Stein v. Davidson Hotel Co.

• Court: Tennessee Supreme Court
• Writing for the Court: DROWOTA; BIRCH
• Citation: Stein v. Davidson Hotel Co., 945 S.W.2d 714 (Tenn. 1997)
• Decision Date: 19 May 1997
• Parties: 12 IER Cases 1636 Evelene N. STEIN, Plaintiff/Appellant, v. DAVIDSON HOTEL COMPANY, Defendant/Appellee.

Page 714

945 S.W.2d 714

12 IER Cases 1636

Evelene N. STEIN, Plaintiff/Appellant, v. DAVIDSON HOTEL COMPANY, Defendant/Appellee.

Supreme Court of Tennessee at Nashville.

May 19, 1997.

Patricia A. Montgomery, Westlake & Marsden, P.C., Nashville, for plaintiff/appellant.

John S. Hicks, Stephen H. Biller, Katherine A. Brown, Baker, Donelson, Bearman & Caldwell, Nashville, for defendant/appellee.

OPINION

DROWOTA, Justice.

The plaintiff, Evelene N. Stein, a private employee, was terminated from her position of banquet captain at the Holiday Inn Crown Plaza which is owned by defendant, Davidson Hotel Company, ¹ a private employer, because she tested positive on a random drug test. Stein brought suit against Davidson alleging seven grounds for relief. Davidson filed a motion to dismiss for failure to state a claim and the trial court granted the motion with respect to five of the seven claims alleged by Stein. The Court of Appeals affirmed the trial court's judgment.

We granted this appeal to determine whether Stein has stated a cause of action for wrongful discharge. We conclude that no clear mandate of public policy is violated when a private employer dismisses a terminable-at-will employee who tests positive on a random drug test. Therefore, we affirm the judgment of the Court of Appeals upholding the trial court's dismissal of Stein's claim for wrongful discharge. ²

BACKGROUND

Stein began working at the Holiday Inn Crowne Plaza on June 6, 1989, when it was owned by Flautt Properties, Inc. Stein had no written contract and was a terminable-at-will employee. In September of 1990, Flautt sold the hotel to Davidson. Stein continued to work at the hotel after the sale. In February of 1992, Davidson instituted a drug and alcohol testing program. The program included pre-employment testing, reasonable suspicion testing, after accident testing, and random drug testing. Prior to instituting the program, Davidson required all employees to sign a consent and release form. According to Stein's allegations, any employee refusing to sign the consent and release form would have been terminated. Stein does not contend that she refused to sign the consent form, but she alleges that she signed the form only because of the perceived threat of termination.

In October of 1994, Davidson advised Stein, who was employed in the position of banquet captain, that she had been selected for a random drug test. Stein went to Roche Biomedical Laboratories, Inc. and provided a sample for urinalysis. Joe Dietz, Stein's immediate supervisor, thereafter informed her that she had tested positive for drug use, but she was not advised of the drugs detected or any other information about the positive result. Later that day, Stein met with other Davidson managers. She denied using illegal drugs and asked that she be given an opportunity to refute and disprove the positive test result. Stein wanted to employ another laboratory to test a different urine sample. Davidson declined to approve Stein's suggestion, but instead offered to have Roche re-test Stein's original urine sample. Stein refused that offer. Thereafter, Davidson terminated Stein's employment as a result of the positive drug test.

On January 9, 1995, Stein filed this action against Davidson. Her complaint alleged several causes of action including: (1) wrongful discharge in violation of public policy; (2) tortious invasion of privacy; (3) breach of an implied employment contract; (4) breach of an implied covenant of good faith and fair dealing; (5) negligence on the part of Davidson; (6) negligent infliction of emotional distress and outrageous conduct; and (7) failure to pay Stein earned vacation time. On March 7, 1995, Davidson filed a "Motion to Dismiss or for Summary Judgment." The trial court granted Davidson's motion to dismiss for failure to state a claim as to counts one, two, three, five, and six on June 9, 1995. With respect to the fourth claim, the trial court took the matter under advisement, and with respect to count seven, the trial court, after reviewing affidavits submitted by the parties, concluded that there was a genuine issue of material fact and denied the motion for summary judgment. The trial court concluded, pursuant to Rule 54.02, Tenn.R.Civ.P., that there were no just reasons for delay, and certified that the order was final for purposes of appeal.

Stein appealed the trial court's dismissal of her wrongful discharge and tortious invasion of privacy claims. The Court of Appeals affirmed the trial court's dismissal of both claims. Thereafter, we granted this appeal to consider whether Stein has stated a cause of action for wrongful discharge. In resolving this question, we must determine whether dismissal of a terminable-at-will employee for testing positive on a random drug test violates a clear mandate of public policy.

STANDARD OF REVIEW

A Rule 12.02(6), Tenn.R.Civ.P., motion to dismiss for failure to state a claim upon which relief can be granted tests only the legal sufficiency of the complaint, not the strength of a plaintiff's proof. Such a motion admits the truth of all relevant and material averments contained in the complaint, but asserts that such facts do not constitute a cause of action. In considering a motion to dismiss, courts should construe the complaint liberally in favor of the plaintiff, taking all allegations of fact as true, and deny the motion unless it appears that the plaintiff can prove no set of facts in support of her claim that would entitle her to relief. Cook v. Spinnaker's of Rivergate, Inc., 878 S.W.2d 934, 938 (Tenn.1994). In considering this appeal from the trial court's grant of the defendant's motion to dismiss, we take all allegations of fact in the plaintiff's complaint as true, and review the lower courts' legal conclusions de novo with no presumption of correctness. Tenn.R.App.P. 13(d); Owens v. Truckstops of America, 915 S.W.2d 420, 424 (Tenn.1996); Cook, supra.

RETALIATORY OR WRONGFUL DISCHARGE

The doctrine of employment-at-will is a long standing rule in this State which recognizes the concomitant right of either the employer or the employee to terminate the employment relationship at any time, for good cause, bad cause, or no cause at all, without being guilty of a legal wrong. Harney v. Meadowbrook Nursing Center, 784 S.W.2d 921, 922 (Tenn.1990); Watson v. Cleveland Chair Co., 789 S.W.2d 538 (Tenn.1989). Both by statute and case law in this and other states, however, some restrictions have been imposed upon the right of an employer to terminate an at-will employee. In Tennessee an employee-at-will generally may not be discharged for attempting to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy which is evidenced by an unambiguous constitutional, statutory, or regulatory provision. See e.g., Mason v. Seaton, 942 S.W.2d 470 (Tenn.1997); Conatser v. Clarksville Coca-Cola, 920 S.W.2d 646 (Tenn.1995); Reynolds v. Ozark Motor Lines, Inc., 887 S.W.2d 822 (Tenn.1994); Anderson v. Standard Register Co., 857 S.W.2d 555 (Tenn.1993); Hodges v. S.C. Toof & Co., 833 S.W.2d 896 (Tenn.1992); Chism v. Mid-South Milling Co., 762 S.W.2d 552 (Tenn.1988); Clanton v. Cain-Sloan Co., 677 S.W.2d 441 (Tenn.1984).

This cause of action for retaliatory or wrongful discharge, which was first recognized by this Court in Clanton, supra, strikes the balance between the employment-at-will doctrine and rights granted employees under well-defined expressions of public policy. Anderson, 857 S.W.2d at 556. The employment-at-will doctrine recognizes that employers need freedom to make their own business judgments without interference from the courts. Mason, 942 S.W.2d at 474. "[A]n employer's ability to make and act upon independent assessments of an employee's abilities and job performance as well as business needs is essential to the free-enterprise system." Clifford v. Cactus Drilling Corp., 419 Mich. 356, 353 N.W.2d 469, 474 (1984). In contrast, the action for retaliatory or wrongful discharge recognizes that, in limited circumstances, ³ certain well-defined, unambiguous principles of public policy confer upon employees implicit rights which must not be circumscribed or chilled by the potential of termination. See Chism v. Mid-South Milling Co., 762 S.W.2d 552, 555-57 (Tenn.1988)(citing examples). Therefore, the tort action of retaliatory or wrongful discharge is available to employees discharged as a consequence of an employer's violation of a clearly expressed public policy. Reynolds, 887 S.W.2d at 823; Hodges, 833 S.W.2d at 899.

This Court has explained its role with respect to discerning public policy as follows:

This Court can know nothing of public policy except from the constitution and the laws, and the course of administration and decision. It has no legislative powers. It cannot amend or modify any legislative acts. It cannot examine questions as expedient or inexpedient, or as politic or impolitic. Considerations of that sort must, in general, be addressed to the legislature. Questions of policy determined there are concluded here.

There are cases, it is true, in which arguments drawn from public policy must have large influence; but these are cases in which the course of legislation and administration do not leave any doubt upon the question what public policy is, and in which what would otherwise be obscure or of doubtful interpretation, may be cleared and resolved by reference to what is already received and established.

Watson, 789 S.W.2d at 540, (quoting Nashville Ry. & Light Co. v. Lawson, 144 Tenn. 78, 91, 229 S.W. 741 (1920)). This Court does not engage in hypothetical guessing to fashion public policy. Unlike other jurisdictions, ⁴ Tennessee courts do not, in the context of wrongful discharge actions, attempt to discern public policy from the common law. See e.g., Reynolds, 887 S.W.2d at 823. Therefore, to prevail in this appeal, Stein must point to a...