Matthews v. Eichorn Motors, Inc.

800 N.W.2d 823, 2011 Minn. App. LEXIS 85, 112 Fair Empl. Prac. Cas. (BNA) 1294, 2011 WL 2672261
CourtCourt of Appeals of Minnesota
DecidedJuly 11, 2011
DocketNo. A10-2095
StatusPublished
Cited by8 cases

This text of 800 N.W.2d 823 (Matthews v. Eichorn Motors, Inc.) 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
Matthews v. Eichorn Motors, Inc., 800 N.W.2d 823, 2011 Minn. App. LEXIS 85, 112 Fair Empl. Prac. Cas. (BNA) 1294, 2011 WL 2672261 (Mich. Ct. App. 2011).

Opinion

OPINION

WRIGHT, Judge.

In this appeal from summary judgment dismissing appellant’s claims against respondents for aiding and abetting sexual harassment, in violation of Minn.Stat. § 363A.14 (2010), and declining to impose vicarious liability under the responsible-corporate-officer doctrine, appellant argues that there are genuine issues of material fact that preclude summary judgment and that the district court erred in its application of law. We affirm.

FACTS

Appellant Sheila D. Matthews1 worked as a business manager for Eichorn Motors, Inc. for a three-month period during 2006. Eichorn Motors was owned by respondent Justin Eichorn and Michael Coombe, who is not a party to this litigation. Respondent Mitch Eichorn is Justin Eichorn’s father.

Eichorn Motors was formed in October 2005 to purchase the assets and continue the operations of an existing Chevrolet dealership in Grand Rapids. Justin Eic-horn held an 85-percent majority interest in Eichorn Motors; Coombe held a 15-percent interest and served as general manager. Mitch Eichorn loaned Justin Eichorn money to purchase Eichorn Motors and served as its vice president until May 4, 2006. But Mitch Eichorn held neither an ownership interest in nor was an employee of Eichorn Motors. Coombe borrowed funds from Justin Eichorn to purchase his share of Eichorn Motors.

[825]*825As general manager, Coombe was responsible for the day-to-day operations of Eichorn Motors and hired all of its employees, including Matthews. Coombe offered Matthews the business-manager position in May 2006. In reliance on the offer, Matthews moved from Duluth to Grand Rapids.

Coombe began pursuing Matthews romantically before she commenced her employment at Eichorn Motors. Matthews accepted an invitation from Coombe in mid-May to join him and his 14-year-old son for dinner and a movie. When Coombe demonstrated inappropriate affection, Matthews advised Coombe that she would not become romantically involved with her employer or co-workers. Coombe also left multiple non-business-related voice and text messages for Matthews during May, in which he wrote that he was thinking about her, that she was “such a cutie” and “a special girl,” and that they were going to be “best friends.” When Matthews stopped by Eichorn Motors to meet other employees at the end of May, Coombe greeted her with a hug and asked to come to her apartment to use her tanning bed. Coombe’s inappropriate conduct continued in June. For example, when Matthews dropped off her packing boxes with Coombe so that he could use them for his upcoming relocation, Coombe commented: “[Y]ou look so hot in those shorts” and “you sure fill out that top.” Coombe also became upset when Matthews received flowers at work from a friend.

Despite her concerns about Coombe’s conduct, Matthews began working at Eic-horn Motors on June 14. Matthews advised Coombe that she did not think that the “owners” would approve of her dating her supervisor. Shortly thereafter, Coombe told Matthews that he had asked Mitch Eichorn and/or Justin Eichorn for permission to date her.2 During her birthday celebration shortly after her employment began, Matthews learned that, before she started working at Eichorn Motors, Coombe told certain employees, “[Hjands off Sheila — she’s taken.” Coombe also invited Matthews to his home for dinner to celebrate her birthday. She declined. Throughout June, Coombe continued making inappropriate comments and being inappropriately affectionate with Matthews.

In July, Coombe’s actions toward Matthews seemed to improve, but she learned that Coombe was making sexual advances toward other women employees. On July 27, Matthews called Coombe and directed him to stop sexually harassing women at work. Also during July, Coombe spoke with Matthews about driving together to a work-related golf tournament that they both planned to attend. Because Matthews did not want to ride with Coombe, she made plans to drive separately to the tournament and to visit her family on the way. When Matthews advised Coombe of her plans, he became angry.

On August 3, while Coombe was away from work to attend the golf tournament, Matthews spoke with Mitch Eichorn, who was voluntarily performing odd jobs at Eichorn Motors, about Coombe’s sexually harassing conduct. Matthews did so because she believed he was an owner of Eichorn Motors. Justin Eichorn appeared to have only a limited role in the operation of the business and was rarely present at Eichorn Motors. Mitch Eichorn, on the other hand, was regularly present. Ac[826]*826cording to Matthews, in addition to providing physical labor to remodel Eichorn Motors, Mitch Eichorn “inserted himself in a variety of ways in the daily activities” of the business. Matthews and other employees also were aware that Mitch Eic-horn financed the acquisition of Eichorn Motors. And on at least one occasion when Matthews referred to Mitch Eichorn as the owner of Eichorn Motors, Coombe did not correct her.

According to Matthews, she told Mitch Eichorn about the incidents of Coombe’s sexual harassment. Mitch Eichorn responded that because he loved his wife, Matthews need not worry about him making sexual advances. Mitch Eichorn referred to a Christian radio station and recommended that she listen to it. The next morning, several employees saw Mitch Eichorn, Justin Eichorn, and Coombe enter an office and close the door behind them. The employees heard shouting from within.

Approximately 10 days later, on August 15, Coombe and Justin Eichorn came to Matthews’s office and terminated her employment. When Matthews asked the reason she was being fired, Coombe responded that she had not followed procedures. Matthews then accused Justin Eichorn of knowing the real reason that she was being fired. Justin Eichorn did not respond. But Coombe replied, “Sheila, you are so full of yourself, you have nothing on me and could not prove it anyway.”

Matthews brought this legal action against Eichorn Motors, Mitch Eichorn, and Justin Eichorn, alleging that Coombe had subjected her to sexual harassment and reprisal, in violation of the Minnesota Human Rights Act (MHRA), Minn.Stat. § 363A.14, for which Eichorn Motors was liable as her employer. She also alleged that Mitch Eichorn and Justin Eichorn were liable for aiding and abetting the sexual harassment under the MHRA and as responsible corporate officers. Mitch Eichorn and Justin Eichorn moved for summary judgment, which the district court granted. The district court reasoned that the evidence failed to establish a genuine issue of material fact that either Mitch Eichorn or Justin Eichorn aided or abetted the harassment, and that the responsible-corporate-officer doctrine does not apply to MHRA claims. The district court subsequently granted a default judgment against Eichorn Motors, which had ceased operations during the pendency of the litigation. This appeal followed.

ISSUES

I. Did the district court err by granting summary judgment in favor of respondents for aiding and abetting MHRA violations?

II. Did the district court err by concluding that the responsible-corporate-officer doctrine does not apply to MHRA claims?

ANALYSIS

Summary judgment should be granted when “there is no genuine issue as to any material fact and [one] party is entitled to judgment as a matter of law.” Minn. R. Civ. P. 56.03. Whether summary judgment was properly granted is a question of law, which we review de novo. Prior Lake Am. v. Mader,

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800 N.W.2d 823, 2011 Minn. App. LEXIS 85, 112 Fair Empl. Prac. Cas. (BNA) 1294, 2011 WL 2672261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matthews-v-eichorn-motors-inc-minnctapp-2011.