Fleming v. Xerox Connect, Inc.

50 F. App'x 211
Court of Appeals for the Sixth Circuit·Decided October 30, 2002·No. No. 01-5411·Published

Opinion

MERRITT, Circuit Judge.

In this diversity action brought under Tennessee common law, the plaintiff contends that he was fired in retaliation for his refusal to remain silent about what he now describes as defendant Xerox Connect Inc.’s criminal extortion of its client, Columbia Physician Services, for money payment over and above an agreed contract price, in violation of TenmCode Ann. § 39-14-112,1 and its criminal disruption of Columbia’s access to its data through a computer software system, in violation of Tenn.Code Ann. § 39-14-602.2 Xerox counters that its actions were part of a legitimate contract dispute between two sophisticated parties — a far cry from extortion and computer fraud — and that the plaintiff was fired for incompetence and poor management skills. The district court held that, given the ongoing contract dispute between Xerox and Columbia regarding the scope of Xerox’s responsibilities under its fixed-price contract, Xerox’s actions were part of a legitimate business dispute and did not constitute clear violations of Tennessee’s extortion and computer fraud statutes. We agree with the district court.

Recent decisions of the Tennessee Supreme Court have clarified somewhat the contours of the so-called common-law “whistleblower” exception to the at-will employment doctrine. At oral argument, counsel for the plaintiff emphasized the court’s recent statement in Guy v. Mutual of Omaha Insurance Co. that the court’s inquiry “is not limited to whether a particular law or regulation has been violated [, but rather] focuses on whether some important public policy interest embodied in the law has been furthered by the whistle-blowing activity.” 79 S.W.3d 528, 538 (Tenn.2002) (internal quotations omitted). By calling our attention to the above-quoted language, the plaintiff seems to suggest that, to survive summary judgment, he need not demonstrate that Xerox Connect in fact violated the statutes. Rather, he need only demonstrate that, by objecting to coworkers and his supervisor about what he believed were improprieties relating to a computer system shutdown, the plaintiff has advanced an important public policy interest. In our view, however, the plaintiff misconstrues Guy.

Under the whistleblower variant of the public policy exception, employees are protected from discharge in retaliation for speaking out about illegal activities if such conduct furthers an important public policy interest embodied in the law. See id. In Guy, the plaintiff whistleblower did not claim that the employer violated the law. Rather, the court was faced with an insurance agent who had been discharged by his employer after he reported the unlaw[213] ful activity of another insurance agent. As the basis for the public policy violation element of his claim, the plaintiff relied on provisions of Tennessee law listing the various grounds for which the Insurance Commissioner can suspend or revoke an agent’s license. According to the plaintiff, these statutory provisions evidenced the public policy in this state “with respect to protecting the public from the fraudulent activity of insurance agents.” Id. at 537. The employer argued that because the employer itself had not violated any statute or regulation, and because the employee was under no statutory duty to report the unlawful activity, then the plaintiff had failed to establish the “clear public policy” necessary to form the basis of a retaliatory discharge claim. The Tennessee Supreme Court agreed with the plaintiff, finding that although the employer itself had not violated any statute or regulation, there is in this state a recognized public policy interest behind “encouraging insurance companies and others interested to bring to the attention of the Insurance Commissioner the derelictions of agents.” Id. at 538 (internal quotations omitted) (citing Independent Life Ins. Co. v. Rodgers, 165 Tenn. 447, 55 S.W.2d 767, 770 (1933)). In reaching its conclusion, the court reaffirmed the primary foundation of the public policy exception: “Our inquiry ... is not limited to whether a particular law or regulation has been violated; rather, our inquiry focuses on whether some important public policy interest embodied in the law has been furthered by the whistleblowing activity.” Id. (internal quotations omitted). Guy’s focus on the furtherance of the public good sets the stage for two significant developments in the court’s efforts to define the common-law retaliatory discharge claim: (1) an employee whose “whistleblowing” is intended to expose the illegal conduct of someone other than the employer can maintain a common-law cause of action for retaliatory discharge; and (2) an employer’s discharge can violate a public policy interest evidenced by a judicial declaration of the law.

Unlike the plaintiff in Guy, however, the plaintiff here contends that his own employer violated two specific criminal statutes. He does not attempt to locate the source of the public policy at issue outside his employer’s alleged statutory violations. Therefore, the public policy basis for his claim for retaliatory discharge rests squarely on the alleged statutory violations and his decision to speak out in opposition to them. Accordingly, whether Xerox’s actions could reasonably be viewed as clearly constituting either offense remains the key to whether the public policy element of the tort of retaliatory discharge has been satisfied. See Chism v. Mid-South Milling Co., 762 S.W.2d 552, 556 (Tenn.1988) (holding that the plaintiff must show “a clear violation of some well-defined and established public policy”).

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Fleming v. Xerox Connect, Inc., 50 F. App'x 211 (6th Cir. 2002).

50 F. App'x 211 (Fleming v. Xerox Connect, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Guy v. Mutual of Omaha Insurance Co.
79 S.W.3d 528 (Tennessee Supreme Court, 2002)
Chism v. Mid-South Milling Co., Inc.
762 S.W.2d 552 (Tennessee Supreme Court, 1988)
Independent Life Insurance v. Rodgers
55 S.W.2d 767 (Tennessee Supreme Court, 1933)