Michael McGhee v. Shelby County Government

This is a breach of contract case. Appellant, a former employee of Appellee Shelby County, filed suit against Shelby County for alleged breach of a settlement agreement. specifically, Appellant alleges that Shelby County breached the contract by failing to change Appellant’s employment record to reflect that he resigned, rather than that he was fired, and/or by informing Appellant’s potential employer that Appellant was fired. Shelby County filed a motion to dismiss on the ground that the six-year statute of limitations for breach of contract actions had expired. The trial court granted the motion to dismiss. We conclude that: (1) the contract is severable; (2) Appellant’s cause of action for Shelby County’s breach of its obligation to change his employment records was correctly dismissed on the statute of limitations ground; (3) Appellee’s contractual obligation to answer employment inquiries pursuant to the terms of the contract was not implicated until the condition precedent occurred (i.e., until inquiry was made by a third-party); and (4) the breach of this obligation accrued when Shelby County disseminated information counter to that contemplated in the settlement agreement. Accordingly, the Appellant’s claim that Shelby County violated the express terms of the settlement agreement in 2010 by informing the Appellant’s potential employer that he was fired is not barred by the applicable statute of limitations. Affirmed in part, reversed in part, and remanded.