Rodriguez v. Benson Properties, Inc.

716 F. Supp. 275, 4 I.E.R. Cas. (BNA) 634, 1989 U.S. Dist. LEXIS 13418, 1989 WL 84494
CourtDistrict Court, W.D. Texas
DecidedMarch 15, 1989
DocketCiv. A. SA-88-CA-903
StatusPublished
Cited by4 cases

This text of 716 F. Supp. 275 (Rodriguez v. Benson Properties, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodriguez v. Benson Properties, Inc., 716 F. Supp. 275, 4 I.E.R. Cas. (BNA) 634, 1989 U.S. Dist. LEXIS 13418, 1989 WL 84494 (W.D. Tex. 1989).

Opinion

ORDER

PRADO, District Judge.

On this date came on to be considered Defendant’s Motion for Partial Summary Judgment and Application for Injunctive Relief, filed in the above-styled and numbered cause on November 30, 1988. Plaintiff has filed no opposition to the motion.

Defendant requests the Court to enter summary judgment in its favor on the four state law causes of action brought by Plaintiff against Defendant in her First Amended Complaint. These causes of action are for (1) breach of an implied covenant of good faith and fair dealing, (2) breach of a verbal hiring promise, (3) breach of the doctrine of promissory estop-pel, and (4) breach of contract and promissory estoppel.

I. First Cause of Action

As to the first cause of action, in her complaint, Plaintiff contends that a covenant of good faith and fair dealing was implied in the employment relationship which existed between Plaintiff and Defendant. Texas courts have recognized that an employer/employee relationship is contractual in nature. Pioneer Casualty Co. v. Bush, 457 S.W.2d 165, 169 (Tex.Civ.App. —Tyler 1970, writ ref'd n.r.e.); Northwestern Nat’l Life Ins. Co. v. Black, 383 S.W.2d 806, 809 (Tex.Civ.App. — Texarkana 1964, writ ref’d n.r.e.). Texas courts have also recognized that certain contracts may create a special relationship between the parties that gives rise to a duty of good faith and fair dealing. Aranda v. Insurance Co. of N. America, 748 S.W.2d 210, 212-13 (Tex.1988) (workers compensation insurers owe duty to claimants); Arnold v. National County Mutual Fire Ins. Co., 725 S.W.2d 165, 167 (Tex.1987) (insurers owe duty to claimants); Izaguirre v. Texas Employers’ Ins. Ass’n, 749 S.W.2d 550, 553 (Tex.App. — Corpus Christi 1988, no writ) (workers compensation insurers owe duty to claimants); Aetna Casualty & Surety Co. v. Marshall, 699 S.W.2d 896, 901 (Tex. App. — Houston [1st Dist.] 1985, writ granted) (workers compensation insurers owe duty to claimants); Brooks, Tarlton, Gilbert, Douglas & Kressler v. United States Fire Ins. Co., 832 F.2d 1358, 1376 n. 15 (5th Cir.1987) (insurers owe duty to insured).

Plaintiff claims that the employer/employee relationship is also a special relationship which should give rise to a duty of good faith and fair dealing. No Texas case has expressly held, however, that a duty of good faith and fair dealing exists between an employer and employee as a result of their contractual relationship. See Lumpkin v. H & C Communications, Inc., 755 S.W.2d 538, 540 (Tex.App. — Houston [1st Dist.] 1988, no writ) (court would not extend law to employment contracts in face of Texas Supreme Court’s failure to do so). Texas courts have made clear that such a duty does not arise in all contractual relationships; only in certain special relationships. Arnold, 725 S.W.2d at 167; Eng *277 lish v. Fischer, 660 S.W.2d 521, 522 (Tex.1983).

In determining whether such a special relationship exists, Texas courts have looked at two aspects of the relationship: (1) the parties’ relative bargaining power, and (2) the degree of control exercised by one party over the other. Aranda, 748 S.W.2d at 212; Arnold, 725 S.W.2d at 167. In the insurance context, it is clear that insurers usually have much more bargaining power when determining the provisions of their insurance contracts then insureds. Also, insurers exercise exclusive control over the processing of claims of insureds, determining the amount and timing of any payments on claims. Id. The nature of insurance contracts is such that “unscrupulous insurers” may “take advantage of their insureds’ misfortunes in bargaining for settlement or resolution of claims.” Arnold, 725 S.W.2d at 167.

This is not the case with employment contracts. While disparity of bargaining power may exist in many employment contract situations, this is not always the case and certainly not to the degree it exists in the context of insurance contracts. The same is true as to control. While an employer certainly controls an employee, he may not control all aspects of the employment relationship. Some may be within the exclusive control of the employee. It does not appear to this Court that the relationship created by an employment contract is the kind of “special relationship” which exists with insurance contracts and gives rise to a duty of good faith and fair dealing. Because the Court does not find a duty to exist, Plaintiff cannot recover on her first cause of action.

II. Second Cause of Action

Plaintiff’s second cause of action is for breach of a verbal hiring promise. In her complaint, Plaintiff states this cause of action as follows: “Plaintiff performed his [sic] duties faithfully during his [sic] period of employment and was never reprimanded or warned concerning his [sic] work performed or other problems. The aforesaid termination was without just cause in breach of contract.” Plaintiff’s First Amended Complaint, Mar. 8, 1989, at 9. Plaintiff apparently contends that she was promised a job for as long as her work performance was satisfactory, and that her discharge, if any, would occur only for just cause after notice, investigation and a hearing.

Texas courts have long recognized that, in this state, absent a specific contract term to the contrary, employment relationships are terminable at will by either party. East Line & R.R.R. Co. v. Scott, 72 Tex. 70, 10 S.W. 99 (1888). This concept, known as the “employment-at-will” doctrine, means an employer may terminate an employee at any time for any reason. The reason need not be fair, reasonable, or otherwise correct. Lumpkin, 755 S.W.2d at 539.

In determining whether Plaintiff may recover on her second cause of action, the Court must consider the Texas law concerning wrongful discharge. “In order to establish a cause of action for wrongful termination, an [employee] must prove that he and his employer had a contract that specifically provided that the employer did not have the right to terminate his employment at will, and that the contract was in writing.” Stiver v. Texas Instruments, Inc., 750 S.W.2d 843, 846 (Tex.App. — Houston [14th Dist.] 1988, no writ).

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716 F. Supp. 275, 4 I.E.R. Cas. (BNA) 634, 1989 U.S. Dist. LEXIS 13418, 1989 WL 84494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodriguez-v-benson-properties-inc-txwd-1989.