After-acquired Evidence is a Defense to Breach of Employment Contract
The Tennessee Supreme Court ruled yesterday in a case about after-acquired evidence. The issue arises where a company breaches an employment contract by terminating an employee. After already breaching the contract, what happens if the company then finds a legitimate reason to terminate the employee? According to the Supreme Court in Teter v. Republic Parking System, Inc., the company can use the after-acquired evidence as a defense. The burden is on the company to prove:
(1) the employee was guilty of some misconduct of which the employer was unaware; (2) the misconduct would have justified discharge of the employee; and (3) had the employer known of the misconduct, the employer would have discharged the employee.
The Tennessee Supreme Court held that the defense must be proven by a preponderance of the evidence (rather than a higher clear and convincing standard).
Post A Comment / Question