Heimbach v. Riedman Corp.

175 F. Supp. 2d 1167, 12 Am. Disabilities Cas. (BNA) 791, 2001 U.S. Dist. LEXIS 20865, 2001 WL 1491431
District Court, D. Minnesota·Decided July 27, 2001·No. 99-1295 (JRT/RLE)·Published·Cited by 3 cases

Opinion

MEMORANDUM OPINION AND ORDER ON DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

TUNHEIM, District Judge.

Plaintiff Robert Heimbach (“Heimbach”) brings claims against defendant Riedman Corporation (“Riedman”) for breach of contract, unjust enrichment, defamation, intentional infliction of emotional distress, as well as claims for discrimination and retaliation pursuant to the Americans with Disabilities Act and the Minnesota Human Rights Act. The claims arise in an employment context and result from Riedman’s termination of Heimbach as an insurance producer. This case is now before the Court on defendant’s motion for summary judgment on all claims. The Court will grant defendant’s motion as to plaintiffs claims for defamation and intentional infliction of emotional distress. However, because plaintiff has demonstrated that genuine issues of material fact exist on his claims for breach of contract, unjust enrichment, discrimination and retaliation, *1171 the remainder of defendant’s motion for summary judgment is denied.

BACKGROUND

Riedman is an insurance agency with offices located throughout the country. Heimbach was an insurance agent or “producer” for Riedman until his termination in the summer of 1999. Prior to his employment with Riedman, plaintiff ran the Robert H. Heimbach Insurance Agency in Duluth, which he sold to First Bank Systems (“First Bank”) in 1985. 1 After the sale to First Bank, Heimbach continued to manage the office until 1996. In 1996, Riedman purchased the agency from First Bank, along with 10 other agencies throughout Minnesota.

Following Riedman’s purchase of the agency from First Bank in 1996, Heimbach entered into an employment agreement with Riedman. The term of the contract was from March 1, 1996 through February 28, 2001. The agreement guaranteed that Riedman would be paid an annual salary of $49,500 plus a 25% commission on all sales of new commercial lines of insurance. The agreement also gave Heimbach an automobile allowance and other fringe benefits, including eligibility for a year-end bonus. The agreement stated that Heimbach could only be terminated “should [he] willfully breach, habitually neglect or become incapable of carrying out the duties which he is required to perform under the terms of this Agreement.” The agreement also required that Heimbach receive written notice of any termination.

When Riedman purchased the Duluth office from First Bank, Heimbach was the only producer that stayed on in the office and was named manager of the Duluth Branch. He remained the manager and sole producer in the Duluth office from March of 1996 until June of 1998. In early 1998, Riedman acquired another insurance agency in Duluth and merged it with the branch managed by Heimbach. When the offices were merged, Heimbach was removed from his manager position and replaced by Jack Ball (“Ball”), manager of the agency acquired by Riedman in 1998.

In or about June 1998, Heimbach also informed certain members of Riedman management that he had been diagnosed with what doctors believed to be multiple sclerosis. Although Heimbach had been diagnosed with a neurological dysfunction of some kind in 1995, it was not until 1998 that his doctors came to believe that the condition was multiple sclerosis. While Heimbach had experienced some outward symptoms of his condition from at least 1995, Heimbach alleges that in or about 1998 he began to experience noticeably increased manifestations of his medical condition. Heimbach’s symptoms include numbness in his limbs, difficulty walking, spacity in his limbs, balance problems, and bladder and erectile dysfunction . 2 In August 1998, Heimbach visited the Mayo Clinic to receive treatment for his worsening condition and made additional visits to the Mayo Clinic in September 1998. In May 1999, Heimbach informed the Regional Manager of Riedman, Dale Humphreys (“Humphreys”), about his condition and explained that he might need to take some time off in the afternoons if his symptoms became unmanageable. 3 Heimbach contends that between late 1998 and mid-1999 he was substantially limited in his ability to walk, stand, reproduce and control his evacuative functions.

*1172 The parties adamantly dispute the reason why Heimbach was demoted from manager when the two Duluth officers merged and why he was eventually terminated. Defendant contends that Heim-bach’s performance at Riedman since 1996 was sub-par and that his demotion was a result of poor management skills and poor performance. Plaintiff contends that his performance at Riedman was far from deficient and that he, in fact, had been recognized shortly before his termination for outstanding production of new business.

Riedman evaluates the performance of both its individual producers and its branch offices each year. Individual financial performance is measured by the total commissions generated from sale of commercial policies (“book of business”) and commissions generated from sales of new policies. Branch offices are evaluated in five categories: (1) retention; (2) growth; (3) collection days; (4) commissioner per employee; and (5) new business per employee. The offices are then ranked relative to all other Riedman offices throughout the country.

In 1996, Heimbach generated $6,399 in new business commissions and $103,290 in total commissions. In 1997,.he produced $10,647 in new commissions and $117,036 in total commissions, and in 1998 he generated $16,072 in new commissions and $101,672 in total commissions. In the two years that Heimbach managed the Ried-man office, the branch ranked 43, 41, 47, 51, and 51 out of 61 branches in the respective categories outlined above. This performance was not sufficient to qualify Heimbach or the Duluth branch office for a bonus in 1996 or 1997. Riedman maintains that its producers are expected to generate at least $20,000 to $25,000 in new commissions each year and that after a reasonable time in the business should maintain at least a $200,000 book of business. 4 This standard, however, does not seem to be articulated to Riedman’s producers in any formal way.

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Heimbach v. Riedman Corp., 175 F. Supp. 2d 1167, 12 Am. Disabilities Cas. (BNA) 791, 2001 U.S. Dist. LEXIS 20865, 2001 WL 1491431 (mnd 2001).

175 F. Supp. 2d 1167 (Heimbach v. Riedman Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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