City of Houston v. Cotton

171 S.W.3d 541, 23 I.E.R. Cas. (BNA) 441, 2005 Tex. App. LEXIS 5831, 2005 WL 1771189
CourtCourt of Appeals of Texas
DecidedJuly 28, 2005
Docket14-03-00637-CV
StatusPublished
Cited by35 cases

This text of 171 S.W.3d 541 (City of Houston v. Cotton) 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
City of Houston v. Cotton, 171 S.W.3d 541, 23 I.E.R. Cas. (BNA) 441, 2005 Tex. App. LEXIS 5831, 2005 WL 1771189 (Tex. Ct. App. 2005).

Opinion

SUBSTITUTE OPINION

EVA M. GUZMAN, Justice.

We withdraw our opinion of March 22, 2005, and issue this substitute opinion.

*543 Anja Cotton sued appellant, the City of Houston, under the Texas Whistleblower Act. 1 She alleged the City terminated her employment as a sanitarian in retaliation for her having reported violations of law by two of her superiors. Following a bench trial, the court awarded Cotton $32,000.00 for past lost wages; $162,108.42 for attorney’s fees; $9,570.97 for costs; $10,607.40 for prejudgment interest on the lost wages; and post-judgment interest. 2 In four issues, the City challenges the trial court’s conclusions of law and the legal and factual sufficiency of the evidence to support the trial court’s findings of fact, and also argues the trial court abused its discretion by awarding Cotton damages and attorney’s fees when she failed to comply with the discovery rules. Concluding there is no evidence to support the trial court’s finding Cotton made reports of violations of law in good faith, we reverse and render judgment in favor of the City.

I.Factual and Procedural Background

Beginning in December 1992, Cotton was a sanitarian with the City’s Department of Health and Human Services (“Department”). Her duties included regularly inspecting restaurants and other food establishments in Houston to ensure they were operating in compliance with the City’s health code and issuing citations for code violations she observed. In 1996, Cotton and a few co-workers were worried that municipal citations they had issued were being voided or destroyed by their immediate supervisor, Juan Munguia, and Chirag Bhatt, Manager of the Department’s Bureau of Consumer Health. They believed Bhatt was doing so as favors or for monetary gain. During this period, the Department did not have an accounting or log system for citations, and it was not uncommon for supervisors, as a matter of discretion, to void the citations issued by subordinates.

In October 1996, Bernard Silverman, also a sanitarian, filed a complaint with the City’s Office of Public Integrity Review Group, predecessor of the present Office of the Inspector General (“OIG”). 3 Silverman complained Bhatt, with the accommodation of other supervisors, was “fixing” tickets for specific establishments.

On February 10, 1997, Cotton provided OIG a sworn affidavit, invoking the protections of the Texas Whistleblower Act (“the Act”), and stating she wished “to file a formal written complaint asserting that members of the management team of the Health Department knowingly and willingly destroy Municipal Court Citations.” She also stated citations were “continuously [sic] being pulled, voided and thrown away.” She alleged that “[s]ince Bhatt became Division Manager of Consumer Health, enforcement of food and health [sic] has become non existing [sic] in certain food establishment [sic].” Finally, Cotton stated some establishment owners would tell inspectors that Bhatt and another supervisor would pull tickets if any were issued to them, with the result that some inspectors stopped issuing citations or took citations directly to municipal court *544 because they feared the citations would otherwise be pulled.

On July 2, 1998, OIG sent Department Director Dr. Mary Kendrick a copy of the Summary and Conclusions to the OIG Investigation Report. The Summary and Conclusions indicate “[s]tatements obtained by Officer Calix [the investigating officer] revealed a routine pattern in which Sanitarians were impeded from enforcement of the Health Code by either Mr. Bhatt, or the Chief Sanitarians under him, by either voiding the citations or going to the business to prevent them from being issued.” The investigation “revealed no evidence of supervisory personnel receiving any monetary benefit for dismissing citations.” The case was presented to the Harris County District Attorney’s office for review, but the office found no evidence of criminal conduct, and the case was concluded without charges being filed. Before the investigation concluded, Earl Travis, Department Deputy Director, had instituted a policy requiring that he approve the cancellation of all Consumer Health citations until further notice.

On August 9, 1998, a Sunday, Cotton inspected a Fiesta Mart grocery store. She submitted an inspection report indicating she had conducted the inspection from 12:44 p.m. until 8:45 p.m. and had inspected eight departments, including a pizza bar. 4 Salah Assem, the Fiesta store manager, signed each of the eight pages of the report.

Cotton submitted her overtime request to Munguia. Munguia then presented the overtime request to Bhatt for approval. At that time, Bhatt told Munguia to do a targeted Quality Assurance (“QA”) audit on Cotton’s August 9 Fiesta inspection. 5

Munguia conducted the QA audit on August 17, 1998, and took Assem’s statement. Assem stated they walked through all departments, the entire inspection took about one to one and a half-hours, and it concluded about 1:45 p.m. 6 According to Assem, Cotton then called her husband to pick her up. Assem stated that on her way out, Cotton said, “ ‘[B]y-the-way, if anyone asks, I was here until 8:45.’ ” That same day, August 17, 1998, Bhatt recommended Cotton for indefinite suspension. 7

On September 18, 1998, Kendrick notified Cotton in writing of the recommendation that her employment be terminated. The August 9, 1998 Fiesta inspection formed the basis of an allegation of falsification of a legal document; and another inspection, the basis of an allegation of violation of standards of conduct.

By letter dated November 5, 1998, May- or Lee Brown notified Cotton he was indefinitely suspending her for falsifying food inspection reports, fraudulently receiving overtime, and abusing her official authority, based on her conduct during the two inspections.

Cotton appealed to the Civil Service Commission. On December 11, 1998, the *545 Commission sustained Mayor Brown’s action.

Cotton then sued the City, alleging the City had terminated her employment because she reported Bhatt’s and Munguia’s alleged violations of the law to the Houston Police Department’s Public Integrity Unit. Specifically, she alleged:

During 1996, [Cotton] learned many of the citations she and other Sanitarians issued were revoked by her immediate supervisors, Juan Munguia and Chirag Bhatt, without her knowledge or consent. The revocation of the citations was in violation of the City of Houston policy regarding Health Code violations and the laws of the State of Texas. In essence, it was believed that Bhatt and Mungia [sic] were destroying government property, falsifying government records, and taking bribes from commercial establishments.

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Bluebook (online)
171 S.W.3d 541, 23 I.E.R. Cas. (BNA) 441, 2005 Tex. App. LEXIS 5831, 2005 WL 1771189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-houston-v-cotton-texapp-2005.