Texas Workers’ Compensation Labor Code Definitions–Texas Workers’ Compensation Defense Attorneys

TEXAS LABOR CODE CHAPTER 401. GENERAL PROVISIONS

SUBCHAPTER B. DEFINITIONS


Sec. 401.011. GENERAL DEFINITIONS. In this subtitle:

(1) “Adjuster” means a person licensed under Chapter 4101, Insurance Code.

(2) “Administrative violation” means a violation of this subtitle, a rule adopted under this subtitle, or an order or decision of the commissioner that is subject to penalties and sanctions as provided by this subtitle.

(3) “Agreement” means the resolution by the parties to a dispute under this subtitle of one or more issues regarding an injury, death, coverage, compensability, or compensation. The term does not include a settlement.

(4) “Alien” means a person who is not a citizen of the United States.

(5) “Benefit” means a medical benefit, an income benefit, a death benefit, or a burial benefit based on a compensable injury.

(5-a) “Case management” means a collaborative process of assessment, planning, facilitation, and advocacy for options and services to meet an individual’s health needs through communication and application of available resources to promote quality, cost-effective outcomes.

(6) “Certified self-insurer” means a private employer granted a certificate of authority to self-insure, as authorized by this subtitle, for the payment of compensation.

(7) “Child” means a son or daughter. The term includes an adopted child or a stepchild who is a dependent of the employee.

(8) “Commissioner” means the commissioner of workers’ compensation.

(9) “Commute” means to pay in a lump sum.

(10) “Compensable injury” means an injury that arises out of and in the course and scope of employment for which compensation is payable under this subtitle.

(11) “Compensation” means payment of a benefit.

(12) “Course and scope of employment” means an activity of any kind or character that has to do with and originates in the work, business, trade, or profession of the employer and that is performed by an employee while engaged in or about the furtherance of the affairs or business of the employer. The term includes an activity conducted on the premises of the employer or at other locations. The term does not include:

(A) transportation to and from the place of employment unless:

(i) the transportation is furnished as a part of the contract of employment or is paid for by the employer;

(ii) the means of the transportation are under the control of the employer; or

(iii) the employee is directed in the employee’s employment to proceed from one place to another place; or

(B) travel by the employee in the furtherance of the affairs or business of the employer if the travel is also in furtherance of personal or private affairs of the employee unless:

(i) the travel to the place of occurrence of the injury would have been made even had there been no personal or private affairs of the employee to be furthered by the travel; and

(ii) the travel would not have been made had there been no affairs or business of the employer to be furthered by the travel.

(12-a) “Credentialing” has the meaning assigned by Chapter 1305, Insurance Code.

(13) “Death benefit” means a payment made under this subtitle to a legal beneficiary because of the death of an employee.

(13-a) “Department” means the Texas Department of Insurance.

(14) “Dependent” means an individual who receives a regular or recurring economic benefit that contributes substantially to the individual’s welfare and livelihood if the individual is eligible for distribution of benefits under Chapter 408.

(15) “Designated doctor” means a doctor appointed by mutual agreement of the parties or by the division to recommend a resolution of a dispute as to the medical condition of an injured employee.

(16) “Disability” means the inability because of a compensable injury to obtain and retain employment at wages equivalent to the preinjury wage.

(16-a) “Division” means the division of workers’ compensation of the department.

(17) “Doctor” means a doctor of medicine, osteopathic medicine, optometry, dentistry, podiatry, or chiropractic who is licensed and authorized to practice.

(18) “Employer” means, unless otherwise specified, a person who makes a contract of hire, employs one or more employees, and has workers’ compensation insurance coverage. The term includes a governmental entity that self-insures, either individually or collectively.

(18-a) “Evidence-based medicine” means the use of current best quality scientific and medical evidence formulated from credible scientific studies, including peer-reviewed medical literature and other current scientifically based texts, and treatment and practice guidelines in making decisions about the care of individual patients.

(19) “Health care” includes all reasonable and necessary medical aid, medical examinations, medical treatments, medical diagnoses, medical evaluations, and medical services. The term does not include vocational rehabilitation. The term includes:

(A) medical, surgical, chiropractic, podiatric, optometric, dental, nursing, and physical therapy services provided by or at the direction of a doctor;

(B) physical rehabilitation services performed by a licensed occupational therapist provided by or at the direction of a doctor;

(C) psychological services prescribed by a doctor;

(D) the services of a hospital or other health care facility;

(E) a prescription drug, medicine, or other remedy; and

(F) a medical or surgical supply, appliance, brace, artificial member, or prosthetic or orthotic device, including the fitting of, change or repair to, or training in the use of the appliance, brace, member, or device.

(20) “Health care facility” means a hospital, emergency clinic, outpatient clinic, or other facility providing health care.

(21) “Health care practitioner” means:

(A) an individual who is licensed to provide or render and provides or renders health care; or

(B) a nonlicensed individual who provides or renders health care under the direction or supervision of a doctor.

(22) “Health care provider” means a health care facility or health care practitioner.

(22-a) “Health care reasonably required” means health care that is clinically appropriate and considered effective for the injured employee’s injury and provided in accordance with best practices consistent with:

(A) evidence-based medicine; or

(B) if that evidence is not available, generally accepted standards of medical practice recognized in the medical community.

(23) “Impairment” means any anatomic or functional abnormality or loss existing after maximum medical improvement that results from a compensable injury and is reasonably presumed to be permanent.

(24) “Impairment rating” means the percentage of permanent impairment of the whole body resulting from a compensable injury.

(25) “Income benefit” means a payment made to an employee for a compensable injury. The term does not include a medical benefit, death benefit, or burial benefit.

(25-a) “Independent review organization” has the same meaning as in Section 1305.004(a)(11), Insurance Code.

(26) “Injury” means damage or harm to the physical structure of the body and a disease or infection naturally resulting from the damage or harm. The term includes an occupational disease.

(27) “Insurance carrier” means:

(A) an insurance company;

(B) a certified self-insurer for workers’ compensation insurance;

(C) a certified self-insurance group under Chapter 407A; or

(D) a governmental entity that self-insures, either individually or collectively.

(28) “Insurance company” means a person authorized and admitted by the Texas Department of Insurance to do insurance business in this state under a certificate of authority that includes authorization to write workers’ compensation insurance.

(29) “Legal beneficiary” means a person entitled to receive a death benefit under this subtitle.

(30) “Maximum medical improvement” means the earlier of:

(A) the earliest date after which, based on reasonable medical probability, further material recovery from or lasting improvement to an injury can no longer reasonably be anticipated;

(B) the expiration of 104 weeks from the date on which income benefits begin to accrue; or

(C) the date determined as provided by Section 408.104.

(31) “Medical benefit” means payment for health care reasonably required by the nature of a compensable injury and intended to:

(A) cure or relieve the effects naturally resulting from the compensable injury, including reasonable expenses incurred by the employee for necessary treatment to cure and relieve the employee from the effects of an occupational disease before and after the employee knew or should have known the nature of the disability and its relationship to the employment;

(B) promote recovery; or

(C) enhance the ability of the employee to return to or retain employment.

(31-a) “Network” or “workers’ compensation health care network” means an organization that is:

(A) formed as a health care provider network to provide health care services to injured employees;

(B) certified in accordance with Chapter 1305, Insurance Code, and rules of the commissioner of insurance; and

(C) established by, or operates under contract with, an insurance carrier.

(32) “Objective” means independently verifiable or confirmable results that are based on recognized laboratory or diagnostic tests, or signs confirmable by physical examination.

(33) “Objective clinical or laboratory finding” means a medical finding of impairment resulting from a compensable injury, based on competent objective medical evidence, that is independently confirmable by a doctor, including a designated doctor, without reliance on the subjective symptoms perceived by the employee.

(34) “Occupational disease” means a disease arising out of and in the course of employment that causes damage or harm to the physical structure of the body, including a repetitive trauma injury. The term includes a disease or infection that naturally results from the work-related disease. The term does not include an ordinary disease of life to which the general public is exposed outside of employment, unless that disease is an incident to a compensable injury or occupational disease.

(34-a) “Orthotic device” means a custom-fitted or custom-fabricated medical device that is applied to a part of the human body to correct a deformity, improve function, or relieve symptoms related to a compensable injury or occupational disease.

(35) “Penalty” means a fine established by this subtitle.

(35-a) “Prosthetic device” means an artificial device designed to replace, wholly or partly, an arm or leg.

(36) “Repetitive trauma injury” means damage or harm to the physical structure of the body occurring as the result of repetitious, physically traumatic activities that occur over time and arise out of and in the course and scope of employment.

(37) “Representative” means a person, including an attorney, authorized by the commissioner to assist or represent an employee, a person claiming a death benefit, or an insurance carrier in a matter arising under this subtitle that relates to the payment of compensation.

(38) “Research center” means the research functions of the Texas Department of Insurance required under Chapter 405.

(38-a) “Retrospective review” means the utilization review process of reviewing the medical necessity and reasonableness of health care that has been provided to an injured employee.

(39) “Sanction” means a penalty or other punitive action or remedy imposed by the commissioner on an insurance carrier, representative, employee, employer, or health care provider for an act or omission in violation of this subtitle or a rule, order, or decision of the commissioner.

(40) “Settlement” means a final resolution of all the issues in a workers’ compensation claim that are permitted to be resolved under the terms of this subtitle.

(41) “Subjective” means perceivable only by an employee and not independently verifiable or confirmable by recognized laboratory or diagnostic tests or signs observable by physical examination.

(42) “Treating doctor” means the doctor who is primarily responsible for the employee’s health care for an injury.

(42-a) “Utilization review” has the meaning assigned by Chapter 4201, Insurance Code.

(42-b) “Utilization review agent” has the meaning assigned by Chapter 4201, Insurance Code.

(42-c) “Violation” means an administrative violation subject to penalties and sanctions as provided by this subtitle.

(43) “Wages” includes all forms of remuneration payable for a given period to an employee for personal services. The term includes the market value of board, lodging, laundry, fuel, and any other advantage that can be estimated in money that the employee receives from the employer as part of the employee’s remuneration.

(44) “Workers’ compensation insurance coverage” means:

(A) an approved insurance policy to secure the payment of compensation;

(B) coverage to secure the payment of compensation through self-insurance as provided by this subtitle; or

(C) coverage provided by a governmental entity to secure the payment of compensation.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1443, Sec. 1, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 275, Sec. 2, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 3.003, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch. 133 (H.B. 1003), Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 134 (H.B. 1006), Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 147 (S.B. 458), Sec. 1, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch. 1330 (H.B. 4290), Sec. 13, eff. September 1, 2009.

Sec. 401.012. DEFINITION OF EMPLOYEE. (a) In this subtitle, “employee” means each person in the service of another under a contract of hire, whether express or implied, or oral or written.

(b) The term “employee” includes:

(1) an employee employed in the usual course and scope of the employer’s business who is directed by the employer temporarily to perform services outside the usual course and scope of the employer’s business;

(2) a person, other than an independent contractor or the employee of an independent contractor, who is engaged in construction, remodeling, or repair work for the employer at the premises of the employer; and

(3) a person who is a trainee under the Texans Work program established under Chapter 308.

(c) The term “employee” does not include:

(1) a master of or a seaman on a vessel engaged in interstate or foreign commerce; or

(2) a person whose employment is not in the usual course and scope of the employer’s business.

(d) A person who is an employee for the purposes of this subtitle and engaged in work that otherwise may be legally performed is an employee despite:

(1) a license, permit, or certificate violation arising under state law or municipal ordinance; or

(2) a violation of a law regulating wages, hours, or work on Sunday.

(e) This section may not be construed to relieve from fine or imprisonment any individual, firm, or corporation employing or performing work or a service prohibited by a statute of this state or a municipal ordinance.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 456, Sec. 6, eff. Sept. 1, 1997.

Sec. 401.013. DEFINITION OF INTOXICATION. (a) In this subtitle, “intoxication” means the state of:

(1) having an alcohol concentration to qualify as intoxicated under Section 49.01(2), Penal Code; or

(2) not having the normal use of mental or physical faculties resulting from the voluntary introduction into the body of:

(A) an alcoholic beverage, as defined by Section 1.04, Alcoholic Beverage Code;

(B) a controlled substance or controlled substance analogue, as defined by Section 481.002, Health and Safety Code;

(C) a dangerous drug, as defined by Section 483.001, Health and Safety Code;

(D) an abusable glue or aerosol paint, as defined by Section 485.001, Health and Safety Code; or

(E) any similar substance, the use of which is regulated under state law.

(b) The term “intoxication” does not include the loss of normal use of mental or physical faculties resulting from the introduction into the body of a substance:

(1) taken under and in accordance with a prescription written for the employee by the employee’s doctor; or

(2) listed under Subsection (a) by inhalation or absorption incidental to the employee’s work.

(c) On the voluntary introduction into the body of any substance listed under Subsection (a)(2)(B), based on a blood test or urinalysis, it is a rebuttable presumption that a person is intoxicated and does not have the normal use of mental or physical faculties.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 14.48, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1426, Sec. 1, eff. Sept. 1, 1999.

Martindale AVtexas[2]

 

 

 

 

 

 

 

 

 

 

 

Texas Pay Day Law Appeals–Texas Employment Attorneys

Texas Payday Law Appeals — Texas Workforce Commission

Overview

An appeal is your written notice that you disagree with a TWC decision and want your case decided through the appeal process. State law gives TWC sole authority in disputed wage claims; no other state agency or official can affect the outcome of an appeal. To participate in an appeal you must meet submission deadlines.

The appeal process is structured so that you do not need an attorney. You may choose to have an attorney or other person represent you at your own expense.

There are three levels of appeal. You start with the first level, and if you disagree with that decision, you may proceed through the other levels.

  1. Appeal to the Appeal Tribunal
  2. Appeal to the Commission
  3. Motion for Rehearing or Appeal to a Civil Court

Appeal to the Appeal Tribunal

The first step in the appeals process is an appeal to the Appeal Tribunal. The Appeal Tribunal is the name the Texas Payday Law gives to hearing officers who hold wage claim hearings. Each appeal case has only one hearing officer.

The first appeal is a telephone hearing, except that when a sign-language interpreter is required the hearing may be in-person instead.

The claimant and employer may present testimony, witnesses, and documents relevant to its case. During the Appeal Tribunal hearing, the hearing officer will determine what is relevant and make sure that the record is complete. After the hearing, the hearing officer will mail a decision to the interested parties.

How to Appeal a Determination

These instructions are for the first step in the appeals process, which is an appeal to the Appeal Tribunal. The first step is to appeal in writing to TWC.

You must appeal in writing within 21 calendar days from the date that we mail you the Preliminary Wage Determination Order, which is shown at the top of that form. If the twenty-first day falls on a federal or state holiday, you have until the next business day to submit your appeal.

You can submit your written appeal online, in person at your Workforce Solutions office, or by mailing or faxing your appeal letter to the Special Hearings Department at the address or fax number on your Preliminary Wage Determination Order. You cannot submit an appeal by e-mail or over the telephone. If you choose to fax the information, keep the paperwork that indicates successful transmission of your appeal.

Your letter or appeal form must include:

  • Your name
  • Wage claim number
  • Your Social Security Number or TWC Tax ID number
  • Your current address
  • The date TWC mailed you the Preliminary Wage Determination Order
  • A copy of the Preliminary Wage Determination Order, if possible
  • Any dates on which you will not be able to participate in a hearing

Keep a copy of your appeal for your records.

Accommodations for Your Hearing

Inform us in writing as early as possible if you need accommodations for the appeal hearing:

  • If you or your witnesses need interpreters – include needed languages
  • If you or your witnesses have a hearing impairment
  • If you need access to a telephone or fax machine

Appeal Hearing Notification Details

It may take six to eight weeks to receive a hearing information packet with information about your appeal. TWC will mail you the packet ten to twenty days before your hearing.

The hearing information packet includes:

  • The Notice of Telephone Hearing, which includes the date and time of hearing, the telephone number to call for the hearing, and the name and contact information of the hearing officer assigned to the hearing
  • Instructions on how to participate in the hearing
  • Instructions on how to submit documents for the telephone hearing to the hearing officer and to the other side
  • The claim issues up for discussion

Change Your Address

It is important that you keep your mailing address up to date because we will mail the hearing information packet and appeal decision to the address in our records. Change your address with us as needed in writing by mail or fax to the Special Hearings address or fax number listed under Contact Information.

Preparing for Your Hearing

Allow enough time for your hearing. How long the hearing takes depends on many things, including the number of witnesses, documents, and issues in the case. Usually, hearings take from one hour to four hours to complete.

It is important to prepare all of the documentation, witnesses and evidence that you need to support your side of the issues. It is your responsibility to make sure that both the hearing officer and the other side receive copies of all the documents you wish to refer to before the hearing date. This will increase your credibility and allow the hearing officer to make a just determination of the facts.

Document Evidence You Want to Present at Your Hearing

Case documentation could include:

  • Letters and memos
  • Timecards
  • Pay stubs or payroll records
  • Employee handbooks
  • Written authorizations for deductions from wages
  • Employment agreements
  • Commission agreements and invoices

All documents must relate directly to the issues on the hearing notice. Be ready to tell who prepared the evidence and how it helps your case.

Any documents you want to present during the hearing must be provided to the hearing officer and to the other party in your appeal (the employee or the employer) if applicable.

  • For a telephone hearing, mail or fax a copy of all of the documents you want to present to the hearing officer and to the other party. Send them as far in advance as possible. Documents cannot be used if they are not provided in enough time before the hearing begins.
  • The hearing officer’s address and fax number is on the first page of the hearing information packet. If there is another party in your case, that person’s mailing address is also on the first page.
  • For an in-person hearing, you can bring the documents with you or send them in advance.

Calling Witnesses & Notifying the Hearing Officer

If you wish to call witnesses, they should have personal (first-hand) knowledge about the background, policies, incidents, or events regarding the issues on the hearing notice. For example, they either saw the incident, heard a supervisor say something directly, or saw the paperwork connected to the event.

Contact your witnesses before the hearing and have them arrange their schedules so they can participate in the hearing.

During the hearing, you must give the hearing officer your list of witnesses and the contact phone numbers. Have your witnesses remain available for the call until the hearing officer or you release them from the hearing.

If your hearing is in person, simply have your witnesses appear at the hearing location at the time and date for the hearing, or they may participate by phone as stated above.

If You Need to Subpoena Witnesses

A subpoena is a written legal order that requires a person to appear at a hearing to testify or produce documents for a hearing.

Subpoenas may be issued at the discretion of the hearing officer. A request for a subpoena will be granted only after the hearing officer determines that the records or witnesses requested to be subpoenaed are relevant to the issues on appeal.

TWC pays the applicable fees for issuing a subpoena.

Withdrawing Your Appeal

If you no longer want to proceed with the hearing, you have the option to withdraw your appeal. Only the individual who filed the appeal can withdraw or cancel the appeal.

The withdrawal of your appeal must be done in writing or recorded by contacting the hearing officer and also must contain the specific words that you wish to “withdraw your appeal.”

The appeal can be withdrawn either before or during the hearing.

Participating in Your Appeal Hearing

Before the Hearing

For telephone hearings, you must provide a phone number where we can reach you for the hearing. Provide your contact information on the day of your hearing, at least 10 minutes before your hearing is scheduled to begin. You can give us your phone number in one of two ways:

  • Register online at C2T Online Registration, https://tx.c2tinc.com/register, and follow the instructions on that web site. You will need your Case Number.
  • Call TWC at our toll-free number shown on your Notice of Hearing and speak with the receptionist.

If you do not call in on time, you may not be allowed to participate in the hearing.

Beginning the Hearing

When it is time for the hearing, the hearing officer will call you and connect all parties and witnesses to a conference call. The hearing will begin when everyone is connected.

All of the hearings are scheduled for the Central Time zone. If you have any questions about when you should call, please call the toll-free number listed on the Notice of Hearing.

Why You Should Participate

It is very important that you provide your phone number for your hearing before the scheduled hearing time and that you take part in your appeal hearing. The hearing officer makes their decision based entirely on the evidence given at the appeal hearing.

If you find you cannot participate in the hearing for any reason, mail or fax a written postponement request as soon as you can. TWC rules allow hearing officers to delay or reschedule hearings only in specific, limited cases.

What Happens in the Appeal Tribunal Hearing

All hearings are recorded. The law requires the hearing officer to give a very specific opening statement at the beginning of each hearing. This opening statement includes:

  • Information identifying the case for the record
  • What determination and issues are on appeal
  • Who is taking part in the hearing
  • Each party’s rights
  • The procedures used for the hearing

The hearing officer will put everyone who will speak under oath, and then answer questions about the opening statement before hearing any testimony.

If you have more than one person present, you must designate one primary representative, which may be you or your chosen representative. That primary representative will be able to:

  • Question the witnesses
  • Give their own testimony
  • Look at and object to documents

Order of Testimony in a Hearing

The hearing officer will hear statements from each side in turn, one witness at a time. The hearing officer will question the witnesses, and then allow them to add relevant information.

The witness’s primary representative will be able to question the witness. The other side can then question the witness. The hearing will follow this procedure until everyone has spoken.

The hearing officer will discuss any documents that were sent in by either party or that are part of the case file. Documents will be admitted into evidence after ruling on any objections by either side.

The hearing officer will then let both sides add any new testimony before ending the hearing.

What to Do If You Did Not Participate in the Appeal Hearing

If you did not participate in the Appeal hearing and disagree with the decision, you can submit a request to reopen your case at the Appeal Tribunal level within 14 calendar days after the mailing date of the decision. However, you must show that you had a good reason for missing the prior hearing.

After the Hearing

After the hearing is complete, the hearing officer will mail you a written decision, usually within five to ten working days.

Request an Audio Recording of Your Hearing

You can request a copy of the CD recording of your hearing. Your written request must include identifying information: your name, appeal number, the last four digits of your Social Security number, and your telephone number and mailing address.

Mail or fax your request in writing to the TWC Special Hearings Department:

  • Special Hearings
    Texas Workforce Commission
    Attn: CD Duplication
    101 E 15th St, Rm 406
    Austin, TX, 78778
  • Fax: 512-463-9318, Attention: CD Duplication

It usually takes one to two weeks for you to receive your copy. The first copy is free; there is a small charge for any additional copies. Only parties to the appeal can request a copy of the recording.

Appeal to the Commission

If you disagree with the results of the Appeal Tribunal, you may appeal to the Texas Workforce Commission. The Commission will rule on your case after reviewing the Appeal Tribunal decision and listening to the recorded hearing. E-mail questions to commission.appeals@twc.state.tx.us.

You must appeal in writing within 14 calendar days from the date TWC mailed you the Appeal Tribunal decision. The mailing date is printed on the coversheet of your appeal decision.

You can submit your written appeal online, in person at your Workforce Solutions office, or by mailing or faxing your appeal letter to Commission Appeals at the address or fax number in the instructions included with your Appeal Tribunal decision. You cannot file an appeal by e-mail or over the telephone. If you choose to fax the information, keep the paperwork that indicates successful transmission of your appeal.

Commission Appeal Process

A reviewing attorney in Commission Appeals will review the audio-recording of your hearing. The attorney will also review all other evidence accepted at your first appeal hearing. The reviewing attorney will make a recommendation to the Commission regarding the decision in the case.

The Commissioners will review the recommendation separately and will decide whether or not to follow it. Then the Commission will vote on the case and issue a written decision. They may order an additional hearing to gather more evidence, but they usually do not.

We will mail you the decision from the Commission.

If you disagree with the Commission decision, you have two options: a Motion for Rehearing, or an appeal to a civil court.

Motion for Rehearing

If you disagree with the Commission decision, you may request a Motion for Rehearing by the Commission within 14 calendar days after the date TWC mailed you the Commission decision. TWC will grant the Motion for Rehearing only if you show these three things

  • Important new information about your case
  • A compelling reason why you did not present the new information earlier
  • Why you think the new information could change the Commission decision

You can submit your written Motion for Rehearing online, in person at your nearest Workforce Solutions office, or by mailing or faxing your letter to Commission Appeals at the address or fax number in the instructions included with your Commission decision. You cannot file a Motion for Rehearing by e-mail or telephone. If you choose to fax the information, keep the paperwork that indicates successful transmission of your Motion for Rehearing.

If you ask for a rehearing and the Commission denies it, you can still appeal that decision to a civil court.

Appeal to a Civil Court

You may appeal to a civil court within 30 calendar days after the date TWC mailed you the Commission decision. You must have completed all the appeal steps available through TWC, except the optional Motion for Rehearing, before appealing to a civil court. The instructions for submitting an appeal to a civil court are included with the Commission decision.

 

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Suits to Collect on McGregor Act Footnote Payment Bond in Texas Construction Law– Fort Worth, Texas Construction Law Attorneys

United Fire & Casualty Company v. Boring & Tunneling Company of America (pdf)
(Tex.App.- Houston [1st Dist.] Feb. 11, 2010)(Keyes) (construction bond, notice provisions of the
McGregor Act substantially complied with; sworn statement was defective in that notary signature and
seal was missing, but issue overruled as a  technicality)
AFFIRM TC JUDGMENT: Opinion by Justice Evelyn Keyes
Before Justices Keyes, Hanks and Sharp
01-08-00487-CV  United Fire & Casualty Company v. Boring & Tunneling Company of America d/b/a
Bortunco   Appeal from 270th District Court of Harris County
Trial Court Judge:  Hon. Brent Gamble
O P I N I O N

On cross motions for summary judgment in a suit to collect on a McGregor Act Footnote payment
bond, the trial court granted summary judgment in favor of appellee, Boring & Tunneling Company of
America (“Bortunco”), and denied the motion of appellant, United Fire & Casualty Company (“United
Fire”). In two issues, United Fire argues that (1) Bortunco failed to substantially comply with the notice
provisions of the McGregor Act; and (2) it did not waive its right to, nor is it estopped from, asserting
notification defects.
We affirm.

BACKGROUND

Golf Services Group contracted with Harris County and the City of Houston to complete two different
water line projects and, in compliance with the McGregor Act, obtained a payment bond through United
Fire to ensure that any subcontractors would be paid if Golf Services defaulted. Golf Services
subcontracted with Bortunco in May 2004 to complete the boring and tunneling work on the projects.
Bortunco completed all work and fully performed its obligations under its agreement with Golf Services,
but Golf Services failed to pay Bortunco for its work.

Bortunco sent notices to United Fire that it was seeking to collect against the payment bond for the
services it had provided. Among the notices that Bortunco sent was one dated October 14, 2005,
relating a claim for work and material expenses incurred in July and August of 2005. Bortunco sent the
notice on a “sworn statement form,” and an agent for Bortunco signed the statement, but the notary did
not attach a seal or signature. Bortunco’s notice comported with the statute in all other respects.
Bortunco’s notice also requested that United Fire notify Bortunco if the claim was deficient in “any way.”
United Fire received the notice and sent a letter acknowledging receipt of the claim and informing
Bortunco that it would investigate the claim. The letter United Fire sent Bortunco stated, “Neither this
letter, or any investigation by the Surety, should be construed to be a waiver of any rights under the
bond.” United Fire did not object to the missing notary signature and seal.

On December 14, 2005, nearly two months after the claim filing deadline, Bortunco noticed that the
original sworn statement was missing a notary seal and sent an identical sworn statement with a notary’
s signature and seal. United Fire responded on January 11, 2006 with the same letter it had sent the
first time.

Neither Golf Services nor United Fire, as the surety on Golf Service’s payment bond, paid Bortunco for
the work it completed, and, on February 7, 2006, Bortunco filed suit against both Golf Services and
United Fire seeking recovery of the contract balances on both projects in the amount of $438,389.74.
Subsequently, Bortunco and United Fire settled the majority of Bortunco’s claims except for work and
material expenses Bortunco incurred in July and August 2005. United Fire moved for summary
judgment on the ground that Bortunco was not entitled to recover the remaining expenses because it
had failed to give proper notice, specifically arguing that the October 14, 2005 notice lacked a sworn
statement of account as required by the McGregor Act. United Fire supported its motion for summary
judgment with copies of the October 14 and December 14 notices.

Bortunco filed its own motion for summary judgment and response to United Fire’s motion, arguing that
its notice substantially complied with the McGregor Act notice provisions, or, alternatively, that United
Fire “waived strict compliance with the notice provisions of the McGregor Act” and should be “estopped
from demanding strict compliance.” In addition to copies of the relevant notices and United Fire’s
responses, Bortunco supported its motion for summary judgment with the affidavit of Joe Gibbs
averring that the notary had placed him under oath and that he had sworn to and signed the sworn
statement of account dated October 14, 2005 in the notary’s presence, and that the notary’s oversight
resulted in the missing signature and seal. Bortunco also provided the affidavit of the notary averring
that Gibbs did swear to the contents of the sworn statement under oath and signed it in her presence
and stating, “[T]he absence of my signature is solely indicative of a clerical error committed by me; Mr.
Gibbs swore to and signed the Sworn Statement of Account under oath and in my presence and I
simply neglected to place thereon my signature and seal as notary before mailing it to the surety and
contractor. . . .”

On December 12, 2007, the trial court granted Bortunco’s motion for summary judgment, awarding
Bortunco the $142,542.75 it claimed for the July and August 2005 work, and denied United Fire’s
motion without an opinion. United Fire appeals.

Standard of Review

We review a trial court’s grant or denial of summary judgment de novo. Provident Life & Accident Ins.
Co. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003). To prevail on a traditional summary judgment motion,
the movant has the burden of proving that it is entitled to judgment as a matter of law and that there
are no genuine issues of material fact. Tex. R. Civ. P. 166a(c); Cathey v. Booth, 900 S.W.2d 339, 341
(Tex. 1995). When both parties move for summary judgment and the trial court grants one motion and
denies the other, the reviewing court should review the summary judgment evidence presented by both
sides, determine all questions presented and render the judgment that the trial court should have
rendered. Tex. Workers’ Comp. Comm’n v. Patient Advocates, 136 S.W.3d 643, 648 (Tex. 2004).

McGregor Act and Substantial Compliance

United Fire contends that the notice Bortunco sent did not include a “sworn statement” as required by
the McGregor Act because the notice did not have a notary seal or signature. Therefore, United Fire
contends Bortunco failed to adhere to notice provisions in the McGregor Act and is not entitled to
payment. Bortunco avers it substantially complied with the McGregor Act because the document was
only defective as a result of the notary’s clerical error.

The legislature passed the McGregor Act to ensure payment to subcontractors because they may not
place a lien against a public building. Suretec Ins. Co. v. Myrex Ind., 232 S.W.3d 811, 813 (Tex. App.—
Beaumont 2007, no pet.); Ramex Constr. Co. v. Tamcon Serv. Inc., 29 S.W.3d 135, 139 (Tex. App.—
Houston [14th Dist.] 2000, no pet.). It was not intended to set up “technical tricks, traps, and stumbling
blocks to the filing of legitimate notices of claims,” but “to provide a simple and direct method of giving
notice and perfecting claims.” Agree Corp. & Seaboard Sur. Co. v. Solis, 932 S.W.2d 39, 52–53 (Tex.
App.—Beaumont 1995), rev’d on other grounds, 951 S.W.2d 384 (Tex. 1997). The notice requirements
were also intended “to protect the prime contractor from incurring double liability [and to relieve them
of] liability for claims not asserted before retainage is paid in full.” Commercial Union Ins. Co. v. Spaw-
Glass Corp., 877 S.W.2d 538, 540 (Tex. App.—Austin 1994, writ denied).

The McGregor Act requires general contractors to secure a bond from a surety, allows a subcontractor
to sue the surety for unpaid balances for work and materials, and awards reasonable attorneys’ fees.
Id.; see Tex. Gov’t Code Ann. §§ 2253.021, 2253.073 (Vernon 2008). To recover under the act, a
claimant or subcontractor must provide notice to the general contractor and the surety in writing. Tex.
Gov’t code § 2253.041. The McGregor Act further provides that the notice must conform to the
following requirements:

(b)     The notice must be mailed on or before the 15th day of the third month after each month in which
any of the claimed labor was performed or any of the claimed material was delivered.

(c)     The notice must be accompanied by a sworn statement of account that states in substance:

(1)     the amount claimed is just and correct; and

(2)     all just and lawful offsets, payments, and credit known to the affiant have been allowed.

(d)     The statement of account shall include the amount of any retainage applicable to the account
that has not become due under the terms of the public work contract between the payment bond
beneficiary and the prime contractor or between the payment bond beneficiary and a subcontractor.

Tex. Gov’t Code Ann. § 2253.041(b)–(d) (Vernon 2008).

The McGregor Act is remedial in nature, and, therefore, “[t]he statute is to be given the most
comprehensive and liberal construction possible.” Ramex, 29 S.W.3d at 139; see also City of LaPorte
v. Taylor, 836 S.W.2d 829, 832 (Tex. App.—Houston [1st Dist.] 1992, no writ). As a result, case law has
established that adherence to notification deadlines requires strict compliance, but substantial
compliance is adequate for the other notice provisions. Cf. Commercial Union Ins., 877 S.W.2d at 540
(holding that claimants could not recover when they failed to give any notice); Suretec Ins. Co., 232 S.
W.3d at 816 (failure to provide notice by 15th day of month not saved by substantial compliance);
Capitol Indem. Corp. v. Kirby Rest. Equip. & Chem. Supply Co., 170 S.W.3d 144, 147 (Tex. App.—San
Antonio 2005, pet. denied) (holding “sworn certificate” that did not precisely comport with statutory
language sufficient); U.S. Fid. & Guar. Co. v. Parker Bros. & Co., 437 S.W.2d 880, 881–82 (Tex. Civ.
App.—Houston [1st Dist.] 1969, writ ref’d n.r.e.) (claimant substantially complied with notice provisions
although sworn statements were sent to general contractor and unsworn statements sent to surety).
Substantial compliance has been defined as “compliance with the ‘essential requirements of a statute’”
and occurs when an actor’s deviation does not seriously impede the legislative purpose of the statute.
See Stratton v. Austin Indep. Sch. Dist., 8 S.W.3d 26, 30 (Tex. App.—Austin 1999, no pet.).

United Fire cites several cases which have held that late notification did not substantially comply with
the McGregor Act. See, e.g., Laboratory Design & Equip., Inc. v. Brooks Dev. Auth., No. 04-07-00284-
CV, 2008 WL 36614, at *3 (Tex. App.—San Antonio, no pet.) (holding that notice mailed one year late
and failure to provide any sworn statement whatsoever with notice prevented subcontractor from
recovering against payment bond). However, the issue here is not one of late notification. United Fire
argues that Bortunco’s notice was deficient because it lacked the notary signature and seal, not
because the notice was untimely. Nor did Bortunco’s notice fail to provide any sworn statement
whatsoever. Therefore, Laboratory Design and the other cases United Fire relies on are
distinguishable. Footnote

We conclude that this case is similar to Acme Brick. In Acme Brick, the claimant sent an otherwise
correct notice with the affiant’s signature in the wrong place on the sworn statement. Acme Brick, a Div.
of Justin Indus., Inc. v. Temple Assoc., 816 S.W.2d 440, 441 (Tex. App.—Waco 1991, writ denied). The
document contained a notice of claim, factual statement that the claims were just and correct, the
signature of the affiant, and the notary’s certification of the statement with a seal. Id. The court held
that the document did qualify as an affidavit, but stated, “Moreover, even if the statement was not an
affidavit, the McGregor Act requires only substantial compliance with its notice provisions. . . . We find
the notices sent by Acme to [the prime contractor and surety] substantially complied with the notice
provisions of the McGregor Act.” Id. (citing Featherlite Bldg. Prods. Corp. v. Constructors Unlimited,
Inc., 714 S.W.2d 38, 69 (Tex. App.—Houston [14th Dist.] 1986, writ ref’d n.r.e.).

Here, although Bortunco’s sworn statement is missing the official certification by the notary to qualify
as a affidavit, it is uncontested that Bortunco’s agent swore to the statement before an “officer
authorized to administer oaths” and signed the statement in the notary’s presence. Likewise, the notice
otherwise supplies the statutorily required statements and information and was delivered by the
required deadline. Bortunco’s notification was only deficient because of the nortary’s clerical error in
failing to attach her signature and seal before mailing the document.

We also note that United Fire received actual notice within the statutory deadline Footnote and that, as
soon as Bortunco noticed the clerical omission, it sent an identical notice and sworn statement, this
time with the notary’s signature and seal. Bortunco’s notary’s failure to affix a seal and signature to the
sworn statement did not expose the prime contractor or the surety to increased liability, nor did it
prevent United Fire from having actual notice of the claims Bortunco was making against the payment
bond, especially in light of the fact that Bortunco apparently submitted numerous notices in compliance
with the McGregor Act in the course of its dealings with United Fire.

Because Bortunco’s sworn statement met the essential requirements of the statute in providing actual
notice to United Fire of Bortunco’s claims against the bond and adequately protected both Golf
Services and United Fire from undue liability, we hold that the document substantially complied with the
McGregor Act’s notice provisions. To hold otherwise would require that we set up “technical tricks,
traps, and stumbling blocks to the filing of legitimate notices of claims” rather than providing “a simple
and direct method of giving notice and perfecting claims” as the legislature intended. See Agree Corp.,
932 S.W.2d at 52–53. Therefore, Bortunco met its burden of proving that it was entitled to judgment as
a matter of law and that there were no genuine issues of material fact. See Tex. R. Civ. P. 166a(c);
Cathey, 900 S.W.2d at 341.

We overrule United Fire’s first issue.

Because we have determined that Bortunco’s notice substantially complied with the requirements of
the McGregor Act, we do not need to address United Fire’s argument that it is not estopped and did not
waive its right to assert notification defects.

CONCLUSION

We affirm the judgment of the trial court.

Evelyn V. Keyes

Justice

[FN] Chapter 2253 of the Texas Government Code is commonly referred to as the“McGregor Act.” See Tex. Gov’t Code
Ann. §§ 2253.001–.079 (Vernon 2008 &Supp. 2009).  The McGregor Act requires general contractors to secure payment
bonds on public works projects because subcontractors cannot secure liens on public buildings and provides the
procedure for collecting on the bonds. Id.

[FN] A surety’s actual notice has been discussed and used in some cases to establish substantial compliance. See
Redland Ins. Co. v. Sw. Stainless, L.P., 181 S.W.3d 509,512 (Tex. App.—Fort Worth 2005, no pet.) (holding that because
surety received actual notice, need of subcontractor to comport with statutory requirement that noticebe sent certified
mail was negated); Tex-Craft Builders, Inc. v. Allied Constructors of Houston, Inc., 465 S.W.2d 786, 792 (Tex. Civ. App.—
Tyler 1971, writ ref’d n.r.e.)(discussing possibility that surety’s actual knowledge and notice of details of claim could be
sufficient to establish substantial compliance with McGregor Act).

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Apportionment of Fault in Negligence Lawsuits in Texas– Fort Worth, Texas Insurance Defense Attorneys

IN THE SUPREME COURT OF TEXAS

NO. 13-0136

NABORS WELL SERVICES, LTD. F/K/A POOL COMPANY TEXAS, LTD.
AND LAURO BERNAL GARCIA,
PETITIONERS,
v.
ASUNCION ROMERO, INDIVIDUALLY AND AS REPRESENTATIVE OF THE
ESTATE OF AYDEE ROMERO, DECEASED, AND AS NEXT FRIEND OF
EDGAR ROMERO AND SAUL ROMERO; ESPERANZA SOTO, INDIVIDUALLY
AND AS NEXT FRIEND OF ESPERANZA SOTO, GUADALUPE SOTO,
MARIA ELENA SOTO; AND MARTIN SOTO,
RESPONDENTS

ON PETITION FOR REVIEW FROM THE
COURT OF APPEALS FOR THE EIGHTH DISTRICT OF TEXAS

Argued October 9, 2014
JUSTICE BROWN delivered the opinion of the Court.
For more than forty years evidence of a plaintiff’s failure to use a seat belt has been
inadmissible in car-accident cases. That rule, which this Court first announced in 1974, offered
plaintiffs safe harbor from the harshness of an all-or-nothing scheme that barred recovery for even
the slightest contributory negligence. Moreover, the Court reasoned that although a plaintiff’s failure
to use a seat belt may exacerbate his injuries, it cannot cause a car accident, and therefore should not
affect a plaintiff’s recovery.
In 1985 the Legislature jumped in to statutorily prohibit evidence of use or nonuse of seat
belts in all civil cases. It repealed that law in 2003, leaving our rule to again stand alone. But much
has changed in the past four decades. The Legislature has overhauled Texas’s system for
apportioning fault in negligence cases—a plaintiff’s negligence can now be apportioned alongside
a defendant’s without entirely barring the plaintiff’s recovery. And unlike in 1974, seat belts are now
required by law and have become an unquestioned part of daily life for the vast majority of drivers
and passengers.
These changes have rendered our prohibition on seat-belt evidence an anachronism. The rule
may have been appropriate in its time, but today it is a vestige of a bygone legal system and an oddity
in light of modern societal norms. Today we overrule it and hold that relevant evidence of use or
nonuse of seat belts is admissible for the purpose of apportioning responsibility in civil lawsuits.
I
This case arises from a collision between a Nabors Well Services, Ltd. transport truck and
a Chevrolet Suburban with eight occupants—three adults and five children. Both vehicles were
traveling southbound on two-lane U.S. Highway 285 in rural West Texas. As the transport truck
slowed to make a left turn into a Nabors facility, Martin Soto, the Suburban’s driver, pulled into the
opposing traffic lane and attempted to pass the transport truck. As Soto passed, the transport truck
began its left turn and clipped the Suburban, which careened off the highway and rolled multiple
2
times. The evidence is disputed as to whether the transport truck used a turn signal and for how long
and whether Soto could have passed the transport truck within the legal passing zone.
Aydee Romero, an adult passenger, was killed in the accident. Martin, his wife Esperanza
Soto, and all five children—Esperanza, Guadalupe, and Marielena Soto, and Edgar and Saul
Romero—suffered injuries. There is conflicting evidence as to which occupants were belted and
which were ejected from the Suburban. A responding state trooper wrote in his report that all
occupants were unrestrained except Marielena and the elder Esperanza. But both of them, along with
the younger Esperanza, testified they did not use seat belts, while Martin and Guadalupe testified
they wore theirs. Guadalupe testified all occupants were ejected except for Martin and Edgar, but
Edgar testified he was ejected. And an EMS report stated one of the family members reported at the
scene that seven of eight occupants were ejected.
The Soto and Romero families sued Nabors and its truck driver. At trial, Nabors sought to
offer expert testimony from a biomechanical engineer, James Funk, Ph.D., that seven of the eight
Suburban occupants were unbelted (all except Martin, the driver), that five of those seven were
ejected from the vehicle, and that the failure to use seat belts caused the passengers’ injuries and the
one fatality. Nabors also hoped to introduce evidence of a citation issued to Soto for driving without
properly restraining the child passengers as well as testimony from the plaintiffs as to who was
unbelted and who was ejected.
Following our precedent in Carnation Co. v. Wong, 516 S.W.2d 116 (Tex. 1974), the trial
court excluded all evidence of nonuse of seat belts. Additionally, the trial court separately excluded
portions of Dr. Funk’s testimony on Robinson grounds, specifically, that Dr. Funk was unqualified
3
to opine that the failure to use seat belts caused the unbelted occupants’ injuries. See E.I. du Pont
de Nemours & Co. v. Robinson, 923 S.W.2d 549 (Tex. 1995). The trial court emphasized that even
if it had allowed seat-belt evidence, it would have excluded Dr. Funk’s injury-causation testimony
under Robinson. The jury found Nabors 51% and Soto 49% responsible for the accident, and
awarded the Soto and Romero families collectively just over $2.3 million.
The court of appeals affirmed the trial court’s judgment based solely on the Carnation
prohibition on seat-belt evidence. The court of appeals did not separately consider whether the trial
court properly excluded Dr. Funk’s injury-causation testimony under Robinson. We granted review
to consider the current viability of Carnation in light of the Legislature’s repeal of its statutory ban
on seat-belt evidence.
II
A
Texas’s earliest cases on the admissibility of seat-belt evidence first appeared in the late
1960s. They culminated in this Court’s 1974 decision in Carnation to severely limit admissibility
of seat-belt evidence. The context within which these cases arose is instructive. First, there was no
law requiring seat-belt use; in fact, a federal mandate that seat belts be installed as standard
equipment on all new passenger vehicles was barely in its infancy. Brian T. Bagley, The Seat Belt
Defense in Texas, 35 ST. MARY’S L.J. 707, 717 (2004). And second, Texas courts operated under an
unforgiving all-or-nothing rule in negligence cases that entirely barred a plaintiff from recovery if
the plaintiff himself was negligent in any way. Parrot v. Garcia, 436 S.W.2d 897, 901 (Tex. 1969).
4
The first court of appeals to address the issue was quick to point out that no statute required
seat-belt use and no Texas authority supported a common-law duty to use seat belts. See Tom Brown
Drilling Co. v. Nieman, 418 S.W.2d 337, 340–41 (Tex. Civ. App.—Eastland 1967, writ ref’d n.r.e.).
And in lieu of forging a new path, some courts of appeals were able to dispose of the issue on the
ground that defendants had no evidence the failure to use seat belts caused the plaintiffs’ injuries.
See United Furniture & Appliance Co. v. Johnson, 456 S.W.2d 455, 459 (Tex. Civ. App.—Tyler
1970, writ dism’d); Nieman, 418 S.W.2d at 341. Others grappled with the evidentiary difficulties
of admitting seat-belt evidence. See Red Top Taxi Co. v. Snow, 452 S.W.2d 772, 779 (Tex. Civ.
App.—Corpus Christi 1970, no writ) (holding evidence of nonuse of seat belts irrelevant to “the
liability issues involving the [plaintiff’s] alleged contributory negligence”); Sonnier v. Ramsey, 424
S.W.2d 684, 689 (Tex. Civ. App.—Houston [1st Dist.] 1968, writ ref’d n.r.e.) (declining to decide
whether a common-law duty to use a seat belt exists, but suggesting if so it “should be considered
in connection with damages rather than liability”). At least one court seized the opportunity to
declare there was no common-law duty to use a seat belt and that the omission was not actionable
negligence because the plaintiff could not reasonably foresee the effects of a failure to use a seat belt.
See Quinius v. Estrada, 448 S.W.2d 552, 554 (Tex. Civ. App.—Austin 1969, writ ref’d n.r.e.). By
the time this Court weighed in, all courts of appeals that reached the issue had either decided a
failure to use seat belts was not actionable negligence or left the issue undecided. None supported
admitting seat-belt evidence with the aim of reducing or negating a plaintiff’s recovery.
This Court first encountered the issue in Kerby v. Abilene Christian College, in which the
driver of a linen truck, Kerby, was ejected through the open sliding door of his truck after colliding
5
with an ACC bus. 503 S.W.2d 526, 526 (Tex. 1973). The jury found Kerby negligent and 35%
responsible for his injuries. Id. at 527. The trial court accordingly reduced Kerby’s recovery by 35%,
but the court of appeals tossed his award entirely because under the law at the time his contributory
negligence barred any recovery whatsoever. Id.
This Court reversed both lower courts and restored Kerby’s recovery in full, reasoning that
“[c]ontributory negligence must have the causal connection with the accident that but for the conduct
the accident would not have happened.” Id. at 528. Accordingly, “negligence that merely increases
or adds to the extent of the loss or injury occasioned by another’s negligence is not such contributory
negligence as will defeat recovery.” Id. In so holding, the Court drew “a sharp distinction between
negligence contributing to the accident and negligence contributing to the damages sustained.” Id.
The Court further likened the facts of Kerby to earlier cases in which courts of appeals held the
failure to use a seat belt was not “actionable negligence” or “contributory negligence such that would
bar recovery,” and underscored the “conceptual difficulty of applying the mitigation[-]of[-]damages
concept to Plaintiff’s conduct antedating the negligence of the Defendant.” Id. In so doing, the Court
declared seat-belt evidence incompatible with the only two legal doctrines—contributory negligence
and failure to mitigate damages—that arguably could accommodate it.
A year later in Carnation v. Wong, the jury found plaintiffs involved in a car accident
negligent for failing to use seat belts. 516 S.W.2d at 116. The jury attributed 50% of the fault for the
husband’s injuries against him and 70% of the fault for the wife’s injuries against her. Id. The trial
court reduced the Wongs’ awards correspondingly, but the court of appeals overturned those
reductions. Id. Finding no reversible error, this Court refused to grant the writ of error in Carnation,
6
but accompanied that refusal with an opinion correcting the court of appeals’ too-expansive reading
of Kerby. Id. Contrary to the court of appeals’ interpretation, the Kerby Court did not rule there was
no common-law duty to use seat belts. And the Carnation Court stopped short of that holding as
well. Instead, the Court focused on the difficulty of applying the “various legal theories” supporting
admissibility of seat-belt evidence in the available legal framework. Id. The Court rejected out of
hand “those cases barring completely plaintiff’s recovery based on contributory negligence,” noting
only that “our courts have not followed such an approach.” Id. (citations omitted). The Court also
acknowledged that other jurisdictions had considered seat-belt evidence under mitigation-ofdamages
and apportionment-of-damages theories, but could “find no reported appellate decision
where a court has actually relied upon either of these two theories to uphold definitively a trial
court’s reduction of plaintiff’s recovery from defendant based on the plaintiff’s failure to wear
available seat belts.” Id. at 117 (citations omitted). With that, the Court announced: “We now hold
that . . . persons whose negligence did not contribute to an automobile accident should not have the
damages awarded to them reduced or mitigated because of their failure to wear available seat
belts.” Id.
B
About a decade after Carnation, the federal government began to push seat-belt-use
initiatives that would give rise to the first seat-belt laws in Texas and in several other states. In 1984,
the National Highway Traffic Safety Administration issued a regulation requiring all passenger
vehicles beginning with the 1990 model year to include passive-restraint systems unless states
constituting two-thirds of the nation’s population adopted mandatory seat-belt laws. See Federal
7
Motor Vehicle Safety Standard; Occupant Crash Protection, 49 Fed. Reg. 28,962-01 (July 17, 1984)
(codified as amended at 49 C.F.R. § 571.208). The Texas Legislature, along with many others,
responded, and in 1985 for the first time made it a criminal offense for anyone fifteen years or older
to ride in a front seat unbelted, and further placed on drivers a responsibility to properly restrain
children under fifteen riding in a front seat. Act of June 15, 1985, 69th Leg., R.S., ch. 804, § 1,
sec. 107C, 1985 Tex. Gen. Laws 2846, 2846–47, repealed by Act of May 23, 1995, 74th Leg, R.S.,
ch. 165, § 24(a), 1995 Tex. Gen. Laws 1870, 1870–71. The new law further provided that: “Use or
nonuse of a safety belt is not admissible evidence in a civil trial.” Id. This outright prohibition of
seat-belt evidence, seemingly for any purpose, was broader than the rule adopted in Carnation,
which simply held seat-belt evidence was inadmissible to reduce a plaintiff’s recovery. See
Carnation, 516 S.W.2d at 117. And with that prohibition, Carnation was mothballed—not stricken
from the books but preempted by a stricter statutory prohibition.
Texas’s seat-belt law has expanded in its applicability over the years. In 2004, when the car
accident at issue in this case occurred, Texas law required a driver to properly restrain most children
riding anywhere in the vehicle. Act of June 14, 2001, 77th Leg., R.S., ch. 910, § 2, 2001 Tex. Gen.
Laws 1821, 1821–22 (amended 2005) (current version at TEX. TRANSP. CODE § 545.413(b)). Today,
anyone fifteen years or older in any seat is required to buckle up, and drivers have a responsibility
to make sure anyone seventeen years or younger anywhere in the vehicle is properly restrained. TEX.
TRANSP. CODE §§ 545.413(a), (b). The prohibition against seat-belt evidence in civil trials remained
intact throughout the law’s evolution until 2003, when the Legislature repealed the provision as part
of the sweeping House Bill 4 tort-reform legislation. Act of June 11, 2003, 78th Leg., R.S., ch. 204,
8
§ 8.01, 2003 Tex. Gen. Laws 863, 863 (repealing TEX. TRANSP. CODE §§ 545.412(d), 545.413(g)).
The Legislature did not replace the prohibition with any language affirming the use of seat-belt
evidence—it simply struck the provision altogether.
III
A
Nabors argues legislative history reveals the purpose of the repeal was to begin allowing seatbelt
evidence in civil trials. The families argue that if the Legislature intended that, it could have
enacted language favoring admissibility or overruling Carnation. We simply take the Legislature’s
action at face value—it once had something specific to say about seat-belt evidence, and now it does
not. See Girouard v. United States, 328 U.S. 61, 69 (1946) (“It is at best treacherous to find in
Congressional silence alone the adoption of a controlling rule of law.”); Brown v. De La Cruz, 156
S.W.3d 560, 566 (Tex. 2004) (“[L]egislative silence . . . may reflect many things, including implied
delegation to the courts or administrative agencies, lack of consensus, oversight, or mistake.”). But
everyone in this case agrees the statutory repeal revived this Court’s holding in Carnation, a
common-law rule subsumed for eighteen years by a broader statutory prohibition but never
overruled. The question is whether that rule, established more than forty years ago, should still stand
today. To answer, we will not strain to determine legislative intent behind the Legislature’s statutory
repeal and subsequent silence; instead, what the Legislature has said will guide us. And while the
Legislature now says nothing about seat-belt evidence specifically, it has said much since Carnation
about the assignment of responsibility in negligence lawsuits.
9
The evolution of Texas’s system for attributing fault in negligence cases over the past four
decades is well documented. At the time Kerby and Carnation were tried, Texas “followed the all-ornothing
system of contributory negligence.” Dugger v. Arredondo, 408 S.W.3d 825, 830 (Tex.
2013). “Under contributory negligence, if a plaintiff was even one percent at fault, he or she could
not recover.” Id.; see also Parrot, 436 S.W.2d at 901. In 1973, the Legislature adopted article 2212a,
the first comparative-negligence statute, evincing “‘a clear policy purpose to apportion negligence
according to the fault of the actors.’” Dugger, 408 S.W.3d at 830 (quoting Parker v. Highland Park,
Inc., 565 S.W.2d 512, 518 (Tex. 1978)); see also Act of April 9, 1973, 63d Leg., R.S., ch. 28,
§§ 1–2, 4–5, art. 2212a, 1973 Tex. Gen. Laws 41, 41–43, repealed by Act of June 16, 1985, 69th
Leg., R.S., ch. 959, § 1, sec. 33.001, 1985 Tex. Gen. Laws 3242, 3270–71. Later, the Legislature
replaced article 2212a with the comparative-responsibility framework in chapter 33 of the Civil
Practice and Remedies Code. See TEX. CIV. PRAC. & REM. CODE §§ 33.001–.004; Act of June 16,
1985, 69th Leg., R.S., ch. 959, § 1, secs. 33.001–.004, 1985 Tex. Gen. Laws 3242, 3270–71,
amended by Act of June 16, 1987, 70th Leg., 1st C.S., ch. 2, §§ 2.03–.12, secs. 33.001–.004, 1987
Tex. Gen. Laws 37, 41–44; JCW Electrs., Inc. v. Garza, 257 S.W.3d 701, 703 (Tex. 2008) (setting
out the evolution of comparative-fault rules in Texas). In 1995, the Legislature modified Chapter 33
by replacing comparative responsibility with proportionate responsibility. Act of May 18, 1995, 74th
Leg., R.S., ch. 136, § 1, 1995 Tex. Gen. Laws 971, 971–75 (amended 2003) (current version at TEX.
CIV. PRAC. & REM. CODE §§ 33.001–.004). Section 33.003(a) now provides:
The trier of fact, as to each cause of action asserted, shall determine the percentage
of responsibility, stated in whole numbers, for the following persons with respect to
each person’s causing or contributing to cause in any way the harm for which
10
recovery of damages is sought, whether by negligent act or omission, by any
defective or unreasonably dangerous product, by other conduct or activity that
violates an applicable legal standard, or by any combination of these:
(1) each claimant;
(2) each defendant;
(3) each settling person; and
(4) each responsible third party who has been designated under Section
33.004.
Gone is the “harsh system of absolute victory or total defeat.” See Parker, 565 S.W.2d at 518. Under
proportionate responsibility, the fact-finder apportions responsibility according to the relative fault
of the actors, thus allowing a plaintiff to recover while reducing that recovery by the percentage for
which the plaintiff was at fault. As long as the plaintiff’s own responsibility does not exceed 50%,
he is entitled to a recovery reduced by his responsibility percentage. TEX CIV. PRAC. & REM. CODE
§§ 33.001, 33.012. And the statute casts a wide net over conduct that may be considered in this
determination, including negligent acts or omissions as well as any conduct or activity that violates
an applicable legal standard. The directive is clear—fact-finders should consider each person’s role
in causing, “in any way,” harm for which recovery of damages is sought. The question we now face
is whether the “sharp distinction” between occurrence-causing and injury-causing negligence this
Court drew in Kerby is still viable in light of the Legislature’s current mandate. In other words, can
a plaintiff’s failure to use a seat belt, though it did not cause the car accident, limit his recovery if
it can be shown that the failure to use a seat belt caused or contributed to cause his injuries?
B
This Court has never absolved plaintiffs of a duty to use seat belts, nor has it held seat-belt
evidence irrelevant. Rather, in Kerby and Carnation, the Court struggled with the mismatch between
11
the character of seat-belt evidence and the legal doctrines that might support its admission. One
option was to treat it as evidence of a plaintiff’s failure to mitigate his damages—a doctrine typically
applied to a post-occurrence action, such as when a plaintiff fails to follow his doctor’s treatment
instructions. See, e.g., Moulton v. Alamo Ambulance Serv., Inc., 414 S.W.2d 444, 447 (Tex. 1967)
(“We recognize the universality of the rule that an injured person cannot recover damages which can
be avoided by that care and treatment of his injury which an ordinary prudent person would exercise
in the same or similar circumstances . . . .”). Courts were accustomed to instructing juries to consider
a plaintiff’s failure to mitigate when awarding damages, but the doctrine proved awkward when
applied to pre-occurrence actions—how can one mitigate damages that have not yet occurred? See
Kerby, 503 S.W.2d at 528. The other option was to treat seat-belt nonuse as contributory negligence,
which would entirely bar a plaintiff’s recovery. But the Court dismissed this option. See Carnation,
516 S.W.2d at 116 (“We reject those cases barring completely plaintiff’s recovery based on
contributory negligence; our courts have not followed such an approach.”) (citations omitted). So
under the existing legal framework, there simply was no vehicle to logically or fairly admit seat-belt
evidence.
The holdings in Kerby and Carnation are best viewed as examples of a class of common-law
doctrines designed to blunt the austerity of an all-or-nothing contributory-negligence scheme and
ensure an equitable civil-justice system for all Texans. After the Legislature adopted comparative
negligence in 1973, this Court “sought to abolish those doctrines directed to the old choice between
total victory and total defeat for the injured plaintiff.” French v. Grigsby, 571 S.W.2d 867, 867 (Tex.
1978) (abolishing doctrine of last clear chance or discovered peril). More than forty years later, “‘we
12
have discarded categories like imminent[-]peril, last-clear-chance, and assumption-of-the-risk in
favor of a general submission of comparative negligence.’” Del Lago Partners., Inc. v. Smith, 307
S.W.3d 762, 772 (Tex. 2010) (quoting Jackson v. Axelrad, 221 S.W.3d 650, 654 (Tex. 2007)). But
we are still occasionally called on to shake off vestiges of our defunct contributory-negligence
scheme. As recently as 2013, for example, we held the common-law unlawful-acts doctrine could
not coexist alongside proportionate responsibility. Dugger, 408 S.W.3d at 827.
The systematic elimination of outmoded ameliorative doctrines has led to speculation about
the continued viability of the “sharp distinction” we recognized in Kerby. So far, however, the Court
has stopped short of a formal declaration that proportionate responsibility incorporates both
occurrence-causing and injury-causing conduct. See Thomas v. Uzoka, 290 S.W.3d 437, 444 n.2
(Tex. App.—Houston [14th Dist.] 2009, pet. denied) (observing the Legislature “may have intended
to abolish the common-law distinction between a plaintiff’s ‘occurrence-causing’ and ‘injurycausing’
negligence”); Comm. on Pattern Jury Charges, State Bar of Tex., Texas Pattern Jury
Charges: General Negligence, Intentional Personal Torts, Workers’ Compensation PJC 4.1 cmt. at
53 (2014) (“The Committee is unable to determine whether the [L]egislature, by using ‘injury’ in
section 33.011(4), intended to abolish the distinction between ‘occurrence-causing’ and ‘injurycausing’
contributory negligence and mandate the use of ‘injury’ to the preclusion, at any time, of
‘occurrence.’”). The Third Restatement has specifically cited Carnation as an example of how
“[s]ome courts used to forgive a plaintiff of pre-accident negligence that merely aggravated the
injury.” RESTATEMENT (THIRD) OF TORTS: APPORTIONMENT OF LIAB. § 3 Reporter’s Note, cmt. b
at 39 (2000) (emphasis in original). Of such decisions, the Restatement observes:
13
They gave various rationales for this rule, including that the legislature had not
mandated the conduct, that counting the conduct would constitute a windfall for the
defendant, and that a plaintiff should not have to foresee and guard against the
possibility of a defendant’s negligence. None of these rationales provides an adequate
account for the rule, because each of them could be applied with equal force to
ordinary contributory negligence. . . . [T]he most satisfactory explanation is that
courts were hostile to the harsh consequences of contributory negligence as an
absolute bar to recovery and developed the rule as an ameliorative device.
Comparative responsibility eviscerates that rationale.
Id. at 39–40 (internal citations omitted).
C
Our precedents holding that a plaintiff’s injury-causing negligence cannot reduce a plaintiff’s
recovery cannot stand if today’s proportionate-responsibility statute contradicts those precedents.
And we hold it does. We recently observed in Dugger that the proportionate-responsibility statute
“indicates the Legislature’s desire to compare responsibility for injuries rather than bar recovery,
even if the claimant was partly at fault or violated some legal standard.” Dugger, 408 S.W.3d at 832
(emphasis added). Although we did not then directly address the distinction between injury-causing
and occurrence-causing negligence drawn by Kerby, our reference to “injuries” was not
accidental—it reflected the language chosen by the Legislature in the proportionate-responsibility
statute. Under that scheme, the fact-finder must allocate the “percentage of responsibility” for each
claimant, defendant, settling person, and responsible third party. TEX. CIV. PRAC. & REM. CODE
§ 33.003(a). And “percentage of responsibility” is defined as:
that percentage, stated in whole numbers, attributed by the trier of fact to each
claimant, each defendant, each settling person, or each responsible third party with
respect to causing or contributing to cause in any way, whether by negligent act or
omission, by any defective or unreasonably dangerous product, by other conduct or
activity violative of the applicable legal standard, or by any combination of the
14
foregoing, the personal injury, property damage, death, or any other harm for which
recovery of damages is sought.
Id. § 33.011(4) (emphasis added).
Section 33.011(4) directs the fact-finder to assign responsibility to plaintiffs who cause or
contribute to cause “in any way” personal injury or death. Similarly, section 33.003(a) also holds
plaintiffs accountable for “causing or contributing to cause in any way the harm for which recovery
of damages is sought.” “In any way” can mean only what it says—there are no restrictions on
assigning responsibility to a plaintiff as long as it can be shown the plaintiff’s conduct “caused or
contributed to cause” his personal injury or death. See United States v. Gonzales, 520 U.S. 1, 5
(1997) (“[T]he word ‘any’ has an expansive meaning, that is, ‘one or some indiscriminately of
whatever kind.’”) (quoting WEBSTER’S THIRD NEW INTERNATIONAL DICTIONARY 97 (1976)). We
cannot maintain a “sharp distinction” between two categories of evidence when the Legislature has
instructed fact-finders to consider conduct that was “in any way” a cause of the plaintiff’s damages.
Furthermore, sections 33.003(a) and 33.011(4) focus the fact-finder on assigning
responsibility for the “harm for which recovery of damages is sought”—two examples of which are
“personal injury” and “death”—and not strictly for the underlying occurrence, such as a car accident.
This distinction recognizes plaintiffs do not sue simply because they were involved in a car accident;
they sue because they suffered damages for which they have not been compensated. See Nabors
Drilling, U.S.A., Inc. v. Escoto, 288 S.W.3d 401, 404 (Tex. 2009) (“Negligence actions in Texas
require ‘a legal duty owed by one person to another, a breach of that duty, and damages proximately
caused by the breach.’”) (quoting D. Houston, Inc. v. Love, 92 S.W.3d 450, 454 (Tex. 2002)).
15
Though the facts of the occurrence, such as who caused the car accident, shape the narrative of the
case and rightly contribute to the fact-finder’s responsibility apportionment, the proportionateresponsibility
statute specifies the apportionment should ultimately be based on responsibility for
the damages suffered, in this case personal injury and death. Accordingly, the question is not simply
who caused the car accident, but who caused the plaintiff’s injuries.
We believe most reasonable people considering who caused a plaintiff’s injuries in a car
accident would not lean on a logical distinction between occurrence-causing and injury-causing
conduct. Rather, most would say a plaintiff who breaks the law or otherwise acts negligently by not
using a seat belt is at least partially responsible for the harm that befalls him. This is true even if he
did not cause the car accident, provided it can be shown the failure to buckle up exacerbated his
injuries. It is this common-sense approach, and not a philosophical abstraction articulated over forty
years ago, that our proportionate-responsibility statute captures. We do not suggest there is no logical
difference between occurrence-causing and injury-causing conduct. The sharpest rhetorical argument
against admitting seat-belt evidence has been that failure to use a seat belt cannot cause an accident,
and it is those who cause accidents who should pay. But it is equally true that failure to use a seat
belt will sometimes exacerbate a plaintiff’s injuries or lead to his death. Accordingly, the conclusion
is unavoidable that failure to use a seat belt is one way in which a plaintiff can “cause[] or
contribut[e] to cause in any way” his own “personal injuries” or “death.” TEX. CIV. PRAC. & REM.
CODE §§ 33.003(a), 33.011(4). The proportionate-responsibility statute calls for an apportionment
of fault for “personal injuries” and “death” rather than for the underlying occurrence that introduced
16
a sequence of events in which the end result is potentially influenced by whether the plaintiff acted
unreasonably or even broke the law.
Given the statute’s plain language, and without any statutory language preserving the
distinction set out in Kerby or our holding in Carnation, we conclude that, for purposes of the
proportionate-responsibility statute, the Legislature both intends and requires fact-finders to consider
relevant evidence of a plaintiff’s pre-occurrence, injury-causing conduct. This comports with the
modern trend in tort law toward “abolishing doctrines that give all-or-nothing effect to certain types
of plaintiff’s negligence based on the timing of the plaintiff’s and defendant’s negligence” and
instead considering “the timing of the plaintiff’s and defendant’s negligence [as] factors for assigning
percentages of responsibility.” RESTATEMENT (THIRD) OF TORTS: APPORTIONMENT OF LIAB. § 3,
Reporter’s Note, cmt. b at 41. We do not quarrel with the approach this Court took when it decided
Kerby and Carnation. We simply reach the issue again under a different legal system that considers
seat-belt evidence in a way the contributory-negligence scheme could not. Accordingly, although we
must overrule Kerby and Carnation to effect today’s decision, we do not reject them as mistaken
jurisprudence, but as once-prudent measures that have outlived their usefulness.
D
Today’s holding opens the door to a category of evidence that has never been part of our
negligence cases, but we need not lay down a treatise on how and when such evidence should be
admitted. Seat-belt evidence has been unique only in that it has been categorically prohibited in
negligence cases. With that prohibition lifted, our rules of evidence include everything necessary to
handle the admissibility of seat-belt evidence. As with any evidence, seat-belt evidence is admissible
17
only if it is relevant. See TEX. R. EVID. 401, 402. And relevance is the trial court’s province. See id.
104(a). The defendant can establish the relevance of seat-belt nonuse only with evidence that nonuse
caused or contributed to cause the plaintiff’s injuries. And the trial court should first consider this
evidence, for the purpose of making its relevance determination, outside the presence of the jury. See
id. 104(c). Otherwise, the jury will have already heard evidence of nonuse before such evidence has
been deemed relevant. Expert testimony will often be required to establish relevance, but we decline
to say it will be required in all cases. And, of course, like any other evidence, even relevant seat-belt
evidence is subject to objection and exclusion under Rule 403.
Our holding should likewise not introduce any confusion into how to construct a jury charge
when seat-belt evidence or any other pre-occurrence, injury-causing conduct is admitted. Under
section 33.003(a), the fact-finder may consider relevant evidence of a plaintiff’s failure to use a seat
belt as a “negligent act or omission” or as a violation of “an applicable legal standard” in cases where
the plaintiff was personally in violation of an applicable seat-belt law. See TEX. CIV. PRAC. & REM.
CODE § 33.003(a). And in cases in which an unrestrained plaintiff was not personally in violation
of a seat-belt law, the fact-finder may consider whether the plaintiff was negligent under the
applicable standard of reasonable care. This scenario is likely to arise when children are among the
passengers of the plaintiff’s vehicle. Most children do not violate seat-belt laws by failing to restrain
themselves; rather, it is the driver upon whom the law places the responsibility to properly restrain
them. Nonetheless, a minor is still held to the degree of care that would be exercised by an
“ordinarily prudent child of [the same] age, intelligence, experience and capacity . . . under the same
or similar circumstances.” Rudes v. Gottschalk, 324 S.W.2d 201, 204 (Tex. 1959). The jury may
18
further apportion third-party responsibility to the person upon whom the law places the burden to
properly restrain the child.
There also should be no confusion on the relationship of this holding with the existing
failure-to-mitigate-damages doctrine. A plaintiff’s failure to mitigate his damages traditionally
occurs post-occurrence and, as noted in Kerby, the doctrine does not readily translate in the preoccurrence
context. 503 S.W.2d at 528 (noting “conceptual difficulty of applying the mitigation[-
]of[-]damages concept to Plaintiff’s conduct antedating the negligence of the Defendant”). That
distinction remains. A plaintiff’s post-occurrence failure to mitigate his damages operates as a
reduction of his damages award and is not considered in the responsibility apportionment. It is only
the plaintiff’s pre-occurrence, injury-causing conduct that should be considered in the responsibility
apportionment.
Lastly, there is no need, as some have suggested, to deviate from a single apportionment
question. See Bagley, supra, at 736–37 (suggesting two fault analyses). A jury can consider a
plaintiff’s pre-occurrence, injury-causing conduct alongside his and other persons’ occurrencecausing
conduct. In crashworthiness cases, for instance, a product defect often “causes or enhances
injuries but does not cause the accident”; nonetheless, “[t]he jury is asked to apportion responsibility
between all whose actions or products combined to cause the entirety of the plaintiff’s injuries.”
Duncan v. Cessna Aircraft Co., 665 S.W.2d 414, 428 (Tex. 1984). This exercise may at times prove
challenging for jurors, but no more so than what they already face in distilling the multiple factors
they must consider in one responsibility allocation. There is nothing about injury-causing conduct
19
that renders it incompatible with being considered alongside occurrence-causing conduct in one
responsibility apportionment for the harm suffered by the plaintiff.
E
Today’s holding is rooted in statutory interpretation and the unavoidable conclusion that our
proportionate-responsibility statute both allows and requires fact-finders to consider pre-occurrence,
injury-causing conduct. But the arguments against allowing seat-belt evidence, including some urged
by the families in this case, transcend statutory interpretation and touch on themes of general fairness
and fundamental principles of tort law. We respond to them because we believe our holding is not
merely correct statutory interpretation; it also promotes sound public policy.
Attitudes toward use of seat belts have evolved drastically since the early 1970s. When we
decided Kerby and Carnation, seat-belt use was not required by law. Car manufacturers had only
recently been required to install seat belts as standard equipment on all passenger vehicles, but
relatively few people wore them—as few as 14% nationwide in 1984, the year before Texas enacted
its first seat-belt law. Peter Scaff, The Final Piece of the Seat Belt Evidence Puzzle, 36 HOUS. L.
REV. 1371, 1378 n.43 (1999). But in the intervening time since seat-belt use became the law, that
number has jumped to 84%. NAT’L HIGHWAY TRAFFIC SAFETY ADMIN., DEP’T OF TRANSP., DOT
HS 811 651, TRAFFIC SAFETY FACTS, CRASH STATS–SEAT BELT USE IN 2011 1–2 (Aug. 2012). And
Texas boasts an even higher usage rate of 93.7%. Id.
A wealth of research has established that seat belts reduce injuries and save lives. According
to the National Highway Traffic Safety Administration, seat belts prevent more than 11,000 deaths
each year. NAT’L HIGHWAY TRAFFIC SAFETY ADMIN., DEP’T OF TRANSP., DOT HS 810 649,
20
PRIMARY ENFORCEMENT SAVES LIVES–THE CASE FOR UPGRADING SECONDARY SAFETY BELT LAWS
25 (Sept. 2006). And while ejection is “one of the most injurious events that can happen to a person
during a crash,” seat belts are up to 99% effective at preventing “total ejections.” Id. The percentage
of seat-belt nonuse in fatal accidents is alarming. For example, in 2012, between 48% and 54% of
people killed in car accidents were not using seat belts. NAT’L HIGHWAY TRAFFIC SAFETY ADMIN.,
DEP’T OF TRANSP., DOT HS 812 070, TRAFFIC SAFETY FACTS, 2012 DATA–PASSENGER VEHICLES
4 (Sept. 2014). But we will not belabor the point with statistics. To do so suggests there is still
legitimate debate over the propriety of seat-belt use. That debate has long ended. Seat-belt laws are
now in effect in every state, and the vast majority of Texans buckle up on a regular basis. Yet until
today a contradictory legal system punished seat-belt nonuse with criminal citations while allowing
plaintiffs in civil lawsuits to benefit from juries’ ignorance of their misconduct.
Perhaps the most common argument against seat-belt evidence is one we have already
addressed—that the failure to use a seat belt does not cause an accident, and it is those who cause
accidents who should pay. But as we have pointed out, our legal system now takes a broader view
toward assigning responsibility for a plaintiff’s damages. So although this argument points out a
logical distinction between occurrence-causing and injury-causing conduct, it engages a debate the
Legislature has settled—the distinction does not immunize a plaintiff from his own injury-causing
conduct.
Some argue that admitting seat-belt evidence violates the principle that a plaintiff is not
required to anticipate the negligent or unlawful conduct of another. See Humble Oil & Refining Co.
v. Martin, 222 S.W.2d 995, 1001 (Tex. 1949) (noting the “general axiom that a person is not bound
21
to anticipate the negligence of others”). But this has never been a steadfast rule of tort law. Rather,
it is a guiding principle the law has balanced with the duty everyone has to guard against foreseeable
risks—a duty that has been recognized at least since Palsgraf v. Long Island R. Co., 162 N.E. 99
(N.Y. 1928). See also The Kroger Co. v. Keng, 23 S.W.3d 347, 351 (Tex. 2000) (“Contributory
negligence contemplates an injured person’s failure to use ordinary care in regard to his or her own
safety.”). We have consistently held that foreseeability turns on existence of a general danger, not
awareness of the exact sequence of events that produces the harm. See, e.g., Mellon Mortg. Co. v.
Holder, 5 S.W.3d 654, 655 (Tex. 1999) (collecting cases). The general danger of driving is obvious
to everyone. The NHTSA reports that in 2012, the most recent year for which data is available,
nearly ten million passenger-vehicle accidents occurred, causing injuries to two million people—and
these numbers encompass only accidents reported to police. NAT’L HIGHWAY TRAFFIC SAFETY
ADMIN., DEP’T OF TRANSP., DOT HS 812 070, TRAFFIC SAFETY FACTS, 2012 DATA–PASSENGER
VEHICLES 1 (Sept. 2014). From the rural Texan who braves harrowing two-lane highways to the
urban commuter who plans his route to avoid daily accident-related congestion, the dangers of
driving are ubiquitous. So when it comes to foreseeing the general hazard of automobile travel,
“[t]here is nothing to anticipate; the negligence of other motorists is omnipresent.” Law v. Superior
Court, 755 P.2d 1135, 1141 (Ariz. 1988). Indeed, by enacting seat-belt laws, the Legislature has
required motorists to anticipate the negligence of others.
Finally, some insist that admitting seat-belt evidence provides a windfall for defendants who
will be relieved of paying the full damages caused by their negligence. But the reverse is equally
arguable—a plaintiff whose injuries were exacerbated by failure to use a seat belt benefits from the
22
jury’s ignorance of his own conduct. The result is certainly an oddity: the unbelted plaintiff is likely
to be punished with a criminal citation carrying a monetary fine from the police officer investigating
the accident, but in the civil courtroom his illegal conduct will be rewarded by monetary
compensation. There are no windfalls under the rule we announce today. Even when trial courts
properly admit seat-belt evidence, defendants will still be held liable for the damages they caused,
but not the injuries the plaintiff caused by not using a seat belt.
IV
The families argue we need not reconsider the seat-belt evidence prohibition in
Carnation because without Dr. Funk’s injury-causation testimony, excluded on Robinson grounds,
Nabors has no evidence the plaintiffs’ failure to use seat belts caused their injuries or the lone
fatality. Nabors argues the jury could have inferred injury causation from other evidence even
without the excluded expert testimony. Specifically, Nabors suggests ejection itself gives rise to a
reasonable inference that the occupant was unbelted, and that Dr. Funk’s “biomechanical testimony”
alone would have established the plaintiffs “would not have been flung around inside—nor ejected
from—the Suburban if they had been wearing their seat belts.”
The trial court relied on our precedent in prohibiting seat-belt evidence but insisted it would
have struck Dr. Funk’s injury-causation testimony on Robinson grounds even if seat-belt evidence
were allowed. Nabors argued to the court of appeals that the trial court abused its discretion in
excluding Dr. Funk’s injury-causation testimony, but the court of appeals affirmed the trial court’s
judgment solely on the ground that seat-belt evidence was properly excluded. It did not address the
independent Robinson issues.
23
We decline to consider whether the trial court acted within its discretion in limiting Dr.
Funk’s testimony or whether Nabors had sufficient injury-causation evidence without Dr. Funk’s full
testimony. Those issues were not considered by the court of appeals and were not fully briefed to this
Court. Instead, this appeal has turned on whether Carnation should still stand. We believe any
remaining issues will be elucidated with the Carnation prohibition no longer in place and that the
parties will benefit from the opportunity to narrow their focus at the court of appeals to these
remaining issues.
* * *
We hold relevant evidence of use or nonuse of seat belts, and relevant evidence of a
plaintiff’s pre-occurrence, injury-causing conduct generally, is admissible for the purpose of
apportioning responsibility under our proportionate-responsibility statute, provided that the
plaintiff’s conduct caused or was a cause of his damages. Accordingly, we reverse the court of
appeals’ judgment and remand this case to the court of appeals for further proceedings consistent
with this opinion.
_____________________________
Jeffrey V. Brown
Justice
OPINION DELIVERED: February 13, 2015

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Necessity and Nature of Venue in Texas Civil Litigation–Texas Civil Litigation Attorneys

Court of Appeals of Texas,Dallas.
Rutilio Ignacio VELASCO, Individually and a/n/f
Josue Velasco, A Minor, Erick Velasco, A Minor,
and Steven Velasco, A Minor, and as Representative
of The Estate of Gloria Oviedo Velasco, Appellant
v.
TEXAS KENWORTH COMPANY, Texas Kenworth
Company d/b/a MHC Kenworth-Dallas,
Texas Kenworth Company d/b/a MHC Kenworth-
Fort Worth, Texas Kenworth Company d/b/a Texas
Kenworth Co. Dallas, Texas Kenworth Company d/
b/a Texas Kenworth Co. Fort Worth, Texas Kenworth
Corporation and Mark Sims, Appellees.
No. 05-03-01160-CV.
Aug. 17, 2004.
Rehearing Overruled Sept. 30, 2004.
Background: Husband of driver killed in accident,
individually, as representative of driver’s estate, and
on behalf of minor children, brought wrongfuldeath
action against manufacturer of tractor involved
in accident, and against individual. After
transfer of venue from county where accident occurred,
the 192nd Judicial District Court, Dallas
County, Merrill Hartman, J., granted summary
judgment for defendants. Husband appealed.
Holding: The Court of Appeals, Joseph B. Morris,
J., held that venue lay in county where accident occurred.
Vacated and remanded.
West Headnotes
[1] Venue 401 8.2
401 Venue
401I Nature or Subject of Action
401k8 Actions for Torts
401k8.2 k. Particular Torts. Most Cited
Cases
Pursuant to venue statute, venue for wrongful-death
case brought by husband of driver killed in multivehicle
accident lay in county where accident occurred,
where driver died, where bid for tractor involved
in accident was submitted and opened by
county authorities, and where individual defendant
talked to county authorities. V.T.C.A., Civil Practice
& Remedies Code § 15.002(a)(1).
[2] Venue 401 1.5
401 Venue
401I Nature or Subject of Action
401k1.5 k. Nature and Necessity of Venue in
Action. Most Cited Cases
A plaintiff has the first choice to fix venue in a
proper county. V.T.C.A., Civil Practice & Remedies
Code § 15.002(a)(1).
[3] Appeal and Error 30 1043(8)
30 Appeal and Error
30XVI Review
30XVI(J) Harmless Error
30XVI(J)6 Interlocutory and Preliminary
Proceedings
30k1043 Interlocutory Proceedings
30k1043(8) k. Objections to Venue
and Motions for Change of Venue. Most Cited
Cases
It is reversible error to transfer venue from a proper
venue, even if the county of transfer would have
been proper if originally chosen by the plaintiff.
V.T.C.A., Civil Practice & Remedies Code §
15.002(a)(1).
[4] Appeal and Error 30 840(1)
30 Appeal and Error
30XVI Review
30XVI(A) Scope, Standards, and Extent, in
General
30k838 Questions Considered
30k840 Review of Specific Questions
144 S.W.3d 632 Page 1
144 S.W.3d 632
© 2008 Thomson Reuters/West. No Claim to Orig. US Gov. Works.
and Particular Decisions
30k840(1) k. In General. Most
Cited Cases
To determine whether a trial court improperly
transferred venue in a case, an appellate court must
consider the entire record, including any trial on the
merits. V.T.C.A., Civil Practice & Remedies Code
§ 15.002(a)(1).
[5] Venue 401 33
401 Venue
401III Change of Venue or Place of Trial
401k33 k. Power and Duty of Court in General.
Most Cited Cases
If there is any probative evidence that supports venue
in the county of suit, the trial court must deny a
transfer; this is true even if the evidence preponderates
to the contrary. V.T.C.A., Civil Practice &
Remedies Code § 15.002(a)(1).
[6] Venue 401 2
401 Venue
401I Nature or Subject of Action
401k2 k. Place in Which Action May Be
Brought or Tried in General. Most Cited Cases
Venue statute limits the number of counties where
venue can be maintained to those with a substantial
connection with the lawsuit. V.T.C.A., Civil Practice
& Remedies Code § 15.002(a)(1).
*632 M. Kevin Queenan, Queenan Law Firm, P.C.,
DeSoto, for Appellant.
*633 James L. Williams, Williams, Peters &
Parmelee, P.C., and Carolyn Mitchell, Law Office
of Carolyn Mitchel, Fort Worth, for Appellee.
Before Justices MORRIS and
WHITTINGTON.FN1
FN1. The Honorable Tom James, Retired,
Court of Appeals, Fifth District of Texas at
Dallas, was a member of the panel at the
time this case was argued and submitted
for decision. Due to his retirement from
the Court, Justice James did not participate
in the issuance of this opinion.
SeeTEX.R.APP. P. 41.1(a) & (b).
OPINION
Opinion by Justice MORRIS.
In this wrongful death case, appellant Rutilio Ignacio
Velasco, individually and as next friend to
Josue Velasco, a minor, Erick Velasco, a minor,
and Steven Velasco, a minor, and as Representative
of the Estate of Gloria Oviedo Velasco, appeals the
trial court’s final judgment dismissing his claims
with prejudice. On appeal, appellant makes three
general arguments: first, he asserts his case was improperly
transferred from Johnson County to Dallas
County; second, he claims the Johnson County trial
court erred in granting summary judgment to appellee
Mark Sims; and third, he contends the Dallas
County trial court erred in denying his motion for a
continuance and granting summary judgment to appellees
Texas Kenworth Company, Texas Kenworth
Company d/b/a MHC Kenworth-Dallas, Texas Kenworth
Company d/b/a MHC Kenworth-Fort Worth,
Texas Kenworth Company d/b/a Texas Kenworth
Co. Dallas, Texas Kenworth Company d/b/a Texas
Kenworth Co. Fort Worth and Texas Kenworth
Corporation. Because we conclude appellant’s case
was transferred to Dallas County in error, we vacate
the Dallas County trial court’s final summary judgment
and remand the case to that court for transfer
back to the trial court in Johnson County.
Appellant filed this lawsuit after his wife died in a
multi-vehicle collision in Johnson County, Texas.
In his petition, appellant alleged that a used Kenworth
semi-tractor purchased by Johnson County
from the Kenworth appellees shortly before the accident
had faulty brakes and was a proximate cause
of the collision. Appellant asserted claims for negligence,
strict liability, breach of warranty, and misrepresentation.
FN2 Kenworth filed an answer
denying each allegation in appellant’s petition and
filed a motion to transfer the case from Johnson
County to Dallas County. Appellant amended his
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petition to include Mark Sims as defendant. Appellant
asserted venue was proper in Johnson County
because it is the location where a substantial part of
the events or omissions giving rise to his claims occurred
and because appellee Mark Sims resided in
Johnson County. Sims moved for and was granted
summary judgment. The trial court then granted
Kenworth’s motion to transfer appellant’s lawsuit to
Dallas County. In Dallas, Kenworth filed a traditional
and a no-evidence motion for summary judgment.
The trial court granted summary judgment in
Kenworth’s favor and rendered a final judgment incorporating
all of the previous interlocutory orders.
It is from this judgment that appellant appeals.
FN2. Appellant also asserted claims
against the previous owners of the vehicle,
Unimin Corporation and Unimin Texas
Company, L.P. The Unimin defendants
were granted summary judgment by the
Johnson County trial court.
[1][2][3][4][5] In his first point of error, appellant
complains about the trial court’s order transferring
his lawsuit from Johnson *634 County to Dallas
County.FN3 Texas venue law is well-established.
The plaintiff has the first choice to fix venue in a
proper county. See Wilson v. Texas Parks & Wildlife
Dept., 886 S.W.2d 259, 261 (Tex.1994). It is reversible
error to transfer venue from a proper venue
even if the county of transfer would have been
proper if originally chosen by the plaintiff. See id.
at 262. To determine whether a trial court improperly
transferred the case, we must consider the entire
record, including any trial on the merits. Ruiz
v. Conoco, Inc., 868 S.W.2d 752, 758 (Tex.1993).
If there is any probative evidence that supports venue
in the county of suit, the trial court must deny
the transfer. Bonham State Bank v. Beadle, 907
S.W.2d 465, 471 (Tex.1995). This is true even if
the evidence preponderates to the contrary. Id.
FN3. In addition to opposing the trial
court’s transfer order on the merits, appellant
also claims that Kenworth waived the
venue issue by “waiting almost a year to
seek a hearing on its motion.” Because appellant
has provided no argument or authority
to support this contention, appellant
does not present the issue for review.
SeeTEX.R.APP. P. 38.1(h).
[6] In the case before us, appellant relies on section
15.002(a)(1) of the Texas Civil Practices and Remedies
Code to establish venue in Johnson County.
This section provides that venue is proper in the
county where “all or a substantial part of the events
or omissions giving rise to the claim occurred.”
TEX. CIV. PRAC. & REM.CODE ANN. §
15.002(a)(1) (Vernon 2002). This provision limits
the number of counties where venue can be maintained
to those with a substantial connection with
the lawsuit. Chiriboga v. State Farm Mut. Auto. Ins.
Co., 96 S.W.3d 673, 681 (Tex.App.-Austin 2003,
no pet.). Appellant’s factual basis for maintaining
venue in Johnson County is that Johnson County is
where the accident occurred, where appellant’s wife
died, where the bid for the semi-tractor was submitted
and opened by Johnson County representatives,
and where Sims talked to Johnson County representatives
about the semi-tractor. Thus, appellant
contends, Johnson County became the site for a
substantial part of the facts giving rise to his
claims. We agree.
Appellant’s wrongful death claim arose when his
wife died in the accident in Johnson County. See
Ray v. Farris, 887 S.W.2d 164, 166
(Tex.App.-Texarkana 1994,rev’d on other
grounds, 895 S.W.2d 351 (Tex.1995)). Additionally,
appellant’s petition complains about the failure
of Kenworth to inform or warn Johnson County
about the dangerous condition of the semi-tractor,
the breach of various warranties contained in the
bid proposal, and misrepresentations made to Johnson
County with respect to the character or quality
of the semi-tractor. Appellant complains that these
omissions or acts occurred at the time the bid was
delivered to Johnson County representatives in
Johnson County. Because a substantial number of
the essential facts upon which appellant’s claims are
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based occurred in Johnson County, we conclude
venue was proper in Johnson County.
Conceding that there is no dispute that appellant’s
claim arose when the accident occurred in Johnson
County, Kenworth argues that for purposes of a
venue analysis under subsection (a)(1), we must focus
solely on the defendant’s action or inaction giving
rise to appellant’s claims. Specifically, Kenworth
asserts that because appellant’s petition alleges
that it failed to properly repair, service, or inspect
the brakes on the semi-tractor, Tarrant County
is the proper venue under subsection (a)(1) because
that is where these alleged acts or omissions occurred.
FN4 Initially, we *635 note that there is no
indication that the present venue statute contemplates
only one county can satisfy the requirements
of subsection (a)(1). Indeed at least one appellate
court has concluded more than one county may
qualify as proper venue under subsection (a)(1)
provided a “substantial part of the event or omissions”
giving rise to the claim occurred there. See
Southern County Mut. Ins. Co. v. Ochoa, 19
S.W.3d 452, 458 (Tex.App.-Corpus Christi 2000).
Therefore, to succeed on its motion to transfer,
Kenworth had to establish that no substantial part
of the events giving rise to appellant’s claims occurred
in Johnson County, not merely that a substantial
part of the events or omissions occurred in
another county. Kenworth has failed to do so. Even
assuming that Tarrant County qualified as a county
where a substantial part of the events or omissions
giving rise to appellant’s cause of action occurred,
there was probative evidence that Johnson County
also satisfied subsection (a)(1)’s requirements. Accordingly,
the trial court erred in transferring the
case from Johnson County.
FN4. Although Kenworth argued in the trial
court that the appropriate venue under
subsection (a)(1) was Tarrant County,
Kenworth requested the trial court to transfer
the case to Dallas County under subsection
(a)(3) because that is where its principal
place of business is located.
Although our research has revealed no Texas case
directly on point, we find support for our conclusion
in several federal cases. Because subsection
(a)(1) appears to have been patterned after a federal
venue statute, we may presume the legislature intended
to adopt the construction placed on that
wording by the federal courts and look to federal
cases to guide our interpretation of the state
statute.FN5 See id at 457. The ninth circuit has
reasoned that because the harm a plaintiff experienced
occurred in Nevada, venue was proper there
as the location where a substantial part of the
events and omission giving rise to the claim occurred.
See Myers v. Bennett Law Offices, 238
F.3d 1068, 1075 (9th Cir.2001). In product liability
cases against manufacturers, other courts have
stated the accident or crash constituted a substantial
part of the events giving rise to the claim such that
venue is appropriate where the crash or accident occurred.
Cali v. E. Coast Aviation Serv., Ltd., 178
F.Supp.2d 276, 282 (E.D.N.Y.2001) (venue proper
where airplane crashed); Roll v. Tracor, Inc., 26
F.Supp.2d 482, 485 (W.D.N.Y.1998) (venue proper
where accident occurred); and Dwyer v. Gen. Motors
Corp., 853 F.Supp. 690, 692 (S.D.N.Y.1994).
Contrary to Kenworth’s position, federal courts
have interpreted the subsection (a)(1)’s federal
counterpart to allow venue in a district where acts
or omissions closely related to the legal action occurred,
even if none of those acts or omissions were
the act or omission that allegedly caused the injury.
See e.g., Ciena Corp. v. Jarrard, 203 F.3d 312,
315-16 (4th Cir.2000).
FN5. The federal statute provides venue in
a diversity action may be placed in “a judicial
district in which a substantial part of
the events or omission giving rise to the
claim occurred.” 28 U.S.C. § 1391(a)(2).
Because the accident, appellant’s wife’s death, and
other events of which appellant complains occurred
in Johnson County, we conclude that Johnson
County has a close connection to this lawsuit and
that the requirements of subsection (a)(1) have been
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satisfied. We therefore sustain appellant’s first point
of error. Because our determination on the venue
question is dispositive, we do not address appellant’s
remaining points of error. SeeTEX.R.APP. P.
47.1.
We vacate the judgment of the trial court and remand
this case to the trial *636 court for transfer to
the Johnson County trial court for further proceedings
consistent with this opinion.
Tex.App.-Dallas,2004.
Velasco v. Texas Kentworth Co.
144 S.W.3d 632
END OF DOCUMENT
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Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Tortious Interference With Contract Claims in Texas–Fort Worth, Texas Contracts Law Attorneys

Reversed and Remanded and Opinion Filed January 28, 2015

In The Court of Appeals Fifth District of Texas at Dallas No. 05-13-01285-CV CREST INFINITI II, LP, Appellant V. TEXAS RV OUTLET AND TURN KEY RECOVERY, Appellees On Appeal from the County Court at Law No. 1 Collin County, Texas Trial Court Cause No. 1-860-2012

MEMORANDUM OPINION Before Justices Francis, Evans, and Stoddart Opinion by Justice Francis Crest Infiniti II, LP appeals the trial court’s take-nothing judgment in favor of Texas RV Outlet and Turn Key Recovery.

In two issues, Crest claims the evidence established as a matter of law Crest was entitled to judgment on its tortious interference with a contract and conversion claims, or alternatively, the trial court’s conclusion to the contrary is against the great weight and preponderance of the evidence. Crest also contends it was entitled to attorney’s fees. Appellees did not file a brief. We reverse the trial court’s judgment and remand for further proceedings consistent with this opinion. Billy Whitaker bought an Infiniti M45 from Texas RV Outlet, financing the purchase through Texas RV Outlet’s finance company. In November 2011, Whitaker took his car to Crest for maintenance and repair work. After receiving an estimate of the cost, Whitaker approved the –2– work. Although a Crest employee contacted Whitaker when the work was completed, Whitaker did not pay for the work or pick up his car. Nearly three weeks later, at the request of Texas RV Outlet, Turn Key Recovery repossessed Whitaker’s car for nonpayment, removed it from the Crest lot, and towed it to Texas RV Outlet. When Texas RV Outlet refused to return the vehicle, and ultimately sold it, Crest sued for tortious interference with a contract and conversion and sought attorney’s fees. The trial court ordered Crest take nothing and filed findings of fact and conclusions of law, including that appellees did not convert property owned by Crest, Crest did not have a lien on the car, and Crest did not sustain any actual damages. In its first issue, Crest contends the trial court’s judgment was contrary to the law and manifestly wrong and unjust because the undisputed evidence shows Crest had a lien under section 70.001 of the property code, Crest’s lien had priority over that held by Texas RV Outlet, Crest had possession of the car and appellees converted the car when they towed it from Crest’s car lot without permission. We review a trial court’s findings of fact under the same legal and factual sufficiency of the evidence standards used when determining if sufficient evidence exists to support an answer to a jury question. Catalina v. Blasdel, 881 S.W.2d 295, 297 (Tex. 1994).

When the appellate record contains a reporter’s record, as it does in this case, findings of fact are not conclusive on appeal if the contrary is established as a matter of law or if there is no evidence to support the findings. Ramsey v. Davis, 261 S.W.3d 811, 815 (Tex. App.―Dallas 2008, pet. denied). A party challenging the sufficiency of the evidence supporting an adverse finding on which the appealing party had the burden of proof must show the matter was established as a matter of law, or the trial court’s failure to make the finding was against the great weight and preponderance of the evidence. See Croucher v. Croucher, 660 S.W.2d 55, 58 (Tex. 1983). –3– Conversion is the unauthorized and wrongful assumption and exercise of dominion and control over the owner’s or possessor’s property to the exclusion of, or inconsistent with, the owner/possessor’s rights. See Waisath v. Lack’s Stores, Inc., 474 S.W.2d 444, 447 (Tex. 1971); see French v. Moore, 169 S.W.3d 1, 14 (Tex. App.―Houston [1st Dist.] 2004, no pet.) (conversion not restricted to owners of property but may also be brought by aggrieved party possessing or having right of immediate possession of property). Conversion is designed to protect against interference with a person’s possessory interest in personal property. Zapata v. Ford Motor Credit Co., 615 S.W.2d 198, 201 (Tex. 1981); see also Killian v. Trans Union Leasing Corp., 657 S.W.2d 189, 192 (Tex. App.―San Antonio 1983, writ ref’d n.r.e.) (conversion “is concerned with possession, not title”). To establish a claim for conversion of personal property, a plaintiff must prove: (1) it owned or had legal possession of the property or entitlement to possession; (2) the defendant unlawfully and without authorization assumed and exercised dominion and control over the property to the exclusion of, or inconsistent with, the plaintiff’s rights; (3) the plaintiff demanded return of the property; and (4) the defendant refused to return the property. Khorshid, Inc. v. Christian, 257 S.W.3d 748, 758−59 (Tex. App.―Dallas 2008, no pet.). Chapter 70 of the Texas Property Code provides that a worker “who by labor repairs a vehicle” has a lien on the vehicle and may retain possession of the vehicle pending payment of the amount due under a contract for the repairs. TEX. PROP. CODE ANN. § 70.001 (West 2014).

A possessory mechanic’s lien has priority over a seller’s perfected security interest in an automobile. Gulf Coast State Bank v. Nelms, 525 S.W.2d 866, 869−70 (Tex. 1975). At trial, Chance Simpson, a Crest service advisor, said Whitaker brought his car in for service, and Simpson completed a work order detailing the problems Whitaker was experiencing. Whitaker also presented a warranty to cover the work, but Simpson said it was an “after market” –4– warranty (not issued by Crest or the factory) and did not cover the repairs. James Saliva, the service manager at Crest, spoke with Whitaker before the repairs were made and offered him a 10% discount; he also offered to trade in the Infiniti on a newer model. Whitaker approved the work order, and on December 2, Crest completed the work, which totaled $5,925.81. When Crest offered the exhibit with the work estimate and the actual repair amount, appellees did not object. Simpson said they called Whitaker, but he did not pay for the repairs nor did he claim his vehicle. On December 21, 2011, a Crest technician called Saliva and told him a tow company was taking Whitaker’s car. Saliva went to the area on Crest’s property where all the completed cars are placed awaiting customer pick up and saw the Turn Key Recovery tow truck with Whitaker’s car leaving the property. Saliva got in his car and tried to chase the truck but due to traffic was unable to stop it; he also “tried calling them with my cellphone as I was driving.” When he returned to Crest, he called Turn Key Recovery and Texas RV Outlet and demanded the return of the car; however, neither company returned the car or paid for the repairs. Saliva described the Crest lot where Whitaker’s car was as the staging area holding “all of the completed cars for customers to pick up.” The lot is not public property but is Crest private property. Saliva stated that the lot was not locked during hours of operation in order to allow customers to easily retrieve their cars and to comply with fire code regulations. But “the whole property is locked down and guarded by security after hours.” Saliva also said the property had “No Trespass” signs posted on the wall that were visible to all. Lenny Zak, the owner of Texas RV Outlet, said Whitaker bought the car and, after making only one payment, defaulted on the remainder of the payments. Turn Key Recovery repossessed Whitaker’s car at Zak’s request. Zak said he did not believe they had broken the law because Texas RV Outlet had the lien on the car title. He conceded Turn Key Recovery was –5– acting as Texas RV Outlet’s agent. When asked if he knew about mechanic’s liens and the right of a dealership or auto shop to retain possession of a vehicle until payment for work is made, he replied, “I don’t know about that.” This evidence shows Crest performed $5,925.81 worth of repairs and maintenance on Whitaker’s car at Whitaker’s request and authorization; as a result, Crest had a possessory mechanic’s lien in that amount for the work performed on the car; Turn Key Recovery, acting as Texas RV Outlet’s agent, took control over the car to the exclusion of Crest without Crest’s permission or authorization; Crest demanded return of the property; and Texas RV Outlet refused and sold the car. Given this undisputed evidence, the trial court erred by concluding Crest did not have a lien on the car, appellees did not convert the car which Crest possessed at the time, and Crest did not sustain $5,925.81 in actual damages. See Gulf Coast State Bank, 525 S.W.2d at 869. Appellees spent considerable time at trial discussing Crest’s security, including why the lot remained unlocked during regular business hours, and even suggested addition measures Crest could have taken to protect its property from appellees.

In short, Crest was faulted for failing to prevent appellee Turn Key Recovery from entering its lot and “peaceably” towing the car. While a possessory lien held by a mechanic or repairman may be lost upon the voluntary delivery of the vehicle to the owner, we conclude it was not lost when appellees trespassed and took the car from Crest’s private lot without permission or authority. We sustain Crest’s first issue. In its second issue, Crest contends it was entitled to attorney’s fees under Chapter 70 of the property code and asks this Court to award the same. Section 70.008 of the property code provides, in relevant part, “The court in a suit concerning possession of a motor vehicle . . . and a debt due on it may award reasonable attorney’s fees to the prevailing party.” TEX. PROP. CODE –6– ANN. § 70.008 (West 2014). The statute does not restrict the award of attorney’s fees to one suing on a debt who wishes to retain possession of a vehicle. Elite Towing v. LSI Fin. Grp., 985 S.W.2d 635, 645 (Tex. App.―Austin 1999, no pet.); Kollision King, Inc. v. Calderon, 968 S.W.2d 20, 24 (Tex. App.―Corpus Christi 1998, no pet.). Crest’s right of possession of the vehicle and the debt secured by the possessory lien were at issue in this case. And because Crest established as a matter of law that Texas RV Outlet and Turn Key Recovery, as its agent, converted the vehicle, Crest is the prevailing party.

We sustain Crest’s second issue to the extent it seeks a determination of whether attorney’s fees may be awarded to Crest in this case. See Elite Towing, 985 S.W.2d at 645 (prevailing party entitled to attorney’s fees); Kollision King, Inc., 968 S.W.2d at 24 (same); Seureau v. Mudd, 515 S.W.2d 746, 749 (Tex. Civ. App.—Houston [14th Dist.] 1974, writ ref’d, n.r.e.) (within trial court’s discretion to award attorney’s fees to prevailing party). We reverse the trial court’s judgment that Crest take nothing and remand this case to the trial court to (1) render judgment in favor of Crest in the amount of $5,925.81 on its claim for conversion and (2) determine the amount of attorney’s fees, if any, to be awarded to Crest as the prevailing party.

 

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Final Pay for Commissions and Bonuses Under the Texas Pay Day Law–Fort Worth, Texas Employment Defense Attorneys

According to the Texas Workforce’s interpretation and analysis, a common problem is that of what happens with an employer’s duty to pay commissions and bonuses once an employee has left the company. The answer depends upon the terms of the commission or bonus agreement. Commission pay agreements are enforceable whether they are oral or in writing, and agreements can be established with a showing of a pattern or practice of paying commissions in a certain way. Thus, the advice to have a clear, signed written wage agreement applies with particular force to commissions. Changes to written agreements must be in writing. A good agreement will avoid the risks of ambiguity by clearly setting out how commissions are earned, when and under what circumstances they are paid, whether “chargebacks” are made and under what circumstances, and what happens to commissions from sales in progress at the time of work separation. Similarly, a bonus agreement should specify exactly how a bonus is earned, how it is calculated, when it is paid, whether it is discretionary in any way (as to the amount, timing, or ability of the company to cancel the bonus altogether under certain conditions), and what happens to a bonus that is not determined or paid out until after an employee has left the company. If the commission or bonus agreement provides for payment of commissions and bonuses in any way after an employee has separated from employment, the deadline for such a payment would be based upon the wording of the agreement. Prior draws against commissions may be offset against the final pay; under 40 T.A.C. § 821.26(d), “[d]raws against commissions or bonuses may be recovered from the current or any subsequent pay period until fully reconciled.” The key to protecting the company’s interests is to spell out in a clear, written agreement exactly how, when, and under what circumstances commissions and bonuses will be paid, and then follow the written agreement to the letter, because that is how TWC will enforce the agreement in the event of a wage claim concerning such payments.

 

The Texas Family Code provides that garnishment for support obligations apply to certain post-termination lump-sum payments such as a bonus, commission, or payout of accrued leave (see Texas Family Code § 158.215): if such a lump-sum payment is $500 or more, the employer must notify the Attorney General’s office (do it in writing or electronically – see https://portal.cs.oag.state.tx.us/wps/portal/WageWithholdingResponsibilities#lumpsum) before making the payment so that that agency can determine whether a support deduction should be made. The agency then has ten days after that date to notify the employer about its duty to make the support deduction; if no such notification occurs, the employer may make the payment without the deduction. If, however, the agency informs the employer that the support order would apply to the lump-sum payment, the employer would need to make the deduction. Since such a garnishment would be pursuant to a court order, it would not have to be authorized in writing by the employee.

 

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Traffic Signals and Governmental Immunity Under the Texas Tort Claims Act– Fort Worth, Texas Insurance Defense Attorneys

THE CITY OF GRAPEVINE, TEXAS v. AMY SIPES AND TANA (TREVINO) WADDELL

IN THE SUPREME COURT OF TEXAS============No. 04-0933============

City of Grapevine, Texas

Petitioner,

v.

Amy Sipes and Tana (Trevino) Waddell

Respondents

====================================================

On Petition for Review from the

Court of Appeals for the Second District of Texas

====================================================

Argued February 15, 2006

Chief Justice Jefferson delivered the opinion of the Court.

Under the Texas Tort Claims Act, a governmental unit retains immunity for claims based on the absence of a traffic signal unless the absence is not corrected by the governmental unit within a reasonable time after notice. Tex. Civ. Prac. & Rem. Code 101.060(a)(2). The trial court held that this provision immunized the City of Grapevine from liability based on its alleged negligence in failing to install a traffic signal within a reasonable time after initially deciding to do so. The court of appeals disagreed and reversed in part the trial court s judgment. Because we conclude that absence, as used in subsection (a)(2), requires a prior presence, we reverse in part the court of appeals judgment and render judgment dismissing the case for lack of subject matter jurisdiction.

I

Factual Background

The City of Grapevine and Grapevine Mills, L.L.C. ( Mills ) entered into an agreement pursuant to which Mills would build the Grapevine Mills Mall (the Mall ). To accommodate increased traffic, the City planned to widen a nearby road, Business 114, from two lanes to five, as part of what was termed the Northwest Highway Expansion Project. The City hired an engineering firm to create a traffic control plan for the project; the resulting plan required a permanent traffic signal at the intersection of Business 114 and State Highway 26. The plan did not call for a temporary traffic signal during construction, however.

Because the intersection became a high accident site during construction, the City asked the Texas Department of Transportation (TxDOT) to erect a temporary traffic signal on the state-owned right-of-way. TxDOT responded that funding was inadequate for such a signal, so the City began to raise the necessary monies itself. The City hired a private consultant to prepare a warrant study justifying the need for a temporary signal, and on October 29, 1997, City officials met to coordinate its construction; the City planned to begin installation by November 7. The signal was not installed, however, until December 5.

On November 28, the day after Thanksgiving, Amy Sipes and her daughter, Tana Trevino Waddell, were traveling northbound on 114, heading to the newly opened Grapevine Mills Mall. At the intersection of 114 and 26, Sipes stopped at the temporary stop sign, but alleges that her vision was obstructed by concrete barriers, a road closed sign, and barrels. As Sipes inched her vehicle forward, it was struck by a truck driven by Jerry Gaston, who had been traveling eastbound on Northwest Highway. Both Sipes and Waddell sustained injuries.

Sipes, individually and as next friend of her daughter, sued the City and others for damages from injuries sustained in the accident. The City pleaded governmental immunity and moved for summary judgment on that and other bases.[1] Sipes responded, alleging in part that the City had notice of a dramatic increase in vehicular accidents at the intersection, and that the absence of a traffic signal or a four-way stop, where a permanent signal was provided for, waived the City s immunity pursuant to section 101.060. The trial court granted the City s motion and severed the claims. Sipes appealed.

The court of appeals reversed and remanded the trial court s judgment in favor of the City on the traffic signal issue, but affirmed the remainder of the judgment. 146 S.W.3d 273, 284-85. The court held that, while the City exercised discretion in deciding to install a temporary traffic signal at the intersection, a question of material fact exists concerning whether the City properly implemented its decision by installing the temporary traffic signal within a reasonable time thereafter. Id. at 281. We granted the City s petition for review.[2] 49 Tex. Sup. Ct. J. 259 (Jan. 20, 2006).

II

Discussion

The Tort Claims Act

The Texas Tort Claims Act (TTCA) waives immunity for personal injuries and deaths proximately caused by a condition or use of personal or real property if a governmental unit would, were it a private person, be liable. Tex. Civ. Prac. & Rem. Code 101.021(2). This use-of-property waiver, with which we have long grappled,[3] is an exception to the general rule of governmental immunity. Today we construe an exception to the exception: the waiver s non-application to claims arising from the absence, condition, or malfunction of a traffic or road sign, signal or warning device unless the absence, condition, or malfunction is not corrected by the responsible governmental unit within a reasonable time after notice. Id. 101.060(a)(2). Specifically, we must decide whether and under what conditions the absence of a traffic light may give rise to a governmental unit s liability under the TTCA.

Section 101.060, entitled Traffic and Road Control Devices, identifies three exceptions to the TTCA s waiver of immunity provisions:

(a) This chapter does not apply to a claim arising from:

(1) the failure of a governmental unit initially to place a traffic or road sign, signal, or warning device if the failure is a result of discretionary action of the governmental unit;

(2) the absence, condition, or malfunction of a traffic or road sign, signal, or warning device unless the absence, condition, or malfunction is not corrected by the responsible governmental unit within a reasonable time after notice; or

(3) the removal or destruction of a traffic or road sign, signal, or warning device by a third person unless the governmental unit fails to correct the removal or destruction within a reasonable time after actual notice.

Id. 101.060(a)(1)-(3) (emphasis added); see also State v. Gonzalez, 82 S.W.3d 322, 326 327 (Tex. 2002).

Sipes agrees that the City s initial decision to install a traffic signal was discretionary, but contends that, once the City made that decision, it faced liability for negligently implementing it. The court of appeals agreed. 146 S.W.3d at 279-81. That court noted that governmental units may be liable for negligent implementation of discretionary acts, and that [s]ection 101.060 reiterates this principle within the specific context of traffic control devices. Id. at 279-80. The court held that, once the city makes the decision to install a traffic control device, it has no discretion but to do so within a reasonable time, and [i]f the traffic control device is not installed after the policy decision is made to do so, then it would constitute absence under section 101.060(a)(2). Id. at 280 (citations omitted). Thus, the court concluded that the Act waives immunity when the city exercises its discretion in deciding to install a traffic control device but does not implement that decision within a reasonable amount of time. Id. (citing Tex. Civ. Prac. & Rem. Code 101.060(a)(2); City of Fort Worth v. Robles, 51 S.W.3d 436, 442 (Tex. App. Fort Worth 2001, pet. denied)).

We have not previously construed the term absence as used in subsection 101.060(a)(2). But see Gonzalez, 82 S.W.3d at 325 (using the phrase the signs absence to describe two stop signs that were removed after being in place); Alvarado v. City of Lubbock, 685 S.W.2d 646, 649 (Tex. 1985) (holding that a speed-limit sign posting the wrong speed limit constituted the absence of or condition of a traffic sign ).[4] As noted by the parties, our courts of appeals have differed in their interpretation of the term. At least one has determined that an absence refers to a sign or warning device that was in place at one time but was subsequently removed, see Tex. Dep t of Transp. v. Sanchez, 75 S.W.3d 24, 27 (Tex. App. San Antonio 2001, pet. denied) (quoting City of San Antonio v. Schneider, 787 S.W.2d 459, 468 (Tex.App. San Antonio 1990, writ denied)), while others have held that an absence occurs when a governmental unit exercises its discretion in deciding to install a traffic signal, but then fails to implement the decision within a reasonable time. See, e.g., Zambory v. City of Dallas, 838 S.W.2d 580, 583 (Tex. App. Dallas 1992, writ denied); see also Tex. Dep t of Transp. v. Bederka, 36 S.W.3d 266, 272 (Tex. App. Beaumont 2001, no pet.) ( [T]he non-discretionary implementation of the policy decision to install a different device . . . would be the absence of a particular traffic device under 101.060(a)(2) . . . . ); Reyes v. City of Houston, 4 S.W.3d 459, 462 (Tex. App. Houston [1st Dist.] 1999, pet. denied). As one court summarized: Courts of appeals have interpreted subsection 101.060(a)(2) to mean that immunity is waived for the absence of a warning sign . . . if the absence is due to the disappearance of an installed sign or the failure to install a sign [within a reasonable time] after the governing body authorized its installation. Ihlo v. State, 71 S.W.3d 494, 496 (Tex. App. Austin 2002, no pet.)(emphasis added)(employing both definitions to conclude that warning signs were not absent); see also Robles, 51 S.W.3d at 442 (utilizing both definitions to conclude that stop signs were not absent); Sanchez, 75 S.W.3d at 27 (applying first definition but recognizing the second); 19 William V. Dorsaneo III, Texas Litigation Guide 293.12[9][b][ii] (2005) (noting dual definition).

Accordingly, we must decide whether an absence, as used in (a)(2), requires a prior presence, or whether it includes the failure to install a traffic signal within a reasonable time after the decision is made to do so. We begin by examining the statutory context within which absence is placed. See Liberty Mut. Ins. Co. v. Garrison Contractors, Inc., 966 S.W.2d 482, 484 (Tex. 1998) (stating that a court must . . . view a statute s terms in context ). Subsection (a)(1), which immediately precedes (a)(2), retains immunity for the failure of a governmental unit initially to place a traffic or road sign, signal, or warning device if the failure is a result of discretionary action of the governmental unit. Tex. Civ. Prac. & Rem. Code 101.060(a)(1) (emphasis added). In subsection (a)(1), therefore, the Legislature expressed its intent that a governmental unit remains immune for an initial placement decision, provided it was the result of a discretionary act. If (a)(2) s absence included not just signs that were previously present, but those that had not yet been placed, it is difficult to imagine what would remain of (a)(1) s immunity retention. See Robles, 51 S.W.3d at 441 ( To hold that subsection (a)(2) s absence requirement also applied to traffic signals that had not been installed would nullify subsection (a)(1)[, which] . . . exempts a governmental unit from liability for the failure to initially install a traffic sign or signal as long as its failure . . . was the result of a discretionary action. ).

Indeed, characterizing a failure to initially install a traffic signal as an absence would contravene the Legislature s intent to immunize governmental units from claims based on the failure to initially place signals, provided such failures were the result of discretionary acts. When the City first installs a traffic signal is no less discretionary than whether to install it. The timing of implementation could be affected by the governmental unit s balancing of funding priorities, scheduling, traffic patterns, or other matters; to impose liability for the failure to timely implement a discretionary decision could penalize a governmental unit for engaging in prudent planning and paralyze it from making safety-related decisions. This sort of planning and execution is precisely the type of discretionary act for which the TTCA retains immunity. See Tex. Dep t of Transp. v. Garza, 70 S.W.3d 802, 807 (Tex. 2002) (noting that Legislature intended only a limited waiver of immunity in the TTCA). Thus, when subsections (a)(1) and (a)(2) are read together, (a)(2) logically applies only to those traffic signals that have already been installed.

We used similar reasoning in interpreting the term condition, one of the trilogy of words ( absence, condition, or malfunction ) used in (a)(2) to describe situations in which a governmental unit may face liability for claims involving traffic signals. In Gonzalez, vandals had removed stop signs at an intersection, and a fatal collision occurred soon thereafter. Gonzalez, 82 S.W.3d at 326-27. We considered whether the vandals theft of the stop signs was a condition of the signs (and therefore governed by (a)(2)) or a removal or destruction of the signs (and thus covered by (a)(3)). Id. at 328-30. We concluded it was the latter:

Gonzalez cannot characterize TxDOT s failure to make certain discretionary decisions affecting a stop sign s susceptibility to repeated vandalism as a failure to correct the sign s condition under subsection (a)(2) in order to sue under the Act. . . . To do so would contradict the Legislature s express intent to impose liability in cases involving a third person vandalizing a traffic sign only if the State fails to correct the vandalized sign after receiving actual notice [pursuant to (a)(3)].

Id. at 329.

Both subsections (a)(2) and (a)(3) refer, among other things, to the government s failure to replace a missing traffic device. In (a)(3), the statute provides a safe harbor if the government corrects a traffic device s removal; the safe harbor is provided in (a)(2), if the government corrects the absence of the device. Compare Tex. Civ. Prac. & Rem. Code 101.060(a)(2) with (a)(3). Logically, correct in (a)(3) must be predicated on the prior existence of a traffic device, because it modifies that device s removal, and a failure to correct waives immunity only after the governmental unit has been put on actual notice, presumably of a change in the device s status. So, at least with respect to (a)(3), the Legislature used the word correct to refer to replacing a device that has been removed. The question here is whether correct in (a)(2) similarly requires replacement of a preexisting device after its disappearance. We hold that it must. With respect to the cause of a traffic device s non-presence, there is only one material difference between the subsections. Subsection (a)(3) refers to a third person s intervention, whereas the cause in (a)(2) is not so qualified. Both subsections, however, reflect the Legislature s intent to waive a governmental unit s immunity only if it has been placed on notice of some change in status and fails to correct it within a reasonable time. A traffic signal that never existed as in this case cannot serve to put a governmental unit on notice of something needing correction. Both removal and absence, therefore, presuppose a preexisting device.

Subsection (a)(2) s other terms reinforce this conclusion. We have noted that the Legislature intended liability for a condition to attach only after a traffic signal is in place, as the term implies not just any condition, but only something wrong with the traffic sign or signal such that it would require correction . . . after notice. Garza, 70 S.W.3d at 807 (noting [t]he Legislature s placement of condition in between absence and malfunction, coupled with the language that recants section 101.060(a)(2) s retention of immunity when the condition is not corrected after notice ). Similarly, the Legislature s use of the term malfunction further evidences that (a)(2) was intended to apply only to existing traffic signals, as a signal must be in place before it can malfunction and require correction. See Robles, 51 S.W.3d at 442 ( A traffic . . . signal cannot malfunction if it has never been installed. ).

This interpretation comports with (a)(2) s waiver of immunity only for governmental units that fail to correct problems within a reasonable time after notice. Tex. Civ. Prac. & Rem. Code 101.060(a)(2). This language requires the State to maintain traffic signs in a condition sufficient to perform their intended traffic-control function. Gonzalez, 82 S.W.3d at 327 (emphasis added) (construing (a)(2)). Maintenance involves ongoing caretaking; traffic signs that have not yet been installed cannot be maintained.

It is undisputed that the City s initial decision to install the traffic signal was discretionary. Unquestionably, therefore, the City would have retained immunity had it decided not to install the traffic signal. See Tex. Civ. Prac. & Rem. Code 101.060(a)(1). It makes little sense to waive immunity for a governmental unit that decides to install a signal and is endeavoring to do so. Considering the plain meaning of the statutory terms, the interplay between subsections (a)(1), (a)(2), and (a)(3), and the context within which absence is used in subsection (a)(2), we conclude that an absence requires a prior presence; that is, it does not apply to a governmental unit s initial installation of, or failure to initially install, a traffic signal. To the extent other opinions have held differently, we disapprove them.[5]

III

Conclusion

We reverse in part the court of appeals judgment and render judgment dismissing the case for lack of subject matter jurisdiction. See Tex. R. App. P. 60.2(c).

______________________________

Wallace B. Jefferson

Chief Justice

OPINION DELIVERED: June 16, 2006
[1] The City also contended that Trevino did not give statutorily required notice and that the City s placement of traffic control devices to the left of the intersection (which Sipes alleged obstructed her vision) did not proximately cause the accident. 146 S.W.3d at 277, 281-84.

[2] Sipes did not file a petition for review.

[3] See, e.g., Tex. Dept. of Criminal Justice v. Miller, 51 S.W.3d 583, 589-93 (Tex. 2001) (Hecht, J., concurring); id. at 593 95 (Enoch, J., dissenting); Univ. of Tex. Med. Branch v. York, 871 S.W.2d 175, 177 (Tex. 1994); Lowe v. Tex. Tech Univ., 540 S.W.2d 297, 301-03 (Tex. 1976) (Greenhill, C.J., concurring)

[4] In Tex. Dep t of Transp. v. Garza, 70 S.W.3d 802, 807 (Tex. 2002), we described the sign at issue in Alvarado as present[ing] a condition within the meaning of the . . . Act.

[5] See Ihlo v. State, 71 S.W.3d 494, 495-96 (Tex. App. Austin 2002, no pet.); Tex. Dep t of Transp. v. Bederka, 36 S.W.3d 266, 271-72 (Tex. App. Beaumont 2001, no pet.); City of Fort Worth v. Robles, 51 S.W.3d 436, 443 (Tex. App. Fort Worth 2001, pet. denied); Reyes v. City of Houston, 4 S.W.3d 459, 462 (Tex. App. Houston [1st Dist.] 1999, pet. denied); Zambory v. City of Dallas, 838 S.W.2d 580, 583 (Tex. App. Dallas 1992, writ denied).

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Stautory Law on Damages in Texas Civil Litigation–Texas Insurance Defense Attorneys

TEXAS CIVIL PRACTICE AND REMEDIES CODE


TITLE 2. TRIAL, JUDGMENT, AND APPEAL


SUBTITLE C. JUDGMENTS


CHAPTER 41. DAMAGES


This section was amended by the 84th Legislature. Pending publication of the current statutes, see S.B. 735, 84th Legislature, Regular Session, for amendments affecting this section.


Sec. 41.001. DEFINITIONS. In this chapter:

(1) “Claimant” means a party, including a plaintiff, counterclaimant, cross-claimant, or third-party plaintiff, seeking recovery of damages. In a cause of action in which a party seeks recovery of damages related to injury to another person, damage to the property of another person, death of another person, or other harm to another person, “claimant” includes both that other person and the party seeking recovery of damages.

(2) “Clear and convincing” means the measure or degree of proof that will produce in the mind of the trier of fact a firm belief or conviction as to the truth of the allegations sought to be established.

(3) “Defendant” means a party, including a counterdefendant, cross-defendant, or third-party defendant, from whom a claimant seeks relief.

(4) “Economic damages” means compensatory damages intended to compensate a claimant for actual economic or pecuniary loss; the term does not include exemplary damages or noneconomic damages.

(5) “Exemplary damages” means any damages awarded as a penalty or by way of punishment but not for compensatory purposes. Exemplary damages are neither economic nor noneconomic damages. ‘Exemplary damages’ includes punitive damages.

(6) “Fraud” means fraud other than constructive fraud.

(7) “Malice” means a specific intent by the defendant to cause substantial injury or harm to the claimant.

(8) “Compensatory damages” means economic and noneconomic damages. The term does not include exemplary damages.

(9) “Future damages” means damages that are incurred after the date of the judgment. Future damages do not include exemplary damages.

(10) “Future loss of earnings” means a pecuniary loss incurred after the date of the judgment, including:

(A) loss of income, wages, or earning capacity; and

(B) loss of inheritance.

(11) “Gross negligence” means an act or omission:

(A) which when viewed objectively from the standpoint of the actor at the time of its occurrence involves an extreme degree of risk, considering the probability and magnitude of the potential harm to others; and

(B) of which the actor has actual, subjective awareness of the risk involved, but nevertheless proceeds with conscious indifference to the rights, safety, or welfare of others.

(12) “Noneconomic damages” means damages awarded for the purpose of compensating a claimant for physical pain and suffering, mental or emotional pain or anguish, loss of consortium, disfigurement, physical impairment, loss of companionship and society, inconvenience, loss of enjoyment of life, injury to reputation, and all other nonpecuniary losses of any kind other than exemplary damages.

(13) “Periodic payments” means the payment of money or its equivalent to the recipient of future damages at defined intervals.

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Amended by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 204, Sec. 13.02, eff. Sept. 1, 2003.

Sec. 41.002. APPLICABILITY. (a) This chapter applies to any action in which a claimant seeks damages relating to a cause of action.

(b) This chapter establishes the maximum damages that may be awarded in an action subject to this chapter, including an action for which damages are awarded under another law of this state. This chapter does not apply to the extent another law establishes a lower maximum amount of damages for a particular claim.

(c) Except as provided by Subsections (b) and (d), in an action to which this chapter applies, the provisions of this chapter prevail over all other law to the extent of any conflict.

(d) Notwithstanding any provision to the contrary, this chapter does not apply to:

(1) Section 15.21, Business & Commerce Code (Texas Free Enterprise and Antitrust Act of 1983);

(2) an action brought under the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code) except as specifically provided in Section 17.50 of that Act;

(3) an action brought under Chapter 36, Human Resources Code; or

(4) an action brought under Chapter 21, Insurance Code.

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Amended by Acts 1989, 71st Leg., ch. 380, Sec. 5, eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 1129, Sec. 16, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 260, Sec. 9, eff. May 30, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 4.01, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 204, Sec. 13.03, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 806 (S.B. 563), Sec. 18, eff. September 1, 2005.

Sec. 41.003. STANDARDS FOR RECOVERY OF EXEMPLARY DAMAGES. (a) Except as provided by Subsection (c), exemplary damages may be awarded only if the claimant proves by clear and convincing evidence that the harm with respect to which the claimant seeks recovery of exemplary damages results from:

(1) fraud;

(2) malice; or

(3) gross negligence.

(b) The claimant must prove by clear and convincing evidence the elements of exemplary damages as provided by this section. This burden of proof may not be shifted to the defendant or satisfied by evidence of ordinary negligence, bad faith, or a deceptive trade practice.

(c) If the claimant relies on a statute establishing a cause of action and authorizing exemplary damages in specified circumstances or in conjunction with a specified culpable mental state, exemplary damages may be awarded only if the claimant proves by clear and convincing evidence that the damages result from the specified circumstances or culpable mental state.

(d) Exemplary damages may be awarded only if the jury was unanimous in regard to finding liability for and the amount of exemplary damages.

(e) In all cases where the issue of exemplary damages is submitted to the jury, the following instruction shall be included in the charge of the court:

“You are instructed that, in order for you to find exemplary damages, your answer to the question regarding the amount of such damages must be unanimous.”

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Amended by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 204, Sec. 13.04, eff. Sept. 1, 2003.

Sec. 41.004. FACTORS PRECLUDING RECOVERY. (a) Except as provided by Subsection (b), exemplary damages may be awarded only if damages other than nominal damages are awarded.

(b) Exemplary damages may not be awarded to a claimant who elects to have his recovery multiplied under another statute.

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Amended by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 204, Sec. 13.05, eff. Sept. 1, 2003.

Sec. 41.005. HARM RESULTING FROM CRIMINAL ACT. (a) In an action arising from harm resulting from an assault, theft, or other criminal act, a court may not award exemplary damages against a defendant because of the criminal act of another.

(b) The exemption provided by Subsection (a) does not apply if:

(1) the criminal act was committed by an employee of the defendant;

(2) the defendant is criminally responsible as a party to the criminal act under the provisions of Chapter 7, Penal Code;

(3) the criminal act occurred at a location where, at the time of the criminal act, the defendant was maintaining a common nuisance under the provisions of Chapter 125, Civil Practice and Remedies Code, and had not made reasonable attempts to abate the nuisance; or

(4) the criminal act resulted from the defendant’s intentional or knowing violation of a statutory duty under Subchapter D, Chapter 92, Property Code, and the criminal act occurred after the statutory deadline for compliance with that duty.

(c) In an action arising out of a criminal act committed by an employee, the employer may be liable for punitive damages but only if:

(1) the principal authorized the doing and the manner of the act;

(2) the agent was unfit and the principal acted with malice in employing or retaining him;

(3) the agent was employed in a managerial capacity and was acting in the scope of employment; or

(4) the employer or a manager of the employer ratified or approved the act.

Amended by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.006. AWARD SPECIFIC TO DEFENDANT. In any action in which there are two or more defendants, an award of exemplary damages must be specific as to a defendant, and each defendant is liable only for the amount of the award made against that defendant.

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Renumbered from Civil Practice & Remedies Code Sec. 41.005 by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.007. PREJUDGMENT INTEREST. Prejudgment interest may not be assessed or recovered on an award of exemplary damages.

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Renumbered from Civil Practice & Remedies Code Sec. 41.006 by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.008. LIMITATION ON AMOUNT OF RECOVERY. (a) In an action in which a claimant seeks recovery of damages, the trier of fact shall determine the amount of economic damages separately from the amount of other compensatory damages.

(b) Exemplary damages awarded against a defendant may not exceed an amount equal to the greater of:

(1)(A) two times the amount of economic damages; plus

(B) an amount equal to any noneconomic damages found by the jury, not to exceed $750,000; or

(2) $200,000.

(c) This section does not apply to a cause of action against a defendant from whom a plaintiff seeks recovery of exemplary damages based on conduct described as a felony in the following sections of the Penal Code if, except for Sections 49.07 and 49.08, the conduct was committed knowingly or intentionally:

(1) Section 19.02 (murder);

(2) Section 19.03 (capital murder);

(3) Section 20.04 (aggravated kidnapping);

(4) Section 22.02 (aggravated assault);

(5) Section 22.011 (sexual assault);

(6) Section 22.021 (aggravated sexual assault);

(7) Section 22.04 (injury to a child, elderly individual, or disabled individual, but not if the conduct occurred while providing health care as defined by Section 74.001);

(8) Section 32.21 (forgery);

(9) Section 32.43 (commercial bribery);

(10) Section 32.45 (misapplication of fiduciary property or property of financial institution);

(11) Section 32.46 (securing execution of document by deception);

(12) Section 32.47 (fraudulent destruction, removal, or concealment of writing);

(13) Chapter 31 (theft) the punishment level for which is a felony of the third degree or higher;

(14) Section 49.07 (intoxication assault);

(15) Section 49.08 (intoxication manslaughter);

(16) Section 21.02 (continuous sexual abuse of young child or children); or

(17) Chapter 20A (trafficking of persons).

(d) In this section, “intentionally” and “knowingly” have the same meanings assigned those terms in Sections 6.03(a) and (b), Penal Code.

(e) The provisions of this section may not be made known to a jury by any means, including voir dire, introduction into evidence, argument, or instruction.

(f) This section does not apply to a cause of action for damages arising from the manufacture of methamphetamine as described by Chapter 99.

Added by Acts 1987, 70th Leg., 1st C.S., ch. 2, Sec. 2.12, eff. Sept. 2, 1987. Renumbered from Civil Practice & Remedies Code Sec. 41.007 and amended by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 643, Sec. 3, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 204, Sec. 13.06, eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 593 (H.B. 8), Sec. 3.03, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch. 309 (H.B. 533), Sec. 2, eff. June 19, 2009.

Sec. 41.009. BIFURCATED TRIAL. (a) On motion by a defendant, the court shall provide for a bifurcated trial under this section. A motion under this subsection shall be made prior to voir dire examination of the jury or at a time specified by a pretrial court order issued under Rule 166, Texas Rules of Civil Procedure.

(b) In an action with more than one defendant, the court shall provide for a bifurcated trial on motion of any defendant.

(c) In the first phase of a bifurcated trial, the trier of fact shall determine:

(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.

Amended by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.010. CONSIDERATIONS IN MAKING AWARD. (a) Before making an award of exemplary damages, the trier of fact shall consider the definition and purposes of exemplary damages as provided by Section 41.001.

(b) Subject to Section 41.008, the determination of whether to award exemplary damages and the amount of exemplary damages to be awarded is within the discretion of the trier of fact.

Added by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 204, Sec. 13.07, eff. Sept. 1, 2003.

Sec. 41.0105. EVIDENCE RELATING TO AMOUNT OF ECONOMIC DAMAGES. In addition to any other limitation under law, recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant.

Added by Acts 2003, 78th Leg., ch. 204, Sec. 13.08, eff. Sept. 1, 2003.

Sec. 41.011. EVIDENCE RELATING TO AMOUNT OF EXEMPLARY DAMAGES. (a) In determining the amount of exemplary damages, the trier of fact shall consider evidence, if any, relating to:

(1) the nature of the wrong;

(2) the character of the conduct involved;

(3) the degree of culpability of the wrongdoer;

(4) the situation and sensibilities of the parties concerned;

(5) the extent to which such conduct offends a public sense of justice and propriety; and

(6) the net worth of the defendant.

(b) Evidence that is relevant only to the amount of exemplary damages that may be awarded is not admissible during the first phase of a bifurcated trial.

Added by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.012. JURY INSTRUCTIONS. In a trial to a jury, the court shall instruct the jury with regard to Sections 41.001, 41.003, 41.010, and 41.011.

Added by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.013. JUDICIAL REVIEW OF AWARD. (a) Except as provided for in Subsection (b), an appellate court that reviews the evidence with respect to a finding by a trier of fact concerning liability for exemplary damages or with respect to the amount of exemplary damages awarded shall state, in a written opinion, the court’s reasons for upholding or disturbing the finding or award. The written opinion shall address the evidence or lack of evidence with specificity, as it relates to the liability for or amount of exemplary damages, in light of the requirements of this chapter.

(b) This section does not apply to the supreme court with respect to its consideration of an application for writ of error.

Added by Acts 1995, 74th Leg., ch. 19, Sec. 1, eff. Sept. 1, 1995.

Sec. 41.014. INTEREST ON DAMAGES SUBJECT TO MEDICARE SUBROGATION. (a) Subject to this section, postjudgment interest does not accrue on the unpaid balance of an award of damages to a plaintiff attributable to any portion of the award to which the United States has a subrogation right under 42 U.S.C. Section 1395y(b)(2)(B) before the defendant receives a recovery demand letter issued by the Centers for Medicare and Medicaid Services or a designated contractor under 42 C.F.R. Section 411.22.

(b) Postjudgment interest under this section does not accrue if the defendant pays the unpaid balance before the 31st day after the date the defendant receives the recovery demand letter.

(c) If the defendant appeals the award of damages, this section does not apply.

(d) This section does not prevent the accrual of postjudgment interest on any portion of an award to which the United States does not have a subrogation right under 42 U.S.C. Section 1395y(b)(2)(B).

Added by Acts 2013, 83rd Leg., R.S., Ch. 870 (H.B. 658), Sec. 1, eff. September 1, 2013.

 

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

Martindale AVtexas[2]

Texas Contract Law and It’s Basic Elements–Fort Worth, Texas Contracts Law Attorneys


HOW TO FORM A CONTRACT IN TEXAS

 As a general rule, parties form a binding contract when the following elements are
present:  (1) an offer, (2) an acceptance in strict compliance with the terms of the offer, (3) a meeting of the
minds, (4) each party’s consent to the terms, and (5) execution and delivery of the contract with the intent
that it be mutual and binding.  Id. at 555-56.

The material terms of a contract must be agreed upon before a court can enforce a contract. See Williams v.
Unifund CCR Partners Assignee of Citibank, 264 S.W.3d 231, 235 (Tex. App.-Houston [1st. Dist] 2008, no
pet.); see also T.O. Stanley Boot Co. v. Bank of El Paso, 847 S.W.2d 218, 221 (Tex. 1992). The interest rate
is a material term. See Williams, 264 S.W.3d at 235; T.O. Stanley Boot Co., 847 S.W.2d at 221.

“Meeting of the minds” describes the mutual understanding and assent to the agreement regarding the
subject matter and the essential terms of the contract.  Weynand v. Weynand, 990 S.W.2d 843, 846 (Tex.
App.- Dallas 1999, pet. denied).  Mutual assent, concerning material, essential terms, is a prerequisite to
formation of a binding, enforceable contract.  T.O. Stanley Boot Co. v. Bank of El Paso, 847 S.W.2d 218, 221
(Tex. 1992).  In determining the existence of an oral contract, the court looks to the communications between
the parties and to the acts and circumstances surrounding these communications.  Palestine Water Well
Servs., Inc. v. Vance Sand & Rock, Inc., 188 S.W.3d 321, 325 (Tex. App.- Tyler 2006, no pet.).

The elements required for establishing the existence of written and oral contracts are usually the same.

See Wal-Mart Stores, Inc. v. Lopez, 93 S.W.3d 548, 555 (Tex. App.- Houston [14th Dist.] 2002, no pet.).

SOME TEXAS APPELLATE CASE LAW

08-0586
PATRICK REINHARDT v. JOE WALKER; from Brazoria County; 14th district (14‑07‑00304‑CV, ___ SW3d
___, 06‑12‑08)(Proof of Agreement, limitations, damages, reasonable cost of repairs.)

08-0609
BRENDA MITCHELL v. BETTY DOMINGO; from Lubbock County; 7th district (07‑07‑00038‑CV, 257 SW3d
34, 05‑21‑08, pet denied Dec 2008)(contract formation)(we conclude she presented more than a scintilla of
evidence to raise a genuine issue of material fact on whether the parties entered into a valid oral contract
and whether Mitchell breached the contract, thereby defeating Mitchell’s no-evidence summary judgment.
Simultaneously, accepting as true the evidence favorable to Domingo and indulging every reasonable
inference in her favor, we conclude the summary judgment evidence raised a genuine issue of material fact
defeating Mitchell’s entitlement to summary judgment as a matter of law. We hold that the summary judgment
in favor of Mitchell based on Domingo’s breach of contract claim was improvidently granted. Resultantly, we
sustain issues one and two.
Accordingly, the trial court’s judgment is reversed and the cause is remanded to the trial court for further
proceedings.

OPINION

Presenting two issues, Appellant, Betty Domingo, challenges the trial court’s order granting summary
judgment in favor of Appellee, Brenda Mitchell. Specifically, by her first issue, she maintains the trial court
erred in granting Mitchell’s no-evidence summary judgment because she presented more than a scintilla of
competent evidence in support of every element of her breach of contract claim. By issue two, she contends
the trial court erred in granting Mitchell’s traditional motion for summary judgment because genuine issues of
material fact exist. We reverse and remand.

Background Facts

According to the summary judgment evidence, beginning in 2004, Domingo and Mitchell, who were co-
workers and friends, played the Texas Lottery on numerous occasions. Their arrangement included an
agreement to pool their money to purchase tickets and split all winnings equally. At times, Mitchell would
purchase the tickets without requiring advance payment from Domingo and Domingo would promptly
reimburse Mitchell, win or lose.

On March 9, 2006, Cindy Skidmore sent an e-mail to Mitchell asking if she was interested in joining a lottery
group. After enlisting a select group of friends and co-workers, including Mitchell, Skidmore formed LGroup,
a Texas Limited Partnership, for the purpose of pooling money to play the lottery. On March 23rd, she sent a
follow-up e-mail to members of the group notifying them of a meeting on March 30th at a local restaurant to
pay and select numbers for the April 2006 drawings. The e-mail also provided, “[i]f there is someone else you
want to invite (& you feel pretty sure they won’t drop out) let me know.” Mitchell did not ask Skidmore if
Domingo could participate in the April 2006 drawings.

Domingo alleges that sometime after the March 23rd e-mail, Mitchell invited her and Cindy Ruff, another co-
worker, to participate in the lottery group for April 2006, specifically, Lotto Texas and Mega Millions. Ruff
declined the offer due to insufficient funds. When Domingo inquired about how much her contribution would
be, Mitchell offered to cover for her and be reimbursed at a later time.

On March 30th, Mitchell and other members of the group met at a restaurant to pay their share for the April
2006 tickets and contribute their numbers. Domingo was not present at this meeting. It was determined that
each member of the group owed $17. Mitchell paid her contribution, but did not contribute for Domingo’s
share. According to Mitchell’s deposition testimony, she did not have enough money with her to pay for her
share and also advance $17 for Domingo to participate. Footnote

On April 29, 2006, one of the tickets purchased by the group won. After choosing the cash value option, the
winnings totaled $20,925,315.23. Domingo’s exclusion from a share of the winnings eventually prompted her
to consult an attorney because Mitchell had told her she would cover her share of the tickets. She filed suit
against Mitchell and the LGroup for breach of contract and also alleged violations of the Texas Revised
Partnership Act. Footnote   Mitchell filed a combination no-evidence and traditional motion for summary
judgment and without specifying a ground, the trial court granted summary judgment in favor of Mitchell.

By her no-evidence motion, Mitchell alleged there was no evidence of a valid contract because:

(1) she never made a valid offer to Domingo;

(2) Domingo never tendered a valid acceptance;

(3) she and Domingo never reached a “meeting of the minds” regarding the essential terms of the contract;
and

(4) Domingo never tendered sufficient consideration.

Domingo responded to the no-evidence motion by asserting there was sufficient evidence of an offer,
acceptance, meeting of the minds, and consideration to defeat the motion.

By her traditional motion, Mitchell alleged she was entitled to summary judgment as a matter of law on the
breach of contract claim because Domingo did not present evidence of a valid, enforceable contract.
Specifically, she contended the summary judgment evidence disproved:

(1) she made a valid offer to Domingo;

(2) Domingo tendered a valid acceptance; and

(3) they reached a “meeting of the minds.”

Mitchell also alleged that any oral agreement violated the Statue of Frauds because Domingo was seeking to
enforce a promise to answer for the debt of another. Domingo responded that Mitchell did not conclusively
establish the absence of a genuine issue of material fact regarding the elements of a contract. She also
asserted that the agreement was not a promise to answer for the debt of another and thus, did not violate
the Statute of Frauds.

By two issues, Domingo challenges the no-evidence and traditional summary judgment motions that resulted
in summary judgment being rendered against her. In reviewing the issues, we apply the following standards
of review.

No-Evidence Motion for Summary Judgment

In a no-evidence summary judgment motion, the movant contends that there is no evidence of one or more
essential elements of the claims for which the non-movant would bear the burden of proof at trial. Tex. R. Civ.
P. 166a(i). The trial court must grant the motion unless the non-movant produces competent summary
judgment evidence raising a genuine issue of material fact on the challenged elements. Id. See Hamilton v.
Wilson, __ S.W.3d __, No. 07-0164, 2008 WL 820717, at *1 (Tex. March 28, 2008); Morgan v. Anthony, 27 S.
W.3d 928, 929 (Tex. 2000). The non-moving party is “not required to marshal its proof; its response need
only point out evidence that raises a fact issue on the challenged elements.” Tex. R. Civ. P. 166a(i), Notes
and Comments (1997). We review the summary judgment evidence in the light most favorable to the party
against whom summary judgment was rendered, crediting evidence favorable to that party if reasonable
jurors could, and disregarding contrary evidence unless reasonable jurors could not. See Mack Trucks, Inc.
v. Tamez, 206 S.W.3d 572, 582 (Tex. 2006); City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex. 2005). See
also Merrell Dow Pharms., Inc. v. Havner, 953 S.W.2d 706, 711 (Tex. 1997).

Traditional Motion for Summary Judgment

In reviewing a traditional motion for summary judgment, this Court applies these well established rules:

1. The movant for summary judgment has the burden of showing that there is no genuine issue of material
fact and that it is entitled to judgment as a matter of law.

2. In deciding whether there is a disputed material fact issue precluding summary judgment, evidence
favorable to the non-movant will be taken as true.

3. Every reasonable inference must be indulged in favor of the non-movant and any doubts resolved in its
favor.

See American Tobacco Co., Inc. v. Grinnell, 951 S.W.2d 420, 425 (Tex. 1997), citing Nixon v. Mr. Property
Management, 690 S.W.2d 546, 548-49 (Tex. 1985).

For a party to prevail on a traditional motion for summary judgment, he must conclusively establish the
absence of any genuine question of material fact and that he is entitled to judgment as a matter of law. Tex.
R. Civ. P. 166a(c). Summary judgment is proper if the movant disproves at least one element of each of the
non-movant’s claims or establishes every element of an affirmative defense to each claim. American
Tobacco, 951 S.W.2d at 425; Randall’s Food Markets, Inc. v. Johnson, 891 S.W.2d 640, 644 (Tex. 1995).
Once the movant has established a right to summary judgment, the non-movant has the burden to respond
to the motion for summary judgment and present to the trial court any issues that would preclude summary
judgment. Casso v. Brand, 776 S.W.2d 551, 556 (Tex. 1989); City of Houston v. Clear Creek Basin Authority,
589 S.W.2d 671, 678 (Tex. 1979); Barbouti v. Hearst Corp., 927 S.W.2d 37, 64 (Tex.App.–Houston [1st
Dist.] 1996, writ denied). Issues that the non-movant contends preclude the granting of a summary judgment
must be expressly presented to the trial court by written answer or other written response to the motion and
not by mere reference to summary judgment evidence. McConnell v. Southside School Dist., 858 S.W.2d
337, 341 (Tex. 1993)

Where, as here, a party files a combination traditional and no-evidence motion for summary judgment, we
first review the trial court’s judgment under the more stringent “no-evidence” standard of Rule 166a(i). See
Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 600 (Tex. 2004); East Hill Marine, Inc. v. Rinker Boat Co., Inc.,
229 S.W.3d 813, 816 (Tex.App.–Fort Worth 2007, pet. denied). If the non-movant fails to produce more than
a scintilla of evidence under that burden, then we need not analyze whether the non-movant’s proof satisfied
the burden under a traditional summary judgment review pursuant to Rule 166a(c). Ridgway, 135 S.W.3d at
600.

I.        Analysis of Elements of a Contract

Domingo sued Mitchell for breach of contract. The basis for Mitchell’s no-evidence motion was that there
was no evidence of the elements of a valid contract between herself and Domingo. The burden then shifted
to Domingo to present more than a scintilla of evidence to raise a fact issue on whether the parties formed a
contract. The grounds for Mitchell’s traditional motion was that there was no disputed material fact issue
regarding the elements of offer, acceptance, and meeting of the minds, and there was no writing to indicate
the existence of an agreement, in violation of the Statute of Frauds.

A. Contract

The threshold question is whether Mitchell and Domingo entered into a contract. For a contract to exist,
there must be an offer, acceptance, and consideration. See Harco Energy, Inc. v. Re-Entry People, Inc., 23 S.
W.3d 389, 392 (Tex.App.–Amarillo 2000, no pet.). The existence of an oral contract may be proved by
circumstantial evidence as well as direct evidence. Harris v. Balderas, 27 S.W.3d 71, 77 (Tex.App.–San
Antonio 2000, pet. denied). In determining the existence of an oral contract, courts look at the
communications between the parties and the acts and circumstances surrounding those communications.
Palestine Water Well Services, Inc. v. Vance Sand and Rock, Inc., 188 S.W.3d 321, 325 (Tex.App.–Tyler
2006, no pet.). To determine whether there was an offer and acceptance, and therefore a “meeting of the
minds,” courts use an objective standard, considering what the parties did and said, not their subjective
states of mind. See Komet v. Graves, 40 S.W.3d 596, 601 (Tex.App.–San Antonio 2001, no pet.).

B. Breach of Contract

The elements of a breach of contract claim are (1) the existence of a valid contract; (2) performance or
tendered performance by the plaintiff; (3) breach by the defendant; and (4) damages sustained by the
plaintiff as a result of that breach. Southwell v. University of Incarnate Word, 974 S.W.351, 354-55 (Tex.App.–
San Antonio 1998, pet. denied).

C. Offer

To prove that an offer was made, a party must show (1) the offeror intended to make an offer, (2) the terms
of the offer were clear and definite, and (3) the offeror communicated the essential terms of the offer to the
offeree. KW Const. v. Stephens & Sons Concrete Contractors, Inc., 165 S.W.3d 874, 883 (Tex.App.–
Texarkana 2005, pet. denied).

D. Acceptance

An acceptance must be identical to the offer; otherwise, there is no binding contract. Long Trusts v. Griffin,
144 S.W.3d 99, 111-12 (Tex.App.–Texarkana 2004, pet. denied).

E. Meeting of the Minds

A “meeting of the minds” is not an independent element of a valid contract. It is merely a mutuality subpart of
the offer and acceptance elements. A “meeting of the minds” is a mutual understanding and assent to the
expression of the parties’ agreement. See Weynand v. Weynand, 990 S.W.2d 843, 846 (Tex.App.–Dallas
1999, pet. denied). If evidence of the parties’ mutual agreement consists of their conduct and course of
dealing with one another, their mutual agreement may be inferred from the circumstances, in which case the
contract is “implied” as opposed to “express.” Double Diamond, Inc. v. Hilco Elec. Co-op., Inc., 127 S.W.3d
260, 267 (Tex.App.–Waco 2003, no pet.). An implied contract involves an inference from circumstantial
evidence and is a question of fact. Id.

F. Consideration

A contract must be based on valid consideration. See Texas Gas Utilities Co. v. Barrett, 460 S.W.2d 409,
412 (Tex. 1970). Consideration is a bargained for exchange of promises that consists of benefits and
detriments to the contracting parties. Roark v. Stallworth Oil & Gas, Inc., 813 S.W.2d 492, 496 (Tex. 1991). “It
is quite elementary that the promise of one party is a valid consideration for the promise of the other party.”
See Texas Farm Bureau Cotton Ass’n v. Stovall, 113 Tex. 273, 253 S.W. 1101, 1105 (1923). A contract that
lacks consideration lacks mutuality of obligation and is unenforceable. Fed. Sign v. Tex. So. Univ., 951 S.W.
2d 401, 409 (Tex. 1997); Belew v. Rector, 202 S.W.3d 849, 854 n.4 (Tex.App.–Eastland 2006, no pet.).
Mutual promissory obligations by the parties to the agreement furnishes sufficient consideration to constitute
a binding contract. Iacono v. Lyons, 16 S.W.3d 92, 94 (Tex.App.–Houston [1st Dist.] 2000, no pet.).

II. Analysis of Elements of the Contract as Between Mitchell and Domingo

Mitchell alleges she did not make an offer to Domingo, but if she did, some of the material terms of the offer
were lacking, making the contract invalid. She argues that price had not been agreed to and that Domingo
failed to submit numbers for the drawings, which was an essential element of the agreement. In response,
Domingo asserts that a reasonable price can be implied. She also asserts that submitting numbers was not
an essential term of the agreement. We agree with Domingo.

When all other elements of a contract have been met, a court may imply a reasonable price. See Buxani v.
Nussbaum, 940 S.W.2d 350, 353 (Tex.App.–San Antonio 1997, no writ), citing Bendalin v. Delgado, 406 S.W.
2d 897, 900 (Tex. 1966). According to Domingo’s affidavit, she was an experienced lottery player and
estimated that playing Lotto Texas and Mega Millions for the month of April 2006 would have cost
approximately $20 to $25. According to the evidence, Mega Millions was played every Tuesday and Friday
and Lotto Texas was played every Wednesday and Saturday. Looking at a calendar for April 2006 at $1 per
ticket, there were eight drawings for Mega Millions and nine drawings for Lotto Texas, for a total cost of $17
per participant. Thus, a reasonable price could have been implied.

Whether a term forms an essential element of a contract depends primarily upon the intent of the parties.
Potcinske v. McDonald Property Investments, Ltd., 245 S.W.3d 526, 531 (Tex.App.–Houston [1st Dist.] 2007,
no pet.), citing Neeley v. Bankers Trust Co. of Texas, 757 F.2d 621, 628 (5th Cir. 1985). The question is
whether the parties regarded the term as a vitally important ingredient of their bargain. Id.

Mitchell contends that submitting numbers was an essential term of the agreement and that without Domingo
complying, there was no valid contract. However, the evidence suggests that submitting numbers for the April
drawings was not an essential element of the contract. Copies of e-mails established that different numbers
were selected on the day after the LGroup met for dinner to decide on a price and submit numbers. Members
of the LGroup were also notified by e-mail and given a deadline of noon on April 1st in which to pick different
numbers. Thus, any numbers submitted at the meeting on March 30th were an uncertainty as they were
subject to being changed and thus, could not have been regarded by the parties as an essential element of
the contract.

According to Domingo, she and Mitchell frequently participated in lottery pools with co-workers. They
occasionally covered for each other and when Mitchell would advance Domingo’s share, Domingo would
promptly reimburse her. Shondra Stewart and Ellen Clemons, co-workers of Domingo and Mitchell, both gave
deposition testimony that Cindy Ruff, another co-worker, claimed she was present when Mitchell agreed to
cover for Domingo’s share of the April 2006 lottery tickets.

Mitchell testified that while she and Ruff were involved in a conversation about the lottery pool on the day
after the LGroup met to discuss the April drawings, Domingo entered and asked Mitchell “why didn’t you pay
my – did you pay my money?” Mitchell responded, “no, I didn’t have enough money last night.” Although she
did not tell Domingo she was excluded because she had not been invited to play with the LGroup, she did
testify that she did not cover for Domingo because she had not been invited to play for the April drawings.
Ruff testified that she recalled Domingo asking Mitchell why she did not cover her for the April drawings.

Domingo testified that she asked Mitchell “when do we need to pay our money for the April drawing?”
Mitchell then informed her that she did not put in for her because she did not have enough money to pay for
both of them. Mitchell added that the group was already set for April and instead invited Domingo to play for
the May 2006 drawings.

This summary judgment evidence, coupled with Mitchell and Domingo’s conduct and course of prior dealings
with one another, is sufficient to raise a genuine issue of material fact concerning the offer and acceptance
elements of the alleged contract between Mitchell and Domingo.

Regarding the element of consideration, the evidence shows that Mitchell agreed to advance Domingo’s
share of the lottery tickets and Domingo agreed to reimburse Mitchell. This exchange of promises is sufficient
consideration to create a binding contract. See Iacono, 16 S.W.3d at 94.

 

Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.

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