Federated Rural Electric Insurance Co. v. Kessler

388 N.W.2d 553, 131 Wis. 2d 189, 1986 Wisc. LEXIS 1890, 40 Empl. Prac. Dec. (CCH) 36,350
CourtWisconsin Supreme Court
DecidedJune 20, 1986
Docket84-552
StatusPublished
Cited by15 cases

This text of 388 N.W.2d 553 (Federated Rural Electric Insurance Co. v. Kessler) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federated Rural Electric Insurance Co. v. Kessler, 388 N.W.2d 553, 131 Wis. 2d 189, 1986 Wisc. LEXIS 1890, 40 Empl. Prac. Dec. (CCH) 36,350 (Wis. 1986).

Opinions

STEINMETZ, J.

The issues in this case are: (1) whether Federated Rural Electric Insurance Company's (Federated) rule prohibiting the romantic association of any employee of one sex with a married employee of the opposite sex impermissibly discriminates on the basis of marital status. The Madison Equal Opportunities Commission concluded that the rule violated Madison's equal opportunities ordinance, and that Federated discharged Kessler "in part" because he violated the rule.

(2) If the employer's rule does impermissibly discriminate on the basis of marital status, then the issue is whether to apply the "in part" test of Muskego-Norway C.S.J.S.D. No. 9 v. W.E.R.B., 35 Wis. 2d 540, 151 N.W.2d 617 (1967), to mixed motive discharges not involving anti-union animus. Also see Employment Relations Dept. v. WERC, 122 Wis. 2d 132, 361 N.W.2d 660 (1985). Federated urges the court to apply a different test to cases not involving antiunion animus, whereby the employer has an opportunity to prove that the employee would have been fired even without the discriminatory motive.

We conclude that Federated's rule does not discriminate on the basis of marital status, and, therefore, Kessler's termination did not violate the Madison equal opportunities ordinance even if the employer was motivated in part by Kessler's violation of the work rule. This decision is in agreement with the decision of the Dane county circuit court, Judge James C. [193]*193Boll. Because our resolution of this issue is dispositive, it is unnecessary to determine whether the "in part" test should be applied to alleged employer discrimination which does not involve antiunion animus.

On February 2,1977, William Kessler filed a complaint with the Madison Equal Opportunities Commission. He alleged that he had been discharged by his employer, Federated, because of his marital status and physical appearance, in violation of sec. 3.23(7)(a), Madison General Ordinances.1 As required by the ordinance, an employee of the commission investigated the complaint.

The investigator issued an initial determination on March 23, 1978, finding probable cause to believe that the ordinance had been violated. Conciliation was waived and the case was set for hearing.

Before the date set for the hearing, Federated filed a complaint for a declaratory judgment in Dane county circuit court alleging that the Madison equal opportunities ordinance was unconstitutional and requesting that the commission be enjoined from holding the hearing on Kessler's claim.

On March 12,1979, Judge P. Charles Jones denied the requested relief, but stayed his decision pending appeal to the court of appeals. Federated appealed Judge Jones' decision to the court of appeals and that court on April 27, 1981, affirmed.

[194]*194The hearing examiner for the commission then held a hearing on the merits of the complaint on November 19,1981. In the meantime, Federated had filed a petition for review of the court of appeals' decision, which this court granted. On March 26,1982, this court affirmed the court of appeals' decision, without opinion, by an equally divided court. (Justice Abrahamson took no part.) See 106 Wis. 2d 767 (1982).

On October 12,1982, the hearing examiner issued recommended findings of fact; conclusions of law determining that Federated violated the ordinance, and a recommended order for relief. Both parties filed written exceptions to the examiner's findings and conclusions. After a review hearing, the commission on March 10, 1983, modified and affirmed the recommended findings and order.

Federated then commenced this action by filing a complaint seeking certiorari review on April 5, 1983, in Dane county circuit court. The Equal Opportunities Commission filed a return on June 9, 1983. Judge Boll issued a decision and order reversing the decision of the commission and remanding the complaint to the commission for issuance of an order consistent with the court's opinion and ordering the commission to pay to Federated its costs of the action.

The commission filed an appeal and on September 10, 1985, the court of appeals, in an unpublished opinion, reversed the judgment of the trial court and reinstated the commission's decision. Federated subsequently filed a petition for review requesting this court to determine whether the "in part" test should be applied to alleged employer discrimination which does not involve antiunion animus. The court of appeals [195]*195held that the "in part" test applied to this case arising under Madison's equal opportunities ordinance.

The parties essentially only disagree as to whether the facts support an inference that Federated was motivated to discharge Kessler because he violated the employer's work rule. The historical facts are largely undisputed. In the late summer of 1975, John Bocko-ven, the president of Federated, contacted an employment agency for help in hiring a new claims manager. Federated is a Madison insurance company which employed about ten people in 1975. The employment agency referred William Kessler as an applicant. Bock-oven interviewed Kessler and also had an industrial psychologist, Dr. John Wrage, interview him.

Bockoven hired Kessler in September, 1975. Bock-oven believed that Kessler was "happily married" when he was hired. Bockoven told Kessler that "two basic ground rules" applied to his employment. Bockoven expected managers to support his decisions and "we have no fooling around with married people in our office."

Sometime in December, 1975, Bockoven learned that Kessler and his wife had separated. He immediately reminded Kessler that "because he would be single or separated from his wife, all the more reason he followed the rules of not fooling around with any married women in the office."

Around October, 1975, Bockoven's secretary, Nancy Farin, separated from her husband. Bockoven was unaware of Farm's separation until some time later; in fact, Farin and her husband attended an office party together in February, 1976. In January or February, 1976, Bockoven noticed that Kessler had lunched with Farin on two consecutive days. He immediately talked to Kessler about his concern, believing Kessler [196]*196was violating the ground rule prohibiting relationships between married coemployees. Kessler denied that any relationship existed with Farin. He said that he and Farin were friends, and that "I assure you that I'll cool it immediately."

In March or April, 1976, Bockoven discharged Farin after Farin failed to follow his instructions to prepare an annual report. At that time, Bockoven learned that Farin and her husband had separated.

In the meantime, the relationship between Kessler and Farin continued and became serious around February, 1976. Ultimately, they both became divorced and the two were married sometime in mid-1977 or thereafter.

Bockoven became concerned in August, 1976, that Kessler was setting reserves too low on open files in order to avoid discussing such files with Bockoven. Bockoven required Kessler to discuss files with reserves set above $10,000. The Wisconsin Insurance Commission prohibits setting reserves too low.

Bockoven then consulted Dr.

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Federated Rural Electric Insurance Co. v. Kessler
388 N.W.2d 553 (Wisconsin Supreme Court, 1986)

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Bluebook (online)
388 N.W.2d 553, 131 Wis. 2d 189, 1986 Wisc. LEXIS 1890, 40 Empl. Prac. Dec. (CCH) 36,350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federated-rural-electric-insurance-co-v-kessler-wis-1986.