Deena Brell v. Deniece Thomas, Commissioner of the Tennessee Department of Labor and Workforce Development

CourtCourt of Appeals of Tennessee
DecidedMarch 13, 2025
DocketM2024-00300-COA-R3-CV
StatusPublished

This text of Deena Brell v. Deniece Thomas, Commissioner of the Tennessee Department of Labor and Workforce Development (Deena Brell v. Deniece Thomas, Commissioner of the Tennessee Department of Labor and Workforce Development) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deena Brell v. Deniece Thomas, Commissioner of the Tennessee Department of Labor and Workforce Development, (Tenn. Ct. App. 2025).

Opinion

03/13/2025 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE October 22, 2024 Session

DEENA BRELL V. DENIECE THOMAS, COMMISSIONER OF THE TENNESSEE DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT ET AL.

Appeal from the Chancery Court for Rutherford County No. 19CV-1038 Bonita Jo Atwood, Judge

No. M2024-00300-COA-R3-CV

This is an appeal of a denial of unemployment benefits. The issue presented is whether, under Tennessee’s unemployment statutes, an employee who gives her employer notice of her resignation as of a certain date and is terminated by the employer prior to the effective resignation date is disqualified from receiving unemployment benefits on the ground that the employee voluntarily quit. The trial court affirmed the agency’s decision denying benefits. Based upon the plain language of the relevant statutory provision, we conclude that the employee’s actions do not constitute a voluntary decision to quit. Therefore, we reverse the trial court’s decision.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Reversed and Remanded

ANDY D. BENNETT, J., delivered the opinion of the Court, in which FRANK G. CLEMENT, JR., P.J., M.S., and W. NEAL MCBRAYER, J., joined.

David A. Kozlowski and Patricia Louise Sellars, Columbia, Tennessee, for the appellant, Deena Brell.

Jonathan Skrmetti, Attorney General and Reporter, and Jason R. Trautwein, Assistant Attorney General, for the appellee, Commissioner, Tennessee Department of Labor and Workforce Development. OPINION

FACTUAL AND PROCEDURAL BACKGROUND

Deena Brell was a staffing specialist at PeopleReady, a staffing company, from May 2015 through February 2019. On February 15, 2019, the branch manager held a staff meeting where Ms. Brell expected to receive a promotion to assistant branch manager. However, Ms. Brell did not receive a promotion and was upset. She submitted her two- week notice and sent an email to the human resources department requesting guidance on when her last day of work should be so that she could receive accrued PTO (“paid time off”). Ms. Brell asked if she could continue working through February 22 and take the next fifteen days off (using paid leave time), with her last official day being March 15. On the same day, February 15, 2019, the market manager sent Ms. Brell an email stating that the manager had received and accepted her resignation “effective February 22, 2019.” In her email, the market manager copied another employee asking that employee to provide Ms. Brell with details “around COBRA and PTO time.” Ms. Brell came to work and completed her shift on February 18, 2019. Later that day, the branch manager informed Ms. Brell that her employment was terminated effective that day. Ms. Brell received wages only through February 18, 2019.1

On March 3, 2019, Ms. Brell submitted a claim for unemployment benefits to the Tennessee Department of Labor and Workforce Development (“the Department”). After initially informing Ms. Brell that she qualified for unemployment benefits, the Department sent her a letter stating that it had determined that she voluntarily quit her job and, therefore, did not qualify for unemployment benefits. Ms. Brell appealed this decision to the appeals tribunal, which held a hearing2 and affirmed the Department’s decision. Ms. Brell then appealed to the commissioner’s designee, who affirmed the appeals tribunal.

1 In its decision, which the trial court affirmed, the commissioner’s designee made the following key factual findings:

[O]ne hour later [after Ms. Brell submitted her February 15 resignation email to human resources], she receives an E-mail from the Market Manager who formally accepts the Claimant’s resignation effective February 22, 2019. . . .

On Monday, February 18, 2019, after work, the Claimant receives a call from the Branch Manager who informs her not to return to work as per instructions from the Regional Manager, no further details provided. The Claimant expected to receive wages through February 22, 2019, and compensation for her accrued paid time off; however, she only received wages through February 18, 2019.

These factual findings are not in dispute. 2 PeopleReady, Ms. Brell’s employer, did not participate in the proceedings before the Department or the chancery court. -2- On July 2, 2019, Ms. Brell filed a petition for judicial review with the Rutherford County Chancery Court. After a hearing in November 2023, the chancery court affirmed the decision of the commissioner’s designee. In reaching this result, the court reasoned that “Ms. Brell did not take all necessary and reasonable steps to protect her employment” and rejected Ms. Brell’s argument that the precipitating event for her unemployment was a termination. The court concluded that there was substantial and material evidence to support the decision of the commissioner’s designee.

Ms. Brell appeals the chancery court’s decision and raises the issue of whether an employee who submits his or her resignation but is terminated before the resignation becomes effective has voluntarily left his or her employment.

STANDARD OF REVIEW

In reviewing the Department’s decision, we apply the same statutory standard of review applicable in the chancery court:

The chancellor may affirm the decision of the commissioner or the chancellor may reverse, remand or modify the decision if the rights of the petitioner have been prejudiced because the administrative findings, inferences, conclusions or decisions are: (A) In violation of constitutional or statutory provisions; (B) In excess of the statutory authority of the agency; (C) Made upon unlawful procedure; (D) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion; or (E) Unsupported by evidence that is both substantial and material in the light of the entire record.

Tenn. Code Ann. § 50-7-304(i)(2); see Hale v. Neeley, 335 S.W.3d 599, 601 (Tenn. Ct. App. 2010) (stating that, when we review agency decisions in unemployment compensation cases, we apply the same standard of review as the trial court). The task of appellate courts under Tenn. Code Ann. § 50-7-304(i)(2) is to take a “fresh look” at the Department’s decision, not the lower court’s decision. Prac. Ventures, LLC v. Neely, No. W2013-00673-COA-R3-CV, 2014 WL 2809246, at *8 (Tenn. Ct. App. June 19, 2014).

A decision is “arbitrary and capricious” if it “‘is not based on any course of reasoning or exercise of judgment, or . . . disregards the facts or circumstances of the case without some basis that would lead a reasonable person to reach the same conclusion.’” Pittman v. City of Memphis, 360 S.W.3d 382, 389 (Tenn. Ct. App. 2011) (quoting City of Memphis v. Civ. Serv. Comm’n, 238 S.W.3d 238, 243 (Tenn. 2007)). Substantial and material evidence is “‘such relevant evidence as a rational mind might accept to support a

-3- rational conclusion’” and which “furnishes a reasonably sound factual basis for the decision being reviewed.” Jackson Mobilphone Co., Inc. v. Tenn. Pub. Serv. Comm’n, 876 S.W.2d 106, 111 (Tenn. Ct. App. 1993) (quoting Clay Cnty. Manor v. State Dep’t of Health & Env’t, 849 S.W.2d 755, 759 (Tenn. 1993)).

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Deena Brell v. Deniece Thomas, Commissioner of the Tennessee Department of Labor and Workforce Development, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deena-brell-v-deniece-thomas-commissioner-of-the-tennessee-department-of-tennctapp-2025.