Branden St. John Brown v. Swett & Crawford of Texas, Inc.

CourtCourt of Appeals of Texas
DecidedSeptember 15, 2005
Docket01-03-00520-CV
StatusPublished

This text of Branden St. John Brown v. Swett & Crawford of Texas, Inc. (Branden St. John Brown v. Swett & Crawford of Texas, Inc.) 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
Branden St. John Brown v. Swett & Crawford of Texas, Inc., (Tex. Ct. App. 2005).

Opinion

Opinion issued September 15, 2005





In The

Court of Appeals

For The

First District of Texas





NO. 01-03-00520-CV





BRADEN ST. JOHN BROWN, Appellant


V.


SWETT & CRAWFORD OF TEXAS, INC. f/d/b/a/ INSURANCE BROKERS SERVICES, INC. OF TEXAS f/k/a ALEXANER HOWDEN INSURANCE SERVICES OF TEXAS, INC.; AON CORPORATION; AON SERVICES GROUP, INC.; SWETT & CRAWFORD, INC.; INSURANCE BROKERS SERVICES, INC.; PASCAL M. (“MATT”) GALTNEY; AND BLAKE BARTNIK, Appellees





On Appeal from the 113th District Court

Harris County, Texas

Trial Court Cause No. 2001-29087





O P I N I O N

          Appellant, Braden St. John Brown, filed suit against his employer, Swett & Crawford of Texas, Inc. f/d/b/a Insurance Brokers Services, Inc. of Texas ( “IBS”), and his supervisor at IBS, Matt Galtney, alleging that they (1) wrongfully expelled him from a partnership that he had entered into with Galtney; (2) refused to pay him a bonus that he had earned; (3) fraudulently induced him to leave his previous employment by representing that he would continue to be Galtney’s “partner” at IBS; (4) tortiously interfered with his relations with, and made defamatory statements about him to, prospective employers; and (5) that IBS negligently hired and supervised Galtney. Galtney and IBS filed a motion for summary judgment, which the trial court granted. We affirm.

I. BACKGROUND

          Braden St. John Brown is a wholesale insurance broker. Wholesale brokers act as middlemen between retail insurance agents and insurance companies, and the insurance companies pay the wholesale broker a “gross commission,” which is a percentage of the premium for each policy sold.

          Brown met Galtney in 1994, while they were both working for Jarrett Insurance Brokers (“Jarrett”). While at Jarrett, they were treated on the company’s books as one person, i.e., they were allocated a gross salary and paid gross commissions, which they split in an agreed-upon proportion. Jarrett, however, paid each of them by way of a separate check, which reflected their split of the commissions.

          In 1999, Galtney met a former business acquaintance, Blake Bartnick, who was the president of IBS in Dallas. Galtney and Bartnick began discussing the possibility of Galtney’s opening a Houston office for IBS. Galtney indicated that he wished to bring Brown with him to IBS, and began negotiating with IBS on behalf of himself and Brown.

          IBS eventually hired both Brown and Galtney. The offer they accepted included a base salary of $590,000, 42% of which went to Brown ($247,800) and 58% of which went to Galtney ($342,200). There was a potential for a bonus based on new business written for IBS by “Houston Team One,” which is how IBS referred to the team consisting of Brown and Galtney. The bonus to “Houston Team One” was also to be split in the same proportion as the base salary. Thereafter, the base salary would be adjusted yearly and would be paid to Brown and Galtney as a draw against the gross commissions that they generated. Any amount above the draw would be divided equally between Houston Team One and IBS, and Houston Team One would divide its half of the gross commission in a 42:58 ratio between Brown and Galtney.

          Brown and Galtney were both W-2 salaried employees of IBS, and Galtney, as the executive vice-president in charge of the Houston office, was Brown’s supervisor. Brown acknowledged that he was an at-will employee of IBS.

          On July 31, 2000, IBS fired Brown after problems attributed to him were discovered in several of the files that he had been handling. Brown was offered a severance, which included full pay and benefits through September 30, 2000, and a payment of a year-end bonus based upon gross commissions earned through the date of his termination. Brown rejected the bonus offered by IBS by writing “VOID” on the face of the bonus check and returning it.

          IBS and Galtney filed both traditional and no-evidence motions for summary judgment. Brown filed a motion for partial summary judgment on his partnership and bonus claims. The trial court granted IBS’s and Galtney’s motions for summary judgment and denied Brown’s motion for partial summary judgment. This appeal followed.

II. PROPRIETY OF SUMMARY JUDGMENT

A. STANDARDS OF REVIEW

          After adequate time for discovery, a party may move for summary judgment on the ground that there is no evidence of one or more essential elements of a claim or defense on which an adverse party would have the burden of proof at trial. Tex. R. Civ. P. 166a(i); Brewer & Pritchard, P.C. v. Johnson, 7 S.W.3d 862, 866 (Tex. App.—Houston [1st Dist.] 1999), aff’d, 73 S.W.3d 193 (Tex. 2002). The motion must specify which essential elements of the opponent’s claim or defense lack supporting evidence. See Brewer & Pritchard, 7 S.W.3d at 866-67. Once the party seeking the no-evidence summary judgment files a proper motion, the respondent must bring forth evidence that raises a fact issue on the challenged elements. See Jackson v. Fiesta Mart, Inc., 979 S.W.2d 68, 71 (Tex. App.—Austin 1998, no pet.). The party with the burden of proof at trial has the burden of proof in the summary judgment proceeding. Flameout Design & Fabrication, Inc. v. Pennzoil Caspian Corp., 994 S.W.2d 830, 834 (Tex. App.— Houston [1st Dist.] 1999, no pet.). The respondent need not “marshal its proof” as for trial but need only “point out” evidence that raises a fact issue on the challenged elements. Howell v. Hilton Hotels Corp., 84 S.W.3d 708, 715 (Tex. App.—Houston [1st Dist.] 2002, pet. denied).

          The standard of review in an appeal from a traditional summary judgment requires a defendant who moved for a summary judgment on the plaintiff’s causes of action (1) to show there is no genuine issue of material fact as to at least one element of each of the plaintiff’s causes of action or (2) to establish each element of the defendant’s affirmative defense. Cathey v. Booth, 900 S.W.2d 339, 341 (Tex. 1995).

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