FILED

October 4, 1996

Cecil Crowson, Jr.

Appellate Court Clerk

I N THE COURT OF APPEALS OF TENNESSEE

EASTERN SECTI ON

RI CHARD D. PHI LLI PS ) HAMI LTON COUNTY

) 03A01- 9512- CH- 00441

Pl a i ntif f - Appe lla nt )

)

)

v. )

 ) HON. HOWELL N. PEOPLES,

 ) CHANCELLOR

I NTERSTATE HOTELS CORPORATI ON )

#L07 a nd I NTERSTATE HOTELS )

CORPORATI ON #L07, d/ b/ a )

CHATTANOOGA MARRI OTT a nd )

KI CKS LOUNGE )

)

De f e nda nt s - Appe l l ees ) AFFI RMED AND REMANDED

ANI TA B. HARDEMAN OF CHATTANOOGA FOR APPELLANT

KARL M. TERRELL a nd CHRI STOPHER TERRELL OF ATLANTA, GEORGI A, FOR

APPELLEE

O P I N I O N

 Godda r d, P. J .

I n thi s c a s e , the Pl a i nt i f f , Ri c ha r d D. Phi l l i ps , s ue s

I nt e r s t a t e Hot e l s Cor por a t i on a nd I nt e r s t a t e Hot e l s Cor por a t i on

#L07, d/ b/ a Cha t t a nooga Ma r r i ot t a nd Ki c ks Lounge , s e e ki ng
2

da ma ge s by r e a s on of t he De f e nda nt s vi ol a t i ng hi s c i vi l r i ght s

unde r t he pr ovi s i ons of T. C. A. 4- 21- 301( 2) .

The Tr i a l Cour t e nt e r e d a s umma r y j udgme nt i n f a vor of

t he De f e nda nt s a nd t he Pl a i nt i f f a ppe a l s , r a i s i ng t he f ol l owi ng

t hr ee i s s ue s :

I . WHETHER THE LOWER COURT ERRED I N FI NDI NG THAT I T I S NOT

AGAI NST THE LAW FOR A PLACE OF PUBLI C ACCOMMODATI ON TO FORCE

AN EMPLOYEE TO BE A PART OF AN OVERALL PATTERN AND SCHEME OF

DI SCOURAGI NG BLACK PATRONAGE.

I I . WHETHER THE LOWER COURT ERRED I N FAI LI NG TO RECOGNI ZE

THAT THE PRECLUSI ONS OF TENN. CODE ANN. §4- 21- 501 ARE ACTS

MADE DI SCRI MI NATORY BY CHAPTER 21 OF THE TENNESSEE HUMAN

RI GHTS ACT.

I I I . WHETHER THE COURT ERRED I N DETERMI NI NG, AS A MATTER OF

LAW, THAT AN I NDI VI DUAL' S BEI NG REQUI RED TO PARTI CI PATE I N

AN OVERALL SCHEME TO DI SCRI MI NATE AGAI NST BLACK CUSTOMERS

CANNOT BE SO I NTOLERABLE AS TO FORCE A REASONABLE PERSON TO

RESI GN HI S POSI TI ON.

Pr i or to br i ngi ng thi s s uit, the Pl a i ntif f wa s a n

e mpl oye e of Wor l d Wi de Ent e r t a i nme nt , a n e nt i t y whi c h c ont r a c t e d

out i t s empl oyees t o pe r f or m ent e r t a i nme nt r e l a t e d s e r vi ces .

Thr ough t hi s e mpl oyme nt , he wa s a s s i gne d a s a di s c j oc ke y t o t he

Ki c ks Lounge i n t he Ma r r i ot t Hot e l i n Cha t t a nooga . The Ki c ks

Lounge a nd t he Ma r r i ot t a r e owne d a nd ope r a t e d by I nt e r s t a t e

Cor por a t i on #L07, a De l a wa r e c or por a t i on. The Pl a i nt i f f wor ke d

a s Ki c ks ’ di s c j oc ke y f r om Ma y 1991 unt i l Fe br ua r y 1992.
3

I n Fe br ua r y 1993, t he Pl a i nt i f f br ought s ui t a ga i ns t

t he De f e nda nt s , a l l e gi ng c ons t r uc t i ve di s c ha r ge a nd vi ol a t i ons of

t he Te nne s s ee Huma n Ri ght s Ac t . The Pl a i nt i f f al l e ge s t ha t he

wa s f or c e d t o pa r t i c i pa t e i n a pl a n t o pr e ve nt bl a c k pa t r ons f r om

f r e que nting the ba r . In hi s a f f i da vit, the Pl a i ntif f a lle ge s

t ha t Bobby J ohns on, ma na ge r of Ki c ks , i ns t r uc t e d t he Pl a i nt i f f t o

pl a y mus i c t ha t woul d di s c our a ge bl a c k pa t r ons f r om r e ma i ni ng i n

t he ba r . The Pl a i nt i f f f ur t he r a l l e ge s t ha t Mr . J ohns on t hr e w

na pki ns wi t h me s s a ge s on t he m or s hone a f l a s hl i ght i n t he

Pl a i nt i f f ’ s e ye s i n or de r t o f or c e t he Pl a i nt i f f t o c ha nge t he

mus i c s e l e c t i on. Whe n t he Pl a i nt i f f e xpr e s s e d hi s di s pl e a s ur e

with Mr . J ohns on’ s a c tions , the Pl a i ntif f a lle ge s he r e c e i ve d the

"col d s houl de r " t r eat me nt .

The Pl a i ntif f c ite s ot he r inc i de nt s of a lle ge d

di s c r i mi na t i on. He cl a i ms t ha t bl ack pa t r ons we r e r e f us e d

s e a t i ng e ve n t hough s e a t i ng wa s a va i l a bl e ; t ha t a n " a d hoc " dr e s s

c ode wa s e nf or c e d on bl a c k pa t r ons onl y; t ha t Mr . J ohns on woul d

c l os e t he l ounge e a r l y i f t he c r owd we r e ma i nl y bl a c k pa t r ons ;

t ha t Mr . J ohns on r e f us e d t o r un ba r t a bs f or bl a c k pa t r ons ; t ha t

a dr i nk mi ni mum wa s i mpos e d on bl a c k c us t ome r s ; t ha t Mr . J ohns on

r e move d a dr a f t be e r t ha t wa s t he mos t popul a r be e r a mong bl a c k

pa t r ons a nd t ha t a c ove r c ha r ge wa s i mpos e d i n or de r t o

di s c our a ge bl a c k pa t r ona ge . 

Becaus e of t he s e al l e ge d i nc i de nt s , t he Pl a i nt i f f

t e nde r e d hi s r e s i gna t i on. He ga ve Ki c ks one mont h’ s not i c e a nd
4

t he n s t a ye d on a s t he di s c j oc ke y a n e xt r a s e ve n t o 10 da ys a t

Wor l d Wi de Ent e r t a i nme nt ’ s r e que s t. He f i na lly te r mi na t e d hi s

e mpl oyme nt i n mi d- Fe br ua r y 1992. Howe ve r , t he Pl a i nt i f f r e t ur ne d

t o Ki c ks on t wo s ubs e que nt oc c a s i ons t o " f i l l i n" a s t he di s c

j oc ke y. Af t e r l e a vi ng Ki c ks , t he Pl a i nt i f f f ound e mpl oyme nt i n

Ma r c h 1992 wi t h Li f e s t yl e s Ca r pe t s .

I n hi s c ompl a i nt, the Pl a i ntif f a lle ge d tha t the

De f e nda nt s vi ol a t e d t he Te nne s s e e Huma n Ri ght s Ac t by de nyi ng

bl a c k pa t r ons t he f ul l a nd e qua l e nj oyme nt of t he ba r ’ s goods ,

s e r vi ces , f aci l i t i e s and accommoda t i ons . He f ur t he r al l e ge d t ha t

t he De f e nda nt s de ma nde d t ha t he e nga ge i n s uc h di s c r i mi na t i ng

t a c tic s a nd tha t the De f e nda nt s ’ int e r f e r e nc e with hi s a bility to

c ompl y wi t h t he pr ovi s i ons of t he Te nne s s e e Huma n Ri ght s Ac t

a mount e d t o a c ons t r uc t i ve di s c ha r ge . Fi na l l y, t he Pl a i nt i f f

a l l e ge d t ha t t he De f e nda nt s enga ge d i n ma l i c i ous ha r a s s me nt i n

t r yi ng t o f or c e t he Pl a i nt i f f t o di s c our a ge bl a c k pa t r ona ge .

Upon e nt r y of s umma r y j udgme nt f or t he De f e nda nt s , t he

Pl a i nt i f f pe r f ect e d t hi s appeal . He appeal s t he ent r y of s umma r y

j udgme nt a s t o t he f i r s t t wo a l l e ga t i ons out l i ne d a bove . He doe s

not a ppe a l di s mi ss a l of the ma l i c i ous ha r a s s me nt c l a i m. 

The Te nne s s e e Supr e me Cour t , i n Byr d v. Ha l l , 847

S. W. 2d 208 ( Te nn. 1993) , s e t f or t h t he pr ope r s umma r y j udgme nt

a na l ys i s t o be a ppl i e d i n Te nne s s e e . The r e , t he Cour t s a i d i n

e va l ua t i ng a s umma r y j udgme nt mot i on, t he s e que s t i ons mus t be
5

r e s ol ve d: ( 1) whe t he r a f ac t ual di s put e e xi s t s ; ( 2) whe t he r t he

di s put e i s mat e r i al t o t he out c ome of t he c a s e ; a nd ( 3) whe t he r

t he di s put e d f act cr eat e s a ge nui ne is s ue f or tr i a l .

Byr d f ur t he r e xpl a i ns t ha t s umma r y j udgme nt s houl d be

e mpl oye d whe r e t he r e i s no di s put e ove r t he e vi de nc e a nd t he r e i s

no i s s ue f or a j ur y t o de c i de . For a pa r t y t o a voi d s umma r y

j udgme nt, i t mus t s how tha t t he f a c t i n di s put e is ma t e r i a l. I f

s uc h a di s put e d, ma t e r i a l f a c t doe s e xi s t , t he n t he c our t mus t

de t e r mi ne whe t he r t he di s put e d f act cr eat e s a ge nui ne i s s ue . The

t e s t f or a ge nui ne i s s ue i s whe t he r a r e a s ona bl e j ur y c oul d

l e gi t i ma t e l y r e s ol ve t ha t f a c t i n f a vor of one s i de or t he ot he r .

I f t he a ns we r i s ye s , t he n s umma r y j udgme nt i s i na ppr opr i a t e ; i f

t he a ns we r i s no, s umma r y j udgme nt i s pr ope r be c a us e a t r i a l

woul d be poi nt l e s s . Whe n a ppl yi ng t hi s t e s t , a l l e vi de nc e mus t

be vi e we d i n a l i ght f a vor a bl e t o t he non- movi ng pa r t y a nd a l l ow

a l l r eas ona bl e i nf e r e nces i n hi s f a vor . The pa r t y s eeki ng

s umma r y j udgme nt ha s t he bur de n t o de mons t r a t e t ha t t he r e a r e no

di s put e d, ma t e r i a l f act s cr eat i ng a ge nui ne i s s ue f or t r i a l and

t ha t s umma r y j udgme nt i s a ppr opr i a t e .

 

The Pl a i nt i f f pr e s e nt s t wo ma i n i s s ue s on a ppe a l : ( 1)

t he Tr i a l Cour t e r r e d whe n i t f ound no vi ol a t i on of t he Te nne s s e e

Huma n Ri ght s Ac t , a nd ( 2) t he Tr i a l Cour t e r r e d by c onc l udi ng

t ha t t he Pl a i nt i f f ha d not be e n c ons t r uc t i ve l y di s c ha r ge d f r om

hi s pos i t i on.
6

I n hi s f i r s t a r gume nt, the Pl a i ntif f a lle ge s tha t the

De f e nda nt s vi ol a t e d T. C. A. 4- 21- 301 of t he Te nne s s e e Huma n Ri ght s

Ac t whi c h s t a t e s :

I t i s a di s c r i mi na t or y pr a c t i c e f or a pe r s on or f or t wo

( 2) or mor e pe r s ons t o:

. . . .

( 2) Ai d, a be t , i nc i t e , c ompe l or c omma nd a pe r s on t o

e nga ge i n any of t he act s or pr act i ces decl a r e d

di s c r i mi na t or y by t hi s c ha pt e r ;

. . . .

( 4) Wi l l f ul l y obs t r uc t or pr e ve nt a pe r s on f r om

c ompl yi ng wi t h t he pr ovi s i ons of t hi s c ha pt e r or a n

or de r i s s ue d t he r e unde r . 

T. C. A. 4 - 21- 501 f ur t he r s t a t e s tha t it is a

di s c r i mi na t or y pr a c t i c e f or a pe r s on t o de ny a n

i ndi vi dua l t he f ul l a nd e qua l e nj oyme nt of t he goods ,

s e r vi c e s , fa c ilitie s , p r i vile ge s , a dva nt a ge s a nd

a c c ommoda t i ons of a pl a c e of publ i c a c c ommoda t i on,

r e s or t or a mus e me nt , a s de f i ne d i n t hi s c ha pt e r , on t he

gr ounds of r a c e , c r e e d, c ol or , r e l i gi on, s e x, a ge or

na t i ona l or i gi n.

The Pl a i ntif f a s s e r t s tha t hi s be i ng ins t r uc t e d to

c ha nge t he mus i c s e l e c t i on wa s f or c i ng hi m t o pa r t i c i pa t e i n a

pr a c t i c e de c l a r e d di s c r i mi na t or y i n 4- 21- 501 a nd t hus , pr ohi bi t e d

by 4- 21- 301. The Pl a i nt i f f a l l e ge s t ha t t he c ha nge i n mus i c wa s

a n a t t e mpt t o di s c our a ge bl a c k pa t r ona ge a nd a s s uc h f i t s wi t hi n

t he s t a t ut or y de f i ni t i on of pr ohi bi t e d di s c r i mi na t or y pr a c t i c e s .

Quite obvi ous l y, the Pl a i ntif f c a nnot ma i nt a i n a di r e c t c l a i m

unde r 4- 21- 501 s i nc e he ma ke s no a l l e ga t i on t ha t a ny
7

di s c r i mi na tion wa s di r e c t e d a t hi m. Ins t e a d, the Pl a i ntif f ba s e s

hi s c l a i m on a n a l l e ga t i on of f or c e d pa r t i c i pa t i on i n a

di s c r i mi na t or y pr a c t i c e . 

We cannot agr ee t ha t s uc h i s t he case. We agr ee wi t h

t he Tr i a l Cour t tha t the Pl a i ntif f f a ile d to de mons t r a t e tha t

c ha ngi ng t he mus i c s e l e c t i on i n a l ounge i s a di s c r i mi na t or y

pr a c tic e a s outline d in the a bove s t a t ut e . As the Tr i a l Cour t

not e d, t he c ha nge of mus i c a f f e c t e d a l l of t he l ounge ’ s pa t r ons .

Al l pa t r ons we r e e qua l l y s ubj e c t e d t o t he c ha nge a nd a l l c oul d

t he n as s e s s how t he cha nge af f ect e d t he i r de s i r e s t o r e ma i n i n

t he l ounge . We c a nnot a c c e pt t he Pl a i nt i f f ’ s a s s e r t i on t ha t

c ha ngi ng t he mus i c s e l e c t i on a mount s t o a de ni a l of t he f ul l a nd

e qua l e nj oyme nt of t he l ounge . Thus , t he r e be i ng no

di s c r i mi na t or y pr a c tic e , the Pl a i ntif f c a nnot ma i nt a i n a c l a i m

unde r 4- 21- 301. By be i ng i ns t r uc t e d t o c ha nge t he mus i c

s e l e c tion the Pl a i ntif f ha s not be e n f or c e d to pa r tic i pa t e in a

di s c r i mi na t or y pr a c t i c e t ha t i s pr ohi bi t e d by 4- 21- 301. 

We do not r e a c h t he que s t i on of whe t he r t he ot he r

a l l e ge d di s c r i mi na t or y be ha vi or by Mr . J ohns on a mount s t o a c t s

pr ohi bi t e d by t he s t a t ut e be c a us e i t a ppe a r s t ha t t he Pl a i nt i f f

ha d no r ol e i n f ur t he r i ng t he a l l e ge d di s c r i mi na t i on t a c t i c s .

The ad hoc dr e s s code , t he cove r cha r ge , t he cha nge of beer s , and

t he ot he r a lle ga tions of di s c r i mi na tion we r e not pr a c tic e s tha t

t he Pl a i nt i f f wa s f or c e d t o c a r r y out . The Pl a i nt i f f ma y ha ve
8

be e n f or c e d t o c ha nge t he mus i c s e l e c t i on, but t hi s i s not

s uf f i c i e nt t o br i ng a c l a i m unde r 4- 21- 301.

The Pl a i nt i f f ’ s s e c ond ba s i s f or a ppe a l i s t he Tr i a l

Cour t ’ s c onc l us i on t ha t t he Pl a i nt i f f wa s not c ons t r uc t i ve l y

di s c ha r ge d f r om hi s job. The Pl a i ntif f a lle ge s tha t the

De f e nda nt s ’ be ha vi or a nd a l l e ge d vi ol a t i ons of T. H. R. A. c a us e d

hi m t o be c ons t r uc t i ve l y di s c ha r ge d. Cons t r uc t i ve di s c ha r ge

e xi s t s whe r e wor ki ng c ondi t i ons we r e s o di f f i c ul t or s o

unpl e a s a nt t ha t a r e a s ona bl e pe r s on i n t he e mpl oye e ’ s s hoe s woul d

ha ve f e l t c ompe l l e d t o r e s i gn. Ca mpbe ll v. Fl or i da St e e l Cor p.

919 S. W. 2d 26 ( Te nn. 1996) , quot i ng Br uhwi l e r v. Uni ve r s i t y of

Te nne s s e e , 859 F. 2d 419 ( 6t h Ci r . 1988) . I n or de r f or a n e mpl oye e

t o pr e va i l , he mus t s how t ha t " a r e a s ona bl e e mpl oye r woul d ha ve

f or e s e e n t he e mpl oye e ’ s r e s i gna t i on, gi ve n t he i nt ol e r a bl e

c ondi t i ons of e mpl oyme nt . " Ca mpbe l l , s upr a . I n ot he r wor ds , t he

e mpl oye e ne e d onl y de mons t r a t e t ha t t he e mpl oye r knowi ngl y

pe r mi t t e d c ondi t i ons of di s c r i mi na t i on i n e mpl oyme nt s o

i nt ol e r a bl e t ha t a r e a s ona bl e pe r s on s ubj e c t e d t o t he m woul d

r e s i gn. The que s t i on of c ons t r uc t i ve di s c ha r ge r e qui r e s a n

a ppl i c a t i on of l a w t o f a c t s a nd t hus , t he s t a nda r d of r e vi e w i s

t ha t i n Rul e 13( d) of t he Te nne s s e e Rul e s of Appe l l a t e Pr oc e dur e ,

whe r e f i ndi ngs of l a w s ha l l be de novo upon t he r e c or d a nd

f i ndi ngs of f a c t s ha l l be a f f or de d a pr e s umpt i on of c or r e c t ne s s . 

Becaus e t hi s cas e come s t o t hi s Cour t af t e r an awa r d of

s umma r y j udgme nt , t he r e we r e no f i ndi ngs of f a c t . Howe ve r , a s
9

di d the Tr i a l Cour t, we mus t look a t the f a c t s in the light mos t

f a vor a bl e t o t he Pl a i nt i f f . We mus t accept as t r ue t ha t Bobby

J ohns on, ma na ge r of Ki c ks , t ol d t he Pl a i nt i f f t o c ha nge t he mus i c

s e l e c t i on i n or de r t o di s c our a ge bl a c k pa t r ons f r om f r e que nt i ng

t he e s t a blis hme nt. We mus t a l s o a c c e pt the Pl a i ntif f ’ s

a l l e ga t i ons t ha t Mr . J ohns on ma de ot he r a t t e mpt s t o f ur t he r

di s c r i mi na t e a ga i ns t bl a c k pa t r ons . Eve n s o, we c a nnot f i nd a

c l a i m f or c ons t r uc tive di s c ha r ge . Fi r s t, the Pl a i ntif f f a ile d to

s how t ha t Mr . J ohns on c oul d ha ve r e a s ona bl y f or e s e e n t he

Pl a i ntif f ’ s r e s i gna tion. Mr . J ohns on’ s a lle ge d di s c r i mi na t or y

be ha vi or ha d a f or e s e e a bl e c ons e que nc e of di s c our a gi ng bl a c k

pa t r ona ge , but i t wa s not f or e s e e a bl e t ha t Mr . J ohns on’ s be ha vi or

woul d r e s ult in the Pl a i ntif f ’ s r e s i gna tion. Se c ond, the

Pl a i ntif f doe s not a lle ge a ny di s c r i mi na tion di r e c t e d a t hi m by

Mr . J ohns on. The e xi s t e nc e of di s c r i mi na t i on t owa r d t he e mpl oye e

i s an i nt e gr a l el e me nt of a cons t r uc t i ve di s c ha r ge cl a i m. Se e

Ca mpbe l l . Thi r d, t he Pl a i nt i f f f a i l e d t o s how how hi s e mpl oyme nt

wa s s o i nt ol e r a bl e t ha t a r e a s ona bl e pe r s on woul d r e s i gn. The

Pl a i nt i f f r e ma i ne d t he di s c j oc ke y a t Ki c ks f or one mont h a nd

s e ve n da ys a f t e r he t e nde r e d hi s r e s i gna t i on. Addi t i ona l l y, he

r e t ur ne d t o Ki c ks a s a s ubs t i t ut e di s c j oc ke y on a n oc c a s i on i n

Apr i l a nd i n Ma y of 1992. 

Appl yi ng t he s e f a c t s t o t he l a w, t he r e c a n be no c l a i m

f or c ons t r uc t i ve di s c ha r ge . The Pl a i nt i f f di d not me e t t he

mi ni mum r e qui r e me nt s f or s uc h a c l a i m. The Pl a i ntif f f a ile d to

s how t ha t hi s r e s i gni ng hi s j ob wa s t he r e a s ona bl y f or e s e e a bl e
10

r e s ul t of Mr . J ohns on’ s di s c r i mi na t i ng be ha vi or t owa r d bl a c k

pa t r ons . The Pl a i nt i f f f ur t he r f a i l e d t o s how t he c ondi t i ons of

hi s e mpl oyme nt we r e s o i nt ol e r a bl e t ha t a r e a s ona bl e pe r s on woul d

f eel compe l l e d t o r e s i gn.

 Thus , we a gr e e wi t h t he Tr i a l Cour t t ha t s umma r y j udgme nt

i s a ppr opr i a t e in thi s c a s e . In the De f e nda nt s ’ br i e f , it is

a r gue d t ha t t he Tr i a l Cour t wa s i nc or r e c t i n f i ndi ng t ha t t he

s t a t ut e of l i mi t a t i ons ha d not r un on t hi s ma t t e r . Be c a us e our

c onc l us i on i s t ha t s umma r y j udgme nt wa s pr ope r l y a wa r de d, t he

ma tte r of the s t a t ut e of limita tions is pr e t e r mitte d.

I n c onc l us i on, we e mpha s i z e t ha t we do not c ondone t he

a c t s a l l e ge d, whi c h we f i nd t o be r e pr e he ns i bl e , but f i nd t ha t

t he Pl a i nt i f f ' s t he or i e s of r e c ove r y ma y not be s us t a i ne d unde r

t he f a c t s di vul ge d.

For t he f or e goi ng r e a s ons t he j udgme nt of t he Tr i a l

Cour t i s a f f i r me d a nd t he c a us e r e ma nde d f or c ol l e c t i on of c os t s

be l ow. Cos t s of a ppe a l a r e a dj udge d a ga i ns t t he Pl a i nt i f f a nd

hi s s ur e tie s .

_______________________________

Hous t on M. Godda r d, P. J .

CONCUR:
11

________________________________

Don T. Mc Mur r a y, J .

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Wi l l i a m H. I nma n, Sr . J .