Kenneth J. Mynatt v. National Treasury Employees Union, Chapter 39

CourtCourt of Appeals of Tennessee
DecidedSeptember 28, 2021
DocketM2020-01285-COA-R3-CV
StatusPublished

This text of Kenneth J. Mynatt v. National Treasury Employees Union, Chapter 39 (Kenneth J. Mynatt v. National Treasury Employees Union, Chapter 39) 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
Kenneth J. Mynatt v. National Treasury Employees Union, Chapter 39, (Tenn. Ct. App. 2021).

Opinion

09/28/2021 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE Assigned on Briefs July 1, 2021

KENNETH J. MYNATT v. NATIONAL TREASURY EMPLOYEES UNION, CHAPTER 39 ET AL.

Appeal from the Circuit Court for Rutherford County No. 75CC1-2020-CV-77158 Darrell Scarlett, Judge ___________________________________

No. M2020-01285-COA-R3-CV ___________________________________

This case involves claims of malicious prosecution and civil conspiracy. The trial court dismissed the claims pursuant to Tennessee Rule of Civil Procedure 12.02(6), determining that the plaintiff could not prove that the underlying criminal prosecution had terminated in his favor, a necessary element of a malicious prosecution claim. Regarding the civil conspiracy claim, the court determined that the conspiracy claim was only actionable if the underlying tort were actionable. Having found that the malicious prosecution claim could not stand, the court concluded that the conspiracy claim had to be dismissed as well. The plaintiff timely appealed. Based upon the applicable standard of review, we conclude that the trial court erred in dismissing the plaintiff’s claims, and we accordingly reverse the judgment of dismissal and remand this matter to the trial court for further proceedings.

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

THOMAS R. FRIERSON, II, J., delivered the opinion of the court, in which W. NEAL MCBRAYER and KENNY W. ARMSTRONG, JJ., joined.

Daniel A. Horwitz and Lindsay B. Smith, Nashville, Tennessee, for the appellant, Kenneth J. Mynatt.

Leon Dayan and Elisabeth Oppenheimer, Washington, D.C., and Anthony A. Orlandi, Nashville, Tennessee, for the appellees, National Treasury Employees Union; National Treasury Employees Union, Chapter 39; John Van Atta; Anthony Reardon; and Colleen Kelley. OPINION

I. Factual and Procedural Background

On April 29, 2020, the plaintiff, Kenneth J. Mynatt, filed a complaint in the Rutherford County Circuit Court (“trial court”) against the following defendants: National Treasury Employees Union (“the Union”); National Treasury Employees Union, Chapter 39 (“Chapter 39”); John Van Atta; Anthony Reardon; and Colleen Kelley (collectively, “Defendants”).1 Mr. Mynatt asserted that he had been a full-time bargaining unit employee of the United States Department of Treasury, Internal Revenue Service (“IRS”) since 1991. As such, Mr. Mynatt had the option of being a member of the Union. Mr. Mynatt stated that after joining the Union, he was assigned to Chapter 39, which was headquartered in Nashville.

Mr. Mynatt further asserted that in September 2009, he ran for the office of executive vice-president of Chapter 39 and was elected to a three-year term. Chapter 39 members concomitantly elected Mr. Van Atta as president. According to Mr. Mynatt, Mr. Van Atta and he were assigned as full-time stewards of Chapter 39, which represents approximately 600 bargaining unit employees in Tennessee, and Mr. Van Atta appointed himself as bookkeeper and treasurer for Chapter 39. Mr. Mynatt averred that only Mr. Van Atta and he maintained authority to sign checks for Chapter 39 or use its debit card, although Mr. Van Atta had sole possession of those items.

Mr. Mynatt claimed that Mr. Van Atta removed him from his stewardship position on July 13, 2011, following Mr. Mynatt’s involvement in ongoing, publicized criticism of IRS management as well as Ms. Kelley, the Union’s then-president, regarding alleged financial waste. According to Mr. Mynatt, Mr. Van Atta subsequently accused him of misuse of the Union’s funds. Mr. Mynatt averred that although he was indicted by the State District Attorney General’s office and charged with two felonies based on information purportedly stemming from Mr. Van Atta, those charges were later “retired” for a one-year period and subsequently dismissed on November 28, 2016.

Mr. Mynatt stated that he filed an action in federal district court on November 14, 2017. The federal court dismissed the action, however, on June 10, 2019, and refused to exercise supplemental jurisdiction over Mr. Mynatt’s state law claims against Defendants. Mr. Mynatt therefore alleged that his complaint was timely pursuant to Tennessee Code Annotated §§ 28-1-105 and -115. Mr. Mynatt asserted claims of malicious prosecution and civil conspiracy, seeking awards of compensatory and punitive damages as well as attorney’s fees.

1 Mr. Reardon is identified in the complaint as the current president of the Union. -2- On June 22, 2020, Defendants filed a motion to dismiss, contending that Mr. Mynatt’s complaint failed to state a claim upon which relief could be granted. Mr. Mynatt filed a response opposing dismissal. The trial court conducted a hearing on August 7, 2020, and ruled from the bench at the conclusion of the hearing, dismissing Mr. Mynatt’s claims.

The trial court entered an order of dismissal on September 8, 2020. In its order, the trial court stated: “To establish a malicious prosecution claim, a plaintiff must show that the underlying action terminated in the plaintiff’s favor on the merits.” The court found that upon taking Mr. Mynatt’s allegations as true, the disposition of his criminal charges did not support a malicious prosecution claim because a “retirement” of charges was akin to a pretrial diversion or a suspension of the charges, subject to revival at any time. The court further found that even if the charges were dismissed following retirement, such did not constitute a determination on the merits.

In addition, the trial court determined that the conspiracy claim was only actionable if the underlying tort were actionable. Having adjudged that the malicious prosecution claim could not stand, the court concluded that the conspiracy claim had to be dismissed as well. The court accordingly granted Defendants’ motion and dismissed Mr. Mynatt’s claims. Mr. Mynatt timely appealed.

II. Issues Presented

Mr. Mynatt has raised the following issues for our review, which we have condensed and restated slightly:

1. Whether the trial court erred in determining that Mr. Mynatt failed to state a claim of malicious prosecution.

2. Whether the trial court erred in determining that the intermediate retirement of Mr. Mynatt’s criminal charges prior to dismissal of the charges did not constitute a termination in his favor.

3. Whether the trial court erred in dismissing Mr. Mynatt’s claims of malicious prosecution and civil conspiracy.

Defendants raise the following additional issues, which we have likewise restated slightly:

4. Whether Mr. Mynatt’s malicious prosecution claim also fails because he failed to allege that Defendants procured a prosecution without probable cause.

-3- 5. Whether Mr. Mynatt’s civil conspiracy claim also fails because he failed to allege that Defendants had a common design to accomplish an unlawful purpose.

III. Standard of Review

As our Supreme Court has explained concerning motions to dismiss for failure to state a claim under Tennessee Rule of Civil Procedure 12.02(6):

A Rule 12.02(6) motion challenges only the legal sufficiency of the complaint, not the strength of the plaintiff’s proof or evidence. The resolution of a 12.02(6) motion to dismiss is determined by an examination of the pleadings alone. A defendant who files a motion to dismiss “‘admits the truth of all of the relevant and material allegations contained in the complaint, but . . . asserts that the allegations fail to establish a cause of action.’” Brown v. Tenn. Title Loans, Inc., 328 S.W.3d 850, 854 (Tenn. 2010) (quoting Freeman Indus., LLC v. Eastman Chem.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Webb v. Nashville Area Habitat for Humanity, Inc.
346 S.W.3d 422 (Tennessee Supreme Court, 2011)
In Re Estate of Boykin
295 S.W.3d 632 (Court of Appeals of Tennessee, 2008)
Brown v. Tennessee Title Loans, Inc.
328 S.W.3d 850 (Tennessee Supreme Court, 2010)
Freeman Industries, LLC v. Eastman Chemical Co.
172 S.W.3d 512 (Tennessee Supreme Court, 2005)
Crews v. Buckman Laboratories International, Inc.
78 S.W.3d 852 (Tennessee Supreme Court, 2002)
State Ex Rel. Lewis v. State
447 S.W.2d 42 (Court of Criminal Appeals of Tennessee, 1969)
Tigg v. Pirelli Tire Corp.
232 S.W.3d 28 (Tennessee Supreme Court, 2007)
Landers v. Kroger Co.
539 S.W.2d 130 (Court of Appeals of Tennessee, 1976)
Dorrier v. Dark
537 S.W.2d 888 (Tennessee Supreme Court, 1976)
Townes v. Sunbeam Oster Co., Inc.
50 S.W.3d 446 (Court of Appeals of Tennessee, 2001)
Christian v. Lapidus
833 S.W.2d 71 (Tennessee Supreme Court, 1992)
Kerney v. Aetna Casualty & Surety Co.
648 S.W.2d 247 (Court of Appeals of Tennessee, 1982)
Richardson v. State
671 S.W.2d 865 (Court of Criminal Appeals of Tennessee, 1984)
Foshee v. Southern Finance & Thrift Corp.
967 S.W.2d 817 (Court of Appeals of Tennessee, 1997)
Williams v. Norwood
10 Tenn. 329 (Tennessee Supreme Court, 1829)
State ex rel. Underwood v. Brown
244 S.W.2d 168 (Tennessee Supreme Court, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
Kenneth J. Mynatt v. National Treasury Employees Union, Chapter 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenneth-j-mynatt-v-national-treasury-employees-union-chapter-39-tennctapp-2021.