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Holmes v. General Dynamics Corp.8/18/1993
COURT OF APPEAL OF CALIFORNIA, FOURTH APPELLATE DISTRICT, DIVISION ONE
Nos. D012414, D012839.
1993.CA.42937 ; 22 Cal. Rptr. 2d 172; 17 Cal. App. 4th 1418
Decided: August 18, 1993.
RANDALL HOLMES, PLAINTIFF AND APPELLANT,
v.
GENERAL DYNAMICS CORPORATION, DEFENDANT AND APPELLANT.
Superior Court of San Diego County, No. 529199, Robert C. Thaxton, Jr., Judge.
Thorsnes, Bartolotta, McGuire & Padilla, Michael Thorsnes and Suuzen Ty Anderson for Plaintiff and Appellant.
Gray, Cary, Ames & Frye, L. B. Chip Edleson, Marcelle E. Mihaila and William V. Whelan for Defendant and Appellant.
Opinion by Wiener, J., with Kremer, P. J., and Froehlich, J., Concurring.
Wiener
In October 1984 defendant General Dynamics (GD) terminated plaintiff Randall Holmes, a 13-year management employee. Finding GD fired Holmes in violation of public policy by retaliating against him for disclosing to management the company's violation of the false statements act (18 U.S.C. ยง 1001), a jury determined Holmes was entitled to $106,000 for lost wages and benefits, $200,000 for emotional distress and $500,000 in punitive damages. GD appeals, asserting the evidence was insufficient to support the judgment and instructional error. Holmes cross-appeals, contending the court erred in refusing his request for prejudgment interest pursuant to Civil Code section 3291. We affirm the judgment.
FACTUAL BACKGROUND
In 1971 GD hired Holmes as a management systems specialist in its electronics division (GDE), which builds and repairs electronic warfare, surveillance and navigation systems, and supplies electronics used by other GD divisions. Holmes thereafter received numerous raises, honors, awards, and promotions. In July 1982 GDE's comptroller, Claude Stoker, made Holmes GDE's business management manager, a position of increased responsibility. In this position, Holmes supervised nine staff analysts in analyzing financial data on government defense contracts. Although Holmes did not have technical financial experience or training in every relevant area, he had substantial management experience qualifying him for the position. Holmes reported directly to Stoker.
Holmes performed well during 1982 and 1983. He was "active" in discovering and resolving an accounting problem which led the division to recoup approximately $1 million. He also received a commendation letter from a GDE vice-president, praising Holmes for his "specific contributions" serving to "improve future performance and the profitability of [GDE's] business." Holmes received no criticisms. He believed he was doing an "exceptional" job for the division.
A July 1983 performance review supported Holmes's perception his work was well received. In the review Stoker recognized Holmes was "a mature manager" who was attempting to rebuild an "old group with new blood, ideas." As the only critical statement in the review, Stoker said Holmes "must keep in mind that the service to the Program Office is 'supreme,' the #1 objective." As part of the review, Stoker told Holmes he would not be given an annual raise because he was still in the training phase of the job . Stoker, however, assured Holmes he should not construe the absence of a raise as a criticism of his work.
Beginning in spring 1983 through the time he was terminated, Holmes repo
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