Howard v. Cherokee Health Systems

CourtDistrict Court, E.D. Tennessee
DecidedSeptember 30, 2024
Docket2:22-cv-00134
StatusUnknown

This text of Howard v. Cherokee Health Systems (Howard v. Cherokee Health Systems) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard v. Cherokee Health Systems, (E.D. Tenn. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TENNESSEE AT GREENEVILLE

JEFFREY W. HOWARD, ) ) Plaintiff, ) ) v. ) No.: 2:22-CV-134-KAC-CRW ) CHEROKEE HEALTH SYSTEMS, ) ) Defendant. ) ) )

MEMORANDUM OPINION AND ORDER

This action is before the Court on Defendant Cherokee Health Systems’s “Motion for Summary Judgment” [Doc. 11]. Because there are no genuine disputes of material fact and Defendant is entitled to judgment as a matter of law, the Court GRANTS Defendant’s “Motion for Summary Judgment” [Doc. 11]. I. Background1 A. Plaintiff’s Tenure At Cherokee Health Systems Plaintiff Jeffrey W. Howard began working for Defendant part time in college and was hired full time as controller in 1992 [Doc. 12 at 67 (Deposition of Jeffery W. Howard (“Howard Dep.”) 13:21-23)]. Dr. Dennis Freeman hired Plaintiff, and Plaintiff reported to him [Id. (Howard Dep. 14:16-23)]. Freeman served as Defendant’s Chief Executive Officer (“CEO”) from 1978 until February 1, 2022 [Id. at 31 (10/26/2021 Cherokee Board of Directors Meeting Minutes (“10/26/2021 Board Meeting Minutes” at 3)]. By 2000, Plaintiff ascended to the position of Chief

1 Because Plaintiff is the nonmoving Party, the Court describes the facts in the light most favorable to him. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986); Nat’l Satellite Sports, Inc. v. Eliadis, Inc., 253 F.3d 900, 907 (6th Cir. 2001). Financial Officer (“CFO”) at Cherokee Health Systems, despite leaving temporarily for another position [Id. at 68 (Howard Dep. 14:4-23; 19:3-9)]. Plaintiff continued to serve as CFO, reporting to Freeman, until Plaintiff was terminated [Id. (Howard Dep. 19:13-15)]. Plaintiff believes that throughout Freeman’s tenure, Freeman “protected” certain female employees, giving them his “favorite attention” [Id. at 70 (Howard Dep. 27:3-18)]. To Plaintiff,

“it just seemed that everyone that was advanced was female” [Id. at 71 (Howard Dep. 32:7-8)]. Plaintiff points to Tracey Garner as one example [See id. (Howard Dep. 25:1-8)]. Freeman elevated Garner to “leader of” Defendant’s “most complicated office and [Garner] did not have qualifications for that” [Id. at 69 (Howard Dep. 23:1-5)]. Plaintiff thinks “[t]here were probably multiple complaints” about Garner’s performance, but “people could not discipline [her] because she would go straight to Dr. Freeman and get her way” [Id. (Howard Dep. 23:18-19; 24:6-8)]. Plaintiff believes Garner received this treatment because of an alleged affair with Freeman [See id. (Howard Dep. 24:11-17)]. Garner, however, recalls Freeman repeatedly attempting to hold her hand or kiss her in a

work setting, despite her consistently telling him no [Doc. 20 at 31-32 (Deposition of Tracey Garner (“Garner Dep.”) 18:18-20:14)]. And Freeman excluded Garner from an important business trip after she told him “to make sure that [they] had separate rooms” [Id. at 31 (Garner Dep. 17:8-13)]. Garner left Defendant’s employ as part of a 2012 agreement to settle an Equal Employment Opportunity Commission charge she filed against Defendant regarding Freeman’s conduct [Id. at 30 (Garner Dep. 9:3-9; 10:1-3; 12:25-13:15)]. But Garner confirmed that if someone crossed one of Freeman’s “favored” employees, Freeman “would find a way to get rid of” that person [Id. at 36 (Garner Dep. 45:12-13)]. And in Garner’s opinion, men simply could not have a “long-lasting role” at Cherokee Health Systems [Id. at 34 (Garner Dep. 33:1-2)]. Garner points to Freeman’s wife—Rhonda Freeman—as an example of Freeman favoring certain females. [Id. at 34 (Garner Dep. 31:12-16)]. Freeman’s relationship with his wife began as an office affair at Cherokee Health Systems [See id. at 33-34 (Garner Dep. 31:12-18)]. But Mrs. Freeman left her position at Cherokee Health Systems before she married Freeman in 2000 [See id. at 47 (Howard Dep. 82:16-25; 83:1-8)]. And as another example, Plaintiff recalls that

after Freeman and Plaintiff conducted an interview of Stephanie Hall, a potential hire who was female, Freeman commented “I don’t know whether to hire her or date her” [See Doc. 12 at 71 (Howard Dep. 32:9-12)]. Plaintiff states that not “all [of Freeman’s] favoritism was sexual” [Id. at 70 (Howard Dep. 28:16-17)]. From Plaintiff’s perspective, “[i]f [the female employees] were overweight,” then Freeman “would bash them every chance he got” [Id. (Howard Dep. 28:19-20]. During Plaintiff’s tenure with Defendant, he never communicated to anyone that he believed Freeman was discriminating on the basis of sex [See Doc. 12 at 73 (Howard Dep. 37:6-23)]. B. Freeman’s Resignation As early as 2019, Freeman was preparing Defendant’s Chief Clinical Officer, Parinda Khatri a female, to take over as CEO [See id. at 75 (Howard Dep. 49:23-25; 50:1-14)]. Plaintiff

initially encouraged Freeman to elevate Khatri to Deputy CEO [See id. (Howard Dep. 49:3-7)]. In April 2019, Plaintiff wrote to Freeman that he “used to want to try [his] hand at CEO” but he “learned more over the last few years” and saw that he was “probably not the best choice[]” [See id. at 47 (4/16/2019 Email between Howard and Freeman)]. Plaintiff explained that Khatri “may not know everything about contracts and business but those are easier gap [sic] to fill” and assessed that Khatri “will be great but I think laying out a formal transition would go a long way” [Id.]. Plaintiff also assessed that Freeman had a strong “bias toward having a clinician,” like Khatri, succeed him as CEO [Id. at 48 (10/29/2021 Email between Howard and Khatri)]. In 2019, Freeman declined Plaintiff’s suggestion to elevate Khatri to Deputy CEO [See id. at 46 (04/17/2019 Email between Howard and Freeman)]. But on October 26, 2021, Freeman announced to the Board of Directors of Cherokee Health Systems that he would retire effective January 31, 2022 [See id. at 31 (10/26/2021 Board Meeting Minutes at 3)]. As part of the announcement, he recommended that the Board select Khatri to

replace him as CEO [See id. (10/26/2021 Board Meeting Minutes at 3)]. C. Plaintiff’s Termination Within a few days of Freeman’s announcement, Freeman called Plaintiff to inform him of Freeman’s anticipated resignation and recommendation that Khatri become CEO [See id. at 74 (Howard Dep. 43:20-23)]. The conversation turned to Plaintiff potentially applying to be CEO [See id. (Howard Dep. 43:18-19)]. According to Plaintiff, Freeman told him that “[he] would have the opportunity to apply” and that “nothing was in place” [Id. (Howard Dep. 43:25-44:1; 44:14- 15)]. Freeman “didn’t even think the Board had started” the process of replacing Freeman [See id. (Howard Dep. 44:15-16)]. On October 29, 2021, Plaintiff sent an email to Kenneth Knight, Chairman of the Cherokee Health Systems Board, and David Purkey, a Board Member, expressing his interest in applying to

be CEO [See id. at 49 (10/29/2021 Email between Howard, Knight, and Purkey)]. Plaintiff then emailed Khatri to inform her that “[they were] competing for the same position” [See id. at 48 (10/29/2021 Email between Howard and Khatri)]. Khatri’s only reply was “I am in shock” [Id. at 91 (Deposition of Parinda Khatri (“Khatri Dep.”) 30:13)]. Khatri did not respond to further emails or calls from Plaintiff [See id. at 94 (Khatri Dep. 30:11-14)]. Khatri sent a text message to Freeman indicating that she could not “believe [Plaintiff] would create division at CHS at this critical time and go against [Freeman’s] plan” [See id. (Khatri Dep. 52:3-5)]. Thereafter, in late October, Freeman held an unscheduled “meeting” with his assistant Sandra Greear and Khatri to discuss Plaintiff’s professed intent to apply for the CEO position. [See Doc.

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Howard v. Cherokee Health Systems, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-cherokee-health-systems-tned-2024.