City of San Antonio ex rel. Waterworks Board of Trustees v. Theis

554 S.W.2d 278
CourtCourt of Appeals of Texas
DecidedJuly 21, 1977
DocketNo. 1007
StatusPublished

This text of 554 S.W.2d 278 (City of San Antonio ex rel. Waterworks Board of Trustees v. Theis) 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 San Antonio ex rel. Waterworks Board of Trustees v. Theis, 554 S.W.2d 278 (Tex. Ct. App. 1977).

Opinion

DUNAGAN, Chief Justice.

This is a suit involving wrongful suspension of employment. Appellee Ralph Wayne Theis, plaintiff below (hereafter called “Theis”), filed suit against the appellant City of San Antonio, acting by and through its Water Works Board of Trustees (hereafter called “appellant”), seeking damages for wrongful suspension and temporary and permanent injunctive relief in the form of a full reinstatement to his former position and salary. At a hearing on the temporary injunction, pursuant to agreement between the parties, the court entered its temporary injunction ordering appellant to pay Theis’s salary while he continued under suspension. Thereafter appellant filed its original answer alleging misconduct and incompetency on Theis’s part in the pursuit of his job responsibilities, said misconduct chiefly consisting of unsubstantiated payments and overpayments to contractors doing construction work for appellant’s water board.

Trial was before a jury who, in answer to special issues, found that appellant did not have probable cause to suspend Theis without pay (in answer to Special Issue No. 1); that as a result of the wrongful suspension Theis suffered actual damages of $62,500.00 (in answer to Special Issue No. 2); that appellant acted with malice in suspending Theis (in answer to Special Issue No. 3); and that exemplary damages of $87,500.00 should be awarded against appellant (Special Issue No. 4). Defendant thereafter filed its motion for judgment n. o. v. The trial court partially granted said motion, and in its judgment recited that there was no evidence to support the jury’s findings of malice and exemplary damages and that the jury’s answers to Special Issues Nos. 8 and 4 should be disregarded. Otherwise, the court entered its judgment in favor of [280]*280Theis and against appellant upon the jury’s answers to Special Issues Nos. 1 and 2 in the amount of $62,500.00 with interest and costs in favor of Theis. The court’s judgment also permanently enjoined appellant from doing any act or engaging in any conduct designed or intended to prevent Theis from pursuing his position with appellant.

After appellant made its motion and amended motion for new trial and the court’s overruling of same, appellant timely perfected this appeal, alleging twenty-one points of error. Theis presents counterpoints in reply to appellant’s points of error, and also presents two cross points complaining of the court’s action in disregarding the jury’s answers to Special Issues Nos. 3 and 4.

We reverse and render.

Theis’s position was supervisor of the construction inspection division of the Water Works Board of San Antonio, a public utility owned by the City of San Antonio, appellant. The Water Board annually contracts out millions of dollars worth of construction work pursuant to public bidding. The construction work is done under the general conditions and specifications of Water Board contracts which Theis and contractors were to follow. The general conditions permit extra work to be done in certain situations pursuant to the execution of change orders. Theis was responsible for negotiating change orders, and initiating payment for extra work done pursuant to authorized change orders. Theis’s job included confirming that all work was performed and the materials furnished according to Water Board specifications prior to approving the partial payment or final payment certificates.

Theis held his position of supervisor from April 1973 until November 1975. During a period of approximately eighteen months, Theis approved payments to certain contractors which his superiors soon thereafter contended were unauthorized. Because of the amount of these alleged overpayments indicated by the Water Board’s internal audit, the Water Board’s management commenced an investigation for possible dishonesty in connection with these overpayments.

On November 19,1975, Theis was handed a letter by Hugh R. Anderson, director of the engineering department, in which Theis was given notice of his suspension without pay “for a period not to exceed six weeks in accordance with the provisions of Section Y.D.7.C., ‘Theft of City Water Board or Employee Property or other Forms of Dishonesty’ and Section V.E.l.e(3), ‘Disciplinary Layoff or Suspension Without Pay’ of the City Water Board Personnel Manual.” The letter informed Theis that a preliminary investigation indicated that “in respective cases overpayments, falsification, or alterations of change orders and final payment certificates” had been made in jobs individually listed by number in the letter. During the suspension effected by the letter an investigation was to be made in continuance of the preliminary investigation which preceded the suspension.

After the suspension, the Water Board ordered a full scale investigation by Ernst & Ernst, an auditing firm, which conducted an independent audit. The audit was completed on January 13, 1976.

On November 26,1975, Theis delivered to Anderson an “Inter Office Memorandum” which set out Theis’s answers and explanations to each of the jobs put in issue by the November 19th letter. Theis received no reply to this memorandum from appellant. In the meantime, Theis retained counsel who, on December 4, 1975, requested the Water Board in writing to send in detail the complete charges concerning the Water Board’s accusations of dishonesty against Theis. On December 11,1975, Anderson, in behalf of appellant, answered counsel’s letter stating that Theis had not yet been charged with theft. Anderson also gave counsel specific information concerning the accusations stemming from the jobs in question, and notified counsel that Theis’s alleged acts were in violation of state statutes.

By letter dated December 30,1975, appellant advised Theis that his suspension without pay was being extended for an addition[281]*281al period not to exceed fifteen days pending further and thorough investigation of the allegations.

On January 15,1976, Anderson, in behalf of appellant, notified Theis by letter that the audit report of Ernst & Ernst was being turned over to the appropriate law enforcement authorities at that time, and thereby continued the suspension without pay indefinitely while the matter was reviewed by local law enforcement authorities. The letter also notified Theis that his right to file a formal employee grievance was available to him.

On January 19, 1976, Theis filed this suit for damages and injunctive relief, with a hearing for temporary injunction set for January 24, 1976.

On Saturday, January 24, 1976, at 4:00 o’clock P.M., appellant’s employees, Toler and Anderson, went to Theis’s home and presented him with a letter, notifying him that he was being discharged. The letter covered in detail the grounds for discharge.

At the hearing on the temporary injunction, an agreement was reached between •the parties that Theis would be reinstated as an employee as if he had not been discharged; that he be continued on suspension; that he be paid all wages and other benefits accrued since November 19, 1975; that appellant continue to pay Theis all wages and other benefits as accrued through final disposition of said cause on its merits; that a writ of injunction issue in accordance with the order; and that the case be specially set for trial on the merits for March 1, 1976.

Appellant in its points of errors nos. 1-8 complains of the permanent injunction granted by the court. Theis states under his counterpoint one in reply to appellant’s points of error nos.

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

Related

Gevinson v. Manhattan Construction Co. of Oklahoma
449 S.W.2d 458 (Texas Supreme Court, 1969)
Mobil Oil Company v. Dodd
515 S.W.2d 351 (Court of Appeals of Texas, 1974)
Wagner v. Foster
341 S.W.2d 887 (Texas Supreme Court, 1960)
Wooley v. West
391 S.W.2d 157 (Court of Appeals of Texas, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
554 S.W.2d 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-san-antonio-ex-rel-waterworks-board-of-trustees-v-theis-texapp-1977.