Fluor Enterprises, Inc. v. Conex International Corp.

273 S.W.3d 426, 2008 Tex. App. LEXIS 9472, 2007 WL 5860048
CourtCourt of Appeals of Texas
DecidedDecember 18, 2008
Docket09-07-100 CV
StatusPublished
Cited by27 cases

This text of 273 S.W.3d 426 (Fluor Enterprises, Inc. v. Conex International Corp.) 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
Fluor Enterprises, Inc. v. Conex International Corp., 273 S.W.3d 426, 2008 Tex. App. LEXIS 9472, 2007 WL 5860048 (Tex. Ct. App. 2008).

Opinions

OPINION

CHARLES KREGER, Justice.

Fluor Enterprises, Inc. f/k/a Fluor Daniel, Inc., and Leslie Antalffy appeal a $100 million judgment awarded to Conex International Corporation on claims for tortious interference with existing contracts, business disparagement, and tortious interference with prospective contracts. In 2001, Conex entered into a contract with Atofina for a turnaround project at Atofina’s Port Arthur facility. Some time later, in September 2001, Atofina hired Fluor as a consultant on part of the turnaround project to provide engineering advice for a head-to-shell weld and eventually on guidelines for post weld heat treatment of that weld and various other welds performed by Co-nex and its subcontractors. Conex contends that in the course of a 2001 turnaround at an Atofina facility, Fluor and its employee Antalffy disparaged Conex to their mutual client, Atofina. Because we find the evidence supporting the jury’s liability findings is factually insufficient, we reverse the judgment and remand the case for a new trial on Conex’s claims against Fluor. Because the evidence supporting the jury’s liability findings as to Antalffy is legally insufficient, we render judgment that Conex take nothing as to Antalffy.

The appellants challenge the legal and factual sufficiency of the evidence supporting the jury’s findings regarding liability on Conex’s claims for business disparagement and tortious interference. In a challenge to the legal sufficiency of the evidence regarding an issue on which the appellant did not have the burden of proof, we “view the evidence in the light favorable to the verdict, crediting favorable evidence if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not.” City of Keller v. Wilson, 168 S.W.3d 802, 807 (Tex.2005). We will sustain a no evidence challenge if:

(a) there is a complete absence of evidence of a vital fact,
(b) the court is barred by rules of law or of evidence from giving weight to the only evidence offered to prove a vital fact,
(c) the evidence offered to prove a vital fact is no more than a mere scintilla, or
(d) the evidence conclusively establishes the opposite of the vital fact.

Merrell Dow Pharm., Inc. v. Havner, 953 S.W.2d 706, 711 (Tex.1997) (citing Robert W. Calvert, “No Evidence” and “Insufficient Evidence” Points of Error, 38 Tex.L.Rev. 361, 362-63 (1960)). In a factual sufficiency review, we consider and weigh all the evidence, and will set aside the verdict only if the evidence is so weak or the finding is so against the great weight [433]*433and preponderance of the evidence that it is clearly wrong and unjust. Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986).

The appellants’ first issue challenges the legal and factual sufficiency of the evidence supporting Conex’s claim of business disparagement. To prevail on a business disparagement claim, the plaintiff must prove: (1) publication by the defendant of false and disparaging words about the plaintiff; (2) malice; (8) lack of privilege; and (4) special damages to the plaintiff. Hurlbut v. Gulf Atl. Life Ins. Co., 749 S.W.2d 762, 766 (Tex.1987). In this case, the trial court asked the jury for findings on eight statements. In this context, we address the evidence relevant to each statement to determine if the jury’s positive findings are supported by sufficient evidence.

The first statement appears in an email dated September 19, 2001, from Atofina employee John Walls, to twelve people, including Conex employee Steve Pellerin, Atofina employee John Carrens, and Fluor employee Leslie Antalffy. The email includes the following sentence, found by the jury to be a disparaging statement published by both Fluor and Antalffy about Conex: “WRC 452 is the recognized document in the industry to satisfy this requirement, i.e., you can’t just slap up the high temperature bands and call it done without checking it out.” 1

First, the appellants contend this statement was not made by Antalffy or Fluor. The email’s author, John Walls, was an employee of Atofina. The document purports to contain the highlights of a meeting conducted earlier that day and attended by three Atofina employees (including Walls), two Fluor employees (including Antalffy), and Vince Cuccio of Co-nex. Because the email memorializes a meeting attended by Antalffy, it is possible that the statement at issue reveals a statement that Antalffy or the other Fluor employee made during the meeting. Cuccio testified that Antalffy and Walls were having an “animated conversation about the use of something I had never heard before, WRC-452, as being like the recognized standard or requirements for this job.” According to Cuccio, Antalffy said, “ ‘John, isn’t that correct, this WRC-452 is the recognized standard for the post weld heat treating.’” Cuccio did not attribute to Antalffy any comment about slapping up high temperature bands without checking. Moreover, Walls’s email does not state that Conex had done anything without checking, or that Antalffy or anyone else at Fluor had stated that Conex had done anything without checking it. Cuccio indicated that the discussion was about the procedures for the upcoming turnaround. Thus, as to the first statement, there is no evidence that either Fluor or Antalffy made a false disparaging statement about Conex.

The second and third statements appear in an email sent by Walls on October 24, 2001. The jury found Fluor made the following statements, and that Conex was by implication one of the “constructors” mentioned therein, as follows:

“Since heat treating is a specialized service industry, the expectation is that they and the constructors that use them would keep up with the technical requirements and developments in that industry and have the expertise to implement them. Unfortunately, that is not always the case. In the past, some vendors may have ignored the evaluation requirement because it was difficult to do.” (emphasis added).

[434]*434The drafts of this email and the distributed version were sent to George Miller, a Fluor engineer. Walls asks both Miller and Antalffy to “please advise if I have misquoted any of this or if you have something to add.” Walls wrote on an early draft of the email that “[t]he intent is to make sure my management understands why we are doing this.” The stated purpose of the email is to describe the “high points” of a discussion Walls had with Miller “about the science involved in PWHT and how it has changed over the years.”2 The statements Conex contends are defamatory were added in an interim draft of the document. Since the email describes a discussion between Walls and Miller, it is possible the Fluor employee made statements that are reflected in the document. There is, however, no evidence that the statements referred specifically to Conex. The document is about a procedure being performed by Conex or its subcontractors, but the statements do not imply that Miller had stated as a fact that Conex lacked the expertise to implement the technical requirements or that Conex had ignored an evaluation requirement in the past.

A statement, both false and critical, can only be defamatory if it is directed at the plaintiff.

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Bluebook (online)
273 S.W.3d 426, 2008 Tex. App. LEXIS 9472, 2007 WL 5860048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fluor-enterprises-inc-v-conex-international-corp-texapp-2008.