Dukowitz v. Hannon Security Services

841 N.W.2d 147, 37 I.E.R. Cas. (BNA) 678, 2014 WL 23644, 2014 Minn. LEXIS 1, 97 Empl. Prac. Dec. (CCH) 44,984
CourtSupreme Court of Minnesota
DecidedJanuary 2, 2014
DocketNo. A11-1481
StatusPublished
Cited by45 cases

This text of 841 N.W.2d 147 (Dukowitz v. Hannon Security Services) 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
Dukowitz v. Hannon Security Services, 841 N.W.2d 147, 37 I.E.R. Cas. (BNA) 678, 2014 WL 23644, 2014 Minn. LEXIS 1, 97 Empl. Prac. Dec. (CCH) 44,984 (Mich. 2014).

Opinions

OPINION

STRAS, Justice.

Respondent Hannon Security Services (“Hannon”) terminated appellant Jane Kay Dukowitz from her position as a security officer. In this appeal, Dukowitz presents two legal questions for our consideration. The first question is whether the public-policy exception to the employment-at-will rule applies to a termination resulting from an employee’s application for unemployment benefits. The second question is whether a district court has discretion to consider a non-prevailing party’s status as an indigent litigant when it awards costs and disbursements to a prevailing party in a civil action. Because we conclude that the public-policy exception to the employment-at-will rule does not apply in this case and that Minn.Stat. § 549.04, subd. 1 (2012), does not permit a court to consider a non-prevailing party’s indigent status, we affirm.

I.

Hannon hired Dukowitz as a security officer in November 2005 and assigned her to an evening position. In July 2008, Du-[149]*149kowitz learned about a temporary daytime position that would be available for the holiday season. Dukowitz’s supervisor offered her the position, but required Du-kowitz to sign a document acknowledging the possibility that the position would be unavailable beyond the holiday season. Dukowitz switched to the daytime position in September 2008. In early December, Dukowitz’s supervisor informed her that the position would no longer be available after the end of December and that Han-non did not have any hours available for Dukowitz in the ensuing months. Dukow-itz claims that she told her direct supervisor that she would need to apply for unemployment benefits “to make ends meet.” According to Dukowitz, her supervisor then turned to another supervisor and asked, “should we term her?” — in other words, terminate her employment. Du-kowitz claims that she begged her supervisor not to terminate her and asked that Hannon place her on a “floating shift” so that she could work when shifts became available.

Dukowitz applied for unemployment benefits on December 21, 2008. Two days later, Dukowitz’s daytime position became unavailable. Hannon ultimately terminated Dukowitz’s employment on March 13, 2009. The parties dispute the reasons for Dukowitz’s termination. Hannon asserts that Dukowitz was terminated because of her “poor work [for a client], her expressed unwillingness to work weekends or nights and the lack of Hannon opportunities for business in the St. Cloud area.” Dukowitz contends that she received positive performance reviews and that she never refused to work weekends or nights.

In June 2010, Dukowitz commenced this action against Hannon for wrongful discharge. Dukowitz alleged in her complaint that Hannon violated the public policy of the State of Minnesota when it terminated her employment in retaliation for her application for unemployment benefits. The district court granted Han-non’s motion for summary judgment based in part on its conclusion that “common law wrongful termination claims [are limited] to scenarios in which an employee was fired for his or her refusal to violate the law.”1 The court also awarded Han-non $1,361.35 in costs and disbursements, rejecting Dukowitz’s argument that the court should not award Hannon costs and disbursements because of her indigent status.

The court of appeals affirmed. Dukowitz v. Hannon Sec. Servs., 815 N.W.2d 848, 855 (Minn.App.2012). The court acknowledged that “an employer may be liable for wrongful discharge if it terminates an employment relationship because of the employee’s refusal to violate the law,” but concluded that Dukowitz’s claim did “not come within this narrow exception” to the employment-at-will rule. Id. at 851. Instead, the court observed that allowing Dukowitz to proceed on her theory would [150]*150require it “to recognize a new cause of action.” Id. The court of appeals also concluded that the district court “correctly determined that it did not have discretion to deny Hannon’s application for costs and disbursements.” Id. at 855. We granted Dukowitz’s petition for further review.2

II.

The first question presented in this case is whether the public-policy exception to the employment-at-will rule applies to a termination resulting from an employee’s application for unemployment benefits. We review de novo a district court’s grant of summary judgment. Savela v. City of Duluth, 806 N.W.2d 793, 796 (Minn.2011). We view the evidence in the light most favorable to the party against whom summary judgment was granted to determine whether there are any genuine issues of material fact and whether the district court correctly applied the law. Boarder v. State, 806 N.W.2d 766, 770 (Minn.2011).

The dispute in this case centers on the scope of the public-policy exception to the employment-at-will rule. Dukowitz argues that our decisions in Phipps v. Clark Oil & Refining Corp., 408 N.W.2d 569 (Minn.1987), and Nelson v. Productive Alternatives, Inc., 715 N.W.2d 452 (Minn.2006), establish a cause of action for wrongful discharge if an employee can identify a clear mandate of public policy that the employer violated when it discharged the employee. Dukowitz alternatively asserts that, even if the scope of the public-policy exception is more limited, we should now recognize a cause of action for wrongful discharge under the circumstances presented by this case. We address each of Dukowitz’s arguments in turn.

A.

In Minnesota, the employer-employee relationship is generally at-will, which means that an employer may discharge an employee for “any reason or no reason” and that an employee is “under no obligation to remain on the job.” Pine River State Bank v. Mettille, 333 N.W.2d 622, 627 (Minn.1983). In Phipps, we recognized a narrow public-policy exception to the employment-at-will rule. See 408 N.W.2d at 571. We held that “[a]n employee may bring an action for wrongful discharge if that employee is discharged for refusing to participate in an activity that the employee, in good faith, believes violates any state or federal law or rule or regulation adopted pursuant to law.” Id. We thus limited the cause of action in Phipps to discharges resulting from an employee’s good-faith refusal to violate the law.

Dukowitz interprets Phipps more broadly, arguing that the ease implicitly recognized an exception to the employment-at-will rule for any violation of a clear mandate of the state’s public policy. Dukow-itz’s interpretation, however, is inconsistent with the reasoning of Phipps. In that case, we did not reach “the policy question of whether or not Minnesota should join the three-fifths of the states that now recognize, to some extent, a cause of action for wrongful discharge.” Phipps, 408 N.W.2d at 571; see also Anderson-Johanningmeier v. Mid-Minn. Women’s Ctr., Inc., 637 N.W.2d 270, 273 (Minn.2002) [151]*151(noting that Phipps “did not resolve whether Minnesota should join the majority of states that had recognized a cause of action for wrongful discharge”).

Nelson, the other case relied upon by Dukowitz, was similarly limited in scope. In Nelson, we considered the effect of Minnesota’s Whistleblower Act, Minn.Stat.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Roula Mitchell v. Target Corporation
Court of Appeals of Minnesota, 2024
State v. Ernest J. Muir, Jr.
Supreme Court of Vermont, 2023
Cent. Hous. Assocs., LP v. Olson
929 N.W.2d 398 (Supreme Court of Minnesota, 2019)
Daniel v. City of Minneapolis
923 N.W.2d 637 (Supreme Court of Minnesota, 2019)
Hall v. St. Jude Med. S.C., Inc.
326 F. Supp. 3d 770 (D. Maine, 2018)
Burt v. Rackner, Inc.
902 N.W.2d 448 (Supreme Court of Minnesota, 2017)
Staffing Specifix, Inc. v. TempWorks Management Services, Inc.
896 N.W.2d 115 (Court of Appeals of Minnesota, 2017)
Dustin Ray George Dittmar v. George Andrew Karels
Court of Appeals of Minnesota, 2016
Anchor Bank, N. A. v. Matthew L. Gulbransen
Court of Appeals of Minnesota, 2016
Yvette Ford v. Minneapolis Public Schools
874 N.W.2d 231 (Supreme Court of Minnesota, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
841 N.W.2d 147, 37 I.E.R. Cas. (BNA) 678, 2014 WL 23644, 2014 Minn. LEXIS 1, 97 Empl. Prac. Dec. (CCH) 44,984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dukowitz-v-hannon-security-services-minn-2014.