Texas Mutual Insurance Co. v. Narvaez

312 S.W.3d 94, 2010 WL 923888
CourtCourt of Appeals of Texas
DecidedJune 8, 2010
Docket05-08-00109-CV
StatusPublished
Cited by6 cases

This text of 312 S.W.3d 94 (Texas Mutual Insurance Co. v. Narvaez) 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
Texas Mutual Insurance Co. v. Narvaez, 312 S.W.3d 94, 2010 WL 923888 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion by

Chief Justice WRIGHT.

In this workers’ compensation case, Juan Narvaez claimed he suffered a back injury in the course of his employment. A hearing officer ruled in favor of Narvaez, and an appeals panel of the Texas Workers’ Compensation Commission (TWCC) 1 affirmed the hearing officer’s decision. Texas Mutual Insurance Company appealed TWCC’s ruling to the trial court. The case proceeded to trial before a jury. The trial court declared a mistrial, and later granted summary judgment for Narvaez and awarded sanctions against Texas Mutual. In three issues, Texas Mutual contends (1) the trial court abused its discretion by ordering death penalty sanctions against Texas Mutual; (2) the trial court erred in granting summary judgment; and (3) on remand, Texas Mutual should be permitted to take full discovery against the law firm that represented Narvaez at trial. In his cross-appeal, Narvaez contends the trial court ei'red in denying his request for a portion of his attorneys’ fees under section 408.221 of the Texas Labor Code. We reverse the trial court’s judgment against Texas Mutual and remand for further proceedings. We do not reach the question raised by Narvaez’s cross-appeal.

Background

In August 2003, Narvaez was employed by Greater Metroplex Interiors, Inc. He performed metal stud framing and drywall installation. Alleging he injured his back at work on August 29, 2003, Narvaez filed a claim for benefits under the Texas Workers’ Compensation Act. Texas Mutual disputed the claim. A benefit review conference was held on February 3, 2004, to mediate resolution of the disputed issues, but the parties were unable to reach agreement, and the case proceeded to a contested case hearing on April 22, 2004. After an evidentiary hearing, the hearing examiner ruled in favor of Narvaez, concluding Narvaez sustained a compensable injury on August 29, 2003. Texas Mutual appealed this ruling to an appeals panel of the TWCC. The appeals panel affirmed the hearing officer’s ruling, concluding that “the hearing officer’s decision is supported by sufficient evidence and is not so against the great weight and preponderance of the evidence as to be clearly wrong and unjust.”

Texas Mutual then sought judicial review of the hearing examiner’s and appeal *97 panel’s rulings. The parties undertook discovery and proceeded to trial before a jury. On the first day of trial, after the jury was seated and opening statements were made, Texas Mutual called Narvaez to testify. In its examination of Narvaez, Texas Mutual used a document marked as Plaintiffs Exhibit 1. This document, entitled “Dallas County Hospital District, Progress Notes — Outpatient Department” is dated September 2, 2003. According to the parties’ briefing, this document is a Parkland Hospital medical record prepared by Dr. Chong Kim, who examined Narvaez — with one significant point of contention. In the doctor’s handwritten notes, the second and third lines read, “has had leg pain mild several,” followed by an illegible word. In the copy of this record marked as Exhibit 1 at trial, above the illegible word is written, also in handwriting, “mos.” The parties agree this handwritten “mos.” did not appear on the original medical record.

The record reflects Narvaez’s attorneys approached the bench during Texas Mutual’s questioning of Narvaez and held a bench conference that was not transcribed. Soon after the conference, the trial court dismissed the jury for the day and discussed with the parties’ counsel whether Exhibit 1 had been “doctored.” The parties agreed to a mistrial, and the trial court ordered an evidentiary hearing to be held on a motion for sanctions. Narvaez filed a no-evidence motion for summary judgment and a request for sanctions. The trial court granted both motions, and this appeal followed.

Standards of Review

We review the imposition' of sanctions for an abuse of discretion. Low v. Henry, 221 S.W.3d 609, 614 (Tex.2007) (citing Am. Flood Research, Inc. v. Jones, 192 S.W.3d 581, 583 (Tex.2006), and Cire v. Cummings, 134 S.W.3d 835, 838 (Tex.2004)). An appellate court may reverse the trial court’s ruling only if the trial court acted without reference to any guiding rules and principles, such that its ruling was arbitrary or unreasonable. Cire, 134 S.W.3d at 838-39.

In determining whether the trial court abused its discretion, we must ensure that the sanctions were appropriate or just. Am. Flood Research, 192 S.W.3d at 583 (citing TransAmerican Natural Gas Corp. v. Powell, 811 S.W.2d 913, 916 (Tex.1991)). To determine if the sanctions were appropriate or just, the appellate court must undertake a two-part inquiry. Am. Flood Research, 192 S.W.3d at 583. First, we must ensure that there is a direct relationship between the improper conduct and the sanction imposed. Id. In making this determination, we should “examine whether punishment was imposed upon the true offender and tailored to remedy any prejudice” caused by the conduct. Id. Second, we must make certain that less severe sanctions would not have been sufficient to promote compliance. Id.

In reviewing sanctions orders, we are not bound by a trial court’s findings of fact and conclusions of law; rather, we must independently review the entire record to determine whether the trial court abused its discretion. Id.

We review a no-evidence summary judgment under the same legal sufficiency standard used to review a directed verdict. See Tex.R. Civ. P. 166a(i); Gen. Mills Rests., Inc. v. Tex. Wings, Inc., 12 S.W.3d 827, 832-33 (Tex.App.-Dallas 2000, no pet.). We must determine whether the nonmovant produced more than a scintilla of probative evidence to raise a fact issue on the material questions presented. See Gen. Mills, 12 S.W.3d at 833. When analyzing no-evidence summary judgments, we consider the evidence in the light most *98 favorable to the nonmovant. See id. A no-evidence summary judgment is improperly granted if the respondent brings forth more than a scintilla of probative evidence to raise a genuine issue of material fact. King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 750-51 (Tex.2003). Less than a scintilla of evidence exists when the evidence is “so weak as to do no more than create a mere surmise or suspicion” of a fact. Id. More than a scintilla of evidence exists when the evidence “rises to a level that would enable reasonable and fair-minded people to differ in their conclusions.” Id.

We review Texas Mutual’s challenge to the trial court’s order limiting discovery for abuse of discretion.

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