Texas Tech University System and Texas Tech University System Board of Regents, Petitioners, v. Pureza “Didit” Martinez, Respondent
No. 22-0843
Supreme Court of Texas
June 14, 2024
Argued November 30, 2023
JUSTICE HUDDLE delivered the opinion of the Court, in which Chief Justice Hecht, Justice Lehrmann, Justice Devine, Justice Blacklock, and Justice Bland joined.
JUSTICE YOUNG filed a dissenting opinion, in which Justice Boyd and Justice Busby joined.
After over eleven years of service, Pureza “Didit” Martinez was fired by the president of the Texas Tech University Health Sciences Center. Martinez, who was seventy-two years old at the time, sued the Health Sciences Center, alleging age discrimination. The question in
We conclude that Martinez‘s petition does not allege facts demonstrating that the TTU System or the Board employed Martinez directly or that either one controlled access to and interfered with her employment. Martinez‘s petition thus fails to allege facts that affirmatively demonstrate that she has a valid age-discrimination claim against the TTU System or the Board, as opposed to the Health Sciences Center. For this reason, Martinez failed to allege a waiver of sovereign immunity, and the plea to the jurisdiction of the TTU System and the Board should have been granted. Nevertheless, because the petition does not foreclose a valid claim against those defendants, we remand to the trial court to give Martinez an opportunity to replead.
I. Background
Martinez started working as senior assistant to the president at the Health Sciences Center in January 2008. She was promoted the next year to be the president‘s chief of staff. She retained that position when the Health Sciences Center hired a new president, Dr. Tedd Mitchell, in 2010.
Good morning everyone -- Given the current whirlwind surrounding the timeline of the Legislative Session, I‘ve not spent a lot of time on strategic planning for either [the Health Sciences Center] or the [TTU] System. However, with the session coming to a close by the end of this month, it will be time to shift gears and plan for the future.
One of the areas that I have discussed with members of the [Board] is related to succession planning at both the [TTU System] as well as [the Health Sciences Center]. It is something they are quite interested in and is timely because of the current economy. Low unemployment means that recruiting becomes harder, which means we must all be quite intentional in our planning.
I asked Steve Sosland to do an analysis of our current leadership, and the results illustrate why this is necessary. For members of our [President‘s Executive Council], the average age is 60, 62% are eligible for retirement, and of those not yet eligible for retirement, 50% will be in the next 2-5 years. This is not meant to insult anyone‘s age or length of employment, but rather to point out that our most important governing group is vulnerable to a precipitous change at any given time.
Accordingly, I am going to ask everyone to develop a written document for their own succession planning, which I would like to review as part of [the Health Sciences Center]‘s strategic planning process. Thanks to everyone for helping to square this away.
Tedd
About one month after Martinez received this email, the Health Sciences Center‘s budget office informed her that Dr. Mitchell had approved salary increases for her and several other members of the President‘s Executive Council (the same group that received the email). The next morning, however, Martinez alleges she was approached by Dr. Mitchell and told without explanation that she could no longer serve as his chief of staff. Several hours later, Dr. Mitchell emailed Martinez and stated that he had lost confidence in her ability to maintain confidentiality, making their “ongoing work together impossible.” He cited an incident the night before in which a senior vice president told Dr. Mitchell that his faculty and staff had learned “from the president‘s office” that he was going to be fired. Martinez “vehemently den[ied]” the accusation that she had leaked this information.
Following her termination, Martinez filed a complaint with the Texas Workforce Commission, and she later sued the Health Sciences Center, Texas Tech University, the TTU System, and the TTU System‘s Board of Regents under
The University, the TTU System, and the Board (but not the Health Sciences Center) filed a plea to the jurisdiction.2 They argued that immunity had not been waived as to them because Martinez did not exhaust her administrative remedies as to any defendant other than the Health Sciences Center. Martinez responded and argued that she properly exhausted her administrative remedies because her administrative charge was sufficiently broad to encompass all four defendants.
The day before the hearing on the plea to the jurisdiction, the defendants alleged, as an affirmative defense, that the University, the TTU System, and the Board (but not the Health Sciences Center) retained immunity because “they were not [Martinez]‘s employer.” Then, on the morning of the hearing, the defendants filed a reply brief arguing that, in addition to Martinez‘s failure to exhaust her administrative remedies, her claims against the University, the TTU System, and the Board should be dismissed because “they are not properly brought against [Martinez]‘s employer under
At the hearing, the defendants conceded that jurisdiction was proper for Martinez‘s “actual employer,” the Health Sciences Center. But they asserted that Martinez failed to allege that any of the other
The trial court denied the plea to the jurisdiction, and the University, the TTU System, and the Board appealed. They argued that Martinez failed to plead sufficient allegations to demonstrate that these defendants either were her employer or satisfied the Rennels test.3 The court concluded that Martinez‘s petition alleged sufficient facts to establish jurisdiction over the TTU System and the Board, but not the University. 683 S.W.3d 111, 116 (Tex. App.—Amarillo 2022). It therefore reversed the order as to the University, albeit with an
II. Applicable Law
Although
When, as in this case, a jurisdictional plea challenges the plaintiff‘s pleadings, the Court determines whether the plaintiff has alleged facts that affirmatively demonstrate a court‘s jurisdiction to hear the cause. Tex. Dep‘t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). “[O]ur notice-pleading rules ... require pleadings to not only give notice of the claim and the relief sought but also of the essential factual allegations.” In re First Rsrv. Mgmt., L.P., 671 S.W.3d 653, 661-62 (Tex. 2023) (citations and internal quotation marks omitted). We construe the pleadings liberally in favor of the plaintiff and look to the pleader‘s intent. Miranda, 133 S.W.3d at 226. But courts “cannot use a liberal construction of the petition as a license to read into the petition a claim that it does not contain.” Flowers v. Flowers, 407 S.W.3d 452, 458 (Tex. App.—Houston [14th Dist.] 2013, no pet.). If the pleadings lack sufficient facts to affirmatively demonstrate the trial court‘s jurisdiction but do not affirmatively demonstrate incurable defects in jurisdiction, the plaintiff should be afforded the opportunity to amend. Miranda, 133 S.W.3d at 226-27.5
The key question in this case is whether Martinez alleges sufficient facts to demonstrate that the TTU System and the Board can be liable to Martinez as an “employer” under
- “the defendant is an employer within the statutory definition of the Act“;
- “some sort of employment relationship exists between the plaintiff and a third party“; and
- “the defendant controlled access to the plaintiff‘s employment opportunities and denied or interfered with that access based on unlawful criteria.”
994 S.W.2d at 147 (citations omitted).
In applying Rennels, our courts of appeals have consistently required evidence that the defendant exercised control over some specific aspect of the employment process and took some unlawful action consistent with that control. For example, in University of Texas at El Paso v. Ochoa, the court held that a custodian employed by a staffing agency and assigned to work at UTEP raised a fact issue whether she could sue UTEP because there was evidence that UTEP had offered her a permanent position but UTEP‘s head of custodial services directed the agency to end her assignment there. 410 S.W.3d 327, 334-35 (Tex. App.—El Paso 2013, pet. denied); see also Univ. of Tex.-Pan Am. v. Miller, No. 03-10-00710-CV, 2013 WL 4818355, at *5 (Tex. App.—Austin Aug. 28, 2013, no pet.) (holding that a UTPA police officer could sue the UT System because his employment required a commission through the UT System‘s police department and that department‘s director terminated his commission and recommended that UTPA fire him). In Rennels itself, we held that a pathologist could sue a hospital that was not her direct employer because the hospital had contractual authority to influence her employer‘s promotion decisions and she presented evidence that the hospital‘s CEO directly encouraged her employer not to promote her. 994 S.W.2d at 147-48. Conversely, in Johnson v. Scott Fetzer Co., the court of appeals held that a fired vacuum-cleaner salesman could not sue the vacuum manufacturer because it only controlled how its vacuums were sold and had no right to hire or fire salespersons or set work hours, salary, commissions, or bonuses. 124 S.W.3d 257, 264 (Tex. App.—Fort Worth 2003, pet. denied); see also Holloway v. Dall. Cnty. Hosp. Dist., No. 05-20-01114-CV, 2022 WL 17883799, at *17 (Tex. App.—Dallas Dec. 23, 2022, no pet.) (holding a hospital contractor‘s employee could not sue the hospital because the hospital‘s complaints about performance deficiencies did not equate to interference with his employment and the hospital‘s right to control who worked on its account did not indicate operational control over the contractor).
Here, of course, we are not asked to decide whether there is evidence to support Martinez‘s claims. The plea to the jurisdiction challenges only Martinez‘s pleadings. We therefore must determine whether the petition alleges sufficient facts to affirmatively
III. Analysis
The TTU System and the Board both argue that Martinez‘s petition is insufficient to support a
In concluding that both the TTU System and the Board “controlled access” to Martinez‘s employment opportunities, the court of appeals relied on unpleaded provisions in the Education Code that generally describe the TTU System and the Health Sciences Center‘s system of governance. See
Even assuming that the Board (or the TTU System, acting through the Board) is “in a legal position” to control employment decisions at the Health Sciences Center,7 Rennels requires more. To affirmatively demonstrate a
The court of appeals’ expansive reading of Rennels is problematic for two other reasons. First, it would essentially make every parent corporation liable under
Likewise, the court of appeals erred to the extent it relied on Dr. Mitchell‘s dual roles, without more, to conclude that Martinez pleaded a basis for the TTU System‘s liability. See 683 S.W.3d at 117. An allegation that Dr. Mitchell simultaneously served as chancellor of the TTU System and president of the Health Sciences Center, without more, does not demonstrate that the TTU System controlled access to Martinez‘s employment opportunities with the Health Sciences Center. See First Rsrv., 671 S.W.3d at 660-61 (“[I]t is entirely appropriate for directors of a parent corporation to serve as directors of its subsidiary, and that fact alone may not serve to expose the parent corporation to liability for its subsidiary‘s acts.” (alteration in original) (quoting United States v. Bestfoods, 524 U.S. 51, 69 (1998))); see also Turner v. Baylor Richardson Med. Ctr., 476 F.3d 337, 344 (5th Cir. 2007) (concluding that evidence of two entities’ common ownership or management, standing alone, was insufficient to establish both entities’ employer status under Title VII).
The court of appeals nevertheless concluded that Martinez‘s allegations were sufficient to survive the plea to the jurisdiction.
We conclude the facts as alleged in Martinez‘s petition, even when liberally construed in her favor, see Miranda, 133 S.W.3d at 226, cannot be read to paint that picture. No one disputes that Martinez alleged sufficient facts to support a
Martinez‘s petition includes allegations that the Board “wanted to reduce the average age of [the Health Sciences Center‘s] senior leadership” and that the Board “asked Dr. Mitchell to reduce the age of senior leadership at [the Health Sciences Center].” These allegations are insufficient to affirmatively demonstrate that the Board controlled access to Martinez‘s employment and denied or interfered with her employment. Martinez expressly rests these allegations on
In sum, Martinez‘s petition fails to allege that the TTU System or the Board “controlled access” to Martinez‘s employment opportunities and “interfered with that access.” The petition therefore does not allege facts that affirmatively demonstrate a
The TTU System and the Board seek rendition of judgment and dismissal of Martinez‘s claim against them. But as the defendants conceded in their briefing in the court of appeals, their jurisdictional plea challenged only Martinez‘s pleadings.
Ordinarily, when a jurisdictional plea challenges only the pleadings, the remedy is to remand for an opportunity to replead. Miranda, 133 S.W.3d at 226-27. That remedy is particularly appropriate here. The TTU System and the Board did not expressly assert that they might not qualify as an “employer” under
Martinez may well be able to cure this pleading deficiency on remand. As our dissenting colleagues correctly suggest, repleading to satisfy Rennels may not be a heavy lift given the facts Martinez has
IV. Conclusion
Martinez failed to allege facts that affirmatively demonstrate the court‘s jurisdiction over her claims against the TTU System or the Board because, as currently pleaded, her petition does not contain sufficient facts to demonstrate that either the TTU System or the Board could be liable to her under
Rebeca A. Huddle
Justice
OPINION DELIVERED: June 14, 2024
