Heidi Nelson v. Lake Elmo Bank

75 F.4th 932
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 1, 2023
Docket22-2827
StatusPublished
Cited by5 cases

This text of 75 F.4th 932 (Heidi Nelson v. Lake Elmo Bank) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heidi Nelson v. Lake Elmo Bank, 75 F.4th 932 (8th Cir. 2023).

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 22-2827 ___________________________

Heidi Nelson, formerly known as Heidi Martin

Plaintiff - Appellant

v.

Lake Elmo Bank; Olivia Alvarado, Individually and as an employee

Defendants - Appellees ____________

Appeal from United States District Court for the District of Minnesota ____________

Submitted: May 9, 2023 Filed: August 1, 2023 ____________

Before COLLOTON, WOLLMAN, and BENTON, Circuit Judges. ____________

BENTON, Circuit Judge.

Lake Elmo Bank fired Heidi S. Nelson after receiving a report that she sexually harassed another employee. Nelson sued the Bank, claiming her termination was based on sex in violation of the Minnesota Human Rights Act, Minn. Stat. §§ 363A.08, subd. 2(2) and (3). She also sued the Bank and the reporting employee for defamation. On both claims, the district court1 granted summary judgment to the defendants. Nelson appeals. Having jurisdiction under 28 U.S.C. § 1291, this court affirms.

I.

Heidi S. Nelson worked as the Assistant Vice President of Teller Services at the Bank. She supervised Olivia Alvarado, a bank teller. In September 2018, according to Alvarado, Nelson made sexual advances toward her at a local bar. Alvarado reported that Nelson grabbed her breasts; told her “I’d like to take you in the bathroom and f**k you”; and tried to stick her tongue in her mouth and her boyfriend’s mouth. Alvarado later discussed the incident with her mother, stepfather, and boyfriend.

By the Bank’s harassment policy, employees were to promptly report any unlawful sexual harassment to their Group Leader or Supervisor, but “if your Group Leader or Supervisor is participating in the suspected behavior, then you should report it to one of the following individuals . . . Director of Human Resources . . . Human Resources Manager . . . President/CEO.” The Bank reserved the right “to determine whether particular conduct violates any part of this policy . . . . If investigation . . . produces evidence of inappropriate behavior, appropriate disciplinary action will be taken, up to and including, unpaid suspension and/or immediate termination of employment.”

Alvarado reported the incident to Nelson’s supervisor. Both immediately met with the Human Resources Manager. The same day, the HR Manager interviewed Alvarado and removed her from Nelson’s team and into a new position. The next day, the Director of HR and the HR Manager interviewed Nelson. According to them, Nelson said that her behavior at the bar was just “friendly banter” and there

1 The Honorable John R. Tunheim, United States District Judge for the District of Minnesota. -2- “was a history of things like this between her and Olivia and other friends at the Bank.” Six days later, the Bank fired Nelson, concluding her conduct violated its harassment policy. Nelson sued the Bank for discrimination under the MHRA and asserted a defamation claim against the Bank and Alvarado. The district court granted summary judgment to the defendants, dismissing both claims. Nelson appeals.

This court reviews de novo the grant of summary judgment and the district court’s conclusions of law. Torgerson v. City of Rochester, 643 F.3d 1031, 1042 (8th Cir. 2011) (en banc). Summary judgment is proper if “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). To create a genuine dispute of fact, “the mere existence of a scintilla of evidence in support of the plaintiff’s position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252 (1986). On summary judgment, this court views all evidence and reasonable inferences most favorably to the non- moving party. Meier v. St. Louis, 934 F.3d 824, 827 (8th Cir. 2019).

II.

Nelson claims the Bank discriminated against her based on sex during her termination, violating the MHRA.

“Claims under the MHRA, not involving direct evidence of discriminatory animus, are subject to the three-part burden-shifting framework set forth by the Supreme Court in McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973).” Hansen v. Robert Half Int’l, Inc., 813 N.W.2d 906, 918 (Minn. 2012). “Under this framework, a plaintiff must first make out a prima facie case of discrimination.” Id. To establish a prima facie case, Nelson must show that: (1) she is a member of a protected class; (2) she was qualified for her position; (3) she was discharged; and (4) the circumstances give rise to an inference of discrimination. See id.; Lake v. Yellow Transp., Inc., 596 F.3d 871, 873 (8th Cir. 2010). If established, “the burden -3- then shifts to the defendant to provide a legitimate, nondiscriminatory reason for its decision.” Lake, 596 F.3d at 873. If the defendant provides a non-discriminatory reason, the burden shifts back to the plaintiff to show the employer’s proffered explanation was a pretext for discrimination. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 804 (1973).

Because Nelson has not introduced direct evidence of discrimination, her claim is analyzed under the McDonnell Douglas burden-shifting framework. The parties do not dispute that the first three elements of a prima facie discrimination case are met here. Nelson claims the evidence of pretext satisfies the fourth element of a prima case, and also discredits the Bank’s proffered explanation for her termination. See Lake, 596 F.3d at 874 (“Evidence of pretext, normally considered at step three of the McDonnell Douglas analysis, can satisfy the inference-of- discrimination element of the prima facie case.”).

According to the Bank, Nelson was terminated because the report and the investigation provided a reasonable belief that she violated the company’s harassment policy. The Bank has satisfied its burden to provide a legitimate, nondiscriminatory reason for Nelson’s termination. See Johnson v. AT&T Corp., 422 F.3d 756, 762 (8th Cir. 2005) (acknowledging that the employee “does not dispute the fact that an employee’s violation of company policy is a legitimate reason for subsequent termination.”); Sellars v. CRST Expedited, Inc., 13 F.4th 681, 694 (8th Cir. 2021) (“The Plaintiffs do not dispute that CRST offered legitimate non- discriminatory reasons—protecting the complainant’s safety and responding properly to complaints of sexual harassment as required by our hostile work environment precedent—for the removal policy.”). See generally Torgerson, 643 F.3d at 1047 (“The burden to articulate a nondiscriminatory justification is not onerous, and the explanation need not be demonstrated by a preponderance of the evidence.”), quoting Floyd v. State of Mo. Dep’t of Soc. Servs., Div. of Family Servs., 188 F.3d 932, 936 (8th Cir. 1999).

-4- To prevail, Nelson must establish a prima facie case and show that the Bank’s proffered explanation is a pretext for discrimination.

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75 F.4th 932, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heidi-nelson-v-lake-elmo-bank-ca8-2023.