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Sherman v. American Water Heater Company2/27/2001
In this action, plaintiff sought indemnification from her former employer, American Water Heater Company ("AWHC") for reasonable expenses incurred in defending a sexual harassment action pursuant to Tennessee Code Annotated ยง48-18-503.
Plaintiff and defendant, AWHC, filed motions for summary judgment, and the Trial Court dismissed plaintiff's motion and granted defendant summary judgment, principally on the ground that plaintiff had signed a release, releasing her cause of action.
Summary judgment involves purely a question of law, and no presumption of correctness attaches to the lower court's judgment. Bain v. Wells, 936 S.W.2d 618, 622 (Tenn. 1997). In this case, while the parties dispute some of the facts regarding the events relevant to the claim for sexual harassment, these facts are not material to the claim for indemnification. The facts concerning the release, plaintiff's position with the company, and the complaint against plaintiff and the subsequent dismissal of that claim are not in dispute. The issue thus becomes whether the defendant was entitled to judgment as a matter of law based on these facts.
Plaintiff retained counsel to represent her individually in the sexual harassment action which had been brought by a former hourly employee of defendant. Subsequently, plaintiff and defendant entered into a Release and Settlement Agreement, detailing the terms of plaintiff's termination from her employment with defendant. The Release reads, in pertinent part:
By signing this Agreement, Employee releases and waives all claims in law or in equity Employee has or may have against the company as of the date this Agreement is signed by Employee, including but not limited to all claims related to Employee's past relationship with the Company. . . .
This release and waiver includes all claims that may arise under the common law and all federal, state and local statutes, ordinances, rules, regulations and orders, including but not limited to any claim or cause of action based on the Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Americans with Disabilities Act, the Civile Rights Acts of 1866, 1871 and 1991, the Rehabilitation Act of 1973, the Employee Retirement Income Security Act of 1974, the Vietnam Era Veterans' Readjustment Assistance Act of 1974, the National Labor Relations Act, Executive Order 11246, and the Tennessee Human Rights Act, as each of them has been or may be amended. Employee further waives any right to any form of recovery of compensation from any action brought by Employee or on Employee's behalf, including any legal actions in connection with Employee's employment or termination of employment with the Company.
Employee agrees not to file suit in any court or to file any administrative or other complaint or charge with any federal, state, or local agency against the company based on any matter occurring from the beginning of time to the date this Agreement is signed by Employee, including but not limited to any matter relating to Employee's employment or the termination of Employee's employment wit the Company.
Then, plaintiff in the sexual harassment suit filed a Notice of Dismissal as to his claim against plaintiff herein. The notice stated that the plaintiff "having reached a full and complete settlement in this case with Co-Defendant SouthCorp. . . ., hereby gives notice that he withdraws and dismisses the complaint in this action as to Defendant Vickie J. Sherman with prejudice." An Agreed Order of Dismissal was then entered.
The Trial Court held that defendant's claim for
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