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Posted by: Tanja Trezise on Jul 17, 2014

Court: TN Court of Appeals

Attorneys 1:

Mary Dohner Smith, Marcia Dawn McShane, Peter A. Malanchuk, Nashville, Tennessee, for the appellant, Clinically Home, LLC.

Attorneys 2:

Steven Allen Riley, James Nathaniel Bowen, Nashville, Tennessee, for the appellee, Michael O’Neil.

Judge(s): MCMILLAN

The Chief Executive Officer of a Company and the Company executed an Employment Agreement that covered, among other issues, consequences of termination with or without cause, either by the Officer or by the Company. A year or so later, the Officer called a meeting and issued an ultimatum to the board of directors threatening to resign if certain changes were not made. The Company later wrote a letter to the Officer accepting his resignation without “Good Reason” as defined in the Employment Agreement. The Officer asserted the Company terminated him “without cause” and that he did not resign. The Company responded that it did not terminate the Officer, but simply accepted his resignation. The Officer filed a complaint seeking severance pay and other benefits he claimed he was entitled to pursuant to the Employment Agreement. The trial court agreed with the Officer and granted his motion for summary judgment. The Company appealed, and we affirm the trial court’s judgment.