Downing v. Burns

348 S.W.3d 415, 32 I.E.R. Cas. (BNA) 1867, 2011 Tex. App. LEXIS 5752, 2011 WL 3196944
CourtCourt of Appeals of Texas
DecidedJuly 28, 2011
Docket14-09-00718-CV
StatusPublished
Cited by30 cases

This text of 348 S.W.3d 415 (Downing v. Burns) 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
Downing v. Burns, 348 S.W.3d 415, 32 I.E.R. Cas. (BNA) 1867, 2011 Tex. App. LEXIS 5752, 2011 WL 3196944 (Tex. Ct. App. 2011).

Opinions

MAJORITY OPINION

TRACY CHRISTOPHER, Justice.

Before Deborah Downing resigned from her job as an assistant to realtor Don Burns, she copied several pages from the office policy and procedures manual she had written for him. After they learned of this, Don and his wife Sherry told several people that Downing stole from them, and that they would sue anyone who employed her if the material was not returned. When Downing was fired from her two subsequent jobs, she sued the Burnses for tortious interference and defamation, and they countersued for theft of trade secrets. The jury found in Downing’s favor on all three claims, but the trial court entered judgment in her favor on only the tortious-interference and theft claims. Both sides appealed.

We conclude that the Burnses did not defeat Downing’s recovery by conclusively proving their counterclaim for theft of trade secrets. Further, the evidence is legally and factually sufficient to support the jury’s findings that the Burnses are liable to Downing for defamation and for tortious interference with contract; however, the record does not support the full [419]*419amount of damages awarded by the trial court on Downing’s tortious-interference claim. Because the tortious-interference claim is not separable from the defamation and theft claims without unfairness to the parties, we reverse the judgment and remand the case for a new trial without addressing the remaining issues.

I. BACKGROUND

For nearly two years, Deborah Downing was employed as Don Burns’s assistant at his real-estate agency. Just before Downing resigned in late September 2006, she copied several pages from the policy and procedures manual she had written for the agency.

In October or November of 2006, Downing accepted two part-time jobs as the office manager for realtors Christine Fuentes and Sima Dalvandi. Both realtors were affiliated with a Keller Williams real-estate agency. Downing worked a total of about thirty hours per week for Fuentes and Dalvandi, and was paid separately by each. Dalvandi paid Downing $17.50 per hour, but Fuentes paid Downing no more than $12.50 per hour.

In mid-November of that year, the Burnses’ attorney wrote to Downing, alleging that she had copied confidential, proprietary marketing plans and client care-packages. The attorney demanded that Downing return the material and informed her that the Burnses would sue her if she failed to do so. Downing responded that she had no such material, and she identified the four pages of material she had copied from the policy and procedures manual.

Also that autumn, Sherry learned from her friend Bernadette Hurley that Downing had begun working for realtors at a Keller Williams real estate agency. Sherry told Hurley that Downing had stolen the Burnses’ policy and procedures manual, and by January of 2007, the story had reached Andy St. Jean, another officer manager at the Keller Williams agency. St. Jean telephoned Sherry, but was unable to reach her. Sherry returned St. Jean’s call and repeated her allegation that Downing had stolen the Burnses’ policy and procedures manual. Sherry also asked St. Jean if Downing, before accepting her current employment, notified others at the Keller Williams agency that the Burnses’ attorney had demanded that she return the material. Sherry told St. Jean that the Burnses’ attorney notified Downing that if she did not return the materials, the Burnses would sue Downing and anyone who employed her.1

Sherry’s statements to St. Jean were repeated to Fuentes, one of Downing’s employers. When Fuentes learned that the Burnses had threatened to sue anyone that employed Downing, Fuentes fired her. Fuentes testified that she did not believe the allegations of theft, but she fired Downing because she could not afford to be sued and “did not want to be a party to a frivolous lawsuit.” Dalvandi terminated Downing’s employment at the same time, but Downing offered no evidence at trial that Dalvandi was aware of the Burnses’ allegations or their threat of litigation.2 Downing remained unemployed until April 2008, when she began working part-time at a residential facility for people with Alzheimer’s disease.

When Downing was leaving the Keller Williams agency, she told co-worker Eula-[420]*420lia Castillo of the Burnses’ threats. As Don’s friend and former employee, Castillo telephoned him about the allegations against Downing. Don told Castillo that Downing not only had taken a copy of his marketing secrets but also had stolen his clients’ option checks. Castillo did not believe this and said there had to be some mistake, but Don ended the conversation.3

The same month that Downing was terminated, Fuentes and the Burnses attended a meeting of the Houston Association of Realtors, referred to by the witnesses as HAR. Fuentes introduced herself to Don, told him she had heard that the Burnses planned to sue anyone that hired Downing, and expressed the hope that she was not a party to any lawsuit. Don walked away from Fuentes, but sent Sherry to speak to her. Fuentes repeated to Sherry that she hoped the Burnses were not planning to sue her. Sherry responded by asking if Downing still worked for Fuentes, and when Fuentes said that Downing did not, Sherry said, “[W]ell, then you don’t have to worry about being sued.” Sherry also told Fuentes that Downing had stolen money or checks from the Burnses.

The rumor that Downing had stolen from the Burnses apparently spread to others in the industry. At luncheon meeting of the same professional association,4 Mary Stuart approached Sherry to discuss Downing. As Sherry later testified, Stuart expressed disbelief, but Sherry told her, “yes, it’s true.”

Downing sued the Burnses for defamation ' and tortious interference with contract, and the Burnses asserted the affirmative defenses of justification and qualified privilege and counterclaimed for theft of trade secrets.5 At trial, Downing offered into evidence her own response to a request for disclosure of the amount of her economic damages, together with a description of the method used to calculate such damages. She concluded that her known economic damages were $57,230.00. During closing argument, her attorney told the jury that the damages caused by the Burns-es’ defamation were the same as those caused by their tortious interference, and argued that the jury should answer the damage questions for each by referring to the calculation in this exhibit. The trial court refused to submit questions to the jury about the Burnses’ affirmative defenses of justification and qualified privilege

A unanimous jury found that Downing did not commit theft of trade secrets and that the Burnses tortiously interfered with Downing’s employment and defamed her. As compensation, the jury found that Downing was entitled to recover $100,000.00 from the Burnses — $57,280.00 for tortious interference and $42,770.00 for defamation.

The Burnses moved for judgment notwithstanding the verdict. As to the claim that they tortiously interfered with Downing’s employment contract, the Burnses argued that their statements about Downing were privileged as a matter of law, and in any event, the evidence did not support the jury’s damages finding on that claim. The Burnses argued that Downing could [421]

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Bluebook (online)
348 S.W.3d 415, 32 I.E.R. Cas. (BNA) 1867, 2011 Tex. App. LEXIS 5752, 2011 WL 3196944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/downing-v-burns-texapp-2011.