Tex-Fin, Inc. and Texas Workforce Commission v. Gustavo E. Ducharne

492 S.W.3d 430, 2016 WL 1660536, 2016 Tex. App. LEXIS 4316
CourtCourt of Appeals of Texas
DecidedApril 26, 2016
DocketNO. 14-15-00267-CV
StatusPublished
Cited by12 cases

This text of 492 S.W.3d 430 (Tex-Fin, Inc. and Texas Workforce Commission v. Gustavo E. Ducharne) 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
Tex-Fin, Inc. and Texas Workforce Commission v. Gustavo E. Ducharne, 492 S.W.3d 430, 2016 WL 1660536, 2016 Tex. App. LEXIS 4316 (Tex. Ct. App. 2016).

Opinion

OPINION

Marc W. Brown, Justice

The • Texas Workforce Commission (TWC) dismissed Gustavo E. Ducharne’s wage claim filed against his former employer, Tex-Fin, Inc., under the Texas Payday Act. Dúchame sought review of *434 this decision ,in district court. All of the parties filed , motions for summary judgment regarding whether- the TWC’s decision was supported by substantial evidence. The trial court granted Ducharne’s motion for summary judgment in part and remanded the case to the- TWC for further proceedings to determine the amount of wages due to Dúchame. On appeal, both Tex-Fin and the TWC argue that the trial court erred when it granted • Ducharne’s motion because, under a proper substantial evidence review, the TWC’s decision was supported by substantial evidence. Tex-Fin contends the trial court erred by not ordering a general remand, and the TWC argues the court erred by remanding at all. We reverse the portion of the trial court’s judgment remanding the case to the TWC for.further proceedings to determine the amount of wages due to Dúc-hame, affirm the remainder of the judgment, and remand for further proceedings consistent with this opinion.

I. Factual and PROCEDURAL Background

Tex-Fin is a Houston-based company that manufactures and sells finned pipe and tubes for the heat transfer industry. Dúchame began working for Tex-Fin in 2004 on a salary basis as a sales representative for Latin America. On June 11, 2008, Dúchame signed a written agreement with' Tex-Fin, effective January 2008. Sales manager Sean Hall signed the agreement on behalf of Tex-Fin.

The agreement provided Dúchame with a “salary package,” including, among other items: salary in the amount of $75,400.00; a “Fin Tube Sales Bonus” based on .5% of total Latin American and international sales in which Dúchame participated; and an “Air Cooler, Shell & Tube, & Air Cooler Replacement Tube Bundles Sales- Bonus” based on..5% of total Latin American and international sales in which Dúchame participated. The agreement provided that Dúchame was “responsible for” “Total Fin-Tube sales” of “$4 million @ .20% Margin.” The agreement also stated: “Total sales for Air Coolers, Shell & Tube, & Air Cooler Replacement Tube Bundles $6 million @ 20% Margin.” The agreement provided “examples” of the calculation of each sales bonus:

Example Fin Tube Sales: $4 million x .5% = $20,000.00 based on 20% margins.
[[Image here]]
Example Air Cooler, Shell & Tube, & Replacement Bundles Sales: $6 million X -.5% = $30,000.00 based on 20% margins.

Tex-Fin paid Dúchame a sales bonus in December 2008.

On April 22, 2009, Tex-Fin terminated Dúchame essentially for insubordination. According to Dúchame, at the time of his termination, he had generated over $4.5 million in eligible sales for fiscal year 2009. On May 4, 2009, Dúchame sent Sean an email- requesting payment for commissions accrued between October 2008 and April 2009, including relating to pending orders, and for severance. That same day, Tréy Hall, IT Manager for Tex-Fin, responded because Sean was in the hospital. In his response, Trey stated: “Commissions are calculated and paid in December and commissions are only paid on collected invoices. ■ Commissions are not paid on outstanding invoices or pending orders and commissions will not be paid early.” Trey also stated that Tex-Fin did not owe Dúc-hame any severance pay.

In August 2009, Dúchame filed a Texas Payday Act claim against Tex-Fin with the TWC, for unpaid commissions and unpaid severance. The TWC’s assigned investigator initially determined that Dúc-hame was not entitled to unpaid bonuses or unpaid severance pay and dismissed his wage, claim. Dúchame appealed this deci *435 sion to the TWC’s appeal tribunal, which held a telephonic hearing. Sean and Dúc-hame participated in the hearing. The tribunal affirmed the dismissal of Duc-harne’s wage claim.

In making its ruling, the tribunal cited sections 61.001(7) 1 and 61.015 of the Payday Act, and TWC rule 821.26. The tribunal issued these relevant conclusions:

• Dúchame is not entitled to any unpaid wages from Tex-Fin under the Texas Payday Law.
• “Although [Dúchame] seeks payment of commissions, ... [Tex-Fin] truly had an agreement with [Duc- ■ harne] for payment of bonus pay for his sales.”
• “The evidence established that the bonus program was an annual program, calculated on sales made in the fiscal year and paid in December.”
• “[T]here is no evidence that [Tex-Fin] ever intended to pay the bonus based on a partial year of work or to pay the bonus before the due date in December.”
• “The evidence indicates that [Dúc-hame] is not entitled to bonus or commission pay.”
• “The- monies claimed are not due under • the Texas Payday Law and ■ the Texas Payday Rules.”

Dúchame appealed this decision to the TWC, which affirmed the dismissal of his wage claim in a 2-to-l decision.

Dúchame timely filed a petition in district court’ against Tex-Fin and the TWC for judicial review of that portion of the TWC’s decision dismissing his claim for unpaid bonuses. See Tex. Lab.Code § 61.062 (West 2015), 2 All parties filed motions for traditional summary judgment. The trial court granted in part Ducharne’s motion for summary judgment and denied Tex-Fin’s and the TWC’s motions for summary judgment, reversing - and setting aside the decision of the TWC. The trial court, ordered the case remanded to the TWC for a determination of the amount of wages due to Dúchame. Tex-Fin and the TWC filed motions for new trial, which the trial court denied.

Tex-Fin and the TWC now appeal. They argue- the same, first issue — that the trial court failed to review the TWC’s deci *436 sion by trial de novo with the substantial evidence rule being the standard of review and erred in granting Dúchame summary judgment. As its second issue, Tex-Fin asserts that the trial court erred by instructing the TWC on remand to determine an amount of wages owed to Dúc-hame instead of remanding the entire case. As its second issue, the TWC contends the trial court erred in remanding to the TWC because it is the trial court that should determine the amount of wages due.

II. Analysis

A. Jurisdiction

As a threshold matter, we consider whether we have jurisdiction over this appeal from the trial court’s “final summary judgment.” “[T]he general rale, with a few mostly' statutory exceptions, is that an appeal may be taken only from a final judgment.” Lehmann v. Har-Con Corp., 39 S.W.3d 191

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Bluebook (online)
492 S.W.3d 430, 2016 WL 1660536, 2016 Tex. App. LEXIS 4316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tex-fin-inc-and-texas-workforce-commission-v-gustavo-e-ducharne-texapp-2016.