Franklin D. Cleckley, Esq.
Morgantown, West Virginia
Michael W. McGuane, Esq.
Thomas C. Schultz, Esq.
Wheeling West Virginia
Attorneys for the Appellee
Carl N. Frankovitch, Esq.
Mark A. Colantonio, Esq.
Frankovitch & Anetakis
Weirton, West Virginia
Attorneys for the Appellant
JUSTICE NEELY delivered the Opinion of the Court.
1. "One who by extreme or outrageous conduct
intentionally or recklessly causes severe emotional distress to
another is subject to liability for such emotional distress, and if
bodily harm to the other results from it, for bodily harm."
Syllabus pt. 6, Harless v. First National Bank in Fairmont, 169 W.
Va. 673, 289 S.E.2d 692 (1982).
2. The prevailing rule in distinguishing a wrongful
discharge claim from an outrage claim is this: when the employee's
distress results from the fact of his discharge -- e.g., the
embarrassment and financial loss stemming from the plaintiff's
firing -- rather than from any improper conduct on the part of the
employer in effecting the discharge, then no claim for intentional
infliction of emotional distress can attach. When, however, the
employee's distress results from the outrageous manner by which the
employer effected the discharge, the employee may recover under the
tort of outrage. In other words, the wrongful discharge action
depends solely on the validity of the employer's motivation or
reason for the discharge. Therefore, any other conduct that
surrounds the dismissal must be weighed to determine whether the
employer's manner of effecting the discharge was outrageous.
3. Conduct, although it would otherwise be extreme and
outrageous, may be privileged under the circumstances. The actor
is never liable when he has done no more than to insist upon his
legal rights in a permissible way, even though he is well aware
that such insistence is certain to cause emotional distress.
4. Qualified privileges are based upon the public
policy that true information be given whenever it is reasonably
necessary for the protection of one's own interests, the interests
of third persons or certain interests of the public. A qualified
privilege exists when a person publishes a statement in good faith
about a subject in which he has an interest or duty and limits the
publication of the statement to those persons who have a legitimate
interest in the subject matter; however, a bad motive will defeat
a qualified privilege defense.
5. A defendant's conduct is subject to a qualified
privilege when he acts to protect or advance his own legitimate
interests, the legitimate interests of others or the legitimate
interests of the public.
6. "'The purpose of the words 'leave [to amend] shall
be freely given when justice so requires' in Rule 15(a)... is to
secure an adjudication on the merits of the controversy as would be
secured under identical factual situations in the absence of procedural impediments; therefore, motions to amend should always
be granted under Rule 15 when: (1) the amendment permits
presentation of the merits of the action; (2) the adverse party is
not prejudiced by the sudden assertion of the subject of the
amendment; and (3) the adverse party can be given ample opportunity
to meet the issue.' Syllabus point 3, Rosier v. Garron, Inc., 156
W. Va. 861, 199 S.E.2d 50 (1973)." Syllabus, Bennett v. Owens, 180
W. Va. 641, 378 S.E.2d 850 (1989).
7. Pursuant to Rule 15, W.Va.R.C.P., amendments relate
back when the cause of action sought to be added grows out of the
specified conduct of the defendant that gave rise to the original
cause of action. If, however, the supplemental pleading creates an
entirely new cause of action based on facts different from those in
the original complaint, the amended pleading will not relate back
for statute of limitations purposes.
8. In permitting recovery for emotional distress without proof of physical trauma when the distress arises out of the extreme and outrageous conduct intentionally caused by the defendant, damages awarded for the tort of outrageous conduct are essentially punitive damages. Therefore, in many cases emotional distress damages serve the policy of deterrence that also underlies punitive damages.
Neely, J.:
This is an appeal from a jury verdict and judgment in the
Circuit Court of Brooke County against Weirton Steel Corporation
["Weirton Steel"] in the amount of $500,000 for the tort of outrage
and intentional infliction of emotional distress. The judgment was
based upon the circumstances surrounding an investigation by
Weirton Steel into alleged improprieties on the part of the
plaintiff below, Andrew P. Dzinglski, while he worked as a
management employee at Weirton Steel in 1984.
Mr. Dzinglski had worked at National Steel Corporation
for 25 years when National Steel became Weirton Steel through an
Employee Stock Ownership Plan ["ESOP"] in January 1984. Under the
ESOP, all ownership of Weirton Steel was vested in its employees,
who took substantial reductions in pay and benefits in exchange for
company stock.
In the course of the negotiations surrounding the
creation of the ESOP, the Independent Steelworkers Union, which
represented company employees, related to management several cost-
saving measures the Union would seek to implement should the ESOP
be concluded successfully. These measures comprehended the removal
of both management employees deemed detrimental to the new ESOP
company as well as the elimination of various outside contractors whose services, in the Union's opinion, could be performed less
expensively by Weirton Steel employees.
Accordingly, upon completion of the ESOP in January 1984,
Valley Systems, Inc., an industrial cleaning company that had
performed various cleaning jobs at Weirton Steel's facilities, was
discontinued as an outside contractor, Weirton Steel opting to use
its own employees for the same tasks. At about the same time,
Richard McKittrick, Weirton Steel's General Supervisor of Plant
Security, received a series of anonymous telephone calls
implicating the plaintiff below, Mr. Dzinglski, in taking kickbacks
from Valley Systems. Mr. Dzinglski, as general foreman of the
Strip Steel labor gang, had had daily dealings with Valley Systems,
approving invoices for work performed and purchases made by Valley
Systems.
Eventually, the anonymous caller identified himself as
Tim Lawson, a salaried foreman who had worked under Mr. Dzinglski
in the Strip Steel Department. According to Mr. Lawson, while
Weirton Steel's contract with Valley Systems required Weirton Steel
to pay an hourly charge for laborers, Mr. Dzinglski frequently
approved payment for salaried supervisory employees who performed
no actual work at Weirton Steel. Mr. Lawson also accused Mr.
Dzinglski of accepting gratuities in the form of food, fixtures,
meals and travel from Valley Systems and of allowing Valley Systems to use Weirton Steel's own supplies and equipment to perform work.
To corroborate these charges, Mr. Lawson named two former Valley
Systems employees, Charles Fraizer and William Baxter.
Mr. McKittrick thereupon met with Mr. Lawson and William
Doepken, Weirton Steel's Vice President for Legal and Public
Affairs. Having been apprised of Mr. Lawson's accusations, Mr.
Doepken deemed the charges against Mr. Dzinglski sufficiently
serious to warrant an investigation. Mr. Doepken was appointed to
head the investigation.
When, in late May 1984, Mr. Doepken and Mr. McKitrick
confronted Mr. Dzinglski with the substance of Mr. Lawson's
allegations, Mr. Dzinglski denied any wrongdoing. Mr. Doepken then
informed Mr. Dzinglski that Weirton Steel had decided to suspend
Mr. Dzinglski with pay while the charges were investigated. Mr.
Dzinglski's suspension was consistent with the Weirton Steel policy
that whenever allegations were raised about management employees,
the employee would be suspended with pay during the investigation.
As part of the investigation, Weirton Steel's internal
audit department combed through Weirton Steel's own records in
order to probe the charges of overbilling and phantom employees.
Weirton Steel staunchly maintains that no one, other than those persons directly involved in the investigation, was informed by
Weirton Steel of Mr. Lawson's accusations.
Mr. McKitrick interviewed Mr. Baxter and Mr. Frazier, the
Valley Systems employees identified by Mr. Lawson as corroborative
witnesses, taking notes of his interviews for the preparation of
internal memoranda. According to Mr. McKitrick, these memoranda
were routed to only four people: Mr. Doepken, Robert Loughhead,
president of Weirton Steel and Mr. McKitrick's immediate
supervisors, William Wetzel and Alan Moran.
With regard to gratuities allegedly taken by Mr.
Dzinglski from Valley Systems, Mr. Baxter, general superintendent
and office manager at Valley Systems, testified that on
instructions from the CEO and owner of Valley Systems, Eugene R.
Valentine, Mr. Baxter: (1) picked up an order of 50 pounds of bacon
and took it to Mr. Dzinglski; (2) picked up a bathroom vanity and
delivered it to Mrs. Dzinglski; (3) picked up bolt cutters and
delivered them to Mr. Dzinglski for the purpose of cleaning out
lockers of former Weirton employees; (4) purchased a camera for Mr.
Dzinglski and delivered it to Mr. Dzinglski; (5) doctored invoices
to cover the cost of repairs for a Valley System Kubota machine
damaged at the Weirton Steel mill by Weirton Steel; (6)
periodically took different Weirton employees to lunch on Valley
System's tab; and (7) on one occasion provided Mr. Dzinglski access to a motel room at a local Holiday Inn paid for by Valley Systems.
Mr. Baxter also testified that Mr. Dzinglski allowed Valley Systems
to use supplies from Weirton Steel's storeroom in the performance
of their jobs.
Mr. Fraizer, who worked as a supervisor and performed
various administrative duties at Valley Systems, stated that on
instructions from Mr. Valentine, Mr. Fraizer delivered a camera to
Mr. Dzinglski. Mr. Fraizer also revealed that Valley Systems
periodically took Weirton Steel storeroom supplies and used them in
the performance of their jobs. According to Mr. Frazier, Mr.
Valentine occasionally took Mr. Dzinglski out to lunch.
Mr. Valentine did not deny giving various gratuities to
Mr. Dzinglski, including steaks, 50 pounds of bacon, various meals
and cases of wine and beer, but claimed that it was common business
practice for a subcontractor to give such gifts to the contractor
to maintain good relations. And although admitting he purchased a
camera for Mr. Dzinglski, Mr. Valentine maintained that the camera
was for work-related purposes only. As for the bathroom vanity,
Mr. Valentine contended he bought it for the purpose of remodelling
the bathroom in the trailer that Valley Systems used as an office
on the Weirton premises.
In July 1984, Mr. Doepken met with Mr. Dzinglski and
reviewed the substance of all allegations against Mr. Dzinglski.
Mr. Dzinglski flatly denied any wrongdoing. Although some of the
allegations made by Mr. Lawson had been confirmed by Mr. Baxter and
Mr. Fraizer and some evidence of irregularities in Valley Systems
billing was uncovered by Weirton Steel's auditors, the accusations
levelled by Mr. Lawson were never fully substantiated nor was there
evidence of criminal wrongdoing by Mr. Dzinglski. Nonetheless, the
mere allegations of improprieties against a management employee
raised concerns on the part of Weirton Steel about Mr. Dzinglski's
ability to function effectively as a labor manager. On 31 October
1984, Mr. Dzinglski was discharged honorably.
Mr. Dzinglski filed an initial complaint in October 1985,
alleging he had been wrongfully discharged from his employment with
Weirton Steel. Mr. Dzinglski's amended complaint, filed in October
1987, asserted claims of: (1) wrongful discharge; (2) promissory
estoppel; (3) breach of duty of good faith and fair dealing; (4)
defamation; (5) negligent investigation; (6) violation of public
policy; and (7) punitive damages. At the 13 May 1992 pretrial
conference, two weeks before trial, Mr. Dzinglski asserted a claim
for the tort of outrage or intentional infliction of emotional
distress.
The trial court granted Weirton Steel's motion for
directed verdict on Mr. Dzinglski's claims of wrongful discharge,
promissory estoppel and good faith and fair dealing, finding, as a
matter of law, that Mr. Dzinglski was an at-will employee and no
public policy had been violated by his discharge. The court also
granted Weirton Steel's motion for directed verdict on Mr.
Dzinglski's claims of defamation, premised on the allegedly untrue
and defamatory allegations in Mr. McKitrick's memoranda and the
allegedly resultant rumors circulating in the mill that smeared and
defamed Mr. Dzinglski.
In addition, the court granted Weirton Steel's motion for
directed verdict on Mr. Dzinglski's claim of negligent
investigation, finding that, as a matter of law, a qualified
privilege existed as to the internal investigation coordinated by
Weirton Steel and the resulting memoranda and that there was no
evidence of publication beyond the privilege. The court also found
that the defamation claim was barred by the statute of limitations.
The court denied Weirton Steel's motion for directed
verdict on Mr. Dzinglski's claim based on the tort of outrage and
intentional infliction of emotional distress. The jury returned a
verdict for Mr. Dzinglski in the amount of $500,000 compensatory
damages and $150,000 punitive damages. The trial court struck the award of punitive damages in its ruling on Weirton Steel's post-
trial objection to the punitive damages.
Weirton Steel assigns two errors: first, the trial court
erred in failing to direct a verdict, enter judgment n.o.v. or
award a new trial in favor of Weirton Steel on Mr. Dzinglski's
claim for the tort of outrage or intentional infliction of
emotional distress and, second, the trial court erred in allowing
Mr. Dzinglski to amend his complaint to plead a claim for the tort
of outrage or intentional infliction of emotional distress because
this claim was never pled and was barred by the one-year statute of
limitations. In a cross-assignment of error, Mr. Dzinglski argues
that the trial court erred in setting aside Mr. Dzinglski's
punitive damages award. We address these assignments of error in
turn.
Weirton Steel contends that the trial court erred in
failing to direct a verdict in its favor because there was
insufficient evidence as a matter of law that the investigation
into Mr. Dzinglski's alleged improprieties constituted a tort of
outrage. We agree.
We first defined the tort of outrage or intentional
infliction of emotional distress in Syllabus pt. 1, Harless v.
First National Bank in Fairmont, 169 W. Va. 673, 289 S.E.2d 692
(1982):
One who by extreme or outrageous conduct
intentionally or recklessly causes severe
emotional distress to another is subject to
liability for such emotional distress, and if
bodily harm to the other results from it, for
bodily harm.
This definition is patterned after Section 46 of the
Restatement (Second) of Torts which requires that the conduct be
"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." Id.
at 704-05.
Because of its heavy emphasis on the severity of the
defendant's behavior, the tort of outrage is a somewhat nebulous
cause of action.See footnote 1 Unlike most intentional torts, the relative ease
of establishing the victim's injury is not counterbalanced by any
specific definition of the behavior that will lead to liability. Instead, liability for intentional infliction of emotional distress
arises whenever the defendant's conduct is found to be outrageous.
See Daniel Givelber, The Right to Minimum Social Decency and the
Limits of Evenhandedness: Intentional Infliction of Emotional
Distress by Outrageous Conduct, 82 Colum. L. Rev. 42, 51 (1982).
The Restatement's description of the prohibited conduct, provides
very little guidance to the potential defendant:
Liability has been found only where the
conduct has been 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.
Despite their failure to define outrageousness clearly,
the Restatement's comments do suggest the contexts in which a suit
for intentional infliction of emotional distress is most
appropriate. Comment e states: "The extreme and outrageous
character of the conduct may arise from an abuse by the actor of a
position, or a relation with the other, which gives him actual or
apparent authority over the other, or power to affect his
interests." Even though the comments and illustrations in the
Restatement do not specifically mention the employer-employee
relationship, commentators and courts alike have cited comment e to
justify use of this tort in the employment at will context.
Givelber, supra at 43; Alcorn v. Anbro Eng'g, 2 Cal.3d 493, 468 P.2d 216, 86 Cal.Rptr. 88 (1970); Contreras v. Crown Zellerbach
Corp., 88 Wash.2d 735, 565 P.2d 1173 (1977).
There are two conflicting lines of authority in cases
involving a discharged at-will employee alleging the tort of
outrage against his employer. Some courts refuse to weigh the
inherently coercive element of an employer's firing of an at will
employee, commonly citing comment g of the Restatement which
states: "The actor is never liable . . . where he has done no more
than to insist upon his legal rights in a permissible way, even
though he is well aware that such insistence is certain to cause
emotional distress." See e.g., Novosel v. Sears, Roebuck & Co.,
495 F. Supp. 344 (E.D.Mich. 1980); Brooks v. Carolina Tel. & Tel.,
56 N.C. App. 801, 290 S.E.2d 370 (1982). This language has led
these courts to conclude that the employer could not be liable for
intentional infliction of emotional distress because by firing the
employee the employer did no more than exercise his legal rights.
Other courts, however, reject this argument, maintaining that the
tort of outrage also can arise from conduct surrounding the
discharge. See, e.g., M.B.M. Co. v. Counce, 596 S.W.2d 681, 688
(Ark. 1980); Agarwal v. Johnson, 25 Cal.3d 932, 603 P.2d 58, 160
Cal.Rptr. 141 (1979).
Although in Harless, 169 W. Va. at 696, 289 S.E.2d at
705, we conceded that there may be situations where an employee's termination cannot be fitted into a retaliatory discharge cause of
action yet a cause of action will fall within the tort of
outrageous conduct as against his employer, we found a claim for
the tort of outrageous conduct essentially duplicative of a claim
for retaliatory discharge. In the case before us now, the task
falls upon us to delineate more precisely the conduct that is
relevant in a wrongful discharge action, the primary protection for
at will employees, and the conduct that underlies the tort of
outrage.
In Farmer v. Carpenters, 430 U.S. 290 (1977), the United
States Supreme Court recognized that two separate actions could
arise from an employment discrimination claim: the first action,
for wrongful discharge, involved the employment discrimination
itself-- in that case, the firing of the plaintiff for dissident
intra-union political activities; the second, for intentional
infliction of emotional distress, involved the outrageous manner in
which the discrimination, to wit, the discharge, was implemented--
frequent public ridicule, incessant verbal abuse, threats and
intimidations. The Farmer Court concluded that these separate
causes of action could coexist and that recovery was possible for
each separately.
In Magnuson v. Burlington Northern, Inc., 576 F.2d 1367
(9th Cir. 1978), cert. denied, 439 U.S. 930 (1978), a discharged employee, claiming that he was the victim of a conspiracy among
railroad personnel to blame him for a collision and that the
conspiracy was effected through abuse of the railroad's
investigatory process, attempted to avoid the limited wrongful
discharge remedies under the Railway Labor Act by basing his suit
on intentional infliction of emotional distress. In the same vein
as Farmer, supra, the court, however, found that no intentional
infliction of emotional distress claim would lie because the
plaintiff's emotional distress resulted solely from his discharge
itself, rather than from the outrageous manner by which the
discharge was effected.
In Viestenz v. Fleming Cos., 681 F.2d 699 (10th Cir.
1982), cert. denied, 459 U.S. 972 (1982), an employee, alleging
that he was pressured into admitting that he stole merchandise from
the employer's store and then was discharged for that admission,
brought actions for wrongful discharge and intentional infliction
of emotional distress against his employer. The court, reasoning
that the employee's harm resulted from the fact of his discharge
rather than from any improper conduct by the employer, refused to
allow the plaintiff to recover under the tort of outrage.
In essence, then, the prevailing rule in distinguishing
a wrongful discharge claim from an outrage claim is this: when the
employee's distress results from the fact of his discharge -- e.g., the embarrassment and financial loss stemming from the plaintiff's
firing -- rather than from any improper conduct on the part of the
employer in effecting the discharge, then no claim for intentional
infliction of emotional distress can attach. When, however, the
employee's distress results from the outrageous manner by which the
employer effected the discharge, the employee may recover under the
tort of outrage. In other words, the wrongful discharge action
depends solely on the validity of the employer's motivation or
reason for the discharge. Therefore, any other conduct which
surrounds the dismissal must be weighed to determine whether the
employer's manner of effecting the discharge was outrageous.
This Court has yet to decide a case where a defendant's
conduct was found to be sufficiently outrageous to satisfy the
requirements for the tort of outrage or intentional infliction of
emotional distress. In an employment context, shortly after the
plaintiff's husband in Cook v. Hecks, Inc., 176 W. Va. 368, 342
S.E.2d 453 (1986) was discharged from his position as president of
a subsidiary company, the plaintiff, who worked as a salesperson in
the same company, also was fired. The parent company claimed that
the plaintiff's discharge arose from her and her husband's
association with a competitor of the parent company. This Court,
quoting the Restatement test articulated in Harless, determined that the manner in which the plaintiff was fired (which the
plaintiff contended caused her humiliation, embarrassment and
health deterioration) did not constitute outrageous conduct.
Likewise, in Harless, the plaintiff was demoted from his
position as an at will office manager in a bank when he reported
the bank was overcharging customers on loans. Although the
plaintiff was reinstated to his former position when the illegal
practices were substantiated, the bank summarily discharged the
plaintiff for allegedly sequestering confidential bank files,
giving false and misleading information to regulatory officials,
and failing to get along with other bank employees. This Court
determined the conduct of the Bank did not reach the level of
outrageous conduct that would support a claim for the tort of
outrage. However, in Harless, we let stand the claim for unlawful
discharge based on retaliation for conduct that furthers public
policy, i.e., encouraging honesty among bankers.
The facts of the case before us do not rise to the level
of conduct necessary to satisfy the tort of outrage. When Mr.
Lawson apprised Weirton Steel of improprieties by one of its
management employees, Weirton Steel did what it is the right and
indeed the obligation of any employer to do: it investigated the
allegations of impropriety. The actions taken by Weirton Steel in
its investigation were wholly appropriate under the circumstances: (1) an internal audit and interviewing of Valley Systems employees;
(2) suspension of Mr. Dzinglski, with pay, pending the
investigation; (3) preparation of internal memoranda setting forth
the results of interviews and the internal audit; and (4) private
meetings with Mr. Dzinglski apprising him of the allegations made
against him and affording him the opportunity to affirm or deny
such allegations.
It is difficult to see how these actions, all of which
were conducted in the context of an internal investigation into
company mismanagement could conceivably constitute outrageous
conduct. We find that the manner by which Weirton Steel effected
Mr. Dzinglski's discharge was far from outrageous and that Weirton
Steel's motivations for the discharge were proper. Although we are
not unsympathetic to the distress doubtless suffered by Mr.
Dzinglski, we find that the distress stemmed from the discharge
itself and not from the investigatory process coincident with the
discharge. Therefore, the trial court erred in finding that
Weirton Steel's investigation into Mr. Dzinglski's alleged
improprieties constituted the tort of outrage.
Weirton Steel also argues that the trial court erred in
denying Weirton Steel's motion for a directed verdict on Mr. Dzinglski's claim for the tort of outrage because of the lower
court's finding that, as a matter of law, Weirton Steel's
investigation was subject to a qualified privilege. We agree.
Section 46 of the Restatement (Second) of Torts
recognizes that a privilege may bar the right to recover under the
tort of outrage. Comment g to Section 46 provides:
[C]onduct, although it would otherwise be
extreme and outrageous, may be privileged
under the circumstances. The actor is never
liable, for example, where he has done no more
than to insist upon his legal rights in a
permissible way, even though he is well aware
that such instance is certain to cause
emotional distress.
This Court has recognized the existence of a qualified
privilege as a defense to a tort claim. In Crump v. Beckley
Newspapers, 173 W. Va. 699, 320 S.E.2d 70 (1984), we explained:
Qualified privileges are based upon a
public policy that it is essential that true
information be given whenever it is reasonably
necessary for the protection of one's own
interests, the interests of third persons or
certain interests of the public. . . . A
qualified privilege exists when a person
publishes a statement in good faith about a
subject in which he has an interest or duty
and limits the publication of the statement to
those persons who have a legitimate interest
in the subject matter... [A] bad motive will
defeat a qualified privilege defense . . .
In essence, then, a defendant's conduct is subject to a qualified
privilege when he acts to protect or advance his own legitimate
interests, the legitimate interests of others or the legitimate
interests of the public. Crump, 173 W. Va. at __, 320 S.E.2d at
78-79.
In the present case, the trial court found, as a matter
of law, that Weirton Steel's investigation into Mr. Dzinglski's
alleged improprieties was subject to a qualified privilege. The
court also found, as a matter of law, that Weirton Steel did not
publish the findings of its investigation beyond the scope of the
privilege and therefore did not defame Mr. Dzinglski. Such a
finding is consistent with the Crump proposition that a qualified
privilege attaches to actions designed to protect the defendant's
legitimate interests, such as, in this case, when a company is
informed that one of its own management employees may be engaged in
improper conduct.
We therefore find that the trial court made no error in
finding that a qualified privilege attached to the communications
made during the investigation and that these communications
concerning the investigation did not proceed beyond the scope of
the privilege. As a matter of law, then, Weirton Steel could not
have been guilty of outrageous conduct by its investigation into
Mr. Dzinglski's alleged improprieties.
Although our reversal of the lower court's judgment makes
it unnecessary to address the two other errors assigned by Weirton
Steel and the one assigned by Mr. Dzinglski, we find the issues
raised sufficiently important that we shall nonetheless decide them
to provide for the Bar a clarification of the underlying law.
Weirton Steel contends that the lower court erred in
permitting Mr. Dzinglski to amend his complaint in order to assert
a claim for intentional infliction of emotional distress two weeks
before trial and six and one-half years after the action was begun
and that it was unfairly prejudiced by the amendment. We disagree.
Rule 15, W.V.R.C.P., which governs amended and
supplemental pleadings, provides that "leave [to amend pleadings]
shall be freely given when justice so requires." As we stated in
the syllabus of Bennett v. Owens, 180 W. Va. 641, 378 S.E.2d 850
(1989):
The purpose of the words 'leave [to
amend] shall be freely given when justice so
requires' in Rule 15(a)... is to secure an
adjudication on the merits of the controversy
as would be secured under identical factual situations in the absence of procedural
impediments; therefore, motions to amend
should always be granted under Rule 15 when:
(1) the amendment permits presentation of the
merits of the action; (2) the adverse party is
not prejudiced by the sudden assertion of the
subject of the amendment; and (3) the adverse
party can be given ample opportunity to meet
the issue.
In this case, the outrage claim arose from the same set
of facts as those in the original complaint-- Weirton Steel's
conduct surrounding the investigation into Mr. Dzinglski's alleged
improprieties. Furthermore, notwithstanding the eleventh-hour
insertion of the outrage claim, Weirton Steel never moved for a
continuance in order to conduct discovery on the claim. See State
v. Barker, 169 W. Va. 620, 289 S.E.2d 702 (1982) (even if claim of
surprise were proper, the appellant's failure to move for a
continuance waived his right to one.); Martin v. Smith, __ W. Va.
__, 438 S.E.2d 318 (1993) (even if unanticipated expert testimony
did in fact prejudice defendant's case, defendant could have easily
moved for a continuance in order to secure a comparable expert
witness). "Unless the amendment of the pleading will prejudice the
opposing party by not affording him an opportunity to meet the
issue, it should be allowed so as to permit an adjudication of the
case on its merits." Employers Fire Ins. Co. v. Biser, 161 W. Va.
493, 497, 242 S.E.2d 708, __ (1978).
Accordingly, we hold that the trial court made no error
in permitting Mr. Dzinglski to amend his complaint.
Weirton Steel further contends that the trial court erred
in failing to find that Mr. Dzinglski's claim of outrage was barred
by the statute of limitations. We disagree.
This Court has adopted the rule followed by federal
courts under identical provisions of Rule 15, F.R.C.P.: amendments
relate back to when the cause of action sought to be added "grow[s]
out of the specified conduct of the defendant which gave rise to
the original cause of action." Roberts v. Wagner Chevrolet-Olds,
Inc., 163 W. Va. 559, 563, 258 S.E.2d 901, 903 (1979) (citing 3
Moore's Federal Practice §15.15[3]. If, however, "the supplemental
pleading creates an entirely new cause of action based on facts
different from those in the original complaint, the amended
pleading will not relate back for statute of limitations purposes."
Jones v. Jones, 184 W. Va. 297, 301, 400 S.E.2d 305, __ (1990).
In this case, there were no new facts alleged when the
outrage claim was added to the amended pleading. The entire action
centered from the start in Weirton Steel's actions against Mr.
Dzinglski in its investigation into his alleged improprieties. Therefore, we find the outrage claim relates back to the original
cause of action and is not barred by the statute of limitations.
As a cross-assignment of error, Mr. Dzinglski asserts
that the trial court erred in denying Mr. Dzinglski the punitive
damages awarded by the jury after the jury, in answering a special
interrogatory, found that Weirton Steel's actions were wanton,
oppressive, and reckless, with a conscious disregard for Mr.
Dzinglski's rights. We disagree.
In Mace v. Charleston Area Medical Center Foundation,
Inc., 188 W. Va. 57, 422 S.E.2d 624, 633 (1992), we expressed our
concern that in cases where damages for emotional distress are
sought, "a claim for emotional distress without any physical trauma
may permit a jury to have a rather open-hand in the assessment of
damages." In Wells v. Smith, 171 W. Va. 97, 297 S.E.2d 872 (1982),
we recognized that in permitting recovery for emotional distress
without proof of physical trauma where the distress arises out of
the extreme and outrageous conduct intentionally caused by the
defendant, damages awarded for the tort of outrageous conduct are
essentially punitive damages. Therefore, in many cases emotional
distress damages serve the policy of deterrence that also underlies
punitive damages.
By allowing the jury to consider punitive damages, the
trial court permitted the jury to stack punitive damages upon
punitive damages, thereby effectively imposing two punitive damage
verdicts against Weirton Steel for the same acts. The trial
court's decision to dismiss Mr. Dzinglski's claim for punitive
damages correctly avoided this double recovery.
Accordingly, for the reasons stated above, we find that
the trial court erred in finding that Weirton Steel's conduct rose
to the level required for the tort of outrage. We therefore
reverse.
Reversed.