Boelman v. Manson State Bank, 93-675

• Citation: 522 N.W.2d 73
• Decision Date: 21 September 1994
• Docket Number: No. 93-675,93-675
• Parties: 3 A.D. Cases 1251, 6 A.D.D. 897, 5 NDLR P 350 James BOELMAN, Appellant, v. MANSON STATE BANK, Rog-Lee Incorporated, and Roger L. Loerch, Individually and in his Capacity as President of Manson State Bank, Appellees.
• Court: United States State Supreme Court of Iowa

Page 73

522 N.W.2d 73

3 A.D. Cases 1251, 6 A.D.D. 897, 5 NDLR P 350

James BOELMAN, Appellant, v. MANSON STATE BANK, Rog-Lee Incorporated, and Roger L. Loerch, Individually and in his Capacity as President of Manson State Bank, Appellees.

No. 93-675.

Supreme Court of Iowa.

Sept. 21, 1994.

Edward N. McConnell and Anthony F. Renzo of Babich, McConnell & Renzo, P.C., Des Moines, for appellant.

Mark R. Crimmins and Brian L. Yung of Bennett, Crimmins & Yung, Fort Dodge, for appellees.

Considered by McGIVERIN, C.J., and HARRIS, LAVORATO, NEUMAN, and TERNUS, JJ.

TERNUS, Justice.

James Boelman brought this action against his former employer and its president claiming his employment had been terminated because of his multiple sclerosis (MS). He based his claims on Iowa's civil rights statute, Iowa Code chapter 601A (1989), ¹ and on section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. section 794. The case was tried to the district court as a law action. The court ruled against Boelman on both claims. We affirm because we conclude the district court correctly found that Boelman was not qualified for his job in spite of his disability.

Our review of a disability discrimination claim tried to the court is at law. Landals v. George A. Rolfes Co., 454 N.W.2d 891, 892 (Iowa 1990). We are bound by the trial court's findings of fact if they are supported by substantial evidence. Iowa R.App.P. 14(f)(1). We view the evidence in the light most favorable to upholding the judgment. Trobaugh v. Hy-Vee Food Stores, 392 N.W.2d 154, 156 (Iowa 1986).

I. Background Facts and Proceedings.

Roger Loerch, the president of Manson State Bank, hired Boelman in 1984 as a vice president of the bank. Boelman's duties included supervising bank personnel, overseeing bank operations, and handling loans. In 1988 Boelman was diagnosed with probable multiple sclerosis. Although he walked with a noticeable limp, the physical manifestations of his disease remained minor and did not affect his job performance.

During 1988 Boelman regularly saw a psychologist at the recommendation of his physician. The psychologist concluded that Boelman was probably suffering from an adjustment disorder and a depressed mood. He also thought that Boelman had some compulsive personality traits. The psychologist's records revealed that Boelman was stressed and anxious about his personnel responsibilities at the bank and whether Loerch would be satisfied with his handling of these responsibilities. Boelman discussed his concerns about others and how he related to them with his psychologist. Boelman's medical doctor also treated him for depression and anxiety.

During this time, employees expressed their displeasure with Boelman to Loerch. Their complaints centered on Boelman's personality and attitude rather than his physical problems. In April 1988, Loerch relieved Boelman of his personnel responsibilities. Boelman agreed this was a good idea.

Nevertheless, complaints from Boelman's coemployees persisted through 1988. These complaints continued to focus on Boelman's personal interactions with other employees. Boelman did not get along well with the staff and the staff did not respect him. ² Loerch spoke with Boelman and the other employees concerning this problem in November 1988. However, Loerch saw no real improvement in Boelman's work performance or his relationship with the other employees. Therefore, Loerch relieved Boelman of his responsibility for operations. Boelman continued to have the title of vice president and his duties as a loan officer.

During this time, Loerch became aware that Boelman was handling a decreasing amount of the bank's loans while Arlen Kirkhart, another bank vice president, was doing an increasing amount of this work. Customers went to Kirkhart because they did not want to work with Boelman. Eventually, Kirkhart was handling ninety percent of the loan work.

In December 1989, Boelman met with Loerch and John Carstens, a semi-retired bank vice president. At this meeting Loerch told Boelman that Loerch could no longer guarantee Boelman's employment at the bank and that Boelman should consider himself a day-to-day employee. Loerch also informed Boelman that Loerch planned to begin a search for Boelman's replacement.

Boelman was discharged in October 1990. He then sued the bank ³ and Loerch alleging that the defendants fired him because of his MS in violation of Iowa Code chapter 601A and the Rehabilitation Act. In deciding these claims, the district court used the McDonnell Douglas pretext analysis. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). The court held that Boelman had failed to prove a prima facie case of discrimination under chapter 601A and section 504. The court found that because of his MS Boelman was mentally and emotionally unable to handle the job and therefore, he had failed to show he was qualified for the position of vice president. The court also found that no accommodation was available or conceivable in this situation. Additionally, the court found that defendants had set forth a legitimate nondiscriminatory reason for the discharge--Boelman's performance problems--which Boelman failed to rebut. The court concluded Boelman failed to prove he was discharged because of his disability.

On appeal, Boelman claims that (1) the court applied an incorrect legal analysis under chapter 601A and section 504; (2) there was insufficient evidence to support the trial court's finding that a mental condition caused by his MS prevented him from handling his job duties; and (3) the court erred in finding that the defendants could not reasonably accommodate the disability caused by Boelman's MS. We affirm.

II. Discriminatory Motive.

Boelman makes several complaints with respect to the trial court's analysis of and conclusions concerning the bank's motivation for his termination. He claims (1) the trial court should have used a mixed-motive analysis to determine whether the defendants illegally discriminated against him; (2) the evidence established that he was fired, at least in part, because of his MS, unrelated to its effect on his performance; and (3) the court erred in concluding that he was not terminated because of his disability.

A. Rehabilitation Act. Section 504 prohibits discrimination against a "qualified individual" with a disability "solely by reason of" his disability. ⁴ 29 U.S.C. § 794 (Supp. II 1990). ⁵ Boelman claims that because the court found his performance problems were causally connected to his MS, it erred in concluding that the defendants did not discharge him because of his disability under section 504. We agree.

Where an employer fires an employee based on conduct shown to be causally connected to the employee's disability, the termination is "solely by reason of" the disability for purposes of section 504. Teahan v. Metro-North Commuter R.R., 951 F.2d 511, 515-16 (2d Cir.1991), cert. denied, 506 U.S. 815, 113 S.Ct. 54, 121 L.Ed.2d 24 (1992). Nevertheless, this error by the district court is not a ground for reversal.

To establish a claim under section 504, Boelman also had to show that he was "qualified" for his position. Southeastern Community College v. Davis, 442 U.S. 397, 406, 99 S.Ct. 2361, 2367, 60 L.Ed.2d 980, 988 (1979); Jackson v. Veterans Admin., 22 F.3d 277, 278 (11th Cir.1994); Chandler v. City of Dallas, 2 F.3d 1385, 1393 (5th Cir.1993), cert. denied, 511 U.S. 1011, 114 S.Ct. 1386, 128 L.Ed.2d 61 (1994). The trial court found he was not. Because, as we hold later, this finding is supported by substantial evidence, the court's error in holding that the defendants did not discharge Boelman because of his disability was not prejudicial.

B. Chapter 601A. In deciding whether Boelman had proved that the defendants discriminated against him, the district court analyzed whether Boelman had proved a prima facie case of discrimination by a preponderance of the evidence. See Smith v. ADM Feed Corp., 456 N.W.2d 378, 385 (Iowa 1990). The court used a pretext analysis. See Hy- VeeFoodStoresv.IowaCivilRightsComm'n,453N.W.2d512,516 (Iowa 1990) (applying McDonnell Douglas burden-shifting pretext analysis to a chapter 601A claim). Boelman contends the court should have applied a mixed-motive analysis. See Price Waterhouse v. Hopkins, 490 U.S. 228, 246-47, 109 S.Ct. 1775, 1799, 104 L.Ed.2d 268, 285 (1989) (applying mixed-motive analysis in title VII case).

A mixed-motive analysis is appropriate when the employment decision was "the product of a mixture of legitimate and illegitimate motives." Id., 490 U.S. at 247, 109 S.Ct. at 1788, 104 L.Ed.2d at 285-86; Radabaugh v. Zip Feed Mills, Inc., 997 F.2d 444, 448 (8th Cir.1993). Once the employee proves a mixed motive, the burden of proof shifts to the employer to show that it would have made the same decision in the absence of the discriminatory motive. Price Waterhouse, 490 U.S. at 244-45, 109 S.Ct. at 1788, 104 L.Ed.2d at 284; Radabaugh, 997 F.2d at 448.

Here Boelman attempted to prove that his termination was based, at least in part, on the mere fact that he had MS, unrelated to its effect on his performance. ⁶ The defendants claimed that he was fired because of poor performance. The district court found that Boelman's MS caused his performance problems. Consequently, no matter whose version of the facts we accept, Boelman's disability clearly motivated his termination.

Because Boelman's disability was the only reason for his discharge, the facts of this case simply do not show a termination based on mixed motives. The issue here was not whether the defendants would have fired Boelman regardless of his disability. Obviously, they would not have fired him since the only reason they offered for his termination was disability-related. The issue here, as we shall discuss later, was whether Boelman's disability made him unqualified for his job. Under these circumstances, a mixed-motive...