Tracie Jackson v. NAACP Houston Branch and Yolanda Smith ( in Her Official Capacity) and National Association for the Advancement of Colored People D/B/A NAACP

Court of Appeals of Texas·Decided September 15, 2016·No. 14-15-00507-CV·Published

Opinion

Affirmed and Memorandum Opinion filed September 15, 2016.

In the

Fourteenth Court of Appeals

NO. 14-15-00507-CV

TRACIE JACKSON, Appellant V.

NAACP HOUSTON BRANCH, YOLANDA SMITH (IN HER OFFICIAL CAPACITY), AND NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE D/B/A NAACP, Appellees

On Appeal from the 113th District Court Harris County, Texas Trial Court Cause No. 2013-77429

MEMORANDUM OPINION

Appellant Tracie Jackson challenges the trial court’s final summary judgment in favor of appellees NAACP Houston Branch, Yolanda Smith (in her official capacity), and the National Association for the Advancement of Colored People d/b/a NAACP on all of Jackson’s causes of action. Concluding that the trial court did not err, we affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

The NAACP is a nonprofit association consisting of Units, which include Branches, formed pursuant to the NAACP’s Constitutions and Bylaws for Units. The NAACP seeks to enact and enforce state and federal laws designed to protect the civil rights of American citizens and to secure political, social, and economic equality. An individual can become a member of the NAACP subject to the consent of its Board of Directors if she agrees to abide by the NAACP’s rules and policies and the Board’s decisions, and if she pays her annual dues.

The NAACP Houston Branch is organized pursuant to the NAACP’s Constitution and Bylaws. The Houston Branch is governed by an Executive Committee, including a Branch President. The Executive Director is in charge of the daily operations of the Houston Branch and reports to the Executive Committee. The Executive Director cannot serve on the Executive Committee. Yolanda Smith has been the Houston Branch’s Executive Director since approximately 2000. Tracie Jackson was a member of the NAACP from September 2010 to the end of October 2011.

In 2006, the NAACP conducted an audit of the Houston Branch covering the years 2003 through 2005. This audit revealed accounting and recording issues, problems with soliciting donations and grants, and related-party transactions involving Smith’s relatives. The Houston Branch responded to this audit; while it disagreed with certain findings, it agreed to admonish Smith.

In May 2010, Smith hired Jackson as an employment law staff attorney with the Houston Branch. Jackson’s salary was funded by a Basic Legal Services (BLS) grant provided by the Texas Access to Justice Foundation (TAJF).

On or about June 14, 2010, Smith informed Jackson and other staff that the

Houston Branch could not meet payroll. Jackson and other employees expressed their concerns about not being paid to Smith and the Executive Committee. On or about June 29, 2010, the Houston Branch’s Personnel Committee recommended adopting a new policy regarding grant-funded employees. The new policy was that such employees would be terminated at the expiration of the grant funding and they could reapply for their positions when the grant was renewed or a new grant was received. Jackson received a letter from Smith outlining the policy on July 30. On August 2, 2010, Jackson called the director of grants for TAJF, Jonathan Vickery, to inform him of the payroll concerns. When Vickery contacted Smith, she told Vickery that Jackson was a “problem employee” and “there were morale problems.” The Executive Committee approved the new policy on August 16, 2010.

On August 31, 2010, Jackson’s employment was terminated due to the expiration of the BLS grant funding her salary. In November 2010, Jackson reapplied and interviewed for the employment law staff position, but someone else was hired instead.

On the night of May 26, 2011, there was an incident at the Houston Branch.

Certain members of the Executive Committee entered Smith’s office while she was not there. After Smith returned, there was a heated exchange and Smith left the building with her computer hard drive. Smith was terminated. In June 2011, the NAACP placed Smith on paid administrative leave pending review and in July 2011 ultimately reinstated Smith as Executive Director. Also in July 2011, the NAACP suspended the membership of the Houston Branch President and those Executive Committee members involved in the May 26 incident.

In June 2011, the TAJF suspended the final installment of the Houston Branch’s 2010-2011 grants based on its opinion that the Houston Branch was in

default of the grant agreements. In July 2011, the TAJF board of directors voted not to fund the Houston Branch’s grant proposals for the next year.

Jackson pursued various proceedings. In November 2010, Jackson filed an unfair labor practices charge under the National Labor Relations Act (NLRA), 29 U.S.C. § 151 et seq., with the National Labor Relations Board (NLRB). A complaint issued against the Houston Branch in February 2011, and there was a hearing before an administrative law judge in May 2011. On July 15, 2011, the administrative law judge issued its finding that Jackson’s termination and the Houston Branch’s refusal to rehire her violated section 8(a)(1) of the NLRA and recommended back pay and reinstatement. On October 12, 2012, the NLRB ultimately adopted the administrative law judge’s decision and recommended order.

In July 2011, Jackson sued the NAACP, the Houston Branch, and Smith in federal district court for: violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961 et seq.; breach of fiduciary duties; negligent retention and hiring; tortious interference with contract; and defamation. Linda Dunson, another grant-funded attorney working at the Houston Branch who also was terminated and not rehired, and who was one of the suspended Executive Committee members involved in the May 26 incident, was added as a plaintiff. The district court dismissed all of their claims with prejudice, and Jackson and Dunson appealed. The Fifth Circuit Court of Appeals affirmed the dismissal with regard to the RICO claims but remanded the state-law claims. See Jackson v. Nat’l Ass’n for the Advancement of Colored People, 546 Fed. Appx. 438, 444 (5th Cir. 2013) (per curiam).

On July 9, 2011, the Houston Chronicle published an article entitled, “NAACP suspends executive panel here.” Under a subheading entitled, “Lawsuit

filed July 1,” the article provided details regarding the allegations contained in Jackson’s federal lawsuit. In the article, Smith referred to Jackson as a “disgruntled employee.”

In January 2014, Jackson and Dunson filed suit against the Houston Branch, Smith, and the NAACP in Harris County district court.1 Dunson settled, and the trial court granted the parties’ agreed motion to enter a take-nothing judgment on her claims. At the time of summary judgment, in her third amended complaint, Jackson alleged claims against the NAACP for breach of contract, breach of fiduciary duties, fraud, and negligent retention. Jackson alleged claims against the Houston Branch and Smith for breach of contract, breach of fiduciary duties, fraud, defamation per se, and failure to allow members to inspect financial records per section 252.010 of the Texas Business Organizations Code.

The NAACP filed a motion for summary judgment and attached exhibits.2 The NAACP asserted both traditional and no-evidence grounds in its motion. With regard to all of Jackson’s claims, the NAACP argued that: (1) they are preempted

1 In her brief, Jackson asserts that the federal district court declined to hear the state-law claims pursuant to supplemental jurisdiction and that Dunson and she filed suit in state court within 60 days of the district court’s dismissal.

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Tracie Jackson v. NAACP Houston Branch and Yolanda Smith ( in Her Official Capacity) and National Association for the Advancement of Colored People D/B/A NAACP (Tracie Jackson v. NAACP Houston Branch and Yolanda Smith ( in Her Official Capacity) and National Association for the Advancement of Colored People D/B/A NAACP) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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