Randy Earls v. Joe D. Blankenship, M.D., d/b/a Mednorth Clinic, PLLC

CourtCourt of Appeals of Tennessee
DecidedAugust 16, 2010
DocketW2009-01959-COA-R3-CV
StatusPublished

This text of Randy Earls v. Joe D. Blankenship, M.D., d/b/a Mednorth Clinic, PLLC (Randy Earls v. Joe D. Blankenship, M.D., d/b/a Mednorth Clinic, PLLC) 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
Randy Earls v. Joe D. Blankenship, M.D., d/b/a Mednorth Clinic, PLLC, (Tenn. Ct. App. 2010).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT JACKSON JUNE 16, 2010 Session

RANDY EARLS v. JOE D. BLANKENSHIP, M.D., D/B/A MEDNORTH CLINIC, PLLC

Direct Appeal from the Chancery Court for Madison County No. 64460 James F. Butler, Chancellor

No. W2009-01959-COA-R3-CV - Filed August 16, 2010

This appeal involves a dispute between an employee and his employer regarding whether the employer agreed to pay off the employee’s student loans as part of his employment compensation package. Following a bench trial, the trial court found that no valid contract existed, and it dismissed the employee’s complaint. The employee appeals. We affirm.

Tenn. R. App. P. 3; Appeal as of Right; Judgment of the Chancery Court Affirmed

A LAN E. H IGHERS, P.J., W.S., delivered the opinion of the Court, in which D AVID R. F ARMER, J., and J. S TEVEN S TAFFORD, J., joined.

Beau E. Pemberton, Dresden, Tennessee, for the appellant, Randy Earls

M. Scott Smith, Jackson, Tennessee, for the appellee, Joe D. Blankenship, M.D. OPINION

I. F ACTS & P ROCEDURAL H ISTORY

Plaintiff, Randy Earls, is a nurse practitioner. Defendant, Dr. Joe Blankenship, is a practicing physician who operates MedNorth Clinic, PLLC, in Jackson, Tennessee. Mr. Earls was employed at MedNorth from August of 2005 until February of 2007. On February 13, 2007, Mr. Earls instituted this lawsuit against Dr. Blankenship doing business as MedNorth. Mr. Earls alleged that one of the terms of his employment was that his student loans, which totaled $86,000, would be assumed and repaid within a three-year period. Mr. Earls alleged that Dr. Blankenship had breached the parties’ employment contract by failing to satisfy the student loan payments as agreed. He initially sought damages in the amount of $86,000, plus interest and attorney’s fees, but he later amended his complaint to seek only $43,000 in damages, due to the fact that he quit working for Dr. Blankenship after eighteen months.

Dr. Blankenship filed an answer to the complaint in which he denied that he had agreed to assume Mr. Earls’ student loan obligations. Dr. Blankenship also asserted that Mr. Earls’ action was barred by the statute of frauds.

A bench trial was held over the course of several days. It was undisputed that the parties did not enter into a formal, written employment contract when Mr. Earls was hired. In August of 2005, Mr. Earls and Dr. Blankenship had met at Dr. Blankenship’s office and had a lengthy conversation about Mr. Earls’ potential employment at MedNorth, but the parties presented conflicting testimony regarding the content of that conversation. Mr. Earls testified that the parties’ discussed three components of his expected compensation: salary, bonuses, and student loan repayment. According to Mr. Earls, Dr. Blankenship stated that his salary would be $65,000 per year and that he would receive quarterly bonuses that “would be enough to buy [his wife] a new car every three months.” Mr. Earls testified that the parties also discussed the issue of his student loans and the fact that they totaled about $86,000 at that time. According to Mr. Earls, Dr. Blankenship stated that “we could make those disappear over three years. For each year of service, one-third would be taken care of.” Mr. Earls further testified:

A. We would talk about the bonus packages and school loans and to get further details with those, and he would say if a young man was wanting to work here and prove himself that he could make things disappear. . . . Q. Was there any doubt in your mind when you left there what your compensation pa[ck]age was going to be as an employee as a nurse

-2- practitioner there with MedNorth Clinic? A. I knew what my salary was. I knew the bonuses were going to be somewhere around to buy [my wife] a new car and that the school loans would be paid in quarterly – I mean, yearly for three years until they were resolved in three years after employment – after three years of service.

In sum, Mr. Earls testified that he expected to receive, each year, a salary of $65,000, quarterly bonuses of at least $20,000 each, and repayment of one-third of his student loans, which would amount to approximately $29,000 per year. Mr. Earls’ now ex-wife, who had also attended the meeting, similarly testified that when she left the meeting, it was her impression that Mr. Earls “had the job” and that his student loans would be repaid in three years. She said it was her understanding that Dr. Blankenship was going to divide the total amount by three years, then divide by twelve months, so that he would be paying approximately $2,500 toward Mr. Earls’ student loan obligation each month.

During his testimony, Mr. Earls acknowledged that he was only paid $55,000 or $57,000 per year by his previous employer, and that the “compensation package” he expected from MedNorth would total over $173,000 per year. However, he said, “that’s what I expected based on what [Dr. Blankenship] said.” Counsel for Dr. Blankenship then read into evidence Mr. Earls’ deposition testimony, in which he had testified:

[Dr. Blankenship] gave me scenarios if he did this and then he – when I left that night – let me clarify this. I didn’t know if I had the job or not. He wouldn’t commit to anything that night when I left. He threw several, several different things out there he could do for me if I would leave if a young man was looking to do such a job and wanted this and was willing to accept that . . . .

In any event, Mr. Earls went to work for MedNorth soon after the August 2005 discussion, and he continued to make the payments on his student loans throughout the next year. Mr. Earls said that “not much was really mentioned” about his student loans that year, but that “it really wasn’t an issue because we had an agreement that it was going to be one- third paid at the end of the first year of service.” However, he testified that he and Dr. Blankenship did have “heated discussions” about the timing and amount of his bonuses.

Mr. Earls and Dr. Blankenship had another meeting on August 11, 2006. According to Mr. Earls, the purpose of this meeting was “[t]o put things on paper that we had discussed the year previously.” Mr. Earls introduced into evidence a photocopy of a sheet of paper that contained various calculations and notations, which Mr. Earls characterized as a written

-3- contract produced during the August 2006 meeting. A copy of the alleged contract is attached as an addendum to this opinion. The document is entirely handwritten and, in some areas, illegible. The parties agreed that it was mostly in Dr. Blankenship’s handwriting.1 According to Mr. Earls, the document reflects the parties’ agreement that Dr. Blankenship would assume his student loan obligation and repay his loans in three years. He pointed out that the document includes the following calculation:

Total Loans 24,366.55 22,302.89 39,891.73 86,561.17 ÷ 3 = $28,853.72/YR.

However, Mr. Earls further testified that after the parties had been discussing his student loans for some time, Dr. Blankenship put the document aside and said he was going to simply repay all of the student loans at once. Mr. Earls testified,

The last thing he said – my understanding when I was at that office that night – that this piece of paper was drawed up as we talked and talked about everything, put it on paper, and all of a sudden he just puts the paper aside and looked at me and told [m]e, he said, “You know,” he said, “these really do bother you, don’t they?” I said, “Yes, sir.” He said, “Well, I tell you what I’m going to do. I’m going to take care of them.” I said, “What are you telling me?” He said, “I’m telling you that you will never have to worry about those school loans again.

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Randy Earls v. Joe D. Blankenship, M.D., d/b/a Mednorth Clinic, PLLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/randy-earls-v-joe-d-blankenship-md-dba-mednorth-clinic-pllc-tennctapp-2010.