New Boston General Hospital, Inc. v. Texas Workforce Commission

47 S.W.3d 34, 2001 WL 224978
CourtCourt of Appeals of Texas
DecidedMay 15, 2001
Docket06-00-00054-CV
StatusPublished
Cited by15 cases

This text of 47 S.W.3d 34 (New Boston General Hospital, Inc. v. Texas Workforce Commission) 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
New Boston General Hospital, Inc. v. Texas Workforce Commission, 47 S.W.3d 34, 2001 WL 224978 (Tex. Ct. App. 2001).

Opinions

OPINION

Opinion by Chief Justice CORNELIUS

New Boston General Hospital, Inc. (New Boston) and James J. Naples, DPM, Inc. (Dr. Naples) appeal from a summary judgment rendered in favor of the Texas Workforce Commission (TWC) and Ms. Becky Borgeson (Ms. Borgeson). New Boston and Dr. Naples contend that the trial court erred in granting summary judgment because the summary judgment evidence adduced before the trial court did not constitute substantial evidence, and because the [36]*36alleged underlying contract on which Ms. Borgeson sued was illegal and therefore unenforceable. We overrule both points of error and affirm the judgment.

On February 12, 1998, Ms. Borgeson filed a wage claim with the TWC alleging that her employer, Dr. Naples, had failed to compensate her for services rendered from November 24 to December 2, 1997. Additionally, Ms. Borgeson claimed that she was entitled to a bonus of $45,000.00 for enrolling various nursing, retirement, and assisted living homes to have their patients treated at Dr. Naples’ clinics. In March of 1998, the Labor Law Payment Division of the TWC issued a preliminary wage determination order indicating that Dr. Naples had violated Chapter 61 of the Texas Labor Code and ordered him to pay $41,461.54 to TWC for the benefit of Ms. Borgeson. Subsequently, Dr. Naples filed a formal notice of appeal pursuant to Tex. Lab.Code Ann. § 61.054(b) (Vernon 1996). On June 16, 1999, the TWC issued its Payday Law Decision, based largely on two telephonic conferences and a verified affidavit executed by Dr. Nicholas Bachyn-sky, who had acted as a representative of Dr. Naples. In the decision Mr. Douglas Carnes, a TWC hearing officer, made various findings of fact including: (1) that Ms. Borgeson was hired by Dr. Bachynsky, with Dr. Naples’ approval, to implement a plan to increase business for New Boston by marketing to nursing and retirement homes, (2) that Ms. Borgeson was an employee and not an independent contractor, based on a continuing relationship, training, and methods of compensation which included fringe benefits, (3) that an agreement existed between Ms. Borgeson and Dr. Bachynsky whereby Ms. Borgeson would be paid ten percent of the revenues from homes she recruited, but that in November of 1997, the agreement was changed to provide for a flat fee of $1,000.00 per home because the former agreement was prohibited by state and federal statutes, and (4) that while Ms. Borgeson was supervised by Dr. Bachyn-sky, she received her wages directly from New Boston. Accordingly, Mr. Carnes modified the March 16 determination order, holding that New Boston, and not Dr. Naples, who was New Boston’s president and director, was Borgeson’s employer, and affirmed the prior determination as modified. On July 14, 1998, New Boston and Dr. Naples filed a petition for judicial review in the District Court of Bowie County. Although the TWC filed an original answer, Ms. Borgeson neither filed an answer nor appeared at the September 24 hearing, and a default judgment was granted against her. Ms. Borgeson alleged in a motion for new trial that she mistakenly believed her interests were to be protected by the TWC, and that her failure to appear was inadvertent and not the result of conscious indifference. The trial court accordingly set aside the default judgment against her. Thereafter, the TWC filed a motion for summary judgment, which the trial court granted. New Boston and Dr. Naples filed a motion for new trial, which the trial court denied.

On appeal New Boston and Dr. Naples contend that the trial court erred in granting summary judgment because as a matter of law the summary judgment evidence did not constitute substantial evidence to support the TWC Payday Law Decision. Judicial review of a final decision of the TWC is available pursuant to Tex. Lab. Code Ann. § 61.062(e) (Vernon 1996); Levelland Indep. Sch. Dist. v. Contreras, 865 S.W.2d 474, 476 (Tex.App. — Amarillo 1993, writ denied). Specifically, Section 61.062(e) requires a trial de novo to determine whether substantial evidence exists to support the TWC decision. See Mercer v. Ross, 701 S.W.2d 830, 831 (Tex.1986); Madisonville Consol. Indep. Sch. Dist. v. [37]*37Texas Employment Comm’n, 821 S.W.2d 310, 311 (Tex.App. — Corpus Christi 1991, writ denied).

In Jones v. Marsh, the Texas Supreme Court described the substantial evidence standard of review as follows:

[I]t is that the finding of the administrative body or agency be sustained by the court if it is reasonably supported by substantial evidence, meaning evidence introduced in cowi. It is for the court, whether trial or appellate, to determine as a matter of law the reasonableness of the support afforded by substantial evidence, and in making its decision of this question the court examines and takes into consideration all of the evidence.

Jones v. Marsh, 148 Tex. 362, 224 S.W.2d 198, 202 (1949) (emphasis added). Moreover, in the de novo review, the issue is whether the evidence introduced in the trial court shows facts that existed at the time the TWC order was issued that are of such a substantial nature as to reasonably support the order. Burton v. Texas Employment Comm’n, 743 S.W.2d 690, 692 (Tex.App. — El Paso 1987, writ denied) (quoting Cruz v. City of San Antonio, 424 S.W.2d 45, 47 (Tex.Civ.App. — San Antonio 1968, no writ)). The trial court is not bound by, nor does it review, the TWC’s findings of fact. Direct Communications, Inc. v. Lunsford, 906 S.W.2d 537, 541 (Tex. App. — Dallas 1995, no writ). The trial court rules on the evidence admitted at the trial de novo,1 not the evidence presented at the TWC hearing. Id.; Mary Lee Found, v. Texas Employment Comm’n, 817 S.W.2d 725, 727 (Tex.App. — Texarkana 1991, writ denied).

A decision of the TWC is presumed to be valid, and a party seeking to set aside the agency’s decision has the burden to show that it was not supported by substantial evidence.2 Mercer v. Ross, 701 S.W.2d at 831; Mary Lee Found, v. Texas Employment Comm’n, 817 S.W.2d at 727. It is for the reviewing court to decide whether the evidence is such that reasonable minds could not have reached the conclusion the administrative body must have reached in order to justify its actions. Haas v. Texas Employment Comm’n, 683 S.W.2d 462, 464 (Tex.App.— Dallas 1984, no writ).

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New Boston General Hospital, Inc. v. Texas Workforce Commission
47 S.W.3d 34 (Court of Appeals of Texas, 2001)

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Bluebook (online)
47 S.W.3d 34, 2001 WL 224978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-boston-general-hospital-inc-v-texas-workforce-commission-texapp-2001.