Johnson & Johnson Medical, Inc. v. Sanchez

924 S.W.2d 925, 1996 WL 327171
CourtTexas Supreme Court
DecidedAugust 14, 1996
DocketD-4202
StatusPublished
Cited by171 cases

This text of 924 S.W.2d 925 (Johnson & Johnson Medical, Inc. v. Sanchez) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson & Johnson Medical, Inc. v. Sanchez, 924 S.W.2d 925, 1996 WL 327171 (Tex. 1996).

Opinions

ENOCH, Justice,

delivered the opinion of the Court,

in which PHILLIPS, Chief Justice, and GONZALEZ, CORNYN, and SPECTOR, Justices, join.

The motion for rehearing is overruled. Our opinion of November 16, 1995, is withdrawn and the following is substituted in its place.

This is a wrongful termination case. Because we agree that there is a fact issue [927]*927regarding when Martha Sanchez’s cause of action under former article 8307c of the Texas Workers’ Compensation Act1 accrued, we affirm the court of appeals’ judgment in part and remand her article 8307c claim to the trial court for further proceedings. But because we conclude that there is no evidence of fraud, we reverse the court of appeals’ judgment in part and render judgment that Sanchez take nothing on her fraud claim.

Sanchez worked for Johnson & Johnson Medical, Inc., frk/a Surgikos, Inc., as a material handler. Although Sanchez was not a member of the union at Johnson & Johnson, a collective bargaining agreement governed her employment there. Sanchez suffered an on-the-job injury on April 10, 1987, and shortly thereafter began a medical leave of absence. On November 20, 1987, after 120 days on medical leave, Johnson & Johnson placed Sanchez on “indefinite medical layoff,” but also informed her that she had recall rights. On several occasions, employees of Johnson & Johnson informed Sanchez that while there was no job currently available, she would be called back for the next available job. Johnson & Johnson never called Sanchez back to work.

On April 1,1991, Sanchez filed suit against Johnson & Johnson, alleging violations of article 8307c. Article 8307c prohibits discrimination against an employee because the employee filed a workers’ compensation claim. See Act of May 7, 1971, 62nd Leg., R.S., eh. 115, § 1,1971 Tex.Gen.Laws 884-85 (repealed 1993) (current version at TexLab. Code § 451.001). Sanchez later amended her pleading to add claims for fraud and breach of contract. The trial court granted summary judgment on Sanchez’s article 8307c claim, concluding that it was barred by the statute of limitations. After trial, but before jury deliberations, the court granted a directed verdict against Sanchez on her breach of contract claim.2 Finally, after the jury returned a $275,000 verdict in favor of Sanchez on her fraud claim, the trial court rendered judgment notwithstanding the verdict in favor of Johnson & Johnson.

The court of appeals reversed the summary judgment on Sanchez’s article 8307c claim, holding that Johnson & Johnson failed to conclusively prove either that Sanchez received unequivocal notice of her termination or when a reasonable person would have known that she had been terminated. 860 S.W.2d 503, 509-10. The court of appeals reversed the judgment notwithstanding the verdict with regard to Sanchez’s fraud claim, holding that there was some evidence of actionable fraud, id. at 511, that the fraud claims were not preempted, id. at 512-13, and that benefit-of-the-bargain damages and mental anguish damages were recoverable for fraud. Id. at 514-15. Finally, the court of appeals held that Sanchez could recover exemplary damages. Id. at 515.

I

Johnson & Johnson first asserts that the trial court correctly granted summary judgment on the ground that Sanchez’s article 8307c claim was barred by the statute of limitations. We disagree.

When a party moves for summary judgment based upon an affirmative defense, the movant must establish each element of its defense as a matter of law. Munoz v. Gulf Oil Co., 693 S.W.2d 372, 373 (Tex.1984). A suit for violation of article 8307c must be filed within two years after such cause of action accrues. See Almazan v. United Servs. Auto. Ass’n, 840 S.W.2d 776, 780 (Tex.App.—San Antonio 1992, writ denied). Thus, in order to prevail on its motion for summary judgment, Johnson & Johnson is required to show that Sanchez did not file suit within two years of the accrual of her article 8307c claim.

A

To determine whether Sanchez timely filed her article 8307c claim, we must first determine when that claim accrued. In con[928]*928sidering when an article 8307c claim accrued, the court in Thurman v. Sears, Roebuck & Co. examined when a cause of action accrued under the Age Discrimination in Employment Act. 952 F.2d 128, 138 (5th Cir.), cert. denied, 506 U.S. 845, 113 S.Ct. 136, 121 L.Ed.2d 89 (1992). The Fifth Circuit held that “the limitations period for a suit for wrongful termination under article 8307c will commence when the employee receives unequivocal notice of his termination or when a reasonable person would know of his termination.” Id. at 134. In coming to its conclusion, the Fifth Circuit relied heavily on Bonham v. Dresser Indus., Inc., 569 F.2d 187 (3d Cir.1977), cert. denied, 439 U.S. 821, 99 S.Ct. 87, 58 L.Ed.2d 113 (1978). As noted in Thurman, the Bonham court was suspect of any rule that focused on the employer’s termination date, reasoning:

[A] company may use different termination dates for different purposes_ Moreover, we would be wary of any approach which determines the timeliness of an employee’s suit against his employer solely on the basis of records which are within the exclusive control of the employer. On the other hand, we would also view with disfavor a rule that penalizes a company for giving an employee periodic severance pay or other extended benefits after the relationship has terminated rather than severing all ties when the employee is let go.

Bonham, 569 F.2d at 191-92; see also Luna v. Frito-Lay, Inc., 726 S.W.2d 624, 628 (Tex.App.—Amarillo 1987, no writ) (“accrual of an action for termination of employment under federal statutes occurs when the employee is informed that his employment will be terminated, not when it actually is terminated”). The Thurman court observed that this unequivocal notice or reasonable knowledge of termination threshold adequately addressed the concerns raised in Bonham and would “serve to eliminate ambiguities as to the commencement date of the limitations....” Thurman, 952 F.2d at 134. We agree with the Fifth Circuit that this threshold “should be utilized in determining when facts exist authorizing a claimant to seek judicial relief for wrongful termination under article 8307c.” Id. A cause of action for wrongful termination under article 8307c accrues when the employee receives unequivocal notice of his or her termination or when a reasonable person should have known of his or her termination.

B

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Bluebook (online)
924 S.W.2d 925, 1996 WL 327171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-johnson-medical-inc-v-sanchez-tex-1996.