Hertz Equipment Rental Corporation v. Kyle Barousse

365 S.W.3d 46, 2011 WL 3207793, 2011 Tex. App. LEXIS 5798
CourtCourt of Appeals of Texas
DecidedJuly 28, 2011
Docket01-10-00949-CV
StatusPublished
Cited by27 cases

This text of 365 S.W.3d 46 (Hertz Equipment Rental Corporation v. Kyle Barousse) 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
Hertz Equipment Rental Corporation v. Kyle Barousse, 365 S.W.3d 46, 2011 WL 3207793, 2011 Tex. App. LEXIS 5798 (Tex. Ct. App. 2011).

Opinion

OPINION

JANE BLAND, Justice.

Kyle Barousse, an employee of Hertz Equipment Rental Corporation (Hertz), filed a worker’s compensation claim after he sustained injuries in a collision that occurred while he was riding as a passenger in a company vehicle. Hertz fired Barousse the day he returned from medical leave for those injuries, and Barousse sued Hertz under section 451.001(1) of the Texas Labor Code, contending that it terminated his employment in retaliation for filing the worker’s compensation claim.

After a bench trial, the trial court entered judgment awarding Barousse $665,000 in compensatory damages and $100,000 in exemplary damages. Hertz challenges the legal and factual sufficiency of the evidence supporting the trial court’s retaliatory discharge finding and its compensatory and exemplary damages findings. Hertz also contends that the trial court abused its discretion in excluding evidence of Barousse’s settlement of his personal injury lawsuit.

We hold that legally and factually sufficient evidence supports the trial court’s finding that Hertz violated the Texas workers’ compensation anti-retaliation statute and the compensatory damages award, but the evidence does not support the punitive damages award. We further hold that the trial court did not abuse its discretion in excluding evidence of Bar-ousse’s personal injury settlement. We therefore vacate the award of punitive damages and affirm the remainder of the judgment.

Background

Barousse, an eighteen-year employee of Hertz, held the position of region sales director for the central region. While out on a sales call on September 13, 2006, Barousse sustained serious back injuries after a truck ran into the company-owned vehicle in which he was riding.

Barousse initially paid his medical expenses out-of-pocket because he knew that the company did not want worker’s compensation claims on its records. After trying to work for a few weeks, Barousse found that the injuries prevented him from continuing as before. On October 2, 2006, he filed a claim for workers’ compensation and took a month’s leave of absence.

At that time, Joe Newman had been the region sales manager and Barousse’s immediate supervisor for approximately three months. In Barousse’s absence, Newman, with the assistance of region human resources manager Regina Richardson, prepared memoranda to Barousse on October 10 and October 31. The first, entitled “Unsatisfactory Job Performance and 90-day Action Plan,” itemized tasks that he felt required immediate improvement and warned Barousse that he would “be reevaluated on your performance ev *52 ery 30 days for the next 90 days[,]” warning that, “[i]f the results of your reevaluation do not show significant improvement, your employment with [Hertz] will be terminated.” In the second memo, entitled “Unsatisfactory Performance,” Newman listed Barousse’s failure to meet numerous job responsibilities and goals, including monthly goals.

Shortly after Barousse returned from medical leave, Newman met with him about his annual performance appraisal. Newman gave Barousse — who had previously received average reviews from his prior supervisor — the lowest possible rating of “unsatisfactory,” meaning that his performance was unacceptable. The following week, Newman gave Barousse a written warning for unsatisfactory job performance, listing “several serious performance transgressions.” Like the first October memo, this memo warned that Barousse’s “[f]ailure to show consistent improvement with the issues listed and improve your performance will result in further disciplinary action, up to and including termination.”

By November 29, Barousse determined that he could not perform his usual job duties without experiencing intense pain and went back on workers’ compensation leave. This time, Barousse remained on leave for several months.

Meanwhile, Hertz began an effort to restructure its work force. Mark Alewel, the regional vice president, led the Houston regional office in devising a plan. By February 2007, Hertz management had identified Barousse as a candidate for layoff. Alewel also slated the region sales director position in the Dallas office, held by Kevin Smith, for elimination. As soon as the layoff plans were finalized in March, Alewel informed Smith that his position had been eliminated and offered Smith another position within the company, which he accepted. Three other region sales directors remained in their positions, and two years later, when their positions also were eliminated, they were offered and accepted other jobs with Hertz. Alewel and Newman consulted with human resources about the timing of Barousse’s layoff and decided to wait to implement the decision when Barousse received a medical release and returned from leave.

In late September 2007, Barousse contacted Hertz human resources and informed Richardson that he was released to return to work as of October 1, 2007. Richardson asked Barousse to come to the office immediately. With Newman present, Richardson informed Barousse that the company had eliminated his job and that he was being laid off. Barousse received a severance packet offering him enhanced severance pay in exchange for a release of claims. Barousse declined to sign the release and filed this suit.

In its final judgment, the trial court ordered Hertz to pay Barousse “compensatory damages in the sum of $665,000.00 and exemplary damages of $100,000,” with prejudgment interest on the $54,477.25 attributable to past damages. Relevant to this appeal, the trial court entered the following findings of fact and conclusions of law in support of its judgment:

• Barousse was discouraged from filing a valid workers’ compensation claim.
• Mark Alewel, while acting within the course and scope of his employment as regional vice president, made the decision to terminate Mr. Barousse.
• The other four region sales directors were employees similarly situated to Barousse. Each of these similarly situated employees were offered alternate employment within Hertz at the time they were advised that their positions had been eliminated.
*53 • Barousse was not offered alternate employment at the time he was advised his position was eliminated.
• Hertz discharged Barousse because he filed a worker’s compensation claim in good faith, in violation of section 451.001 of the Texas Labor Code.
• Hertz acted with malice and gross negligence, causing harm to Barousse.

Hertz filed a request for additional findings of fact and conclusions of law, contending that the trial court omitted essential findings to show that the decision-makers evinced a specific intent to harm Barousse, namely: (1) that Barousse was physically able to perform the duties of region sales director at the time of his discharge; (2) that any alternate jobs paying comparable salaries and benefits were available at the time of Barousse’s discharge; (3) relating to the nature, duration, and severity of Barousse’s mental anguish; and (4) to support the punitive damages award. The trial court denied Hertz’s request, and this appeal followed.

Discussion

I.

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Bluebook (online)
365 S.W.3d 46, 2011 WL 3207793, 2011 Tex. App. LEXIS 5798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hertz-equipment-rental-corporation-v-kyle-barousse-texapp-2011.