Marguerite Tamasy v. Lone Star College System

Court of Appeals of Texas·Decided October 12, 2021·No. 14-19-00883-CV·Published

Opinion

Reversed and Remanded and Majority and Concurring Opinions filed October 12, 2021.

In The

Fourteenth Court of Appeals

NO. 14-19-00883-CV

MARGUERITE TAMASY, Appellant V.

LONE STAR COLLEGE SYSTEM, Appellee

On Appeal from the 127th District Court Harris County, Texas Trial Court Cause No. 2015-71050

MAJORITY OPINION

Appellant Marguerite Tamasy filed suit against appellee Lone Star College System (“Lone Star”) for breach of her employment contract, alleging that Lone Star failed to make contributions to her designated pension plan. In what we construe as a single issue, Tamasy argues that the trial court erred by granting summary judgment in favor of Lone Star. We reverse and remand. I. BACKGROUND According to Tamasy, she began working for the University of Texas at Arlington (“UTA”) as a part-time employee in 1996. At that time, she enrolled in the Texas Retirement System (“TRS”) and began making contributions to a TRS retirement account. In 1998, she became a full-time faculty member at UTA, opted out of the TRS, elected to participate in the Optional Retirement Program (“ORP”), and began making contributions to an ORP account.1 In 2001, she became a full-time Assistant Professor of Nursing at Lone Star. Tamasy was employed by Lone Star from 2001 to 2015. Each year, Tamasy signed a new one-year employment contract. From 2001 to 2008, her contracts were essentially identical, stating in pertinent part that: This employment shall be on a full-time basis with employees working full time for the District as required by the Laws and Regulations of the State of Texas and the regulations of the District. Employees shall enjoy such privileges as Texas State Laws and Regulations and Policies that the District shall provide. In 2009, a new employment contract was utilized. The relevant portion states, “Employee shall also have those benefits, which are set forth in detail by System policy and laws of the State of Texas.” From 2010 to 2015, the employment contract evolved again and contained the following language concerning benefits:

In addition to other terms as stipulated in this Contract, Employee shall be extended those benefits which are set forth in detail by System policy and the State of Texas as may be amended. These include but are not limited to medical coverage, dental coverage,

1 The ORP allows individually defined contribution plans as an incentive for faculty members of state supported institutions of higher education. See Tex. Gov’t Code Ann. § 830.001. Under the ORP, employers have the responsibility to forward all contributions, including those made by the employee, by the employer, and by the state to a company selected by the employee to administer their ORP account. See id. §§ 830.201(a), (b), 830.2015, 830.202.

2 vision coverage, life and dependent life coverage, voluntary accidental and dismemberment (AD&D) coverage, long and short term disability coverage, Texflex account access, cobra coverage and retirement program participation in TRS, ORP, TIAA-CREF and/or TDA, when applicable. Employee is also eligible to receive paid leave for preapproved absences and pay for approved holidays. Tamasy alleges that when she began working for Lone Star in 2001, she informed both the TRS and Lone Star that she was vested, and had elected to participate, in ORP in place of TRS. Nevertheless, it is undisputed that from 2001 to 2015, instead of sending Tamasy’s contributions to ORP, Lone Star forwarded Tamasy’s retirement contributions, which were deducted from her compensation, to TRS, who erroneously received and administered the funds for fourteen years.

According to Tamasy, she first became aware of the situation when she sought to retire in 2015 and sent an online request for an estimate of her retirement benefits. She was informed that Lone Star had not made a single deposit into her ORP account and that instead, Lone Star had been forwarding her contributions to TRS. Lone Star issued Tamasy a check for $61,917.60, which only represented Tamasy’s personal contributions. TRS maintained that according to the then- existing statutes, it had no authority to refund contributions made by Lone Star or any lost interest on those contributions. Through her attorney, Tamasy returned the check and filed suit against TRS and Lone Star. TRS filed a plea to the jurisdiction, which the trial court denied.

While the suit was pending, the Texas Government Code was amended to allow the TRS to release funds held in error. See Act of May 26, 2017, 85th Leg., R.S., ch. 186, § 2 (codified at Tex. Gov’t Code Ann. § 830.108). Under this statute, the Legislature created a procedure for restoring the employee’s participation in the correct program, transferring credit for employer contributions, and the payment of interest at an annual rate of four percent. See id.

3 On December 7, 2018, Lone Star sent Tamasy a communication titled “ORP/TRS Employer Certification for Correction Under Texas Government Code § 830.108.” On August 30, 2018, Lone Star made payments to Tamasy’s designated ORP Trustee of $31,296.27 as the state contribution portion of her entitlement, and $20,546.61 as the required interest payment. In November 2018, Tamasy dismissed TRS from her suit, but maintained her claim against Lone Star. In her second amended petition, Tamasy alleged breach of contract as her sole cause of action, asserting that by failing to properly forward her contributions to the ORP account, Lone Star breached their employment contracts and caused “a substantial loss to Tamasy.” As a result of the alleged breach, Tamasy sought actual damages and attorney’s fees.

On May 2, 2019, Lone Star filed a combined traditional and no-evidence motion for summary judgment. In its motion, Lone Star argued that: 1) there was no evidence that Lone Star “has any independent contractual obligation to provide benefits to Tamasy”; 2) it is not a guarantor for the State of Texas; and 3) § 830.108 was intended to be an exclusive remedy for employees like Tamasy, and thus, she is not authorized to recover actual damages or attorney’s fees. On May 24, 2019, Tamasy filed a response.

On September 30, 2019, after conducting a hearing on the motion, the trial court granted the motion for summary judgment without specifying the grounds for the ruling. This appeal was timely filed on October 29, 2019.

II. MOTION FOR SUMMARY JUDGMENT In her sole issue, Tamasy argues that the trial court erred by granting Lone Star’s hybrid motion for summary judgment. More specifically, she argues that Lone Star breached its enforceable obligation to continue her ORP participation and that § 830.108 was not intended to be an exclusive remedy. Alternatively, she

4 argues that if § 830.108 was intended to be an exclusive remedy, then it retroactively deprives her of substantial rights. A. STANDARD OF REVIEW When a party moves for summary judgment on both traditional and no- evidence grounds, we address the no-evidence grounds first. See Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 600 (Tex. 2004); see also Carnegie Homes & Constr. LLC v. Turk, No. 14-16-00260-CV, 2017 WL 3927290, at *3 (Tex. App.— Houston [14th Dist.] Sept. 7, 2017, no pet.) (mem. op.). In a no-evidence motion for summary judgment, the movant represents that there is no evidence of one or more essential elements of the claims for which the nonmovant bears the burden of proof at trial. Tex. R. Civ. P. 166a(i). The burden then shifts to the nonmovant to present evidence raising a genuine issue of material fact as to the elements specified in the motion. Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 582 (Tex. 2006).

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