Intevep S.A. Research & Tech. Support Estab. v. Sena

• Citation: 41 S.W.3d 391
• Decision Date: 26 March 2001
• Docket Number: No. 05-99-01973-CV,05-99-01973-CV
• Parties: (Tex.App.-Dallas 2001) INTEVEP, S.A. RESEARCH AND TECHNOLOGICAL SUPPORT ESTABLISHMENT, Appellant v. ARCANGELO SENA, Appellee
• Court: Court of Appeals of Texas

Page 391

41 S.W.3d 391 (Tex.App.-Dallas 2001)

INTEVEP, S.A. RESEARCH AND TECHNOLOGICAL SUPPORT ESTABLISHMENT, Appellant v. ARCANGELO SENA, Appellee

No. 05-99-01973-CV

COURT OF APPEALS OF TEXAS, DALLAS

March 26, 2001.

On Appeal from the 219th Judicial District Court Collin County, Texas Trial Court Cause No. 219-394-97

Before Justices Whittington, Bridges, and Roach

OPINION

Opinion By Justice Whittington

Intevep, S.A. Research and Technological Support Establishment, a subsidiary of Petroleos de Venezuela, S.A. (Intevep), appeals the trial court's summary judgment in favor of Arcangelo Sena. In three issues, Intevep contends the trial judge erred in granting summary judgment because Intevep's suit for breach of contract was not (i) based on an employment contract, (ii) barred under the four-year statute of limitations applicable in Texas or, alternatively, (iii) barred under the Venezuelan ten-year statute of limitations. For the reasons that follow, we affirm the trial court's judgment.

Background

Sena, a physicist employed by Intevep in Caracas, Venezuela, was chosen by Intevep's department of human resources to participate in the Foreign Assignment Program for Ph.D. Studies at the Massachusetts Institute of Technology (MIT). On April 20, 1989, Intevep and Sena entered into a scholarship agreement, formalized by two documents: "Letter of Agreement Regarding Grant of Employment Scholarships Abroad" and "Letter of Agreement Regarding Foreign Assignment Program for Postgraduate Studies" (collectively, the "Scholarship Agreement").

According to the Scholarship Agreement, Intevep would provide Sena monthly living expenses and pay for registration and enrollment. Additionally, Intevep would provide allowances for books, equipment and education materials, vacations, and graduation expenses. In return, Sena agreed to devote himself "exclusively to the academic activities of the Selected Training Program" and, after successfully completing the degree program, return to Intevep and remain an employee "for a period of time equal to the time spent on [the] program of studies." If Sena failed to do so, he agreed to repay Intevep "all the allowances, expenditure[s,] and grants" made available to him by Intevep. During the period of studies, Intevep reserved the right to cancel the scholarship and "treat [Sena's] employment as having been terminated" if his academic performance was unsatisfactory or he (i) failed to maintain a stated average for his studies, (ii) abandoned his studies without good reason or was "made subject to a disciplinary measure on the part of the authorities" at the university, (iii) changed his field of study without the company's prior approval, or (iv) fell "within any of the grounds of the Venezuelan employment legislation for legally justified dismissal."

Sena attended MIT from 1987 to 1992, obtained his Ph.D. in geophysics and, in the summer of 1992, returned to Venezuela to work at Intevep. On July 15, 1993, Sena resigned from Intevep and moved to Plano, Texas to work for the Atlantic Richfield Company.

On March 7, 1997, Intevep sued Sena for breach of contract, seeking $291,117.15 in damages. Sena filed a general denial and raised the affirmative defense of limitations. On June 26, 1998, Sena filed a motion for summary judgment, alleging that Intevep's claim was governed by Venezuelan law, and under the applicable statute of limitations, Intevep's claim for breach of an employment contract was barred by the one-year statute of limitations. Intevep responded, claiming the Texas four-year statute of limitations for breach of contract applied and, therefore, its claim was not barred. Alternatively, Intevep claimed that if Venezuelan law applied, the contract at issue was a personal cause of action, not an employment contract. Because Venezuelan law provides a ten-year statute of limitations for personal causes of action, Intevep argued its suit was not barred. The trial judge agreed with Sena and, on January 13, 2000, signed a final summary judgment in favor of Sena. On February 11, 2000, the trial judge signed the parties' agreed order stipulating to the English translation of relevant portions of Venezuela's Organic Labor Law, Civil Code, and certain case law as summary judgment evidence.¹ This appeal followed.

Summary Judgment Standard

The standards for reviewing summary judgment under rule 166a(c) are well established. Jennings v. Burgess, 917 S.W.2d 790, 792 (Tex. 1996); Espalin v. Children's Med. Ctr. of Dallas, 27 S.W.3d 675, 682 (Tex. App.-Dallas 2000, no pet.) (citing Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548 (Tex. 1985)). The summary judgment motion must expressly present specific grounds for summary judgment. McConnell v. Southside Indep. Sch. Dist., 858 S.W.2d 337, 341 (Tex. 1993); Espalin, 27 S.W.3d at 682. To prevail on summary judgment, the defendant must either disprove at least one element of each of the plaintiff's theories of recovery or plead and conclusively establish each essential element of an affirmative defense, thereby rebutting the plaintiff's cause of action. Int'l Union United Auto. Aerospace & Agric. Implement Workers of Am. Local 119 v. Johnson Controls, Inc., 813 S.W.2d 558, 563 (Tex. App.-Dallas 1991, writ denied). A matter is conclusively established if ordinary minds could not differ as to the conclusion to be drawn from the evidence. Triton Oil & Gas Corp. v. Marine Contractors & Supply, Inc., 644 S.W.2d 443, 446 (Tex. 1982). Once the defendant establishes its right to summary judgment as a matter of law, the burden shifts to the plaintiff to present evidence raising a genuine issue of material fact, thereby precluding summary judgment. City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 (Tex. 1979); Muckelroy v. Richardson Indep. Sch. Dist., 884 S.W.2d 825, 828 (Tex. App.-Dallas 1994, writ denied).

Statute of Limitations

In three issues, Intevep contends the trial judge erred in granting Sena summary judgment on the ground that its breach of contract claim was barred by the Venezuelan one-year statute of limitations. Intevep first claims that because it filed suit in Collin County, the Texas four-year statute of limitations for breach of contract applies. Alternatively, Intevep argues that if Venezuelan law applies, we should apply the Venezuelan ten-year statute of limitations because its cause of action arose from Sena's breach of a nonemployment-based contract. In contrast, Sena contends the Scholarship Agreement is an employment contract and, because Venezuela's Organic Labor Law controls all rights and obligations involving labor issues, Intevep's cause of action is barred by the one-year statute of limitations provided in Venezuela's Organic Labor Law. After reviewing the summary judgment record, we agree with Sena.

The statute of limitations is a procedural issue. Baker Hughes, Inc. v. Keco R.& D., Inc., 12 S.W.3d 1, 4 (Tex. 1999); Hollander v. Capon, 853 S.W.2d 723, 727 (Tex. App.-Houston [1st Dist.] 1993, writ denied). As a general rule, questions of substantive law are controlled by the laws of the state where the cause of action arose, but matters of remedy and procedure are governed by the laws of the state where the action is sought to be maintained. California v. Copus, 158 Tex. 196, 201, 309 S.W.2d 227, 230 (1958). However, when the statute that creates a right of action incorporates an express limitation upon the time within which the suit may be brought, the statute of limitations is considered substantive. Eurocapital Group, Ltd. v. Goldman Sachs & Co., 17 S.W.3d 426, 431 (Tex. App.-Houston [1st Dist.] 2000, no pet.); Culpepper v. Daniel Indus., Inc., 500 S.W.2d 958, 959 (Tex. Civ. App.-Houston [1st Dist.] 1973, writ ref'd n.r.e.); see also Francis v. Herrin Transp. Co., 432 S.W.2d 710, 713 (Tex. 1968) (holding that Texas statute of limitations does not confer right to recover if, under statute or law of state or country where wrongful act occurred, right to maintain action and recover damages no longer exists because of limitations). Therefore, if a Venezuelan statute created the right of action Intevep asserts in this case and provided a limitations period, Venezuelan law applies. Otherwise, the limitations issue is procedural, and Texas law applies. However, to determine whether the legal right Intevep seeks to enforce in this case is created by statute, we must first determine whether the Scholarship Agreement is an employment contract.

The record in this case includes an agreed translation of a Venezuelan case, Intevep v. Matheus, Third Super. Ct. in Civ., Mercantile and Traffic Matters in the Jud. Dist. of the Metro. Area of Caracas (October 23, 1998). In that case, Intevep sued Matheus, a former...