551 S.W.3d 702
Tenn.2018Background
- David R. Smith, a former Lieutenant Colonel in the Tennessee National Guard (a state entity), was removed from a full‑time AGR position after an active‑duty tour in 2010 and alleged USERRA violations when he was not rehired.
- Smith first sued the Guard for violation of USERRA on August 8, 2011; that suit was dismissed for lack of subject‑matter jurisdiction based on sovereign immunity, and the dismissal was affirmed on appeal.
- In 2014 the Tennessee General Assembly enacted Tenn. Code Ann. § 29‑20‑208, explicitly waiving sovereign immunity for USERRA claims but making the waiver effective July 1, 2014 and limited to claims "accruing on or after" that date.
- Smith moved for relief and later filed a new complaint in 2016 alleging the same USERRA claim and challenging the constitutionality of the July 1, 2014 accrual limitation as conflicting with federal law that bars statutes of limitation on USERRA claims.
- The trial court dismissed Smith’s 2016 complaint on sovereign‑immunity grounds (claim accrued before July 1, 2014). A divided Court of Appeals reversed, holding accrual occurred when the waiver created a right to sue (July 1, 2014). The Tennessee Supreme Court granted review.
- The Supreme Court held Smith’s claim accrued before July 1, 2014 (he had actual knowledge by August 8, 2011), so the statutory waiver did not apply and sovereign immunity barred the suit; it reversed the Court of Appeals and reinstated the trial court dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Tennessee’s 2014 waiver of sovereign immunity for USERRA applies to Smith’s claim | Smith argued the waiver (§29‑20‑208) and federal law eliminated any accrual cutoff or that accrual should be measured when the waiver created a right to sue (July 1, 2014) | Guard argued waiver expressly limited to claims "accruing on or after" July 1, 2014, and Smith’s claim accrued in 2011 | Held: Waiver clearly limited to claims accruing on/after July 1, 2014; Smith’s claim accrued before that date and is barred by sovereign immunity |
| When did Smith’s USERRA claim accrue for purposes of the statutory waiver | Smith: accrual occurred when the state waiver gave a judicial remedy (i.e., July 1, 2014) | Guard: accrual occurred when Smith knew or should have known of the injury and its cause (by Aug. 8, 2011) | Held: Accrual follows Tennessee discovery‑rule cases; Smith had actual knowledge by Aug. 8, 2011, so accrual predated July 1, 2014 |
| Whether the accrual limitation in §29‑20‑208 unlawfully imposes a statute of limitations in conflict with federal USERRA provisions | Smith contended the state limit functionally imposed a statute of limitations contrary to 38 U.S.C. § 4327(b) | Guard contended §29‑20‑208 merely set an effective date for the waiver and did not impose a limitations period | Held: Court resolved case on accrual/sovereign immunity grounds and did not adopt Smith’s Supremacy Clause/statute‑of‑limitations argument; waiver’s effective‑date language stands |
| Proper construction of waivers of sovereign immunity and effect on accrual | Smith urged a remedial construction that would allow his suit to proceed | Guard urged strict construction of waivers and application of established accrual doctrine | Held: Waivers must be "plain, clear, and unmistakable" and construed narrowly; accrual follows established Tennessee law (discovery rule), so waiver did not revive pre‑existing claims |
Key Cases Cited
- Mullins v. State, 320 S.W.3d 273 (Tenn. 2010) (waiver of sovereign immunity must be explicit)
- Teeters v. Currey, 518 S.W.2d 512 (Tenn. 1974) (adoption of discovery rule for accrual)
- Redwing v. Catholic Bishop for Diocese of Memphis, 363 S.W.3d 436 (Tenn. 2012) (discussion of discovery rule and accrual when facts put reasonable person on notice)
- Wyatt v. A‑Best Co., 910 S.W.2d 851 (Tenn. 1995) (definition of when a "judicial remedy" exists and accrual requires knowledge of injury and tortious origin)
- Moreno v. City of Clarksville, 479 S.W.3d 795 (Tenn. 2015) (statutory construction principles and presumption about legislative knowledge of existing law)