Linda Betz v. Rebecca Mathisen, Eric Muller, Kelly Rasmuson and Michael Wilson

CourtSupreme Court of Iowa
DecidedJanuary 9, 2026
Docket23-1794
StatusPublished

This text of Linda Betz v. Rebecca Mathisen, Eric Muller, Kelly Rasmuson and Michael Wilson (Linda Betz v. Rebecca Mathisen, Eric Muller, Kelly Rasmuson and Michael Wilson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Linda Betz v. Rebecca Mathisen, Eric Muller, Kelly Rasmuson and Michael Wilson, (iowa 2026).

Opinion

In the Iowa Supreme Court

No. 23–1794

Submitted November 12, 2025—Filed January 9, 2026

Linda Betz,

Appellant,

vs.

Rebecca Mathisen, Eric Muller, Kelly Rasmuson, and Michael Wilson,

Appellees.

On review from the Iowa Court of Appeals.

Appeal from the Iowa District Court for Polk County, Patrick D. Smith,

judge.

The defendants in a defamation action seek further review of a court of

appeals decision reversing the district court’s order granting the defendants’

motion to dismiss based on the statute of limitations. Decision of Court of

Appeals Vacated; District Court Judgment Affirmed.

Mansfield, J., delivered the opinion of the court, in which all participating

justices joined. Waterman, J., took no part in the consideration or decision of

the case.

Michael J. Carroll (argued) of Carney & Appleby Law Firm, Des Moines, for

appellant.

Dana Hempy (argued), David Bower, Katie Graham, and Haley Hermanson

(until withdrawal), of Nyemaster Goode, P.C., Des Moines, for appellees. 2

Mansfield, Justice.

I. Introduction.

An information security executive who lost her job believed that she had

been discriminated against on the basis of sex, unjustly fired, and defamed. She

brought one lawsuit. Then, after that lawsuit proved unsuccessful, she brought

another lawsuit, naming as before the CEO of the company, but this time a

different set of coworkers. Her second lawsuit asserted only defamation claims.

By the time she filed the second lawsuit, over three years had elapsed since her

employment had been terminated and any of the defamatory statements had

been published.

The defendants sought dismissal of the second lawsuit on various

grounds, including the statute of limitations, claim preclusion, absolute

privilege, and qualified privilege. The district court granted dismissal based on

the statute of limitations. The court of appeals reversed, reasoning that the

discovery rule applies to defamation claims in Iowa and that “application of the

discovery rule is a factual inquiry that cannot be resolved at [the] motion-to-

dismiss stage of the proceedings.”

We agree that application of the discovery rule is sometimes fact-intensive

and not amenable to resolution on a motion to dismiss. But here, the allegations

of the first lawsuit make it clear that the plaintiff was on inquiry notice of job-

related defamation claims. Yet the plaintiff waited over two years from that filing

to file her second lawsuit. By then, it was too late. Accordingly, we affirm the

statute-of-limitations dismissal order of the district court and vacate the decision

of the court of appeals. We do so without reaching any of the other legal issues

in this case, including whether a discovery rule applies to defamation claims and

whether the plaintiff’s case might be barred by claim preclusion or privilege. 3

II. Facts and Procedural History.

A. Linda Betz’s Employment with Federal Home Loan Bank of Des

Moines. Because this case was decided on a motion to dismiss, we accept Linda

Betz’s well-pleaded factual allegations as true. Benskin, Inc. v. W. Bank, 952

N.W.2d 292, 298 (Iowa 2020). In addition, the defendants asked the district court

to take judicial notice of certain filings from Betz’s prior federal lawsuit. Betz

objected to the district court’s taking judicial notice of any facts asserted within

those filings but did not oppose the court taking “judicial notice of the fact that

various pleadings exist and that they read as they read on their face.” On that

basis, we set forth the essential facts of this case.1

Betz was hired by the Federal Home Loan Bank of Des Moines (FHLB) on

March 19, 2018, as its chief information security officer. She was recruited to

correct deficiencies in FHLB’s information-security program. Three employees

reported directly to her, including Rebecca Mathisen, manager of information

security.

During Betz’s tenure, FHLB retained independent contractor Paul

Crosthwaite. On July 21, 2019, Mathisen and Crosthwaite informed Betz that

certain “SOX controls” were not being performed.2 This was a serious issue.

1In Meade v. Christie, we recently reaffirmed that “when ruling on a motion to dismiss,

courts generally cabin their factual analysis to the claims set forth in the plaintiff’s petition and the matters on which the court can take judicial notice.” 974 N.W.2d 770, 776 (Iowa 2022). We held that publicly filed articles of incorporation could be considered part of the record on the motion to dismiss, although the articles were not mentioned in the petition, where the defendants had asked the district court to take judicial notice, the district court had taken judicial notice, and the plaintiff didn’t challenge that determination on appeal. Id. Likewise, here we can take judicial notice of filings in the federal litigation to the extent (1) copies were submitted to the district court and (2) they are being considered solely for notice purposes and not to establish the truth of facts asserted. 2“SOX controls” is shorthand for internal controls required by the Sarbanes-Oxley Act of

2002 to ensure accuracy and integrity in financial reporting. See 15 U.S.C. §§ 7201–66. 4

On August 7, Mathisen filed an internal complaint against Betz.

Mathisen’s complaint stated that she had certified the relevant SOX controls as

“not effective” but that Betz had improperly certified them as effective. At that

time, Mathisen had not seen Betz’s certifications. Mathisen also stated that Betz

was going to terminate her. Betz, however, had no plans to terminate Mathisen’s

employment.

Based on Mathisen’s complaint, an internal audit was commenced. The

auditors—Kelly Rasmuson and Eric Muller—did largely a paper review. They

interviewed Mathisen and Crosthwaite but not Betz. They created an interim

audit report on September 4 and a final report on October 19. Their audit report

found no evidence that Betz’s certification conflicted with Mathisen’s. Yet the

report described Betz as having a “steep learning curve” and identified other

concerns with Betz, such as “a lack of listening to others . . . and a lack of depth

with awareness/knowledge of controls.” The audit report noted that Michael

Wilson had decided to terminate Betz’s employment because of actions described

in Mathisen’s complaint and also because of ineffective performance on

information security projects.

Wilson did not terminate Betz immediately. Meanwhile, he brought in an

independent contractor, Zeeshan Kazmi, to act as interim chief information

officer. Kazmi became Betz’s supervisor. Betz believed that Kazmi was sexist and

someone who treated female employees different from male employees. Betz

complained to human relations about Kazmi to no avail. Kazmi frequently would

not meet with Betz but would meet with his other direct report who was male.

Kazmi worked closely with Sunil Mohandas, FHLB’s chief risk officer. Betz

believed that Mohandas also disapproved of female employees. It was apparent 5

to Betz that Kazmi, Mohandas, and Wilson worked closely together. Mohandas,

like Kazmi, would ignore Betz’s advice, position, and experience.

On December 4, Betz met with Kazmi and Mohandas. They shared with

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Linda Betz v. Rebecca Mathisen, Eric Muller, Kelly Rasmuson and Michael Wilson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/linda-betz-v-rebecca-mathisen-eric-muller-kelly-rasmuson-and-michael-iowa-2026.