Clarence W. Lee v. K-Mart Corporation

This workers' compensation appeal has been referred to the Special Workers' Compensation Appeals Panel of the Supreme Court in accordance with Tenn. Code Ann. _ 5-6-225(e)(3) for hearing and reporting to the Supreme Court of findings of fact and conclusions of law. The plaintiff claims to have suffered an injury by accident cognizable under the workers' compensation law when, on August 7, 1992, after 3 years of continuous employment, he was summarily relieved of his duties as manager of the K-Mart store in Hixson, Tennessee, demoted, and transferred to another store in Paris, Illinois. He alleged that he thereby sustained a sudden emotional injury resulting in total disability and unsoundness of mind. The defendant admitted that it removed the plaintiff from its Hixson store and transferred him to a smaller store at a reduced salary. It denied that the plaintiff gave notice of a work-related injury, and averred that he filed an age- discrimination claim against it without alerting the court or the defendant that he was of unsound mind. In course, the case was heard on the motion of the defendant for summary judgment, alleging the bar of the Statute of Limitations, TENN. CODE ANN. _ 5- 6-21, and the further allegation that the claim of emotional stress was not a compensable injury. The underlying facts are not disputed. Mr. Lee's difficulties began with his departure from company policy in disposing of defective or damaged merchandise which was to be destroyed in accordance with the manufacturer's instructions. Instead, he secreted these goods in a locked trailer, later donating them to charitable, fund raising causes. A portion of the funds realized from the sale of the damaged or defective merchandise went into a "flower fund" controlled by Mr. Lee which he used to provide gifts and trips to certain employees. Upon the belated discovery of this scheme, Mr. Lee was interviewed extensively and warned that he should expect stringent disciplinary action. He was then 5 years of age, had been manager of the Hixson store for 12 years, and had relocated 17 times. Mr. Lee was on vacation when the investigation began of his disposal of 2