|
COURT
OF APPEALS
SECOND DISTRICT OF TEXAS
FORT WORTH
NO. 2-08-236-CV FORT
WORTH TRANSPORTATION
APPELLANTS AUTHORITY
AND MCDONALD TRANSIT,
INC.
V.
------------
FROM THE 352ND DISTRICT COURT OF TARRANT
COUNTY
------------
OPINION
------------ Introduction Appellants
Fort Worth Transportation Authority (FWTA) and McDonald Transit, Inc.
appeal the trial court=s
order granting appellee Ricky C. Thomas=s
motion for summary judgment in this breach of contract case.
In two issues, appellants contend that the trial court
improperly granted Thomas=s
summary judgment motion because he failed to exhaust contractual
remedies before filing his lawsuit and because a collective bargaining
agreement unambiguously permitted the termination of his employment.
We affirm. Background
Facts Thomas=s
employment with appellants Thomas
began working for appellants[1]
as a bus driver in January 1989. He injured his back in 2001 and was
unable to work for an extended period of time.
Thomas requested and received twelve weeks=
leave under the federal Family and Medical Leave Act (FMLA),[2]
from July 13 through October 3, 2001.
Appellants classified Thomas=s
absences on his Operator Work Record as AFMLA@
from July 13 through October 3, 2001.
One of appellants=
employees wrote in an e-mail on October 3, 2001, that A[t]oday
is the last day of FMLA for Ricky.
Starting tomorrow, 10/4, he is just out sick.@
Appellants thereafter changed the classification of Thomas=s
absences on his Operator Work Record to Aill/sickness@
beginning October 4, 2001. While
he was unable to work, Thomas collected workers=
compensation benefits and received a series of approximately seven
injections as treatment for his back injury.
Thomas was initially released to return to work in April 2002,
but appellants did not allow him to return to work because he failed
an April 16, 2002 performance evaluation.[3]
In the interim, Thomas received a verbal warning, on April 5,
and a written warning, on April 30, regarding his absences.
The written warning stated, in part, AYou
now have 146 absences. Please
keep in contact with the >T=
every two weeks.@
Appellants
terminated Thomas=s
employment by letter dated August 1, 2002.
The letter cited a provision in a Union Contract Agreement[4]
that required automatic termination for an absence from work lasting
greater than one year when such an absence was caused by anything
other than military leave. Thomas
filed a grievance with appellants on August 5, 2002, asking for
reinstatement because he alleged that his performance evaluation was
not required for all of appellants=
employees. Appellants
denied the grievance four days later.
Thomas proceeded through two more unsuccessful steps in the
grievance process,[5]
and the union did not thereafter pursue arbitration on his behalf.
The
CBA and the Operator Handbook Effective
October 1, 2000, appellants entered into the CBA with Teamsters Local
Union No. 997.[6]
The provision in Article 20 under which appellants terminated
Thomas=s
employment states in relevant part: Athe
following shall be cause for immediate dismissal without prior
warnings: . . . being on light duty status and/or absence [sic] from
work for any reason other than military leave for a period of more
than one (1) year.@[7]
Appellants
also issued employees an Operator Handbook, effective July 2001.
The Operator Handbook included, among other things, appellants=
FMLA and attendance control policies.
Concerning FMLA leave, the
Operator Handbook stated: AThe
T complies with the Family and Medical Leave Act (FMLA) for serious
health problems@
and that A[a]s
with holidays, vacation leave, personal days, funeral leave and jury
duty, FMLA is not counted as absenteeism.@
The
attendance control policy in the Operator Handbook stated that it
should be Aconstructed
[sic] in accordance with@
the CBA and outlined a progressive disciplinary process for excessive
absenteeism. The Operator
Handbook also specifically defined Aabsence@
under its attendance control policy: Definition
of AAbsence@ The
term Aabsence@
means every absence from work, regardless of the reason, except for
the following: 1.
vacations 2.
holidays 3.
floating
holiday 4.
jury
duty 5.
court
appearance as defined in Article 37 of the labor
agreement 6.
military
leave 7.
approved
union business 8.
approved
bereavement 9.
approved administrative leave 10.
leave of
absence approved under Article 19 11.
absences
protected by the Family and Medical Leave Act of
1993 12.
absent from
assigned work for no more than sixty (60)
minutes [Emphasis added.] The
proceedings in the trial court Thomas
filed suit against appellants in January 2003, alleging in his
original petition that they violated Texas labor laws when they
terminated his employment. Thomas
filed a second amended petition in August 2006 that included a breach
of contract claim and claims of retaliation and discrimination under
the labor code.[8]
Thomas
filed a motion for summary judgment in November 2007, contending that
appellants breached the CBA.[9]
Thomas argued that because the Operator Handbook=s
definition of Aabsence@
excluded FMLA leave, he was actually Aabsent@
for less than one year; appellants therefore breached the CBA by
terminating his employment when they did.
Appellants responded to Thomas=s
summary judgment motion by asserting that his contractual claim was
precluded because he did not seek arbitration before bringing suit,
that the Operator Handbook could not be treated as a contract, and
that the CBA justified his termination.
The trial court granted Thomas=s
summary judgment motion in January 2008.
Thomas then nonsuited his other claims, and appellants timely
filed their notice of appeal. Standard
of Review We
review the trial court=s
grant of summary judgment de novo.
See Gray v. Nash, 259 S.W.3d 286, 289 (Tex. App.CFort
Worth 2008, pet. denied). A
plaintiff is entitled to summary judgment on a cause of action if it
conclusively proves all essential elements of the claim.
See Tex. R. Civ. P. 166a(a), (c); MMP, Ltd. v. Jones,
710 S.W.2d 59, 60 (Tex. 1986). In
other words, the plaintiff meets the summary judgment burden by
establishing that no genuine issue of material fact exists and that it
is entitled to judgment as a matter of law.
Tex. R. Civ. P. 166a(c); Sw. Elec. Power Co. v. Grant, 73
S.W.3d 211, 215 (Tex. 2002); City of Houston v. Clear Creek Basin
Auth., 589 S.W.2d 671, 678 (Tex. 1979). When
reviewing the trial court=s
grant of a plaintiff=s
summary judgment motion, we take as true all evidence favorable to the
defendant, and we indulge every reasonable inference and resolve any
doubts in the defendant=s
favor. See IHS Cedars
Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 143 S.W.3d
794, 798 (Tex. 2004). Evidence
that favors the plaintiff=s
position will not be considered unless it is uncontroverted.
See Great Am. Reserve Ins. Co. v. San Antonio Plumbing
Supply Co., 391 S.W.2d 41, 47 (Tex. 1965).
However, we must consider whether reasonable and fair-minded
jurors could differ in their conclusions in light of all of the
evidence presented. See
Wal-Mart Stores, Inc. v. Spates, 186 S.W.3d 566, 568 (Tex. 2006); City
of Keller v. Wilson, 168 S.W.3d 802, 822B24
(Tex. 2005). Summary
judgment is proper where, as here, the parties do not dispute the
relevant facts. Havlen
v. MacDougall, 22 S.W.3d 343, 345 (Tex. 2000). Exhaustion
of Contractual Remedies In
their first issue, appellants contend that the trial court=s
summary judgment was improper because Thomas waived his breach of
contract claim by failing to fully comply with the CBA=s
grievance procedure. Specifically,
appellants assert that Thomas failed to pursue arbitration after the
three-step grievance procedure, thus waiving his breach of contract
claim. Thomas contends,
in response, that the CBA specifically exempts Amanagement
rights@
from mandatory arbitration and that the decision to terminate Thomas=s
employment was one of the Amanagement
rights.@[10]
AWhere
there is a labor contract between a union and an employee which
provides procedures for settlement of disputes between the employee
and employer, an employee is not entitled to redress in the courts
where he fails to exhaust his remedies under the contract.@
Lindsey v. Gen. Dynamics Corp., 450 S.W.2d 895, 895B96
(Tex. Civ. App.CWaco
1970, no writ); see Int=l
Union United Auto. Aerospace & Agric. Implement Workers of Am.
Local 119 v. Johnson Controls, Inc.,
813 S.W.2d 558, 565 (Tex. App.CDallas
1991, writ denied) (op. on reh=g)
(indicating that claims may be barred because of a plaintiff=s
failure to comply with the grievance process in a collective
bargaining agreement); Roberts v. City of Corpus Christi, 744
S.W.2d 214, 215B16
(Tex. App.CCorpus
Christi 1987, no writ) (A[A]n
employee generally must exhaust the grievance remedies provided for in
a collective bargaining agreement or other contract before bringing
suit.@).
Here, Article 12 of the CBA indicates that Aany
controversy@
concerning the application of any of the CBA=s
provisions Ashall
be treated as a grievance and shall be settled, if possible.@
Appellants relied on a provision of the CBA to justify Thomas=s
termination, and Thomas has contested the application of this section;
thus, his complaints were subject to the CBA=s
grievance procedure.
The
parties agree that Thomas proceeded through the three steps of the CBA=s
grievance process described above.
They also agree that the union did not demand arbitration
following the three-step grievance process.
Thomas asserts, however, that his discharge was not subject to
arbitration under the CBA. We
agree. Article
13 (titled AArbitration@),
Section A of the CBA provides: AShould
any grievance remain unsettled after exhausting [the three-step
grievance procedure], either party hereto shall, if the party desires,
demand arbitration . . . .
Otherwise, the grievance shall be considered settled.@
However, Article 13, Section C of the CBA states in part, AIssues
arising out of the exercise of the rights reserved to management under
the title Rights of Management above, including management=s
determination of the facts underlying its exercise of such rights,
shall not be subject to arbitration.@
Article 3 of the CBA, titled AManagement
Rights,@[11]
states, Except
to the extent expressly abridged by a specific provision of [the CBA],
the Company reserves and retains, solely and exclusively, all of its
Common Law rights to manage its business, as such rights existed prior
to the execution of [the CBA]. Prominent
among such unqualified rights . . . are the following: . . .
to hire, lay-off, assign, transfer, and promote employees . . .[;] to
adopt and enforce working rules; to discipline and discharge
employees for just cause.[12]
[Emphasis added.]
We
conclude that the unambiguous cumulative effect of Article 13, Section
C and Article 3 is that appellants=
Aunqualified@
decision to discharge Thomas based on what they allege was just cause
under the CBA was not subject to arbitration because this decision was
one of their AManagement
Rights.@
Therefore, we hold that Thomas complied with the Article 12
grievance procedure, although not successfully demanding arbitration,
by proceeding through all three grievance steps and that the CBA did
not require Thomas to also seek arbitration.[13]
We overrule appellants=
first issue. Thomas=s
Discharge Under the CBA and
the Operator Handbook In
their second issue, appellants argue that the trial court improperly
granted summary judgment because the Operator Handbook should not have
been considered to alter the CBA=s
unambiguous language. Thomas
argues that the definition of Aabsence@
in the Operator Handbook, which excludes FMLA leave from an Aabsence,@
must be considered with Article 20 of the CBA because the CBA does not
define Aabsence.@[14]
Neither party argues that the CBA is ambiguous.
Instead, they offer competing contentions as to whether the
definition of Aabsence@
in the Operator Handbook may be considered when interpreting Article
20 of the CBA. Lack
of clarity or a disagreement among the parties does not necessarily
create an ambiguity. See
Universal Health Servs., Inc. v. Renaissance Women=s
Group, P.A.,
121 S.W.3d 742, 746 (Tex. 2003).
Rather, whether Aa
contract is ambiguous is a question of law that must be decided by
examining the contract as a whole in light of the circumstances
present when the contract was entered.@
Id. When
construing contracts and other written instruments, our primary
concern is to ascertain the true intent of the parties as expressed in
the instrument. See NP
Anderson Cotton Exch., L.P. v. Potter, 230 S.W.3d 457, 463 (Tex.
App.CFort
Worth 2007, no pet.); see also City of San Antonio v. Scott, 16
S.W.3d 372, 377 (Tex. App.CSan
Antonio 1999, pet. denied) (applying general principles of contract
construction to the interpretation of a collective bargaining
agreement). To ascertain
the parties=
intent, we may consider together all writings relating to the same
transaction, even if they were executed at different times.
DeWitt County Elec. Coop., Inc. v. Parks, 1 S.W.3d 96,
102 (Tex. 1999). We must
examine and consider the entire contract in an effort to harmonize and
give effect to all provisions so that none are rendered meaningless.
Potter, 230 S.W.3d at 463; see also J.M. Davidson,
Inc. v. Webster, 128 S.W.3d 223, 229 (Tex. 2003).
AWe
construe contracts >from
a utilitarian standpoint bearing in mind the particular business
activity sought to be served=
and >will
avoid when possible and proper a construction which is unreasonable,
inequitable, and oppressive.=@
Frost Nat=l
Bank v. L & F Dist., Ltd.,
165 S.W.3d 310, 312 (Tex. 2005) (quoting Reilly v. Rangers
Mgmt., Inc., 727 S.W.2d 527, 530 (Tex.1987)).
AIf,
after the pertinent rules of construction are applied, the contract
can be given a definite or certain legal meaning, it is unambiguous
and we construe it as a matter of law.@
Id. (citing Webster, 128 S.W.3d at 229). To
resolve appellants=
second issue, we must determine whether the parties intended to exempt
FMLA leave from a one-year absence under Article 20 of the CBA.
The provision at issue permits termination of employment for an
absence exceeding one year and specifically exempts military leave; it
does not expressly reference FMLA leave.
In fact, the CBA does not define Aabsence@
and does not set forth appellants=
FMLA policy. Appellants=
FMLA policy and a definition of Aabsence@
are instead contained in the Operator Handbook.[15]
The question, then, is whether the Operator Handbook should be
considered with the CBA to determine if Thomas=s
Aabsence@
exceeded one year. AUnder
generally accepted principles of contract interpretation, all writings
that pertain to the same transaction will be considered together, even
if they were executed at different times and do not expressly refer to
one another.@
Parks, 1 S.W.3d at 102.
The CBA became effective October 1, 2000, and the Operator
Handbook is dated July 2001, so they were not contemporaneously
executed. They may
nevertheless be considered together if they relate to the same
transaction and the surrounding circumstances do not indicate that
they should not be considered together.
Id.; see also Miles v. Martin, 321 S.W.2d 62, 65
(Tex. 1959). The
CBA set forth the agreements between appellants and the union with
regard to the terms and conditions of employment for the union=s
members. It addressed,
among other things, rights reserved to management, strikes and
lockouts, uniforms, work schedules, discipline, termination for Ajust
cause,@
and grievance procedures. The
Operator Handbook similarly set forth appellants=
personnel policies, generally with more specificity than the CBA, and
included policies relating to employee benefits, health and safety,
FMLA leave, and absenteeism. The
Operator Handbook referenced the CBA, and its attendance control
policy provided that it was to be Aconstructed
[sic] in accordance with@
the CBA. Under the
circumstances of this case, the CBA and the Operator Handbook related
to the same transaction because they set forth the terms and
conditions of Thomas=s
employment with appellants. We
must next consider whether the surrounding circumstances prevent the
CBA and the Operator Handbook from being considered together.
In this regard, the CBA stated in Article 42: AThis
Agreement together with its Exhibits constitutes the only agreement
between the parties hereto, and no previous addenda,
memoranda[,] understandings or practices, whether written or oral,
shall be binding upon either party.@[16]
[Emphasis added.] The CBA
did not, however, state that subsequent documents, such as the
Operator Handbook, cannot be considered with the CBA.
The Operator Handbook, on the other hand, stated that its
attendance control program was Aintended
to be and should be constructed [sic] in accordance with@
the CBA and any successor CBAs. The
Operator Handbook also stated, however, that A[i]t
is not an employment contract,@
that it Ais
not intended to create contractual obligations of any kind,@
and that it is Anot
intended to disagree in word or intent with the current Labor
Agreement.@
Even though the Operator Handbook does not purport to create
contractual rights, we find that we may consider its terms in
determining whether the parties intended to exempt FMLA leave from the
provision in Article 20 under which appellants terminated Thomas=s
employment. The CBA and
the Operator Handbook related to the same transaction, and their terms
do not clearly prevent them from being considered together.
See Parks, 1 S.W.3d at 102; Miles, 321 S.W.2d at
65. Thus, we will
consider the CBA and Operator Handbook together to determine the
parties=
intent with respect to FMLA leave and absences exceeding one year.[17] Appellants
terminated Thomas=s
employment under the provision in Article 20 that states: Athe
following shall be cause for immediate dismissal without prior
warnings: . . . being on light duty status and/or absence [sic] from
work for any reason other than military leave for a period of more
than one (1) year.@
The provision does not expressly exempt FMLA leave from an
absence justifying termination.[18]
However, the Operator Handbook states: AThe
T complies with the Family and Medical Leave Act (FMLA) for serious
health problems.@
The Operator Handbook also provides that A[a]s
with holidays, vacation leave, personal days, funeral leave and jury
duty, FMLA is not counted as absenteeism.@
[Emphasis added.] The
Operator Handbook further defines Aabsence@
as Aevery
absence from work, regardless of the reason, except for the following:
. . . (11) absences protected by the Family and Medical Leave Act of
1993.@[19]
Considering the CBA and the Operator Handbook together, we
conclude that FMLA leave cannot be counted as an Aabsence@
under Article 20 of the CBA when terminating an employee for an
absence exceeding one year.[20] Based
on the foregoing, we hold that Article 20 of the CBA must be
interpreted to exclude FMLA leave when calculating whether Thomas was
absent from work for more than one year.
The summary judgment evidence establishes that Thomas first
missed work on July 13, 2001, when his FMLA leave began, and that his
FMLA leave ended on October 3, 2001.
The summary judgment evidence also establishes that appellants
terminated Thomas=s
employment on August 1, 2002. Excluding
Thomas=s
FMLA leave, Thomas was actually Aabsent@
from work for less than one year when appellants terminated his
employment on August 1, 2002. Appellants
therefore breached the CBA by terminating Thomas=s
employment when they did. The
trial court properly granted summary judgment to Thomas on his breach
of contract claim. We
overrule appellants=
second issue. Conclusion Having
overruled each of appellants=
issues, we affirm the judgment of the trial court. ANNE
GARDNER JUSTICE PANEL:
LIVINGSTON, DAUPHINOT, and GARDNER, JJ. LIVINGSTON,
J. filed a dissenting opinion. DELIVERED:
October 29, 2009
COURT OF
APPEALS
SECOND DISTRICT OF TEXAS
FORT WORTH
NO. 2-08-236-CV FORT
WORTH TRANSPORTATION
APPELLANTS AUTHORITY
AND MCDONALD TRANSIT,
INC.
V. RICKY
C. THOMAS
APPELLEE
------------
FROM THE 352ND DISTRICT COURT OF TARRANT COUNTY
------------
DISSENTING
OPINION
------------ The
majority holds that a unilateral, nonbargained employee handbook may
create contractual rights (thus serving as the basis of a breach of
contract claim) and alter the unambiguous language of a collective
bargaining agreement (CBA) even though the handbook specifically and
plainly says that it cannot do so.
For this and other reasons, I respectfully dissent. The
CBA unambiguously required the immediate termination of Thomas=s
employment if he was absent Afrom
work for any reason other than military leave for a period of
more than one (1) year.@
[Emphasis added.] The
undisputed evidence shows that Thomas did not work from July 2001
until August 2002 (a period of more than one year) and that he did not
take military leave. Despite
the evident justification for Thomas=s
termination when connecting those facts, the majority holds that
Thomas may succeed on his sole claimCwhich
must focus on a breach of the CBA itself, the only agreement
between the partiesCbecause
his twelve weeks=
leave under the federal Family and Medical Leave Act (FMLA) must
expand the one-year absence limitation.
See Majority op. at 18.[21]
The record and the law preclude the majority=s
holding for several reasons. First,
although the majority correctly explains that in some circumstances
documents related to the same transaction may be considered
together, we should not rely on that manner of construction when the
documents themselves prohibit such reliance. See
Jones v. Kelley, 614 S.W.2d 95, 99 (Tex. 1981) (explaining that
the principle of construing writings together is a Adevice
for ascertaining and giving effect to the intention of the parties and
cannot be applied arbitrarily and without regard to the realities of
the situation@)
(quoting Miles
v. Martin,
159 Tex. 336, 341, 321 S.W.2d 62, 65 (1959)). Here,
the handbook indicates that it does not enlarge
collectively‑bargained provisions; its first textual page states
that it is intended
to provide employees with a general understanding of [appellants=]
personnel policies. Employees
are encouraged to familiarize themselves with the contents of the
handbook, as it will answer many common questions concerning
employment with [appellants]. However,
this handbook cannot anticipate every situation or answer every
question about employment. It
is not an employment contract and it is not intended to create
contractual obligations of any kind. . . . .
. . These policies
and/or benefits are not intended to disagree in word or intent with
the current Labor Agreement. [Emphasis added.] Other
parts of the CBA and the handbook also weigh against the majority=s
conflated construction of those two documents.
For instance, while the CBA references work rules and rule
books, it limits an employee=s
duty to follow such provisions to Arules
and regulations of [appellants] which are not in conflict with [the
CBA],@
which dictates the superiority of the CBA=s
provisions. Also, the CBA=s
reference to such rules does not provide that any definitions from the
rules should be incorporated into the CBA=s
provisions. The CBA
further states that it is the Aonly
agreement between the parties.@
Finally, although the handbook indicates that it is to be
construed in accordance with the CBA in use at the time of Thomas=s
termination, it does not state the inverseCthat
the CBA is to be construed in accordance with the handbook.
Second,
as the majority recognizes, our precedent establishes that as a
general rule, employee handbooks and policy manuals constitute general
guidelines in the employment relationship and do not create implied
contracts between the employer and employee that alter the at-will
employment relationship. Majority
op. at 16; see Brown v. Sabre, Inc., 173 S.W.3d 581, 585 (Tex.
App.CFort
Worth 2005, no pet.) (describing that the rule particularly applies
where, as here, Aa
specific disclaimer in the employee handbook warns the employee that
the manual is intended to provide guidelines only, and does not create
contractual rights@);
see also Fed. Exp. Corp. v. Dutschmann, 846 S.W.2d 282, 283
(Tex. 1993); Day & Zimmermann, Inc. v. Hatridge, 831 S.W.2d
65, 69 (Tex. App.CTexarkana
1992, writ denied) (explaining that A[u]nder
Texas law . . . a statement of company policy, unaccompanied by an
express agreement, does not create contractual rights@).
In the same way, although Thomas=s
employment was not at-will, the handbook should not be construed to
alter the provisions of the collectively-bargained contract on which
Thomas bases his claim without an expressed intention to do so.
The majority has failed to explain why the precept that guided
our decision in Brown, that unilateral employment
manuals cannot per se constitute written employment contracts, should
not also apply to the ability of such manuals to alter preexisting
contractual employment relationships.
See Brown, 173 S.W.3d at 586 (citing Aiello v. United
Air Lines, Inc., 818 F.2d 1196, 1198 (5th Cir. 1987)). Third,
Thomas=s
argument that the handbook=s
Aabsence@
definition should be incorporated into the CBA to excuse FMLA leave
does not make sense when considering the CBA=s
specific and limited designation of military leave as an excused
absence because military leave is also excluded as an absence in the
handbook. In other words,
if appellants and Thomas=s
union had intended to add FMLA leave to an Aabsence@
lasting greater than one year in the CBA by tacitly incorporating the
handbook=s
definitional provision, there would be no need to specifically mention
military leave in the CBA, which is also excluded in that same
definitional provision. If
that had been their intent, the specific mention of military leave in
the CBA=s
termination provision would amount to unnecessary surplusage.
And, of course, by the majority=s
decision that indicates its opinion of the contracting parties=
intent to tacitly incorporate the handbook into the CBA, the Afor
any reason other than military leave@
phrase in the CBA=s
termination provision is rendered wholly inconsequential.
Thus, the majority=s
decision to alter the CBA=s
language by the handbook=s
provisions defeats its stated goal of giving effect to Aall
provisions so that none are rendered meaningless.@
Majority op. at 13; see NP Anderson Cotton Exch., L.P. v.
Potter, 230 S.W.3d 457, 463 (Tex. App.CFort
Worth 2007, no pet.). For
the same reason, the decision also weighs against the entitlement
of parties to a contract to select their own obligationsCrather
than having a court create obligations for themCby
carefully choosing the words they select to include in the contract.[22]
See Doe v. Tex. Ass=n
of Sch. Bds., Inc.,
283 S.W.3d 451, 458 (Tex. App.CFort
Worth 2009, pet. filed) (citing Cross Timbers Oil Co. v. Exxon
Corp., 22 S.W.3d 24, 26 (Tex. App.CAmarillo
2000, no pet.)). Fourth,
the majority=s
decision that the handbook adds an employee=s
FMLA leave to the one-year limitation in the CBA makes even less sense
when considering the other types of leave that are mentioned in the
handbook and are also necessarily added to the one-year period under
the majority=s
reasoning, such as holidays and vacations.
The CBA provides appellants=
employees with eleven holidays. Because
Thomas had been employed by appellants for more than nine years, he
also received three weeks=
paid vacation. Thus,
under the majority=s
reasoning, when considering Thomas=s
twelve weeks of FMLA leave, his more than two work weeks of combined
holidays, and his three weeks of vacation, appellants could not have
terminated Thomas=s
employment until more than seventeen weeks (about four months), at a
minimum, had passed after he had already been unable to work for a
year. Appellants would
then have to further add to that time any days off related to his jury
duty, bereavement or administrative leave, or
Aapproved
union business.@
As can be seen, the majority=s
decision has turned a simple phraseCAabsence
from work for any reason other than military leave for a period of
more than one (1) year@Cinto
a mathematical enigma that could justify Thomas=s
absence from work for close to a year and a half.
Finally,
the majority=s
holding that the handbook adds to the CBA=s
contractual language becomes further strained when considering that in
the handbook, appellants Areserve[d]
the right to change, revise, or eliminate any of the [handbook=s]
policies.@
Under the majority=s
reasoning, although FMLA leave must be added to the CBA=s
one-year limitation today, it may not be added to that limitation
tomorrow if appellants choose to modify the handbook.
Such fluidity is obviously at odds with our task of
interpreting the parties=
contractual bargain. See
Gamble v. Gregg County, 932 S.W.2d 253, 255 (Tex. App.CTexarkana
1996, no writ) (indicating that an employee handbook does not express
an intent to vest contractual rights when it Aexpressly
provides that the [employer] may unilaterally change the policies and
practices@);
Ryan v. Superior Oil Co., 813 S.W.2d 594, 596 (Tex. App.CHouston
[14th Dist.] 1991, writ denied) (holding that a vacation plan that
stated that it could Abe
terminated or modified at any time@
did not create a contractual obligation). For
all of these reasons, the handbook, as a matter of law, cannot enlarge
or modify the CBA=s
provisions, and it cannot serve as the basis for Thomas=s
breach of contract claim. And even
if the handbook=s
provisions created doubt on interpreting the CBA=s
termination language, the majority should have resolved those doubts
in appellants=
favor. See IHS Cedars
Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 143 S.W.3d 794, 798
(Tex. 2004). Because
the trial court improperly granted summary judgment on Thomas=s
claim for breach of the CBA, I would sustain appellants=
second issue and reverse this case.
Because the majority affirms the trial court, I respectfully
dissent. TERRIE
LIVINGSTON JUSTICE DELIVERED:
October 29, 2009 [1]McDonald
manages the public transportation bus system owned by FWTA, which is
a political subdivision of the state.
McDonald and FWTA do not argue on appeal that their liability
should be considered separately.
Thus, we refer to McDonald and FWTA, collectively, as
appellants. [2]See
29
U.S.C.A. ''
2601B2654
(West 2009). The FMLA
guarantees qualifying employees twelve weeks of unpaid leave each
year for disabling health problems, family members=
serious illnesses, or the birth of a new son or daughter; employers
are prohibited from interfering with such leave.
See Ragsdale v. Wolverine World Wide, Inc., 535
U.S. 81, 84B86,
122 S. Ct. 1155, 1158B60
(2002). [3]Thomas
again failed a performance evaluation in June 2002. [4]The
parties refer to this agreement as a collective bargaining
agreement, and we will refer to the agreement as the ACBA@
in this opinion. [5]During
the grievance process, appellants gave Thomas another opportunity to
pass the performance evaluation and be reinstated.
It is unclear from the record whether Thomas accepted
appellants=
offer to retake the performance evaluation. [6]Thomas
affirmed during deposition testimony that he was a member of this
union; he also filed an affidavit stating that he was Acovered
by the [CBA].@
[7]Appellants
have maintained throughout the proceedings in the trial court and on
appeal that this provision of the CBA was the sole basis of the
termination of Thomas=s
employment. [8]Thomas=s
only pleaded theory of recovery at this time is his theory that
appellants breached the terms of the CBA.
Thomas nonsuited all of his other claims. [9]Thomas
also sought summary judgment on his discrimination claim, but the
trial court denied the motion as to that claim.
Thomas does not challenge that ruling in this appeal. [10]Appellants
contended in their reply brief and at oral argument that Thomas
failed to assert the AManagement
Rights@
exclusion from the arbitration requirement in the trial court and
that this exclusion cannot be raised for the first time on appeal.
We disagree. The
record indicates that Thomas raised the AManagement
Rights@
issue in his reply to appellants=
response and objections to his amended summary judgment motion. [11]While
there is no provision of the CBA titled ARights
of Management@
as denoted by Article 13, Section C, we conclude that Article 3,
pertaining to AManagement
Rights,@
is the title to which Article 13, Section C refers. [12]Appellants
have not asserted that any provision of the CBA expressly abridged
its Amanagement
right@
to discharge Thomas=s
employment. [13]Thomas
also contends that appellants forfeited any right to arbitration by
violating the grievance procedure and by their litigation conduct
and that any failure to arbitrate was harmless error.
Because we conclude that the arbitration requirement did not
apply to Thomas=s
discharge, we do not address these other assertions.
[14]Thomas
also argues on appeal that his FMLA leave cannot be counted as an Aabsence@
under Article 20 because doing so violates the FMLA.
Because A[t]he
assertion of new grounds before the appellate court in support of
summary judgment may prejudice the nonmovant=s
ability to demonstrate that the issue raises a genuine issue of
material fact,@
we cannot affirm a summary judgment Aon
grounds not expressly set out in the motion or response.@
Stiles v. Resolution Trust Corp., 867 S.W.2d 24, 26
(Tex. 1993). Thomas did
not include this argument in his amended motion for summary judgment
or in any other document filed with the trial court.
Thomas cited the applicable federal regulation, 29 C.F.R. '
825.220 (2009), in his reply to appellants=
response and objections to his first amended motion for summary
judgment, but only for the proposition that he was not required to
arbitrate his claim against appellants.
We are therefore prohibited from affirming the summary
judgment on this ground. See
Stiles, 867 S.W.2d at 26; Franco v. Slavonic Mut. Fire Ins.
Ass=n,
154 S.W.3d 777, 786 (Tex. App.CHouston
[14th Dist.] 2004, no pet.). [15]Federal
law requires appellants to include their FMLA policies in the
Operator Handbook. See
29 C.F.R. '
825.300(a)(1), (3) (West 2009) (requiring FMLA-covered employers to
provide its eligible employees with a notice explaining the
provisions of the FMLA and to Ainclud[e]
the notice in employee handbooks . . . if such written materials
exist@). [16]This
type of contractual provision is commonly referred to as a Amerger
clause.@
AMerger
occurs when the same parties to an earlier agreement later enter
into a written integrated agreement covering the same subject
matter.@
Texas A&M Univ.BKingsville
v. Lawson,
127 S.W.3d 866, 872 (Tex. App.CAustin
2004, pet. denied). This
merger clause does not prevent consideration of the Operator
Handbook because the CBA pre-dates the Operator Handbook. [17]Our
precedent establishes that as a general rule, employee handbooks and
policy manuals constitute general guidelines in the employment
relationship and do not create implied contracts between the
employer and employee that alter the at-will employment
relationship. Brown
v. Sabre, Inc., 173 S.W.3d 581, 585 (Tex. App.CFort
Worth 2005, no pet.). Our
decision today does not conflict with Brown.
Thomas was not an at-will employee; the CBA governed the
terms and conditions of his employment with appellants.
And, contrary to the dissent=s
characterization of our holding, we do not say that the Operator
Handbook created contractual rights.
We consider the CBA with the Operator Handbook only to
determine the intent of the parties concerning FMLA leave in the
context of Article 20 of the CBA. [18]This
provision also does not exempt bereavement leave from an absence
justifying termination, but we note that Article 36 of the CBA
provides: AEmployees
taking approved bereavement leave shall not be charged with an
absence.@
[19]There
is no dispute in this case that Thomas was in fact eligible for
leave under appellants=
FMLA policy as stated in the Operator Handbook. [20]Although
Aa
court may conclude that a contract is ambiguous even in the absence
of such a pleading by either party,@
McCreary v. Bay Area Bank & Trust, 68 S.W.3d 727,
730B31
(Tex. App.CHouston
[14th Dist.] 2001, pet. dism=d),
we do not find that the CBA is ambiguous.
Instead, after applying the pertinent rules of construction
and considering the CBA and the Operator Handbook together, we find
that the provision in Article 20 under which Thomas was terminated
is susceptible to only one reasonable interpretation:
FMLA leave cannot be counted as an absence when terminating
an employee for an absence exceeding one year. [21]As
the majority explains, Thomas relies on portions of the handbook
that state that FMLA leave is Anot
counted as absenteeism@
and exclude FMLA leave from the handbook=s
definition of Aabsence.@
Majority op. at 18. Those portions of the handbook are
relevant to the handbook=s
Attendance Control Program, which sets forth increasing disciplinary
actions for employees accumulating several absences during a rolling
twelve‑month period. The
program does not explicitly relate to absences lasting longer than
one year, as does the CBA. [22]In
accordance with that entitlement, the CBA expresses that in crafting
that document, Thomas=s
union and appellants each Ahad
the unlimited right and opportunity to make demands and proposals
with respect to all proper subjects of collective bargaining and
that all such subjects [had] been discussed and negotiated upon and
the agreements contained in this contract [had been arrived upon]
after the free exercise of such rights and responsibilities.@
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