# FILED July 2, 1997 Cecil Crowson, Jr. App ellate C ou rt Clerk I N THECOUR

TOFAPPEALS

S A M U ELR. A

D A M S , e t a l., ) KNOX C HANC ER Y ) C. A . N O . 03A 01- 9701- C

H

- 00017 P e t i t i o n e r s - A p p e l l a n t s , ) ) ) ) ) ) vs . ) HON. S HAR ON BELL ) C HANC ELLOR ) ) ) ) ) M A R G A R ET C. C

U LPEPPER

, ) AFFI R M ED AND R

EM ANDED C om m i s s i one r of Te nne s s e e ) D e pa r t m e nt of Em

pl oym e nt ) S e c u r i t y , a n d TEN N ES S EE V

A LLEY ) AUTHOR I TY, ) ) R

e s ponde nt s - A

ppe l l e e s )

S A M G . S M I TH , J R. , M

o o r e & S m ith , P . C. , K

n o x v ille f o r A

p p e lla n t s . ED W A RD S . CH

RI S TEN BU RY , G e n e r a l Co u n s e l , RO BERTC. G

LI N S K I , A ssi s t a n t G

e ne r a l C

ouns e l , BR

ENTR. M

AR QUAND a n d R

I C HAR D E. R I GGS , K noxvi l l e , f or D

e f e nda nt , Te nne s s e e V a l l e y A

ut hor i t y. J OHN KNOX W

ALKUP , At t o r n e y G e n e r a l an d R

e p o r t e r , an d K

I M BER LY M . FR AYN, A

s s i s t a n t A

t t o r n e y G

e n e r a l, N

a s h v i l l e , f o r Te n n e s s e e D e pa r t m e nt of Em

pl oym e nt S e 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 co m p 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 A ppe ndi x A. 2

O PI N I O N 1

Mc Mu r r a y , J . Thi s i s a n a ppe a l f r om a j udgm

e nt of t he C

ha nc e r y C

our t of K nox C ount y, a f f i r m

i ng t he de c i s i on of The D e pa r t m e nt of Em pl oym e nt S e c ur i t y Boa r d of R e vi e w i n de nyi ng a l l t he a ppe l l a nt s une m pl oym e nt c om

pe ns a t i on be ne f i t s . W e a ffi r m

t he j udgm

e nt of t he t r i a l c o u r t .

S i m p l y s t a t e d , t h e ap p e l l a n t s h e r e v o l u n t a r i l y accep t e d an i n c e n tiv e p ack a g e t o t e r m i n a t e th e i r e m

pl oym e nt by t he Te nne s s e e V a lle y A

ut hor i t y ( TV

A ) . 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 m pl oye e of e i t he r $1, 000. 00 pe r ye a r f or each ye a r of e m

pl oym e nt , w i t h a m

i ni m um of $15, 000. 00, or a l um p s u m pa ym e nt of s i x m

ont 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 y ear s o f s e r v i ce f o r th e pur pos e of c a l c ul a t i on r e t i r e m e nt be ne f i t s . Th e ap p e l l a n t s w e r e ad v i s e d t h a t i f t h e y accep t e d ei t h e r of t he " e a r l y out " i nc e nt i ve pa c ka ge s , t ha t TV A w oul d c ont e s t a ny c l a i m m a de f or une m

pl oy m e nt c om

pe ns a t i on. N

ot w i t hs t a ndi ng, t he a p p e l l a n t s f ile d a p p lic a tio n s f or une m pl oym e nt be ne f i t s . Be n e f i t s w e r e de ni e d by t he Te nne s s e e D e pa r t m e nt of Em

pl oym e nt S e c ur i t y a t t h e a d m

i n i s t r a tiv e le v e l. A n a p p e a l w

a s tim e l y m a d e to th e3

C h a n cer y C

our t f or K

nox C ount y. The c ha nc e r y c our t a f f i r m e 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.

Th e s o l e i s s u e p r e s e n t e d f o r r e v i e w i s "w h e t h e r t h e d eci s i o n of t h e D

e p a r t m e n t of Em

pl oym e nt S e c ur i t y Bo a r d o f R e v i e w , a ffi r m

e d by th e c ha nc e r y c our t , w a s i n e r r or by f i n d i n g th a t T . C. A . S e c tio n 50- 7- 303( c ) ( 1) w

a 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 , w

e s houl d not e our s t a nda r d of r e vi e w . O ur s t a nda r d of r e v i e w i s gove r ne d by T . C. A . § 50- 7- 304( I ) , w hi c h a l l ow

s c our t s t o r e v e r s e , r e m

a nd, or m

odi f y t he de c i s i on of t he Boa r d of R e vi e w onl y i f t he de c i s i on i s uns uppor t e d by s u b s t a n tia l a n d m a 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.

O n a ppe a l , t hi s c our t m us t a l s o de t e r m

i ne w he t he r t he r e i s s ubs t a nt i a l a nd m a 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 m a de by t he l ow

e r t r i buna l . J ohns on v. Bi b l e , 707 S . W

. 2d 510, 512 ( Te nn. A pp. 1985) . S ubs t a nt i a l a n d m a t e r i a l ev i d e n ce h a s b een d e f i n e d as "' s u c h r e l e v a n t e vi de nc e a s a r e a s ona bl e m i nd m i 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. ' " S out he r n Ry . Co . v . S t a t e Bd . O f Eq u a liz a tio n , 682 S . W . 2 d 196, 199 ( Te nn. 1984) ( quot i ng P a c e v. G a r ba ge D

i s t ., 5 4 Te nn. A

pp. 263, 390 S . W

. 2d 461, 463 ( Te nn. A pp. 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 w he t he r t he l ow

e r t r i buna l e r r e d wh e n it a p p lie d th e la w to th e f a c t s f o u n d , th a t is , r e v i 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 a w . P e r r ym

a n v. Bi bl e , 653 S . W . 2d 424, 429 ( Te nn. A pp. 1983) ; I r vi n v. Bi nkl e y , 577 S . W . 2d 677, 678 ( Te nn. A pp. 1978) . P a yne v. C

ul pe ppe r , 1997 Te nn. A pp. , LEX

I S 25.4

Th e di s pos i t i ve que s t i on he r e i s w he t he r T . C. A

. § 5 0- 7- 303( c ) ( 1) is a p p l i c a b l e to th e f a c t s o f th i s c a s e . T . C. A . § 5 0

- 7

- 303( c ) ( 1) ( i n ef f ect at t h e t i m e s u n d e r co n s i d e r a t i o n h e r e ) pr ovi de d a s f ol l ow s : ( c ) Q ua l i f i c a t i ons . N

ot w i 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 n e 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 an y o t h e r w

i s e el i g i b l e cl a i m a n t f o r s e p a r a t i o n fro m e m pl oym e nt pur s ua nt t o a l a bor

- m a na ge m e nt c o n t r act or ag r e e m e nt , or pur s ua nt t o a n e s t a blis h e d e m

pl oye r pl a n, pr ogr a m , pol i c y, l a yof f or r ecal l w

h i c h p e r m

i t s t h e cl a i m

a n t ( e m

p l o y ee) , b eca u s e of l ac kof w or k , t o accep t a s e p a r a t i o n f r om e m pl oym e nt . H ow e ve r , be ne f i t s s ha l l be de ni e d a c l a i m

a nt f or s e pa r a t i on f r om e m pl oym e nt r e s ul t i ng fro m t h e cl a i m

a n t ' s accep t a n ce o f an em p l o y e r ' s pr ogr a m

w hi c h pr ovi de s m one t a r y i nc e nt i ve s t o e m pl oye e s f or vol unt a r i l y t e r m i na t i ng t he i r e m

pl oym e nt . ( Em

pha 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 om e s a que s t i on of f act . , i . e . , w

h e t h e r t h e cl a i m a n t s w e r e o f f e r e d t h e i n cen t i v e p ack a g e b e c a u se o f "l a c k o f w o r k . " I f t h e i n cen t i v e p ack a g e w a s o ffe r e d b ecau s e o f "l ack o f w o r k " t h e cl a i m

a n t s ar e en t i t l e d t o une m pl oym e nt be ne f i t s . O

t he r w i s e , t he y a r e not . Th e t r i a l co u r t d e t e r m i n e d , an d w

e ag r ee, t h a t th e r e w a s s ubs t a nt i a l ev i d e n ce i n t h e r e c or d t o d e m o n s t r a t e th a t th e c l a i m a n t s le f t th e i r e m p l o y m e n t v o l u n t a r ily to r e c e i v e th e " 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 w a s no l ack of w

o r k at t h e t i m

e t h e cl a i m

a n t s r e s i g n e d . Th e r eco r d5

c l ear l y r e f l ect s t h a t at t h e t i m e t h e cl a i m

a n t s accep t e d t h e ear l y out i nc e nt i ve pa c ka ge , t he y ha d t he opt i on of w or ki ng. The y w

e r e gua r a nt e e d w

or k t hr ough t he f i s c a l ye a r 1995, e ve n t hough s om e of t h e cl a i m

a n t s ' j o b s w

e r e d e t e r m

i n e d t o b e "at r i s k " and f a c e d a lik e lih o o d o f a r e d u c t i o n i n f o r ce at s o m e l a t e r t i m

e . W e ag r e e w ith 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 w or k i n t he f ut ur e doe s not c ons t i t ut e a p r e s e n t l a c k of w

or k. "

I n c onc l us i on, w

e f i nd t ha t t he c l a i m a 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 m a 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 R e vi e w a nd t he j udgm

e nt of t he t r i a l c our t . A c c or di ngl y, t he j udgm e nt of t he t r i a l c our t i s a ffi r m e d i n a l l r e s p ect s . C

o s t s ar e as s e s s e d t o t h e ap p e l l a n t s an d t h i s cas e i s r e m a nde d t o t he t r i a l c our t .

______________________________ D on T . M

c M ur r a y, J udge

CONC UR:

___________________________________ C ha r l e s D

. S us a no, J r . , J udge6

___________________________________ W illia m H . In m a n , S e n i o r J u d g eI N THECOUR TOFAPPEALS

S A M U ELR. A

D A M S , e t a l., ) KNOX C HANC ER Y ) C. A . N O . 03A 01- 9701- C

H

- 00017 P e t i t i o n e r s - A p p e l l a n t s , ) ) ) ) ) ) vs . ) HON. S HAR ON BELL ) C HANC ELLOR ) ) ) ) ) M A R G A R ET C. C

U LPEPPER

, ) AFFI R M ED AND R

EM ANDED C om m i s s i one r of Te nne s s e e ) D e pa r t m e nt of Em

pl oym e nt ) S e c u r i t y , a n d TEN N ES S EE V

A LLEY ) AUTHOR I TY, ) ) R

e s ponde nt s - A

ppe l l e e s )

J UDG M E NT Th i s ap p eal cam

e o n t o be he a r d upon t he r e c or d f r om t he C h a n cer y C

our t of K

nox C ount y, br i e f s a nd a r gum e nt of c ouns e l . U pon c ons i de r a t i on t he r e of , t hi s C our t i s of opi ni on t ha t t he r e w a 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 . Th e ju d g m

e n t o f th e tr i a l c o u r t is a f f i r m e d in a ll r e s p e c t s . C o s t s ar e as s e s s e d t o t h e ap p e l l a n t s an d t h i s cas e i s r e m a n d e d t o t h e tr i a l c o u r t .8

PER CU RI A MAPPENDIX A

ADAM S , S AM UELR. A LLEN , PA TR I C I A AR NOLD, PATR

I C I A M . AYR E, FR ANK M . J R. BEN N ETT, N O R M A BR ABS ON, W

I LM A J . BR EED EN , J ER R Y L. C A M P BELL, S H

I R LEY D . C H U R C H W ELL, BI LLI E J . COW AN, M YR NA J . A LLEN , K EN N ETH C. ANDER S ON, DAVI D J . ATC HLEY, J OYC

EF . BA LL, BETTY

J . BOW M AN, R OS EK. BR ADLEY, PAULA K. BR OW N, NEM A P . C AR VER , GLENN T . C LI NE, J AM

ES NOR R I S COX, F . YVONNE CRA W F O RD , CO RI N EE. DANI EL, HOW

AR D L. DAVI S , ANNI S D. DEBUS K, M

ADOLYN L. DI S NEY, R

ONALD W

. DOW NS , S ALLY C. F OR R ES TER , LI NDA H. GAYLON, M

AR GI EP . GLI I I AM

BAR BAR A ANN GOULD, C

HAR LI EM AE C UM M I NS , C HAR LES P . DANI EL, J AC

K R I C HAR D DAVI S , J OYC

ER. DEF OR D, J AM ES E. J R. D O S S ETT, J O

S EP H L. EN G LE, R U S S ELL D

. F OX, R OBER TK. J R. GI BS ON, BR

ENDA N. GOI NS , J OHN C. J R. GR EEN, PATR

I C I A R. GR I GGS , J AM

ES R. HAM M ONS , PER

C Y J . J R. HAYES , M

ELVI N E. HOW AR D, J I M M Y LEE KALEY, KAR

Y W . LA S LEY , S H I R LEY A . LEDF OR D, W ANDA S UE M OR GAN, VER

A S UE NAPI ER , LAR R Y G. NATI ONS , LI NDA T.HALL, J AM ES EDW AR D HAR R I S , C HAR LES S . HI XS ON, BOBBY F . HUDS ON, BI LLI EC. LA M BER T, M ELV I N LAW S , PATO. LEE, TH

O M A S J . M OR R I S ON, W

ANDA J . NAPI ER , LI NDA M

. NELS ON, C

UR TI S DENEJ . O FFI C ER , W A LTER OW ENS , S US I EY. P I TTS , THUR

M AN L. R OBI NS ON, GW

EN C. S HER R OD, R UTH G. SK I PPER , FR A N C ES E. S MI TH , J I MMI EM. S TER N, DOR I S M . TAYLOR , M ONA S . THOM P S ON, S ALLI EANN OGLES BY, J ANE

R. PAC K, J AM ES R AY QUAR LES , S I LAS W

. S C AR BR OUGH, S AR

AH L. S HI R LEY, FAYE

C. S M I TH , BETTY

L. S O U TH , J ES S I E T. S TR ONG, S TANLEY A. TAYLOR , S HI R LEY A. TU RN ER, BA RBA RA J . TUR NER , S AR AH J . VAR NER , DOUGLAS R. W EBBER, J A

M ES Q . W I LS ON, ELI S A G. W OR M S LEY, J ER

R Y ALAN UNDER W OOD, LOI S S . W ALKER , EDNA LEE W I LLI F OR

D, LI NDA B. W OOTEN, GLADYS , S .APPENDIX A

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