Beth Proffitt v. Smoky Mountain Woodcarvers Supply, Inc., et al.

This appeal arises from the termination of Beth Proffitt (“Plaintiff”) from employment at Smoky Mountain Woodcarvers Supply, Inc. (“the Corporation”). Plaintiff, a minority shareholder in the Corporation, sued the Corporation, as well as the other shareholders Mac Proffitt and Ray Proffitt (collectively, “the Defendants”) in the Circuit Court for Blount County (“the Trial Court”). The Trial Court bifurcated the issues of liability and damages. Plaintiff alleged, among other things, that the Defendants breached their fiduciary duty to her. After a trial on the matter of liability, the Trial Court found the Defendants liable for breach of fiduciary duty. After the hearing on damages, the Trial Court awarded damages to Plaintiff, including lost salary and bonus. The Trial Court also awarded Plaintiff her attorney’s fees. The Defendants appeal. We find that the Trial Court did not err in finding that the Defendants did breach their fiduciary duty to Plaintiff. We, however, reverse the award of attorney’s fees to Plaintiff. Otherwise, we affirm the judgment of the Trial Court.