Grozdanich v. Leisure Hills Health Center, Inc.

• Citation: 25 F.Supp.2d 953
• Decision Date: 30 September 1998
• Docket Number: Civ.No. 97-760 (RLE).
• Parties: Anne Marie GROZDANICH, Plaintiff, v. LEISURE HILLS HEALTH CENTER, INC., a Minnesota corporation, a/k/a Leisure Hills of Hibbing; St. Francis Health Center of Morris, Inc.; Mesabi Regional Medical Center, Inc., a Minnesota corporation, a/k/a University Medical Center-Mesabi; and John Parson, Defendants.
• Court: U.S. District Court — District of Minnesota

25 F.Supp.2d 953

Anne Marie GROZDANICH, Plaintiff, v. LEISURE HILLS HEALTH CENTER, INC., a Minnesota corporation, a/k/a Leisure Hills of Hibbing; St. Francis Health Center of Morris, Inc.; Mesabi Regional Medical Center, Inc., a Minnesota corporation, a/k/a University Medical Center-Mesabi; and John Parson, Defendants.

Civ.No. 97-760 (RLE).

United States District Court, D. Minnesota.

September 30, 1998.

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William James Mavity, Mavity & Assoc., Minneapolis, MN, for Plaintiff.

Michael M. Fluegel, Fluegel Helseth McLaughlin, Anderson & Brutlag, Morris, MN, for Defendants Leisure Hills Health Center, Inc., St. Francis Health Service of Morris, Inc.

Joseph John Roby, Jr., Laura J. Schacht, Johnson Killen Thibodeau & Seiler, Duluth, MN, for Defendant Mesabi Regional Medical Center, Inc.

John Parson, Hibbing, MN, pro se.

MEMORANDUM ORDER

ERICKSON, United States Magistrate Judge.

I. Introduction

This matter came before the undersigned United States Magistrate judge pursuant to the parties' consent, made in accordance with the provisions of Title 28 U.S.C. § 636(c), upon the Motion for Summary Judgment of Leisure Hills Health Center, Inc. ("Leisure Hills"), and St. Francis Health Service of Morris Inc. ("St.Francis"), and upon the Motion for Judgment on the Pleadings, or for Summary Judgment, of the University Medical Center-Mesabi's ("UMC-M") on the Plaintiff's claims against it, and on the Cross-Claim of Leisure Hills.

A Hearing on the Motions was conducted on March 5, 1998, at which time, the Plaintiff appeared by Pamela M. Miller, Esq., Leisure Hills appeared by Joseph J. Roby, Jr., Esq., UMC-M appeared by Michael M. Fluegel, Esq., and no appearance was made by, or on behalf of, the Defendant John Parson ("Parson").

For reasons which follow, the Motions are granted, in part, and denied, in part.

II. Factual and Procedural History

This action arises from Parson's three acts of sexual assault upon the Plaintiff, which occurred on May 22, 1996, at a nursing care facility in Hibbing, Minnesota. At that time, Parson was a co-employee of the Plaintiff, and she asserts claims against her employer — Leisure Hills¹ — for sexual harassment, under Title VII of the Civil Rights Act of 1964, Title 42 U.S.C. § 2000e et seq., the Minnesota Human Rights Act, Minnesota Statutes Section 363.01 et seq., and under several common law theories.² She has also sued UMC-M, Parson's previous employer under Minnesota common law, for its claimed role in failing to prevent the sexual assaults. Leisure Hills has filed a Cross-Claim against UMC-M, for common law indemnity, which is said to arise from a claimed violation of the common law duties it owes to Leisure Hills.

A. Parson's Tenure at UMC-M.

From June of 1989 until August of 1995, Parson worked as a registered nurse at UMC-M, which is a hospital. On March 18, 1992, while on duty, Parson stroked and massaged T.M., a patient, in an objectionable, sexual manner. After learning of what happened, Captain James Mungai of the Salvation Army, who was T.M.'s advocate, reported the incident to the head nurse of medical surgical services, who relayed the information to Susan Jamar ("Jamar"). Deposition of Susan C. Jamar of 6/16/97 at 35, 46, Affidavit of William Mavity, Ex. A. As the Patient Care Manager, Jamar was Parson's supervisor. UMC-M investigated the patient complaint, but ultimately decided not to report the incident to either the police or to a social service agency, and elected not to discipline Parson. Deposition of John E. Berland at 22-29, Mavity Aff., Ex. D.

Over the next two years, Parson sexually assaulted several female UMC-M employees, and one female Medical Center patient. Several of these incidents, which involved unwelcome groping, massaging, and fondling of the employees, and the patient, were reported to UMC-M, and to Jamar. Jamar Depo. of 6/16/27, Exs. 8-11, 13-28, 30; Mavity Aff., Exs. G and H; Affidavit of Sally Rikala, Mavity Aff., Ex. P. As a result, in August of 1995, UMC-M forced Parson to resign.

Parson's resignation was effected pursuant to an agreement between himself, UMC-M, and the Minnesota Nurses Association, which was Parson's labor union. The Resignation Agreement recites that, because of the numerous accusations of sexual harassment and other misconduct, UMC-M believed that his termination was warranted, while Parson and his union believed that a discharge was "not necessarily warranted in these circumstances." Resignation Agreement, Affidavit of Joseph Roby, Jr., Ex. G. Under the terms of the Agreement, Parson voluntarily resigned, and he and his union agreed not to file any labor contract grievance relating to his employment at UMC-M. The Agreement also contained a confidentiality provision, which stated as follows:

All parties agree to keep the matter confidential. Unless compelled to do so by subpoena or other lawful authority, no party shall discuss the facts of the matter with anyone, including other employers, not a party to this agreement. Notwithstanding the generality of this confidentiality provision, the Medical Center may discuss the facts of the matter with managers and with its attorney; Mr. Parson may discuss the facts of the matter with his spouse; and the Association may discuss the facts of the matter with its officers who have a need to know the facts of the matter, as well as with its attorney.

Resignation Agreement.

Pursuant to the Agreement, UMC-M would provide Parson with a letter of reference, signed by Jean Kovacovich, now Jean Yelle ("Yelle"), who served as UMC-M's Human Resources Manager, which stated as follows:

The purpose of this letter is to verify employment of John C. Parson, R.N. He was employed from June 5, 1989 to August 24, 1995 on the Medical-Surgical Unit. Mr. Parson has not been the subject of any disciplinary action.

Reference Letter of 8/24/95, Mavity Aff., Ex. F.

On the day that Parson left his employment at the Medical Center, Jamar told him that she would give him a "good reference." Jamar Depo. of 8/29/97 at 18, Mavity Aff., Ex. B. Both Jamar and Yelle held a deep concern that Parson's pattern of sexual misconduct would reoccur in his employment in other health care environments. Jamar Depo. of 6/16/97 at 50-51; Yelle Depo. at 73, 79, Mavity Aff., Ex. Q.

B. Leisure Hills' Retention of Parson.

Leisure Hills is a nursing home that shares responsibility over patients with UMC-M. The two facilities are parties to a "transfer agreement," that is designed to optimize the service of the individual patient's needs by allowing nursing home patients to be transferred to UMC-M for hospital care, while hospital patients are sent to Leisure Hills if they are in need of nursing home care. After he left UMC-M, Parson applied to work as a nurse for Leisure Hills.

Parson wrote on his Leisure Hills application that he had previously worked as a nurse for UMC-M. Alice Skaudis ("Skaudis"), who is Leisure Hills' Director of Nursing, interviewed Parson for the position of "Charge Nurse" in Unit 2 of the facility. A Charge Nurse is a registered nurse who is responsible for making clinical rounds with physicians, for overseeing the work of other nurses in the unit, and for making recommendations or giving advice concerning the hiring, disciplining, or the firing of other registered nurses. Deposition of Alice Skaudis at 32-33, Mavity Aff., Ex. C. Among the major duties and responsibilities, which are listed in the job description, are: to direct the day-to-day activities of the Staff Nurses; develop work assignments for Staff Nurses, delegate duties to the Staff Nurses; participate in determining the shift's staffing requirements; prepare employee performance evaluations; and make recommendations to the Director of Nursing concerning the discipline of subordinate employees, including a dismissal or transfer. Charge Nurse Job Description, Miller Aff., Ex. D.

Skaudis had noticed that Parson left his former nursing job in August of 1995, but she testified that she was not concerned by that fact, and did not wonder why he was no longer working at UMC-M. Id. at 36. By the end of the interview, which occurred in the latter part of December of 1995, Skaudis was impressed with Parson's qualifications. Skaudis Depo. at 46, Second Affidavit of Michael M. Fluegel,³ Ex. B. In fact, she told Parson that he would probably be hired, "pending reference checks ***." Id. at 46-47.

On Friday, January 5, 1996, Skaudis telephoned Parson and offered him the job. She asked him if he could start work on the following Monday, which was the eighth of January. Parson accepted the offer. Later in the day, Skaudis telephoned Jamar at UMC-M to find out about Parson's employment history at the hospital. She has testified that she made the reference check after the employment offer and acceptance, because Parson's employment was to begin with a training period, during which he would have probationary status, and could be dismissed without notice, for any reason, and without cause. Skaudis Depo. at 95, 138, Mavity Aff., Ex. C. Skaudis has testified that she did not attempt to contact Jamar, with any contemplation that Parson's job offer could be revoked on account of anything that would be learned from Jamar, but because she wanted to know, from Parson's former supervisor, "what kind of nurse he was, working at the hospital, underneath [Jamar's] supervision," and "how he functioned at the hospital." Id. at 95.

Jamar could not be reached on January 5, but returned Skaudis' call on the following Monday afternoon, after Parson had begun his shift. When asked for an open-ended assessment of Parson, as a nurse, Jamar responded that Parson "was a very good clinical nurse," with "good assessment skills," and had "a good relationship with patients." Id. at 65-66. Jamar also told Parson's new employer that he had...