CAROL PETSCHONEK v. THE CATHOLIC DIOCESE OF MEMPHIS, ET AL. (Tenn. Ct. App. May 23, 2012)
Defendant employer moved for summary judgment in this common law retaliatory discharge action on the grounds that Plaintiff employee was not an employee-at-will and that Plaintiff had failed to identify any law or clear public policy allegedly violated by Defendant. The trial court denied the motion.
We granted permission for interlocutory appeal. On appeal, Defendant raises the issue of whether the courts lack jurisdiction under the ministerial exception. We hold that the court has subject matter jurisdiction. We also hold that Plaintiff was not an at-will employee, and therefore cannot establish a prima facie case of common law retaliatory discharge. The trial court’s judgment denying Defendant’s motion for summary judgment is reversed.
Opinion available at:
https://www.tba.org/sites/default/files/petschonekc_052312_0.pdf
Concurring opinion:
https://www.tba.org/sites/default/files/petschonekc_CON_052312_0.pdf
Showing posts with label at-will employment. Show all posts
Showing posts with label at-will employment. Show all posts
Saturday, June 2, 2012
Thursday, September 24, 2009
Court reviews whether a non-compete contract is enforceable for an at-will employee who allegedy signed it under duress
CUMMINGS INCORPORATED v. TERRY J. DORGAN, JR. (Tenn. Ct. App. September 24, 2009)
This appeal involves an employment agreement and a non-compete covenant. The defendant sales representative was employed as a salesperson by the employer sign company. The parties executed an agreement setting out the structure of the employee's compensation, to be effective for three years. Prior to the expiration of the agreement, the plaintiff employer asked the employee to sign a new contract, changing his pay from straight commissions to salary plus commissions, as well as a separate two-year non-compete contract. The employee initially declined to sign the new contracts, but ultimately did so because he was told that he would be terminated if he refused. Over a year later, the employee quit to work for one of the plaintiff's competitors, and began soliciting his previous employer's largest account. The employer filed this lawsuit to enforce the non-compete contract. The employee asserted that the non-compete contract was unenforceable and filed a counterclaim, alleging breach of contract.
After a bench trial, the trial court enforced the non-compete contract, but held that the new compensation contract, executed on threat of termination, was void because it was signed under duress. The trial court awarded the employee damages. The employer now appeals, arguing that the new compensation contract was not signed under duress. The employee argues on appeal that the non-compete contract is unenforceable, because it was not supported by consideration and was also signed under duress.
We find that the defendant employee was an employee-at-will of the plaintiff company. On this basis, we reverse the trial court's finding that the new compensation contract was signed under duress, because threatening an at-will employee with termination does not constitute duress under the circumstances. We affirm the trial court's holding that the non-compete contract was enforceable.
Opinion available at:
http://www.tba2.org/tba_files/TCA/2009/dorgant_092409.pdf
This appeal involves an employment agreement and a non-compete covenant. The defendant sales representative was employed as a salesperson by the employer sign company. The parties executed an agreement setting out the structure of the employee's compensation, to be effective for three years. Prior to the expiration of the agreement, the plaintiff employer asked the employee to sign a new contract, changing his pay from straight commissions to salary plus commissions, as well as a separate two-year non-compete contract. The employee initially declined to sign the new contracts, but ultimately did so because he was told that he would be terminated if he refused. Over a year later, the employee quit to work for one of the plaintiff's competitors, and began soliciting his previous employer's largest account. The employer filed this lawsuit to enforce the non-compete contract. The employee asserted that the non-compete contract was unenforceable and filed a counterclaim, alleging breach of contract.
After a bench trial, the trial court enforced the non-compete contract, but held that the new compensation contract, executed on threat of termination, was void because it was signed under duress. The trial court awarded the employee damages. The employer now appeals, arguing that the new compensation contract was not signed under duress. The employee argues on appeal that the non-compete contract is unenforceable, because it was not supported by consideration and was also signed under duress.
We find that the defendant employee was an employee-at-will of the plaintiff company. On this basis, we reverse the trial court's finding that the new compensation contract was signed under duress, because threatening an at-will employee with termination does not constitute duress under the circumstances. We affirm the trial court's holding that the non-compete contract was enforceable.
Opinion available at:
http://www.tba2.org/tba_files/TCA/2009/dorgant_092409.pdf
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