Jeffrey Howard v. Cherokee Health Systems

CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 2, 2025
Docket24-5981
StatusUnpublished

This text of Jeffrey Howard v. Cherokee Health Systems (Jeffrey Howard v. Cherokee Health Systems) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeffrey Howard v. Cherokee Health Systems, (6th Cir. 2025).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 25a0413n.06

No. 24-5981

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Sep 02, 2025 ) JEFFREY W. HOWARD, KELLY L. STEPHENS, Clerk ) Plaintiff-Appellant, ) ) ON APPEAL FROM THE UNITED v. ) ) STATES DISTRICT COURT FOR ) THE EASTERN DISTRICT OF CHEROKEE HEALTH SYSTEMS, TENNESSEE ) Defendant-Appellee. ) ) OPINION

Before: WHITE, LARSEN, and MURPHY, Circuit Judges.

MURPHY, Circuit Judge. For decades, Jeff Howard served as the chief financial officer

for Cherokee Health Systems. Howard worked under Dennis Freeman, Cherokee’s longstanding

chief executive officer. When Freeman announced his retirement plans, Howard approached him

about applying to be the next CEO. But Freeman recommended a different candidate. Howard

applied anyway, so Freeman fired him. Howard claims that Freeman took this action because he

wanted a female to replace him. And Howard alleges that Cherokee’s board refused to consider

him because his counsel sent a letter complaining about Freeman’s alleged sex discrimination. Yet

Howard failed to produce enough evidence to show that Cherokee’s neutral reasons for these

decisions were pretextual. We thus affirm the grant of summary judgment to Cherokee.

I

In the late 1970s, Cherokee Health Systems “was a small mental health organization” that

had “33 employees” at a single location in Morristown, Tennessee. Letter, R.20, PageID 203. No. 24-5981, Howard v. Cherokee Health Systems

Dr. Dennis Freeman became Cherokee’s CEO in 1978. He served in that role for the next four

decades. During his tenure, this nonprofit healthcare provider grew to “employ 700 staff and

maintain two dozen offices in locations in both east and west Tennessee.” Id. It now offers many

medical services—including “primary care, behavioral health, dental, and pharmacy services”—

“to the underserved population.” Carpenter Aff., R.12, PageID 82.

Howard took a college internship with Cherokee. After his graduation, he worked off and

on for the company. Freeman hired Howard as Cherokee’s CFO around the year 2000. Howard

stayed in that position for over twenty years.

By 2019, speculation began to grow over who would replace Freeman as CEO when he

stepped down. Freeman first wanted Joel Hornberger, who served as the chief strategy officer, to

serve as his successor. But Hornberger felt he was too old for the job and did not want to lead the

entire organization anyway. As for Howard, he conceded in a 2019 email to Freeman that, while

he “used to want to try my hand as CEO,” he was “probably not the best choice.” Email, R.12,

PageID 102. Howard instead proposed Dr. Parinda Khatri, Cherokee’s chief clinical officer, as

Freeman’s replacement. He also suggested that Freeman make Khatri the deputy CEO. But

Freeman declined this latter proposal.

Two years later, the time came for Freeman to pass the torch. In October 2021, he told

Cherokee’s board of directors that he would retire effective January 31, 2022. As the years

progressed, Freeman had started to express a preference for a “clinician”—not an administrator—

to stay in the role of CEO. Howard Dep., R.12, PageID 130. He also came to believe that a

“financial person” would not make a great head of Cherokee. Id., PageID 135. So when he

announced his retirement, he recommended that the board replace him with Dr. Khatri—the same

2 No. 24-5981, Howard v. Cherokee Health Systems

candidate that Howard had recommended earlier. Khatri’s hire also would adhere to the board’s

succession plan, which favored candidates “internal” to Cherokee. Plan, R.20, PageID 239.

At this time, though, Howard had a change of heart over whether he wanted to be CEO.

On October 28, he approached Freeman to ask whether he could apply for the position. Howard

and Freeman had different recollections of this conversation. Howard thought that Freeman

condoned his request to apply while expressing his continued preference for Khatri. But Freeman

thought that Howard had promised not to disrupt the succession process that Freeman had put in

place. Indeed, Howard later admitted that Freeman “thought I promised something that I didn’t

promise”: that he would not apply for the CEO position. Howard Dep., R.12, PageID 132.

The next day, Howard began to lay the groundwork for his application. He emailed two

members of Cherokee’s board of directors to informally let them know his interest in replacing

Freeman. He also sought to be “open” with Khatri about his intent. Email, R.12, PageID 103. He

alerted her in another email that he planned to apply and that the two would unfortunately be

“competing” against each other. Id.

This email did not go over well. Khatri responded with only four words: “I am in shock.”

Khatri Dep., R.12, PageID 146. She also refused to respond to Howard’s follow-up emails. But

Khatri did let Freeman know about Howard’s plans. Freeman asked to see Howard’s email. After

forwarding it, Khatri complained that Howard had “create[d] division at” Cherokee by going

“against” Freeman’s “plan.” Text, R.20, PageID 205. She also expressed concern about what she

believed to be the finance department’s underperformance.

Freeman fired Howard a few days later. In Freeman’s termination letter, he explained that

Howard’s “self-serving actions” had alienated the leadership team, threatened dissension, and

violated Howard’s assurances that he would not disrupt the transition. Letter, R.12, PageID 106.

3 No. 24-5981, Howard v. Cherokee Health Systems

In notes “to the record,” Freeman suggested that Howard had promised that he would not apply

“unless the Board open[ed] up the process” after it passed over Khatri. Notes, R.12, PageID 109.

Freeman thus thought that Howard had lied.

In November, Howard’s lawyers sent a letter to the chair of Cherokee’s board accusing

Freeman of firing Howard out of a desire to ensure that Khatri, a woman, became the CEO. The

lawyers suggested that Freeman had engaged in illegal sex discrimination. They asked the board

to consider Howard for the CEO position and attached a cover letter and resume from Howard

with the correspondence.

This letter caused board members to disagree over how to proceed. One member, Nancy

Sirianni, worried that Howard would sue Cherokee if he did not become CEO and suggested that

they refer the matter to counsel. Another, Michael Covington, suggested that Howard may have a

“viable case” and that he would like “to gain the perspective of other candidates before committing

to a handpicked successor.” Emails, R.12, PageID 114, 116. He also called Khatri to discuss her

application. When he brought up Howard’s termination, Khatri “had a meltdown on the phone.”

Covington Dep., R.20, PageID 198. She could not talk about the matter, which gave Covington

concerns about how she would handle a crisis as CEO. Yet Freeman had a “real problem” with

Covington’s decision to call Khatri and “lashed” out that the board should speak only with

Freeman rather than his staff. Id., PageID 197, 201. Covington had to remind Freeman that he

was not Freeman’s “subordinate” and that Freeman instead served at the board’s pleasure. Id.,

PageID 197.

Ultimately, though, the board’s chair (Ken Knight) moved forward with the “succession

plan” that the board had approved. Email, R.12, PageID 117. In early January 2022, a search

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