FILED

July 2, 1997

Cecil Crowson, Jr.

Appellate Court Clerk

I N THE COURT OF APPEALS

SAMUEL R. ADAMS, e t a l., ) KNOX CHANCERY

 ) C. A. NO. 03A01- 9701- CH- 00017

 Pe t i t i one r s - Appe l l a nt s, )

 )

 )

 )

 )

 )

vs . ) HON. SHARON BELL

 ) CHANCELLOR

 )

 )

 )

 )

 )

MARGARET C. CULPEPPER, ) AFFI RMED AND REMANDED

Commi s s i one r of Te nne s s e e )

De pa r t me nt of Empl oyme nt )

Se c ur i t y, a nd TENNESSEE VALLEY )

AUTHORI TY, )

 )

 Re s ponde nt s - Appe l l e e s )

SAM G. SMI TH, J R. , Moor e & Smith, P. C. , Knoxville f or Appe lla nt s .

EDWARD S. CHRI STENBURY, Ge ne r a l Couns e l , ROBERT C. GLI NSKI ,

Assi s t a nt Ge ne r a l Couns e l , BRENT R. MARQUAND a nd RI CHARD E. RI GGS,

Knoxvi l l e , f or De f e nda nt , Te nne s s e e Va l l e y Aut hor i t y.

J OHN KNOX WALKUP, At t or ne y Ge ne r a l and Re por t e r , and KI MBERLY M.

FRAYN, As s i st a nt At t or ne y Ge ne r a l, Na s hvi l l e , f or Te nne s s e e

De pa r t me nt of Empl oyme nt Se c ur i t y.
1

Th e r e ar e ei g h t y - n i n e ap p e l l a n t s i n t h i s cas e . A comp l e t e l i s t i s at t ach e d

t o t h i s opi n i on as Appe ndi x A.

2

O P I N I O N1

Mc Mur r a y, J .

Thi s i s a n a ppe a l f r om a j udgme nt of t he Cha nc e r y Cour t

of Knox Count y, a f f i r mi ng t he de c i s i on of The De pa r t me nt of

Empl oyme nt Se c ur i t y Boa r d of Re vi e w i n de nyi ng a l l t he a ppe l l a nt s

une mpl oyme nt c ompe ns a t i on be ne f i t s . We a ffi r m t he j udgme nt of t he

t r i a l c our t .

Si mpl y s t a t e d, t he appe l l a nt s he r e vol unt a r i l y accept e d an

i nc e ntive packa ge t o t e r mi na t e the i r e mpl oyme nt by t he Te nne s s e e

Va lle y Aut hor i t y ( TVA) . The pa c ka ge ba s i c a l l y c ons i s t e d of a

c hoi c e by t he i ndi vi dua l e mpl oye e of e i t he r $1, 000. 00 pe r ye a r f or

each ye a r of e mpl oyme nt , wi t h a mi ni mum of $15, 000. 00, or a l ump

s um pa yme nt of s i x mont hs s a l a r y or t hr e e ye a r s a dde d t o t he i r

year s of s e r vi ce f or the pur pos e of c a l c ul a t i on r e t i r e me nt

be ne f i t s . The appe l l a nt s we r e advi s e d t ha t i f t he y accept e d ei t he r

of t he " e a r l y out " i nc e nt i ve pa c ka ge s , t ha t TVA woul d c ont e s t a ny

c l a i m ma de f or une mpl oyme nt c ompe ns a t i on. Not wi t hs t a ndi ng, t he

a ppe l l a nt s f ile d a pplic a tions f or une mpl oyme nt be ne f i t s . Be ne f i t s

we r e de ni e d by t he Te nne s s e e De pa r t me nt of Empl oyme nt Se c ur i t y a t

t he a dmi ni s t r a tive le ve l. An a ppe a l wa s time l y ma de to the
3

Cha ncer y Cour t f or Knox Count y. The c ha nc e r y c our t a f f i r me d t he

de ni a l of be ne f i t s a nd t hi s a ppe a l r e s ul t e d.

The s ol e i s s ue pr e s e nt e d f or r e vi e w i s "whe t he r t he deci s i on

of t he De pa r t me nt of Empl oyme nt Se c ur i t y Boa r d of Re vi e w, a ffi r me d

by the c ha nc e r y c our t , wa s i n e r r or by f i ndi ng tha t T. C. A. Se c tion

50- 7- 303( c ) ( 1) wa s i na ppl i c a bl e t o t he f a c t s of t hi s c a s e . . . . "

Fi r s t , we s houl d not e our s t a nda r d of r e vi e w. Our s t a nda r d of

r e vi e w i s gove r ne d by T. C. A. § 50- 7- 304( I ) , whi c h a l l ows c our t s t o

r e ve r s e , r e ma nd, or modi f y t he de c i s i on of t he Boa r d of Re vi e w onl y

i f t he de c i s i on i s uns uppor t e d by s ubs t a ntia l a nd ma t e r i a l e vi de nc e

i n l i ght of t he e nt i r e r e c or d.

 On a ppe a l , t hi s c our t mus t a l s o de t e r mi ne whe t he r t he r e

i s s ubs t a nt i a l a nd ma t e r i a l e vi de nc e t o s uppor t t he

f i ndi ngs of f a c t ma de by t he l owe r t r i buna l . J ohns on v.

Bi bl e , 707 S. W. 2d 510, 512 ( Te nn. App. 1985) . Subs t a nt i a l

a nd ma t e r i a l evi de nce ha s been de f i ne d as "' s uc h r e l e va nt

e vi de nc e a s a r e a s ona bl e mi nd mi ght a c c e pt t o s uppor t a

r a t i ona l c onc l us i on a nd s uc h a s t o f ur ni s h a r e a s ona bl y

s ound ba s i s f or t he a c t i ons unde r c ons i de r a t i on. ' "

Sout he r n Ry. Co. v. St a t e Bd. Of Equa liz a tion, 682 S. W. 2d

196, 199 ( Te nn. 1984) ( quot i ng Pa c e v. Ga r ba ge Di s t ., 54

Te nn. App. 263, 390 S. W. 2d 461, 463 ( Te nn. App. 1965) ) .

I f t he r e c or d c ont a i ns s uc h e vi de nc e , r e vi e w by t hi s

c our t i s c onf i ne d t o whe t he r t he l owe r t r i buna l e r r e d

whe n it a pplie d the la w to the f a c t s f ound, tha t is ,

r e vi e w i s c onf i ne d to a de novo r e vi e w a s t o que s t i ons of

l aw. Pe r r yma n v. Bi bl e , 653 S. W. 2d 424, 429 ( Te nn. App.

1983) ; I r vi n v. Bi nkl e y, 577 S. W. 2d 677, 678 ( Te nn. App.

1978) .

Pa yne v. Cul pe ppe r , 1997 Te nn. App. , LEXI S 25.
4

The di s pos i t i ve que s t i on he r e i s whe t he r T. C. A. § 50- 7-

303( c ) ( 1) is a ppl i c a bl e to the f a c t s of thi s c a s e . T. C. A. § 50- 7-

303( c ) ( 1) ( i n ef f ect at t he t i me s unde r cons i de r a t i on he r e )

pr ovi de d a s f ol l ows :

( c ) Qua l i f i c a t i ons . Not wi t hs t a ndi ng a ny ot he r pr ovi s i on

of l a w t o t he c ont r a r y:

( 1) Be ne f i t s s ha l l not be de ni e d unde r t hi s c ha pt e r

t o any ot he r wi s e el i gi bl e cl a i ma nt f or s e pa r a t i on

from e mpl oyme nt pur s ua nt t o a l a bor - ma na ge me nt

c ont r act or agr e e me nt , or pur s ua nt t o a n e s t a blis he d e mpl oye r pl a n, pr ogr a m, pol i c y, l a yof f or

r ecal l whi c h pe r mi t s t he cl a i ma nt ( e mpl oyee) ,

becaus e of l ac k of wor k, t o accept a s e pa r a t i on

f r om e mpl oyme nt . Howe ve r , be ne f i t s s ha l l be de ni e d

a c l a i ma nt f or s e pa r a t i on f r om e mpl oyme nt r e s ul t i ng

from t he cl a i ma nt ' s accept a nce of an empl oye r ' s

pr ogr a m whi c h pr ovi de s mone t a r y i nc e nt i ve s t o

e mpl oye e s f or vol unt a r i l y t e r mi na t i ng t he i r e mpl oyme nt . ( Empha s i s a dde d) .

I n t he f i na l a na l ys i s , t he que s t i on be c ome s a que s t i on of

f act . , i . e . , whe t he r t he cl a i ma nt s we r e of f e r e d t he i ncent i ve

packa ge be c a use of "l a ck of wor k. " I f t he i ncent i ve packa ge wa s

offe r e d becaus e of "l ack of wor k" t he cl a i ma nt s ar e ent i t l e d t o

une mpl oyme nt be ne f i t s . Ot he r wi s e , t he y a r e not .

The t r i a l cour t de t e r mi ne d, and we agr ee, t ha t the r e wa s

s ubs t a nt i a l evi de nce i n t he r e c or d t o de mons t r a t e tha t the

c l a i ma nt s le f t the i r e mpl oyme nt vol unt a r ily to r e c e i ve the " e a r l y

out " i nc e nt i ve s . The t r i a l c our t f ur t he r f ound t ha t t he r e wa s no

l ack of wor k at t he t i me t he cl a i ma nt s r e s i gne d. The r ecor d
5

c l ear l y r e f l ect s t ha t at t he t i me t he cl a i ma nt s accept e d t he ear l yout i nc e nt i ve pa c ka ge , t he y ha d t he opt i on of wor ki ng. The y we r e

gua r a nt e e d wor k t hr ough t he f i s c a l ye a r 1995, e ve n t hough s ome of

t he cl a i ma nt s ' j obs we r e de t e r mi ne d t o be "at r i s k" and f a c e d a

like lihood of a r e duc t i on i n f or ce at s ome l a t e r t i me . We agr e e

with t he c onc l us i on of t he c ha nc e l l or t ha t " c onc e r n a bout a

pot e nt i a l l a c k of wor k i n t he f ut ur e doe s not c ons t i t ut e a pr e s e nt

l a c k of wor k. "

I n c onc l us i on, we f i nd t ha t t he c l a i ma nt s do not qua l i f y f or

be ne f i t s unde r t he pr ovi s i ons of T. C. A. § 50- 7- 303( c ) ( 1) . The r e i s

s ubs t a nt i a l a nd ma t e r i a l e vi de nc e i n t he r e c or d t o s uppor t t he

f i ndi ngs of t he Boa r d of Re vi e w a nd t he j udgme nt of t he t r i a l

c our t .

Ac c or di ngl y, t he j udgme nt of t he t r i a l c our t i s a ffi r me d i n

a l l r e s pect s . Cos t s ar e as s e s s e d t o t he appe l l a nt s and t hi s cas e

i s r e ma nde d t o t he t r i a l c our t .

______________________________

 Don T. Mc Mur r a y, J udge

CONCUR:

___________________________________

Cha r l e s D. Sus a no, J r . , J udge
6

___________________________________

William H. Inma n, Se ni or J udge
I N THE COURT OF APPEALS

SAMUEL R. ADAMS, e t a l., ) KNOX CHANCERY

 ) C. A. NO. 03A01- 9701- CH- 00017

 Pe t i t i one r s - Appe l l a nt s, )

 )

 )

 )

 )

 )

vs . ) HON. SHARON BELL

 ) CHANCELLOR

 )

 )

 )

 )

 )

MARGARET C. CULPEPPER, ) AFFI RMED AND REMANDED

Commi s s i one r of Te nne s s e e )

De pa r t me nt of Empl oyme nt )

Se c ur i t y, a nd TENNESSEE VALLEY )

AUTHORI TY, )

 )

 Re s ponde nt s - Appe l l e e s )

JUDGMENT

Thi s appeal came on t o be he a r d upon t he r e c or d f r om t he

Cha ncer y Cour t of Knox Count y, br i e f s a nd a r gume nt of c ouns e l .

Upon c ons i de r a t i on t he r e of , t hi s Cour t i s of opi ni on t ha t t he r e wa s

no r e ve r s i bl e e r r or i n t he t r i a l c our t .

The judgme nt of the tr i a l c our t is a f f i r me d in a ll r e s pe c t s .

Cos t s ar e as s e s s e d t o t he appe l l a nt s and t hi s cas e i s r e ma nde d t o

t he tr i a l c our t .
8

 PER CURI AM
APPENDIX A

ADAMS, SAMUEL R.

ALLEN, PATRI CI A

ARNOLD, PATRI CI A M.

AYRE, FRANK M. J R.

BENNETT, NORMA

BRABSON, WI LMA J .

BREEDEN, J ERRY L.

CAMPBELL, SHI RLEY D.

CHURCHWELL, BI LLI E J .

COWAN, MYRNA J .

ALLEN, KENNETH C.

ANDERSON, DAVI D J .

ATCHLEY, J OYCE F.

BALL, BETTY J .

BOWMAN, ROSE K.

BRADLEY, PAULA K.

BROWN, NEMA P.

CARVER, GLENN T.

CLI NE, J AMES NORRI S

COX, F. YVONNE

CRAWFORD, CORI NE E.

DANI EL, HOWARD L.

DAVI S, ANNI S D.

DEBUSK, MADOLYN L.

DI SNEY, RONALD W.

DOWNS, SALLY C.

FORRESTER, LI NDA H.

GAYLON, MARGI E P.

GLI I I AM BARBARA ANN

GOULD, CHARLI E MAE

CUMMI NS, CHARLES P.

DANI EL, J ACK RI CHARD

DAVI S, J OYCE R.

DEFORD, J AMES E. J R.

DOSSETT, J OSEPH L.

ENGLE, RUSSELL D.

FOX, ROBERT K. J R.

GI BSON, BRENDA N.

GOI NS, J OHN C. J R.

GREEN, PATRI CI A R.

GRI GGS, J AMES R.

HAMMONS, PERCY J . J R.

HAYES, MELVI N E.

HOWARD, J I MMY LEE

KALEY, KARY W.

LASLEY, SHI RLEY A.

LEDFORD, WANDA SUE

MORGAN, VERA SUE

NAPI ER, LARRY G.

NATI ONS, LI NDA T.
HALL, J AMES EDWARD

HARRI S, CHARLES S.

HI XSON, BOBBY F.

HUDSON, BI LLI E C.

LAMBERT, MELVI N

LAWS, PAT O.

LEE, THOMAS J .

MORRI SON, WANDA J .

NAPI ER, LI NDA M.

NELSON, CURTI SDENE J .

OFFI CER, WALTER

OWENS, SUSI E Y.

PI TTS, THURMAN L.

ROBI NSON, GWEN C.

SHERROD, RUTH G.

SKI PPER, FRANCES E.

SMI TH, J I MMI E M.

STERN, DORI S M.

TAYLOR, MONA S.

THOMPSON, SALLI E ANN

OGLESBY, J ANE R.

PACK, J AMES RAY

QUARLES, SI LAS W.

SCARBROUGH, SARAH L.

SHI RLEY, FAYE C.

SMI TH, BETTY L.

SOUTH, J ESSI E T.

STRONG, STANLEY A.

TAYLOR, SHI RLEY A.

TURNER, BARBARA J .

TURNER, SARAH J .

VARNER, DOUGLAS R.

WEBBER, J AMES Q.

WI LSON, ELI SA G.

WORMSLEY, J ERRY ALAN

UNDERWOOD, LOI S S.

WALKER, EDNA LEE

WI LLI FORD, LI NDA B.

WOOTEN, GLADYS, S.
APPENDIX A

11