Matagorda County Hospital District v. Burwell

OPINION ON MOTION FOR REHEARING

Opinion by

Justice HINOJOSA.

Appellant, Matagorda County Hospital District (“MCHD”), has filed a motion for rehearing asserting “this Court wholly failed to address a properly preserved point of error/issue raised by the Hospital District” regarding the revocability of the employment manual. MCHD does not explain why it contends the revo-*88cability issue was “properly preserved.”1 Nevertheless, because MCHD complained on appeal that the evidence was legally and factually insufficient, we will address the revocability issue as part of MCHD’s sufficiency complaint.

MCHD asserts the evidence conclusively established that its employment manual was unilaterally revocable at will. MCHD’s district administrator testified that MCHD could revise its employment manual without the employees’ consent.

MCHD contends this Court’s opinion in Reynolds Mfg. Co. v. Mendoza, 644 S.W.2d 536 (Tex.App.-Corpus Christi 1982, no writ), stands for the proposition that where there is no express agreement limiting the employer’s right to unilaterally amend or withdraw the personnel manual, no modification of the at-will employment doctrine will be found. See also Williams v. Wal-Mart Stores, Inc., 882 F.Supp. 612, 616 (S.D.Tex.1995); Brown v. City of Galveston, 870 F.Supp. 155, 160 (S.D.Tex.1994) (citing Reynolds Mfg. Co., 644 S.W.2d at 539). We conclude the Reynolds case is factually distinguishable from the instant case.

In Reynolds, we reversed jury findings in favor of a discharged employee because, “there is no evidence of any express agreement which dealt with procedures for discharge of employees, unless the employee handbooks can be read as such.” Reynolds Mfg. Co., 644 S.W.2d at 539. We reviewed and analyzed the express terms of Reynolds’s employee handbook. In conducting that analysis, we distinguished cases involving employee manuals containing express procedures for employee discharge. See id. (citing Mansell v. Tex. & Pac. Ry. Co., 135 Tex. 31, 137 S.W.2d 997, 999-1000 (1940); Hardison v. A.H. Belo Corp., 247 S.W.2d 167, 168 (Tex.Civ.App.-Dallas 1951, no writ)).

The remaining cases cited by MCHD in the motion for rehearing also distinguish cases involving employee manuals which limit the employer’s right to terminate an employee, see Brown v. City of Galveston, 870 F.Supp. 155, 159-60 & n. 3 (S.D.Tex. 1994), or are factually distinguishable, see Werden v. Nueces County Hosp. Dist., 28 S.W.3d 649, 651 (Tex.App.-Corpus Christi 2000, no pet.) (handbook expressly providing that it is not a contract, can be changed at any time, and that employment is at-will); Gamble v. Gregg County, 932 S.W.2d 253, 255 (Tex.App.-Texarkana 1996, no writ) (manual expressly providing that county may unilaterally change).

In the instant case the evidence includes the internally conflicting language of MCHD’s employee manual which expressly limits MCHD’s right to terminate an employee. The record also includes the testimony of MCHD’s business office manager and chief financial officer. Both of these individuals were involved in the decision to terminate Burwell, and both testified that the personnel manual provided they could only terminate a subordinate employee for cause.

To rebut the presumption of employment at-will, an employment contract must directly limit in a “meaningful and special way” the employer’s right to terminate the employee without cause. Rios v. Tex.-Commerce Bancshares, Inc., 930 S.W.2d 809, 815 (Tex.App.-Corpus Christi 1996, writ denied). An employer’s statements concerning termination rights in employment literature may modify the at-will relationship if the statements specifically and expressly curtail the employ*89er’s right to terminate the employee. Vida v. El Paso Employees’ Fed. Credit Union, 885 S.W.2d 177, 181 (Tex.App.-El Paso 1994, no writ); McAlister v. Medina Elec. Coop., Inc., 830 S.W.2d 659, 664 (Tex. App.-San Antonio 1992, writ denied).

We hold the evidence is legally and factually sufficient to support the jury’s finding that a contract for employment existed between Burwell and MCHD. We deny MCHD’s motion for rehearing.

Justice CASTILLO is dissenting.

. The revocability issue was not raised in MCHD's original motion for summary judgment, in its motion for new trial, or in a motion for judgment notwithstanding the verdict.