State by Cooper v. Mower County Social Services
| Decision Date | 17 January 1989 |
| Docket Number | No. C5-88-1601,C5-88-1601 |
| Citation | 434 N.W.2d 494 |
| Parties | 69 Fair Empl.Prac.Cas. (BNA) 517 STATE of Minnesota, by Stephen W. COOPER, Commissioner, Department of Human Rights, Respondent, v. MOWER COUNTY SOCIAL SERVICES, Relator. |
| Court | Minnesota Court of Appeals |
Syllabus by the Court
1. The administrative law judge's conclusion that the employer illegally discriminated against a job applicant is supported by substantial evidence in the record which shows the applicant was not hired because of her marital status and pregnancy.
2. The administrative law judge did not abuse his discretion by awarding damages for mental anguish or suffering under the Minnesota Human Rights Act because substantial evidence in the record shows sufficiently compelling circumstances to justify the award.
3. The administrative law judge did not abuse his discretion by declining to award prejudgment interest to the party asserting a claim under the Minnesota Human Rights Act.
Hubert H. Humphrey, III, Atty. Gen., Carl M. Warren, Sp. Asst. Atty. Gen., St. Paul, for respondent.
Scott M. Lepak, Steffen & Munstenteiger, P.A., Anoka, for relator.
Dept. of Human Rights, St. Paul, Observer.
Heard, considered and decided by NIERENGARTEN, P.J., and LANSING and FLEMING *, JJ.
The administrative law judge found the county discriminated against a job applicant because the applicant was pregnant and unmarried. The county appeals the findings of discrimination and the damages awarded for mental anguish and suffering. The respondent appeals the denial of its request for prejudgment interest. We affirm.
Doris Hoy worked as a temporary clerical employee for Mower County Social Services Department (county) during the summer of 1983. She also worked as a temporary Clerk Typist I for the county in September 1983 and from August 30, 1984 to December 7, 1984. In mid-October 1983, the county's director of social services, Robert Schulz, wrote a letter to Hoy in which he expressed appreciation for Hoy's work and told Hoy she was an "excellent worker." In January 1984 Hoy's supervisor, Audrey Hallum, wrote a letter of reference for Hoy which indicated Hoy had "potential to be a very qualified confidential clerical worker * * * especially in the area of social service programs."
Hoy told Hallum and Schulz she wanted to apply for a vacant Clerk Typist I position. In mid-November 1984, Hoy found out she was pregnant. After Hoy informed Hallum about the pregnancy, Hallum allegedly stated: "You're not married are you?" Hoy responded that she was not married and said she was living with her boyfriend. Hoy testified that she and Hallum had been on a "friendly basis," but that Hallum's demeanor toward her changed after she revealed her pregnancy. Schulz told Hoy her pregnancy would not affect her chances of being hired and indicated it was illegal discrimination to consider pregnancy.
The Minnesota Merit System sent Schulz a list of seven certified candidates eligible for the Clerk Typist I position. Hoy was ranked at the top of the list because she achieved the highest overall test score. Schulz and Hallum interviewed the seven candidates as well as an individual named Monica Grimm who also was eligible for the position because of her prior experience. Grimm had 13 years of clerical experience, worked in a social services department in Iowa for three years, and was qualified to use several types of office equipment. Grimm was hired for the Clerk Typist I position in January 1985.
Hoy was surprised when she was not offered the job because she received only favorable comments when she worked for the county and was told she was qualified for the job. Hoy continued to seek employment with the county after her rejection and was included in the lists of certified candidates for six permanent Clerk Typist I positions filled by the county from the time of Hoy's rejection in January 1985 to the date of the contested hearing. Hoy was either the highest ranked candidate or near the top in those listings. Hoy also applied for employment elsewhere after her rejection in January 1985. According to Hoy, a prospective employer told Hoy she was not hired in part because the county would not give the employer a reference for Hoy.
Hoy filed a charge of discrimination with the Department of Human Rights in March 1985. Hoy was unemployed in July 1985 when her child was born and applied for medical assistance from the county. Hoy's application was processed and serviced by the county employees with whom Hoy previously had worked. The Department of Human rights issued a complaint in December 1987.
Six county employees testified at the contested case hearing. Each of the six employees testified that Hoy performed her duties well; four of the six employees testified that Hallum commented about Hoy's pregnancy, marital status or living arrangements when Hallum was asked about Hoy and the possibility of hiring Hoy to fill the vacant Clerk Typist I position. None of the four employees ever heard Schulz make any comments about Hoy's marital status or pregnancy or whether Hoy's personal circumstances affected her chances of being hired as a permanent employee.
Hallum testified that Hoy satisfactorily performed her duties as a temporary clerk typist and had presented herself well during the interview. Hallum said she probably did not know Hoy was living with her boyfriend until Hoy told her about the pregnancy and stated she could not recall making any statements about Hoy's marital status or living arrangements, but may have responded to other employees' specific questions. Hallum said she did not make any statements to Schulz about Hoy's pregnancy or marital status either during the interviewing process or during subsequent discussions about the job applicants. Hallum testified that both she and Schulz agreed Grimm was the best candidate for the clerk typist position.
Schulz testified that Grimm was hired because of her prior extensive experience. Schulz acknowledged he talked to Hallum about Hoy's pregnancy or that Hallum had brought it to his attention. However, he testified that he did not consider Hoy's pregnancy and marital status and that neither factor was mentioned during discussions with Hallum about the applicants' merits. Schulz retained ultimate authority for all hiring decisions, but acknowledged he sought out Hallum's input in deciding to hire Grimm because Hallum would supervise the person hired to fill the vacant clerical position.
The administrative law judge found that the county discriminated against Hoy because of her pregnancy and marital status. The judge concluded Hoy's case had been proved by a preponderance of the evidence and "that the legitimate, nondiscriminatory reason for hiring Monica Grimm proffered by the [county] is only a pretext for discrimination." The court also found Hoy suffered mental anguish as a result of the rejection because the rejection caused Hoy to become "frustrated, angry and depressed," and "dashed her hope of providing added income to her family and her dream of eventually being able to send her children to college." The judge also found Hoy's experience in having to ask her former co-workers for welfare was "degrading."
The administrative law judge concluded Hoy was entitled to compensatory damages of $33,914.51 in backpay, plus $1,612.00 for medical expenses which would have been paid by insurance had Hoy been hired. The judge also concluded Hoy was entitled to $2,000 in damages for mental anguish and suffering, and $2,000 in punitive damages. The judge ordered the county to pay the state $1,000 as a civil penalty. The county also was ordered to hire Hoy immediately as a Clerk Typist I and award her retroactive seniority and benefits.
On motion for reconsideration, the administrative law judge concluded Hoy also was entitled to compensatory damages from the date of the hearing through the date of her employment by the county. The judge declined to award Hoy prejudgment interest.
By writ of certiorari the county appeals the finding of discrimination and the award for mental anguish and suffering. Hoy appeals the denial of prejudgment interest.
1. Are the administrative law judge's findings about discrimination supported by substantial evidence in the record?
2. Did the administrative law judge abuse its discretion by awarding damages for mental anguish and suffering?
3. Did the administrative law judge abuse its discretion by declining to award prejudgment interest?
The administrative law judge's decision will be reversed if the findings, inferences, conclusions or decision are arbitrary or capricious, affected by errors of law, or unsupported by substantial evidence in the record. See Minn.Stat. § 14.69 (1986).
Resolving conflicts in testimony and determining the weight accorded testimony and the inferences to be drawn are part of the fact finding process. See State ex rel. McCarthy v. Civil Service Commission of Minneapolis, 277 Minn. 358, 361, 152 N.W.2d 462, 464 (1967). A reviewing court cannot "substitute its judgment concerning facts and inferences to be drawn therefrom." Id. A reviewing court's "only function * * * is to determine whether there is substantial evidence, considering the record as a whole, to sustain the findings of fact." Id.
It is an unfair employment practice for an employer "to discriminate against a person with respect to hiring" or "to refuse to hire or to maintain a system of employment which unreasonably excludes a person seeking employment" because of marital status or pregnancy. See Minn.Stat. §§ 363.03, subd. 1, 363.01, subd. 29 (1986 and Supp.1987).
Minnesota courts analyzing disparate treatment claims under the Minnesota Human Rights Act must apply a three-part analysis established in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). See Sigurdson v. Isanti County, 386 N.W.2d...
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