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GOODYEAR TIRE v. MAYES
Goodyear Tire and Rubber Company v. Patrick Mayes, No. 04-0993 (Supreme Court of Texas, June 15, 2007) — Per Curiam
Factual and Procedural Background
Corte Adams was employed by Goodyear as a tire alignment technician at its Bryan, Texas shop. He regularly commuted about two hours each way between his home in Houston and the Bryan store, worked eight to ten hour shifts, and used Goodyear vehicles for travel between Bryan and Houston. Occasionally Adams shuttled tires between Goodyear's Bryan store and its Homestead (Houston) store; if he delivered tires before the Homestead store closed he was paid for the trip, and if he arrived after closing he would deliver the next morning and begin his workday with the delivery.
On February 26, 1999, Adams drove from Bryan to the Homestead store but arrived after it closed. He then drove to his father's nearby home with the tires still on the truck, ate dinner, drank a few beers, and slept about five hours. Shortly before 3:00 a.m., Adams left to buy cigarettes for his father, and on that trip he fell asleep at the wheel, crossed the center line, and struck a truck driven by Patrick Mayes. Both men were injured.
Mayes sued Adams for negligence, negligence per se, and gross negligence, and sued Goodyear for negligent entrustment and vicarious liability under respondeat superior. The trial court granted Goodyear's motion for summary judgment, severed Mayes's claims against Goodyear from those against Adams, and rendered a final take-nothing judgment in favor of Goodyear. On appeal, a divided court of appeals reversed and remanded, concluding that sufficient evidence raised fact issues on whether Adams was acting within the course and scope of his employment and on negligent entrustment. The Supreme Court of Texas granted review, and this per curiam opinion reverses the court of appeals and renders judgment that Mayes take nothing against Goodyear.
Legal Issues Presented
- Whether, as a matter of law, Adams was acting within the course and scope of his employment with Goodyear at the time of the accident (respondeat superior).
- Whether Mayes presented sufficient evidence to raise a genuine issue of material fact on negligent entrustment against Goodyear.
Arguments of the Parties
Mayes's Arguments
- Mayes asserted that material fact issues existed as to whether Adams was acting within the course and scope of his employment at the time of the accident, and that summary judgment should therefore be denied.
- Mayes relied on evidence including a three-year driving record obtained during hiring (showing a driving-without-insurance citation in July 1995 and a June 1996 rear-end collision), a speeding ticket while driving a Goodyear truck, Adams's long work week, lengthy commute, and work schedule to argue that Goodyear knew or should have known Adams might be incompetent to drive (e.g., due to insufficient sleep).
- Mayes additionally argued that evidence of workers' compensation checks and a completed workers' compensation form raised an inference that Goodyear authorized workers' compensation payments, which the court of appeals viewed as relevant to course-and-scope issues.
Goodyear's Arguments
- Goodyear argued that the court of appeals applied an improper standard of review by treating only evidence favorable to the nonmovant and ignoring undisputed evidence; appellate review of summary judgment must consider all evidence and whether reasonable jurors could differ.
- Goodyear maintained that the undisputed evidence established Adams was on a personal errand (buying cigarettes for his father) when the accident occurred, and therefore his acts were not in furtherance of Goodyear's business or for accomplishment of the object for which he was hired; accordingly, respondeat superior liability did not apply.
- Goodyear argued that the workers' compensation evidence was disputed and insufficient to show Goodyear admitted Adams was acting within the course and scope of employment.
- On negligent entrustment, Goodyear conceded it entrusted the truck to Adams and that Adams was negligent and that that negligence proximately caused the accident, but argued there was no evidence that Adams was unlicensed, incompetent, or reckless at the time of entrustment or that Goodyear knew or should have known of any such condition; thus negligent entrustment failed as a matter of law.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Wal-Mart Stores, Inc. v. Spates, 186 S.W.3d 566, 568 (Tex. 2006) | Standard for appellate review of a summary judgment — consider whether reasonable and fair-minded jurors could differ in light of all the evidence. | The Court cited Spates to emphasize the proper standard of review for summary judgment and to fault the court of appeals for failing to apply that standard by ignoring undisputed evidence. |
| City of Keller v. Wilson, 168 S.W.3d 802, 822-24 (Tex. 2005) | Guidance on appellate review and standards for evaluating evidence on summary judgment. | Used with Spates to support the proposition that appellate courts must consider all evidence and reasonable inferences when reviewing summary judgments. |
| Roark v. Stallworth Oil & Gas, Inc., 813 S.W.2d 492, 495 (Tex. 1991) | Parties may try an issue by consent in summary judgment proceedings. | The Court relied on Roark to justify treating Mayes's negligent entrustment claim as tried by consent despite not being specifically pleaded, because Mayes did not object to Goodyear's characterization and argued negligent entrustment on appeal. |
| Sudan v. Sudan, 199 S.W.3d 291, 292 (Tex. 2006) | Appellate standard: consider all evidence in the light most favorable to the nonmovant, indulging every reasonable inference in favor of the nonmovant and resolving doubts against the motion. | Quoted to describe the appellate standard for evaluating summary judgment evidence; the Court reiterated these principles while concluding the court of appeals applied the standard incorrectly by disregarding undisputed evidence. |
| Otis Eng'g Corp. v. Clark, 668 S.W.2d 307, 309 (Tex. 1983) | General rule that a person has no duty to control the conduct of another. | Referenced as background for the general rule that ordinarily there is no duty to control another's conduct, setting stage for explaining the limited operation of respondeat superior. |
| Baptist Mem'l Hosp. Sys. v. Sampson, 969 S.W.2d 945, 947 (Tex. 1998) | Under respondeat superior, an employer may be vicariously liable for negligent acts of an employee if those actions are within the course and scope of employment. | The Court cited Baptist Memorial to state the governing vicarious liability principle applied in assessing whether Goodyear could be held liable for Adams's actions. |
| Minyard Food Stores, Inc. v. Goodman, 80 S.W.3d 573, 577 (Tex. 2002) | An employer is liable only when the tortious act falls within the scope of the employee's general authority in furtherance of the employer's business; deviations for personal purposes place the employer outside liability. | The Court used Minyard to explain the scope-of-employment test and the principle that employee deviations for personal purposes negate employer liability. |
| Robertson Tank Lines, Inc. v. Van Cleave, 468 S.W.2d 354, 357 (Tex. 1971) | Source cited in Minyard for the scope-of-employment formulation. | Referenced as a supporting authority for the scope-of-employment rule quoted in Minyard. |
| Smith v. M Sys. Food Stores, Inc., 156 Tex. 484, 297 S.W.2d 112, 114 (1957) | Statement that employee's acts must be of the same general nature as conduct authorized or incidental to the conduct authorized to fall within scope of employment. | Cited to support the proposition that employee conduct must be of the same general nature as authorized conduct to trigger respondeat superior. |
| Schneider v. Esperanza Transmission Co., 744 S.W.2d 595, 596 (Tex. 1987) | Elements required to establish negligent entrustment (entrustment; unlicensed/incompetent/reckless driver; employer knew or should have known; negligence on occasion; proximate causation). | The Court adopted Schneider's elements as the standard for assessing Mayes's negligent entrustment claim and then applied those elements to the summary judgment record. |
Court's Reasoning and Analysis
The Court began by restating the correct standard for appellate review of summary judgments: an appellate court must consider whether reasonable and fair-minded jurors could differ after examining all of the evidence presented, and must view all evidence (including undisputed evidence) in context rather than considering only evidence favorable to the nonmovant. The opinion specifically admonished the court of appeals for applying an improper review standard that "consider[ed] only the evidence favorable to Mayes, ignoring undisputed evidence in the record that cannot be disregarded."
On the respondeat superior (course-and-scope) question, the Court reviewed the summary judgment record and identified uncontroverted evidence that Adams awoke at his father's home near 3:00 a.m., drove the Goodyear truck to a convenience store to purchase cigarettes for his father, and intended to return. The Court concluded the trip that resulted in the collision was a personal errand and therefore "was not an act in furtherance of his employer's business or for the accomplishment of the object for which he was hired." The Court found other evidence cited by Mayes — Adams' possession of the truck, the presence of Goodyear tires on the truck, that he had a morning delivery to make, that he was available by pager 24 hours a day, and that he was not restricted from using the truck for personal business — did not satisfy the requirements of respondeat superior. Because there was "no conflicting evidence or conflicting set of inferences" to create a genuine issue about whether Adams was acting in furtherance of Goodyear's business at the time of the accident, the Court held the court of appeals erred.
The Court then addressed the court of appeals' independent basis for reversal — that alleged authorization of workers' compensation payments by Goodyear raised a fact issue. The Supreme Court found the record contained no competent evidence that Goodyear authorized workers' compensation payments; it contained only disputed evidence that Adams received workers' compensation checks and completed a form. The Court held that such evidence was insufficient to allow a reasonable juror to conclude Goodyear admitted Adams was acting within the scope of employment.
Turning to negligent entrustment, the Court adopted the five elements set out in Schneider. It acknowledged the record conceded some elements (entrustment, Adams's negligence in falling asleep, and proximate causation), but found no evidence that Adams was an unlicensed, incompetent, or reckless driver at the time Goodyear entrusted the vehicle or that Goodyear knew or should have known of any such condition. The driving-history evidence relied upon by Mayes (a 1998 three-year driving record reflecting a July 1995 citation for driving without liability insurance and a June 1996 rear-end collision, and a minor speeding ticket received while driving a Goodyear truck) and the absence of any prior accidents while driving Goodyear trucks (other than the collision with Mayes) were held insufficient to raise a fact issue. The Court also rejected the court of appeals' suggestion that Adams' long work week and commute established Goodyear's knowledge of his incompetence due to insufficient sleep; Goodyear's knowledge of schedule and commute, "without more," did not raise a fact issue.
Based on these analyses, the Court concluded that the court of appeals applied the wrong standard and improperly disregarded undisputed evidence, and that both the respondeat superior and negligent entrustment claims failed as a matter of law on the summary judgment record.
Holding and Implications
Holding: The Supreme Court of Texas reversed the court of appeals and rendered judgment that Mayes take nothing against Goodyear.
Implications: The direct effect of the Court's decision is to affirm the trial court's summary judgment dismissal of Mayes's claims against Goodyear and to terminate Goodyear's liability to Mayes on the record presented. The Court's opinion emphasizes the necessity for appellate courts to apply the correct summary-judgment standard by considering all evidence, including undisputed evidence, when determining whether genuine issues of material fact exist. The opinion does not announce or discuss broader legal rules beyond applying existing authority to the facts of this case; it disposes of the claims on the summary judgment record and does not purport to create new precedent.
Disposition: Petition granted; reversal of the court of appeals; rendered judgment that plaintiff take nothing against defendant Goodyear. Rehearing denied November 30, 2007.
PER CURIAM.
An appellate court reviewing a summary judgment 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, 822-24 (Tex. 2005). Here, the court of appeals, reversing the trial court's judgment, failed to apply the proper standard of review. We reverse and render judgment that the plaintiff take nothing.
Corte Adams worked as a tire alignment technician for Goodyear at its Bryan, Texas, shop. Adams regularly commuted approximately two hours from his home in Houston to Bryan, worked an eight- to ten-hour shift at the Bryan store, and then commuted approximately two hours home. He used Goodyear vehicles to travel between Bryan and Houston. Occasionally, on his trips to and from Houston, Adams shuttled tires between Goodyear's Bryan store and its Homestead store in Houston. If Adams was able to deliver the tires before the Homestead store closed, he was paid for the trip from Bryan to Houston. If he arrived after the store had closed, Adams would deliver the tires to the Homestead store the next morning before setting out for Bryan, and his workday would begin with the delivery.
On February 26, 1999, Adams left Bryan headed to the Homestead store with a tire delivery. By the time he arrived, the store was closed. Adams then drove to his father's nearby home, with the tires still on the back of the truck. There he ate dinner, drank a few beers, and slept for approximately five hours. A little before 3:00 a.m., Adams left the apartment to purchase cigarettes for his father. On his way to the convenience store, Adams fell asleep at the wheel, crossed the center line into oncoming traffic, and struck head-on a truck driven by Patrick Mayes. Both Mayes and Adams were injured in the collision.
Mayes sued Adams for negligence, negligence per se, and gross negligence, and Goodyear for negligent entrustment and vicarious liability under a respondeat superior theory. The trial court granted Goodyear's motion for summary judgment, severed Mayes's suit against Goodyear from his suit against Adams, and rendered a final take-nothing judgment in favor of Goodyear.
Mayes's pleadings do not specifically include a claim for negligent entrustment, but he did not object to Goodyear's characterization of his claims. Further, Mayes argued before the court of appeals that fact issues exist with regard to negligent entrustment. The court of appeals treated his unpleaded claim as having been tried by consent. We treat his unpleaded claim similarly and address the issue of negligent entrustment. See Roark v. Stallworth Oil Gas, Inc., 813 S.W.2d 492, 495 (Tex. 1991) (parties may try an issue by consent in summary judgment proceedings).
On appeal, a divided court of appeals reversed the trial court's judgment and remanded the case. 144 S.W.3d 50, 58. Assuming all evidence favorable to the nonmovant (Mayes) was true, and indulging every reasonable inference and resolving any doubts in his favor, the court held there existed sufficient evidence to raise a genuine issue of material fact on whether Adams was acting in the course and scope of his employment at the time of the accident. Id. at 55-56. The court also held that Mayes presented sufficient evidence to survive summary judgment on his negligent entrustment claim. Id. at 57-58. The dissent concluded that the undisputed facts in the case precluded Mayes's claims as a matter of law. 144 S.W.3d at 60 (Jennings, J., dissenting).
An appellate court reviewing a summary judgment must consider all the evidence in the light most favorable to the nonmovant, indulging every reasonable inference in favor of the nonmovant and resolving any doubts against the motion. Sudan v. Sudan, 199 S.W.3d 291, 292 (Tex. 2006); Spates, 186 S.W.3d at 568. Goodyear argues the court of appeals erred in finding a genuine issue of material fact as to whether Adams's actions were within the course and scope of his employment when the accident occurred. Generally, a person has no duty to control the conduct of another. Otis Eng'g Corp. v. Clark, 668 S.W.2d 307, 309 (Tex. 1983). Under the theory of respondeat superior, however, an employer may be vicariously liable for the negligent acts of its employee if the employee's actions are within the course and scope of his employment. Baptist Mem'l Hosp. Sys. v. Sampson, 969 S.W.2d 945, 947 (Tex. 1998). "[A]n employer is liable for its employee's tort only when the tortious act falls within the scope of the employee's general authority in furtherance of the employer's business and for the accomplishment of the object for which the employee was hired." Minyard Food Stares, Inc. v. Goodman, 80 S.W.3d 573, 577 (Tex. 2002) (citing Robertson Tank Lines, Inc. v. Van Cleave, 468 S.W.2d 354, 357 (Tex. 1971)). The employee's acts must be of the same general nature as the conduct authorized or incidental to the conduct authorized to be within the scope of employment. Minyard Food Stores, 80 S.W.3d at 577 (citing Smith v. M Sys. Food Stores, Inc., 156 Tex. 484, 297 S.W.2d 112, 114 (1957)). Accordingly, "if an employee deviates from the performance of his duties for his own purposes, the employer is not responsible for what occurs during that deviation." Minyard Food Stores, 80 S.W.3d at 577.
The summary judgment record contains uncontroverted evidence that Adams awoke at his father's home close to 3:00 a.m., drove the Goodyear truck to a nearby convenience store to purchase his father's cigarettes, and planned to return. It was during this personal errand that Adams fell asleep at the wheel and hit Mayes's truck head-on. Adams's personal errand was not an act in furtherance of his employer's business or for the accomplishment of the object for which he was hired. Evidence that Adams had possession of the Goodyear truck with Goodyear tires on board, had a morning delivery to make, was available via pager twenty-four hours a day, and was not restricted from using the truck for personal business fail to support the requirements of respondeat superior. There is no conflicting evidence or conflicting set of inferences to raise a genuine issue of material fact over whether, at the time of the accident, Adams was acting in furtherance of Goodyear's business or for the accomplishment of the object for which Goodyear hired him. The court of appeals erred in considering only the evidence favorable to Mayes, ignoring undisputed evidence in the record that cannot be disregarded. 144 S.W.3d at 55 ("We, however, must view only the evidence and inferences favorable to Mayes, the nonmovant.").
As a second independent basis for its judgment, the court of appeals considered "Goodyear's authorization of workers' compensation payments to Adams for the injuries he sustained in the accident" sufficient to raise a genuine issue of material fact as to whether Adams was acting in the course and scope of his employment. 144 S.W.3d at 57. The record does not contain evidence that Goodyear authorized workers' compensation payments for Adams, but only disputed evidence that Adams received workers' compensation checks and that he completed a workers' compensation form. This constitutes evidence that Adams may have received workers' compensation benefits; it is not competent evidence that Adams was acting within the course and scope of his employment at Goodyear at the time of the accident. No reasonable juror could conclude that Goodyear admitted Adams was acting within the course and scope of his employment based on all of the evidence in this record.
Goodyear also argues the court of appeals erred by finding a genuine issue of material fact for Mayes's liability claim under a negligent entrustment theory. To establish liability under this theory, Mayes must show that: (1) Goodyear entrusted the vehicle to Adams; (2) Adams was an unlicensed, incompetent, or reckless driver; (3) at the time of the entrustment, Goodyear knew or should have known that Adams was an unlicensed, incompetent, or reckless driver; (4) Adams was negligent on the occasion in question; and (5) Adams's negligence proximately caused the accident. See Schneider v. Esperanza Transmission Co., 744 S.W.2d 595, 596 (Tex. 1987).
It is undisputed that Goodyear entrusted its truck to Adams, that Adams was negligent by falling asleep behind the wheel, and that his negligence proximately caused the accident. However, the record contains no evidence that, at the time Goodyear entrusted the vehicle to Adams, Adams was an unlicensed, incompetent, or reckless driver or that Goodyear knew or should have known Adams was an unlicensed, incompetent, or reckless driver. First, there is no dispute that Adams was a licensed driver. Second, the evidence upon which Mayes relies to raise a fact issue regarding Adams's alleged incompetence or recklessness as a driver is insufficient. Mayes claims that the three-year driving record obtained as part of Goodyear's hiring process in 1998 is some evidence that Goodyear knew or should have known that Adams was an incompetent or reckless driver when Goodyear entrusted the vehicle to Adams. The 1998 record includes two citations: one for driving without liability insurance in July 1995 and another for a June 1996 collision in which Adams rear-ended a vehicle at a stoplight. Mayes adds that the only ticket Adams received while driving a Goodyear truck — for exceeding the speed limit by about five miles per hour — also constitutes some evidence that Goodyear knew that Adams was an incompetent or reckless driver. It is undisputed that Adams's only accident in a Goodyear truck was his collision with Mayes. This evidence does not raise a genuine issue of material fact as to whether Adams was, or Goodyear knew or should have known that Adams was, an incompetent or reckless driver at the time Goodyear entrusted him with the truck.
The court of appeals suggests that Adams's long work week, lengthy commute, and work schedule raised a fact issue regarding Adams's competence as a driver. The court of appeals explained that Mayes's negligent entrustment claim should survive Goodyear's motion for summary judgment "[b]ecause Adams may have been incompetent to drive because of insufficient sleep, and Goodyear was aware of this possibility." Goodyear's knowledge of Adams's work schedule and his commute, without more, does not raise a fact issue that he was, or that Goodyear knew or should have known that he was, an incompetent driver due to insufficient sleep. The court of appeals erred in reversing summary judgment on the issue of negligent entrustment.
Therefore, we grant Goodyear's petition without hearing oral argument, reverse the court of appeals' judgment, and render that Mayes take nothing against Goodyear. See TEX.R.APP. P. 59.1.
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