Smith v. Holley

827 S.W.2d 433, 7 I.E.R. Cas. (BNA) 1102, 1992 Tex. App. LEXIS 1138, 1992 WL 95113
CourtCourt of Appeals of Texas
DecidedFebruary 28, 1992
Docket04-90-00528-CV
StatusPublished
Cited by47 cases

This text of 827 S.W.2d 433 (Smith v. Holley) 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
Smith v. Holley, 827 S.W.2d 433, 7 I.E.R. Cas. (BNA) 1102, 1992 Tex. App. LEXIS 1138, 1992 WL 95113 (Tex. Ct. App. 1992).

Opinion

OPINION

PEEPLES, Justice.

Lonnie Smith appeals a judgment based on a jury finding that he defamed Jeannette Holley by allowing a prospective employer to review documents concerning her and by discussing her job performance. The jury awarded Holley $500,000 in actual damages, and a like amount in punitive damages based on a finding that Smith acted with malice. The trial court disregarded the malice finding and rendered judgment on the verdict for the actual damages. Smith appeals on seventeen points of error. In one cross-point, Holley appeals the denial of punitive damages. We reverse and render judgment that Holley take nothing from Smith.

In 1984 the Big Spring Police Department hired Holley as a probationary employee. After completing the police academy program, she began field training in the *435 company of experienced officers. The first officer gave her favorable evaluations, but after that it was all downhill. Holley was assigned to ride with a second field training officer, who made her feel stupid for asking questions, gave no timely feedback, and asked that they not ride together again. She was assigned to a third training officer, but within a few days, on November 22, 1984, she was told that she would be terminated. Smith made this decision. Holley challenged the contents of the untimely evaluations made by the second training officer and appealed her dismissal, but she was unsuccessful and was terminated.

In December 1984, Holley and the city manager agreed that: (1) the police department would reinstate Holley, and she would tender her resignation effective retroactively to November 21, citing personal reasons; and (2) the City would purge from its personnel records all references to the involuntary termination, and would mark each page of her personnel file with a notice limiting the information available to anyone asking about Holley’s employment record. 1

In the spring of 1985, Holley applied for a job with the United States Marshals Service (“USMS”) and executed a form authorizing persons contacted to give out information about job applicants. The relevant text of that authorization reads:

AUTHORIZATION FOR RELEASE OF INFORMATION
I hereby authorize any Investigator or duly accredited representative of the United States Civil Service Commission bearing this release ... to obtain any information from schools, residential management agents, employers, criminal justice agencies, or individuals, relating to my activities. This information may include, but is not limited to, academic, residential, achievement, performance, attendance, personal history, disciplinary, arrest, and conviction records. I hereby direct you to release such information upon request of the bearer. I understand that the information released is for official use by the Commission and may be disclosed to such third parties as necessary in the fulfillment of official responsibilities.
I hereby release any individual, including record custodians, from any and all liability for damages of whatever kind or nature which may at any time result to me on account of compliance, or any attempts to comply, with this authorization.

A USMS investigator contacted the Big Spring Police Department in the summer of the following year as part of the routine civil service background check. At that time, Smith was Big Spring’s acting Chief of Police, with access to personnel files located in another building. After receiving a copy of Holley’s authorization form, Smith told the USMS investigator about his dealings with Holley, and he had another officer talk to the investigator as well. Smith also shared documents with the investigator.

Several months later, USMS notified Holley that it would not hire her. Its rejection letter, based on information from Smith, *436 said that she failed probation at Big Spring, was reinstated, and then resigned. The USMS investigation, said the letter, revealed that her failure of probation “was based on (1) pulling a weapon in a public place; (2) inconsistent facts or reports; and (3) failure to follow chain of command.” The letter characterized these actions as “irresponsible behavior” and informed Holley that she would not be recommended for employment.

Holley sued Smith, the City of Big Spring, and three former officials (the former city manager, city attorney, and police chief). She alleged causes of action for defamation per se and breach of contract. Smith was found liable for defamation; the claims against all other defendants were resolved in their favor and are not involved in this appeal. Holley’s defamation count concerns the three statements mentioned in the USMS letter. Her live pleading alleged, “Publication of those grounds to the U.S. Marshals Service for plaintiffs termination as a police officer in the City of Big Spring, Texas, constitutes defamation against your plaintiff.”

Ordinarily a qualified privilege protects communications made in good faith on subject matter in which the author has a common interest with the other person, or with reference to which he has a duty to communicate to the other person. See Houston v. Grocers Supply Co., 625 S.W.2d 798, 800 (Tex.App.—Houston [14th Dist.] 1981, no writ); Moore & Assoc. v. Metropolitan Life Ins. Co., 604 S.W.2d 487, 490 (Tex.Civ.App.—Dallas 1980, no writ); Prosser & Keeton on Torts § 115, at 828-30 (5th ed. 1984). This qualified privilege protects a former employer’s statements about a former employee to a prospective employer. See Butler v. Central Bank & Trust Co., 458 S.W.2d 510, 514-15 (Tex.Civ.App.—Dallas 1970, writ dism’d); Duncantell v. Universal Life Ins. Co., 446 S.W.2d 934, 937 (Tex.Civ.App.—Houston [14th Dist.] 1969, writ ref’d n.r.e.); 2 F. Harper, F. James, & O. Gray, The Law of Torts § 5.26, at 228 (2d ed. 1986). We need not reach Smith’s points dealing with qualified privilege because the “Authority for Release of Information” that Holley signed and gave to the USMS makes this a case of absolute privilege instead of qualified privilege.

In point one Smith argues that the authorization immunizes him from liability for any defamatory statements he made in response to it. Holley replies that (1) it would violate public policy to enforce a release of an intentional tort, such as defamation; (2) the authorization did not encompass the information given by Smith because her agreement with the city manager sheltered it; and (3) Smith was not released because the instrument did not specifically name him. We agree with Smith and hold that the authorization was a valid release or consent to defamation that bars Holley’s defamation suit.

I.

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Bluebook (online)
827 S.W.2d 433, 7 I.E.R. Cas. (BNA) 1102, 1992 Tex. App. LEXIS 1138, 1992 WL 95113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-holley-texapp-1992.