v.
BlueCross BlueShield of Tennessee
03/26/2025 IN THE SUPREME COURT OF TENNESSEE AT KNOXVILLE May 22, 2024 Session1
HEATHER SMITH v. BLUECROSS BLUESHIELD OF TENNESSEE
Appeal by Permission from the Court of Appeals Chancery Court for Hamilton County No. 21-0938 Jeffrey M. Atherton, Chancellor ___________________________________
No. E2022-01058-SC-R11-CV ___________________________________
In this appeal, we hold that the right to petition in the Tennessee Constitution is enforceable against governmental entities, not private parties, and that it cannot be the basis for a “public policy” exception to the employment-at-will doctrine as against private employers. Here, the plaintiff at-will employee emailed members of the Tennessee General Assembly expressing grievances about the COVID-19 vaccination mandate implemented by her employer, a private organization. After the employer told the plaintiff that the email violated the employer’s policies, the employee sent a second similar email to legislators. The defendant terminated the plaintiff’s employment. The plaintiff sued the defendant private employer for retaliatory discharge, asserting her employment was terminated for exercising the right to petition in Article I, Section 23 of the Tennessee Constitution. The trial court dismissed the complaint, and the Court of Appeals reversed. On appeal, our review shows that, for hundreds of years dating back to early England, the constitutional right to petition has been considered a bulwark against government oppression, not a constraint on private parties. No state in the nation has held that the right to petition applies to limit the ability of private employers to terminate the employment of at-will employees, and the language in Article I, Section 23 does not mandate such a holding. We hold that Article I, Section 23 is enforceable only against the government, not against private actors; consequently, private employers do not violate a clear public policy by terminating employees for exercising the right to petition. Thus, at-will employees may not base claims of retaliatory discharge against private employers on the right to petition in the Tennessee Constitution. Accordingly, we reverse the Court of Appeals and affirm the trial court’s dismissal of the plaintiff’s complaint.
[*2]Ms. Smith did not get vaccinated with the COVID-19 vaccine. Instead, she sought to change job positions to avoid having BlueCross consider her—in Ms. Smith’s view, wrongfully—a public-facing employee.[3] BlueCross denied Ms. Smith’s request to change job positions.
BlueCross required Ms. Smith to disclose her vaccination status and submit any requests for religious accommodations relating to the vaccine mandate. On about September 13, 2021, Ms. Smith timely submitted a request for religious accommodation. On approximately September 27, BlueCross told Ms. Smith her request for religious accommodation had been rejected because BlueCross could not substantiate it. BlueCross gave Ms. Smith thirty more days to get vaccinated.
About two days later, Ms. Smith contacted BlueCross to ask what information it needed to substantiate her request for religious accommodation. BlueCross told Ms. Smith they did not need any more information and “would give her the benefit of the doubt.” BlueCross then gave Ms. Smith a thirty-day extension to get vaccinated; it referred to the extension as an accommodation.
Ms. Smith offered BlueCross an alternative suggestion for accommodation, which was rejected. When she sought to appeal, she was told there was no right of appeal, so she accepted the thirty-day extension. Ms. Smith then applied for and obtained a new BlueCross job position that was not subject to the vaccination requirement.
Meanwhile, on October 27, 2021, the Tennessee General Assembly convened a special session for the purpose of addressing COVID-related issues. That same day, Ms. Smith emailed various Tennessee state legislators regarding her concerns and grievances about vaccine mandates and her requests for legislative action. On approximately October 28, one of the legislators read Ms. Smith’s email aloud to a legislative committee. In the same time frame, a member of the General Assembly forwarded Ms. Smith’s email to BlueCross. On November 3, BlueCross told Smith that her email to lawmakers violated BlueCross’s social media policy.
On November 4, BlueCross instituted a new vaccine policy requiring all of its employees to obtain the COVID-19 vaccine. That same day, Ms. Smith sent another email to legislators. This one asked for legislative protection from vaccine mandates, and it specified that she was expressing her own opinions and not those of BlueCross. A member of the General Assembly forwarded Ms. Smith’s second email to BlueCross.
[*3]The following day, BlueCross terminated Ms. Smith’s employment. BlueCross told Ms. Smith it was terminating her employment because the email she sent to legislators violated BlueCross’s social media policy.
On December 30, 2021, Ms. Smith filed a complaint against BlueCross for common-law retaliatory discharge in the Hamilton County Chancery Court. The complaint alleged that the termination of Ms. Smith’s employment violated Tennessee’s public policy, based on the right to petition in Article I, Section 23 of the Tennessee Constitution. The prayer for relief sought compensatory and punitive damages, and it asked the trial court to order BlueCross to reinstate Ms. Smith.
BlueCross filed a motion under Rule 12.02(6) of the Tennessee Rules of Civil Procedure to dismiss Ms. Smith’s complaint for failure to state a claim. BlueCross argued its termination of Ms. Smith’s employment was lawful under Tennessee’s employment-at- will doctrine. It acknowledged Tennessee recognizes a public policy exception to the employment-at-will doctrine but argued the exception does not encompass Ms. Smith’s claim. BlueCross contended the right to petition protects citizens from abusive government action but does not control relationships between private individuals, such as private at- will employment relationships. BlueCross asked the trial court to dismiss Ms. Smith’s complaint for wrongful termination and retaliatory discharge claim as a matter of law.
In opposition to BlueCross’s motion, Ms. Smith argued that, under the constitutional right to petition, “the court should protect the rights of Tennessee citizens and hold that the public policy exception to the at-will employment rule should be recognized as applying to communications with the legislature.”
After a hearing, the trial court entered an order granting BlueCross’s motion to dismiss.[4] The trial court acknowledged the matter presented “a dispute of first impression in Tennessee” and that “[n]either the parties nor the Court have found and presented a case that presents [Ms. Smith’s] specific theory.” The trial court declined to “recognize the right of citizens to communicate with legislators, as set forth in Article I, Section 23 of the Tennessee Constitution, as one of the clearly established public policies for which there is an exception to the doctrine of at-will employment.”5
[*4]Ms. Smith appealed to the Court of Appeals. Smith v. Bluecross Blueshield of Tenn., No. E2022-01058-COA-R3-CV, 2023 WL 3903385, at *4 (Tenn. Ct. App. June 9, 2023), perm. app. granted, (Tenn. Nov. [20], 2023). The Court of Appeals reversed the trial court. Id. at *9. It held that the right to petition is a public policy exception to the employment- at-will doctrine and applies to private employers like BlueCross. Id. at *7. Based on the allegations in the complaint, the appellate court held that Ms. Smith stated a claim that she was “fired for engaging in public-policy-linked conduct, namely exercising her right to petition.” Id. at *9.
This Court granted BlueCross’s application for permission to appeal to consider whether the Court of Appeals erred in holding that BlueCross violated a clear public policy evidenced by a constitutional provision by terminating Ms. Smith’s employment for exercising her right to petition under Article I, Section 23 of the Tennessee Constitution.[6]
STANDARD OF REVIEW
This is an appeal from the trial court’s grant of a motion to dismiss for failure to state a claim upon which relief can be granted. See Tenn. R. Civ. P. 12.02(6). A Rule 12.02(6) motion “challenges ‘the legal sufficiency of the complaint, not the strength of the plaintiff’s proof or evidence.’” Mynatt, 669 S.W.3d at 746 (quoting Webb v. Nashville Area Habitat for Human., 346 S.W.3d 422, 426 (Tenn. 2011)); see Leach v. Taylor, 124 S.W.3d 87, 90 (Tenn. 2004) (“A Rule 12.02(6) motion to dismiss admits the truth of all of the relevant and material allegations contained in the complaint, but it asserts that the allegations fail to establish a cause of action.”). Our review of a dismissal under Rule 12.02 requires us “to take the relevant and material factual allegations in the complaint as true and to construe liberally all allegations in favor of the plaintiff.” Lind v. Beaman Dodge, Inc., 356 S.W.3d 889, 894 (Tenn. 2011). We review the trial court’s legal conclusions “de novo without any presumption of correctness.” Leach, 124 S.W.3d at 90 (citing White v. Revco Disc. Drug Ctrs., Inc., 33 S.W.3d 713, 718 (Tenn. 2000)).
[*5]ANALYSIS
In this appeal, the plaintiff at-will employee seeks to assert a cause of action against a private employer for retaliatory discharge for exercising her rights under Article I, Section 23 of the Tennessee Constitution, commonly called the right to petition.[7] To analyze the issue on appeal, we first provide a brief overview of the employment-at-will doctrine and retaliatory discharge, and then discuss the right to petition under the federal Constitution, as well as the constitutions of other states. Against that backdrop, we consider whether Article I, Section 23 of the Tennessee Constitution is enforceable against private parties, and whether BlueCross violated any clear public policy evidenced by the Tennessee Constitution by terminating Ms. Smith for exercising her right to petition.
I. Employment at Will
We begin with the doctrine of employment at will. Tennessee has recognized the doctrine since at least the late 1800s.8 It is considered “a bedrock of Tennessee common law.” Williams v. City of Burns, 465 S.W.3d 96, 108 (Tenn. 2015) (quoting Franklin v. Swift Transp. Co., 210 S.W.3d 521, 527 (Tenn. Ct. App. 2006)). Indeed, the doctrine of employment at will “is the fundamental principle controlling the relationship between employers and employees.” Mason v. Seaton, 942 S.W.2d 470, 474 (Tenn. 1997).
Under that doctrine, employment for an indefinite period may be terminated by either the employer or the employee at any time, for any reason, or for no reason at all. Williams, 465 S.W.3d at 108 (citing Sykes v. Chattanooga Hous. Auth., 343 S.W.3d 18, 26–27 (Tenn. 2011); Guy v. Mut. of Omaha Ins. Co., 79 S.W.3d 528, 534–35 (Tenn. 2002)). The employment-at-will doctrine “recognizes that employers need the freedom to make their own business judgments without interference from the courts.” Mason, 942 S.W.2d at 474. “[A]n employer’s ability to make and act upon independent assessments of an employee’s abilities and job performance as well as business needs is essential to the free- enterprise system.” Stein v. Davidson Hotel Co., 945 S.W.2d 714, 717 (Tenn. 1997) (quoting Clifford v. Cactus Drilling Corp., 353 N.W.2d 469, 474 (Mich. 1984) (Williams, C.J., dissenting)). Likewise, at-will employees have the right to refuse to work for a person or organization. Keller v. Casteel, 602 S.W.3d 351, 358 (Tenn. 2020) (citing Crews v. Buckman Lab’ys Int’l, Inc., 78 S.W.3d 852, 858 (Tenn. 2002)).
[*6]This traditional rule, however, is not absolute; some restrictions have been imposed on the right of employers to discharge an employee. Williams, 465 S.W.3d at 108 (citing Guy, 79 S.W.3d at 535). As one of the exceptions to the employment-at-will doctrine, Tennessee recognizes a common-law tort of retaliatory discharge. Id. at 108–09 (citing Chism v. Mid–South Milling Co., 762 S.W.2d 552, 556 (Tenn. 1988);9 Clanton v. Cain– Sloan Co., 677 S.W.2d 441, 444–45 (Tenn. 1984)). Under this exception, “an at-will employee ‘generally may not be discharged for attempting to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy which is evidenced by an unambiguous constitutional, statutory, or regulatory provision.’” Crews, 78 S.W.3d at 858 (quoting Stein, 945 S.W.2d at 717).
Our Court has explained that, to prove a common-law retaliatory discharge claim, the plaintiff must show (1) that an employment-at-will relationship existed; (2) that she was discharged; (3) that the reason for her discharge was that she attempted to exercise a statutory or constitutional right, or for any other reason which violates a clear public policy evidenced by an unambiguous constitutional, statutory, or regulatory provision; and (4) that a substantial factor in the employer’s decision to discharge her was her exercise of protected rights or her compliance with clear public policy. Id. at 862.10
The earliest Tennessee cases recognizing retaliatory discharge have emphasized that it is an important, but narrow, exception to the employment-at-will doctrine. See, e.g., Chism, 762 S.W.2d at 556. Our courts have underscored the qualified nature of the cause of action, noting that retaliatory discharge is applicable only “in limited circumstances, [where] certain well-defined, unambiguous principles of public policy confer upon employees implicit rights which must not be circumscribed or chilled by the potential of termination.” Franklin, 210 S.W.3d at 530–31 (quoting Stein, 945 S.W.2d at 717). The narrow exception for retaliatory discharge “cannot be permitted to consume or eliminate the general rule” of employment at will. Chism, 762 S.W.2d at 556.
[*7]II. Constitutional Right to Petition
To determine whether a private employer who terminates an at-will employee for exercising her right to petition violates a “clear public policy” evidenced by the Tennessee Constitution, Crews, 78 S.W.3d at 858, we focus first on whether Article I, Section 23 of the Tennessee Constitution is enforceable against private entities.
“State constitutions embody fundamental values and articulate the citizens’ common aspirations for constitutional governance and the rule of law.” Martin v. Beer Bd., 908 S.W.2d 941, 946–47 (Tenn. Ct. App. 1995). To interpret the text of a constitutional provision, we ask “what the people who voted for th[e] constitutional [provision] would think that the language meant.” State ex rel. Doyle v. Torrence, 310 S.W.2d 425, 427–28 (Tenn. 1958). In addition, this Court has recognized:
Articulating constitutional principles, like any other interpretative exercise, may be aided by referring to external sources. A state constitution does not exist in isolation but rather is a unique historical document. While the text must always be the primary guide to the purpose of a constitutional provision, we should approach the text in a principled way that takes into account the history, structure, and underlying values of the document.
Cleveland Surgery Ctr., L.P. v. Bradley Cnty. Mem’l Hosp., 30 S.W.3d 278, 282 (Tenn. 2000) (quoting Martin, 908 S.W.2d at 947). Consequently, to interpret our Constitution, Tennessee courts have looked not only to historical context, but also to “other similar state and federal constitutional provisions, and decisions from other jurisdictions construing similar provisions.” Id. (quoting Martin, 908 S.W.2d at 947).
A. Historical context
The right to petition, “an essential safeguard of freedom, is of ancient significance in the English law and the Anglo-American legal tradition.” Borough of Duryea, Pa. v. Guarnieri, 564 U.S. 379, 395 (2011). Its origins can be traced “to Magna Carta, which confirmed the right of barons to petition the King” in 1215 A.D.[11] Id. (citing W.
[*8]McKechnie, Magna Carta: A Commentary on the Great Charter of King John 467 (rev. 2d ed. 1958)). In the ensuing years, “[p]etitioning came to be regarded as part of the . . . fabric of political customs which defined English rights.” Gregory A. Mark, The Vestigial Constitution: The History and Significance of the Right to Petition, 66 Fordham L. Rev. 2153, 2169 (1998).
The seventeenth century is “key to understanding the centrality of petitioning in English constitutional thought.” Id. at 2170. During that period, there were many upheavals, including civil war, and the King began to prosecute people for exercising their right to petition. Norman B. Smith, “Shall Make No Law Abridging...”: An Analysis of the Neglected, but Nearly Absolute, Right of Petition, 54 U. Cin. L. Rev. 1153, 1159–61 (1986). By that time, “monarchial challenge to a petition could be, and was, defended on the basis that petitioning was an ancient right.” Mark, supra, at 2169.
Ultimately, the monarch’s unfavorable reaction to petitions strengthened the right, and “petitioners’ immunities were refined.” Id. at 2171. The Glorious Revolution of 1688 and the 1689 English Bill of Rights confirmed the right to petition as an element of the British Constitution. Smith, supra, at 1160; see Richards Furniture Corp. v. Bd. of Cnty. Comm’rs, 196 A.2d 621, 626 (Md. 1963) (citing Corwin, Constitution, United States, 82 Congress, 2d Session Senate Document No. 170, p. 805)).
These events show that, during this time in England, the right to petition was understood as freedom to seek redress for grievances without reprisal from the British government:
From its inception in the thirteenth century and for approximately 500 years thereafter, petitioning was not a meaningful right because petitioners were frequently punished. Even when petitioning was legitimized through written guarantees during that period, the right was not always tolerated in practice. ...
cause to be observed the peace and liberties which we have granted and confirmed to them by this our present charter; so that if we or our justiciar or our bailiffs or any of our servants offend against anyone in any way, or transgress any of the articles of peace or security, and the offence is indicated to four of the aforesaid twenty-five barons, those four barons shall come to us or our justiciar, if we are out of the kingdom, and shall bring it to our notice and ask that we have it redressed without delay.
Gregory A. Mark, The Vestigial Constitution: The History and Significance of the Right to Petition, 66 Fordham L. Rev. 2153, 2164 n.29 (1998) (quoting Manuscript Cii of Magna Carta (1215) (translation from text compiled by C. Bemont, Chartes des libertes anglaises (1892)).
[*9]In England, the presence of a strong monarchy had always allowed the British government to suppress petitioners. Over time, the ascendancy of Parliament counterbalanced the sovereign’s power. Petitioners did not immediately gain from this shift in power—they were simply punished by a different branch of government, namely Parliament.
Julie M. Spanbauer, The First Amendment Right to Petition Government for A Redress of Grievances: Cut from A Different Cloth, 21 Hastings Const. L.Q. [15], 19–20 (1993) (internal footnotes omitted).
Thus, the right to petition ultimately “became part of the law of England.” Guarnieri, 564 U.S. at 395 (citing S. Gardiner, The First Two Stuarts and the Puritan Revolution, 1603–1660, pp. 60–61 (1886)). “The Petition of Right occupies a place in English constitutional history superseded in importance, perhaps, only by Magna Carta itself and the Declaration of Right of 1689.”12 Id.
American colonists sought to replicate the most important liberties of their English heritage, including the right to petition. Mark, supra, at 2174. The right was affirmed in both pre-Revolutionary declarations and pre-union state constitutions.[13] Smith, supra, at 1173, 1181; Mark, supra, at 2177.
For example, the Stamp Act Congress of 1765, convened to protest Britain’s imposition of the Stamp Act, included in its Declaration of Rights and Grievances that it was “the right of the British subjects in these colonies to petition the King or either House of Parliament.” Smith, supra, at 1173 (quoting 1 Bernard Schwartz, The Bill of Rights: A Documentary History 196–98 (1971)). In 1774, the Declaration and Resolves of the First Continental Congress stated that the colonists had “a right peaceably to assemble, consider