Jeffrey Howard began working with Cherokee Health Systems as a college intern and later became its chief financial officer around 2000. He served in that position for more than two decades under CEO Dennis Freeman, who led the organization for forty years. By 2019, succession planning became a key topic as Freeman considered retirement. Howard initially suggested Dr. Parinda Khatri, the chief clinical officer, as Freeman’s successor and acknowledged in an email that he was “probably not the best choice” for CEO.
In October 2021, Freeman formally announced his retirement, effective January 31, 2022. Freeman recommended that the board hire Dr. Khatri in accordance with the organization’s succession plan, which prioritized internal candidates. Although Howard had earlier downplayed his interest, he changed his mind and expressed his desire to apply for the CEO position. Howard emailed board members and Dr. Khatri to disclose his intent. Khatri expressed surprise and concern, and Freeman viewed Howard’s actions as disruptive to the transition plan. Freeman terminated Howard, citing his decision to apply for CEO after allegedly assuring Freeman he would not interfere with the process.
Following the termination, Howard’s attorneys sent a letter to the board claiming sex discrimination, alleging Freeman fired Howard to ensure that a woman became CEO. The board proceeded with its plan, interviewing only Khatri and ultimately selecting her as Freeman’s successor in January 2022.
Howard sued Cherokee Health Systems under Title VII of the Civil Rights Act and Tennessee law, alleging sex discrimination and retaliation. He argued that Freeman fired him because of his sex and that the board retaliated by refusing to consider him for CEO after his lawyers complained of discrimination. The district court granted summary judgment for Cherokee, holding that Howard lacked sufficient evidence to prove discrimination or retaliation.
On appeal, the United States Court of Appeals for the Sixth Circuit reviewed Howard’s claims de novo. The court applied the McDonnell Douglas burden-shifting framework for discrimination cases based on indirect evidence. To establish a prima facie case, Howard needed to show he was qualified for the position, suffered an adverse employment action, and that someone outside his protected group was treated more favorably.
The court found that Freeman’s recommendation of Khatri stemmed from her clinical background and internal succession planning, not Howard’s sex. Evidence showed that Freeman’s first choice for successor had been another male employee. Howard had also acknowledged in writing that he believed Khatri was the better candidate. The court further noted that Freeman’s stated reason for the termination—that Howard disrupted the succession plan and breached assurances—was not shown to be pretextual. Freeman’s belief, even if mistaken, that Howard had promised not to apply for CEO sufficed as a non-discriminatory reason.
Regarding retaliation, the court found no evidence that the board’s refusal to consider Howard for CEO was linked to his attorneys’ discrimination complaint. The board chair testified that they trusted Freeman’s judgment in firing Howard and followed the succession plan favoring internal candidates, leaving only Khatri for consideration. The timing of the decision and internal emails indicated the board’s reasoning was based on Howard’s termination and not retaliatory animus.
On September 2, 2025, the Sixth Circuit affirmed the district court’s grant of summary judgment for Cherokee Health Systems. The court held that Howard failed to present sufficient evidence of sex discrimination or retaliation in his termination and exclusion from consideration for CEO.
If your organization is addressing leadership transitions or disputes related to succession planning, Whitcomb, Selinsky PC assists with succession planning matters. Reach out to contact us to learn how our team can support your business succession needs.