Glass v. IDS Financial Services, Inc.

798 F. Supp. 1411, 1992 U.S. Dist. LEXIS 11577, 1992 WL 184070
CourtDistrict Court, D. Minnesota
DecidedAugust 3, 1992
DocketCiv. Nos. 4-89-76, 4-89-115
StatusPublished
Cited by3 cases

This text of 798 F. Supp. 1411 (Glass v. IDS Financial Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glass v. IDS Financial Services, Inc., 798 F. Supp. 1411, 1992 U.S. Dist. LEXIS 11577, 1992 WL 184070 (mnd 1992).

Opinion

ORDER

DOTY, District Judge.

This matter is before the court on a motion for summary judgment by defendants IDS Financial Services, Inc., IDS Life Insurance Company and IDS Financial Corporation (hereinafter referred to collectively as “IDS”) on the Age Discrimination in Employment Act (“ADEA”)1 claim of plaintiff C. Thomas Turner (“Turner”). Based on a review of the file and record herein, the court denies defendants’ motion for summary judgment.

BACKGROUND

Turner was the division manager of the Minneapolis division of IDS Financial Services, Inc. On February 4, 1987, IDS notified Turner of its intent to terminate his employment as of March 17, 1987. As a result of IDS’s actions, Turner has been a party to two separate lawsuits. On January 8, 1988, Turner filed an individual cause of action in Minnesota state court, asserting claims of intentional infliction of emotional distress, breach of contract, defamation, and age and religious discrimination pursuant to the Minnesota Human Rights Act (“MHRA”), Minn.Stat. §§ 363.-01-15. On February 3, 1989, he filed his consent to participate in the present case, a class action of thirty-two former division managers2 who allege that IDS violated the ADEA by engaging in a pattern or practice of age discrimination.3

[1414]*1414Turner filed his state court action more than 300 days after receiving notice of termination but less than 300 days after its effective date. At that time, the MHRA had a 300-day statute of limitations. Minn. Stat. § 363.06, subd. 3 (1986).4 IDS moved for summary judgment on Turner’s MHRA claims, contending they were time barred because he failed to commence his action within 300 days after receiving notice of termination.5 The state trial court denied the motion, ruling that Turner’s MHRA claims were timely filed because the limitations period did not begin to run until the effective date of his termination. Turner v. IDS Financial Servs., Inc., 471 N.W.2d 105, 106 (Minn.1991). The state trial court subsequently granted IDS’s motion to certify that issue.6

The Minnesota Court of Appeals affirmed the trial court’s decision, determining that the date of discharge rather than the date of notice commences the limitation period. Turner v. IDS Fin. Servs., Inc., 459 N.W.2d 143 (Minn.Ct.App.1990). The Minnesota Supreme Court reversed, holding that in discriminatory discharge cases the MHRA statute of limitations begins to run from the time that the employee receives “unequivocal, unconditional notice of termination.” Turner, 471 N.W.2d at 108. The Minnesota Supreme Court applied its holding to bar Turner’s claim, rejecting his argument that the decision should have only prospective effect. Id.

After the Minnesota Supreme Court’s decision, IDS moved the state trial court to dismiss Turner’s complaint with prejudice. Turner sought to dismiss without prejudice or in the alternative, to amend his state court complaint to assert an individual ADEA claim. Turner also asked the trial court to reconsider the dismissal of his defamation, intentional infliction of emotional distress and punitive damage claims. The trial court denied Turner’s motions, granted IDS’s motion and ordered entry of judgment. On August 8, 1991, the state trial court entered final judgment with prejudice, dismissing Turner’s MHRA claims as untimely.

IDS now moves for summary judgment, contending that Turner is barred from asserting his ADEA claim. Relying on 28 U.S.C. § 1738, IDS reasons that this court must give Turner’s state court decision the same effect that Minnesota courts would, and that Minnesota’s law of claim preclusion would prevent Turner from pursuing any claim, based on either state or federal law, arising out of his termination as division manager. Thus, IDS argues that the court must dismiss Turner’s ADEA claim on the basis of res judicata.

DISCUSSION

The full faith and credit statute provides that decisions of other courts:

shall have the same full faith and credit in every court within the United States and its Territories and Possessions as they have by law or usage in the courts of such state, Territory or Possession from which they are taken.

28 U.S.C. § 1738. Thus,

[a] federal court must give to a state-court judgment the same preclusive effect as would be given that judgment under the law of the State in which the judgment was rendered.

Migra v. Warren City Sch. Dist. Bd. of Educ., 465 U.S. 75, 81, 104 S.Ct. 892, 896, 79 L.Ed.2d 56 (1984). The Eighth Circuit [1415]*1415has determined that § 1738 applies to ADEA cases. Nichols v. City of St. Louis, 837 F.2d 833, 835 (8th Cir.1988). Thus, the court will apply Minnesota’s law of claim preclusion to analyze IDS’s motion. See id.

Minnesota follows the general rules of res judicata and collateral estoppel that are almost universally applicable. See, e.g., National Farmers Union Property & Casualty Co. v. Fisher, 284 F.2d 421, 425 (8th Cir.1960). Minnesota law sets forth three requirements for claim preclusion: (1) the parties must be identical or in privity; (2) there must be a final judgment on the merits; (3) involving the same cause of action. Minneapolis Auto Parts Co. v. City of Minneapolis, 739 F.2d 408, 409 (8th Cir.1984) (applying Minnesota law).

Examining each factor in turn, it is undisputed that Turner was a party to both proceedings, thus the first requirement is met.7 In Nitz v. Nitz, the Minnesota Court of Appeals determined that a dismissal based on statute of limitations grounds constitutes a decision on the merits and thus, where the claims are substantially similar, precludes a second action brought under a different limitation period. 456 N.W.2d 450, 452 (Minn.Ct.App.1990). The Minnesota Supreme Court’s ruling therefore constitutes a decision on the merits of Turner’s MHRA claim.

To apply claim preclusion, the court must thus conclude that Turner's individual MHRA claim is the same or substantially similar to the ADEA claim in the present action. As the Minnesota Court of Appeals has observed, however: “[djetermining unity of claims is not an exact science.” Sunrise Elec., Inc. v. Zachman Homes, 425 N.W.2d 848, 851 (Minn.Ct.App.1988). Minnesota courts have also applied three different tests to evaluate the similarity between two claims for purposes of claim preclusion. Id. (discussing various cases applying the three tests). The court will examine each in turn to determine whether Turner’s claims are the same or substantially similar.

The traditional Minnesota test has been whether the same evidence will sustain both actions.

Id. (citing Amalgamated Meat Cutters & Butcher Workmen v.

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Cite This Page — Counsel Stack

Bluebook (online)
798 F. Supp. 1411, 1992 U.S. Dist. LEXIS 11577, 1992 WL 184070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glass-v-ids-financial-services-inc-mnd-1992.