Anderson v. Durant

Andrew Anderson (plaintiff) was an at-will employee of Jerry Durant Auto Group (Durant) (defendant) until he was falsely accused of taking illegal kickbacks on used-car acquisitions and lost his job. Following Anderson’s termination of employment, he was unemployed for months and was unable to find a comparable job due to the rumors of his alleged misconduct. Anderson brought a defamation claim against Durant, claiming emotional distress and seeking both general and economic damages. At trial, Anderson testified that the accusations caused him to become depressed, paranoid, and anxious, and that he had trouble sleeping and eating. Anderson also testified that he worried about his family’s future and his career. Anderson sought treatment from a psychiatrist and was prescribed antianxiety medication. The evidence indicated that Anderson’s wife and daughter noticed his mental anguish and treated him differently in response. A prospective employer, Jason Hiley, also testified that he would not consider hiring Anderson unless and until his name was cleared of all wrongdoing, although Hiley also testified that part of the reason Anderson was not hired was because Hiley had already been interviewing a frontrunner for the position. The jury awarded Anderson general damages in the amount of $400,000 for past mental anguish, $400,000 for future mental anguish, $400,000 for past reputational harm, and $400,000 for future reputational harm. Durant appealed, and the court of appeals held that there was legally insufficient evidence to support any of the awarded damages. The Texas Supreme Court granted review.