Hoover v. Norwest Private Mortg. Banking
| Decision Date | 06 September 2001 |
| Docket Number | No. C8-99-1281.,C8-99-1281. |
| Citation | 632 N.W.2d 534 |
| Parties | Dianne HOOVER, Respondent, v. NORWEST PRIVATE MORTGAGE BANKING, a division of Norwest Funding, Inc., et al., Petitioners, Appellants. |
| Court | Minnesota Supreme Court |
Barbara Jean D'Aquila, Patrick R. Martin, Flynn & Gaskins, L.L.P., Minneapolis, for plaintiff.
David W. Larson, Moss & Barnett, Minneapolis, for defendant.
Robert R. Reinhart, Erik T. Nelson, Dorsey & Whitney, L.L.P., Minneapolis, for amicus curiae Minnesota Employment Law Council.
Heard, considered, and decided by the court en banc.
Respondent Dianne Hoover filed suit against appellants Norwest Private Mortgage Banking, a division of Norwest Funding, Inc., Norwest Mortgage, Inc., and Connie McCullough1 (collectively, Norwest) in Hennepin County District Court asserting claims of negligent supervision and breach of contract as well as claims of discriminatory discharge, failure to make reasonable accommodations, and reprisal in violation of the Minnesota Human Rights Act (MHRA). See Minn.Stat. § 363.03, subds. 1(2)(b)-(c), 1(6), 7(1) (2000). The district court granted Norwest's motion for summary judgment on all of Hoover's claims. The court of appeals reversed the district court's decision as to the discriminatory discharge claim, but affirmed the district court's disposition of the other claims. Hoover, 605 N.W.2d at 768. We granted Norwest's petition for review of the court of appeals' decision reinstating Hoover's discriminatory discharge claim. We also granted Hoover's cross-petition challenging the dismissal of her reasonable accommodation and reprisal claims. Because we conclude from the record that this case presents genuine issues of material fact for trial, we affirm the court of appeals as to the discriminatory discharge claim and reverse as to the reasonable accommodation and reprisal claims, and remand to the district court for further proceedings.
Dianne Hoover was hired by Norwest in November 1992 as a private mortgage banker, an at-will position. Private mortgage bankers are commonly referred to as loan originators. Norwest terminated Hoover's employment in February 1996. Throughout her employment at Norwest, with the exception of the performance review conducted the day of her termination, Hoover consistently performed at or above expectations and had no disciplinary problems. In a March 1995 review of loan files for compliance with various internal policies, Hoover tied for the highest rating achieved by the loan originators in her office, while two other loan originators had substantial compliance problems. In 1994, she received the award for best underwriting rating among the loan originators. Her performance was such that in January 1996 Norwest increased her personal lending authority—up to $500,000—and she was awarded a mid-February trip to Florida.
According to Hoover, her troubles at work began in May 1995 when she was diagnosed with fibromyalgia, a condition that caused her to suffer severe headaches, sleeplessness, fatigue, pain in her neck, shoulders, back, and hips, and depression-like symptoms. Her physician prescribed exercise, stress-reduction techniques, and an anti-depressant medication. Hoover stated in her deposition that, from May 1995 until her termination, the symptoms of her fibromyalgia made it difficult for her to remember and to concentrate. She also stated that, while she was able to do her job between May 1995 and her termination, it took her longer and was more difficult because of her memory loss and inability to concentrate. Hoover's coworkers corroborate her statement that she spent extra hours at the office in her attempt to keep up with her work, stating in affidavits that Hoover "worked long hours to complete her work," and "it took [Hoover] extra hours to complete her work." Hoover's medical records do not show that she discussed workplace accommodation measures with her doctors.
A few days after her May 1995 diagnosis, Hoover informed her supervisor, Connie McCullough, that she had been diagnosed with fibromyalgia. Hoover claims in both her deposition and her affidavit that she talked with McCullough at least seven more times about her fibromyalgia, telling McCullough that because of her condition she needed special help to do her job. One of Hoover's coworkers stated in an affidavit that she discussed Hoover's fibromyalgia with McCullough and that McCullough knew that the fibromyalgia was limiting Hoover's ability to work. Hoover also states in both her deposition and affidavit that she told her team leader, Cal Eich, that because of her physical condition she could not handle the volume of loans she had without more loan processing support.2 McCullough acknowledges that Hoover informed her about being diagnosed with fibromyalgia in 1995 and that Hoover made repeated requests for processing support, but claims that Hoover never connected her requests for processor support to her fibromyalgia. Moreover, McCullough asserts that, both before and after Hoover's diagnosis, lack of loan processing support was a problem and source of frustration for all of the loan originators at Norwest Private Mortgage.
In December 1995, McCullough had all of Hoover's files audited for compliance with Norwest policy and federal regulations. The auditor stated that she had never before been asked to perform an audit of this type. According to McCullough, the special audit was prompted by concerns raised by two loan processors and the branch operations supervisor about Hoover's compliance with Norwest's policies and with federal law. The auditor submitted the results of the special audit to McCullough on January 24, 1996, reporting that Hoover's files in many respects did not comply with Norwest policies and perhaps violated federal law.3 The auditor recommended additional training and oversight for Hoover.
A February 7, 1996, memo from Hoover to McCullough, written in anticipation of an upcoming performance review, sets out Hoover's belief that she was "set up to fail" and that without support she could not do her job. That same day, according to Hoover, she told McCullough that she needed loan processing support help, that she could no longer work under the current conditions, that her health was suffering, and that she was going to contact the personnel department to get help. Two days later, McCullough and McCullough's supervisor, Craig McWilliams, met with Hoover to discuss, among other things, what Norwest considered to be possible violations of law found in the special audit of Hoover's files. At that meeting, Hoover mentioned her fibromyalgia and, in answer to McWilliams' query as to what that was, McCullough told him it was "like MS." McWilliams asked Hoover if her fibromyalgia prevented her from doing her job and Hoover answered no. Hoover's employment was terminated later that day. Norwest maintains that Hoover was terminated for legitimate business reasons including "legal compliance concerns."
In her deposition, Hoover admitted that, with a few exceptions, the audit report's factual observations with respect to her loan files were accurate. In her post-deposition affidavit, Hoover clarified her deposition answer, stating that had she been afforded an opportunity to review her files before her dismissal she could have demonstrated to her supervisors that her files were not out of compliance and that her actions were not unlawful or contrary to Norwest policy.4 The auditor admitted in her deposition testimony that she occasionally made mistakes in her audits.
After her termination, Hoover availed herself of Norwest's internal problem-solving process to review her termination. In a February 20, 1996, letter to McWilliams, Hoover specifically tied her past requests for loan processing support to her medical condition, noted that the lack of processing support was overwhelming and made it impossible for her to do her job properly, claimed that her termination was in retaliation for her February 7 letter to McCullough and her continued requests for support, and asked for "reasonable accommodation" for her "disability." McWilliams replied with a letter stating that he had investigated the issues Hoover raised and had determined that Hoover's termination was not discriminatory as it was based on Hoover's legal and regulatory noncompliance. McWilliams also stated that Hoover had the same access to support staff as her peers. Hoover's appeal of McWilliams' decision under the Norwest internal problem-solving process was rejected.
Affidavits from the branch operations supervisor and Hoover's coworkers indicate that Hoover was the only person at Norwest Private Mortgage Banking disciplined for having files out of compliance. Six weeks after Hoover's dismissal, an audit was performed on the files of all loan originators from Hoover's section at Norwest Private Mortgage Banking. The audit indicated that the files of several loan originators had errors similar to those attributed to Hoover's files at the time of her termination. This audit did not result in any loan originators being dismissed or otherwise disciplined for having files that were out of compliance.
In January 1997, Hoover filed a charge against Norwest with the Minnesota Department of Human Rights (MDHR) alleging disability discrimination, failure to provide reasonable accommodation, and retaliatory discharge. The MDHR found probable cause to believe that Norwest engaged in an unfair discriminatory practice and this lawsuit ensued.
On appeal from summary judgment, we must determine whether there are genuine issues of material fact for trial and whether the lower courts erred in their application of the law. Cummings v. Koehnen, 568 N.W.2d 418, 420 (Minn.1997). We consider the evidence in the light most favorable to the nonmoving party. Id.
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