turner. Before the hospital approached the court with its request for injunctive relief, Ms. Turner was free to go where she pleased. It was the hospital, not Ms. Turner, that sought to change the status quo. While it is plain to us that the hospital put on significant evidence in support of the injunction, it is not clear to us that the court decided the issue with the correct burden of proof in mind. We also note that the hospital offered no new evidence at the permanent injunction hearing held on September, 14, 2001, thus the court necessarily relied upon its decision in its order of August 27, 2001. Because we are unable to say that the court applied the burden of proof to the right party, we must reverse the trial court on this point.
Thus, we reverse the lower court's grant of the preliminary injunction, and, by
necessity, strike down the court's grant of a permanent injunction as well. Of course, our
holding puts us in a bit of a logical dilemma in that the removal of the permanent injunction
could leave the hospital without any injunctive relief at all. That is, the temporary restraining
order either expired under Rule 65 or ended when the court granted the preliminary
injunction, and the preliminary injunction ended when the court granted the permanent
injunction. However, because the parties have evidenced a willingness to cooperate in the
past, and because we are not comfortable leaving the hospital without any temporary relief,
under the unique facts of this case we believe it best to consider the temporary restraining
order to be still in effect by virtue of the agreement of the parties, until such time as the lower
court may conduct a new hearing on whether or not to grant the preliminary injunction.
Both the federal and state constitutional jury trial provisions
grant the right to a jury trial in suits at common law. Suits in
equity were tried without juries. After the merger of law and
equity (in 1938 in the federal courts), many cases contain both
legal and equitable elements, usually in the form of the action or
the relief sought. Under the circumstances, the Supreme Court
has given an expansive reading of the seventh amendment. See
Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 79 S.Ct. 948,
3 L.Ed.2d 988 (1959) (jury trial right in a case involving two
discrete claims, one of which was triable by a jury).
Bishop Coal Co. v. Salyers, 181 W. Va. 71, 77, 380 S.E.2d 238, 244 (1989) (other citations
omitted). We have often declared the importance of the right to trial by jury in this State.
In a recent case dealing with consumer contracts that called for arbitration instead of jury
trials, this Court, after citing our Constitution, reaffirmed the central importance of our jury
system:
These constitutional rights--of open access to the courts to seek
justice, and to trial by jury--are fundamental in the State of West
Virginia. Our constitutional founders wanted the determinations
of what is legally correct and just in our society, and the
enforcement of our criminal and civil laws--to occur in a system
of open, accountable, affordable, publicly supported, and
impartial tribunals--tribunals that involve, in the case of the jury,
members of the general citizenry. These fundamental rights do
not exist just for the benefit of individuals who have disputes,
but for the benefit of all of us. The constitutional rights to open
courts and jury trial serve to sustain the existence of a core
social institution and mechanism upon which, it may be said
without undue grandiosity, our way of life itself depends.
State ex rel. Dunlap v. Berger 211 W. Va. 549, 560, 567 S.E.2d. 265, 276.
Ms. Turner points out a potential danger of letting requests for injunctive relief
interfere with jury trials in the context of employment cases. If such activity is permitted, an
employer could, in theory, always seek an injunction before taking action adverse to an
employee, and thus greatly reduce the likelihood that a jury would ever hear that employee's
potential counterclaims. While we are in no way suggesting that this was the hospital's
intended course of action, we think it prudent to clarify this issue and remove such a
pernicious possibility. Thus, we hold that, if a civil action contains both a request for
injunctive relief and a legal claim that would ordinarily be tried before a jury, a court must
allow a jury to hear the legal claim before ruling on the question of permanent injunctive
relief.
Clearly, Ms. Turner has a right to a jury trial for her claims of abuse of process
and retaliatory discharge. In the event the court does not again grant a preliminary
injunction, her claims should be heard a soon as practicable in a jury trial. If the court does
again grant the hospital's preliminary injunction, Ms. Turner is entitled to try the merits of
her counterclaim prior to the permanent injunction being resolved.
Rule 65 was amended and completely rewritten in 1998. The
pre-1998 rule did nothing more than state that the former
practice regarding preliminary injunctions shall be followed.
The comprehensive version of Rule 65 that was adopted in 1998
was taken verbatim from its federal counterpart. The new
version of Rule 65, to some extent, conflicts with prior practice.
To the extent that procedural statute and case law conflict with
new Rule 65, the rule should govern.
Franklin D. Cleckley, Robin J. Davis & Louis J. Palmer, Litigation Handbook on West
Virginia Rules of Civil Procedure 1019 (2002).
Under Rule 65(b) a temporary restraining order differs from a
preliminary injunction, thought both serve the same purpose of
maintaining the status quo. A temporary restraining order is
generally limited in duration to 10 days, whereas a preliminary
injunction generally remains until a final determination on the
merits of the action. A temporary restraining order may be
obtained ex parte, but under Rule 65(a)(1) a preliminary
injunction cannot be obtained without notice.
.
Franklin D. Cleckley, Robin J. Davis & Louis J. Palmer, Litigation Handbook on West
Virginia Rules of Civil Procedure 1028 (2002).