Janssen Pharmaceutica, Inc. v. Melissa M. Martinez

Court of Appeals of Texas·Decided February 19, 2009·No. 08-06-00265-CV·Published

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

§ JANSSEN PHARMACEUTICA, INC., No. 08-06-00265-CV § Appellant, Appeal from § v. 168th District Court § MELISSA M. MARTINEZ, of El Paso County, Texas § Appellee. (TC # 2004-2737) §

CORRECTED OPINION

Janssen Pharmeceutica, Inc. appeals a jury verdict in favor of Melissa M. Martinez on

employment discrimination claims. Because the evidence at trial was not legally sufficient to

support Martinez’s claims, we reverse and render judgment in favor of Janssen.

FACTUAL SUMMARY

Martinez was employed by Janssen as a pharmaceutical sales representative for certain

medications aimed at the central nervous system. She was hired in May 2002, after interviewing

with Jim Ball, Janssen’s District Manager for the South Central Region, and Rob Kraner, Janssen’s

Business Director for the South Central region. Ball reported to Kraner.

Martinez was to call on physicians, to sell the products she was promoting, and to enter calls

into Janssen’s computer system, known as Siebel. Janssen’s policy required that sales

representatives enter a summary of sales calls to physicians into the Siebel system immediately

following the call. Calls are classified as reportable or nonreportable. Reportable calls require face-

to-face interaction with the customer about the product. Janssen expected that eight reportable sales

calls would be made each work day. Janssen’s sales representatives were provided with a company car and company fuel card. Each time gas was purchased, a representative was required to enter the

odometer reading of the company car. Mileage must also be entered in expense reports.

When Martinez began working for Janssen, Jim Ball was her supervisor. Her territory

included El Paso and portions of West Texas. After a realignment of sales districts in December

2002, Martinez began reporting to Shannon Groppenbacher, a District Manager based in Phoenix,

who in turn reported to Rob Kraner until December 2004. After the realignment, Martinez’s territory

covered El Paso and southern New Mexico, including the cities of Las Cruces, Alamogordo,

Carlsbad, Hobbs, and Roswell. Of all the employees whom Groppenbacher supervised, Martinez

was the only Hispanic.

In December 2002, Groppenbacher invited Martinez to Arizona so they could become

acquainted and so that Martinez could meet the other sales representatives in the new district.

Groppenbacher also traveled to El Paso in January 2003 to meet with Martinez and to coach her on

her sales performance. Groppenbacher had positive comments about the job Martinez was doing.

Martinez learned she was pregnant in January 2003 and she informed Groppenbacher in

February. Due to complications, Martinez took a two-week leave of absence and Groppenbacher

helped her obtain leave. In April, Groppenbacher received a complaint from Dr. Fizbein, a physician

in Las Cruces, that he was not receiving good service from Martinez and that it was difficult for him

to obtain samples. Groppenbacher also received calls from other physicians in southern

New Mexico who were seeking a representative. These complaints prompted Groppenbacher to

report the matter to Kraner. Groppenbacher was instructed to investigate, either by Kraner or Grayce

Hubbard, an employee in Janssen’s human resources department. Groppenbacher and Kraner

obtained fuel log reports for Martinez, the log of her call entries into the Siebel system, her expense

-2- reports, and mileage information from MapQuest.com. Upon comparing the dates that Martinez

made reportable calls, the dates and locations that she refueled her car using the company fuel card,

and the mileage required to travel from El Paso for the calls, Groppenbacher and Kraner concluded

that Martinez could not have made all of the sales calls that she reported. Groppenbacher noticed

that the call entries made on January 30, 2003 were for visits in Alamogordo, Roswell, Carlsbad, and

Las Cruces. Groppenbacher determined that the drive from El Paso to visit these cities was

approximately 470 miles. Martinez’s fuel reports indicated that she had refueled in New Mexico on

the afternoon of January 30. Although Groppenbacher conceded that it might have been possible

to travel 470 miles on one tank of gas, she discovered that Martinez had not used the fuel card again

until February 24. But Martinez had entered calls into the system for office visits in the El Paso and

Las Cruces area on January 31, February 4, February 5, and February 7. Groppenbacher decided that

it would have been impossible for Martinez to travel to all of the reported locations and only refuel

the vehicle once. Groppenbacher also noticed a January 30 call report to Dr. Pezzarossi in Roswell,

New Mexico. When she called the office, Groppenbacher was told by the receptionist that

Dr. Pezzarossi had moved to Albuquerque and had not practiced in Roswell since the summer of

2002. Martinez also entered a call for Pezzarossi in Roswell on March 24. Martinez reported a call

to the office of Dr. Gervais on the same date and later admitted to Groppenbacher that she had not

made the call. Martinez had refueled her company vehicle on March 20, and reported calls on

March 21 in El Paso and Las Cruces. Martinez next reported calls for March 24 (including calls to

Dr. Pezzarossi and Dr. Gervais) for locations in Alamogordo and Roswell. Groppenbacher

determined that the approximate round trip mileage was 460 miles. Martinez reported additional

calls in El Paso and Las Cruces on March 25. According to the fuel reports, Martinez did not refuel

-3- her vehicle until March 25 at 9:10 p.m.

Groppenbacher also contacted physicians in the area. She called the office of Dr. Danckzk

about Martinez’s reported visit on February 28. The nurse told Groppenbacher that she had worked

in the office Monday through Friday each day for the preceding seven months and did not recall

seeing a representative during that time. Another nurse who had worked there for a longer period

of time, did not recall seeing a representative either.

Groppenbacher also found that the calls that Martinez had reported for February 28 would

have included Hobbs and Carlsbad. Groppenbacher calculated that the round-trip mileage to these

cities from El Paso was approximately 460 miles. Martinez refueled her vehicle on February 24, but

did not refuel again until March 4. She had reported calls for March 3 and 4 in El Paso and Las

Cruces. Again Groppenbacher concluded it would not have been possible for Martinez to make all

of these visits on a single tank of gas.

Information concerning the date a call report was entered into the Siebel computer system

was available from Janssen’s home office, but the data could not be viewed by sales representatives.

Groppenbacher obtained that information and determined that Martinez had input certain call reports

weeks after the date of the call. Groppenbacher and Kraner concluded that Martinez had falsely

entered calls for doctors that she had not seen.

Janssen had a four-step disciplinary procedure in place. The first step was a verbal warning.

The next step consisted of a written statement describing the incident and warning the employee that

he or she needed improvement. The third step was a final written warning. The last step, known as

a Group I violation, was termination. Groppenbacher communicated her findings to Janssen’s

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