Hoover v. Norwest Private Mortgage Banking

605 N.W.2d 757, 2000 Minn. App. LEXIS 161, 2000 WL 168361
CourtCourt of Appeals of Minnesota
DecidedFebruary 15, 2000
DocketC8-99-1281
StatusPublished
Cited by3 cases

This text of 605 N.W.2d 757 (Hoover v. Norwest Private Mortgage Banking) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoover v. Norwest Private Mortgage Banking, 605 N.W.2d 757, 2000 Minn. App. LEXIS 161, 2000 WL 168361 (Mich. Ct. App. 2000).

Opinion

OPINION

LANSING, Judge.

The district court granted summary judgment against Dianne Hoover’s employment-discharge claims. We affirm summary judgment on her claims for failure to reasonably accommodate disability and for reprisal because the submitted evidence fails to establish legally essential elements. We also affirm summary judgment on Hoover’s negligent-supervision claim because it is preempted by the Minnesota Human Rights Act. The evidence is, however, sufficient to create a genuine issue of material fact on discriminatory discharge, and we reverse and remand on that claim but dismiss one of the three named Norwest defendants because the evidence does not demonstrate that it is a proper party.

FACTS

Dianne Hoover worked for Norwest Funding, Inc., (Norwest) as a private mortgage banker from 1992 to February 1996. Norwest hired Hoover, who had more than 20 years’ banking experience, to work as an originator, handling loans from application to closing. Hoover was a top loan producer and received positive employee evaluations. A 1995 review for compliance with internal policy and federal banking regulations showed that she was among the originators with the fewest compliance problems.

In May 1995, Hoover was diagnosed with fibromyalgia, a chronic-pain illness. Hoover’s symptoms included severe headaches; back, neck, and shoulder pain; exhaustion; and sleep disturbances. She also suffered from depression and a diminished ability to concentrate. Hoover told her supervisor of the diagnosis and gave her a copy of a diagnosis letter that noted Hoover’s need for exercise and stress-reduction practices, such as yoga. The letter did not indicate any need for work accommodations. Through the end of 1995 and into 1996, Hoover’s symptoms became more pronounced, and she required more time to complete her work. She worked increasingly longer hours and stated that she used most of her nonwork time to sleep.

At about the same time, Hoover and other Norwest originators encountered decreasing availability of processors to provide clerical support and oversight for errors and omissions in processing loans. Hoover claims that she was denied the level of processor support provided to other high-producing originators. In meetings in June 1995 and September 1995, Hoover and other originators complained about the lack of processor support. Hoo *761 ver also had several meetings with her supervisor and her team leader to explain the need for more support.

In late 1995, three processors complained of compliance problems in Hoover’s files, and in December her supervisor requested a special audit. The audit revealed compliance problems in many of Hoover’s files. Although the parties dispute whether the problems violated federal banking regulations, the evidence is undisputed that most of the cited practices were improper. In February, her supervisor and a previous supervisor met with Hoover to discuss the problems with her files and later notified Hoover that she was being discharged.

Hoover filed a complaint with the Minnesota Department of Human Rights in 1997, and the department found probable cause. Hoover then brought this suit against three Norwest entities. After preliminary discovery, Norwest successfully moved for summary judgment. Hoover disputes the entry of summary judgment on her claims for discriminatory discharge, failure to reasonably accommodate her disability, reprisal, and negligent supervision. Norwest Corporation, one of the three Norwest entities, disputes, by notice of review, that it is a proper defendant.

ISSUES

I. Has Hoover raised a genuine issue of material fact on whether her discharge from Norwest was motivated by intentional discrimination?

II. Has Hoover raised a genuine issue of material fact on whether Norwest failed to provide a reasonable accommodation for her disability?

III. Has Hoover raised a genuine issue of material fact on whether Norwest engaged in reprisal?

IV. Does the Minnesota Human Rights Act preempt Hoover’s negligent-supervision claim?

V. Is Norwest Corporation a proper defendant?

ANALYSIS

On appeal from summary judgment, we determine whether the case raises genuine issues of material fact and whether the district court erred in its application of the law. Cummings v. Koehnen, 568 N.W.2d 418, 420 (Minn.1997); see Minn. R. Civ. P. 56.03 (stating district court standard for summary judgment). In assessing the evidence, we take the view most favorable to the party against whom judgment was granted. Fabio v. Bellomo, 504 N.W.2d 758, 761 (Minn.1993). But if the nonmoving party fails to raise a material issue of fact on any element essential to establishing its case, summary judgment is appropriate. Lubbers v. Anderson, 539 N.W.2d 398, 401 (Minn.1995).

I

The Minnesota Human Rights Act (MHRA) prohibits discharge of an employee because of that employee’s disability. MinmStat. § 363.03, subd. l(2)(b) (1998). When there is no direct evidence of discrimination, we analyze disability-discrimination claims using the shifting-burdens analysis of McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). Sigurdson v. Carl Bolander & Sons, Co., 532 N.W.2d 225, 228 (Minn.1995). Under this analysis, the plaintiff first has the burden to establish a prima facie case of discrimination; if established, the burden of production shifts to the employer to rebut the prima facie case by presenting evidence of a legitimate, nondiscriminatory reason for its acts; and if the presumption is rebutted, plaintiff, to meet her ultimate burden, must show that the reason or justification stated by the employer is actually a pretext for discrimination. Hasnudeen v. *762 Onan Corp., 552 N.W.2d 555, 556 (Minn.1996). The plaintiff may sustain this burden “ ‘either directly by persuading the court that a discriminatory reason likely motivated the employer or indirectly by showing that the employer’s proffered explanation is unworthy of credence.’ ” Sigurdson v. Isanti County, 386 N.W.2d 715, 720 (Minn.1986) (citing Texas Dep’t of Community Affairs v. Burdine, 450 U.S. 248, 256, 101 S.Ct. 1089, 1095, 67 L.Ed.2d 207 (1981)); see also St. Mary’s Honor Ctr. v. Hicks, 509 U.S. 502, 113 S.Ct. 2742, 125 L.Ed.2d 407 (1993) (prima facie case coupled with evidence of pretext allows factfinder to infer intentional discrimination).

To meet her initial burden of establishing a prima facie case of disability discrimination, Hoover must show that she is a disabled person, that she was otherwise qualified, that she was discharged, and that she was replaced or the work was reassigned to a nondisabled person. Hubbard v. United Press Int'l, Inc., 330 N.W.2d 428, 442 (Minn.1983).

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605 N.W.2d 757, 2000 Minn. App. LEXIS 161, 2000 WL 168361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoover-v-norwest-private-mortgage-banking-minnctapp-2000.