Charles Haynes v. Formac Stables, Inc.
463 S.W.3d 34
| Tenn. | 2015Background
- Charles Haynes, a horse groom employed by Formac Stables, was kicked by a horse at work, received head wounds sutured by a veterinarian at the owner’s insistence, and later complained to the owner about resulting headaches.
- Haynes alleged the owner refused to allow medical treatment and threatened his job; Haynes claims he was terminated for refusing to remain silent about the illegal stitching procedure.
- Haynes sued for retaliatory discharge under Tennessee common law and the Tennessee Public Protection Act (TPPA), alleging whistleblower protection.
- The trial court dismissed for failure to state a claim because Haynes had only reported the misconduct to the owner—the alleged wrongdoer; the Court of Appeals affirmed.
- The Tennessee Supreme Court granted review to resolve whether reporting wrongdoing only to the person responsible (including owners/managers) can satisfy the reporting requirement for whistleblower claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an employee must report employer wrongdoing to someone other than the wrongdoer to qualify as a whistleblower | Haynes: reporting to the owner/manager who is also the wrongdoer should suffice; otherwise managers could evade liability and internal correction would be discouraged | Formac: reporting only to the wrongdoer does not further the public interest and thus does not meet the public-reporting requirement | Held: Employee must report to someone other than the wrongdoer; when the wrongdoer is the owner/manager, reporting to an outside entity may be required; Emerson overruled to the extent inconsistent |
Key Cases Cited
- Clanton v. Cain-Sloan Co., 677 S.W.2d 441 (Tenn. 1984) (recognized common-law retaliatory discharge exception to at-will employment)
- Stein v. Davidson Hotel Co., 945 S.W.2d 714 (Tenn. 1997) (summary of Tennessee at-will employment doctrine)
- Crews v. Buckman Labs. Int’l, Inc., 78 S.W.3d 852 (Tenn. 2002) (elements for retaliatory discharge claim)
- Guy v. Mut. of Omaha Ins. Co., 79 S.W.3d 528 (Tenn. 2002) (distinction between TPPA and common law and focus on public interest in reporting)
- Gossett v. Tractor Supply Co., 320 S.W.3d 777 (Tenn. 2010) (whistleblower claims arise where employee refuses to remain silent about illegal/unsafe practices)
- Emerson v. Oak Ridge Research, Inc., 187 S.W.3d 364 (Tenn. Ct. App. 2005) (held reporting to an offending supervisor who also served as management could suffice; overruled here to extent inconsistent)
- Collins v. AmSouth Bank, 241 S.W.3d 879 (Tenn. Ct. App. 2007) (internal reporting may qualify but not if to the person responsible)
- Lawson v. Adams, 338 S.W.3d 486 (Tenn. Ct. App. 2010) (employee who reported only to owner responsible for unsafe conduct did not qualify as whistleblower)
