Opinion ID: 10011
Heading Depth: 2
Heading Rank: 2

Heading: The City of Dallas

Text: The district court found that the City was jointly and severally liable with Rollins and Hatler for $175,000 in mental anguish damages under § 1983, or alternatively, the City was liable under the 6 Whistleblower Act for those damages. The City now appeals its liability under both statutes. We determine that the City is liable under the Whistleblower Act. That Act provides: A state or local governmental body may not suspend or terminate the employment of, or otherwise discriminate against, a public employee who reports a violation of law to an appropriate law enforcement agency if the employee report is made in good faith. TEX.REV.CIV.STAT.ANN. art. 6252-16a § 2 (1992).3 To establish a whistleblower claim, an employee must demonstrate that (a) the employee reported an alleged violation of law to an appropriate law enforcement authority; (b) the employee made the report in good faith; (c) the employer took an adverse employment action against the employee because the employee made the report; and (d) the employer's action proximately caused the employee's injuries. Wichita County v. Hart, 892 S.W.2d 912, 920-24 (Tex.App.—Austin 1994), reversed on other grounds, 917 S.W.2d 779 (Tex.1996). In the instant case, it is undisputed that Forsyth and Kirks reported alleged violations of law in good faith to an appropriate law enforcement agency. We have already determined that the making of the reports led to plaintiffs' transfers and that Forsyth and Kirks were thereby damaged. The only disputed issue is whether the Whistleblower Act prohibited the DPD from transferring Forsyth and Kirks. The City contends that the Whistleblower Act did not prohibit the transfers; it argues that the transfers do not constitute demotions because Forsyth and Kirks suffered no decrease in pay, and that, in any case, demotions are not covered by the Act. We reject both of the City's arguments. First, the evidence established that Forsyth's and Kirks's transfers constituted demotions. Second, Texas courts have held that the phrase or otherwise discriminate against in the Act prohibits an employer from demoting a whistleblowing employee. City of Brownsville v. Pena, 716 S.W.2d 677, 680 (Tex.App.—Corpus Christi 1986); City of Beaumont v. Bouillion, 873 S.W.2d 425, 445 (Tex.App.—Beaumont 1993), reversed on other grounds, 896 S.W.2d 143 (Tex.1995). Further, we 3 In September 1993, the Whistleblower Act was amended and recodified, TEX.GOVT.CODE §§ 554.001-.009 (West Supp.1996). 7 point out that the Texas legislature has since amended the Whistleblower Act to clarify that it covers transfers. TEX.GOVT.CODE §§ 554.001-.002 (West Supp.1996) (defining adverse employment actions to include transfers). The City next challenges the jury's $750,000 exemplary damage award. Section 4(a)(2) of the Whistleblower Act4 provides that a governmental employer can be liable for exemplary damages if the employer acts intentionally, fraudulently, maliciously, or with gross negligence. TEX.REV.STAT.ANN. art. 6252-16a, § 4(a)(2); City of Ingleside v. Kneuper, 768 S.W.2d 451 (Tex.App.—Austin 1989), error denied (Oct. 25, 1989). Texas courts have construed the term employer to hold the governmental entity vicariously liable for the acts of its employees. E.g., Tex. Dept. of Human Serv. v. Green, 855 S.W.2d 136, 142-43 (Tex.App.—Austin 1993), error denied (Feb. 2, 1994) (Whistleblower Act waives the government's sovereign immunity and governmental agency may be vicariously liable for acts of low-level supervisors); City of Houston v. Leach, 819 S.W.2d 185, 200-01 (Tex.App.—Houston, 14th Dist.1991) (City of Houston held vicariously liable under the Whistleblower Act but not under 42 U.S.C. § 1983). The evidence here was sufficient to impose punitive damage liability on the City for the conduct of Rollins and Hatler. Moreover, we reject the City's argument that the amount of exemplary damages assessed—$750,000—was excessive. That amount is less than four times the officers' actual damages.