Borg-Warner Protective Services Corp. v. Flores

SEERDEN, Chief Justice,

concurring and dissenting.

I respectfully dissent from that part of the majority opinion that affirms the awards to Amelia Flores of damages for past and future wages based on her theory of constructive discharge.

Clearly, Amelia Flores has been seriously injured, physically, emotionally, and psychologically, by Gonzales’ sexual harassment and rape of her. I completely agree with the majority that she is entitled to compensation from Borg-Warner for the wrongs committed against her by her supervisor. However, I cannot agree that she is also entitled to be compensated under the theory of wrongful termination, because I find no evidence in the record that Flores was in fact constructively discharged by Borg-Warner. It is on this narrow issue that I disagree with the majority. A review of what I consider to be the relevant facts is necessary to adequately state my reasoning.

Borg-Warner provides security services throughout the country, with a field office in McAllen, Texas, under the supervisory jurisdiction of its San Antonio, Texas, office. The McAllen field office was run by two Borg-Warner employees: Jimmy Gonzales, who directly supervised the guards; and Rob Richards, who was the company’s salesman.

The evidence, viewed in the light most favorable to the jury verdict at trial, showed that Gonzales sexually harassed many of the female guards he supervised by, among other things, asking them for dates and sexual *871favors, sometimes offering work-related incentives to submission, fondling their breasts, calling and visiting them at their homes unannounced.

When Amelia Flores began work as a security guard for Borg-Warner’s McAllen office in July of 1993, Gonzales tried to kiss her and pin her to a desk in the office, he began calling her at home, and promised her that she would receive favors at work if she would consent to sex with him. Gonzales also appeared at Flores’s home on two occasions, the first time trying to unfasten his trousers and pin her down, the second time trying to forcibly remove her skirt. Flores repeatedly rejected Gonzales’ advances. Finally, in mid-August of 1993, while Gonzales and Flores were in Gonzales’ vehicle traveling en route to an attempted theft investigation, Gonzales took a detour down a dirt road, parked his car, and raped her.

On September 7, 1993, Flores informed a Borg-Warner client of the sexual harassment and rape. Dorothy Bearden, the regional manager at Envisions and the person that Flores told about the rape, testified that on that same day she spoke to Richards and informed him about the rape. Bearden also testified that she informed Richards about other claims of sexual harassment by Flores’ co-workers.

Richards then met Flores and Corona, the on-duty security guard at Envisions, at the Envisions offices, and was told about the experiences that Flores, Corona and other security guards, including Rodriguez, Garcia and Lara, had with Gonzales. Flores testified that Richards told her not to mention the rape to anyone, and that he would take care of it. Richards contends that Flores did not initially complain of rape when he spoke to her on September 7, 1993, but only that Gonzales had given her a sexually transmitted disease. Nevertheless, Richards then placed Gonzales on administrative leave and attempted to contact the other victims.

It is uncontroverted that, on the same day that the rape was reported to Richards, he contacted higher management at the San Antonio office and that same evening Mike McEwen, Borg-Warner branch manager, telephoned Flores. McEwen testified that he told Flores at that time that Gonzales had been terminated and asked her if she wanted a few days off with pay. Flores, however, denied that McEwen told her that Gonzales had been terminated, but agreed that McEwen told her that Gonzales was on administrative leave. Flores contends that she did not find out that Gonzales had been terminated before March of 1995.

Nevertheless, Flores resigned from Borg-Warner on September 7, !993, the same day that she had initially reported the rape. Flores testified that she resigned because of her continuing fear of Gonzales. Flores also wrote a formal letter of resignation to Richard, dated September 7, 1993, which she concluded by stating that she “would rather starve than continue working with a company that has allowed this to happen.”

Flores and several other female security guards sued Borg-Warner and Gonzales on numerous theories, asserting common law causes of action as well as claims under Chapter 21 of the Texas Labor Code for sexual harassment.1 Generally the plaintiffs contended that Borg-Warner allowed Gonzales to create a sexually hostile work environment. Specifically, Flores and co-employees Malissa Lara, Imelda Rodriguez, and Norma Corona, complain that Gonzales made inappropriate sexual advances against each of them, yet Borg-Warner failed to take any action against Gonzales when his misconduct was reported. The claims of each individual plaintiff were later severed, and Flores’ claims against Borg-Warner proceeded to trial separately from the others.

The case was submitted to the jury on numerous special issues by which the jury found that Borg-Warner sexually harassed Flores, and that it intentionally inflicted emotional distress upon her, invaded her privacy, and negligently hired Gonzales. Without segregating the monetary amounts according to cause of action, the jury assessed damages for lost wages and benefits (past—$13,500 / future—$350,000), mental anguish (past— $20,000 / future—$60,000), and physical pain *872(past—$20,000 / future—$0). The jury also assessed punitive damages of $3,500 against Gonzales and $2,225,000 against Borg-Warner. The trial court awarded Flores attorney’s fees in the amount of $339,509.86, as well as contingent fees for the successful representation of Flores on appeal.

By its first three points of error, Borg-Wamer challenges the legal and factual sufficiency of the evidence to show that Flores was constructively discharged, and to show that she was entitled to awards for past and future wages. In considering a “no evidence,” “insufficient evidence” or “against the great weight and preponderance of the evidence” point of error, we follow the well-established test set forth in Pool v. Ford Motor Co., 715 S.W.2d 629, 635 (Tex.1986); Dyson v. Olin Corp., 692 S.W.2d 456, 458 (Tex.1985); Glover v. Texas Gen. Indem. Co., 619 S.W.2d 400, 401-02 (Tex.1981); Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965); Allied Fin. Co. v. Garza, 626 S.W.2d 120, 125 (Tex.App.—Corpus Christi 1981, writ ref'd n.r.e.); and Calvert, No Evidence and Insufficient Evidence Points of Error, 38 Tex.L.Rev. 361 (1960).

The Texas Human Rights Act prohibits an employer from discharging or otherwise discriminating against an individual with respect to compensation or the terms, conditions, or privileges of employment because of race, color, disability, religion, sex, or national origin. Tex. Lab.Code Ann. § 21.051 (Vernon 1996). The legislature modeled the Texas Human Rights Act on federal law with the purpose of executing the policies embodied in Title VII of the Civil Rights Act of 1964. Ewald v. Wornick Family Foods Corp., 878 S.W.2d 653, 658 (Tex.App.—Corpus Christi 1994, writ denied). Accordingly, when reviewing a case brought pursuant to the Texas Act, we may look not only to the state statute, but also to the analogous federal provisions contained in Title VII and to federal cases interpreting Title VII. Mackey v. U.P. Enterprises, Inc., 935 S.W.2d 446, 455 (Tex.App.—Tyler 1996, n.w.h.); Eckerdt v. Frostex Foods, Inc., 802 S.W.2d 70 (Tex.App.—Austin 1990, no writ).

Under both the State and the Federal Acts, sexual harassment is recognized as a form of employment discrimination. Ewald, 878 S.W.2d at 658; Syndex Corp. v. Dean, 820 S.W.2d 869, 871 (Tex.App.—Austin 1991, writ denied) (citing Meritor Sav. Bank v. Vinson, 477 U.S. 57, 63-64, 106 S.Ct. 2399, 2404, 91 L.Ed.2d 49 (1986)). A claim of sexual harassment may be actionable as quid pro quo harassment or hostile work environment harassment.

“Quid pro quo ” sexual harassment is discriminatory behávior by a supervisor that compels an employee to elect between acceding to sexual demands and forfeiting job benefits, continued employment or promotion, or otherwise suffering tangible job detriments. Ewald, 878 S.W.2d at 658; see also Highlander v. K.F.C. Nat’l Management Co., 805 F.2d 644, 648 (6th Cir.1986). “Hostile environment” sexual harassment occurs when the plaintiff is subjected to unwelcome sexual harassment affecting a term, condition, or privilege of employment, and the employer knew or should have known of the harassment and failed to take remedial action. See Ewald, 878 S.W.2d at 659.

In the present case, Flores obtained findings of both quid pro quo and hostile environment sexual harassment. Her primary theory of liability was that, as a result of sexual harassment by Gonzales and Borg-Warner, she was constructively discharged from her job there as a security guard. Accordingly, even though she may have established .that she was sexually harassed, Flores must further prove that the harassment caused her constructive discharge.

The majority opinion, after reviewing the evidence of sexual harassment, summarily concludes that Gonzales’ egregious conduct and the response by Borg-Wamer’s management to complaints against Gonzales are in themselves sufficient to support Flores’ claim of constructive discharge. However, a closer analysis of the relevant law and its application to the facts of this ease reveals a lack of support for her claim for constructive discharge.

The constructive discharge doctrine was first developed in unfair labor practice cases and serves as a legal substitute for the discharge element of a prima facie ease of dis*873crimination under Title VII of the Civil Rights Act of 1964. Hammond v. Katy Independent School Dist., 821 S.W.2d 174, 177 (Tex.App.—Houston [14th Dist.] 1991, no writ).2 Constructive discharge occurs when an employer makes conditions so intolerable that an employee reasonably feels compelled to resign. Davila v. Lockwood, 933 S.W.2d 628, 630 (Tex.App.—Corpus Christi 1996, no writ); Hammond, 821 S.W.2d at 177. To find a constructive discharge, the fact finder must determine whether or not a reasonable person in the employee’s position would have felt compelled to resign as a result of the employer’s discriminatory conduct. Hammond, 821 S.W.2d at 177.

While I have found no Texas cases that elaborate on the elements required to find constructive discharge as a result of sexual harassment, the federal cases that have examined this issue generally require the employee to be reasonable in allowing the employer to correct the situation before her resignation may be viewed as a constructive discharge.

Once the employer is notified of the sexual harassment claim, it must be given sufficient time to remedy the situation before an employee may claim constructive discharge. Kilgore v. Thompson & Brock Management, Inc., 93 F.3d 752 (11th Cir.1996). In Kilgore, female employees of a Pizza Hut restaurant claimed that they had been sexually harassed by a fellow employee. Pizza Hut was notified of the claim on Friday, and by the next Tuesday had initiated an investigation of the incident and called a meeting with the plaintiffs. The Eleventh Circuit rejected the plaintiffs’ constructive discharge claim after they refused to return to work or attend the meeting.

Moreover, an employer’s remedial action in response to a sexual harassment claim is sufficient if reasonably calculated to prevent further harassment. Knabe v. Boury Corp., 114 F.3d 407 (3rd Cir.1997). The Third Circuit stated in Knabe that, “[i]f the remedy chosen by the employer is adequate, an aggrieved employee cannot object to that selected action. Concomitantly, an employee cannot dictate that the employer select a certain remedial action.” Id. at 414 (employee insisted that her harasser be fired or transferred as a condition for her continued employment ); see also Buchanan v. Sherrill, 51 F.3d 227, 229 (10th Cir.1995); Saxton v. American Telephone and Telegraph Co., 10 F.3d 526, 537 (7th Cir.1993) (transfer of harasser or victim to another location is sufficient remedy to avoid claim of constructive discharge); Dornhecker v. Malibu Grand Prix Corp., 828 F.2d 307, 310 (5th Cir.1987) (employee must be reasonable in allowing employer an opportunity to cure the problem before resigning).

In Dornhecker, the victim was harassed by a co-worker while on a business trip for her employer. Dornhecker was harassed by her co-worker’s conduct in, among other things, putting his hands on her hips, dropping his pants in public, and touching her breasts. While still on the trip, Dornhecker complained to the company president, who told her that she would not have to work with that employee after the conclusion of the business trip, which would last a day and a half longer. However, Dornhecker discontinued the trip and resigned. The Fifth Circuit concluded that she had not given her employer a reasonable opportunity to cure the situation and thus could not support her claim for constructive discharge.

Accordingly, the jury in the present case was called upon to determine whether the conditions at Borg-Wamer were so intolerable on September 7, 1993, that Flores reasonably felt compelled to resign on that day, under circumstances that would support her claim for constructive discharge. We must uphold the findings and judgment to that effect if more than a scintilla of evidence supports it. Stafford v. Stafford, 726 S.W.2d 14, 16 (Tex.1987). More than a scintilla of *874evidence exists.where the evidence supporting the finding, as a whole, rises to a level that would enable reasonable and fair-minded people to differ in their conclusions. Transportation Ins. Co. v. Moriel, 879 S.W.2d 10, 25 (Tex.1994).

At the time that Flores resigned, she had already continued to work from the time of the rape in mid-August to September 7, 1993. Flores never reported to Borg-Warner any of the acts of sexual harassment that Gonzales committed against her before that time, allegedly because she was aware that Borg-Warner had done nothing about similar complaints made by co-worker Patty Garcia.3 In addition, Flores claimed that she could not report the rape to Borg-Warner because Gonzales would always answer the telephone when she tried to call the office, and she was not aware of any other number to call, nor was she aware of anyone else to complain to.

However, on the same day that Flores’ report of the rape was conveyed to Richards, he contacted the regional office and provisions were made to put Gonzales on administrative leave and to allow Flores a few days off with pay. The only “intolerable condition” that Flores could complain about at that point was the failure of Borg-Warner to immediately terminate Gonzales as a result of her accusations. Flores chose to resign immediately, even though the situation had been temporarily stabilized by placing Gonzales on administrative leave.

The majority asserts that the term “administrative leave” was corporate personnel jargon which should not have stopped a reasonable person from resigning. I disagree. Although Borg-Warner apparently did not explain the conditions of Gonzales’ “administrative leave” to Flores, neither did she testify that she asked them what their plans or intentions were with regard to the investigation of her claims or Gonzales’ future employment with Borg-Warner. “Leave” certainly conveyed to Flores that Gonzales would not be working with her for some period of time. Whether such leave would be temporary or permanent would logically depend upon Borg-Warner’s ultimate determination concerning the complaints against Gonzales. Flores was clearly unwilling to wait for that determination.

Moreover, merely because one co-worker that Flores was aware of had complained about sexual harassment in the past and been ignored was not a sufficient reason for her to assume that nothing would come of her own complaint that Gonzales had raped her, especially in view of the fact that the report generated an immediate response from Borg-Warner to remove Gonzales from the scene. The focus, for purposes of constructive discharge, is not on what Borg-Warner did with regard to complaints by. other employees in the past, but rather what actions it took to. address Flores’ complaint just before she chose to resign. Flores’ complaint did reach management officials at Borg-Warner and she was aware that they were in the process of responding to it. At that point, she could no longer reasonably claim that, because it had done nothing about a particular sexual harassment complaint against Gonzales in the past, Borg-Warner would do nothing about her complaint. In short, Flores must be reasonable in allowing her employer to respond to her complaint.

I conclude that the immediate removal of Gonzales from the workplace was, as a matter of law, a reasonable enough response from Borg-Warner to deny Flores’ claim that the continuation of “intolerable conditions” (i.e., sexual harassment in this case) forced her to resign. At that point, she was at least under a duty to retain her position until more permanent solutions to the problem could be explored. See Knabe; Kilgore; Dornhecker.

*875Accordingly, I would hold that Flores failed to present legally or factually sufficient evidence to support her claim of constructive discharge and would sustain Borg-Warner’s third point of error. I would reverse that portion of the judgment awarding damages to Flores for lost wages on the theory of constructive discharge.

. Gonzales is not a party to the instant appeal.

. In order to show a prima facie case of employment discrimination, the plaintiff must generally show 1) that he was a member of a protected class, 2) that he suffered an adverse employment action (e.g., termination or discharge), and 3) that non-protected class employees were not treated similarly. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 801-03, 93 S.Ct. 1817, 1824, 36 L.Ed.2d 668 (1973); Rios v. Texas Commerce Bancshares, Inc., 930 S.W.2d 809, 818 (Tex.App.—Corpus Christi 1996, writ denied).

. Garcia testified to an incident in which Gonzales had cornered her in an office, started touching her breasts, leaning against her, and attempted to kiss her, until she pushed him back. Garcia testified that she told Richards in July 1993 that she had been sexually harassed and that Gonzales had been asking her out on dates, but did not mention Gonzales’ grabbing her breasts. In July 1993, Garcia also spoke to a Mr. Mullins in the San Antonio office about the sexual harassment by Gonzales. Both Richards and Mullins asked Garcia to make a written statement, which she did and delivered it to Richards. However, nothing was done about Garcia's complaints.