Sweeney v. Taco Bell, Inc.

824 S.W.2d 289, 1992 WL 12803
CourtCourt of Appeals of Texas
DecidedMarch 17, 1992
Docket2-91-068-CV
StatusPublished
Cited by10 cases

This text of 824 S.W.2d 289 (Sweeney v. Taco Bell, 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
Sweeney v. Taco Bell, Inc., 824 S.W.2d 289, 1992 WL 12803 (Tex. Ct. App. 1992).

Opinions

OPINION

DAY, Justice.

John Robert Sweeney appeals the grant of a summary judgment in favor of Taco Bell, Inc. Sweeney filed a wrongful termination suit against Taco Bell, and Taco Bell answered by alleging the affirmative defense of release. See TEX.R.CIV.P. 94. After a hearing, the trial court granted Taco Bell’s motion for summary judgment based upon release.

We affirm.

The release alleged to bar this action arose out of an injury suffered by Sweeney while employed at Taco Bell. When Sweeney returned to work after the injury, he was advised by the employer that his employment had been terminated because of the employer’s dissatisfaction with his work. Sweeney believed that he was fired in retaliation for filing his worker’s compensation claim. In July 1988, the Industrial Accident Board awarded Sweeney $7,800 for his injuries. Both Sweeney and the insurer, National Union Fire Insurance Company, appealed. However, the parties entered negotiations and reached a compromise settlement.1 The trial court entered an agreed judgment in September 1988. Thirteen months later, in October of 1989, Sweeney filed suit against Taco Bell for [291]*291damages arising out of his alleged wrongful termination.

In his sole point of error, Sweeney asserts that the trial court erred in granting the appellee’s motion for summary judgment. Sweeney posits that at the time he signed the release and agreement for judgment and at the time the court entered the workman’s compensation judgment against the worker’s compensation insurance company, he had never discussed nor bargained for the settlement of his wrongful termination claim with Taco Bell.

In a summary judgment case, the issue on appeal is whether the movant met his burden for summary judgment by establishing that there exists no genuine issue of material fact and that he is entitled to judgment as a matter of law. City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 (Tex.1979); TEX.R.CIV.P. 166a. The burden of proof is on the mov-ant, and all doubts as to the existence of a genuine issue as to a material fact are resolved against him. Great American R. Ins. Co. v. San Antonio Plumbing Supply Co., 391 S.W.2d 41, 47 (Tex.1965). Therefore, we must view the evidence in the light most favorable to the non-movant. See id. In deciding whether there is a material fact issue precluding summary judgment, all conflicts in the evidence will be disregarded and the evidence favorable to the non-mov-ant will be accepted as true. Montgomery v. Kennedy, 669 S.W.2d 309, 311 (Tex.1984); Farley v. Prudential Ins. Co., 480 S.W.2d 176, 178 (Tex.1972). Every reasonable inference from the evidence must be indulged in favor of the non-movant and any doubts resolved in his favor. Montgomery, 669 S.W.2d at 311. Evidence which favors the movant’s position will not be considered unless it is uncontroverted. Great American, 391 S.W.2d at 47. The summary judgment will be affirmed only if the record establishes that the movant has conclusively proved all essential elements of his cause of action or defense as a matter of law. City of Houston, 589 S.W.2d at 678.

Sweeney claims that the release was entered into under a mutual mistake, and that under the doctrine of Williams v. Glash, 789 S.W.2d 261 (Tex.1990), he is entitled to set the release aside. We disagree.

As a general rule, a written release cannot be avoided on the ground that the releasor was ignorant of, or mistaken about, the contents of the release, or failed to read it before signing. A settlement agreement and release, valid on its face, will not be avoided on the ground that the releasor was ignorant of or mistaken as to the contents of the release or failed to read it before signing. Fraud or other improper influence, however, is an exception to this rule. Morris v. Millers Mut. Fire Ins. Co., 343 S.W.2d 269, 270 (Tex.Civ.App.—Fort Worth 1961, no writ). Fraud, mutual mistake, and lack of consideration are all affirmative defenses for the enforceability of a release. Tobbon v. State Farm Mut. Auto. Ins. Co., 616 S.W.2d 243, 245 (Tex.Civ.App.—San Antonio 1981, writ ref’d n.r.e.). Thus, while Taco Bell had the burden of proving the affirmative defense of release, Sweeney had the burden of proving that the release should be set aside.

Sweeney’s summary judgment evidence consisted of affidavits by himself and his attorney stating: the termination claim was neither discussed nor bargained for in the settlement of his earlier claim; and at the time he signed the release, he understood that he was only releasing his worker’s compensation claim against National Union Fire, despite the language of the release.

In Williams, 789 S.W.2d at 264-65, the Texas Supreme Court discussed the enforceability of a release as it pertained to personal injuries which are unknown at the time the release is signed. Under Texas law, said the court, a release is a contract and is subject to avoidance, on grounds such as fraud or mistake, just like any other contract. Id. at 264; Loy v. Kuykendall, 347 S.W.2d 726, 728 (Tex.Civ.App.—San Antonio 1961, writ ref'd n.r.e.). Pursuant to the doctrine of mutual mistake, when parties to an agreement have contracted under a misconception about or ignorance of a material fact, the agreement will be avoided. See, e.g., A.L.G. Enter[292]*292prises v. Huffman, 660 S.W.2d 603, 606 (Tex.App.—Corpus Christi 1983), aff'd as reformed per curiam, 672 S.W.2d 230 (Tex.1984). Additionally, the parol evidence rule does not bar extrinsic proof of mutual mistake. Santos v. Mid-Continent Refrigerator Co., 471 S.W.2d 568, 569 (Tex.1971) (per curiam). However, the doctrine of mutual mistake does not prevent a party to a release from deliberately assuming the risk of future, unknown injuries.

The court went on to hold that the law of mutual mistake applies to personal injury releases the same as to other contracts. If it can be established that a release sets out a bargain that was never made, it will be invalidated. Williams, 789 S.W.2d at 265 (emphasis in original). If the objective manifestation of the parties’ intent indicates that no release of unknown personal injuries was contemplated, the courts cannot provide intent for them.

The court gave some guidance as to when a release may be so invalidated. The court stated:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
824 S.W.2d 289, 1992 WL 12803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sweeney-v-taco-bell-inc-texapp-1992.