Fort Worth Independent School District v. Palazzolo

498 S.W.3d 674, 2016 Tex. App. LEXIS 7195, 2016 WL 3667867
CourtCourt of Appeals of Texas
DecidedJuly 7, 2016
DocketNO. 02-14-00262-CV
StatusPublished
Cited by5 cases

This text of 498 S.W.3d 674 (Fort Worth Independent School District v. Palazzolo) 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
Fort Worth Independent School District v. Palazzolo, 498 S.W.3d 674, 2016 Tex. App. LEXIS 7195, 2016 WL 3667867 (Tex. Ct. App. 2016).

Opinion

OPINION

BILL MEIER, JUSTICE

I. Introduction

Appellant Fort Worth Independent School District (FWISD) appeals from a final judgment rendered on a jury verdict in favor of Appellee Joseph Palazzolo on his claim for violation of the Texas Whis-tleblower Act (TWA). See Tex. Gov’t Code Ann. § 554.002(a) (West 2012). In addition to challenges to the damages and attorneys’ fees awards, FWISD argues that the trial court abused its discretion by failing to submit a jury question on an affirmative defense set out in the TWA. See id. § 554.004(b) (West 2012). We will [677]*677sustain FWISD’s charge-error issue, not reach its other three issues, and reverse and remand for a new trial.

II. Background

Palazzolo was an assistant principal at FWISD’s Arlington Heights High School (AHHS) during the 2008/2009 and 2009/2010 school years. He oversaw the entire ninth grade class and interacted regularly with the ninth grade teachers and other administrators.

In the spring of 2010, a number of troubling issues arose at AHHS that contributed to an atmosphere or culture at the school that several staff members described as “extremely uncomfortable,” “combative,” “hostile,” “chaotic,” or “unsettling.” The primary concerns included the ongoing behavior- of the athletic director, who was improperly exercising administrative functions and acting unprofessionally around the staff and students, and allegations that some AHHS administrators were fraudulently altering students’ attendance records in violation of Texas law.

In late May or early June 2010, Michael Menehaca, the Director of FWISD’s Office of Professional Standards (OPS), initiated an investigation after receiving reports from several different sources, including Palazzolo, regarding the alleged wrongful conduct at AHHS. As the AHHS campus representative for a diversity program that FWISD had established to educate its employees about unlawful workplace discrimination, harassment, and retaliation, Palaz-zolo was responsible for receiving reports from staff of improper conduct and presenting them to OPS. Palazzolo turned over a number of anonymous statements that he had received from several teachers and provided Menehaca with additional information involving the allegations of attendance fraud.

Sometime in mid-June 2010, Palazzolo received a performance appraisal indicating that he needed to improve his approach to resolving conflicts with parents, staff, and students. Later in the month, Palazzolo met with an FWISD executive director and AHHS’s principal, and after Palazzolo explained that he had not been informed of anything to substantiate the negative review, the performance appraisal was amended to delete it.

Around the same time as the meeting about the appraisal, Palazzolo learned that FWISD had decided to reassign him to a different school (the International Newcomers Academy) with a reduction in pay. Palazzolo filed' a grievance and complained that he was being demoted in retaliation for reporting the problems at AHHS. In early July 2010, Palazzolo met with an FWISD deputy superintendent, and the decision was made to instead reassign him to Western Hills High School, along with a reinstatement of pay.1

Meanwhile, Menehaca continued the AHHS investigation—which he described as “allegation after allegation after allegation being forwarded to us or told to us, OPS, myself’—and in July 2010, an AHHS assistant principal lodged allegations of improper conduct against Palazzolo. OPS expanded its investigation to include those allegations, and it proceeded to uncover numerous written complaints that were made by parents, staff, and students against Palazzolo regarding his treatment of students and staff at AHHS, including his creating a “hostile work environment,” exhibiting “forceful” behavior, and demon[678]*678strating “disdain” for policies with which he disagreed.2

By August 2010, Palazzolo thought that nothing would come of FWISD’s investigation into the allegations involving AHHS, so on August 9, 2010, he filed -a complaint with the Texas Education Agency (TEA). His report stated in part, “In my capacity as Campus Diversity Officer, I had several teachers report to m[e] countless instances of attendance falsification; grade changing; inappropriate conduct with and before students; and hostile work environment. ... I do not know who to report this to as the District has repeatedly failed to fully investigate the allegations.,” On August 26, 2010, FWISD placed Palaz-zolo on paid administrative leave. Just two days earlier, it had received a letter from the parents of an AHHS student complaining that Palazzolo had grabbed their daughter.

Dr. Reyna detailed the findings from the AHHS investigation in a report dated October 15, 2010. According to Dr. Reyna, “there had been some egregious mismanagement of the school.” 3 On October 26, 2010, Dr. Reyna submitted a report to FWISD’s Board of Education recommending that Palazzolo’s employment with FWISD be terminated for good cause based upon six grounds that were unrelated to his reports of wrongdoing at AHHS. The Board voted 6 to 3 to terminate Palazzolo’s employment.

Palazzolo appealed his termination to the TEA, after which a hearing examiner ruled in favor of FWISD. Palazzolo then appealed to the Texas Commissioner of Education, who reversed the hearing examiner’s decision because FWISD had paid the examiner an amount that exceeded the statutory cap. The case was then remanded to FWISD, which had the option of either pursuing another hearing or terminating Palazzolo and paying him one year’s salary. The Board chose the latter option by a unanimous vote on February 14, 2012.

Palazzolo sued FWISD in July 2012, alleging that, in violation of the Whistleblower Act, it had terminated his employment “in retaliation for his good faith reports of violations of law to appropriate law enforcement authorities.” In addition to a general denial, FWISD affirmatively pleaded “that it would have taken the action against [Palazzolo] with respect to his employment based solely on information, observation, or evidence that is not related to (and regardless of) [Palazollo’s] alleged reports of violations of the law.”

At trial, Palazzolo presented evidence that FWISD had terminated his employment in retaliation for making reports about the problems at AHHS. Conversely, FWISD presented evidence that the reports played no role in the Board’s deci-sión to terminate Palazzolo’s employment; rather, he was fired for the reasons identified in Dr. Reyna’s October 26, 2010 report. At the brief charge conference, the trial court denied FWISD’s objection to the “noninclusion” of a jury question on its government code section 554.004(b) defense and submitted the following question on liability:

Was Mr. Joseph Palazzolo’s report to an appropriate law enforcement authority'made in good faith and a cause of [679]*679Fort Worth Independent School District’s termination of Mr. Palazzolo?
The report was a cause of the termination if it would not have occurred when it did but for the report’s being made, Mr. Joseph Palazzolo does not have to prove the report was the sole cause of the termination.
“Good faith” means that:

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498 S.W.3d 674, 2016 Tex. App. LEXIS 7195, 2016 WL 3667867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fort-worth-independent-school-district-v-palazzolo-texapp-2016.