Opinion ID: 157142
Heading Depth: 3
Heading Rank: 1

Heading: Other Employees’ Complaints

Text: The district court admitted, over hearsay objections, testimony of two IBP supervisors, Duong and Bolton, that they heard complaints by injured employees to the effect that they were harassed and mistreated following their injuries or claims for medical benefits. III App. at 583, 667, 670. IBP argues this evidence was hearsay, impermissible character evidence and irrelevant. We reject IBP’s contention that mistreatment of other employees in similar circumstances is irrelevant and prejudicial. Because an employer will rarely admit retaliatory motives in firing an employee, retaliatory discharge cases generally must be proven by circumstantial rather than direct evidence. See Chaparro v. IBP, Inc., 873 F. Supp. 1465, 1472 (D. Kan. 1995). We also reject IBP’s assertion that other employee’s complaints constitute impermissible character evidence. Evidence of prior acts is generally not admissible to prove the character of a person or to show the person acted in conformity therewith. Fed. R. Evid. 404(b). However, character evidence is admissible in civil trials to show motive or intent. Id.; see also Spulak v. K Mart Corp., 894 F.2d 1150, 1156 (10th Cir. 1990). The evidence here was offered to show that IBP had the motive or intent to mistreat employees following their work-related injuries and we find no error in its admission. -7- The hearsay issue is more troublesome. Evidence is hearsay if it contains an out-of-court statement offered to prove the truth of the matter asserted therein. Fed. R. Evid. 801(c). An out-of-court statement is not hearsay under the Federal Rules of Evidence if it is offered to show its effect on the hearer of the statement. United States v. Nieto, 60 F.3d 1464, 1467-68 (10th Cir. 1995). To determine whether other employees’ complaints constitute hearsay, we must discern why the evidence is being offered. At trial, the district court admitted the evidence despite stating the evidence was “probably hearsay.” III App. at 583-85. In its post-trial order denying IBP’s motion for a new trial, the district court ruled that the evidence of the employees’ complaints that they were harassed and mistreated following injuries or claims for medical benefits was not hearsay because it was being offered to show that the IBP personnel directors heard complaints. I App. at 171. The judge’s order stated that testimony by a witness that he heard or received complaints is “not hearsay, in that it is not a statement made by an out-of-court declarant. Fed. R. Evid. 801(c).” I App. at 171. We cannot agree. We feel it is clear that the “complaints” which were admitted over hearsay objections were offered not to prove the mere hearing or making of them; their purpose was to establish the proposition in the jury’s mind that IBP in fact engaged in a pattern or practice of mistreating its employees after work-related injuries. As such, the out-of-court statements were inadmissible hearsay under Rule 801(c). See Winans v. Rockwell Int’l Corp., 705 F.2d 1449, 1456-57 (5th Cir. 1983); Cornelius v. Hondo, Inc., 843 F. Supp. 1243, 1246 (N.D. Ill. 1994). -8- The district court stated in its post-trial order that IBP did not cite any particular statement which IBP believes to be hearsay. The district court then ruled that a failure to specify testimony claimed to have been incorrectly admitted precludes the court from considering any claimed error in its admission. Arteiro v. Coca Cola Bottling, Midwest, Inc., 47 F.R.D. 186, 189 (D. Minn. 1969). However, the record is clear that at trial IBP made a hearsay objection to specific testimony of IBP personnel, Duong and Bolton, on the hearing of employee complaints. III App. at 583-585. We are convinced the evidence was inadmissible hearsay. The remaining question is whether the error in admitting the hearsay evidence was such as to require a new trial. A new trial is appropriate only where the claimed error substantially, and adversely, affects the rights of a party. Hinds, 988 F.2d at 1049. IBP argues that it was substantially prejudiced by the testimony, and we agree. Our record shows considerable use of the hearsay evidence of complaints during the taking of evidence and during argument. III App. at 588, 667, 669, 670; IV App. at 1031.