ÿWPC éW(¾ç¸ëµ«œc&3iw¨Ò³„‘:)Ïðí8´«œ`dÖÞ;ÛÔ»|§3yn‚|ñÙyó{9h|øŸ;”dÊ á‰é—vb½ve·¾²ûÖ&ûÃë|†Çyw‰̃záE¯í¥îÂËú–K” =ß;Óä]ë-3~œy=èu q• ¤Æç»6¿K\ÿóÑ«Ö°F¨&ÈKáå]rzÃ+ˆ‰÷Õ .4K¡çû[‡Ybp`þıŸ±n›Ü¢ÍZA¾áÑ ð4#«¨Ì8@É8± Ì_¨MXf “ÄLÖsDm’ÜpÝeGßyXö(üLÙfûÒh;ÖÒn€¾©¾˜ºS¯|û¿Ò[ü$CËÇ»}Ò–u¬1#ˆX¾þ ¦þ½o +KÔYNå¬õ×FKù"\œ½‘«ö³ƒ¹;{Æ9žRLJ.M_«†ì¯bioŽ&üu—ðK)¢ò»ä # #¶Â‚se5¤p÷2$_ÕÉûáƨQ2”½¬çë‹HL^> ¨èd©L„‘%Ò•;ª…ÇCî°/ë˜gƒÊ)Æqkê¸à¡i&õžØŽoù»à·Þqf~.×ex´¿Ö¤˜PÖf_oXˆøÃ9êÀäË|œÞb#É\ %% ^ + 0ˆ7 UN¿ w 4 z% ÒŸ q € m‚ UN™ Æç Æ­ ÆsÆ9 0DÿNC°EEEõõõõõõõõõõõõõõõõõõõõõõõõb÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷ 0ëÿÿÿÿ Bêê 0¤ D3« D-Þ 0K   ASVÆ© 0¤o 0D A«W˜\\IB01S08\KNOXCLERK4ÈÈ,,,,ÈÈ0»;–1Þ (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman RegularÖƒF1ê:i¢Ø+00 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ(ÖÃ9 Z‹6Times New Roman RegularLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó BIGGSREINSMANJerriproactivelyBlackwelderMorrillBourdette t]he- ù-(|G2ÞË$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€½»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€XI™X»»Ô d(|3‡}$££Ý ƒ£ª!ÝÑ€.ÑÑ8€½»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3‡}$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€½»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€½»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÔ€¼½»»»ÔÑ8€I™XXdì»»d8Ñà@¦ ¦ ìàIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@””$ìàAT€KNOXVILLEˆÐ  Ðà@ººìàSeptember€22,€2004€SessionˆÐ Ô$ ÐÔ‡XI™X»¼½ÔÌò òÔ#†¼½»XXI™¤#ÔÓ  ÓJERRY€BIGGS€v.€REINSMAN€EQUESTRIAN€PRODUCTS,€INC.òòóóÔ‡XI™X»¼½Ôó óÐ Ò" ÐÓêÓÌà@ã ã ìàò òDirect€Appeal€from€the€Chancery€Court€for€Bradley€CountyˆÐ Ò " Ðà@  ìàNo.€00„369€€€€€€Hon.€Jerri€S.€Bryant,€ChancellorˆÐ ¾  ÐÌÌà@ìì*ìàßA€V) °°` d€÷E<` A߈Ð ‚Ò  ÐÌà@` ` ìàNo.€E2004„00172„Ô_ÔCOAÔ_Ô„R3„CV€€„€FILED€DECEMBER€22,€Ô_Ô2004Ô_ԈР}Í  ÐÌßA€V) °°` dE<T` AßÐ U¥  Ðó óÌPlaintiff€sued€for€breach€of€employment€contract.€€The€Trial€Court€found€a€breach€and€awardedÐ P   Ðdamages.€€On€appeal€we€hold€the€employer€had€just€cause€to€terminate,€and€reverse€Judgment.Ð <Œ Ðà  àÌÔ#†¼½»XXI™-#ÔÔ‡XI™X»¼½ÔÌò òTenn.€R.€App.€P.3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Reversed.ó óÐ P ÐÌÌòòHerschel€Pickens€Franks,€Ô_ÔP.Jóó.Ô_Ô,€delivered€the€opinion€of€the€court,€in€whichòò€€D.€Michael€Ô_ÔSwineyÔ_Ô,Ð Ä ÐJóó.,€and€òòSharon€G.€Lee,€Jóó.,€joined.Ð ° ÐÌÔ#†¼½»XXI™¥#ÔÔ‡XI™X»¼½Ôà  àÌMichael€A.€Anderson,€Chattanooga,€Tennessee,€for€Appellant.Ð tÄ ÐÌCharles€D.€Lawson,€Chattanooga,€Tennessee,€for€Appellee.Ð Lœ ÐÌÌÌà@66'ìàò òOPINIONó óÔ#†¼½»XXI™Q#ÔÔ‡XI™X»¼½ÔˆÐ ü!L! ÐÌÌà  àà ` àIn€this€breach€of€contract€action,€the€Trial€Court€determined€that€defendant€breachedÐ À$ $ Ðplaintiffððs€employment€contract€by€terminating€plaintiffððs€employment€without€cause,€and€enteredÐ ¬%ü % Ðjudgment€for€$45,000.00€for€plaintiff.Ð ˜&è!& ÐÌà  àà ` àDefendant€has€appealed,€insisting€there€was€just€cause€to€terminate€plaintiffððsÐ p(À#( Ðemployment.Ð \)¬$) ÐÌà  àà ` àÔ‡ X<ÃXXXI™ÔThe€evidence€before€this€Chancellor€established€that€Biggs€owned€his€own€customÐ 4+„&+ Ðsaddle€and€leather€working€shop€in€Florida€for€about€20€years.€€He€is€a€skilled€craftsman,€having€beenÐ  ,p', Ðschooled€in€the€leather€working€crafts€in€his€youth€by€his€father,€and€had€one€employee€in€his€shop.€Ð  -\(-ýÆ ÐÔ_ÔBiggs€had€known€Glen€Taylor,€one€of€the€owners€of€Reinsman€Equestrian€Products,€for€severalÐ ° Ðyears.€€Taylor€was€impressed€with€Biggsðð€quality€and€craftsmanship€with€leather.€€In€1998€TaylorÐ œì Ðapproached€Biggs€about€coming€to€work€for€Reinsman€and€starting€up€and€running€a€leather„worksÐ ˆØ Ðfactory,€a€new€product€line€which€was€an€area€of€expansion€for€the€company.€€€Biggs€was€notÐ tÄ Ðinterested€initially,€but€continued€discussions€with€Taylor€about€the€idea.€€Biggs€had€no€experienceÐ `° Ðin€factory€and€production€work€or€in€managing€a€factory€and€advised€the€defendant€owners€that€heÐ L œ Ðdid€not€think€he€was€right€for€the€job.€€Ð 8 ˆ ÐÌà  àà ` àHowever,€Biggs€was€offered€the€position€at€an€annual€salary€of€$45,000.00,€andÐ  ` Ðdefendant€asked€him€to€write€up€an€agreement€for€them€to€consider.Ð ü L  ÐÌà  àà ` àBiggs€prepared€an€agreement€in€letter€form,€which€states€in€pertinent€part:Ð Ô$  ÐÌà0  àà0` (#(#àThis€agreement€is€for€a€term€of€five€years,€starting€from€three€to€six€months€from€theÐ ¬ü  Ðdate€of€this€agreement.€€If€the€employer€terminates€the€employee€before€the€five€yearÐ ˜è  Ðterm€the€employer€agrees€to€pay€the€employee€the€sum€of€one€years€salary€toÐ „Ô  Ðcompensate€him€for€the€default€of€the€agreement.€€The€employee€also€agrees€to€a€five„Ð pÀ Ðyear€agreement,€if€the€employee€leaves€the€employment€of€the€employer€before€theÐ \¬ Ðfive€year€agreement€is€fulfilled€he€agrees€to€pay€the€employer€the€sum€of€one€yearsÐ H˜ Ðsalary€to€compensate€the€employer€for€default€of€this€agreement.Ð4„` (#` (# ÐÌà  àà ` àThe€owners€reviewed€and€accepted€the€terms€of€Biggsðð€letter€of€agreement,€and€heÐ  \ Ðrelocated€to€Cleveland,€Tennessee,€and€began€working€for€Reinsman€in€August€of€1998.€€The€initialÐ øH Ðduties€involved€designing€a€line€of€leather€products€to€be€manufactured€and€offered€for€sale,€settingÐ ä4 Ðup€equipment€and€fixtures€in€the€factory,€and€training€and€supervising€of€new€employees.€€ThisÐ Ð  Ðprocess€took€€4„6€months,€and€production€commenced€in€the€Spring€of€1999.€€Ð ¼  Ðà  àÌà  àà ` àThe€employer€had€no€problem€with€the€product€development€and€design.€€During€hisÐ ”ä Ðtenure€Biggs€designed€approximately€50„75€new€products€for€the€defendant.€€However,€the€employerÐ €Ð Ðconcluded€that€his€performance€as€manager€was€deficient,€and€reached€the€point€where€terminationÐ l¼ Ðof€the€employment€relationship€was€justified.€€Taylor€testified€that€Biggs€encountered€problems€withÐ X ¨ Ðemployee€absenteeism€and€retention,€meeting€production€goals,€quality€control,€and€training,€as€wellÐ D!” Ðas€problems€with€Biggsðð€performance€of€administrative€duties,€numerous€errors€and€omissions€inÐ 0"€  Ðnecessary€paperwork€and€record€keeping€that€cost€the€company€time€and€efficiency,€failure€toÐ #l! Ðadequately€train€and€supervise€the€employees,€and€not€maintaining€the€production€equipmentÐ $X" Ðproperly.€€Taylor€further€testified€that€Biggs€performance€showed€no€improvement€despite€frequent,Ð ô$D # Ðand€in€depth€counseling€from€his€superiors€for€these€deficiencies,€all€of€which€resulted€in€his€failureÐ à%0!$ Ðto€attain€standards€sought€by€defendant.€€On€September€26,€2000,€the€company€terminated€BiggsððÐ Ì&"% Ðemployment.€Ð ¸'#& ÐÌà  àà ` àAfter€hearing€the€evidence,€the€Chancellor€entered€judgment€for€the€plaintiff€and€heldÐ )à$( Ðthat€in€the€circumstance€of€an€employment€contract€with€a€definite€term€the€employee€may€beÐ |*Ì%) Ðdischarged€before€the€end€of€the€term€for€cause€which€she€defined€as:€€Ð h+¸&* Їà0  àà0` (#(#àsomething€inconsistent€with€the€relationship€of€master/servant€or€incompatible€withÐ ° Ðthe€due€and€faithful€performance€of€his€duties.€€Some€cases€have€held€dishonesty,Ð œì Ðunfaithfulness€to€the€employerððs€interest,€or€anything€which€indicates€an€unfitness€forÐ ˆØ Ðservice€for€which€the€employee€was€engaged.€€It€must€injure€the€masterððs€business€orÐ tÄ Ðreputation,€although€proof€of€actual€damages€is€not€necessary.Ð`°` (#` (# ÐÌà0  àà0` (#(#àHere€thereððs€no€showing€that€the€employee€was€dishonest€or€unfaithful€or€didÐ 8 ˆ Ðanything€proactively€adverse€to€the€employerððs€interest,€so€that€the€Court€is€enteringÐ $ t Ðjudgment€in€favor€of€the€plaintiff.€€Ð `` (#` (# ÐÓ€ÓÌÓ€Óà  àà ` àSince€this€case€was€tried€without€a€jury,€we€review€the€case€òòde€novoóó€upon€the€record,Ð ^®  Ðwith€a€presumption€of€the€correctness€of€the€findings€of€fact€by€the€Trial€Court,€unless€the€evidenceÐ Jš  Ðpreponderates€against€the€findings.€€However,€we€review€questions€of€law€òòde€novoóó€with€noÐ 6†  Ðpresumption€of€correctness.€€òòóóTenn.€R.€App.€P.,€13(d).Ð "r  ÐÌà  àà ` àð ðWhether€good€cause€exists€to€terminate€an€employment€contract€is€a€determinationÐ úJ Ðmade€on€a€case„by„case€basis,€and€exists€where€the€discharge€is€ððobjectively€reasonable.ððððòòóó€òòVideoÐ æ6 ÐCatalog€Channel,€Inc.,€v.€Blackwelder,óó€1997€WL€581120€(Tenn.€Ct.€App.).€€€When€cause€is€requiredÐ Ò" Ðfor€discharging€an€employee,€the€employer€has€the€burden€of€proving€the€existence€of€good€cause.€Ð ¾ ÐòòPhillips€v.€Morrill€Electric,€Inc.,óó1999€WL€771511€(Tenn.€Ct.€App.)Ð ªú ÐÌòòóóà  àà ` àThe€failure€to€faithfully€perform€express€or€implied€duties€gives€the€employer€the€rightÐ ‚Ò Ðto€terminate€the€employment€contract€for€cause,€prior€to€the€expiration€of€its€terms€without€incurringÐ n¾ Ðliability.€€òòJackson€v.€The€Texas€Company,óó€10€Tenn.€App.€235€(Tenn.€Ct.€App.€1929).Ð Zª Ðà8  àÐ Ð Ð  Ðà  àà ` àInattention€to€duty€is€sufficient€cause€for€discharge,€since€it€is€incumbent€upon€theÐ 2‚ Ðemployee€to€reasonably€perform€to€advance€and€develop€the€employerððs€business.€€òòWyatt€v.€Brown,óóÐ n Ð42€S.W.€478,€481€(Tenn.€Chan.€App.€1897)€.€€In€general,€any€act€which€tends€to€injure€the€employerððsÐ  Z Ðbusiness,€interests,€or€reputation€will€justify€termination€of€an€employment€agreement,€and€actualÐ öF Ðloss€need€not€be€proven.€€òòCurtis€v.€Reeves,óó€736€S.W.2d€108,€112€(Tenn.€Ct.€App.€1987).€€As€a€generalÐ â2 Ðrule,€acts€which€are€sufficient€to€be€good€cause€for€dismissal€of€a€manager€are€quantitatively€andÐ Î  Ðqualitatively€distinct€from€those€required€to€terminate€an€employee€possessing€less€responsibility€andÐ º!   Ðdiscretion.€€òòSee€Thomas€v.€Bourdetteóó,òò€et€uxóó,€608€P.2d€178€(Oregon€App.€1980).Ð ¦"ö! ÐÌà  àà ` àThe€Trial€Courtððs€reasoning€in€the€instant€case€carries€an€implication€that€becauseÐ ~$Î# Ðthere€was€no€intent€or€malice€or€malfeasance€on€plaintiffððs€part,€that€the€employer€failed€to€show€justÐ j%º $ Ðcause€for€terminating€the€employment.€€The€standard€does€not€require€an€element€of€intent€to€showÐ V&¦!% Ðjust€cause.€€Sub„performance€that€compromises€the€employerððs€interest€or€impedes€the€companyððsÐ B'’"& Ðprogress€will€justify€the€termination€for€cause.€€òòSeeóó€òòBooth€v.€Fredððs€Inc.,óó€2003€WL€21998410;€òòWyattÐ .(~#' Ðv.€Brown,óó€42€S.W.€478€(Tenn.€Chan.€App.€1897).Ô#†XI™XX X<È #ÔÔ‡ X<ÃXXXI™ÔÔ#† ¼f' »X X<Ã`#ÔÔ‡ X<ÃX » ¼f'ÔÐ )j$( Ðà  àà ` àÌà  àà ` àIn€òòLawrence€v.€Rawlingsóó,€2001€WL€76266€this€Court€was€faced€with€interpreting€ð ðforÐ ò*B&* Ðcauseðð€termination€in€the€context€of€the€statute€providing€for€the€grievance€procedure€for€employeesÐ Þ+.'+ Ðof€Tennessee€educational€institutions.€€The€statute€itself€did€not€define€the€term,€so€this€Court€lookedÐ ° Ðto€opinions€construing€the€term€in€the€private€employment€context,€observing€that€ð ð[t]he€types€ofÐ œì Ðððcauseðð€that€warrant€an€employeeððs€termination€include€an€employeeððs€inattention€to€his€or€her€dutyÐ ˆØ Ðto€look€after€the€employerððs€best€interests€or€performance€of€an€action€inconsistent€with€theÐ tÄ Ðemployer„employee€relationship.ðð€€òòId.óó€at€*5òò.€€óóPlaintiff€points€out€that€òòLawrence€óódeals€with€a€statuteÐ `° Ðgoverning€state€employment€situations€and€therefore€should€not€be€applicable€to€the€instant€case,€butÐ L œ Ðthere€is€nothing€in€the€opinion€that€would€distinguish€the€principles€therein€from€application€to€theÐ 8 ˆ Ðfacts€of€this€case.€€€The€Court€in€òòLawrence€óórejected€the€defendantððs€argument€attempting€to€limit€theÐ $ t Ðscope€of€ð ðfor€causeðð€termination€to€acts€of€serious€misconduct,€intentional€wrongdoing,€and€otherÐ  ` Ðintolerable€behaviors,€concluding€that€the€concept€is€much€broader:Ð ü L  ÐÌà0  àà0` (#(#àà ¸ àWe€have€concluded€that€an€employee€has€been€terminated€for€cause€if€theÐ Ô$  Ðemployeeððs€termination€stems€from€a€job„related€ground.€€A€job„related€groundÐ À  Ðincludes€any€act€that€is€inconsistent€with€the€continued€existence€of€the€employer„Ð ¬ü  Ðemployee€relationship.€€Thus,€an€employee€has€been€terminated€for€cause€if€theÐ ˜è  Ðtermination€stems€from€the€employeeððs€failure€to€follow€a€supervisorððs€directions,Ð „Ô  Ðpoor€job€performance,€or€failure€in€the€execution€of€assigned€duties.ÐpÀ` (#` (# ÐÌòòÓ€ÓId.€óóat€*5.€òò€óóÐ H˜ ÐÌà  àà ` àÓ€ÓIn€this€case,€the€evidence€establishes€that€plaintiffððs€job€performance€was€deficientÐ  \ Ðacross€several€areas,€and€a€consistent€pattern€of€errors€and€poor€management€did€not€advance€theÐ øH Ðcompanyððs€interest.€€Moreover,€the€evidence€established€that€plaintiff€was€unable€to€improve€evenÐ ä4 Ðthough€he€received€frequent,€detailed€counseling€from€senior€management.€Ð Ð  ÐÌà  àà ` àIn€this€regard,€plaintiff€sincerely€argues€that€defendant€did€not€hire€him€for€hisÐ ¨ø Ðmanagement€skills€or€expertise,€and€since€there€was€ð ðnot€a€concernðð€regarding€the€leather€workingÐ ”ä ÐBiggs€was€hired€to€perform,€and€did€in€fact€perform,€defendant€was€precluded€as€a€matter€of€lawÐ €Ð Ðfrom€establishing€that€Briggs€was€terminated€for€cause.€€Plaintiffððs€testimony€undercuts€this€premise.€Ð l¼ ÐPlaintiff€acknowledged€that€he€knew€that€his€job€responsibilities€included€overseeing€the€lines€thatÐ X ¨ Ðhe€had€created,€and€that€his€duties€would€include€supervising€production€after€the€product€wasÐ D!”  Ðdeveloped.€€He€admitted€that€he€knew€that€he€would€have€the€additional€responsibility€of€trainingÐ 0"€! Ðemployees€to€do€the€work€promptly€and€avoid€employee€turnover,€and€that€his€duties€includedÐ #l" Ðordering€raw€materials,€maintaining€the€equipment,€and€preparing€work€orders€and€assisting€withÐ $X# Ðother€work.Ð ô$D $ ÐÌà  àà ` àWith€hindsight,€it€is€obvious€that€plaintiff€is€skilled€as€a€craftsman,€but€not€as€aÐ Ì&"& Ðproduction€line€manager.€€The€law€pertaining€to€discharge€for€cause€does€not€provide€for€a€mismatchÐ ¸'#' Ðof€employee€skills€to€the€requirements€of€the€job€as€a€defense€to€termination€for€unsatisfactoryÐ ¤(ô#( Ðperformance.€€Contrary€to€the€Trial€Courtððs€conclusion,€plaintiffððs€inability€to€perform€the€dutiesÐ )à$) Ðrequired€by€his€position,€was€conduct€adverse€to€the€employerððs€interest,€regardless€of€his€intentionÐ |*Ì%* Ðor€reason€for€the€deficiency.Ð h+¸&+ Їà  àà ` àWe€conclude€the€Trial€Court€erred€in€finding€that€defendant€terminated€plaintiffÐ ° Ðwithout€just€cause,€because€the€Trial€Court€applied€the€wrong€standard.Ð œì ÐÌà  àà ` àThe€Judgment€of€the€Trial€Court€is€reversed€and€the€cause€remanded.€€The€cost€of€theÐ tÄ Ðappeal€is€assessed€to€Jerry€Biggs.Ð `° ÐÌÔ#†XI™XX X<Ãò+#ÔÔ#†¼½»XXI™4,#ÔÔ‡XI™X»¼½ÔòòÌóóÔ#†¼½»XXI™Ç?#ÔÔ‡XI™X»¼½ÔÌÌà  àà ` àà ¸ àà  àà h àà À àà  à______________________________Ð ü L  Ðà  àà ` àà ¸ àà  àà h àà À àà  àòòHerschel€Pickens€Franks,€P.J.Ð è 8  ÐóóÔ#†¼½»XXI™@#ÔÔ‡XI™X»¼½Ôà  àà ` àÌÔ#†¼½»XXI™gA#ÔÔ‡XI™X»¼½Ôòòóó