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$279,316 awarded in employment defamation case

279316

Gene Toscano, Inc. represented a former employee of a roofing company who was terminated shortly after filing a workers’ compensation claim. The employee alleged that the company distributed a defamatory letter to its customers implying misconduct and illegal activity, which significantly harmed his professional reputation and business opportunities.

The plaintiff filed suit for libel, tortious interference with business relationships, and retaliatory discharge under Texas Labor Code Chapter 451. While the jury did not find in favor of the plaintiff on the wrongful termination claim and excused the employer’s interference on the grounds of good faith reliance on a noncompete agreement, it did find that the company committed libel.

The jury awarded the following damages:

$108,584 for past lost earnings
$120,732 for future lost earnings
$50,000 for past mental anguish

The total award amounted to $279,316. With prejudgment interest, the judgment reached $333,418.47. However, due to legal findings and offsets, the plaintiff did not recover a monetary judgment.

This case highlights the legal risks companies face when making damaging or misleading statements about former employees, especially in the context of post-termination communications.

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Serving San Antonio since 1961, we fight for the seriously injured with unwavering dedication, taking cases to the highest courts when needed.