Kathryn J. Reitz v. City of Mt. Juliet
M2016-02048-COA-R3-CV
| Tenn. Ct. App. | Aug 31, 2017Background
- Kathryn J. Reitz and the City of Mt. Juliet executed a January 2010 settlement agreement that included a non‑disparagement clause and required the City to provide neutral employment verifications.
- Reitz began working for the TSA in January 2012; in February 2012 the City provided information to the TSA (via OPM) that Reitz claimed violated the non‑disparagement provision.
- Reitz sued in March 2013 asserting breach of contract (and negligent supervision), alleging the City gave negative, not neutral, employment verifications to prospective employers.
- The City moved for summary judgment and, for the motion only, conceded breach and duty but argued Reitz had no competent proof of damages (no lost job, pay reduction, or documentary proof any employer declined her because of the City's statements).
- Reitz acknowledged her TSA employment was not harmed and offered only speculative testimony that the City likely disparaged other prospective employers; she produced no admissible evidence of lost employment, income, or reputational injury.
- The trial court granted summary judgment for the City for lack of proof of damages; the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Reitz produced a genuine factual dispute on damages from the alleged breach of the non‑disparagement clause | Reitz: the fact the City disparaged one employer allows a factfinder to infer it likely disparaged others, supporting damages | City: conceded breach for the motion but argued Reitz presented no admissible evidence of actual damages (no lost employment, income, or documentary proof) | Court: Affirmed summary judgment — Reitz failed to present competent, non‑speculative evidence of damages |
| Whether reputational harm, humiliation, mental anguish are recoverable contract damages here | Reitz: sought such damages as elements of harm from the breach | City: such noneconomic damages are generally not recoverable for breach of contract absent narrow exceptions | Court: Rejected recovery for these damages in this case; plaintiff cited no controlling authority to the contrary |
Key Cases Cited
- Estate of Brown v. Shartle, 402 S.W.3d 193 (Tenn. 2013) (standard of review for summary judgment)
- Rye v. Women’s Care Ctr. of Memphis, MPLLC, 477 S.W.3d 235 (Tenn. 2015) (summary judgment burden and requirements for nonmoving party)
- Moore Constr. Co. v. Clarksville Dep’t of Elec., 707 S.W.2d 1 (Tenn. Ct. App. 1985) (damages may not be speculative)
- Maple Manor Hotel, Inc. v. Metro. Gov’t of Nashville & Davidson County, 543 S.W.2d 593 (Tenn. Ct. App. 1975) (uncertainty and speculation bar recovery of contract damages)