Can i file a small claims lawsuit against my mother Home Health Agency?

It depends. You did the right thing by reporting the theft to the police. Hopefully the district attorney’s office is prosecuting the employee for felony theft, and if so the DA may condition any plea bargain on the thief repaying your mother for her loss. You could also sue the employee of the home health agency under the Texas Theft Liability Act, which allows a victim of theft to sue the thief in civil court. Unfortunately, however, it is possible that the thief is judgment-proof because he is penniless or nowhere to be found. Whether you can recover your loss from the home health agency is dependent on the facts in your case. It is not uncommon in these cases for a victim to sue both the employee and the corporation, alleging that the corporation negligently hired the employee and that the assault, theft, etc. was committed in the scope of employment, so that the corporation is vicariously liable for the wrongdoing of its employee. In Texas, an employer is vicariously liable for the torts of its employees committed in the course and scope of their employment. Whether an employee acted in the scope of employment is a fact issue to be determined by a jury. In the case of criminal conduct such as theft, the conduct may fall within the scope of employment if the acts are "foreseeable." However, an employer is not liable for “unimaginable criminal conduct” not related to the employee’s duties. For example, there is a case out of El Paso where a nursing home was held liable for punitive damages when an employee assaulted a resident, because the employee was hired notwithstanding that he had 56 prior convictions for theft. Although the facts of this case are different than yours, I add it here to show that a corporation can be held liable for negligent hiring under the right circumstances. However, in a case out of San Antonio involving employee theft, an insurance company was not liable when an insurance salesman fraudulently charged a customer twice, retaining one deposit in his own bank account. Whether you can recover from the home health agency will depend on the facts of your case (and the case law closest to the facts of your case within the context of employee theft or misappropriation of personal property). You should talk with one or more lawyers in your area.