Opinion ID: 606331
Heading Depth: 3
Heading Rank: 1

Heading: Claims Against AT & T

Text: 11 Under North Carolina law, an employer may be held liable under the principles of respondeat superior for the tortious acts of its agents in only three situations: (1) when the agent's actions are expressly authorized by the principal; (2) when the action is committed within the scope of the agent's employment and in furtherance of the employer's business; or (3) when the agent's actions are ratified by the principal. Salley v. Petrolane, Inc., 764 F.Supp. 61, 63 (W.D.N.C.1991); Hogan v. Forsyth Country Club Co., 79 N.C.App. 483, 340 S.E.2d 116, 121 (1986). 12 First, Jackson has not alleged that AT & T expressly authorized Kimel's actions. In fact, AT & T had a written policy prohibiting any type of sexual harassment. With regard to the second situation, North Carolina courts have consistently held that sexual harassment and similar conduct are not in furtherance of the employer's business; rather, in most cases, the conduct is deemed to be for the perpetrator's own licentious purposes. Salley, 764 F.Supp. at 63; Hogan, 340 S.E.2d at 122. In addition, nothing in Jackson's allegations indicates that Kimel's alleged conduct was committed in furtherance of AT & T's business. Jackson, therefore, is left with only the third path for holding AT & T liable for Kimel's alleged tortious activities: demonstrating that AT & T ratified Kimel's conduct. To establish ratification, Jackson is required to show that AT & T had knowledge of all material facts and circumstances relative to the wrongful act, and that the employer, by words or conduct, show[ed] an intention to ratify the act. Hogan, 340 S.E.2d at 122. 13 AT & T argues that Jackson has not put forward sufficient evidence to survive summary judgment on the issue of whether AT & T knew or should have known that Kimel was coercing Jackson into a sexual relationship. We agree. Jackson has alleged that other employees knew of her relationship with Kimel and that Ruby Bailey, her supervisor but also a subordinate to Kimel, both actively encouraged the relationship and was aware that Jackson sometimes resisted Kimel's advances. Neither Jackson nor Bailey, however, ever told any other company official about Kimel's conduct. In our view, knowledge that Jackson's relationship with Kimel was coerced rather than consensual is a material fact relative to the wrongful acts alleged. Id. That other employees were aware of their relationship and Bailey knew Jackson was not always receptive to Kimel's advances, do not create an inference sufficient to raise a genuine issue as to whether AT & T knew or should have known that she was being coerced into a sexual relationship with Kimel. Matsushita, 475 U.S. at 586-87, 106 S.Ct. at 1356 (an issue of fact must be genuine to preclude the grant of summary judgment and the non-moving party must do more than 'show that there is some metaphysical doubt as to the material facts'). 14 Jackson contends that under Davis v. United States Steel Corp., 779 F.2d 209 (4th Cir.1985), all she has to show to survive summary judgment is that AT & T had any knowledge of Kimel's actions. In Davis, we reversed the district court's application of respondeat superior principles and found that summary judgment was not appropriate. Id. at 212. We do not agree that Davis stands for the proposition that evidence of any knowledge by AT & T is sufficient to establish respondeat superior liability or that Davis is analogous to Jackson's situation. 15 Davis applied South Carolina law to a situation in which the plaintiff had complained to company officials about her supervisor, Bryan, and his harassing behavior. The plaintiff specifically alleged that Bryan's supervisor witnessed several harassing incidents and overheard Bryan's harassing remarks to her. Bryan's supervisor admitted that he witnessed Bryan pat the plaintiff on her posterior, but the supervisor simply took it to be an innocent friendly gesture. Id. In light of these circumstances, we held that a jury could find that the company was liable under the doctrine of respondeat superior because the matter could be said to have progressed ... to behavior known to United States Steel and condoned by it. Id. at 211. 16 Jackson has alleged that some management employees, and therefore AT & T, knew that she had a sexual relationship with Kimel. The issue with regard to AT & T's liability, however, is whether this knowledge is enough to permit a jury to conclude that AT & T had a responsibility flowing from [its role as employer] to take necessary corrective action. Id. at 212. Jackson has not shown that AT & T had any knowledge that her relationship with Kimel was anything other than a consensual affair. On the contrary, Jackson herself admits that no one with AT & T knew the nature of their relationship until December 1986, after Kimel had retired and she was on disability leave. Jackson never complained to any AT & T official about Kimel's actions and she can point to no one in AT & T's management who knew or should have known that her relationship with Kimel was anything other than consensual. Though sexual harassment in the work place is clearly unlawful, and employers may be held liable if they fail to take prompt remedial actions to stop any such behavior, we do not believe that employers have a duty to investigate every office romance occurring outside the work place to insure that coercion is not a factor. Something more than mere knowledge by AT & T of the affair itself must be shown in order to establish ratification under respondeat superior principles; Jackson has not shown such knowledge in this case. Therefore, we affirm the grant of summary judgment to AT & T on Jackson's claim for intentional infliction of emotional distress. 17 We also affirm the grant of summary judgment on Jackson's claim against AT & T for negligent retention. In North Carolina, all cases which have allowed claims for negligent retention involved well-known and certain, ongoing foreseeable harms occurring on the employer's premises while the employee was on duty. Braswell v. Braswell, 330 N.C. 363, 410 S.E.2d 897, 903 (1991). In Braswell, for example, summary judgment was granted to the employer on the negligent retention and supervision claim because the alleged untoward behavior occurred outside the work place and the perpetrator was otherwise known as stable and even-tempered. Id. In contrast, the plaintiffs in Hogan showed that the defendant company retained the harasser in a supervisory position after having actual notice of his proclivity to engage in sexually offensive conduct. 340 S.E.2d at 124. This showing in Hogan was sufficient for plaintiff to survive summary judgment. Id. 18 Applying the Braswell and Hogan criteria, Jackson's negligent retention claim fails because the extramarital affair between Kimel and Jackson took place outside work premises, Kimel had no history of prior harassment which could have put AT & T on notice, and Jackson has not demonstrated that AT & T had any knowledge of Kimel's unfitness.