Heather Tenini Kuentz, Individually, as Personal Representative of the Estate of Robert Michael Kuentz, and as Next Friend of XXXXX XXXXXXX XXXXXX, a Minor, Larry Michael "Robert" Kuentz and Sandra Kuentz v. Cole Systems Group, Inc. D/B/A the Cole Group
541 S.W.3d 208
| Tex. App. | 2017Background
- In 2012 Mac Haik rehired salesman Keith Grimmett after Cole Systems Group (Cole), a pre-employment screening vendor, performed its standard $85 screening (interview, county criminal checks for counties where applicant lived/worked, drug test, SSN verification) and reported no criminal convictions.
- Three months after rehiring, Grimmett shot and killed sales manager Robert Kuentz; Grimmett later pleaded guilty to first-degree murder.
- Cole’s reports noted certain inconsistencies in Grimmett’s employment history and some prior terminations, but did not search Missouri family/civil court records or obtain employer records because Mac Haik did not request/pay for those expanded services.
- Mac Haik witnesses testified Cole’s contracted scope was limited to public criminal records, drug testing, SSN verification, and an interview; Mac Haik retained responsibility to verify/application inconsistencies and to request additional searches.
- Appellants (Kuentz’s family) sued Cole for negligence based on negligent undertaking theories and an asserted duty to disclose facts Cole actually knew; the trial court granted Cole traditional and no-evidence summary judgment, and the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Cole assumed Mac Haik’s duty to screen (Restatement §324A(b)) | Cole undertook the employer’s duty by contract/promotional promises and thus owed a duty to perform a thorough background check (including civil/family records, employer contacts). | Cole’s duty was limited to the specific, paid-for services (county criminal checks, interview, drug test, SSN verification); it did not agree to broader investigation. | No duty beyond contracted scope; summary judgment affirmed. |
| Whether Cole induced Mac Haik’s reliance (Restatement §324A(c)) | Cole’s marketing and website statements and Mac Haik staff testimony show Mac Haik relied on Cole to perform broader background investigation. | Mac Haik did not request/pay for extra services; reliance on broader services is unsupported and contradicted by the face of the report and Mac Haik testimony. | No evidence of reliance to expand duty; summary judgment affirmed. |
| Whether Cole owed a duty to disclose facts it actually knew (Golden Spread theory) | Even if Coleman’s scope was limited, Cole had a duty to disclose known facts suggesting danger (e.g., family-court protective orders, allegations of threats). | Cole reported criminal public records as agreed; it did not recommend hiring and had no duty to investigate or disclose family/civil records not within the contracted search. | Cole had no additional disclosure duty under Golden Spread here; no genuine fact issue. |
Key Cases Cited
- Torrington Co. v. Stutzman, 46 S.W.3d 829 (Tex. 2000) (negligent undertaking rule and limits of duty)
- Fort Bend County Drainage Dist. v. Sbrusch, 818 S.W.2d 392 (Tex. 1991) (adopting Restatement §324A negligent undertaking framework)
- Nabors Drilling U.S.A. v. Escoto, 288 S.W.3d 401 (Tex. 2009) (duty is a question of law; elements of negligence)
- Golden Spread Council, Inc. v. Akins, 926 S.W.2d 287 (Tex. 1996) (limited duty not to recommend when the recommender knows facts making candidate unfit)
- Wise v. Complete Staffing Servs., 56 S.W.3d 900 (Tex. App.—Texarkana 2001) (negligent undertaking may present fact issue when scope of agreed services is disputed)
- Guillory v. Seaton, 470 S.W.3d 237 (Tex. App.—Houston [1st Dist.] 2015) (promotional materials do not expand expressly agreed scope of services)
- Banzhaf v. ADT Sec. Sys. Southwest, Inc., 28 S.W.3d 180 (Tex. App.—Eastland 2000) (business identity does not impose duties beyond contracted services)
- Lowe’s Home Ctrs., Inc. v. GSW Marketing, Inc., 293 S.W.3d 283 (Tex. App.—Houston [14th Dist.] 2009) (section 324A does not expand the scope of an undertaking)
