MICROSOFT CORPORATION, Appellant/Cross-Appellee v. Michael MERCIECA, Appellee/Cross-Appellant

502 S.W.3d 291, 2016 Tex. App. LEXIS 9327, 2016 WL 4479504
CourtCourt of Appeals of Texas
DecidedAugust 25, 2016
DocketNO. 14-15-00024-CV
StatusPublished
Cited by7 cases

This text of 502 S.W.3d 291 (MICROSOFT CORPORATION, Appellant/Cross-Appellee v. Michael MERCIECA, Appellee/Cross-Appellant) 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
MICROSOFT CORPORATION, Appellant/Cross-Appellee v. Michael MERCIECA, Appellee/Cross-Appellant, 502 S.W.3d 291, 2016 Tex. App. LEXIS 9327, 2016 WL 4479504 (Tex. Ct. App. 2016).

Opinion

OPINION

William J. Boyce, Justice

Microsoft Corporation appeals the trial court’s judgment in favor of former employee Michael Mercieca in this discrimination and retaliation suit filed under the Texas Commission on Human Rights Act (the “Act”). Microsoft contends that (1) there is no evidence to support a finding of constructive discharge; (2) there is no evidence of actionable retaliation; (3) Mercie-ca’s failure to mitigate his damages precludes an award of back pay; (4) “the compensatory damages are based solely on legally untenable mental anguish and punitive damages findings;” and (5) the attorney’s fees award is based on legally insufficient evidence.

Mercieca cross-appeals and contends that the trial court erroneously applied Texas Labor Code section 21.2585(d) to cap the jury’s compensatory and exemplary damages awards at $300,000.

We reverse the trial court’s judgment and render a take-nothing judgment in Microsoft’s favor because no evidence supports the jury’s constructive discharge finding. 1

Overview

Mercieca sued his Microsoft cóworker Tracy Rummel in April 2011 alleging that Rummel published false statements accusing Mercieca of sexual harassment. According to Mercieca, these false allegations caused him to experience a hostile work environment and harassment at Microsoft. 2 Mercieca filed an amended petition in Sep *294 tember 2011 naming Microsoft as a defendant. Mercieca alleged, among other things, that Microsoft (1) discriminated against him because of his age, gender, and national origin in violation of the Act; (2) sexually harassed him based upon the actions of Mercieca’s former manager, Lori Aulds; and (B) retaliated against Mer-cieca after he filed a formal complaint against his management team. 3

A jury trial was held from April 22, 2014, to May 7, 2014. The jury rejected Mercieca’s discrimination claim. The'jury found in favor of Mercieca on his retaliation claim premised on a finding of constructive discharge and ¿warded him $623,065 in back pay. The jury also awarded Mercieca $1,000,000 in compensatory damages for past mental anguish and $9,999,999.24 in exemplary damages. The trial court later conducted a two-day bench trial on attorney’s fees.

The trial court signed a final judgment on October 2, 2014, awarding Mercieca $623,065 in back pay; $77,840.20 in prejudgment interest on back pay; $300,000 in compensatory and exemplary damages pursuant to the damages cap in Texas Labor Code section 21.2585; $769,505.98 in attorney’s fees “through rendition of judgment, calculated using the lodestar method;” $192,376.50 as “an upward adjustment to the lodestar by a multiplier of 1.25;” conditional appellate attorney’s fees; expert fees; and costs. Microsoft filed motions for new trial and judgment notwithstanding the verdict, which the trial court denied. Microsoft filed a timely appeal, and Mercieca filed a timely cross-appeal.

Analyzing the parties’ appellate contentions requires consideration of extensive evidence concerning Mercieca’s employment history at Microsoft over nearly two decades. This history includes multiple telephone conversations taped by Mercie-ca, along with saved voicemails and scores of emails. It also includes circumstances that began in October 2009 and culminated in the cessation of Mercieca’s employment in March 2012.

A detailed description of the evidence at trial will set the stage for an analysis of Mercieca’s contention that he was constructively discharged from Microsoft because he was subjected to working conditions so intolerable that a reasonable person would feel compelled to resign.

Factual Background

Mercieca is a middle-aged man of British origin who worked in sales at Microsoft for nearly 18 years. Mercieca started his career at Microsoft in 1994 as a regional distribution sales manager in Melbourne, Australia. He relocated to Dallas, Texas in 1997 and worked as.a corporate account executive until 2001,

I. Mercieca Moves to Microsoft’s Austin Office in 2001

Together with his wife and young son, Mercieca moved to Austin, Texas so that Mercieca could work as a senior licensing consultant and a regional licensing specialist on Microsoft’s state and local government team.

Mercieca’s marriage ended in 2001. Mer-cieca started dating Lori Aulds that same year; at the time, Aulds also was a Microsoft employee in the Austin office working on a different team.- Mercieca and Aulds ended their dating relationship in December 2001. Aulds attempted to reconcile in January 2002 and left Mercieca “love voi-cemails” that he saved for more than a decade. Although Mercieca and Aulds did not continue dating, they remained friends *295 and “sporadically” had sexual relations until 2005.

Mercieca was promoted to a level 63 position in July 2002 and continued to work on the state and local government team in Austin. 4 He left this sales position in September 2004 and moved to Microsoft’s headquarters in Redmond, Washington to join Microsoft’s U.S. Original Equipment Manufacturers team as a Group Marketing Manager. This new job was a promotion for Mercieca to a level 64 position. Mercieca did not stay long in Redmond because he soon realized that the job was not a good fit; his son lived in Austin with his ex-wife and he “felt uncomfortable being more inside the office than out with customers. That’s really what [he] love[d] to do.”

Mercieca moved back to a sales position in Austin in December 2004 as a Partner Account Manager. In this role, Mercieca sold Microsoft products to customers (referred to as “partners”) to be preloaded on the customers’ equipment and computers before they were sold on the market. This job came with a $20,000 pay cut and a downgrade to a level 63 position.

II. Lori Aulds Becomes Mercieca’s Manager in 2007

Mercieca’s immediate manager left his position in September 2007. Mercieca, who was a Partner Account Manager on the Original Equipment Manufacturers team, considered applying for the vacant manager position. He changed his mind when he heard that Aulds wanted to apply. According to Mercieca, he and Aulds had remained friends over the years. Mercieca claimed Aulds had asked him not to reveal their past relationship. Mercieca supported Aulds’s application to become his manager by giving, her a good recommendation and stating, he would be “happy to work for Lori Aulds,” Aulds became Mercieca’s manager, in October 2007..

Mercieca received his . fiscal year 2008 performance review from Aulds in September 2008. Aulds gave him a “70%” ranking and “Achieved” rating. 5 'She gave Mercieca positive feedback and included positive feedback from five peers; Aulds also stated that she wanted Mercieca to develop more consistency, update more partner information on a regular basis, have a more developed career action plan, and take on more strategic projects.

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502 S.W.3d 291, 2016 Tex. App. LEXIS 9327, 2016 WL 4479504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/microsoft-corporation-appellantcross-appellee-v-michael-mercieca-texapp-2016.