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Le Marc's Management Corp. v. Valentin5/19/1998
Opinion by Eldridge, J. Bell, C.J., dissents.
Eldridge, J.
This case concerns the appropriate standard, under Maryland common law, for the allowance of punitive damages in defamation actions.
In late 1987 Francisco Valentin, having lived all but the first year of his life in Puerto Rico, moved to New York City in the hopes of improving his limited mastery of the English language and in search of better job opportunities. He immediately went to work as a stock room clerk at Le Marc's Fifth Avenue Cards, Inc., a Hallmark card store owned by Le Marc's Management Corp. In May 1988 Valentin and other Hispanic employees at the store were given polygraph tests to determine if any of the employees were stealing or knew of thefts that were occurring. The polygraph examiner reported to Robert Sauer, Le Marc's corporate administrator, that he believed that Valentin "was holding back information," but it was difficult to interpret the polygraph results because of the "language barrier."
Valentin testified that on June 6, 1988, he submitted a letter of resignation to and received a letter of recommendation from his manager, John Cefai. His original letter of resignation was not introduced into evidence and, apparently, has never been found. Sauer testified that it was not in Valentin's personnel file, and Valentin testified that he did not make a copy of the letter for his records. Valentin further testified that the letter stated that he was leaving Le Marc's because he was planning to move to Maryland to pursue a college education.
Once Valentin relocated to Maryland, he was employed as a sales trainee at a furniture store until July 1989 when he applied for and was hired as a teller-trainee for Sovran Bank. With Valentin's permission, the Bank mailed reference requests to his former employers. Upon Le Marc's receipt of the request, Sauer consulted his computer database and returned the reference form to the Bank stating that Valentin was "terminated due to pilferage." The Bank then placed Valentin on suspension and told him that he had four days to clear his record or he would permanently lose his job .
Valentin immediately telephoned Sauer and explained his dilemma. Sauer promised to investigate the matter and to call the Bank immediately if he discovered that there was an error in the reference. The following day, Valentin traveled to New York in order to meet with Sauer in person. Upon learning that Valentin was waiting to see him, Sauer testified that he read Valentin's employment file and determined that Valentin had not been terminated for pilfering and that the original reference was in error.
Sauer then met with Valentin and explained that there was not a copy of his resignation letter in his file and asked him if he had a copy. Sauer also testified that Valentin was questioned about whether or not, during his tenure with Le Marc's, he had actual knowledge that other employees were stealing. Sauer was concerned about Valentin's knowledge of employee thefts because in Valentin's personnel file were notes that Valentin had, indeed, told Cefai that he suspected some of his fellow employees were stealing merchandise. Sauer then left the room, drafted a document, and when he returned he presented it to Valentin asked him to sign it. The document included language indicating that, while Valentin never personally stole merchandise, he later discovered other employees were stealing and that he "did not want to say anything to my manager about [this] . . . situation ." Valentin signed the document, believing that Sauer would then call and write a letter to the Bank clearing his name.
Sauer testified that he telephoned th
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