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Miksch v. Exxon Corp.
979 S.W.2d 700
Tex. App.
1998
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*1 were still when that feasible he learned bankruptcy reopened. ease had not Emily been MIKSCH, Appellant, Catherine Specifically, Judge claims Cohn Smith discov- ered bankruptcy that Goffs case had not EXXON CORPORATION d/b/a reopened

been at or about the same time he Company U.S.A., Appellee. did, and Glasper thus could have ordered the No. 14-96-01495-CV. ease to trial or not whether Cohn notified the words, court. In other Cohn concludes his Texas, Appeals Court of ability inaction on had no effect court’s (14th Dist.). Houston legal take remedial measures hence Sept. 1998. part notify efforts on his the court would however, position, Rehearing have been Cohn’s Dec. futile. Overruled 1998. presumes lawyer’s obligations that a Opinion Concurring Overruling 3.03(e) hindsight. Rule reviewed Rehearing Dec. disagree. According testimony, Cohn’s after he

informed bankruptcy the court that Goffs reopened

case had been and an automatic effect,

stay message he received a p.m.

from Goff 2:00 around that the ease had

been Approximately reset. thirty minutes

later, phoned Eaton informed Cohn bankruptcy reopened. case had not been knew,

There was no evidence that Cohn point, Judge Smith been in- had bankruptcy

formed of the true status of the court,

case. Because he never contacted the

Cohn could not have known it was whether Judge

still feasible for Smith to cancel

resetting put the case The fact to trial. Judge learned the status Smith correct bankruptcy through case own dili- his

gence obligations does not reheve Cohn of his 3.03(c).

under Rule Comment 14 to Rule provides:

3.03 rectify

The time on the obligation limit presentation testimony of false or oth-

er evidence varies from ease to case but

continues as as there is a reasonable

possibility taking legal ac- corrective tions before a tribunal.

Tex. DISCIPLINARYR. Prof. 3.03 Conduct added). (emphasis sup- cmt. 14 The record

ports the trial there court’s conclusion that possibility taking

was still a reasonable legal

corrective actions at the time Cohn representations Judge

learned that his

Smith were false. Point of five is error

overruled. the trial court is affirmed. *2 Price, McLaughlin, A. Allen Michael

G. Houston, appellants. for Gibson, Schwartz, B. Douglas Anne

Mark Houston, appellees. Neagli, LEE, ANDERSON and Before EDELMAN, JJ.

OPINION LEE, Justice. in wrongful termination case

This is a Emily Catherine Miksch sued which Corporation Company U.S.A. d/b/a (“Exxon”) allegedly firing violation employment agreement. parties’ oral granted summary judgment The trial court favor, perfected Miksch Exxon’s part appeal. affirm in and reverse and part. remand in

Background employed as a Miksch was secre- Engineering tary the Real Estate and department. marketing Division of Exxon’s time, Mize, Renny supervisor at Her Manager Exxon’s “Real Estate for the West- began husband ern Zone.” leasing and investigating possibility operating service station located (the Houston, “43rd on 43rd Texas Street Chevron”). time, Exxon had a At Street prohibiting written conflicts of interest spouse employee’s obtaining with Exxon first competing without company’s approval. Specifically, subsequently wrongful filed ter- policy provided, pertinent part: Exxon, against mination suit and Exxon summary judgment moved for on all of An employee, employee’s spouse, or a Following hearing, Miksch’s claims. dependent employee’s member fam- granted trial ily may compete Company *3 Exxon stating favor of without its basis for through its affiliates outside business activ- doing brings point so. Miksch one of error ities, except with knowledge and con- complaining generally that the trial court management. sent of granting summary judgment against erred in policy Miksch was aware of above and her.3 was concerned that her husband’s business plan jeopardize her employment with Standard of Review thereafter, Shortly Exxon. Miksch discussed The standard we follow when re the situation with and him Mize asked wheth- viewing is well-re er her husband’s 43rd Street Summary judgment proper only hearsed. is position Chevron would her with threaten when movant establishes there are no company. purportedly1 Mize told Miksch genuine proves fact issues material and he all,” venture “would not be a is judgment entitled to as a matter law. relayed and Miksch information her 166a(e). See Tex.R.Civ.P . To be entitled husband. subsequently Miksch’s husband summary judgment, a defendant must either began operating leased and the 43rd Street (1) conclusively negate at least one essential month, following Chevron. The Miksch re- plaintiffs each element of of the causes of promotion assigned ceived a and was to a (2) action, conclusively each ele establish supervisor, new Dan Stevens. Stevens was ment of an affirmative defense to each claim. supervised Rollins, turn, by Mike who in was Co., Grinnell, See American Tobacco Inc. v. supervised by Marketing Depart- Exxon’s (Tex.1997). deciding In head, ment Gordon Thomson. disputed whether there fact exists a issue August In Exxon revised its con- summary precluding judgment, we treat evi policy provide flicts of interest that all dence favorable to the nonmovant true approved by conflicts of interest must be indulge and all reasonable inferences company’s manage- member of the “senior summary nonmovant’s favor. id. A ment.” The policy revised defined “senior judgment may be affirmed on of the management” “department or high- heads movant’s theories that has merit. See Cin er level In executives.” December of the Cates, cinnati Ins. Co. Life year, same Stevens informed Miksch that she (Tex.1996). 623, 627 was in violation of Exxon’s that in and working company, order to continue for the Against Claims relinquish husband would have to control of the 43rd Street Chevron. Miksch causes of action refused, contract, shortly against and her husband and there- Exxon for breach of com after, fraud, employ- negligent misrepresentation, Exxon terminated Miksch’s mon-law ment.2 and “waiver of terminate.” testify point preserve and single, Mize is now deceased did not 3. This broad sufficient to this conversation before his death. argument possible error allow as to all grounds upon summary judgment may which fired, 2. At the time Miksch was her husband had Intern., granted. have been See Plexchem Inc. v. acquired also certain in the interests Dist., County Appraisal Harris However, parties two more service stations. Bros., 1996) (Tex. (citing Malooly 930-31 Inc. v. negotiated eventually whereby (Tex.1970)). Napier, Miksch’s husband’s limited interests in these sta- tions would not Exxon’s of inter- violate conflicts 4. Miksch also asserted a claim for the intentional undisputed est It is therefore that Miksch distress, emotional she infliction of which aban- for the was fired sole reason that she shortly summary relinquish doned before husband refused to control of the 43rd granted. Street Chevron. Chevron modified 43rd tion of the Street properly granted trial court contends the employment status. summary there judgment because motion of Miksch’s issues as are no fact response to to her affidavit attached of Miksch’s each summary address judgment, claims. motion Exxon’s judgment in day challenging she arguments what occurred Miksch detailed plan to appear in her they brief. Mize about her spoke the order station: 43rd operate the Street Breach of Contract office [Mize’s] I went into May of of inter- the conflict specifically discuss ground for Exxon’s first Mize, was the man- who situation. Mr. est that Miksch’s contract claim judgment was Zone of the Real the Western ager of at-will. the doctrine barred Division, my Engineering Estate *4 century, has adhered more than a Texas For I told Mr. at time.... supervisor that pro employment, which to rule of at-will the [43rd I about the Mize the details knew agreement to the specific that vides absent location, which was and its Chevron] Street by may contrary, terminated employment be Mr. specifically I asked home. near our time, any at employer or the the leasing operation and whether the Mize cause, cause, at all. bad or no cause good for dealership pose would the Chevron Dutschmann, Corp. Express Federal v. See Mr. my position at Exxon. problem with (Tex.1993) curiam); 282, (per 846 S.W.2d 283 pen to me his and seemed put Mize down 70, Scott, R.R.R. v. 72 Tex. Line Co. East & intently carefully and about thinking to be (1888).5 99, validity of an 102 The 10 S.W. that then told me what I said. He limit an purporting to agreement deal- operation the Chevron leasing and discharge employee at-will right to I problem at all. ership not be a would principles. governed by general contract I also understood remember this well.... See, Hosp. v. e.g., Montgomery County Dist. of Exx- speaking on behalf that [Mize] Browan, 501, Tex.Sup.Ct.J. 41 537 965 S.W.2d leasing and he me that the on when told (1998). exist, agreement to For such an dealership operation of the Chevron employer unequivocally must indicate a defi from problem at all. I understood not be a not terminate the nite intent to be bound to Mize Exxon my with Mr. that conversation employee except clearly specified cir leasing and agreed or to consented words, In other to cumstances. See dealership and of the Chevron enforceable, modify agreement an the em to conflict object not to that Exxon would (1) relationship ployment must be ex result at-will of interest which would (2) the Chevron deal- pressed implied, leasing and rather than and clear by my husband. ership (citing Byars City specific. See id. and Austin, 520, added). (Tex.App 523 (emphasis . —Aus denied)). 1995, recognizes tin Miksch writ testimony, Relying on the above Exxon, employee at that she was an at-will that her Mize’s oral assurance claims that proof rais but claims her operation of 43rd Street Chev- all,” fact as to whether Mize’s oral be a at es a issue ron “would not limiting agreement an Exx- opera sufficient to form regarding her husband’s statements reporting statutory charge public employee for violation Legislature enacted several 5. The has authority); See, appropriate of law to e.g., Civ.Stat. general exceptions to this rule. Tex.Rev Lab. Tex 1998) 4512.7, (Vernon (discharge § 3 Ann art. (Vernon 1996) (discharge § 21.051 Code Ann. abortion); refusing participate an for sex, Tex. race, color, religion, disability, based on (Vernon 502.013(c) Safety § & Code Ann. Health origin, age); national Agric Code Ann. Tex 1992) (discharge exercising rights under the for (Vernon 1995) 125.013(b) (discharge exer- § for (dis- Act); §Id. 592.015 Hazard Communication charge rights Agricultural cising Com- under the Hazard retardation). supreme due mental Act); Tex.CivPrac. munication & Code Ann. Rem recognized ex- also one common-law court has ception 1997) (Vernon serving (discharge § for 122.001 employment at-will doctrine. See (Vernon duty); § jury 161.007 Code Hauck, 733, Svc., Tex.Elec Ann 687 Inc. v. S.W.2d Sabine Pilot attending (discharge political Supp.1998) for (Tex.1985) (holding employee may 735 convention); § crime). 431.005- refusing Gov’t Code not fired for to commit Ann. Tex (Vernon 1990) military (discharge apply ser- exceptions to the situation .006 None those (dis- vice); (Vernon Supp.1994) § before us. Id. 554.002 704 1988, on’s to terminate at-will. it (Tex.App. Mikseh As 846 [14th no Dist.] — Houston writ); Coast, Inc., Polysar did motion for Benoit Gulf brief, (Tex.App. supporting S.W.2d argues Mize’s state- — Beaumont n.r.e.); Kellogg writ refd Webber v. ment not M.W. could have modified Miksch’s at-will Co., (1) (T ex.App.—Houston employment status because Mize’s state- n.r.e.). (2) [14th writ refd have Dist.] writing,

ment was never reduced to carefully they reviewed these cases and find clear, definite, not statement was factually distinguishable either are from the (3) enforceable, specific enough to be at proposi- case bar or do not stand authority unilaterally Mize lacked tion Exxon claims. modify employment Miksch’s at-will status. Stiver, example, For had a support argument, To its first Exxon ar- company policy specifically required any gues per se rule Texas employment agreements modification of to be modify employee’s at-will writing signed particular officer. status be in writing. Recently, Here, 845. had Supreme implicitly rejected Texas Court Collins, appellants such were Brawn, argument. Exxon’s permitted argue appeal on that their Broum, Tex.Sup.Ct.J. orally at-will status was modi- granted specifically writ of error they fied because did raise the issue *5 employer’s consider whether an oral state- summary judgment response. 871 their See modify employ- ments were sufficient to the And, Lumpkin, at 934. the appel- S.W.2d Although ee’s at-will status. id. the See allege lant did not at- that his status as an ultimately employer’s concluded the employee by express was modified specific oral assurances not to enough were contract, written or oral. at See 755 S.W.2d modify appellant’s employment the at-will case, pleadings this Miksch’s and status, open possibility the court left that response clearly spe- could, such statements under certain circum- cifically allege employment that her at-will stances, be sufficient to create an enforceable status was modified Mize’s oral assurance See, (“We agreement. e.g., id. hold an that that she would not be fired because of employer’s modify oral statements do not in the husband’s interest 43rd Street Chev- employee’s definite, a at-will status absent ron. contrary.”) (emphasis stated intention to the The remainder of the cases Exxon cites added). support position every simply do not its that Nevertheless, a significant Exxon devotes agreement modify employment to at-will amount of time cites several eases relationship writing. inbe These cases support any agreement that its contention to merely agreement such recognize that modify employment relationship at-will particular writing employ- must be in if See, writing. e.g., must be in v. Collins contract, modified, ment as not could have Inc., Pharmacy Management, 871 Allied See, performed year. e.g., been within one 929, (Tex.App. 932 5.W.2d [14th — Houston Winograd, (holding 789 at 310 S.W.2d that 1994, writ); no Farrington Sysco Dist.] written confirmation of the contract is unnec- (Tex. Servs., 247, Food Inc. 865 S.W.2d 252 essary performed if the contract could be 1993, denied); App. writ [1st Dist.] Benoit, year); 406 within one 728 S.W.2d at — Houston Co., 1, 5 Wilhite H.E. Butt 812 S.W.2d (same); Webber, (same); 720 127 S.W.2d at 1991, writ); (Tex.App. Corpus Christi Brown, 503, 41 Tex. see also 965 S.W.2d — Willis, Winograd v. (holding employer’s Sup.Ct.J. at that oral (Tex.App. Dist.] writ [14th employee’s modifying statements at-will sta- — Houston denied); Lumpkin Hv. & C Communica “only if the writing tus must be reduced to tions, Inc., (Tex.App.— promises within performed cannot be one denied); case, undisputed writ year”).6 Dist.] Houston Stiver In this it is [1st Instruments, Inc., employment agreement v. Texas Miksch’s oral Stiver, writing writing. (citing requirement at 846 6. This stems from the Stat- provides agreement 26.01(a), (b)(6) (Ver- "an ute Frauds which § Com.Code Ann. Tex.Bus. & performed year which is not to be within one 1994)). non making agreement” from the date of must be require speculate terminology one to year.7 uous or performed within one could have been parties’ purport- of the parameters as Thus, not summary judgment could have The agreement. ed granted based on Exxon’s contention been Mize specifically asked proof shows agreement purported modification plan to lease whether her writing. required to be Chevron would operate 43rd Street argues that Mize’s statement Exxon also Mize’s position Exxon. threaten employ- could not have modified Miksch’s definite, and when specific and response is is not ment status because statement context, proper communicates viewed in clear, definite, specific enough to be en- message would not that Miksch the clear noted, the factor in forceable. As critical ordinarily violated would have fired what determining validity Accordingly, we Exxon’s conflicts relationship modify the at-will was, conclude that statement cannot “unequivocally in- has whether law, modify insufficient as a matter intent to be bound definite dieate[d] employment status.8 Miksch’s at-will except clearly terminate the if argues that even Mize’s Exxon next This specified at 538. circumstances.” Id. clear, he lacked sufficiently statement was agreement, the true absent such an because authority modify at-will sta reasonably expect to limit employee cannot assertion, at support To tus. terminate him. policy to of interest its 1994 conflicts tached pol judgment. That its motion for Brown, specifically prohibits employees icy argued em- appellant with the except competing with by assuring ployer modified her at-will status knowledge manage “senior and consent of good doing “[she] her that manage policy defines “senior ment.” The job fired unless there was [she] “department higher level ment” heads good good reason or cause.” See id. *6 points in her Exxon out executives.” rejected appellant’s argument, was deposition, Miksch conceded that Mize holding “general that an em- comments” “higher a “department head” nor neither a as ployee long will as his not terminated had never and that she level executive” themselves, not, satisfactory work is do for management” approval sought “senior not to manifest a definite intent to be bound ar Exxon her husband’s business activities. employee except clearly terminate the under gues summary judgment proof conclu this specified id. In its anal- circumstances. See position that Mize sively establishes ysis, emphasized the court any authority to bind Exxon to lacked the promise appellant that the would not be ter- employ terminate Miksch’s agreement not to except “good for “good minated reason” or disagree. ment. We enough was to constitute cause” not definite con- undisputed It is that at time the was an enforceable contract because there allegedly Miksch and Mize versation between understanding mutual as to occurred, policy conflicts of interest the 1994 encompassed. what those See id. terms inter- Exxon’s conflicts of was not in effect. Brown, only Unlike the situation in Mize’s at relevant time policy in effect est ambig- required employees obtain the consent statement Miksch does not contain your opens a problem at all if husband 7. is true even under Miksch’s theo- This because will ry a dealer. It her at- and becomes Chevron that Mize’s oral statements modified station status, position your at pose have here Exxon could fired not a with not, however, any (except her at time and for reason for We read Brown Exxon.” do employer her ron). of the 43rd Street Chev- suggest must utter certain that an agree "magic to limit its words” in order to Rather, employee our at-will. to terminate the employer's oral is determine whether task argues 8. Mize’s statement was not suffi- Exxon a not to ter- evidences definite intent statement ciently specifically clear Mize did not because clearly speci- except minate for be fired her state that Miksch would not Brown, 965 S.W.2d fied circumstances. See Street Chevron. husband's 43rd case, Tex.Sup.Ct.J. a at 538. In this we find agree that the issue would be response, complicated exists as to whether Mize’s fact issue much less had Mize answered context, such an issue. question when read in raises as follows: "It would “management” engaging compet- before in a support are insufficient to such a claim. To ing business. The 1987 did prevail not define negligent on a misrepresen claim for “management” the term and Exxon has nei- tation, plaintiff prove, among other cited, found, any summary ther nor we have things, misrepresented that the defendant judgment proof suggesting that Mize was not existing fact in the course of the defendant’s part “management” company’s as de- business. See Federal Land Bank Ass’n this, Apart fined the 1987 Sloane, (Tex.1991). Be Rothwell, Terry executive, an Exxon testified every negligent misrepre cause element of a upon reading that based his of the 1987 sentation claim must be established order policy, complied with Miksch had its terms recovery, there to be the absence of discharged obligation report grounds judgment. element activity. husband’s business on Based this Lawyers Corp., Title Stone Ins. record, we have no basis to conclude the (Tex.1977). 183, 185 summary judgment proof conclusively estab- Freight The situation Airborne is analo argument lishes Exxon’s that Mize lacked gous present to the case. See Airborne authority company’s to act on the behalf. Freight Corp., Inc. v. Enterprises, C.R. Lee Accordingly, judgment would be (Tex.App. 847 S.W.2d 289 Paso inappropriate ground. on this — El denied). case, employer writ

Fraud that, independent assured contractor “as you your job, you’ll job.” do have a for summary also moved employer subsequently at 292. The id. ground on the that Miksch’s com who, turn, fired the contractor sued mon-law fraud claim is barred because for various contract and tort allegation nothing fraud more than re claims, packaged including misrepresenta- negligent Al breach of contract claim.9 though Miksch contends considering tion. See id. at 293. After inappropriate was claim, because there are unre contractor’s the court em- found the claim, relating solved fact issues to her fraud ployer’s qualify oral statement did not specified has not she what those fact issues misrepresentation” “negligent because it provided any argument why are or they conduct, promise merely a of future rather Appel are fact issues. Rules The Texas promise existing than a fact. See require party’s late Procedure each brief of case, Similarly, argument to contain “such discussion of promise oral not to terminate Miksch *7 upon may the facts and authorities relied misrepresentation existing a but of fact requisite point to maintain the at issue.” was, most, promise to refrain from tak- TexR.App.P. 38.1(h). See Points of error such, ing some action in the As future. supported by argument that are not may negli- Miksch maintain a claim for authorities are deemed waived. Tren See Exxon, gent misrepresentation against (Tex. Ratcliff, holm v. 646 S.W.2d 934 in granting the trial court not err sum- did 1983). By failing comply briefing to with the mary judgment of Exxon on favor 38.1(h), requirements of Rule has Miksch cause of action. right challenge portion waived her to of iy judgment trial to relating court’s her fraud claim. Right to Waiver of Terminate

Negligent Misrepresentation ground Exxon’s final judgment of asserted that Miksch’s “waiver it Exxon next asserted that was right to terminate” claim must fail as a mat summary judgment entitled to on Miksch’s recognize ter of law because does not negligent misrepresentation action Texas cause of any allegations petition agree. because the such cause action. We of Corp. Although relationship a contractual can create tract itself. Formosa Plastics USA See Inc., law, Contractors, Eng’rs 960 duties under both contract and tort Presidio (Tex.1998). plaintiff’s right recovery ordinarily of on the motion for is In its (1) right judgment, re- contract alone if: conduct Exxon claimed Miksch’s of defendant’s liability give only covery, any, would rise to because it breach- if is in contract alone because her contract, (2) injury only injury solely alleged failure es or is stems from Exxon’s employment agreement. subject purported to the the con- to honor her economic loss matter of Enterprises, BioZyme found, any Supply, Inc. v. cited, nor have we has neither (Tex.1981); that a S.W.2d BaR of authority supporting her contention State Jury Charges Business, is a Texas right terminate” claim Pattern “waiver of — Employment 101.1, 101.3 addition, PJC of action Texas. & viable cause Consumer (1997) exis- instruction on (jury question and out, points “waiver” correctly as Exxon case, Miksch’s In this agreement). party may em tence of merely theory a a defensive to her attached affidavit prevent party’s loss of the exist ploy to specifically asked that she response states Bank rights. See Hruska v. First State ing Mize, (Tex.1988). her husband’s whether Deauville, supervisor, pose would station of a Chevron operation may not be used concept waiver The position at Exxon. problem any obligations. rights contractual create told that Mize further states The affidavit properly Accordingly, the trial court station Miksch’s her that granted summary judgment on at all” and “would not be terminate” claim. “waiver of this that Mize was Mikseh understood Conclusion that he had of Exxon and speaking on behalf object thereby agreed that us, find the record before we Based on arising from of interest conflict genuine of material fact exists that a issue operation of the Chevron station. oral statement alleged whether Mize’s em- Miksch’s status as an at-will Brown, modified there the situation Unlike portion Accordingly, reverse the ployee. we only circum- specificity lack of here. relating court’s of the trial alleged Mize’s statement stance to which re- Miksch’s breach of contract claim and of Exxon’s application is the pertain eould claim for The remainder mand that trial. service to the conflict judgment is affirmed. trial court’s regard, In that by Miksch’s husband. station whether, as to could differ reasonable minds EDELMAN, Justice, concurring on motion it was which under the circumstances rehearing. made, conveyed an alleged statement to be creat- employment For contract of contractually bind Exxon to waive intent to ed, unequivocally indicate a fact issue conflict Because intent to be not to terminate a definite bound whether the remains this ease therefore specified employee except clearly únder parties created actions County Montgomery circumstances. modify their rela- Brown, Hosp. Dist prop- tionship, summary judgment eould not (Tex.1998). An who has no formal for lack of erly granted on that claim employer cannot con- agreement with his specificity. comments, en- struct one out of indefinite couragements, See id. assurances.

Therefore, statement that an *8 discharged

employee satisfactory employee that the

his work is do discharged only good cause

would be CLARK, Appellant, Demetria intent not to termi- not manifest definite clearly specified cir- nate HOUSTON, OF UNIVERSITY agreement there is no cumstances because Matthew Stewart Jon “satisfactory” “good en- what cause” Williams, Appellees. compasses. See id. No. 14-96-00005-CV. however, Importantly, the fact in Brown statements addressed particular Texas, Appeals Court of law, sufficiently not, as a matter of were Dist.). (14th Houston change does not specific to create contract Sept. agreement general that whether an rule parties question was reached

fact where existence of Farm, See, & Ranch disputed. e.g., Preston

Case Details

Case Name: Miksch v. Exxon Corp.
Court Name: Court of Appeals of Texas
Date Published: Dec 17, 1998
Citation: 979 S.W.2d 700
Docket Number: 14-96-01495-CV
Court Abbreviation: Tex. App.
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