Joseph Peine v. HIT Services L.P., Wood Group USA, Inc., John Wood Group PLC, Wood Group Power GP, LLC and Wood Group Management Services, Inc.
479 S.W.3d 445
| Tex. App. | 2015Background
- Peine was HIT Services’ CFO and secretary of Wood Group Power GP, LLC, with reporting to multiple supervisors.
- Kumar allegedly ordered Peine to inflate HIT Services’ profits by about $2.5 million and falsify records, which Peine refused as improper.
- Peine reported Kumar’s conduct to supervisors who sought to fix the accounting, including authorizing adjustments and a corrective end-of-year action.
- Peine subsequently disclosed confidential HIT Services documents to a Thomson Reuters reporter, admitting he sent the materials.
- An internal audit was initiated; Abby Yates, an in-house attorney, recommended Peine be placed on paid leave and that Kumar be removed from his accounting role during the investigation.
- Peine was terminated on September 16, 2009 for breaching confidentiality obligations; he sued alleging wrongful discharge under Sabine Pilot for refusing to commit an illegal act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Peine was terminated solely for refusing to commit an illegal act | Peine argues sole-cause liability under Sabine Pilot | Defendants contend there was a legitimate non-illegal-act reason (breach of confidentiality) | No; termination had a legitimate reason beyond refusal to act illegally |
| Whether the termination evidence shows direct evidence or circumstantial evidence of sole-cause | Peine claims direct evidence through internal communications | Record shows circumstantial evidence; speakers’ roles in firing are not shown | Evidence is circumstantial and does not raise a genuine issue on sole-cause |
Key Cases Cited
- Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985) (sets the sole-cause standard for illegal-act termination claims)
- Casarez v. K-G Pizza, 937 S.W.2d 444 (Tex. 1996) (discusses causation standards in workers’ compensation retaliation context)
- Winters v. Houston Chronicle Publ’g Co., 795 S.W.2d 723 (Tex. 1990) (public policy limits Sabine Pilot extensions; reporting illegal activity not protected under Sabine Pilot)
- Hawthorne v. Star Enterprise, Inc., 45 S.W.3d 757 (Tex. App.—Texarkana 2001) (distinguishes Hawthorne from Sabine Pilot extension; standing order context)
- Marx v. Electronic Data Sys. Corp., 418 S.W.3d 626 (Tex. App.—Amarillo 2009) (causal inferences in retaliation contexts; timing alone may be insufficient)
- Austin v. HealthTrust, Inc., 967 S.W.2d 400 (Tex. 1998) (limits recognized whistleblower protections; Sabine Pilot not extended by public policy)
