Here's an analysis of the Butler v. Collins case from the Texas Supreme Court from May 2025. You can read the full opinion by clicking here.
The issue centers on whether Texas Labor Code Chapter 21—which governs workplace discrimination claims against employers—also preempts (or blocks) common law claims like defamation and fraud against individual employees when those claims arise from the same conduct as the discrimination claims against the employer.
Background: Cheryl Butler was an assistant law professor at Southern Methodist University (SMU). After tenure denial, she alleged racial discrimination and retaliation under federal and state laws against SMU and certain employees. She also brought defamation and fraud claims against the employee defendants based on false statements in tenure committee reports and related misconduct.
The federal district court dismissed the defamation and fraud claims against employees, holding that Chapter 21 preempted those claims. This dismissal was appealed and the question was certified to the Texas Supreme Court.
Key Legal Question: Does Chapter 21 preempt common law defamation and fraud claims against individual employees when those claims arise from the same conduct as discrimination claims against the employer?
Texas Supreme Court's Reasoning:
- Chapter 21 applies exclusively to employers and does not impose individual liability on employees.
- Past precedent (Waffle House, Inc. v. Williams) held that Chapter 21 preempts common law claims against employers when the gravamen (true nature) of the claim is discrimination covered by Chapter 21.
- However, the court distinguished claims against individual employees for their own tortious conduct (like defamation or fraud) from claims against employers.
- The court emphasized that Chapter 21 does not immunize individual employees from liability for their own torts.
- Common law tort claims against individuals have long existed and are not displaced by Chapter 21.
- The court also noted that allowing both Chapter 21 claims against employers and common law claims against employees does not permit double recovery for the same injury.
- The court concluded no "clear repugnance" exists between Chapter 21 claims against employers and common law claims against employees based on the same conduct.
Holding: Chapter 21 does not preempt or abrogate common law claims for defamation and fraud against individual employees even if those claims arise from the same course of conduct as Chapter 21 discrimination claims against the employer.
In plain terms:
- If you have a discrimination claim against your employer under Texas law, that claim is exclusive against the employer and preempts other claims against the employer based on the same conduct.
- But this exclusivity does not shield individual employees from lawsuits for their own wrongful acts like defamation or fraud related to that conduct.
- You can sue the employer under Chapter 21 for discrimination and also sue the individual employees for defamation or fraud if they committed those torts personally.
- The court rejects the idea that employees get blanket immunity just because the employer is sued under Chapter 21.
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