Wal-Mart Stores, Inc. v. McKenzie

22 S.W.3d 566, 2000 Tex. App. LEXIS 2826, 2000 WL 490799
CourtCourt of Appeals of Texas
DecidedApril 27, 2000
DocketNo. 11-96-00275-CV
StatusPublished
Cited by5 cases

This text of 22 S.W.3d 566 (Wal-Mart Stores, Inc. v. McKenzie) 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
Wal-Mart Stores, Inc. v. McKenzie, 22 S.W.3d 566, 2000 Tex. App. LEXIS 2826, 2000 WL 490799 (Tex. Ct. App. 2000).

Opinion

OPINION

BOB DICKENSON, Senior Justice, (Retired).

ON REMAND

Jeremiah McKenzie sued his former employer, Wal-Mart Stores, Inc., and one of its managers, Rick Rumfelt. The jury resolved the disputed fact issues by finding that Wal-Mart had committed an unlawful employment practice (firing McKenzie “be[568]*568cause of race”) and that Rumfelt had slandered McKenzie (by saying that McKenzie “committed theft”). The trial court rendered judgment on the jury’s verdict that McKenzie recover the following damages from Wal-Mart for its unlawful employment practice: $50,000 plus prejudgment interest (for loss of earnings), $10,000 plus prejudgment interest (for mental anguish), $5,000 plus prejudgment interest (for damage to his credit reputation), $250,000 (as punitive damages), and $141,975 (for attorney’s fees). The trial court also rendered judgment on the verdict that McKenzie recover $500 plus prejudgment interest from Rumfelt for slander. Both defendants appeal.

On September 10, 1998, this court affirmed the judgment of the trial court. On August 26, 1999, the Supreme Court of Texas reversed the judgment of this court and remanded the cause to this court. See Wal-Mart Stores, Inc. v. McKenzie, 979 S.W.2d 364 (Tex.App.—Eastland 1998), rev’d, 997 S.W.2d 278 (Tex.1999). We will discuss all of appellants’ points of error as stated in their “Amended Brief After Remand.”

Background Facts

McKenzie went to work for Wal-Mart at its store in Palestine in 1989. He worked part-time while he was in high school, and he worked full-time after he graduated. McKenzie was promoted to assistant manager of the TBA (“tires, batteries, and accessories”) department at Palestine. In November of 1991, McKenzie was transferred to Tyler, and he became the manager of the TBA department at the North Tyler store. That department had not done well before McKenzie became manager. Under his management the department improved, and McKenzie received favorable evaluations from his supervisor. McKenzie testified that he “loved” working at Wal-Mart and that he planned to make it his career.

McKenzie also testified that the TBA department at the North Tyler store was in “terrible” condition when he arrived. McKenzie replaced the prior manager, Kenneth French, who was demoted and assigned to work under McKenzie. French did not think that he should have been demoted, and he resented the fact that McKenzie was brought in to replace him. Cathy Laughlin was another former manager of the TBA department at the North Tyler store, and her attitude toward McKenzie was “very negative.” McKenzie testified that Laughlin told him that she “wasn’t going to take any orders from a young black person.” (Emphasis added)

McKenzie testified that he complained about Laughlin to his supervisor, Rumfelt. After that, his relationship with Laughlin got worse, and she told him that she was going to get rid of him. McKenzie said that the relationship between Laughlin and Rumfelt was “very close” and that the two of them would laugh, joke, and go to the snack bar together. McKenzie testified that, during one of his evaluations, Rumfelt told him that: “You’re going to have to do whatever I say because you’re the black sheep of the family.” (Emphasis added)

The record also shows that portions of a videotaped deposition by Tammy Price were shown to the jury. Price was a Wal-Mart employee who testified that she heard Robert Cluff, a TBA department manager for Wal-Mart at a different store, make the statement about McKenzie that: “We finally got rid of that nigger.” (Emphasis added) The court reporter did not transcribe any of the questions and answers which were seen and heard by the jury when the videotaped depositions were played for the jury, and the videotapes are not in the record which was filed with this court. Other portions of the record show what Price said about Cluffs statement.

McKenzie was discharged on March 9, 1992, and he filed complaints with the Texas Commission on Human Rights and also with the Equal Employment Opportunity Commission of the federal government. [569]*569Both Commissions issued “right to sue” letters.

The Jury’s Verdict

The questions which were answered by the jury, and the jury’s answers, can be summarized as shown:

(1) Wal-Mart committed “an unlawful employment practice” against McKenzie, and the following sums of money would fairly and reasonably compensate him for damages he received:
Past loss of earnings: $50,000;
Future loss of earnings: $ 0.00;
Past mental anguish: $10,000;
Future mental anguish: $ 0.00;
Past loss of credit reputation: $5,000;
Future loss of credit: $ 0.00; and
Legal services for trial and appeal: $141,975.
(2) Wal-Mart (but not Rumfelt) engaged in “unlawful intentional discrimination” against McKenzie, and the following sums should be assessed as exemplary damages:
Rumfelt: $ 0.00; and
Wal-Mart: $250,000.
(5) Rumfelt (but not Wal-Mart) slandered McKenzie by publishing that he committed theft, and the following sums would fairly compensate him for his injuries:
Past mental anguish, embarrassment, and humiliation: $ 250;
Past injury to his character and reputation: $250; and
All other elements submitted: $ 0.00.

The Trial Court’s Judgment

The trial court rendered judgment on the jury’s verdict that McKenzie recover the following actual damages plus prejudgment interest from Wal-Mart: $50,000 (for past loss of earnings); $10,000 (for past mental anguish); and $5,000 (for past loss of credit reputation) plus “exemplary damages” in the sum of $250,000 and attorney’s fees in the sum of $141,975. The trial court also rendered judgment on the jury’s verdict that McKenzie recover $500 plus prejudgment interest from Rumfelt.

Issues Presented

Appellants state in their “Amended Brief After Remand” that these are the issues1 which are presented for our consideration:

(1) Whether McKenzie is barred by statute from recovering exemplary damages because the controlling version of the Texas Commission on Human Rights Act, former Article 5221k,2 does not allow recovery of exemplary damages. As this Court [the Court of Appeals] originally held, McKenzie cannot recover exemplary damages under [former Article 5221k], and he is jurisdictionally barred from relying on the Texas Labor Code to support a punitive award.
(2) Alternatively, the exemplary damage award is not supported by legally sufficient evidence, or is against the great weight and preponderance of the evidence, because there is a complete absence of malice on the part of the decision maker.

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22 S.W.3d 566, 2000 Tex. App. LEXIS 2826, 2000 WL 490799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wal-mart-stores-inc-v-mckenzie-texapp-2000.