Willis v. Franklin Co. Bd. of Education ( 1998 )


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  •        IN THE COURT OF APPEALS OF TENNESSEE
    AT NASHVILLE
    FILED
    DONNA WILLIS and the           )             July 15, 1998
    FRANKLIN COUNTY                )
    EDUCATION ASSOCIATION,         )          Cecil W. Crowson
    Appellate Court Clerk
    )
    Plaintiffs/Appellants,   )    Franklin Chancery
    )    No. 13,920
    VS.                            )
    )    Appeal No.
    FRANKLIN COUNTY BOARD          )    01A01-9606-CH-00266
    OF EDUCATION and               )
    PATTY PRIEST, Superintendent   )
    of Franklin County Schools,    )
    )
    Defendants/Appellees.    )
    APPEAL FROM THE FRANKLIN COUNTY CHANCERY COURT
    AT WINCHESTER, TENNESSEE
    THE HONORABLE JOHN W. ROLLINS, JUDGE
    For Plaintiffs/Appellants:          For Defendants/Appellees:
    Charles Hampton White               Robert G. Wheeler, Jr.
    Richard L. Colbert                  Charles W. Cagle
    Cornelius & Collins                 Lewis, King, Krieg, Waldrop & Catron
    Nashville, Tennessee                Nashville, Tennessee
    AFFIRMED AND REMANDED
    WILLIAM C. KOCH, JR., JUDGE
    OPINION
    This appeal involves a public school employee’s employment rights under a
    contract between the Franklin County Board of Education and the Franklin County
    Education Association. After accepting a lower paying teaching position when her
    central office job was abolished, the employee and her union filed suit in the
    Chancery Court for Franklin County alleging that the school superintendent and the
    school board had breached the contract. The trial court, sitting without a jury, held
    that the school superintendent and the school board had not breached the contract and
    had not acted arbitrarily or improperly by offering the employee a teaching position.
    We affirm the trial court’s judgment because we have determined that the
    reemployment rights available to laid off employees do not apply to employees
    whose positions have been abolished, and that the evidence does not show that the
    school superintendent or the school board acted improperly.
    I.
    Donna Willis has been employed by the Franklin County Board of Education
    for over twenty years. She first taught high school business courses for three years.
    By 1992, she had served as Elementary Supervisor of Instruction for over twenty
    years and Chapter I Director for eleven years. She had also worked as Federal
    Programs Director and Child Nutrition Supervisor. She was the senior employee in
    the central office and had attained the highest available career level certification for
    supervisors.1 Ms. Willis never received a complaint about her work during her tenure
    as a teacher or administrator.
    In May 1992, Patty Priest, the Superintendent of Schools for Franklin County,
    decided to reorganize the central office in response to the recently enacted Education
    Improvement Act2 and because she believed that the existing organization was
    disjointed and illogical. Her reorganization plan called for the abolition of four
    1
    Ms. Willis had been designated as a career level III supervisor under the career ladder
    program whose purpose is to reward outstanding teachers, principals, and supervisors with pay
    supplements and additional responsibilities. See Tenn. Code Ann. § 49-5-5002 (b)(1) (1996).
    2
    See Act of Mar. 2, 1992, ch. 535, § 4, 1992 Tenn. Pub. Acts 19, 23 (codified at Tenn. Code
    Ann. §§ 49-1-601, -608 & 610 (1996)).
    -2-
    central office supervisory positions,3 including Ms. Willis’s position, and the creation
    of four new positions.4 The new positions combined some of the functions and
    responsibilities of the old positions with some new responsibilities. On May 13,
    1992, Ms. Priest informed Ms. Willis and the other incumbents in the positions to be
    abolished of her plans, and on May 14, 1992, the Franklin County Board of Education
    accepted Ms. Priest’s reorganization plan.
    Ms. Willis applied for all of the newly created positions but was the only
    employee of the four employees whose positions had been abolished who was not
    offered one of the new positions. Ms. Priest hired the new Director of Accountability
    herself and then appointed a nine-person committee5 to interview the applicants for
    the remaining three positions. The committee interviewed Ms. Willis and the other
    applicants for each central office job using the same questions and objective rating
    scale. Ms. Willis’s scores placed her at the bottom of the list of applicants for each
    position. The committee recommended the person with the highest score for each of
    the three remaining newly created positions. Ms. Priest concurred with these
    recommendations, which were approved by the Franklin County Board of Education.
    After Ms. Willis was not offered one of the newly created central office
    positions, Ms. Priest offered her two different teaching positions. Ms. Willis
    accepted one of the positions even though its salary was approximately $7,000 per
    year less than her previous salary. Ms. Willis also requested a hearing before the
    Franklin County Board of Education. Following a hearing, the school board
    approved Ms. Willis’s transfer to Oak Grove Elementary School.
    On December 7, 1992, Ms. Willis and the Franklin County Education
    Association filed a grievance because she was not offered one of the newly created
    central office positions. Following an arbitration hearing in April and May 1993, the
    3
    The positions to be abolished included the Adult Basic Education Level I Coordinator – part
    time, the Elementary Supervisor of Instruction, the Secondary Supervisor of Instruction, and the
    Teacher/Center Director.
    4
    The four new positions to be created included the Director of Accountability, At-Risk
    Intervention Coordinator, Curriculum and Instruction Supervisor, and Full-Time Adult Basic
    Education Supervisor.
    5
    The committee consisted of the newly hired Director of Accountability, a parent, the
    Franklin High School student body president, a guidance counselor, three teachers, and two
    principals.
    -3-
    arbitrator sustained the grievance and found that “proper procedures were not
    followed and there was a violation of Due Process, Fair Treatment and Proper Cause
    by the Board.” The arbitrator recommended that Ms. Willis be named Director of
    Accountability and that she receive $8,062 in back pay. The Franklin County Board
    of Education rejected the arbitrator’s recommendations.
    On October 18, 1993, Ms. Willis and the Franklin County Education
    Association filed suit in the Chancery Court for Franklin County against Ms. Priest
    and the Franklin County Board of Education. The complaint alleged several
    violations of the contract between the Franklin County Board of Education and the
    Franklin County Education Association, including (1) reducing Ms. Willis’s rank and
    compensation and depriving her of a professional advantage without just cause, (2)
    failing to notify either the association or Ms. Willis of the newly created positions
    within the contract’s specified time period, and (3) denying Ms. Willis her seniority
    right of recall and placement.
    The trial court conducted a bench trial and determined that the arbitrator’s
    findings were not binding and that neither the school board nor the school
    superintendent had breached the contract. The trial court also held that the “due
    process” provisions in the contract did not apply to Ms. Willis because her position
    had been abolished and, similarly, that the layoff provision in the contract did not
    apply to Ms. Willis because she had not been laid off. As a final matter, the trial
    court also held that there was no proof that either Ms. Priest or the Franklin County
    Board of Education had acted arbitrarily, capriciously, or unreasonably in abolishing
    the old positions.
    II.
    CLAIMS BASED ON THE CONTRACT
    Ms. Willis and the Franklin County Education Association take issue with the
    trial court’s interpretation of the contract. They insist that the contract’s “due
    process” provisions apply to Ms. Willis because she was reduced in rank and
    compensation. They also insist that the trial court erred by holding that Ms. Willis’s
    seniority “reemployment” rights had not been violated when she was not notified of
    -4-
    the newly created positions and was not placed in one of the new positions based on
    her seniority.
    A.
    It is elementary that whatever contract rights Ms. Willis has can only arise from
    the memorandum of agreement between the Franklin County Board of Education and
    the Franklin County Education Association. See Hillsboro Plaza Enters. v. Moon,
    
    860 S.W.2d 45
    , 47 (Tenn. Ct. App. 1993) (holding that the rights and obligations of
    contracting parties are governed by the terms of their written agreement). Our
    responsibility, when called upon to construe a contract, is to ascertain and to give the
    fullest possible effect to the intentions of the contracting parties. See Bob Pearsall
    Motors, Inc. v. Regal Chrysler-Plymouth, Inc., 
    521 S.W.2d 578
    , 580 (Tenn. 1975);
    Breeding v. Shackelford, 
    888 S.W.2d 770
    , 775 (Tenn. Ct. App. 1994).
    Because the parties’ intentions must be reflected in the text of their written
    contract, we construe written contracts as a whole, see Cocke County Bd. of Highway
    Comm’rs v. Newport Utils. Bd., 
    690 S.W.2d 231
    , 237 (Tenn. 1985), and we consider
    each provision in the context of the entire agreement. See Wilson v. Moore, 
    929 S.W.2d 367
    , 373 (Tenn. Ct. App. 1996). We also give the contract’s language its
    plain, natural, and ordinary meaning, see Hardeman County Bank v. Stallings, 
    917 S.W.2d 695
    , 699 (Tenn. Ct. App. 1995), and we avoid strained interpretations that
    create ambiguities where none exist. See Farmers-Peoples Bank v. Clemmer, 
    519 S.W.2d 801
    , 805 (Tenn. 1975).
    B.
    THE LAYOFF CLAIMS
    Ms. Willis insists that Ms. Priest and the Franklin County Board of Education
    did not abide by the terms of the contract governing laid off employees. Specifically,
    she asserts that Ms. Priest did not provide her with fifteen days notice of the proposed
    layoff as required by Article XII(B)6 of the contract and that she was not given recall
    6
    Article XII(B) of the contract requires that “[t]he Administration shall provide written notice
    to the Association and to each teacher who may possibly be affected by the layoff no later than 15
    working days preceding the proposed layoff or as soon as possible. Such notice shall include
    specific written reasons for the proposed layoff.”
    -5-
    rights to the newly created central office positions as required by Article XII(C)7 of
    the contract. In order to be entitled to these rights, Ms. Willis must first demonstrate
    that she is a laid off employee under the facts of this case.
    The contract does not define the terms “layoff” or “laid off teacher;” however,
    the meaning of the term “layoff” is the same both in everyday usage and in the labor-
    management context. In its common sense, a “layoff” is a period during which a
    worker is temporarily dismissed or allowed to leave work. See 8 The Oxford English
    Dictionary 736 (2d ed. 1989). In the labor-management context, it connotes a period
    of temporary dismissal with the anticipation of recall. See Fishgold v. Sullivan
    Drydock & Repair Corp., 
    328 U.S. 278
    , 287 n.11, 
    66 S. Ct. 1105
    , 1112 n.11 (1946);
    CBS, Inc. v. International Photographers of Motion Picture Indus., Local 644, 
    603 F.2d 1061
    , 1063 (2d Cir. 1979); Mayo v. City of Sarasota, 
    503 So. 2d 347
    , 349 (Fla.
    Dist. Ct. App. 1987); Formisano v. Blue Cross of Rhode Island, 
    478 A.2d 167
    , 169
    (R.I. 1984). The term is not ambiguous, see Anderson v. Twin City Rapid Transit
    Co., 
    84 N.W.2d 593
    , 597-98 (Minn. 1957), and is clearly distinguishable from a job
    abolishment which is a permanent elimination of a particular position. See Smith v.
    California Unemployment Ins. App. Bd., 
    125 Cal. Rptr. 35
    , 40 (Ct. App. 1975)
    (construing the state Civil Service Act); General Motors Corp. v. Erves, 
    236 N.W.2d 432
    , 437 (Mich. 1975); In re Moreo, 
    468 N.E.2d 85
    , 88 (Ohio Ct. App. 1983).
    Under the facts of this case, Ms. Willis was never laid off. Her central office
    position was permanently abolished. She was never told that she could expect to be
    recalled to her former position. She worked continuously until June 30, 1992, and
    by that time she had already accepted a teaching position for the next school year.
    She never missed a paycheck. Because Ms Willis’s central office position was
    permanently abolished, she was not entitled to the rights accorded to laid off
    employees in Article XII of the contract.
    7
    Article XII(C) provides:
    1.        As vacancies arise a laid-off teacher will be recalled to the first available
    vacancy for which the teacher is certified with the senior teacher being
    recalled for such vacancy first.
    2.        No new or substitute appointments may be made while there are laid off
    tenured teachers available who are qualified to fill the vacancies.
    3.        Any teacher re-employed by exercising his/her recall rights shall be given full
    salary and related benefits.
    -6-
    C.
    THE JUST CAUSE CLAIM
    Ms. Willis also asserts that she could not be removed from her central office
    position without just cause. She bases her argument on Article XXII(C)(1) of the
    contract which provides:
    No professional employee shall be discharged, transferred,
    non-renewed, suspended, disciplined, reprimanded,
    adversely evaluated, reduced in rank or compensation or
    deprived of any professional advantage without just cause.
    By its own terms, this provision applies to disciplinary actions in which an employee
    is discharged, transferred, non-renewed, suspended, disciplined, reprimanded,
    adversely evaluated, reduced in rank or compensation, or deprived of any
    professional advantage.
    Ms. Willis was not disciplined. Her central office position was permanently
    abolished not because of her performance but because of the superintendent’s and the
    school board’s desire to be more efficient and to be better able to meet the
    performance standards contained in the Education Improvement Act. She was not
    reduced in rank or compensation for disciplinary reasons. These reductions came
    about because her former central office position was permanently abolished and
    because the only other available positions were teaching positions that paid less.
    III.
    CLAIMS BASED ON STATUTORY REEMPLOYMENT RIGHTS
    We determined in the previous section that neither Ms. Priest nor the Franklin
    County Board of Education ignored Ms. Willis’s contract rights because the contract
    did not address the rights of employees who are dismissed because of the elimination
    of their positions. One reason for the contract’s silence on this subject may very well
    be that it has been addressed by statute. Tenn. Code Ann. § 49-5-511(b)(3) (1996)
    requires that tenured teachers8 who are dismissed because of the elimination of their
    position be put on a “preferred list for reemployment” and that they be placed “in the
    8
    A supervisor is a “teacher” for the purpose of this section. See Tenn. Code Ann. § 49-5-
    501(10) (1996).
    -7-
    first vacancy the teacher is qualified by training and experience to fill.” Ms. Willis
    insists that the school superintendent and school board ignored her reemployment
    rights under this statute.
    Ms. Willis overstates her rights under Tenn. Code Ann. § 49-5-511(b)(3). This
    section does not prevent the superintendent or the school board from determining a
    laid off teacher’s competency, compatibility, and suitability for a particular position.
    See Randall v. Hankins, 
    733 S.W.2d 871
    , 874 (Tenn. 1987). The statute does not
    require automatic reinstatement but rather preferential consideration once a teacher
    shows the requisite qualifications for the vacant position. See Randall v. Hankins,
    733 S.W.2d at 875; Long v. Carey, Gibson Eq. No. 3, 
    1990 WL 125541
    , at *3-4
    (Tenn. Ct. App. Aug. 31, 1990); pet. rehearing denied, 
    1990 WL 151207
     (Tenn. Ct.
    App. Oct. 11, 1990), perm. app. denied (Tenn. Dec. 3, 1990).
    The record contains substantial evidence that Ms. Willis was considered for all
    the available positions she was qualified to hold. She applied for the four new central
    office positions and was interviewed by a diverse committee for three of the
    positions. She was not offered the Director of Accountability position because she
    lacked experience as a principal and because Ms. Priest believed that she did not
    exhibit the initiative required for the position. She was not offered any of the
    remaining three central office positions because the screening committee rated her
    qualifications lower than any of the other applicants. After Ms. Willis was not
    offered one of the new central office positions, Ms. Priest notified her of two
    available teaching positions for which she was qualified, and Ms. Willis accepted one
    of these positions.
    Teachers are entitled to be protected from arbitrary or capricious actions and
    transfers “actuated by political or other improper motives.” McKenna v. Sumner
    County Bd. of Educ., 
    574 S.W.2d 527
    , 534 (Tenn. 1978); Springer v. Williamson
    County Bd. of Educ., 
    906 S.W.2d 924
    , 926 (Tenn. Ct. App. 1995). Even so,
    personnel actions based on valid programmatic considerations are not invalid simply
    because part of the motivation may have been political. See Springer v. Williamson
    County Bd. of Educ., 906 S.W.2d at 926. Although Ms. Willis contends that the
    abolition of her position was politically motivated, there are sufficient, demonstrable
    -8-
    grounds supporting Ms. Priest’s and the board’s decisions to abolish her position and
    to place her in a teaching position.
    Ms. Willis worked for Ms. Priest for five years prior to the reorganization.
    There was no evidence that during this time there were any problems or complaints
    about their working relationship or that Ms. Priest wanted to fire her. Ms. Willis was
    given a fair opportunity for every one of the new positions.          The testimony
    established that, in response to legislative mandates requiring accountability, the
    Board and Ms. Priest chose to overhaul the central office. Their actions can in no
    way be characterized as arbitrary or capricious.
    IV.
    We affirm the judgment and remand the case to the trial court for whatever
    further proceedings may be required. We tax the costs of this appeal, jointly and
    severally, to Donna Willis and the Franklin County Education Association for which
    execution, if necessary, may issue.
    ______________________________
    WILLIAM C. KOCH, JR., JUDGE
    CONCUR:
    __________________________________
    HENRY F. TODD, PRESIDING JUDGE
    MIDDLE SECTION
    __________________________________
    SAMUEL L. LEWIS, JUDGE
    -9-