Rescar, Inc. v. Ward

60 S.W.3d 169, 2001 WL 754779
CourtCourt of Appeals of Texas
DecidedDecember 6, 2001
Docket01-99-00038-CV
StatusPublished
Cited by9 cases

This text of 60 S.W.3d 169 (Rescar, Inc. v. Ward) 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
Rescar, Inc. v. Ward, 60 S.W.3d 169, 2001 WL 754779 (Tex. Ct. App. 2001).

Opinions

OPINION

WILSON, Justice.

Rescar, Inc., appellant, challenges the $3,312,055 judgment following a jury trial after its termination of its at-will employee, James Ward, appellee. We reverse the finding of intentional infliction of emotional distress and render that the judgment be reduced to reflect Ward takes nothing on that cause of action. We affirm on all other grounds.

I. Facts

Rescar repairs and cleans railroad tank cars at three facilities in Texas. Ward was hired as an at-will employee and became plant manager for Rescar’s Orange, Texas facility in March of 1992. At the time he was hired, Ward was told he would have no authority over the cleaning operation in the plant. Instead, Robert Mitchem, a [174]*174Rescar vice president, and Fred Keil directed Rescar Cleaning.

In December 1992 a Texas Water Commission (TWC) investigator told Ward that the Orange County Water Control District No. 2 (the District) had discovered a hazardous chemical in its sewer system.1 The TWC and Ward confirmed Rescar was the source of the chemical. Keil told the TWC and Ward that the chemical entered the sewer by a crack in the pipe that ran directly through the concrete containment pad in the cleaning area. Ward told the TWC he would plug the pipe with concrete. When he did, Mitchem confronted Ward and angrily asked him, ‘What are you doing plugging into my pipe ... ?”

On March 24, 1993, after independently discovering several other violations of state and federal environmental laws, Ward sent copies of a letter outlining violations since December 1992 to Rescar’s owner (Joe Schieszler), President (Bill Groos), and Vice President in charge of Rescar Cleaning (Mitchem). The letter stated, “It is obvious [Rescar Cleaning’s] lawless disposal tactics are causing serious environmental violations.” Because plugging the pipe in 1992 had caused Ward to get involved in Rescar Cleaning’s daily operations, Ward concluded his letter by stating:

By way of this document, I as Plant Manager of Rescar Incorporated in Orange, Texas hereby notify all involved parties that I am relieving myself of any wrongful misconduct resulting from these illegal proceedings conducted by [Rescar Cleaning].

Don Loyd, Ward’s supervisor, told Ward he would have fired him immediately, but Rescar’s headquarters told him he “could not fire him immediately and to take care of it.”

On April 28, 1993, several members of Rescar’s upper management and Ward inspected a field adjacent to Rescar Cleaning. Ward again expressed concern over violations he saw that had obviously not been corrected in the month since he sent the letter.

On May 10, 1993, Loyd told Ward he would be transferred to Rescar’s Channel-view, Texas facility which was not yet operational.2 While in Channelview, Ward was responsible for hiring new employees. Despite being instructed by his employer not to hire minorities because they were pro-union, Ward hired a female as a forklift operator and an African American male as paint supervisor.

On December 30, 1993, Loyd terminated Ward. Ward told Loyd that Meryl Whit-meyer, a supervisory employee, told him that morning that Rescar was upset because he hired too many minorities and he was going to be fired.

Less than one month after he was terminated, Ward was contacted by Pat Everett. Everett, who sells coatings to Rescar and has been in the industry for 25 years, told Ward she had attended an industry meeting also attended by Rescar’s Executive Vice President, Myron Harkins. Harkins told Everett that Rescar was very upset about Ward’s letter outlining the environmental violations, and advised Everett to tell Ward, he would

find it very difficult to run with the big boys; that [he] wouldn’t win if [he] tried [175]*175it and if [he] pursued it, [he] would not work in the industry anymore, and it could very adversely affect [his wife’s] business also.

Everett testified Ward was visibly shaken by Harkins’s threat.

Ward sued Rescar alleging wrongful termination, retaliation in violation of the Texas Commission on Human Rights Act (TCHRA), and intentional infliction of emotional distress.

The jury returned a verdict in favor of Ward on all counts. It awarded $2,000,000 in actual damages, reflecting $240,000 for past lost earnings and benefits, $560,000 for future lost earnings and benefits, $150,000 past mental anguish, and $50,000 for future mental anguish for the common-law and statutory termination causes of action, in addition to $1,000,000 for mental and physical pain and suffering caused by Rescar’s intentional infliction of emotional distress. The jury awarded an additional $500,000 in exemplary damages and pre- and post-judgment interest.

II. Common Law Claim

Rescar argues Ward’s Sabine Pilot claim fails as a matter of law.

In reviewing a legal sufficiency or “no evidence” challenge to a jury finding, we must consider the evidence and inferences that tend to support the finding in the light most favorable to the party in whose favor the verdict has been rendered and disregard all evidence and inferences to the contrary. See State Farm Fire & Cas. Co. v. Simmons, 963 S.W.2d 42, 44 (Tex.1998). There must be more than a scintilla of evidence in the record to support the finding in order to survive a no-evidence challenge. Continental Coffee Prods. Co. v. Cazarez, 937 S.W.2d 444, 450 (Tex.1996).

A. Sabine Pilot

The Supreme Court established a very narrow exception to the employment-at-will doctrine, which previously allowed for termination at will and without cause. Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733, 734-35 (Tex.1985). That narrow exception covers only the discharge of an employee for the sole reason that the employee refused to perform an illegal act. Id. at 735. The Court further held that in a trial of such a case, it is the plaintiffs burden to prove by a preponderance of the evidence that his discharge was for no reason other than his refusal to perform an illegal act. Id.

In Question No. 2 of the jury charge, the jury was asked:

Excluding the opposition to a discriminatory practice which you found was a motivating factor in Rescar, Inc’s decision to discharge James Ward, was James Ward discharged for the sole reason he refused to perform an illegal act?

After this question, there was an instruction that explained that an illegal act constituted either (1) violating the Texas Commission on Human Rights Act by discriminating against individuals on the basis of race, sex, and national origin; or (2) intentionally, knowingly, or negligently participating in a list of eight environmental violations. The jury responded that Ward was discharged for the sole reason that he refused to perform both the TCHRA illegal acts and the environmental illegal acts.

Rescar objected to this jury question on the ground that there cannot be two sole reasons.

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Related

Louis v. Mobil Chemical Co.
254 S.W.3d 602 (Court of Appeals of Texas, 2008)
Rescar, Inc. v. Ward
60 S.W.3d 169 (Court of Appeals of Texas, 2001)
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54 S.W.3d 789 (Court of Appeals of Texas, 2001)
Texas Farm Bureau Insurance Companies v. Sears
54 S.W.3d 361 (Court of Appeals of Texas, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
60 S.W.3d 169, 2001 WL 754779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rescar-inc-v-ward-texapp-2001.