Cingular Wireless, L.L.C. v. Kenneth D. Lee, Jr.

CourtCourt of Appeals of Texas
DecidedApril 2, 2009
Docket13-07-00132-CV
StatusPublished

This text of Cingular Wireless, L.L.C. v. Kenneth D. Lee, Jr. (Cingular Wireless, L.L.C. v. Kenneth D. Lee, Jr.) 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
Cingular Wireless, L.L.C. v. Kenneth D. Lee, Jr., (Tex. Ct. App. 2009).

Opinion

NUMBER 13-07-132-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

CINGULAR WIRELESS, L.L.C., Appellant,

v.

KENNETH D. LEE, JR., Appellee.

On appeal from the 404th District Court of Cameron County, Texas.

MEMORANDUM OPINION

Before Justices Yañez, Garza, and Vela Memorandum Opinion by Justice Vela

This is an appeal from a judgment entered in favor of appellee, Kenneth D. Lee Jr.,

and against appellant Cingular Wireless, L.L.C. (“Cingular”), in a non jury trial concerning

the alleged wrongful termination of Lee’s employment. The trial court issued findings of

fact and conclusion of law in support of its judgment of $1.6 million dollars. Cingular urges seven issues on appeal, including challenges to the legal and factual sufficiency of the

evidence, various errors in the damage award, error in allowing the admission of Lee’s

expert witness, and error in refusing to allow appellant a jury trial or an emergency

continuance. We reverse and render.

I. BACKGROUND

A. The Z-Page Litigation and the Alleged Request to Lie

Ken Lee’s employment with Cingular ended on November 15, 2002. Lee argues

that he was fired from Cingular because he refused to lie in a deposition that occurred

about eleven months earlier, on January 31, 2002, in related litigation involving Cingular

and Z-Page Wireless Communication (“Z-Page”), a former Cingular agent. Conversely,

Cingular argues that Lee was not fired solely for refusing to lie in a deposition; rather, Lee’s

position was eliminated as a result of a major national reorganization having nothing to do

with his conduct at a deposition and, thereafter, he was either not selected for, or failed to

apply for, other available positions.1 Cingular also notes that Lee received poor

evaluations before his departure for missing meetings, sleeping at meetings, and other

unsatisfactory conduct. These allegations were contested by Lee and determined in Lee’s

favor in the trial court’s findings of fact.

Lee worked for Cingular from July 11, 1988 to November 15, 2002. Initially, he

worked for Southwestern Bell, Cingular’s predecessor, as a director of operations for the

Rio Grande Valley. In that position, he was responsible for all operations in the region and

1 Cingular contends that Lee was never asked to lie in his deposition. However, the trial court found that he was. Cingular’s prim ary argum ent under its first issue is that even if he was asked to lie, it was not the sole cause of his departure from Cingular and, pursuant to Sabine Pilot v. Hauck, 687 S.W .2d 733 (Tex. 1985), it had to be the sole cause of his firing in order for him to recover.

2 supervised over 200 employees. He reported to a regional director and vice president.

From May 2000 to October 2000, Lee was the Director of External Distribution for Cingular.

In October 2000, Lee was asked to focus primarily on Z-Page, the largest agent for

Cingular in the Rio Grande Valley. In this position, Lee reported to Judy Allen, who, like

Lee, held a director-level position. At this time, Judy Allen became the Director of Sales

Operations for the Tropical Texas market. There was no evidence of any other incidence

at Cingular where a director reported to another director.2 From October 2000 until

September 2002, Allen reported to Rob Forsyth, the vice president and general manager

of the Greater Texas/South Texas Region. Lee did not directly report to Forsyth.

Beginning in April 2001, Lee’s sole responsibility was to manage the relationship

with Z-Page. He no longer had any employees directly reporting to him. Although Z-Page

was Cingular’s biggest agent in the Rio Grande Valley, there was trouble brewing between

the two companies based upon a change in the compensation structure for agents. Lee

notified both Allen and Forsyth in July 2001 that Miller, an owner and principal of Z-Page,

had given him a draft contract for the proposed sale of Z-Page to a company called Sol

Telecommunications. During a conference call among Forsyth, Allen and Lee, which was

secretly taped by Lee, the three speculated that Sol Telecommunications might be related

to VoiceStream, a competitor company. This was not good news for Cingular because it

had invested large amounts of money in Z-Page. The severity of, and reasons for, their

concern at this point was debated at trial and seriously contested. The trial court found

that the three were very concerned about Z-Page being sold to a competitor.

2 In fact, there was evidence that in Novem ber 2001, Allen proposed the elim ination of Lee’s director- level position based on budget constraints and the fact that Lee’s m ain custom er had left.

3 Shortly after this conversation, Forsyth contacted Greg Hogue, a former colleague,

who was working for VoiceStream at the time. Forsyth’s conversation with Hogue is at the

crux of the issues that later arose. The evidence is undisputed that Hogue told Forsyth that

he had not heard of any pending purchase of Z-Page. This conversation would later be

important in ensuing litigation involving Z-Page and Cingular, because there was concern

that it could be construed as interference with a competitor.3 Forsyth and the others were

concerned about a possible sale because Cingular had invested more than one million

dollars into Z-Page’s business. Forsyth, Allen and Lee were also concerned because no

one could locate a written contract between Cingular and Z-Page that they believed had

been previously signed by the parties.

Without notice to Cingular, Z-Page converted its stores from Cingular to Verizon

over the weekend of September 15 and 16, 2001. On September 14, 2001, Z-Page also

sued Cingular for tortious interference with its business relationships with a prospective

buyer. (“the Z-Page litigation”). Forsyth was individually named in the Z-Page litigation on

November 15, 2001. Forsyth, Allen and Lee were all deposed in the Z-Page litigation

between January 16, 2002 and January 31, 2002.

After Cingular lost the Z-Page account, Lee’s primary account, Lee became

responsible for developing new agents in the Rio Grande Valley. He remained in that

position until his employment ended in November 2002. The evidence showed that he

brought one new agent aboard during this time.

3 Z-Page later sued Cingular for tortious interference with business relations. This will be discussed later in the factual statem ent.

4 In November 2001, prior to Lee’s deposition, Lee testified that he had a discussion

with Forsyth at a Cingular planning meeting in San Antonio. Lee testified that Forsyth told

him to forget that Forsyth had any knowledge of the draft Z-Page/Sol Communications

contract and also to forget that Forsyth had spoken with Hogue about the contract.4 Lee

further stated Forsyth told him that if Lee refused to “get this deal done,” he needed to

know if Lee was “mobile” because he might have to “surplus” him.5 Forsyth testified that

he did not have a discussion with Lee about the depositions that were going to take place.

In fact, Forsyth claimed that he had not even been individually sued at the time he saw Lee

at the Cingular meetings in early November 2001. Further, Forsyth was not brought into

the Z-Page litigation until November 15, 2001, which was after the alleged conversation

between Lee and Forsyth occurred.

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