the-kroger-co-kroger-texas-lp-and-david-michael-welsh-v-american ( 2015 )


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  • Affirmed and Opinion filed June 23, 2015.
    In The
    Fourteenth Court of Appeals
    NO. 14-13-01135-CV
    THE KROGER CO., KROGER TEXAS L.P., AND DAVID MICHAEL
    WELSH, Appellants
    V.
    AMERICAN ALTERNATIVE INSURANCE CORPORATION, AS
    SUBROGEE OF SPRING VOLUNTEER FIRE ASSOCIATION, Appellee
    On Appeal from the 269th District Court
    Harris County, Texas
    Trial Court Cause No. 2011-45246
    OPINION
    This single-issue appeal arises from a subrogation suit involving a claim by
    the subrogee of a fire department for damages to a fire truck sustained in a
    collision with another vehicle.     The jury found that the fire department’s
    recklessness did not proximately cause the crash. The jury also found that the fire
    department was negligent and that the fire department was ten-percent responsible.
    The trial court granted the subrogee’s motion to disregard the latter two findings
    and rendered judgment for the subrogee for the full amount of damages, without
    any deduction based on the fire department’s percentage of responsibility. The
    defendants appealed. Concluding that they have not challenged the ground upon
    which the trial court disregarded the two jury findings, we affirm the trial court’s
    judgment.
    I.      BACKGROUND
    While responding to an emergency call, a fire truck from the Spring
    Volunteer Fire Association collided with a commercial van.                              The Fire
    Association’s      insurer,     appellee/plaintiff      American       Alternative      Insurance
    Corporation, paid more than $300,000 for repairs to the damaged fire truck. As the
    Fire    Association’s         subrogee,1    the       insurer   then     filed   suit     against
    appellants/defendants The Kroger Co., Kroger Texas L.P., and David Michael
    Welsh (hereinafter collectively the “Kroger Parties”).
    The Fire Association alleged that Welsh, while acting in the course and
    scope of his employment with “The Kroger Co. and/or Kroger Texas L.P.,” caused
    the van to collide with the fire truck, resulting in significant damage to the truck.
    The Fire Association asserted a negligence claim against Welsh and sought to
    recover against the two corporate defendants under a theory of respondeat
    superior.     In response, the Kroger Parties asserted claims against the Fire
    Association, seeking to recover personal-injury and property damages based on the
    Fire Association’s alleged negligence, gross negligence, and reckless conduct.
    1
    For the purposes of this appeal, it is not necessary to distinguish between the Fire Association
    and the insurer as the Fire Association’s subrogee. Therefore, for ease of reference, we make no
    distinction.
    2
    At trial, the jury found that (1) the Fire Association’s negligence and the
    Kroger Parties’ negligence proximately caused the collision; (2) a preponderance
    of the evidence does not show that the Fire Department’s recklessness, if any,
    proximately caused the collision; (3) the percentage of responsibility for causing
    the collision attributable to the Fire Association is ten percent; (4) the percentage
    of responsibility for causing the collision attributable to the Kroger Parties is
    ninety percent; and (5) $316,957.20 would fairly and reasonably compensate the
    Fire Association for the damages to the fire truck resulting from the crash.
    The Fire Association moved the trial court to disregard as immaterial both
    the jury finding that the Fire Association’s negligence proximately caused the
    crash and the jury finding that the Fire Association’s percentage of responsibility
    was ten percent. The Fire Association asked the trial court to render judgment on
    the rest of the jury’s findings, giving the Fire Association a judgment for the full
    amount of the jury’s damage finding, and a judgment that the Kroger Parties take
    nothing as to their claims. The trial court did.
    The Kroger Parties now challenge the trial court’s judgment, raising a single
    issue on appeal. They assert that when a fire department seeks recovery against
    another arising out of a vehicular accident, the Texas Tort Claims Act does not
    protect the fire department from a set-off for a percentage finding of the fire
    department’s negligence. In response, the Fire Association argues the Kroger
    Parties cannot prevail based on two principles of appellate practice and procedure.
    First, the Fire Association asserts that the Kroger Parties cannot prevail without a
    reporter’s record of the trial proceedings. Second, the Fire Association asserts the
    Kroger Parties’ failure to challenge the precise basis for the trial court’s ruling
    operates as a procedural default and this court must affirm the judgment without
    3
    reaching the merits of the issue.2
    II. ANALYSIS
    A. Absence of Reporter’s Record
    A reporter’s record is usually essential to a successful appeal. See King’s
    River Trail Ass’n, Inc. v. Pinehurst Trail Holdings, L.L.C., 
    447 S.W.3d 439
    , 449–
    51 (Tex. App.—Houston [14th Dist.] 2014, pet. denied). The lack of one can be
    fatal. See Middleton v. Nat’l Fam. Care Life Ins. Co., No. 14–04–00428–CV, 
    2006 WL 89503
    , at *2 (Tex. App.—Houston [14th Dist.] Jan. 17, 2006, pet. denied)
    (mem.op.). While there are circumstances that obviate the need for a complete
    record, such as a partial-record appeal, in most cases a reporter’s record is
    necessary for a genuine review of the merits. See King’s River Trail Ass’n, 
    Inc., 447 S.W.3d at 449
    –51. The Kroger Parties take the position that no reporter’s
    record is necessary because the issue presented is a purely legal one that does not
    require appellate review of the trial evidence.
    Because we have no reporter’s record and the Kroger Parties did not request
    the preparation of one, as a threshold matter, we consider whether the absence of a
    reporter’s record is dispositive. The Kroger Parties did not invoke the procedures
    for a partial reporter’s record under Texas Rule of Appellate Procedure 34.6(c), nor
    did they ever make a written statement of the limited points or issues on appeal, as
    the rules prescribe in an appeal with a partial reporter’s record. See Tex. R. App.
    P. 34.6(c); Bennett v. Cochran, 
    96 S.W.3d 227
    , 229–30 (Tex. 2002) (per curiam).
    We do not have any of the trial evidence or any reporter’s record of the trial
    proceedings. The Kroger Parties intentionally appeal solely based on the clerk’s
    2
    The Fire Association also argues that the trial court’s ruling was correct on the merits.
    4
    record, arguing that no reporter’s record is necessary because this appeal allegedly
    presents a strict question of law, the resolution of which does not require this
    court’s review of the trial evidence. See Segrest v. Segrest, 
    649 S.W.2d 610
    , 611–
    12 (Tex. 1983); King’s River Trail Ass’n, 
    Inc., 447 S.W.3d at 449
    –51. For the
    purposes of today’s analysis, we presume, without deciding, that no reporter’s
    record is necessary; thus, despite the absence of a reporter’s record, we do not
    presume that the omitted reporter’s record is relevant to the disposition of this
    appeal and supports the trial court’s judgment. See 
    Bennett, 96 S.W.3d at 229
    –30;
    Burns v. Mullin, 14-12-00966-CV, 
    2013 WL 5631031
    , at *1–2 (Tex. App.—
    Houston [14th Dist.] Oct. 15, 2013, no pet.) (mem. op). Even so, we cannot yet
    proceed to the merits of the Kroger Parties’ issue because we first must address the
    argument that the Kroger Parties failed to attack the basis for the trial court’s
    ruling.
    B. Scope of Appellate Challenge
    In essence, the Fire Association asserts that the scope of the Kroger Parties’
    issue is too narrow and does not capture all bases or grounds that support the trial
    court’s ruling disregarding the two jury findings. See Navarro v. Grant Thornton,
    LLP, 
    316 S.W.3d 715
    , 719–20 (Tex. App.—Houston [14th Dist.] 2010, no pet.).
    The Fire Association argues that the Kroger Parties’ failure to challenge the ground
    for the trial court’s ruling defeats the appeal.
    An appellant’s failure to challenge all grounds for an adverse ruling operates
    as a procedural default.       See 
    id. Though an
    appellate court will construe
    the issues presented liberally to include such a challenge if the appellant presents
    argument addressing all such grounds, this rule does not magically transform a
    narrow challenge on one basis into a broad challenge that covers other bases.
    5
    See Perry v. Cohen, 
    272 S.W.3d 585
    , 587–88 (Tex. 2008) (per curiam); 
    Navarro, 316 S.W.3d at 719
    –20. Applying the rule in this way would not be fair to an
    appellee who reasonably views the challenge as a narrow one and responds only to
    the precise issue presented, as contemplated by the rules. See 
    Navarro, 316 S.W.3d at 719
    –20. Nor would the interests of efficient appellate review be served by the
    court of appeals’s expansion of the grounds of possible reversal beyond those
    identified in the appellant’s opening brief. Thus, at the onset we must assess
    whether the Kroger Parties attacked the stated bases for the trial court’s ruling.
    1. The Fire Association’s asserted bases for disregarding the jury findings
    In its motion, the Fire Association asserted the following reasons why the
    trial court should disregard the jury finding that the Fire Association’s negligence
    proximately caused the collision:
     This finding was immaterial.
     The question of the Fire Association’s negligence should not have been
    submitted to the jury.
     Under City of Amarillo v. Martin, 
    971 S.W.2d 426
    , 430–32 (Tex. 1998), the
    appropriate standard of care for an emergency responder operating an
    emergency vehicle is recklessness, not negligence.
     There is no authority for the proposition that an emergency responder’s
    conduct can or should be determined under a negligence standard.
    In its motion, the Fire Association asserted the following reasons why the
    trial court should disregard the jury finding that the percentage of responsibility
    attributable to the Fire Association is ten percent:
     This finding was immaterial.
     This jury question was not properly predicated to the extent that it allowed
    the jury to determine the Fire Association’s percentage of responsibility
    based only on a finding of the Fire Association’s negligence, which is not
    6
    the correct legal standard.
     It would have been proper for the jury to determine the parties’ percentages
    of responsibility if the jury had found that the Fire Association had engaged
    in reckless conduct in addition to finding that the Kroger Parties were
    negligent.
     Because the jury did not find that the Fire Association had engaged in
    reckless conduct, the jury should not have answered the comparative-
    responsibility question, had it been properly predicated.
     The jury’s finding in response to the question regarding the Fire
    Association’s recklessness renders the jury finding regarding the percentages
    of responsibility immaterial.
    2. The Kroger Parties’ arguments on appeal
    On appeal, the Kroger Parties present a single issue for review: “When a
    fire department is seeking damages against another arising out of a vehicular
    accident, the Texas Tort Claims Act does not protect it from a set off for a
    percentage finding of its negligence pursuant to §33.012 of the Remedies Code.”
    The Kroger Parties state that the basis for the trial court’s disregarding the jury
    finding that the Fire Association’s negligence proximately caused the crash and
    rendering judgment in favor of the Fire Association for the full amount of the
    damages was “an application of §101.055 of the [Civil Practice and] Remedies
    Code which provides generally for immunity to a governmental unit for non-
    reckless conduct committed during an emergency situation, as recited by the trial
    court in the judgment.” The Kroger Parties concede that, for the purposes of this
    appeal, an emergency situation existed at the time of the accident. The Kroger
    Parties state that “[t]his appeal is brought on the narrow ground that the Texas Tort
    Claims Act does not protect a sovereign for the consequences of its own
    negligence when it is seeking damages, and therefore a set off would have been
    appropriate in this case.”
    7
    In their argument, the Kroger Parties make the following assertions:
     The trial court erred by not reducing the judgment by the jury’s finding of
    ten percent for the negligence attributable to the fire-truck driver.
     The trial court based its ruling on an application of the Texas Tort Claims
    Act, and the trial court wrongly extended the reach of this statute even to
    situations in which the governmental entity is the plaintiff.
       Sovereign immunity deprives a trial court of subject-matter jurisdiction over
    lawsuits in which the state or certain governmental units have been sued
    unless the state consents to the suit.
    After discussing principles of sovereign immunity and the waivers of
    sovereign immunity under the Texas Tort Claims Act, the Kroger Parties assert the
    following:
     Nothing in the statute applies to any situation other than one in which a
    claim is being brought against the governmental unit and the statute does not
    provide that a governmental unit’s claim against another should be given
    special treatment or standards of proof.
     Under section 101.055 of the Texas Civil Practice and Remedies Code, the
    waivers of sovereign immunity in the Texas Tort Claims Act do not apply to
    the provision of services in an emergency situation unless there was reckless
    conduct. Because there has been no finding of reckless conduct, the waivers
    of sovereign immunity under the Texas Tort Claims Act do not apply to this
    case.
     Even if the waivers did apply, they apply only to liability created by the
    Texas Tort Claims Act and therefore they do not apply to claims asserted by
    the governmental unit.
    The Kroger Parties quote a passage from City of Amarillo v. Martin, 
    971 S.W.2d 426
    (Tex. 1998), and indicate that, in it, the Supreme Court of Texas
    addressed the statutory sovereign-immunity scheme and determined that in
    emergency situations immunity would be waived and liability incurred by the
    operator of the emergency vehicle only if the emergency responder engaged in
    reckless conduct. The Kroger Parties assert that sovereign immunity and the Texas
    8
    Tort Claims Act apply only to claims against an entity entitled to sovereign
    immunity, not to claims asserted by such an entity. According to the Kroger
    Parties, claims by government units are not excepted from the application of
    Chapter 33 of the Civil Practice and Remedies Code. The Kroger Parties assert:
     The Fire Association, a governmental unit, is improperly attempting to
    bootstrap the Texas Tort Claims Act into this plaintiff’s case and to claim
    immunity for itself from section 33.012(a) of the Civil Practice and
    Remedies Code.
     This attempt has constitutional implications in that it constitutes a wrongful
    taking by the government.3
    The Kroger Parties assert that “applying the immunity provisions” would create an
    absurd result in this context because juries would not be able to consider a non-
    reckless plaintiff’s negligence even if the jury would have found the plaintiff to
    have a percentage of responsibility of ninety-nine percent based on the plaintiff’s
    negligence.
    The Kroger Parties argue that the trial court erred in accepting the Fire
    Association’s erroneous argument that the Texas Tort Claims Act applies to claims
    by a governmental unit and that the Texas Tort Claims Act or sovereign immunity
    exempts the Fire Association from the application of the comparative-
    responsibility provisions of Chapter 33 of the Civil Practice and Remedies Code.
    3. The Kroger Parties’ failure to challenge a basis of the trial court’s
    ruling
    The record does not show the Fire Association ever asserted sovereign
    immunity or governmental immunity as a basis for its motion to disregard the two
    3
    The record does not reflect that the Kroger Parties preserved error in the trial court on any
    alleged takings claim.
    9
    jury findings. See Reata Construction Corp. v. City of Dallas, 
    197 S.W.3d 371
    ,
    377 (Tex. 2006) (stating that “[o]nce [a governmental entity] asserts affirmative
    claims for monetary recovery, [the governmental entity] must participate in the
    litigation process as an ordinary litigant, save for the limitation that [governmental
    entity] continues to have immunity from affirmative damage claims against it for
    monetary relief exceeding amounts necessary to offset the [governmental entity’s]
    claims”). Nor does the record reflect the Fire Association asserted that the Texas
    Tort Claims Act exempted the Fire Association from application of the
    comparative-responsibility provisions of Chapter 33 of the Civil Practice and
    Remedies Code. Instead, the Fire Association argued that, under City of Amarillo
    v. Martin, the applicable standard of care for an emergency responder operating an
    emergency vehicle is recklessness, not negligence and that, absent the Fire
    Association’s violation of the applicable standard of care, a comparative-
    responsibility finding should not have been made and is immaterial. Even liberally
    construing the Kroger Parties’ appellate brief, we cannot conclude that they have
    presented any argument challenging this basis of the trial court’s ruling. See
    
    Navarro, 316 S.W.3d at 719
    –20. Accordingly, we overrule the Kroger Parties’
    sole appellate issue and affirm the trial court’s judgment.4
    /s/     Kem Thompson Frost
    Chief Justice
    Panel consists of Chief Justice Frost and Justices Donovan and Brown.
    4
    Even if the Kroger Parties had challenged all bases for the trial court’s ruling, we still would
    conclude that the trial court did not err in disregarding the two jury findings.
    10