Kingsaire, Inc. D/B/A Kings Aire, Inc. v. Jorge Melendez

477 S.W.3d 309, 40 I.E.R. Cas. (BNA) 1704, 59 Tex. Sup. Ct. J. 122, 2015 Tex. LEXIS 1083, 99 Empl. Prac. Dec. (CCH) 45,449, 2015 WL 7950716
Texas Supreme Court·Decided December 4, 2015·No. NO. 14-0006·Published·Cited by 28 cases

Opinions

JUSTICE LEHRMANN

delivered'the' opinion of the Court.

The principal issue in this case is whether legally sufficient evidence supports the jury’s finding that the petitioner fired an employee because he filed a workers’ compensation claim. The trial court rendered judgment on the verdict, and the court of appeals affirmed, holding that legally and factually sufficient evidence supported the verdict and that the jury charge was legally correct. Because the employee has presented no evidence that his termination resulted from anything other than the uniform .enforcement of a reasonable leave policy, we reverse and render judgment for the petitioner.

[311]*311. I. Background

Petitioner Kingsaire,. Inc., doing business as Kings Aire, Inc. (Kings Aire), is a family-owned heating, ventilation, and air-conditioning company in El Paso. In May 2004, Kings Aire hired Jorge Melendez as a “helper tradesman” whose initial duties included welding frames for refrigeration units. A few months after he was hired, Melendez transferred to the electrical department as a helper. A Personnel Action Form reflects that, in March 2009, Kings Aire gave Melendez a' raise and promoted him from helper to “apprentice lead man.”

On July 2; 2009, Melendez was participating in demolition work at a job site when a light fixture fell and lacerated his wrist, cutting two tendons and the median nerve. He was taken to the emergency room and was met at the hospital by Fred Quintana, Kings Aire’s safety coordinator. Quintana assisted Meléndez with a workers’ compensation claim, and Kings Aire “initiated the filing” of the claim.' Melendez had surgery on his wrist on July 20, 2009.

On July 21, Kings Aire sent Melendez a notice about the Family and Medical Leave Act (FMLA) “in reference to your request for leave.” The notice informed Melendez that he was eligible for FMLA leave, that he was entitled to up to twelve weeks of unpaid leave in the calendar year, and that he would be required to furnish status updates every two weeks.1 The letter accompanying the notice stated that, effective July 3 (the first day Melendez was absent, because of his injury), Melendez would be “placed on Family Medical Leave during your workers compensation leave.” Melendez testified that he did not specifically request FMLA leave. However, the record does not reflect that he objected to that classification.

Over the next several months, Melendez provided the requested status reports from his treating physicians. When Melendez’s twelve weeks of FMLA leave expired on September 24, 2009, he had not been released to return to work. On September 28, Kings Aire informed Melendez by letter that his FMLA leave had expired and that his employment had been terminated September 25 pursuant to company policy. In the letter, Kings Aire invited Melendez to reapply for available positions when he obtained a physician’s release and was able to return to work.

One month later, Melendez, sued Kings Aire for breach of contract and for wrongfully discharging him.in retaliation for filing a workers’ compensation claim in good faith. He asserted several' additional claims relating to his termination that have been either abandoned or dismissed and are no longer at issue.2 Following a trial on the merits, the jury found in Melendez’s favor on both his breach-of-contract claim, which related to Kings Aire’s failure to remit accrued vacation pay upon his termination,3 and his retaliation claim. The trial [312]*312court rendered judgment on the jury’s verdict, awarding Melendez past and future lost earnings and employee benefits, vacation-pay damages, prejudgment interest on the past-damages awards, and attorney’s fees relating to the breach-of-contract claim.

Kings Aire appealed only the portion of the judgment on the retaliation claim, challenging the sufficiency of the evidence to support both liability and damages and arguing that the trial court erroneously charged the jury on that claim. The court of appeals affirmed, 416 S.W.3d 898 (Tex. App.-El Paso 2013), and we granted Kings Aire’s petition for review.

II. Background on Retaliation Claims

The Texas Labor Code states in pertinent part that “[a] person may not discharge or in any other manner discriminate against an employee because the employee has ... filed a workers’ compensation claim in good faith.” Tex. Lab. Code § 451.001(1). An employer who violates this statute is subject to a retaliation claim, which constitutes “an exception to the traditional doctrine of ‘employment at will’ found in Texas law.” Cont’l Coffee Prods. Co. v. Cazarez, 937 S.W.2d 444, 453 (Tex.1996) (citation and internal quotation marks omitted).

In Cazarez, we examined the issue of “what evidence is necessary to prove a retaliatory firing under section 451.0Q1.” Id. at 450. Applying the causation standard applicable to claims brought under the Whistleblower Act,4 we held that an employee must show that the employer’s prohibited action “would not have occurred when it did” absent the employee’s protected conduct. Id. (quoting Tex. Dep’t of Human Servs, v. Hinds, 904 S.W.2d 629, 637 (Tex.1995)).

A retaliation plaintiff generally may rely on circumstantial causation evidence. Haggar Clothing Co. v. Hernandez, 164 S.W.3d 386, 389 (Tex.2005) (per curiam). Such circumstantial evidence may include, for example, an employer’s expression of a negative attitude toward the employee’s injury, an employer’s discriminatory treatment of the employee compared with similarly situated employees, an employer’s failure to adhere to established company policy, and evidence that the employer’s stated reason for termination was false. Cazarez, 937 S.W.2d at 451 (citation omitted). We also confirmed in Cazarez that termination pursuant to the “[ujniform enforcement of a reasonable absence-control [policy] ... does not constitute retaliatory discharge.” Id. (quoting Tex. Division-Tranter, Inc. v. Carrozza, 876 S.W.2d 312, 313 (Tex.1994) (per curiam) (first alteration in Cazarez)). Accordingly, if termination “was required by the uniform enforcement” of such a policy, circumstantial evidence that could otherwise support a causal link is “immaterial.” Haggar Clothing, 164 S.W.3d at 388.

In Haggar Clothing, for example, a Haggar employee was injured at work, filed a workers’ compensation claim, and took leave. Id. at 387. A year later, Haggar informed the employee that her employment was being terminated pursuant to company policy that the maximum [313]*313time an employee could remain on leave, regardless of the reason, was one year. Id.

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Kingsaire, Inc. D/B/A Kings Aire, Inc. v. Jorge Melendez, 477 S.W.3d 309, 40 I.E.R. Cas. (BNA) 1704, 59 Tex. Sup. Ct. J. 122, 2015 Tex. LEXIS 1083, 99 Empl. Prac. Dec. (CCH) 45,449, 2015 WL 7950716 (Tex. 2015).

477 S.W.3d 309 (Kingsaire, Inc. D/B/A Kings Aire, Inc. v. Jorge Melendez) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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