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Murcott v. Best Western International8/31/2000
Brian Murcott filed an action for wrongful discharge against his former employer, Best Western International, Inc., and four individuals serving as company directors at the time of the discharge: Mark T. Brown, Rodger Mathis, Loren H. Unruh, and David L. Huff. Best Western moved for a directed verdict on liability and on a claim for punitive damages. The trial court denied the motion as to liability and directed a verdict in favor of Best Western on the punitive damages claim.
After the jury found in Murcott's favor, Best Western filed an unsuccessful motion for judgment notwithstanding the verdict, or as it is now termed in revised Rule 50, Arizona Rules of Civil Procedure, judgment as a matter of law ("JMOL"). Best Western now appeals from the denial of the JMOL motion, and Murcott cross-appeals from the directed verdict on punitive damages. We have jurisdiction over both appeals. See Ariz. Rev. Stat. Ann. ("A.R.S.") section 12-2101(B)(1994). The issues raised generally involve the interplay between "whistle-blowing" and at-will discharge.
I. FACTUAL AND PROCEDURAL BACKGROUND
A. Factual Background
1. The Parties
Best Western is an Arizona non-profit corporation. Instead of stockholders, it has members who are independent owners and/or operators of its hotels and motels.
During 1994 and 1995, when the events giving rise to this lawsuit occurred, Best Western's seven-member board of directors consisted of the four individual defendants (Brown served as Chairman of the board during 1995), plus three persons not named in this suit: Don Seaton, Fred Walter, and Steve Vande Berg. Murcott joined the company in 1989 as Vice President of Membership Development and Quality Assurance. He did not have a written employment contract and served at the pleasure of the board as an at-will employee.
2. Best Western's Membership Application Process
The board was charged with electing property owners and operators to membership. It met about ten times each year to review and vote on applications. In-house staff would submit a report on each applicant's ownership and management, location, market, facilities and service. Such reports included a non-binding recommendation. Board members also would provide input after visiting applicant properties.
According to Murcott, numerous factors entered into the staff's evaluation whether an applicant would be a good candidate for membership, including the property's appearance, its location, the applicant's experience and whether Best Western was already sufficiently represented in the relevant market. Murcott stated that "the overriding concept" of the application review process was "to decide what is in the best interests of the association as a whole."
3. The Seven Contested Applications
At trial, Murcott identified seven instances during 1994-95 in which he disagreed, on anti-trust grounds, with the Board's handling of an actual or prospective application. These instances are described below.
a. Valle, Arizona (Grand Canyon Motel)
In March 1994, the Grand Canyon Motel in Valle, Arizona applied for membership. Best Western already had a member hotel in the Grand Canyon area, the Grand Canyon Squire Inn. During the course of Best Western's evaluation of the Grand Canyon Motel's application, defendant Brown personally inspected the applicant's property and met with the applicant and the existing Best Western member in the area.
Best Western staff had recommended a "conditional approval" of the Grand Canyon Motel's application, but at the board meeting at which the applicati
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