ÿWPC, 5# öU: %; 0(A4i}b Œ˜w@˜ 0JØ 0T" 0^v 0hÔ 0r< 0|® 0†* 0° 1u@U,µ 0dáU,E U*q B)› DCÄ AM T v~b Bà 0@ý vÓ= D3 AOCÆ’ 0DX 0Dœ D/à B˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 ,†r‰AZ‹"Arial RegularX($¡¡Gav >43|x- ù - {|D}D~D€‚DƒÓ€2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(Arial% Line 7 d 7Border 1dd0&!Cþÿ << Gÿÿ Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€ÔÝ  ÝÔ€ÔÓ  Óò òÔ YYY ÔFILEDÔ€XÔÌÌMarch€27,€1996ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔ  Ôó óPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@ d("ÿÿ$££Ò  ÒÒ  ÒStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA: T Monaco ÒÒ  BA: T Monaco Ò%%%%'ÿÿdxd0&23Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó44'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€X„d&ÓÑ#€Xd#ÑÔ€ÔÝ  ÝÒ € ÒÒ „ ÒÑ  ÑÑ\R AØ'\ÑÑ€ÑÑ7€÷‚XXdædÈ7ÑÑ  ÑÑ  ÑAMALIA€DEUS,€M.D.,à àà àà à)Ìà àà àà àà àà àà à)Ìà àPlaintiff/Appellant,à àà àà à)Ìà àà àà àà àà àà à)à àAppeal€No.Ìà àà àà àà àà àà à)à à01„A„01„9507„CH„00284ÌVS.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)à àDavidson€ChanceryÌà àà àà àà àà àà à)à àNo.€93„1227„IÌHAROLD€NEVELS,€M.D.,à àà àà à)ÌRUPERT€A.€FRANCIS,€M.D.,€andà à)ÌÙ€0ÙßL€"#!;+'h|+†` ç `€€LßMEHARRY€MEDICAL€COLLEGE,à à)Ìa€Division€of€George€W.€Hubbardà à)ÌHospital,à àà àà àà àà à)Ìà àà àà àà àà àà à)Ìà àDefendants/Appellees.à àà à)ÌÌÌÌà@ àCOURT€OF€APPEALS€OFÏTENNESSEEÌà@ àMIDDLE€SECTION€AT€NASHVILLEÌÌÌÌAPPEALED€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTYÌAT€NASHVILLE,€TENNESSEEÌÌTHE€HONORABLE€IRVIN€H.€KILCREASE,€JR.,€CHANCELLORÌÌÌÌÌCHARLES€HAMPTON€WHITEÌCORNELIUS€&€COLLINSÌNashville€City€Center,€Suite€2700Ì511€Union€StreetÌNashville,€Tennessee€€37219Ìà àAttorney€for€Plaintiff/AppellantÌÌC.€HAYES€COONEYÌWATKINS,€McGUGIN,€McNEILLY€&€ROWANÌSuite€300,€214€Second€Avenue€NorthÌNashville,€Tennessee€€37201Ìà àAttorney€for€Defendants/AppelleesÌÌÌÌÌà@ àREVERSED€AND€REMANDEDÌÌÌÌÌà àà àà àà àà àà àà àBEN€H.€CANTRELL,€JUDGEÌÌÌCONCUR:ÌTODD,€P.J.,€M.S.ÌKOCH,€J.ÌÌÓ  ÓÓÓà@ àò òòòÔ€„ÔO€P€I€N€I€O€Nó óóóÔ€XÔÌÌà àà àThe€only€question€raised€on€this€appeal€is€whether€Meharry€MedicalÏCollege€breached€its€contract€with€a€medical€postgraduate€student€when€itÏdischarged€her€in€March€of€1993.€€The€Chancery€Court€of€Davidson€CountyÏdismissed€the€complaint,€finding€that€at€the€time€of€her€discharge€the€plaintiff€didÏnot€have€a€contract€for€a€definite€term.€€We€reverse.ÌÌà@ àò òI.ó óÌÌà àà àOn€July€1,€1991,€Dr.€Amalia€Deus€signed€a€contract€as€a€first€yearÏmedical€postgraduate€with€Meharry€Medical€College€for€the€year€July€1,€1991€toÍJune€30,€1992.€€She€immediately€entered€into€the€program€and€started€performingÏunder€the€contract.€€The€contract€specified€her€duties,€her€pay,€her€benefits,€andÏthe€fact€that€the€contract€would€not€be€automatically€renewed.€€The€copy€of€theÏcontract€in€the€record€contains€spaces€for€the€signatures€of€the€DepartmentalÏChairperson,€the€Associate€Dean€for€Graduate€Medical€Education,€the€Director€ofÏMedical€Affairs,€the€Hospital€Administrator,€and€the€President.€€Ultimately,€all€theÏdesignated€officials€signed€in€the€spaces€provided:€€two€of€them€signed€on€AugustÏ16,€1991,€one€on€August€20,€and€the€president€signed€on€October€15,€1991.ÌÌà àà àSome€of€the€faculty€members€at€Meharry€were€not€satisfied€with€Dr.ÏDeus'€performance.€€Dr.€Harold€Nevels,€the€director€of€the€residency€trainingÏprogram,€was€particularly€critical€of€the€way€Dr.€Deus€conducted€herself,Ïspecifically€her€resistance€to€constructive€criticism.€€In€August€of€1991,€Dr.€NevelsÏsuspended€Dr.€Deus€for€two€days€for€insubordination.€€On€March€31,€1992€Dr.ÏNevels€wrote€a€letter€to€Dr.€Deus€characterizing€her€performance€since€July€1€ofÏthe€previous€year€as€sub„standard.€€By€a€copy€of€the€letter€he€recommended€to€Dr.ÏRupert€A.€Francis,€the€chairman€of€the€Department€of€Family€and€PreventiveÏMedicine,€that€Dr.€Deus'€contract€not€be€renewed€for€the€next€year.ÌÌà àà àDr.€Francis€interviewed€Dr.€Deus€and,€despite€Dr.€Nevels'Ïrecommendation,€offered€her€a€contract€for€the€year€beginning€July€1,€1992.€€Dr.ÏDeus€and€Dr.€Francis€executed€the€agreement€on€June€24,€1992.€€The€formÍcontract€„„€identical€to€the€contract€for€the€previous€year,€except€for€the€dates€andÏthe€compensation€„„€did€not€contain€any€signatures€in€the€spaces€designated€forÏthe€other€college€and€hospital€officials.€€At€about€the€same€time,€Dr.€FrancisÏreceived€another€critical€letter€from€Dr.€Nevels€and€one€from€the€head€of€theÏDepartment€of€Obstetrics€and€Gynecology.€€Based€on€this€negative€information,ÏDr.€Francis€decided€to€consult€the€entire€faculty€on€the€question€of€Dr.€Deus'Ïemployment.ÌÌà àà àThe€faculty€met€on€June€30,€1992€and€recommended€that€Dr.€DeusÏbe€allowed€to€resign€or€be€put€on€probation€for€six€months€under€strict€guidelines.€ÏDr.€Francis€communicated€the€faculty€recommendations€to€Dr.€Deus€by€letterÏdated€July€13,€1992€and€asked€her€to€inform€him€by€July€22,€1992€whether€sheÏwould€resign€or€accept€the€other€conditions.€€She€accepted€probation,€and€onÏAugust€5,€1992€she€and€Dr.€Francis€executed€still€another€form€agreementÏcovering€the€period€July€1,€1992€to€December€31,€1992.€€This€time€all€the€otherÏofficials€signed€in€the€spaces€provided.€€The€college€president€signed€last€onÏSeptember€10,€1992.ÌÌà àà àThe€probationary€period€did€not€pass€without€further€incidents,€butÏon€December€15,€1992€the€faculty€committee€appointed€to€monitor€Dr.€Deus'Ïperformance€recommended€that€her€probation€be€lifted.€€A€contract€dated€JanuaryÏ4,€1993€and€covering€the€period€from€January€1,€1993€to€June€30,€1993€wasÍexecuted€by€Dr.€Deus€and€Dr.€Francis€on€March€9,€1993.€€None€of€the€otherÏofficials€signed€it.ÌÌà àà àImmediately,€after€March€9,€1993€another€storm€broke€over€Dr.€Deus.€ÏShe€was€evaluated€by€Dr.€Nevels€on€March€17€and€he€recommended€that€herÏresidency€be€terminated€for€what€he€termed€concern€"about€the€welfare€of€patientsÏin€your€care."€€The€next€day€Dr.€Francis€discharged€Dr.€Deus,€informing€her€thatÏthe€faculty€had€made€a€decision€to€"discharge€you€from€the€Family€PracticeÏResidency€Program€of€Meharry€Medical€College/Hubbard€Hospital."€€The€letterÏconcluded€by€advising€Dr.€Deus€that€she€could€appeal€by€writing€a€letter€to€theÏAssociate€Dean€for€Graduate€Medical€Education€within€seven€days.ÌÌà@ àò òII.ó óÌÌà àà àThe€chancellor€held€that€Dr.€Deus€was€an€employee€at€will€since€theÏcontract€covering€the€period€January€1,€1993€to€June€30,€1993€had€not€beenÏsigned€by€all€the€designated€Meharry€officials.€€We€think€the€evidenceÏpreponderates€in€favor€of€a€finding€that€Dr.€Francis€had€at€least€apparent€authorityÏto€bind€the€university€when€hiring€or€firing€residents.€€Therefore,€the€contractÏsigned€by€him€and€Dr.€Deus€on€March€9,€1993€was€effective€for€its€stated€term.ÌÌà àà àThe€only€evidence€of€Dr.€Francis'€actual€authority€is€the€signatureÏpage€of€each€contract€containing€places€for€the€other€officials€to€sign,€€and€Dr.ÏFrancis'€post€hoc€testimony€that€the€contract€had€to€be€signed€by€all€theÏdesignated€officials€before€it€became€effective.€€Yet€there€is€no€evidence€that€Dr.ÏDeus€was€told€her€employment€depended€on€the€concurrence€of€the€absentÏsubscribing€witnesses.€€When€she€signed€the€first€agreement€on€July€1,€1991€sheÏimmediately€began€performing€under€the€contract.€€Yet,€the€appellees€would€haveÏus€hold€that€as€late€as€October€15,€1991,€when€the€last€official€signed€theÏagreement,€she€was€only€an€employee€at€will€and€was€not€in€the€residencyÏprogram€at€all.ÌÌà àà àThe€record€does€not€contain€any€published€policy€or€institutionalÏbylaw€defining€Dr.€Francis'€power€to€bind€the€institution.€€When€he€decided€toÏrelieve€Dr.€Deus€of€her€duties€he€did€so€on€his€own.€€He€testified€that€none€of€theÏpersons€designated€on€the€contract€had€ever€vetoed€a€decision€he€made€to€hireÏor€fire€a€resident.€€ÌÌà àà à"An€apparent€agent€is€a€person€who,€whether€or€not€authorized,Ïreasonably€appears€to€third€persons,€because€of€the€manifestations€of€another,€toÏbe€authorized€to€act€as€agent€for€such€other."€€òòMcCoy€v.€Willisóó,€145€S.W.2d€1020Ïat€1021,€177€Tenn.€36€at€39€(1940)(quoting€òòThe€Restatement€of€Agencyóó,€Sec.€8,ÏComment€a).€€An€agent's€actions€under€such€circumstances€are€binding€on€theÍprincipal.€€òòRich€Printing€Co.€v.€McKellar's€Estateóó,€330€S.W.2d€361€(Tenn.€App.Ï1959);€òòSouthern€Railway€Co.€v.€Pickleóó,€138€Tenn.€238,€197€S.W.€675€(1917).€ÏUnder€the€circumstances€of€this€case€an€objective€observer€could€only€concludeÏthat€Dr.€Francis€had€the€authority€to€bind€the€university€on€the€employment€ofÏpostgraduate€physicians.ÌÌà@ àò òIII.ó óÌÌà àà àAn€employment€contract€for€a€definite€term€can€only€be€terminatedÏfor€cause.€€òòNelson€Trabue€v.€Prof.€Management€Automotive,€Inc.óó,€589€S.W.2d€661Ï(Tenn.€1979).€€The€defendants€did€not€insist€that€they€terminated€Dr.€Deus€forÏcause.€€Instead€they€relied€solely€on€their€position€that€Dr.€Deus€was€an€employeeÏat€will,€or€that€she€failed€to€exhaust€her€administrative€remedies€under€theÏemployment€contract.€ÌÌà àà àRelative€to€the€administrative€remedies,€the€pertinent€part€of€theÏemployment€contract€provided€under€the€section€headed€"Evaluations":ÌÌÓÓà8 àà8 àà à3.à àThe€Department's€faculty€members€shallÏmeet€and€review€the€Postgraduate€Physician'sÏevaluations€and€vote€on€the€disposition€of€the€his/herÏstatus€no€later€than€the€last€working€day€of€February€ofÏeach€academic€year.€€Postgraduate€Physicians€shallÏbe€notified€of€the€disposition€of€their€status€no€later€thanÍthe€first€working€day€of€April€of€each€academic€year.€ÏPostgraduate€Physicians€whose€contracts€do€notÏcoincide€with€the€academic€year€July€to€June€30€will€beÏnotified€of€the€disposition€of€their€status€no€later€than€90Ïdays€prior€to€the€end€of€their€contract€period.ÌÌà8 àà8 àà à4.à àFair€hearing€procedures€as€approved€byÏthe€Graduate€Medical€Education€Council€from€time€toÏtime€shall€govern€all€Postgraduate€physicianÏgrievances.€€These€procedures€shall€control,€andÏprovide€the€exclusive€means€of€dispute€resolutionÏrelating€to€this€agreement,€notwithstanding€provisionsÏto€the€contrary€in€other€documents€which€may€apply€toÏpostgraduate€physicians€(including€but€not€limited€toÏhospital€bylaws,€etc.).ÌÌÌÌÓÓà àà àThe€contract€does€not€have€a€provision€on€termination€during€theÏterm€of€the€contract.€€It€provides€that€the€faculty€will€meet€and€vote€on€eachÏpostgraduate€physician€by€the€end€of€February€each€year€and€the€postgraduatesÏwill€be€notified€of€their€status€by€the€first€working€day€of€April.€€Under€a€section€ofÏthe€contract€labeled€"Policy"€a€postgraduate€physician€may€be€òòsuspendedóó€by€theÏmedical€director€or€the€department€chairperson€for€the€failure€to€maintain€accurateÏand€current€medical€records€on€patients.ÌÌà àà àWe€think€the€contract€is€ambiguous€on€whether€an€administrativeÏremedy€is€available€when€a€postgraduate€physician€is€summarily€dismissed€fromÏthe€program.€€Dr.€Deus€did€have€a€right€to€file€a€grievance€over€an€unfavorableÏevaluation€(a€procedure€she€had€taken€advantage€of€earlier).€€But€the€contractÍdoes€not€specifically€say€that€she€must€file€a€grievance€over€her€dismissal.€€We,Ïtherefore,€hold€that€the€failure€to€follow€the€grievance€procedure€in€this€case€is€notÏa€bar€to€this€action.ÌÌÌÌà@ àò òIV.ó óÌÌà àà àSince€the€lower€court€did€not€address€the€question€of€damages,€weÏthink€the€cause€should€be€remanded€for€a€consideration€of€that€issue.ÌÌà àà àThe€judgment€of€the€court€below€is€reversed€and€the€cause€isÏremanded€to€the€Chancery€Court€of€Davidson€County€for€further€proceedings€inÏaccordance€with€this€opinion.€€Tax€the€costs€on€appeal€to€Meharry€MedicalÏCollege.ÌÌÌÓÓà àà àà àà àà àà àà à_____________________________Ìà àà àà àà àà àà àà àBEN€H.€CANTRELL,€JUDGEÌÌÌÌCONCUR:ÌÌÌÌÌ_______________________________ÌHENRY€F.€TODD,€PRESIDING€JUDGEÌMIDDLE€SECTIONÌÌÌÌÌ_______________________________ÌWILLIAM€C.€KOCH,€JR.,€JUDGEÌÌÑ  Ñ