Denny Alan Neff v. Wal-Mart Stores East, LP
Denny Alan Neff v. Wal-Mart Stores East, LP
Opinion
STATEMENT OF THE CASE
[1] Appellant-Plaintiff, Denny Alan Neff (Neff), appeals the trial court's summary judgment in favor of Appellee-Defendant, Wal-Mart Stores East, L.P. (Wal-Mart), on Neff's allegations sounding in negligence and tort and derived from his arrest and termination by Wal-Mart.
[2] We affirm.
*669 ISSUES
[3] Neff presents us with six issues on appeal, which we restate as follows:
(1) Whether the trial court properly entered summary judgment for Wal-Mart on Neff's claim for breach of employment contract and wrongful termination when Neff was an employee at-will;
(2) Whether the trial court properly entered summary judgment for Wal-Mart on Neff's claim for false arrest, criminal confinement, tortious confinement, trespass against person, and false imprisonment when Wal-Mart detained Neff pursuant to the Shoplifting Detention Act;
(3) Whether the trial court properly entered summary judgment for Wal-Mart on Neff's claim for negligent infliction of emotional distress;
(4) Whether the trial court properly entered summary judgment for Wal-Mart on Neff's claim for intentional infliction of emotional distress;
(5) Whether the trial court properly entered summary judgment for Wal-Mart on Neff's claim for defamation; and
(6) Whether the trial court properly entered summary judgment for Wal-Mart on Neff's claim for invasion of privacy.
FACTS AND PROCEDURAL HISTORY
[4] In September 2014, Neff worked as a service writer in the tire and lube express department at Wal-Mart, located in Greencastle, Indiana. When he entered his employment on July 25, 2013, Neff had received Wal-Mart's written employee handbook setting forth the company's policies. On September 24, 2014, Neff and service manager Anthony Brackett (Brackett) removed tires, described by Neff as "outdated and deleted," from the service area. (Appellant's App. Vol. III, p. 145). Service manager Travis Wilbur (Wilbur) then authorized the sale of those tires for ten dollars or one dollar each, depending on the tire. The actual retail price of the tires was at least five to ten times the discounted price. Wilbur claimed that assistant manager, Dana Lyday, had approved the discount. Neff, Brackett, and another Wal-Mart associate purchased the tires at the discounted price and they rang up the transactions for each other at the cash register.
[5] The following day, September 25, 2014, Wal-Mart's asset protection manager, Randall Spannuth (Spannuth), received his daily report reflecting any discounts greater than fifty dollars and noticed the steep discounts involved in the tire sale. Investigating the sale more closely, Spannuth pulled the receipts in the system, the electronic journal, and store videos. Based on this information, he identified the cashiers and talked to their managers about the "extremely discounted" price for the tires. (Appellant's App. Vol. III, p. 38). Spannuth concluded "there was an issue" because the "tires were being sold for under what the retail price was," and the "associates were discounting for each other." (Appellant's App. Vol. III, pp. 38-39). Spannuth determined that Neff had not followed Wal-Mart's written Associate Purchase Policy which limits the merchandise its associates may purchase to merchandise "which is available to all Customers/Members." (Appellant's App. Vol. III, p. 177). Furthermore, the policy provides that "[o]nly salaried members of management can authorize the point-of-sale markdown," and "[d]efective or damaged merchandise must have been marked down and offered to the public at a lower price *670 for at least one day before any associate, or salaried member of management, including the Facility Manager, can purchase it." (Appellant's App. Vol. III, pp. 177-78). Pursuant to this policy, neither Neff nor Wilbur had authority to set the discounted price without prior managerial approval. When questioning the store managers, both managers informed Spannuth that they had not authorized the discounts or transactions. Because Spannuth determined that it was not reasonable for Neff to assume that he had properly purchased the tires, Spannuth concluded that Neff had intended to commit a theft of the tires.
[6] At the close of the investigation and after consulting with his supervisor, Spannuth arranged for interviews with Wilbur, Brackett, and Neff. Neff's interview occurred in an office in the back of the store. Following the interviews, Wal-Mart decided to report the three employees to the police for theft. After having been provided with a copy of Wal-Mart's asset protection records, the video surveillance disk, and internal investigation, the police officers spoke with Neff, arrested him, and escorted him to jail. 1 Wal-Mart terminated Neff's employment.
[7] On June 5, 2015, Neff filed a Complaint against Wal-Mart, the City of Greencastle, and the Greencastle police department, in which he asserted thirteen causes of action. On June 26, 2017, the City of Greencastle and the Greencastle Police Department filed a motion for summary judgment which was granted by the trial court on December 7, 2017. Neff did not appeal. Subsequently, on June 20, 2018, the trial court dismissed the City of Greencastle and the Greencastle police department.
[8] On September 14, 2017, Wal-Mart filed its motion for summary judgment, memorandum of law, and designation of evidence. On September 19, 2017, Neff filed his reply to Wal-Mart's motion for summary judgment, together with a designation of evidence. On December 7, 2017, after a hearing, the trial court granted Wal-Mart's motion and entered summary judgment in its favor. On January 2, 2018, Neff filed a motion to correct error, which was deemed denied on February 16, 2018.
[9] Neff now appeals. Additional facts will be provided if necessary.
DISCUSSION AND DECISION
I. Standard of Review
[10] In reviewing a trial court's ruling on summary judgment, this court stands in the shoes of the trial court, applying the same standards in deciding whether to affirm or reverse summary judgment.
First Farmers Bank & Trust Co. v. Whorley
,
II. Wrongful Termination
[11] Neff first contends that the trial court erred when it granted summary judgment in favor of Wal-Mart on his claim of wrongful termination. Neff maintains that "[he], Wal-Mart, [h]ad a [d]eal. Though at Will, Wal-Mart [r]etained a [d]uty of [f]airness." (Appellant's Br. p. 32).
[12] Indiana follows the doctrine of employment at-will, under which employment may be terminated by either party at-will, with or without reason.
Baker v. Tremco Inc
.,
[13] However, as pointed out by Neff, "[i]f an employment contract for an ascertainable term of employment does not exist, an exception to the employment-at-will doctrine may apply."
III. Shoplifting Detention Act
[14] Next, Neff brings a host of allegations arising from his detention by Wal-Mart, to which Wal-Mart defends by relying on the probable cause provision of the Shoplifting Detention Act. Claiming that Wal-Mart had no probable cause to detain him on a suspicion of theft, Neff contends that the trial court erred by issuing summary judgment to Wal-Mart on his claims of false arrest, criminal confinement, tortious confinement, trespass against person, and false imprisonment.
[15] Wal-Mart invoked immunity under the Shoplifting Detention Act, Indiana Code section 35-33-6-2, against Neff's allegations, which provides, in pertinent part, that:
(a) An owner or agent of a store who has probable cause to believe that a theft has occurred or is occurring on or about the store and who has probable cause to believe that a specific person has committed or is committing the theft
(1) may:
(A) Detain the person and request the person to identify himself;
(B) Verify the identification;
*672 (C) Determine whether the person has in his possession unpurchased merchandise taken from the store;
(D) Inform the appropriate law enforcement officers; and
(E) Inform the parents or others interested in the person's welfare, that the person has been detained.
* * * *
(c) The detention must:
(1) Be reasonable and last only for a reasonable time; and
(2) Not extend beyond the arrival of a law enforcement officer or two (2) hours, whichever occurs first.
The Shoplifting Detention Act "permits the merchant's agent to effect a warrantless arrest or detention where the facts and circumstances known to the agent at the time of the arrest would warrant a person of reasonable caution to believe the arrestee has committed or is committing a theft on or about the store."
Dietz v. Finlay Fine Jewelry Corp.
,
[16] At the time of Wal-Mart's detention of Neff, Spannuth had completed his investigation. He had pulled the receipts in the system and viewed the store videos. He had identified the cashiers and spoken with the managers about possible authorization to sell and purchase the steeply discounted tires. Based on this evidence, Spannuth, as Wal-Mart's agent, could reasonably believe that Neff that intentionally sold and purchased the tires at a price less than that approved by Wal-Mart with the intent to deprive Wal-Mart of part of its value. That constitutes probable cause for purposes of the Shoplifting Detention Act.
See
Dietz
,
[17] Turning to the reasonableness of the manner and time of detention by Wal-Mart, the designated evidence established that Neff's interview occurred in an office in the back of the store, out of view of Wal-Mart's customers. Following the interviews, Wal-Mart decided to report the three employees to the police for theft and contacted the local authorities. Neff acknowledged that he was detained at the store for between sixty and eighty minutes, much less than the two-hour timeframe contemplated by the Act. See I.C. 35-33-6-2(c).
[18] Neff now attempts to avoid the immunity awarded to Wal-Mart by the Shoplifting Detention Act by referencing his continued and repeated assertions of innocence and protestations of belief that Wilbur had authorized the sale. However, the relevant issue is not whether Neff committed the theft, but whether Wal-Mart had probable cause to believe that Neff committed theft. Furthermore, "the fact remains that our legislature has determined that a merchant's property rights must be protected, even at the risk of offending people who are ultimately innocent of any wrongdoing. The boundaries within which merchants must conduct themselves during such detainments and searches are those of reasonableness."
Wal-Mart Stores, Inc. v. Bathe
,
IV. Negligent Infliction of Emotional Distress
[19] Relying on the modified impact rule, Neff maintains that the trial court erred by granting summary judgment to Wal-Mart on his claim for negligent infliction of emotional distress.
[20] To establish a claim of negligent infliction of emotional distress, a plaintiff must satisfy the requirements of either the modified impact rule or the bystander rule.
Atlantic Coast Airlines v. Cook
,
V. Intentional Infliction of Emotional Distress
[21] Besides negligent infliction of emotional distress, Neff also claims intentional infliction of emotional distress. Pointing to Spannuth's refusal to accept his protestations of innocence and offers to return the tires or pay the full price, Neff maintains that "[e]motional damage comes from public arrest, jailing, the ruination of employment prospect, the mental anguish"-"[o]ne would think fellow employees would at least grant a colleague the benefit of the doubt." (Appellant's Br. p. 33).
[22] Intentional infliction of emotional distress is committed by one who by extreme and outrageous conduct intentionally or recklessly causes severe emotional distress to another.
Ledbetter v. Ross
,
*674
[23] In
Dietz
, an employee was investigated for giving a customer an unauthorized discount.
Dietz
,
[24] Likewise here, we cannot conclude as a matter of law that Spannuth's conduct exceeded "all bounds usually tolerated by a decent society."
See
VI. Defamation
[25] Next, Neff asserts that there are genuine issues of material fact precluding summary judgment on his defamation claim. Specifically, in a five-line argument Neff contends that Wal-Mart "brought about the newspaper item [Neff] was arrested for theft[.]" (Appellant's Br. p. 31).
[26] To establish a claim of defamation, a plaintiff must establish (1) the existence of a communication with defamatory imputation, (2) malice, (3) publication, and (4) damages.
Wartell v. Lee
,
VII. Invasion of Privacy
[27] Lastly, Neff asserts that Wal-Mart invaded his privacy by unreasonably intruding upon his seclusion and by false light publicity. Besides identifying these two specific "branches" of the general tort of invasion of privacy, Neff supports his claim by maintaining merely that "[f]orcing [Neff] to jail, making known he is arrested for theft, invade privacy when unwarranted circumstances visited on plaintiff falsely are portrayed by tortfeasor." (Appellant's Br. p. 31). As Neff failed to support his argument with cogent reasoning as to the application of the doctrine to the designated evidence, he waived his contention for our review. See Ind. Appellate Rule 46(A)(8)(a).
CONCLUSION
[28] Based on the foregoing, we hold that the trial court properly entered summary judgment in favor of Wal-Mart on Neff's allegations sounding in negligence and tort and based on his arrest and termination by Wal-Mart.
[29] Affirmed.
[30] Vaidik, C. J. and Kirsch, J. concur
The record reflects that the State declined to bring criminal charges against Neff.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.