Hardy v. Tournament Players Club at Southwind, Inc.
Annotate this CaseEmployee asserted a private right of action against Employer under the Tennessee Tip Statute, Tenn. Code Ann. 50-2-107, for Employer’s failure properly to pay tips, gratuities, and service charges. The trial court granted Employer’s motion to dismiss for failure to state a claim on the ground that there was no private right of action under the statute. The court of appeals reversed based in part on a 1998 court of appeals opinion, Owens v. University Club of Memphis, recognizing a private cause of action under the Tip Statute. The Supreme Court reversed the judgment of the court of appeals and affirmed the trial court’s judgment, holding (1) Owens is inconsistent in part with subsequent Supreme Court jurisprudence on implying a private right of action under a statute, and therefore, this Court declines to apply the doctrine of legislative inaction to presume that the legislature knew of the holding in Owens and acquiesced in it; and (2) Owens is overruled to the extent that it is inconsistent with the Court’s holding here that an employee has no private right of action under section 50-2-107.
Court Description:
Authoring Judge: Justice Holly Kirby
Trial Court Judge: Judge Donna M. Fields
We granted this interlocutory appeal to address whether an employee may assert a private right of action against her employer under Tennessee Code Annotated section 50-2-107, referred to as the Tennessee Tip Statute, for the employer s failure to properly pay tips, gratuities, and service charges. The trial court granted the defendant employers motion to dismiss the plaintiff employee s claim pursuant to section 50-2-107 for failure to state a claim, on the ground that there was no private right of action under the statute. In a divided opinion, the Court of Appeals reversed, based in part on a 1998 Court of Appeals decision recognizing a private cause of action under the Tip Statute. On appeal, we find that the 1998 Court of Appeals decision is inconsistent in part with subsequent Tennessee Supreme Court jurisprudence on implying a private right of action under a statute. For this reason, we decline to apply the doctrine of legislative inaction to presume that the legislature knew of the 1998 Court of Appeals holding, recognizing a private right of action under the statute, and acquiesced in it. We hold instead that the employee has no private right of action under section 50-2-107 and overrule the 1998 Court of Appeals decision to the extent that it is inconsistent with our holding herein. Accordingly, we reverse the judgment of the Court of Appeals and affirm the trial court s judgment granting the motion to dismiss the employee s cause of action under section 50-2-107 for failure to state a claim.
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