Mars, Inc. v. Gonzalez

71 S.W.3d 434, 2002 WL 122745
CourtCourt of Appeals of Texas
DecidedApril 17, 2002
Docket10-99-166-CV
StatusPublished
Cited by4 cases

This text of 71 S.W.3d 434 (Mars, Inc. v. Gonzalez) 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
Mars, Inc. v. Gonzalez, 71 S.W.3d 434, 2002 WL 122745 (Tex. Ct. App. 2002).

Opinions

[436]*436OPINION

TOM GRAY, Justice.

Lino Gonzalez sued Mars, Incorporated and two independent contractors for libel. He won a 2 million dollar verdict against Mars. Mars appeals. We reverse and render.

Background

Gonzalez supervised two design contractors, Steve Morton and Jesse Tollison, at the Mars plant in Waco, Texas. The contractors claimed Gonzalez verbally abused them. Tollison claimed Gonzalez also physically assaulted him. The day Morton resigned his job, he composed a lengthy email (the Morton e-mail) discussing his displeasure with Gonzalez and discussing Gonzalez’s alleged unfavorable attributes. He distributed this e-mail through the Mars system to approximately 150 Mars mailboxes. Once officials at Mars discovered the e-mail, they met and devised a plan to remove it.

At the time of the Morton e-mail, Mars had already begun an investigation of Gonzalez. It was also discovered that Tollison was working on his own letter. Tollison also discussed Gonzalez’s alleged unfavorable attributes in his letter. Management requested Tollison to finish writing the letter concerning his treatment by Gonzalez. Mars instructed Tollison to provide only Mars management with a copy of the completed letter. Contrary to Mars’s instructions, Tollison distributed the letter to people other than Mars management.

The Trial

The jury was asked:

Did Mars libel Lino Gonzalez?
Libel is a false communication to a third party in written or other graphic form which tends to injure a person’s reputation and thereby exposes the person to public hatred, contempt or ridicule ....

Under the general instructions, the jury was given the following instruction:

You are instructed that corporations such as Defendant Mars, by its very nature, cannot function without human agents and therefore, as a general rule, the actions of its corporate agents on behalf of the corporation are deemed the corporation’s acts.

Under this charge, which we do not endorse, Gonzalez was required to establish a libel by proving a false communication by Mars to a “third party,” i.e., someone other than Mars and Gonzalez. The only communications at issue in the trial of this case were the Morton e-mail and the Tolli-son letter.

The charge included an instruction about qualified privilege. The instruction is as follows:

You are instructed that a qualified privilege protects Mars from intracompany communications involving reasons for an employee’s alleged misconduct, but only so long as Mars does not abuse the privilege. To defeat the qualified privilege, Gonzales [sic] must prove with clear and convincing evidence that Mars acted with malice. “Malice” means to make a statement knowing that it is not true, or to act with reckless disregard for the statement’s truth.

Based on the record and briefs, we do not believe this instruction will impact our analysis. Gonzalez has not identified any “intracompany communication” he believes is a libel “involving reasons for an employee’s (Gonzalez’s) alleged misconduct” as required to satisfy the instruction on qualified privilege as given in the charge.

Publication

The publication of an allegedly libelous letter requires a showing that the [437]*437letter was received, read, and understood by a third person. Simmons v. Ware, 920 S.W.2d 438, 444 (Tex.App.—Amarillo 1996, no pet.); Putter v. Anderson, 601 S.W.2d 73, 78 (Tex.Civ.App.—Dallas 1980, writ ref'd n.r.e.). A corporation may be held liable for defamation by its agent if such defamation is referable to the duty owing by the agent to the corporation and was made in the discharge of that duty. Cotton Belt R.R. v. Hendricks, 768 S.W.2d 865, 870 (Tex.App.—Texarkana 1989, no writ) (citing Texam Oil Corp. v. Poynor, 436 S.W.2d 129 (Tex.1968)). The actions of an agent are not presumed to be within the scope of his authority. Id. (citing In re Westec Corp., 434 F.2d 195 (5th Cir.1970)). In this case the jury was instructed, “as a general rule, the actions of its corporate agents on behalf of the corporation are deemed the corporation’s acts.” (emphasis added). An agent who steps outside the boundaries of his authority acts independently and not on behalf of the corporation. See Randall’s Food Markets, Inc. v. Johnson, 891 S.W.2d 640, 647 (Tex.1995); Cotton Belt R.R., 768 S.W.2d at 871.

An employer has a conditional or qualified privilege that attaches to communications made in the course of an investigation following a report of employee wrongdoing. Randall’s, 891 S.W.2d at 646. The privilege remains intact as long as communications pass only to persons having an interest or duty in the matter to which the communications relate. Id.

Sufficiency of the Evidence

In its first and fourth issues, Mars contends there is no evidence that it published the Morton e-mail or Tollison letter to a third party. In reviewing legal insufficiency points, we consider only the evidence and inferences that, when viewed in their most favorable light, tend to support the finding, and disregard all evidence and inferences to the contrary. Davis v. City of San Antonio, 752 S.W.2d 518, 522 (Tex.1988); Marshall Field Stores, Inc. v. Gardiner, 859 S.W.2d 391, 396 (Tex.App.—Houston [1st Dist.] 1993, writ dism’d w.o.j.). If there is any evidence-of probative force to support the finding, the point must be overruled and the finding upheld. Sherman v. First Nat’l Bank, 760 S.W.2d 240, 242 (Tex.1988); Marshall Field, 859 S.W.2d at 396. We are required to review the sufficiency of the evidence based upon the charge submitted, even if erroneous. Osterberg v. Peca, 12 S.W.3d 31, 55 (Tex.2000); Larson v. Cook Consultants, Inc., 690 S.W.2d 567, 568-569 (Tex.1985); Allen v. American Natural Ins. Co., 380 S.W.2d 604, 609 (Tex.1964); see also Wal-Mart v. Sturges, 52 S.W.3d 711, 729-730 (Tex.2001) (Justice O’Neil concurring).

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Mars, Inc. v. Gonzalez
71 S.W.3d 434 (Court of Appeals of Texas, 2002)

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71 S.W.3d 434, 2002 WL 122745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mars-inc-v-gonzalez-texapp-2002.