Minyard Food Stores, Inc. v. Goodman
Minyard Food Stores, Inc. v. Goodman
Concurring in Part
concurring and dissenting.
I concur with the majority’s decision to affirm the judgment of the trial court with respect to Heflin. I disagree, however, with the majority’s conclusion that “there is some evidence from which a jury could reasonably find that Heflin was acting in the course and scope of his employment” with Minyard when he slandered Goodman. The “some evidence” to which the majority refers is Heflin’s cooperation with Minyard’s investigation of Flowers’s allegations. Contrary to the majority’s rationale, however, while it may have been within the course and scope of Heflin’s employment to cooperate with the investigation, there is no evidence that when Heflin lied about Goodman he did it to accomplish any objective for which he was employed. See Lyon v. Allsup’s Convenience Stores, Inc., 997 S.W.2d 345, 347-48 (Tex.App.—Fort Worth 1999, no pet.) (holding that supervising employee’s defamation of another employee not within course and scope of employment because it was “not done to accomplish any object for which [the employee] was hired”). In fact, all of the evidence before us proves Hef-lin’s lies about Goodman were deviations from his duties as a Minyard’s employee.
Therefore, I would reverse the judgment against Minyard, render judgment that Goodman take nothing on her slander claims against Minyard, and affirm the judgment as to Heflin.
Opinion of the Court
OPINION
I. INTRODUCTION
Appellants Minyard Food Stores, Inc. (Minyard) and Leslie W. Heflin (Heflin) appeal the trial court’s judgment in favor of Appellee Brenda Kay Goodman (Goodman) in an action for slander. The jury found that Heflin slandered Goodman in the course and scope of his employment at Minyard and awarded compensatory damages to Goodman in the amount of $325,000. Minyard brings three points challenging the legal and factual sufficiency of the evidence to support the jury’s verdict and its corresponding damages award and complaining that the trial court improperly instructed the jury on the issue of ratification. Heflin argues in two points that the evidence is insufficient to support the jury’s finding that he slandered Goodman and to support the jury’s award of damages. We affirm.
II. FACTUAL AND PROCEDURAL BACKGROUND
Goodman and Heflin were both employees of Minyard, working in store number 83 in Highland Village. Heflin was the store’s manager and Goodman was the POS, or point of sale, coordinator, responsible for ensuring that merchandise was properly and accurately priced in the store. On January 15,1998, Goodman was in her office at the store when Sheila Hughes, a checker, approached her
Marks, Heflin, and Goodman were immediately transferred to different Minyard stores. Rumors spread among other Min-yard employees that Heflin and Goodman had been transferred because they were having an affair. After the transfer, Goodman received four to six telephone calls per day from different individuals saying that they had heard she was transferred for having an affair with Heflin. One day, Goodman was buying her groceries at the Minyard store where she was working after the transfer when the checker commented, “I bet it was hard to have to go home and tell your husband you had been accused of having an affair.” At that point, Goodman decided that she could no longer work for Minyard and turned in her resignation.
Goodman filed suit against Hughes, Marks, Heflin, and Minyard, seeking damages for slander. The case was submitted to a jury, which found that Goodman had been slandered by Heflin but not by Hughes or Marks. The jury further found that the slanderous statements of Heflin were made in the course and scope of his employment at Minyard. The jury assessed actual damages of $325,000. The trial court entered judgment on the verdict against Heflin and Minyard, jointly and severally.
III. MINYARD’S APPEAL
A. Sufficiency of the Evidence
In its first and third points, Minyard argues that the trial court erred in denying its motions for a directed verdict, judgment notwithstanding the verdict, and new trial because the evidence is legally and factually insufficient to support the jury’s verdict. Specifically, Minyard contends that there is no evidence or insufficient evidence to show: (1) Heflin acted in the course and scope of his employment; (2) slander because Heflin’s statements were substantially true; (3) harm to Goodman’s reputation; or (4) ratification.
Standard of Review — Legal Sufficiency
Legal sufficiency points are addressed as either “no evidence” or “matter of law” points.
A “no-evidence” point may only be sustained when the record discloses one of the following: (1) a complete absence of evidence of a vital fact; (2) the court is barred by rules of law or evidence from giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a mere scintilla of evidence; or (4) the evidence establishes conclusively the opposite of a vital fact.
Standard of Review — Factual Sufficiency
As with legal sufficiency points, the standard of review on factual sufficiency points depends on who had the burden of proof at trial. When the party attacking the adverse finding did not have the burden of proof, the party must show that the evidence is insufficient to support the adverse finding.
Slander
In suits brought by private individuals, truth is a complete, affirmative defense to slander.
During the investigation, Heflin told Flowers that he had hugged and kissed Goodman on four or five occasions. Heflin also told Flowers that he had given Goodman a back rub and that there had been “heavy petting.” Heflin testified, “I remember telling him that it was, like, a make-out session.” According to Flowers, Goodman confirmed the back massage and also admitted that she hugged Heflin. Goodman, however, “emphatically denied” kissing Heflin. At trial, Goodman testified that she has never kissed Heflin. “I have hugged Mr. Heflin. I wouldn’t say it was — I didn’t mean anything by it ... it was a friendly hug.”
Minyard argues that Heflin’s statements were substantially true and, therefore, not defamatory because Goodman acknowledges hugging Heflin and receiving a massage from him and “adding a kiss to this mix simply does not alter the nature of the relationship. The inferences a reasonable person would draw from the truth do not differ qualitatively from the inferences one might draw with the addition of a kiss.” We find this argument unpersuasive. Based upon the evidence before it, the jury could have reasonably concluded that Heflin’s statements to Flowers that he kissed Goodman and engaged in “heavy petting” and a “make-out session” with her were false. Furthermore, the jury’s finding in this regard is not so contrary to the great weight and preponderance of the evidence as to be manifestly unjust. It is the jury’s duty to weigh the evidence and the credibility of the witnesses and to resolve any conflicts and inconsistencies in the testimony. Accordingly, we hold that the evidence is legally and factually sufficient to support the jury’s finding that Heflin’s statements were untrue and therefore slanderous.
Course and Scope
An action is sustainable against a corporation for defamation by its agent if such defamation is referable to the duty owing by the agent to the corporation and was made in the discharge of that duty.
Nevertheless, Minyard argues that if Heflin lied to Flowers about his relationship with Goodman, thereby slandering her, such slander was not authorized by Minyard, nor was it within the scope of Heflin’s duties as a store manager. “To the contrary, Minyard expected Heflin to tell the truth.” Indeed, Flowers testified that it is a violation of Minyard’s policies for an employee to lie during these internal investigations. Heflin also acknowledged that he was obligated as an employee to be honest and candid with Flowers during the investigation. This evidence, however, is not dispositive of the issue before us. The fact that an employee does an act that is unauthorized or that would not be approved by his employer does not mean that the employee was outside the scope of his employment.
Minyard further argues that upholding the jury’s finding of course and scope in this case “would do great violence to the protections of the investigative privilege” in the context of employer-employee communications. We disagree.
Slander is a defamatory statement that is orally communicated or published to a third person without legal excuse.
An employer has a qualified privilege that attaches to communications made in the course of an investigation following a report of employee wrongdoing.
In the case now before us, the trial court instructed the jury on the defense of privilege in question number one of the charge:
A defamatory statement is not a slander if the statement' is one not known to be false and not made with reckless indifference to the truth and comprehends a bona fide communication, oral or written, upon any subject in which the author or the public has an interest or with respect to which he has a duty to perform on another owing a corresponding duty.
The jury found, in answer to question number one, that Heflin slandered Goodman. Based on the evidence before it, including Goodman’s testimony, the jury could have reasonably concluded that Hef-lin made the statements to Flowers concerning his activities with Goodman with knowledge as to the falsity of these statements or with reckless disregard as to their truth. Thus, to the extent that Hef-lin’s acts were privileged, the privilege was lost, and does not, therefore, operate to shield Heflin or Minyard from liability.
Harm, to Reputation
A defamatory oral statement may be slander per se or slander per quod.
The rule ... has been generally applied to any statement that imputes any form of unchastity to a woman, married or single, irrespective of whether the conduct charged constitutes a criminal offense. The rule applies to a statement charging a woman with specific acts of adultery, fornication or any other form of sexual intercourse with a man other than her husband, as well as to general charges of unchaste conduct. It does not apply to mere imputations of immodesty that do not imply unchaste conduct.33
Here, Heflin’s statements to Flowers that he kissed, hugged, massaged, engaged in “heavy petting,” and had a “make-out session” with Goodman, a married woman, could reasonably be interpreted as allegations of sexual misconduct on the part of Goodman. Accordingly, as these statements were defamatory per se, Goodman was not required to prove harm to her reputation. We, therefore, overrule Minyard’s argument on this point.
Ratification
Minyard also challenges the legal and factual sufficiency of the evidence to support the jury’s finding in the exemplary damages phase of the trial that Minyard ratified Heflin’s slander of Goodman. We note that whether Minyard ratified or authorized Heflin’s acts is not determinative of its liability to Goodman under a theory of respondeat superior.
B. Jury Charge
In its second point, Minyard contends that the trial court improperly instructed the jury concerning ratification during the exemplary damages phase of the trial, thereby effectively denying Minyard its right to a bifurcated trial.
Question number two in the court’s charge at the exemplary damages phase of the trial asked, “Do you find from a preponderance of the evidence that Minyard Food Stores, Inc. ratified Leslie Heflin’s slander of Brenda Goodman?” The jury responded in the affirmative and proceeded to assess exemplary damages against Minyard in the amount of $500,000.
Punitive damages may be awarded against a corporation based on an act of an employee if the corporation or a manager of the corporation ratified or approved the act.
(c) In the first phase of a bifurcated trial, the trier of fact shall determine:
*142 (1) liability for compensatory and exemplary damages; and
(2) the amount of compensatory damages.
(d) If liability for exemplary damages is established during the first phase of a bifurcated trial, the trier of fact shall, in the second phase of the trial, determine the amount of exemplary damages to be awarded, if any.37
Thus, we conclude that the trial court erred by instructing the jury concerning liability for exemplary damages during the second phase of the trial. Our inquiry, however, does not end here. To obtain reversal of a judgment based upon an error in the trial court, the appellant must show not only that there was, in fact, error but also that the error probably caused rendition of an improper judgment in the case or probably prevented the appellant from properly presenting the case to the appellate court.
After receiving the jury’s verdict at the second phase of the trial, the court announced that it “deems the $500,000 at this time to be superfluous there having been no malice on the part of the person having made the statement.” The trial court then ordered joint and several liability against Heflin and Minyard in the amount of $325,000. The court’s judgment awards only actual damages to Goodman in the amount of $325,000. Such damages were assessed by the jury during the first phase of the trial. Accordingly, because the trial court did not include an award of exemplary damages in its judgment, the improper submission of the ratification issue during the second phase of the trial cannot be said to have caused the rendition of an improper judgment in this case. Such error, therefore, was harmless and does not mandate reversal of the judgment. We overrule Minyard’s second point.
IV. HEFLIN’S APPEAL
In his first point, Heflin argues that the evidence is legally and factually insufficient to support the jury’s verdict because the allegedly slanderous statements were substantially true and because Goodman produced no evidence or insufficient ew-dence of harm to her reputation. As discussed above in connection with Minyard’s appeal, a jury could reasonably conclude that Heflin’s statements that he kissed, hugged, engaged in “heavy petting” with, and “made-out” with Goodman were not substantially true. Additionally, as explained above, such allegations could be construed as imputing sexual misconduct on the part of Goodman, thus making the statements slanderous per se and actionable without proof of damage to Goodman’s reputation. Consequently, we overrule Heflin’s first point.
Heflin complains in his second point that the evidence is insufficient to support the jury’s award of compensatory damages to Goodman. Damages resulting from slander are purely personal and cannot be measured by any fixed rule or standard.
Here, the jury awarded Goodman $325,000 in compensatory damages. In reaching this figure, the jury was instructed to consider three elements: (1) lost earnings; (2) mental anguish, humiliation, and embarrassment; and (3) damage to reputation and character. Because damages are presumed for two of these elements, we cannot conclude that the jury’s award was excessive or the product of improper influence. We, therefore, overrule Heflin’ second point.
V. CONCLUSION
Having overruled all of Minyard’s and all of Heflin’s points on appeal, we affirm the judgment of the trial court with respect to both appellants.
CAYCE, C.J., filed a concurring and dissenting opinion.
. Gooch v. Am. Sling Co., 902 S.W.2d 181, 183 (Tex.App.—Fort Worth 1995, no writ).
. Cont'l Coffee Prods. Co. v. Cazarez, 937 S.W.2d 444, 450 (Tex. 1996); Burroughs Wellcome Co. v. Crye, 907 S.W.2d 497, 499 (Tex. 1995); In re King’s Estate, 150 Tex. 662, 244 S.W.2d 660, 661 (1951).
. Cazarez, 937 S.W.2d at 450; Leitch v. Hornsby, 935 S.W.2d 114, 118 (Tex. 1996).
. Uniroyal Goodrich Tire Co. v. Martinez, 977 S.W.2d 328, 334 (Tex. 1998) (citing Robert W. Calvert, “No Evidence" and “Insufficient Evidence" Points of Error, 38 Tex.L.Rev. 361, 362-63 (1960)).
. Orozco v. Sander, 824 S.W.2d 555, 556 (Tex. 1992).
. Gooch, 902 S.W.2d at 184.
. Garza v. Alviar, 395 S.W.2d 821, 823 (Tex. 1965).
. Mar. Overseas Corp. v. Ellis, 971 S.W.2d 402, 406-07 (Tex. 1998), cert. denied, 525 U.S. 1017, 119 S.Ct. 541, 142 L.Ed.2d 450 (1998).
. Randall’s Food Mkts., Inc. v. Johnson, 891 S.W.2d 640, 646 (Tex. 1995); Randolph v. Walker, 29 S.W.3d 271, 279 (Tex.App.-Houston [14th Dist.] 2000, pet. denied).
. Victoria Bank & Trust Co. v. Brady, 811 S.W.2d 931, 940 (Tex. 1991).
. Id.; Sterner v. Marathon Oil Co., 767 S.W.2d 686, 690 (Tex. 1989).
. Gooch, 902 S.W.2d at 184.
. Ames v. Ames, 776 S.W.2d 154, 158-59 (Tex. 1989), cert. denied, 494 U.S. 1080, 110 S.Ct. 1809, 108 L.Ed.2d 939 (1990); Cain v. Bain, 709 S.W.2d 175, 176 (Tex. 1986).
. Watson v. Prewitt, 159 Tex. 305, 320 S.W.2d 815, 816 (1959); In re King’s Estate, 244 S.W.2d at 661-62.
. Texam Oil Corp. v. Poynor, 436 S.W.2d 129, 130 (Tex. 1968).
. Id.; Hooper v. Pitney Bowes, Inc., 895 S.W.2d 773, 776 (Tex.App.—Texarkana 1995, writ denied).
. Hooper, 895 S.W.2d at 777.
. Id.
. Randall’s Food Mkts., 891 S.W.2d at 646.
. Hanssen v. Our Redeemer Lutheran Church, 938 S.W.2d 85, 92 (Tex.App.—Dallas 1996, writ denied).
. Id.
. Dixon v. Southwestern Bell Tel. Co., 607 S.W.2d 240, 242 (Tex. 1980).
. Id.
. Id.
. Randall’s Food Mkts., 891 S.W.2d at 646.
. Id.
. Id.
. Hooper, 895 S.W.2d at 777.
. Kelly v. Diocese of Corpus Christi, 832 S.W.2d 88, 91 (Tex.App.—Corpus Christi 1992, writ dism’d w.o.j.).
. Id.
. Gray v. HEB Food Store No. 4, 941 S.W.2d 327, 329 (Tex.App.—Corpus Christi 1997, writ denied); Villasenor v. Villasenor, 911 S.W.2d 411, 418 (Tex.App.—San Antonio 1995, no writ).
. Restatement (Second) of Torts § 574 cmt. b (1977).
. Texam Oil Corp., 436 S.W.2d at 130; Syndex Corp. v. Dean, 820 S.W.2d 869, 873 (Tex.App.—Austin 1991, writ denied).
. Hammerly Oaks, Inc. v. Edwards, 958 S.W.2d 387, 391 (Tex. 1997).
. Green Tree Fin. Corp. v. Garcia, 988 S.W.2d 776, 779 (Tex.App.—San Antonio 1999, no pet.).
. Tex.Civ.Prac. & Rem.Code Ann. § 41.009(c)-(d) (Vernon 1997).
. Tex.R.App.P. 44.1(a); In re D.I.B., 988 S.W.2d 753, 756 n. 10 (Tex. 1999); Tex. Dep't of Human Servs. v. White, 817 S.W.2d 62, 63 (Tex. 1991).
. Fontenot Petro-Chem & Marine Servs., Inc. v. LaBono, 993 S.W.2d 455, 460 (Tex.App.—Corpus Christi 1999, pet. denied); Wal-Mart Stores, Inc. v. Odem, 929 S.W.2d 513, 527 (Tex.App.—San Antonio 1996, writ denied).
. Wal-Mart Stores, 929 S.W.2d at 527.
. Mitre v. Brooks Fashion Stores, Inc., 840 S.W.2d 612, 620 (Tex.App.—Corpus Christi 1992, writ denied).
Reference
- Full Case Name
- MINYARD FOOD STORES, INC., and Leslie W. Heflin, Appellants, v. Brenda Kay GOODMAN, Appellee
- Cited By
- 20 cases
- Status
- Published