Bucko v. First Minnesota Savings Bank, F.S.B.

452 N.W.2d 244, 1990 WL 19172
CourtCourt of Appeals of Minnesota
DecidedApril 25, 1990
DocketC8-89-1344
StatusPublished
Cited by5 cases

This text of 452 N.W.2d 244 (Bucko v. First Minnesota Savings Bank, F.S.B.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bucko v. First Minnesota Savings Bank, F.S.B., 452 N.W.2d 244, 1990 WL 19172 (Mich. Ct. App. 1990).

Opinion

OPINION

SHORT, Judge.

In an action brought under Minn.Stat. § 181.75, subd. 4 (1988) (authorizing a private cause of action against an employer who requests a polygraph test), First Minnesota Savings Bank (bank) appeals from a judgment entered following a jury verdict. The bank argues on appeal (a) the evidence was insufficient to award punitive damages to any of the respondents, (b) respondent Jodi Lynn Crace was not entitled to punitive damages without an accompanying award of compensatory damages, (c) the Crace claim was improperly consolidated with the claims of respondents Terrence Jaskowiak and Robert Bucko; and (d) the award of attorney fees and costs was contrary to Minn.R.Civ.P. 68. Respondents challenge only the trial court’s order granting less than requested attorney fees and other expenses.

We reverse the awards of punitive damages to respondents Jaskowiak and Bucko, and affirm the trial court in all other respects.

FACTS

The solicitation of polygraph testing by employers has been illegal in Minnesota since 1976. The bank began using polygraph testing in August of 1980. The first instance of solicitation occurred during an investigation into the loss of $1,500.00 at a branch office. Robert Cornell, the vice president in charge of security, asked several employees to take polygraph tests. One employee who took the test failed and was fired. Testimony conflicted as to whether the test result was the sole reason for his firing. An unemployment compensation appeals tribunal determined the evidence of the employee’s misconduct was insufficient to deny him benefits. The tribunal chairman commented that polygraph tests are useful employment tools, but are inadmissible in court. The chairman did not mention that soliciting polygraph tests was illegal in the employment context.

The tests were administered by Charles Yeschke, a professional polygraph examiner, who was not a bank employee. 1 Yeschke was aware of Minn.Stat. § 181,75 when he administered the test. However, he testified that he never informed the bank of the existence of Minn.Stat. § 181.75. Further, he denied knowing the bank had solicited the polygraph tests and, in fact, obtained written releases from all the employees, including the respondents, acknowledging they were taking the test voluntarily and at their request.

Cornell testified that although he was in charge of security, he had no training in that area, and was primarily a branch manager. He testified he did not learn of the polygraph statute until October of 1984.

*247 The bank’s in-house lawyer, David Nelson, testified he too did not learn of the polygraph statute until October of 1984, when outside counsel informed him of it. Nelson’s duties and expertise were primarily in the areas of commercial and regulatory law. Nelson attended the unemployment compensation hearing in November of 1980, at which the chairman spoke approvingly of polygraph tests. Nelson testified he had researched the admissibility of evidence of polygraph testing, but had not discovered the statute criminalizing employer solicitation of polygraph tests.

The next polygraph testing incident at the bank was during an investigation of $3,000.00 missing from a bank warehouse vending machine. Seven employees, including respondents Bucko and Jaskowiak, were asked to take the test. Bucko had been employed at the bank for less than a year. Before taking the test, he admitted to stealing $32.00 from the machine and using a company credit card for personal expenses. Bucko took and failed the polygraph test on December 10, 1980. The bank fired him on December 13.

Jaskowiak had been employed at the bank for three months at the time of the polygraph request, and he had no duties related to the vending machine. Nevertheless, the bank asked him to take a polygraph test. He did so on December 11, passed the test, and remained employed at the bank for two more years.

In January of 1981, the bank hired Allen Lavanger as its security officer, to serve under the supervision of Cornell. Lavan-ger had first-hand knowledge of the polygraph statute, but continued to use polygraph tests during his investigations. La-vanger testified he advised employees they were not required to take the test. He also said his practice was to ask the employees whether they would take a polygraph test if law enforcement officials asked them to do so.

In February of 1982, $200.00 disappeared from a teller area at a bank branch. Respondent Crace testified' a bank employee investigating the loss asked her. if she would take a polygraph test. She said she would, but was never asked to do so.

Lavanger testified he asked Grace to take the test, but had done so in the manner described above. Testimony conflicted as to whether Crace was adversely affected by the bank’s conduct. She did not leave the bank’s employment until September of 1982. Evidence was introduced showing that the bank continued to request polygraph examinations of employees until October of 1984, when a former employee sued the bank for violating the polygraph statute. The case was referred to outside counsel, who informed the bank of the polygraph statute. The bank stopped requesting polygraph exams at that point.

The bank offered each plaintiff $5,000.00 to settle their claims pursuant to Minn.R. Civ.P. 68, but each plaintiff declined. Before trial, the trial court granted plaintiffs’ motion to consolidate the three claims. The jury awarded $800.00 in general damages to respondent Bucko, $3,500.00 in general damages to respondent Jaskowiak, and no general damages to respondent Crace. The jury awarded $33,333.33 in punitive damages to each of the respondents. The trial court entered judgment accordingly. The trial court also determined that respondents jointly incurred $30,000.00 in attorney fees, $6,500.00 in law clerk and paralegal fees, and $5,314.17 in expenses. The trial court entered judgment for these amounts against appellant, to be divided equally among the respondents.

ISSUES

I. Was the evidence sufficient to support the punitive damages awards against the bank?
II. Are punitive damages available under Minn.Stat. § 181.75, subd. 4 (1988) without actual damages?
III. Did the trial court abuse its discretion in consolidating claims for trial?
IV. Did the trial court abuse its discretion in awarding attorney fees to respondents?
*248 V. Did the trial court abuse its discretion as to the amount of attorney fees it awarded?
VI. Are respondents entitled to attorney fees incurred in this appeal?

ANALYSIS

I.

Minnesota law has prohibited employers from requesting or requiring their employees to take polygraph tests since 1973. See 1973 Minn.Laws ch. 667, § 1. A 1976 revision of the polygraph statute authorized a private cause of action against employers who violate the polygraph law. See 1976 Minn.Laws ch. 256, § 1. The law provides in relevant part:

Subdivision 1. Prohibition, penalty.

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Related

Bucko v. First Minnesota Savings Bank
471 N.W.2d 95 (Supreme Court of Minnesota, 1991)
Homer v. Guzulaitis
567 N.E.2d 153 (Indiana Court of Appeals, 1991)
Piekarski v. Home Owners Savings Bank, F.S.B.
755 F. Supp. 859 (D. Minnesota, 1991)

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Bluebook (online)
452 N.W.2d 244, 1990 WL 19172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bucko-v-first-minnesota-savings-bank-fsb-minnctapp-1990.