Raymond Espinosa v. Aaron's Rents, Inc.

484 S.W.3d 533, 2016 Tex. App. LEXIS 423, 2016 WL 191944
CourtCourt of Appeals of Texas
DecidedJanuary 14, 2016
DocketNO. 01-14-00843-CV
StatusPublished
Cited by20 cases

This text of 484 S.W.3d 533 (Raymond Espinosa v. Aaron's Rents, Inc.) 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
Raymond Espinosa v. Aaron's Rents, Inc., 484 S.W.3d 533, 2016 Tex. App. LEXIS 423, 2016 WL 191944 (Tex. Ct. App. 2016).

Opinion

OPINION

Jane Bland, Justice

In this employment-related' case, a former employee appeals the trial court’s summary judgment on the employee’s suit for defamation and related claims against his former employer. Raymond Espinosa worked as a manager at the Monroe, Texas store of Aaron’s Rents, Inc. Aaron’s leases and sells home furnishings, appliances, and electronics.

A month after Espinosa left employment with Aaron’s, the store’s personnel discovered that merchandise was missing from its inventory. Aaron’s linked fraudulent rental records' for part of that inventory to Espinosa’s employee identification number. Aaron’s regional office in Houston conducted an internal investigation; Aaron’s then reported the suspected theft to the Houston Police Department. The Harris County District Attorney’s Office conducted its own investigation and sought an indictment from a Harris County grand jury. The grand jury declined to indict Espinosa.

Espinosa then sued Aaron’s for malicious prosecution, intentional infliction of emotional distress, defamation, and an unpaid performance bonus, alleging that Aaron’s had falsely accused him of criminal conduct. Aaron’s moved for summary judgment,-contending that: (1) Espinosa is judicially estopped -from asserting hi's claims because he failed to disclose them as contingent assets in his Chapter 7 bankruptcy case; (2) Aaron’s did not initiate or procure Espinosa’s prosecution; (3) any statements that Aaron’s made to its employees about Espinosa occurred during *537 the course of its internal investigation into suspected wrongdoing, entitling Aaron’s to the qualified privilege that attaches to such communications; (4) Aaron’s report of suspected wrongdoing to the police is similarly subject to a qualified privilege that bars Espinosa’s tort claims; (5) no evidence raises a fact issue that Aaron’s acted with malice in making any statement alleged to be defamatory; and (6) no evidence supports Espinosa’s fraud and breach of fiduciary duty claims against Aaron’s based on its failure to pay Espinosa a final quarterly bonus.

Finding no error, we affirm.

BACKGROUND

Aaron’s employed Espinosa as general manager of its Monroe store for most of the period between October 2002 and January 2006. In that position, Espinosa was responsible for ensuring that store employees complied with company policies. Espinosa reported to Aaron’s Regional Manager in Houston, Roger Hooker. During the last quarter of 2005, Aaron’s planned to terminate Espinosa’s employment based on poor performance. Before it took that action, in early January 2006, Espinosa called Hooker and told him that he would not be returning to work. Espi-nosa asked Hooker if he would receive his final paycheck and quarterly bonus; Hooker told Espinosa that he would.

Aaron’s paid its store managers quarterly bonuses approximately 45 days after the quarter’s close. The bonus for each store manager was .a percentage based on the store’s net revenues and net profit. According to policy, Aaron’s deducted any missing cash or merchandise from any bonus amount paid to its managers. ,

Following Espinosa’s departure, Aaron’s reviewed the Monroe store’s rental agreements and it found records showing that some customer’s accounts had gone unpaid for months. In February 2006, Aaron’s sent a truck to the home of one of those customers, Jimmie Norris, to repossess the rented merchandise. The Aaron’s driver informed Norris that, .according to Aaron’s, records, Norris had rented a keyboard, three refrigerators, a washer/dryer, a big screen television, and a home theater system from Aaron’s. Norris responded that he had never signed a rental contract to rent anything from Aaron’s.

The store’s internal investigation

Aaron’s assigned its Vice President of Internal Security, Danny Walker, and its Legal Counsel for Southwest Operations, Nicole Lee, to conduct an internal investigation of the incident. During the investigation, they interviewed Norris, Monroe store employees Tina Duhon, Dawnisha Collier, William Rogers, and James Hebert, and Customer Accounts Manager Joe Mermella.'

Norris also provided a handwritten statement explaining his interactions with Espinosa, whom he had met at a gym a few years before. About a year after they became acquainted,. Norris ran into Espi-nosa at the. gym and told him he was interested in.buying some leather furniture and a big screen television. Espinosa responded that the store did not have a television available at the time, but that he would keep an eye out for one. The next time Norris saw Espinosa at the gym, Espinosa told him he had a big screen television that he would sell to Norris for cash. In a later telephone conversation, Norris agreed to pay $400 for a 52-inch television. Espinosa told him not to come to the store; he would have the television delivered to Norris’s home.

Espinosa later called Norris and told him that a nearby .Aaron’s store was having a tent sale that included leather furniture. Norris found the prices too high and *538 left without buying anything. Soon afterward, Espinosa called Norris and told him that he had a leather sofa, chair and ottoman available. Norris and Espinosa negotiated a total price of $1200 for the television and the furniture. The next evening, an Aaron’s truck delivered the items, and Norris gave the driver a $1200 check payable to Aaron’s Rents.

After more than a year, Norris contacted Espinosa about buying a washer, dryer, and refrigerator for his new house. Espi-nosa called Norris that same week and offered the items for somewhere between $500 and $700 cash. Norris responded that he was willing to pay that amount if the appliances were in acceptable condition. Espinosa delivered to Norris a refrigerator with no shelves and a washer/dryer with no hoses or cords, for which Norris paid Espinosa $500 cash.

Documentation prepared under Espino-sa’s code number reflects that, instead of purchasing it, Norris leased merchandise similar to the items he claimed to have purchased. Espinosa admitted that the documentation appeared false, and he agreed that “somebody created phony information about this transaction”; the documentation was prepared using Espinosa’s employee number. Hooker informed the DA’s Office that those items were written off as “Regional Manager Shrink,” meaning that none was ever sold as retail through Aaron’s store system.

Aaron’s performed an audit as part of its internal investigation. It discovered that, in addition to the documentation relating to Norris, approximately ten other lease agreements prepared at the store over the past 18 months appeared to be false. Aaron’s attempted to contact the customers whose names appeared on the suspect accounts. The customers Aaron’s located denied renting the merchandise identified on the leases; much of the information on the leases, including addresses, social security numbers, and driver’s license numbers, was false. Further, the delivery records did not contain any information for the apparently fraudulent transactions. The audit revealed that the store records did not account for approximately 30 missing items, including washers and dryers, televisions, computers, home stereo systems, and furniture; the aggregate amount of these items was approximately $63,556.32.

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Cite This Page — Counsel Stack

Bluebook (online)
484 S.W.3d 533, 2016 Tex. App. LEXIS 423, 2016 WL 191944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raymond-espinosa-v-aarons-rents-inc-texapp-2016.