Hoover v. NORWEST PRIVATE MORTG. BANKING

• Decision Date: 15 February 2000
• Docket Number: No. C8-99-1281.,C8-99-1281.
• Citation: 605 N.W.2d 757
• Parties: Dianne HOOVER, Appellant, v. NORWEST PRIVATE MORTGAGE BANKING, A DIVISION OF NORWEST FUNDING, INC., et al., Respondents.
• Court: Minnesota Court of Appeals

605 N.W.2d 757

Dianne HOOVER, Appellant, v. NORWEST PRIVATE MORTGAGE BANKING, A DIVISION OF NORWEST FUNDING, INC., et al., Respondents.

No. C8-99-1281.

Court of Appeals of Minnesota.

February 15, 2000.

David W. Larson, Hessian & McKasy, P.A., Minneapolis, for appellant.

Barbara J. D'Aquila, Patrick R. Martin, Flynn & Gaskins, L.L.P., Minneapolis, for respondents.

Considered and decided by LANSING, Presiding Judge, WILLIS, Judge, and HALBROOKS, Judge.

OPINION

LANSING, Judge.

The district court granted summary judgment against Dianne Hoover's employment-discharge claims. We affirm summary judgment on her claims for failure to reasonably accommodate disability and for reprisal because the submitted evidence fails to establish legally essential elements. We also affirm summary judgment on Hoover's negligent-supervision claim because it is preempted by the Minnesota Human Rights Act. The evidence is, however, sufficient to create a genuine issue of material fact on discriminatory discharge, and we reverse and remand on that claim but dismiss one of the three named Norwest defendants because the evidence does not demonstrate that it is a proper party.

FACTS

Dianne Hoover worked for Norwest Funding, Inc., (Norwest) as a private mortgage banker from 1992 to February 1996. Norwest hired Hoover, who had more than 20 years' banking experience, to work as an originator, handling loans from application to closing. Hoover was a top loan producer and received positive employee evaluations. A 1995 review for compliance with internal policy and federal banking regulations showed that she was among the originators with the fewest compliance problems.

In May 1995, Hoover was diagnosed with fibromyalgia, a chronic-pain illness. Hoover's symptoms included severe headaches; back, neck, and shoulder pain; exhaustion; and sleep disturbances. She also suffered from depression and a diminished ability to concentrate. Hoover told her supervisor of the diagnosis and gave her a copy of a diagnosis letter that noted Hoover's need for exercise and stress-reduction practices, such as yoga. The letter did not indicate any need for work accommodations. Through the end of 1995 and into 1996, Hoover's symptoms became more pronounced, and she required more time to complete her work. She worked increasingly longer hours and stated that she used most of her nonwork time to sleep.

At about the same time, Hoover and other Norwest originators encountered decreasing availability of processors to provide clerical support and oversight for errors and omissions in processing loans. Hoover claims that she was denied the level of processor support provided to other high-producing originators. In meetings in June 1995 and September 1995, Hoover and other originators complained about the lack of processor support. Hoover also had several meetings with her supervisor and her team leader to explain the need for more support.

In late 1995, three processors complained of compliance problems in Hoover's files, and in December her supervisor requested a special audit. The audit revealed compliance problems in many of Hoover's files. Although the parties dispute whether the problems violated federal banking regulations, the evidence is undisputed that most of the cited practices were improper. In February, her supervisor and a previous supervisor met with Hoover to discuss the problems with her files and later notified Hoover that she was being discharged.

Hoover filed a complaint with the Minnesota Department of Human Rights in 1997, and the department found probable cause. Hoover then brought this suit against three Norwest entities. After preliminary discovery, Norwest successfully moved for summary judgment. Hoover disputes the entry of summary judgment on her claims for discriminatory discharge, failure to reasonably accommodate her disability, reprisal, and negligent supervision. Norwest Corporation, one of the three Norwest entities, disputes, by notice of review, that it is a proper defendant.

ISSUES

I. Has Hoover raised a genuine issue of material fact on whether her discharge from Norwest was motivated by intentional discrimination?

II. Has Hoover raised a genuine issue of material fact on whether Norwest failed to provide a reasonable accommodation for her disability?

III. Has Hoover raised a genuine issue of material fact on whether Norwest engaged in reprisal?

IV. Does the Minnesota Human Rights Act preempt Hoover's negligent-supervision claim?

V. Is Norwest Corporation a proper defendant?

ANALYSIS

On appeal from summary judgment, we determine whether the case raises genuine issues of material fact and whether the district court erred in its application of the law. Cummings v. Koehnen, 568 N.W.2d 418, 420 (Minn.1997); see Minn. R. Civ. P. 56.03 (stating district court standard for summary judgment). In assessing the evidence, we take the view most favorable to the party against whom judgment was granted. Fabio v. Bellomo, 504 N.W.2d 758, 761 (Minn.1993). But if the nonmoving party fails to raise a material issue of fact on any element essential to establishing its case, summary judgment is appropriate. Lubbers v. Anderson, 539 N.W.2d 398, 401 (Minn. 1995).

I

The Minnesota Human Rights Act (MHRA) prohibits discharge of an employee because of that employee's disability. Minn.Stat. § 363.03, subd. 1(2)(b) (1998). When there is no direct evidence of discrimination, we analyze disability-discrimination claims using the shifting-burdens analysis of McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). Sigurdson v. Carl Bolander & Sons, Co., 532 N.W.2d 225, 228 (Minn.1995). Under this analysis, the plaintiff first has the burden to establish a prima facie case of discrimination; if established, the burden of production shifts to the employer to rebut the prima facie case by presenting evidence of a legitimate, nondiscriminatory reason for its acts; and if the presumption is rebutted, plaintiff, to meet her ultimate burden, must show that the reason or justification stated by the employer is actually a pretext for discrimination. Hasnudeen v. Onan Corp., 552 N.W.2d 555, 556 (Minn. 1996). The plaintiff may sustain this burden "`either directly by persuading the court that a discriminatory reason likely motivated the employer or indirectly by showing that the employer's proffered explanation is unworthy of credence.'" Sigurdson v. Isanti County, 386 N.W.2d 715, 720 (Minn.1986) (citing Texas Dep't of Community Affairs v. Burdine, 450 U.S. 248, 256, 101 S.Ct. 1089, 1095, 67 L.Ed.2d 207 (1981)); see also St. Mary's Honor Ctr. v. Hicks, 509 U.S. 502, 113 S.Ct. 2742, 125 L.Ed.2d 407 (1993)

(prima facie case coupled with evidence of pretext allows factfinder to infer intentional discrimination).

To meet her initial burden of establishing a prima facie case of disability discrimination, Hoover must show that she is a disabled person, that she was otherwise qualified, that she was discharged, and that she was replaced or the work was reassigned to a nondisabled person. Hubbard v. United Press Int'l, Inc., 330 N.W.2d 428, 442 (Minn.1983). Norwest disputes two of the four factors: that Hoover is a disabled person and that she is otherwise qualified to do the job from which she was discharged.

The evidence that Hoover is otherwise qualified is sufficient to survive summary judgment. Hoover's 20 years of experience in the banking industry, coupled with her positive performance evaluations until the time of discharge, provide adequate proof on that factor. Although Norwest disputes Hoover's capacity to perform the responsibilities of an originator, Hoover's evidence at minimum raises a genuine fact issue.

The more difficult question is whether Hoover has raised a triable issue on disability. A person is disabled for purposes of the MHRA if he or she "has a physical, sensory, or mental impairment which materially limits one or more major life activities." Minn.Stat. § 363.01, subd. 13 (1998). Norwest does not specifically dispute that Hoover meets the first part of the disability definition—that fibromyalgia and depression are impairments within the meaning of the MHRA. See 29 C.F.R. § 1630.2(h) (1998) (defining physical or mental impairment); Chamberlain v. McNeil Consumer Prods. Co., No. 95 C 2073, 1998 WL 42271, at *4 (N.D.Ill. Jan. 29, 1998) (fibromyalgia); Pritchard v. Southern Co. Servs., 92 F.3d 1130, 1132 (11th Cir.1996) (depression), cert. denied, 520 U.S. 1274, 117 S.Ct. 2453, 138 L.Ed.2d 211 (1997); see also Hubbard, 330 N.W.2d at 441

(Minnesota courts use principles arising from federal discrimination cases as a guide for interpreting MHRA); Carl Bolander, 532 N.W.2d at 228 (citing federal regulations as guides for determining whether plaintiff is disabled under MHRA). But Norwest disputes that Hoover meets the second part of the disability definition—that Hoover's impairment materially limits one or more major life activity. Minn.Stat. § 363.01, subd. 13.

"A `major life activity' is a basic activity that the average person in the general population can perform with little or no difficulty." Pack v. Kmart Corp., 166 F.3d 1300, 1305 (10th Cir.1999); 29 C.F.R. App. § 1630.2(i) (1998). Hoover asserts that two major life activities are limited by her impairments: work and sleep.

Work is a major life activity within the meaning of the MHRA. Carl Bolander, 532 N.W.2d at 228. To show that her ability to work is materially limited by her impairments, Hoover must show that she is "restricted in [her] ability to perform either a class of jobs or a broad range of jobs in various classes as compared to the average person having comparable training, skills, and abilities." 29 C.F.R. § 1630.2(j)(3)(i) (1998); DePaoli v. Abbott Lab., 140 F.3d 668, 672 (7th Cir.1998); Webb v. Garelick Mfg., 94 F.3d 484, 487 (8th Cir.1996). Hoover asserts that the increased amount of time she had to spend to complete her work and...