416 S.W.3d 402
Tenn. Ct. App.2011Background
- Thompson, a long-time senior executive at MLGW, was passed over for the president position in 2004.
- Lee became MLGW president in July 2004 and later eliminated Thompson's SVP/COO position in September 2004.
- Thompson alleged that the elimination occurred after he cooperated with FBI investigations and opposed a proposed MLGW bond sale
- Thompson filed suit in March 2007 asserting violations of Tennessee's Public Protection Act and asserting tortious interference and conspiracy claims against Lee and MLGW.
- The trial court dismissed the Third Amended Complaint for failure to state a claim under Rule 12.02(6); on appeal, the court affirms the dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Public Protection Act retaliation elements | Thompson asserts facts showing illegal activities and retaliation | MLGW/Lee argue no illegal activities and no causal link | Claim dismissed for lack of sufficient illegal activities and causation |
| Loudermill due process right | Thompson claims policy/custom gave a property interest requiring pre-termination process | He was an at-will employee with no due process right to a Loudermill hearing | No due process right; no Loudermill hearing where Thompson was an at-will employee and not discharged |
Key Cases Cited
- Stein v. Davidson Hotel Co., 945 S.W.2d 714 (Tenn. 1997) (pleading standards; liberality in construing complaints in dismissal context)
- Franklin v. Swift Transp. Co., Inc., 210 S.W.3d 521 (Tenn. Ct. App. 2006) (at-will doctrine; retaliatory discharge limited exception)
- Forrester v. Stockstill, 869 S.W.2d 328 (Tenn. 1994) (three-party interference; officer/employee actions within authority; malice nuances)
- Ladd v. Roane Hoisery, Inc., 556 S.W.2d 758 (Tenn. 1977) (elements of intentional interference with employment)
- Nelson v. Martin, 958 S.W.2d 643 (Tenn. 1997) (three-party relationship; third-party interference standing)
- Cleveland Bd. of Education v. Loudermill, 470 U.S. 532 (1985) (due process for public employees; pre-termination hearing)