Borden, Inc. v. Rios

850 S.W.2d 821, 1993 WL 93937
CourtCourt of Appeals of Texas
DecidedApril 29, 1993
Docket13-91-371-CV
StatusPublished
Cited by17 cases

This text of 850 S.W.2d 821 (Borden, Inc. v. Rios) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Borden, Inc. v. Rios, 850 S.W.2d 821, 1993 WL 93937 (Tex. Ct. App. 1993).

Opinion

OPINION

FEDERICO G. HINOJOSA, Jr., Justice.

A jury found that Roy Cavazos falsely accused appellee of theft, that Cavazos and Sam Fernandez intentionally inflicted emotional distress upon appellee, and that Ca-vazos and Fernandez committed the tor-tious conduct incident to or within the course and scope of their employment with Borden, Inc. The trial court entered judgment for appellee in the amounts awarded by the jury; $878,000 in actual damages and $3,118,000 in exemplary damages. 1 Appellants raise eleven points of error, complaining that neither the charge nor the findings support the award of exemplary damages against Borden or Cavazos, that the exemplary damages awarded against Borden were excessive, and that neither *825 the charge nor the findings support judgment for intentional infliction of emotional distress. Appellants also challenge the legal and factual sufficiency of the evidence to support the compensatory damages and to support intentional infliction of emotional distress. Finally, appellants complain that the trial court erred by excluding evidence of appellee’s prior conviction for theft.

Borden, Inc., is a corporation that sells dairy and other food products world-wide. During the events which gave rise to this case, Fernandez managed the Borden, Inc., facility located in Alamo. The Alamo facility receives products from the Corpus Christi plant, and Borden, Inc., employees then distribute them throughout the Rio Grande Valley. On July 9, 1985, Fernandez employed Rios to work as a route salesperson for Borden, Inc. Fernandez assigned Rios to Borden Route 610, where Roy Cavazos, the route supervisor, trained and supervised him.

Borden pays its salespersons on a commission basis, holds them responsible for collecting money for its products, and deducts all shortages in inventory and collections from their commissions. Borden requires each salesperson to keep a record of each day’s sales and collections. Cavazos collects these records and gives them to Fernandez. Fernandez checks the records and forwards them to Borden’s accountants in Corpus Christi.

Borden retains one percent of each employee’s pay and places it in a fund to cover “bad debt collections.” Borden also deducts $25 per month from each employee until the employee accumulates $500. The company advises employees that this $500 cash bond is required “in case you are terminated or you leave by your own will, and if the books are in order, there’s no shortages or et cetera, then you will be reimbursed the $500.00 bond.” Many of Borden’s Rio Grande Valley customers are winter Texans who leave in the spring without paying their accounts but return and pay the following winter.

Rios’ route showed a shortage of $174 in August 1985. In September 1985, Rios was hospitalized and Cavazos worked his route for a five-day period. That month, Borden showed the route to be short $1,936.31. To keep his job, Rios borrowed $1,500 from a bank and covered the shortage. Rios did not believe a shortage of that size was possible and asked Cavazos and Fernandez to investigate the shortage, but Cavazos discarded the September paperwork.

In April 1986, Borden again claimed Rios’ route collections and inventory had large deficits. During April, Cavazos personally emptied the ice cream storage truck and transferred the ice cream inventory to another truck. As they each returned from their routes, Cavazos showed Rios and Roy Castro, another Borden route salesperson, the new location of their ice cream inventory. When Rios and Castro noticed their ice cream inventory was disappearing, they questioned Cavazos. Cavazos told Rios that Castro was stealing and told Castro that Rios was stealing. Rios and Castro confronted each other and discovered that Cavazos had given them the same ice cream inventory and had then accused each of stealing the other’s ice cream. Cavazos’ brother was in charge of wholesale ice cream sales.

Cavazos personally supervised Rios’ route during April, 1986 and each week’s balances were reasonable. During the month, Cavazos urged Rios to quit rather than suffer being fired by Borden. Cava-zos also called Mrs. Rios at home, predicted that Rios would have a shortage that month and suggested that the Rios family try to sell one of their cows to pay the shortage. At the end of the month, Fernandez checked Cavazos’ paperwork and found that Rios was short $1,200. Fernandez then approached Rios in front of the other drivers and, when Rios protested innocence, stated:

Don’t give me that shit. I’ve been here 20 years, and it’s always the same thing. Now, where’s the money?

Immediately thereafter, Cavazos informed Rios that he would not receive a paycheck for the month. Cavazos promised Rios that he would go through the April paper *826 work, find the error, and talk to the accounting department in Corpus Christi.

In May 1986, Cavazos, at the direction of Fernandez, took over Rios’ route. Rios rode as a passenger, and Cavazos handled the books, records, and money. Cavazos submitted no reports for the first week of May. During the next three weeks, Cava-zos reported the following shortages:

May 14, 1986.$1,819.86
May 21, 1986.$2,162.97
May 30, 1986.$1,785.60 •

Rios was charged with the $1,785.60 shortage, and Fernandez confronted him with an accusation that he could not have purchased a mobile home and tires on his Borden salary. Rios received no paycheck for May, and Cavazos again assured Rios that the error would be found.

On June 4, 1986, Cavazos informed Rios that he had been fired by Borden for stealing. Rios placed a telephone call to Fernandez, and Fernandez confirmed that Rios had been fired. Rios protested innocence, offered to take a polygraph test, and requested Fernandez investigate Cavazos’ actions. Rios also wrote to the chief executive officer of Borden, explaining the problem and suggesting that route salespersons were being manipulated by Cavazos and Fernandez. Borden did not investigate Ca-vazos or Fernandez.

The parties’ dispute at trial concerned primarily the actions of Cavazos. Appellee produced evidence that Cavazos showed route drivers how they could pad inventory and customer accounts and buy food stamps at discount. Rios and Castro testified that when substituting for sick or vacationing drivers, Cavazos would personally accept payments on overdue accounts which Borden had already charged against the routeman as a shortage. Plaintiff’s witnesses testified that Cavazos would lie on settlement sheets, change drivers’ reports, and sign drivers’ names to documents without their permission. Cavazos denied performing these acts. Appellee also testified that Cavazos visited Rios’ house after the firing and asked Rios “not to burn him” at the Texas Employment Commission hearing. Cavazos later told Rios’ former customers, Pete Cavazos and Aurora Tafolla, that Rios had been fired for stealing.

By their first point of error, appellants complain that the trial court erred in entering judgment against Borden and Cavazos for punitive damages for defamation. Appellants argue that defamatory statements must be uttered with malice for punitive damages to lie and that the jury made no finding of malice.

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Cite This Page — Counsel Stack

Bluebook (online)
850 S.W.2d 821, 1993 WL 93937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borden-inc-v-rios-texapp-1993.