Nagel Manufacturing & Supply Co. v. Ulloa

812 S.W.2d 78, 1991 Tex. App. LEXIS 1549, 1991 WL 107851
CourtCourt of Appeals of Texas
DecidedJune 19, 1991
Docket3-90-175-CV
StatusPublished
Cited by10 cases

This text of 812 S.W.2d 78 (Nagel Manufacturing & Supply Co. v. Ulloa) 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
Nagel Manufacturing & Supply Co. v. Ulloa, 812 S.W.2d 78, 1991 Tex. App. LEXIS 1549, 1991 WL 107851 (Tex. Ct. App. 1991).

Opinion

ON MOTION FOR REHEARING

SMITH, Justice.

The opinion issued by this Court on April 24,1991, is withdrawn, and the following is filed in lieu thereof.

Lucy Ulloa sued Nagel Manufacturing and Supply Co. (“Nagel”) for damages she sustained from being assaulted and sexually harassed by Nagel’s plant superintendent, Tommy Sanchez, and from being discharged in retaliation for reporting the offensive acts to management. The jury returned a verdict in favor of Ulloa awarding zero damages for mental or emotional harm from the assault, $7,100 for lost wages from the unlawful harassment, $15,-000 in exemplary damages and attorneys’ fees. The court rendered judgment in accordance with the jury verdict. Nagel brought a limited appeal complaining that the verdict does not support an award of exemplary damages. We affirm the trial court’s judgment.

In November 1987, Lucy Ulloa filed a charge of discrimination and retaliatory discharge with the Texas Commission on Human Rights. She received notice of her right to file a civil action under § 7.01(a) of the Texas Commission on Human Rights Act, Tex.Rev.Civ.Stat.Ann. art. 5221k, §§ 1.01-10.05 (1987 & Supp.1991) (“Human Rights Act”).

Ulloa brought three causes of action in state district court against Nagel: (1) unlawful harassment based on sex discrimination, retaliatory employment practices, and *80 retaliatory discharge; (2) assault; and (3) intentional infliction of emotional distress. Ulloa sought a declaration of her rights under the Human Rights Act, reinstatement to her job, an injunction prohibiting further sexual harassment, lost wages, compensatory and exemplary damages, and attorneys’ fees.

The jury found that: (1) Sanchez assaulted Ulloa; (2) in the course and scope of his employment; and (3) the assault proximately caused damage to Ulloa. The jury also found that: (1) Sanchez sexually harassed Ulloa; (2) proximately causing damage to her; and (3) she was terminated in retaliation for reporting Sanchez’ conduct to the assistant plant manager. The jury awarded $7,100 in lost wages resulting from the unlawful harassment, zero damages for mental anguish and emotional distress from the assault, attorneys’ fees, and $15,-000 in exemplary damages for the assault. The jury found in favor of Nagel on the action for intentional infliction of emotional distress.

Nagel filed a limited appeal complaining that the trial court erred in rendering judgment for exemplary damages, a remedy not available under the Human Rights Act, when the jury had awarded no actual damages for the assault. Because Nagel properly filed a limited appeal, we must presume that nothing omitted from the record is relevant to the disposition of the appeal. Tex.R.App.P.Ann. 53(d) (Pamph.1990); see also Producer’s Constr. Co. v. Muegge, 669 S.W.2d 717, 718 (Tex.1984). The statement of facts is not before this Court and because Nagel relies on the transcript alone to establish error, we restrict our review to the transcript to determine whether the district court erred in rendering a judgment for exemplary damages.

As a general rule the right to recover exemplary damages depends on a finding that the plaintiff suffered actual damages as a result of an underlying tort. Nabours v. Longview Sav. & Loan Ass’n, 700 S.W.2d 901, 903 (Tex.1985); Doubleday & Co., Inc. v. Rogers, 674 S.W.2d 751, 753-4 (Tex.1984). The plaintiff must allege, prove and secure jury findings on the existence and amount of actual damage sufficient to support an award of exemplary damage. Nabours, 700 S.W.2d at 903.

Nagel argues that because the jury found no actual damages resulting from the assault on Ulloa there is no basis for the trial court’s award of exemplary damages. We disagree. The jury found that the assault proximately caused damages to Ulloa. 1 While Ulloa failed to persuade the jury that she had suffered mental anguish or emotional distress as a result of the assault, 2 she proved that she had Sustained damages in the nature of lost wages as a result of the unlawful harassment by Na-gel’s employee. Because of the way the jury issues were framed, we hold that this finding supports the award of exemplary damages.

Sexual harassment, as the court defined it for the jury, “means to engage in unwelcome sexual advances, requests for sexual favors, sexually abusive or vulgar language, or other verbal, visual or physical conduct,” if compliance is made a condition of employment or used as a basis for an employment decision or if such conduct interferes with work performance or creates an intimidating, hostile or offensive working environment. 3 This definition of *81 harassment, which includes physical conduct, overlaps with the court’s definition of assault: “You are instructed that Mr. Sanchez committed an assault if Mr. Sanchez intentionally or knowingly caused physical contact with Ms. Ulloa when Mr. Sanchez knew or should reasonably have believed that Ms. Ulloa would regard the contact as offensive or provocative.” 4 Not all sexual harassment includes unwelcome physical contact; but when the jury found that Na-gel’s employee committed an assault and committed unlawful harassment, the trial court properly concluded that the award of lost wages sounded in tort and supported the award of exemplary damages. The findings that there was an assault and that the assault proximately caused Ulloa’s damages 5 support this interpretation.

Nagel relies on a long line of Texas cases holding that there must be actual damages to support an award of exemplary damages. See Juliette Fowler Homes, Inc. v. Welch Assoc., Inc., 793 S.W.2d 660, 667 (Tex.1990); Nabours, 700 S.W.2d at 904; Doubleday, 674 S.W.2d at 753-4. Two rationales underlie the rule requiring actual damages to support an award of exemplary damages: 1) the law should not punish wrongful conduct in the absence of actual injury, and 2) an actual damages award helps the court insure that exemplary damages are a product of reason not passion. See Consolidated Texas Financial v. Shearer, 739 S.W.2d 477, 480 (Tex.App.1987, writ ref’d). In the present case, the jury found that Ulloa sustained actual injury and awarded actual damages in an amount that gives this court a “yardstick” to hold that the exemplary damages were not excessive.

More specifically Nagel argues that exemplary damages can be awarded only when the plaintiff receives actual damages for which exemplary damages are recoverable. Texas Nat’l Bank v. Karnes,

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Bluebook (online)
812 S.W.2d 78, 1991 Tex. App. LEXIS 1549, 1991 WL 107851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nagel-manufacturing-supply-co-v-ulloa-texapp-1991.