Paul J. Frankenberg, III v. River City Resort, Inc., et al

The former president and chief operating officer of a corporation brought this action against the corporation and its CEO, alleging that Tennessee Code Annotated § 66-13-101, which grants “employees and laborers of any corporation . . . a lien upon the corporate and firm property . . . for any sums due them for labor and service performed for the corporation,” provided him a lien in the amount of his alleged unpaid bonus and severance payments. The trial court dismissed the statutory lien claim, holding that the claimant was not included in the statutory definition of “employee.” The claimant has appealed. We hold that the Supreme Court’s ruling in State ex rel. McConnell v. People’s Bank & Trust Co., 296 S.W. 12 (Tenn. 1927) that a corporation’s “managing officers” are not “employees” as defined by Tennessee Code Annotated § 66-13-101 controls. We therefore affirm the trial court’s judgment.