Cheryl Kaufenberg v. The Winkley Company d/b/a Winkley Orthotics & Prosthetics

Court of Appeals of Minnesota·Decided June 8, 2015·No. A14-1514·Unpublished

Opinion

This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2014).

STATE OF MINNESOTA

IN COURT OF APPEALS

A14-1514

Cheryl Kaufenberg,

Appellant,

vs.

The Winkley Company

d/b/a Winkley Orthotics & Prosthetics, Respondent.

Filed June 8, 2015

Affirmed

Stauber, Judge

Hennepin County District Court File No. 27CV1319733

John A. Fabian, David H. Redden, Fabian May & Anderson, P.L.L.P., Minneapolis, Minnesota (for appellant)

D. Sherwood McKinnis, Lindberg & McKinnis, P.A., Cambridge, Minnesota (for respondent)

Considered and decided by Stauber, Presiding Judge; Bjorkman, Judge; and Rodenberg, Judge.

UNPUBLISHED OPINION

STAUBER, Judge On appeal from the summary-judgment dismissal of her reprisal claim based on alleged sexual harassment in violation of the Minnesota Human Rights Act (MHRA), appellant argues that the district court (1) abused its discretion by denying her motion to

amend her complaint to add a claim of sexual harassment/hostile work environment based on information learned in discovery; (2) erred by granting respondent’s motion for summary judgment on the basis that her claim was too speculative; and (3) abused its discretion by denying her motion to compel the production of identities of potential witnesses. We affirm.

FACTS

Respondent Winkley Company is an orthotics and prosthetics company with several clinical locations in Minnesota and Western Wisconsin. Gregory Gruman is respondent’s president and sole owner. In 2007, Gruman partially retired and no longer took an active role in the day-to-day operations of the company. Instead, Gruman delegated his authority to Terrance Woodman, who signed a ten-year contract to manage the company in 2007.

Appellant Cheryl Kaufenberg began working for respondent in March 2000. In 2002, appellant was assigned to be an administrative assistant for Woodman, who would later become respondent’s general manager. According to appellant, Woodman began to sexually harass her shortly after she became his assistant, and she claims that the harassment continued “well into 2013.” Appellant, however, did not formally report the alleged harassment until 2013.

In May 2012, respondent hired Nanette Cedarblade as office manager. Cedarblade was responsible for supervising the administrative assistants, including appellant. Cedarblade was also responsible for hiring and firing employees.

According to appellant, Cedarblade consistently accused her of having emotional outbursts and “often” told her that she “needed to change [herself] as a person” and have “a better attitude.” One of these alleged outbursts occurred on December 7, 2012. On that day, Cedarblade counseled appellant for having an outburst in the office and issued a warning with respect to her behavior.

On June 26, 2013, Cedarblade overheard appellant loudly complaining to a co-

worker about how she “felt disrespected” at work. When Cedarblade confronted appellant about the outburst, appellant told Cedarblade that “you are disrespecting me as a person,” and “Woodman disrespects me as a person.” Appellant received a two-day suspension with pay for the outburst and was told that the purpose of the suspension was to allow her to think about her behavior and to determine whether she wanted to remain employed with respondent.

When appellant returned to work, she apologized for her behavior, and Cedarblade indicated that if appellant had another outburst she would be terminated. But a few days later, Cedarblade reprimanded appellant for using an e-cigarette at her workstation. Appellant denied that she used the e-cigarette inside the office and instead claimed that she just showed the e-cigarette to a patient. A week later, on July 10, 2013, Cedarblade again confronted appellant, this time about a patient who had complained about her poor telephone demeanor.

Appellant was involved in yet another alleged outburst on July 29, 2013, when it was alleged that she “slammed down [her] phone” after she perceived that a co-worker, Kate Braun, remarked negatively about her. Appellant denied that her conduct

constituted an outburst, but she admitted being upset with Braun. Later that day, appellant had a conversation with another administrative assistant, Sarah Benson, in which appellant expressed her displeasure with the fact that Benson, rather than appellant, was training a new employee. Although appellant claimed that the conversation was cordial, Benson reported to Cedarblade that appellant accused her of trying to steal her job.

Appellant was reprimanded for her behavior and placed on a 120-day probationary period beginning August 1, 2013. She was also given, and signed, a document entitled “Final[] Warning,” which listed several workplace expectations and stated that a “[f]ailure to follow these expectations will result in immediate termination.” These expectations included “zero tolerance” for “emotional outburst[s] in the office or on company grounds,” and “no negative discussion about the company, management, or other staff members.” Finally, the warning instructed appellant to “share in the daily pulling of the appointment files.”

On August 26, 2013, appellant, through her attorney, sent a letter to respondent accusing Woodman of sexually harassing appellant during the course of her employment, with the most recent event occurring in June 2013. The letter cited several incidents of harassment and claimed that the “severe and pervasive sexual harassment that [appellant] has been subjected to has interfered with the terms and conditions of her employment and made her daily experience at [respondent] both hostile and abusive.” Later that day, appellant’s attorney sent a second letter to respondent proposing her voluntary departure in return for severance pay.

Following the receipt of appellant’s letters, Woodman was placed on leave beginning August 27, 2013, while respondent investigated the allegations. Respondent’s counsel subsequently responded to appellant’s allegations of sexual harassment by letter dated August 30, 2013, which stated that respondent’s investigation of the matter revealed that the allegations were unsubstantiated and could “most generously be described as manufactured.” The letter also stated that any claim of sexual harassment by appellant was protected by the affirmative defense found in the Faragher-Ellerth line of cases.1 The letter further provided that appellant has engaged in numerous “negative behavioral outburst[s]” for which appellant has received multiple warnings and that, based upon the investigation, respondent “has ample authority to unceremoniously terminate [appellant’s] employment.” But the letter stated that respondent would consider a settlement “in exchange for [appellant’s] immediate resignation, full release of all claims, and confidentiality.”

Appellant took vacation from August 30, 2013 through September 9, 2013. When she returned on September 10, an incident occurred between appellant and Benson. Benson then informed Cedarblade that appellant had another emotional outburst in front of two patients who were waiting in the lobby, in which appellant yelled at her and exclaimed that “nobody tells her anything” and that she “never knows anything that’s

1 The Faragher/Ellerth defense set forth in Faragher v. Boca Raton, 524 U.S. 775, 807- 08, 118 S. Ct. 2275, 2293 (1998), and Burlington Indus., Inc. v. Ellerth, 524 U.S. 742, 765, 118 S. Ct. 2257, 2270 (1998), was adopted by the Minnesota Supreme Court in Frieler v. Carlson Marketing Grp., Inc., 751 N.W.2d 558, 568 (Minn. 2008), and is available to employers as an affirmative defense to claims by employees involving hostile work environment harassment by the employee’s supervisors or superiors. Schmitz v. U.S. Steel Corp., 852 N.W.2d 669, 671 n.1 (Minn. 2014).

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