Opinion ID: 1747492
Heading Depth: 1
Heading Rank: 5

Heading: summary judgment denied

Text: Having determined that section 50-1-304 does not preempt the common law tort for retaliatory discharge when an employee is fired for reporting illegal conduct, and having determined that there is a clear public policy favoring reporting fraudulent activity by insurance agents, we must now determine whether Mutual is nevertheless entitled to summary judgment. Our de novo review of the record, in the light most favorable to the plaintiff, indicates that Mr. Guy received an excellent performance evaluation on November 4, 1994, and was offered a Special Compensation Arrangement, which included a 100% increase in his monthly salary. Thirteen days later, the Tennessee Department of Commerce and Insurance informed Mutual of its obligation to reimburse Ms. Johnson for her financial loss as a result of Jerry Roberson's fraudulent conduct. On December 16, 1994, Mutual's legal department responded by letter to the department's request for reimbursement and accepted responsibility for a portion of Ms. Johnson's loss. A copy of this letter was forwarded to Mr. Guy's supervisor. Four days later, Mr. Guy was notified that his monthly salary would be cut in half. On January 26, 1995, Mutual was notified of Mr. Guy's alleged lack of judgment with respect to the sexual harassment complaint. However, no disciplinary action was taken until shortly after the Roberson incident was resolved, when, on March 1, 1995, Mr. Guy was placed on written notice. He was terminated on April 19, 1995. Although his termination occurred shortly after his conversation with Larry Paylor, the record reflects that Mutual did not communicate to Mr. Guy that this incident was one of the reasons for his discharge. Mutual argues in response that one of the reasons motivating its decision to terminate Mr. Guy was not the fact that he reported Roberson's fraud to the Department of Commerce and Insurance, but that he failed to immediately notify Mutual that he had done so. Mr. Guy's failure to immediately inform his superiors of Roberson's actions caused an unnecessary delay ... in [Mutual's] ability to provide restitution to Ms. Johnson. Although this may be true, we are not permitted, on a review of a denial of summary judgment, to draw inferences in favor of the moving party. Accordingly, we affirm the judgment of the Court of Appeals and likewise conclude that there is barely enough evidence to permit a rational trier of fact to infer a retaliatory motive as a substantial factor in Mr. Guy's discharge.