Borden, Inc. v. Wallace

570 S.W.2d 445, 1978 Tex. App. LEXIS 3569
CourtCourt of Appeals of Texas
DecidedAugust 2, 1978
Docket6726
StatusPublished
Cited by17 cases

This text of 570 S.W.2d 445 (Borden, Inc. v. Wallace) 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. Wallace, 570 S.W.2d 445, 1978 Tex. App. LEXIS 3569 (Tex. Ct. App. 1978).

Opinion

OPINION

PRESLAR, Chief Justice.

This is a suit for slander whereby Appel-lee recovered $500,000.00 in actual damages and $500,000.00 in exemplary damages by a jury verdict. We reverse and render.

Appellee was a wholesale route salesman for Appellant, Borden, Inc., making sales and deliveries to schools and retailers on a commission basis. On May 10, 1974, an employee of Wuest, a retail store customer *447 of Borden, reported to his superiors that he saw Appellee stealing dairy products. Wuest’s Vice President, Robert Wuest, transmitted this information to James Wolf, Borden’s sales manager, and requested that Appellee not make any more deliveries to any of Wuest’s 15 stores. Borden has a company rule that dismissal is automatic for (1) drinking on the job, and (2) dishonesty, and it is company policy to give polygraph tests to employees prior to their employment and when they are suspected of dishonesty. At Wolf’s request, the Defendant Andrews, Borden’s personnel director, arranged for Appellee to take a polygraph test and, following such test, Ap-pellee was discharged. This suit was then filed against Defendants Robert Wuest and Wuest, Inc., Borden, Inc., and its employee J. C. Andrews. At the conclusion of the evidence, a directed verdict was granted in favor of Wuest, Inc. and Robert Wuest on the basis that there was no showing of malice. The jury verdict was against J. C. Andrews and Borden, Inc., jointly and severally.

The judgment is based on findings of two defamatory statements. The jury found that the Defendant Borden, through its agent, Defendant Andrews, communicated two slanderous remarks; one to Wayne Knight, a Borden employee, to the effect that Appellee had been fired because of dishonest acts amounting to theft, and the other was to Ron Morrell, a polygraph operator, that Appellee Wallace was suspected of committing dishonest acts amounting to theft at the Wuest Oak Park Store.

We have concluded that Andrews’ communications to both Knight and Morrell were conditionally privileged, and that there is no evidence that such statements were made with malice. The jury answers to Special Issues Nos. 5 and 10 found that both statements were made with malice. In submitting the issues on malice, the trial Court instructed the jury as follows:

“You are instructed that malice means ill-will and bad or evil motive or such gross indifference to the rights of another as amounts to a wilful or wanton act and done intentionally and without just cause or excuse.”

Appellants urge that this instruction is essentially that of common law malice, and that is no longer the conduct necessary in Texas to overcome a qualified privilege under the ruling of Dunn and Bradstreet, Inc. v. O’Neil, 456 S.W.2d 896 (Tex.1970). We do not reach that question as we are of the opinion that there is no evidence to support the jury’s findings under the instruction as given. Proof of malice is necessary for Appellee’s recovery if the statements of Andrews were made under a qualified or conditional privilege. As the Supreme Court said in Dunn and Bradstreet, Inc. v. O’Neil, supra:

“ * * * ‘Such privilege is termed conditional or qualified because a person availing himself of it must use it in a lawful manner and for a lawful purpose. The effect of the privilege is to justify the communication when it is made without actual malice.’ Buck v. Savage, 323 S.W.2d 363 (Tex.Civ.App.1959) writ ref’d, N.R.E. * * * ”

We will not dwell at length on the question of privilege because counsel for Appellee in oral argument stated that he is not really contending that there is no conditional privilege in this case. We do note that the Court submitted the question of privilege to the jury, and we are of the opinion that whether a communication is privileged is a question of law for the Court. Reagan v. Guardian Life Ins. Co., 140 Tex. 105, 166 S.W.2d 909 (1942); Fitzjarrald v. Panhandle Pub. Co., 149 Tex. 87, 228 S.W.2d 499 (1950). We conclude that the Defendant’s conditional privilege was shown to exist as to each of the two communications.

We sustain Appellants’ Points of Error Nos. 7 and 10 that there was no evidence that Andrews’ statement to Knight was made with malice, and that there was no evidence that Andrews’ statement to Morrell was made with malice.

In deciding “no evidence” points such as these, an appellate Court must consider only the evidence and the inferences tending to support the findings and disre *448 gard all evidence and inferences to the contrary. Garza v. Alviar, 395 S.W.2d 821 (Tex.1965). As to the existence of malice where there is a conditional or qualified privilege, Judge Peden, in Houston Belt & Terminal Railway Company v. Wherry, 548 S.W.2d 743 at 754 (Tex.Civ.App.—Houston [1st Dist.] 1976, writ ref d n. r. e.), quotes at length from Texas Jurisprudence as follows:

“ ‘Although the existence of actual or express malice is not presumed as a matter of law and must be proved, it need not be proved by direct or extrinsic evidence; its existence is sufficiently shown by evidence of facts and circumstances from which it is reasonably inferable. It may be inferred from the relation of the parties, the circumstances attending the publication, the language used, and from the words or acts of the defendants before, at, or after the time of the communication; but there must be evidence from which the jury can infer malice existing at the time of publication and actuating it. Malice is not implied or presumed from the mere fact of the publication, nor may it be inferred alone from the character or vehemence of the language used, nor found from the falsity of the statement alone.’ 36 Tex.Jur.2d 475, Libel and Slander See. 149.”

Was Andrews actuated by malice or evil motive to tell Knight that Appellee Wallace had been fired from Borden, and that his firing was because he had committed dishonest acts amounting to theft at the. Wuest Oak Park Store? The circumstances of the statement being made are these. Knight, who was a very close friend and “buddy” of Wallace, went to see Andrews, the personnel director of Borden, and inquired as to Wallace’s discharge. Thus, the statement of Andrews was not volunteered but was given after inquiry by a fellow employee who testified that he did so because of his concern for what had happened to his friend Wallace, and to be sure that he was treated fairly. He testified that Andrews was his friend, and that he, Andrews, “looked after and took pretty good care of the drivers.” Wallace also testified to being a good friend of Andrews, that he had known him since elementary school days, and that he talked to him nearly everyday. Appellee urges some sort of conspiracy to get Wallace fired to satisfy the customer, Wuest.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Henriquez v. Cemex Management, Inc.
177 S.W.3d 241 (Court of Appeals of Texas, 2005)
Oswaldo Henriquez v. Cemex Management, Inc.
Court of Appeals of Texas, 2005
Austin v. Inet Technologies, Inc.
118 S.W.3d 491 (Court of Appeals of Texas, 2003)
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 2002
Ayres v. Canales
790 S.W.2d 554 (Texas Supreme Court, 1990)
Shebay v. Davis
717 S.W.2d 678 (Court of Appeals of Texas, 1986)
Frank B. Hall & Co., Inc. v. Buck
678 S.W.2d 612 (Court of Appeals of Texas, 1984)
Betancourt v. Whittle
659 S.W.2d 895 (Court of Appeals of Texas, 1983)
Goree v. Carnes
625 S.W.2d 380 (Court of Appeals of Texas, 1981)
Opinion No.
Texas Attorney General Reports, 1981
Bergman v. Oshman's Sporting Goods, Inc.
594 S.W.2d 814 (Court of Appeals of Texas, 1980)
Ryder Truck Rentals, Inc. v. Latham
593 S.W.2d 334 (Court of Appeals of Texas, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
570 S.W.2d 445, 1978 Tex. App. LEXIS 3569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borden-inc-v-wallace-texapp-1978.