Anderson v. Hunter, Keith, Marshall & Co.

417 N.W.2d 619, 1988 Minn. LEXIS 2, 46 Empl. Prac. Dec. (CCH) 37,993, 45 Fair Empl. Prac. Cas. (BNA) 1366, 1988 WL 273
CourtSupreme Court of Minnesota
DecidedJanuary 8, 1988
DocketC1-86-1039, C8-86-1619
StatusPublished
Cited by120 cases

This text of 417 N.W.2d 619 (Anderson v. Hunter, Keith, Marshall & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Hunter, Keith, Marshall & Co., 417 N.W.2d 619, 1988 Minn. LEXIS 2, 46 Empl. Prac. Dec. (CCH) 37,993, 45 Fair Empl. Prac. Cas. (BNA) 1366, 1988 WL 273 (Mich. 1988).

Opinion

OPINION

KELLEY, Justice.

In bringing this action claiming a wrongful discharge against her former employer *621 Hunter, Keith, Marshall & Co., Inc. (HKM), LaVonne Anderson (Anderson) alleges that the termination of her employment with the company was the result of its discrimination against her on the basis of her sex, marital status, and pregnancy in violation of the Minnesota Human Rights Act (Minn. Stat. § 363.03, subd. l(2)(b), (2)(c), (5) (1986)). The trial court found unlawful discrimination, awarded damages, awarded Anderson her attorney fees, and enjoined HKM from discriminating against employees because of pregnancy. The court of appeals affirmed. Anderson v. Hunter, Keith, Marshall & Co., 401 N.W.2d 75 (Minn.App.1987). We affirm the rulings of unlawful discrimination, damages and the injunction. We reverse the attorney fees award.

HKM is a small investment banking corporation established in 1975. The principal officers active in the business were Hunter and Keith. In 1978 the firm hired LaVonne Anderson as a secretary. Prior to her employment with HKM she had approximately six years secretarial experience as a legal secretary in a large Minneapolis law firm. During her employment interview with HKM, in response to questions, Anderson indicated that she was married but that she and her husband had no immediate plans to have children. Anderson served as secretary to both Hunter and Keith, doing stenographic work, making their personal and business travel arrangements, filing, performing receptionist duties, invoicing, ordering supplies, handling claims and checking accounts, and performing other general services of a similar nature. In both 1979 and 1980, following year-end performance reviews, she received a 10 percent salary increase as well as a $1,000 bonus, although in 1980 her employers commenced to voice some dissatisfaction with her failure to organize a satisfactory filing system.

From 1978 to 1981 the firm quadrupled the number of its business transactions. It hired another investment banker during that time. Anderson also served as his secretary. A bookkeeper who had been hired in 1979, by the end of 1981 was assuming some of Anderson’s “minor” duties.

During Anderson’s 1981 performance review, additional complaints concerning her work were beginning to surface. Her employers expressed criticism of her failure to develop a satisfactory filing system, and complained about a noted change in her attitude, about her typing', invoicing, and inefficient handling of travel arrangements. Despite these expressed manifestations of dissatisfaction with her work performance, and notwithstanding one of her employers then wished to fire her, Anderson was nonetheless awarded a 10 percent salary increase and a $1,000 bonus in that year also. The two principal corporate officers active in the business, Hunter and Keith, at trial maintained she was retained and given the bonus and raise in order to keep her from becoming more hostile in attitude, and also to help her at a time of personal financial difficulty attributable to her husband’s then unemployment.

Because she was not satisfied with the 1981 year end bonus and salary increase, early in January 1982 Anderson again sought an interview and met with Hunter and Keith. At that meeting she presented to them a job description which she had prepared, and requested increased remuneration. Hunter and Keith rejected the request, they claim, because they felt it was unmerited in the light of the shortcomings they perceived in her job performance and which they had discussed with her shortly before. After this request was denied, her employers asserted that Anderson seemed to lose all interest in her job. To some extent, at least, that conclusion was corroborated by another office employee at the trial. Also, the record contains evidence that on occasion Anderson had delayed in billing invoices, creating potential problems with the Securities and Exchange Commission which could cost the firm money. Shortly after the January meeting, management had learned that respondent was converting to her own use Northwest Orient Airlines “Frequent Flyer” flight coupons earned by HKM. Even though Anderson was told that only the directors *622 could assign those coupons, she ignored the admonition and assigned some of HKM’s flight coupons to her relatives.

At the trial HKM claimed that it had held a corporate board of directors meeting early in February 1982 at Steamboat Springs, Colorado. They claim that at this meeting Anderson’s deteriorating work performance was discussed, and that a decision was reached to fire her. No reference to that decision appears in corporate minutes, and, in any event, she was not then terminated.

Approximately a month later Anderson informed Keith that she was pregnant, that she intended to take a two or three-month leave of absence, and that thereafter she intended to return to work. HKM had no written policy governing leaves of absence. Keith informed Anderson it would be inconvenient to have her gone from the office for such an extended period, and repeated that or similar comments to another office employee.

From then on, until Anderson’s employment was finally terminated, the parties have divergent recollections of events. HKM claims, as indicated, that prior to Anderson’s announcement the decision had been made at the Steamboat Springs meeting to replace Anderson. After learning of her pregnancy, Keith and Hunter contend they determined not to immediately fire her, but rather to let her remain until the date she proposed to start her maternity leave, at which time she would be terminated, thus allowing her to “save face” by leaving the impression that the termination had been voluntary on her part in order to be with her family. Neither Hunter nor Keith informed Anderson of this decision because they felt that to do so would increase her hostility to an even more unbearable level. They likewise claim that to spare her feelings, a story was devised that Anderson wanted to permanently resign upon commencement of her maternity leave in order to be with her family. Pursuant to this scheme, replacement applicants were told Anderson would not be returning and that employment would be permanent. Finally, in mid-June Anderson was told she was being fired because her work performance had not improved since her last evaluation.

Anderson claims that when she informed Keith of her pregnancy, she was told to find a temporary replacement to work during her leave. Notwithstanding, she claims that at least one applicant, who was ultimately hired as a permanent replacement, was secretly interviewed away from the business premises in order to conceal from Anderson that a permanent replacement was being sought instead of a temporary one. Ultimately she left the employment at the end of July. Her successor began immediately. The replacement testified that when she commenced work the office was “in chaos.”

These conflicting stories give rise to the opposing contentions of the parties. Anderson claims, of course, that her firing was the direct result of discrimination based on pregnancy status.

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417 N.W.2d 619, 1988 Minn. LEXIS 2, 46 Empl. Prac. Dec. (CCH) 37,993, 45 Fair Empl. Prac. Cas. (BNA) 1366, 1988 WL 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-hunter-keith-marshall-co-minn-1988.