Thaleaha McBee v. Team Industries, Inc.

CourtSupreme Court of Minnesota
DecidedOctober 29, 2025
Docket31879
StatusPublished

This text of Thaleaha McBee v. Team Industries, Inc. (Thaleaha McBee v. Team Industries, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thaleaha McBee v. Team Industries, Inc., (Mich. 2025).

Opinion

STATE OF MINNESOTA

IN SUPREME COURT

A23-1879

Court of Appeals McKeig, J. Took no part, Hennesy, J. Thaleaha McBee,

Appellant,

vs. Filed: October 29, 2025 Office of Appellate Courts Team Industries, Inc.,

Respondent.

________________________

Daniel G. Leland, Ryan T. Conners, Leland Conners, PLC, Minneapolis, Minnesota, for appellant.

John A. Kvinge, Daniel J. Ballintine, Paige K. Clark, Larkin Hoffman Daly & Lindgren Ltd., Minneapolis, Minnesota, for respondent.

Stephen M. Premo, Premo Frank, PLLC, Minneapolis, Minnesota; and

Christopher J. Moreland, MSB Employment Justice LLP, Minneapolis, Minnesota, for amicus curiae the Minnesota Chapter of the National Employment Lawyers Association.

Leslie L. Lienemann, Celeste E. Culberth, Culberth & Lienemann, LLP, Saint Paul, Minnesota, for amicus curiae Employee Lawyers Association of the Upper Midwest. ________________________

SYLLABUS

As used in Minnesota Statutes section 268.19, subdivision 2(c), the phrase

“absolutely privileged” provides immunity from liability in civil actions for which

information submitted to the Department of Employment and Economic Development, in order to determine an applicant’s entitlement to unemployment benefits, forms the subject

matter or basis of the claim.

Affirmed.

OPINION

MCKEIG, Justice.

Appellant Thaleaha McBee was terminated from employment at Team Industries,

Inc. (Team) after she reported to Team staff that she was experiencing back problems.

McBee sued Team under the Minnesota Human Rights Act (MHRA), alleging failure to

provide reasonable accommodations and disability discrimination. Minn. Stat.

§§ 363A.01–.50. Before trial, Team moved to exclude from evidence a questionnaire that

it had completed and submitted to the Department of Employment and Economic

Development (DEED) so that DEED could determine McBee’s entitlement to

unemployment benefits. 1 The district court excluded the questionnaire (DEED

Questionnaire), relying on Minnesota Statutes section 268.19, subdivision 2(c), which

provides: “Information obtained under the Minnesota Unemployment Insurance Law, in

order to determine an applicant’s entitlement to unemployment benefits, are absolutely

privileged and may not be made the subject matter or the basis for any civil proceeding,

administrative, or judicial.” The district court reasoned that the DEED Questionnaire

1 The Department of Employment and Economic Development is the agency that oversees and administers the Unemployment Insurance program in Minnesota. Cf. Minn. Stat. § 268.035, subd. 8a (defining Commissioner in the context of the Minnesota Unemployment Insurance statutes as “the commissioner of employment and economic development”).

2 should be excluded because it was “information created or generated solely” for purposes

of an application for unemployment insurance benefits. The court of appeals affirmed,

holding that “information submitted to DEED for processing an unemployment-benefits

claim is absolutely privileged and thus inadmissible in another civil, administrative, or

judicial proceeding.” McBee v. Team Indus., Inc., 9 N.W.3d 592, 599 (Minn. App. 2024).

We disagree with the court of appeals’ interpretation. We conclude that the phrase

“absolutely privileged,” as used by the Legislature in section 268.19, subdivision 2(c), is

an immunity from liability, which in the context of the statute, shields an employer from

liability for information it has communicated to DEED when that information is obtained

by DEED “in order to determine an applicant’s entitlement to unemployment benefits” and

later “made the subject matter or the basis for” a civil proceeding. Section 268.19,

subdivision 2(c), does not state an evidentiary rule of general inadmissibility. Because the

DEED Questionnaire is not the subject matter or basis of McBee’s employment

discrimination claim, the district court erred by excluding the document from evidence at

trial. Even so, McBee is not entitled to a new trial because the exclusion did not constitute

prejudicial error. We therefore affirm the court of appeals, though on different grounds.

FACTS

Appellant McBee began working at a foundry operated by respondent Team

Industries, Inc. in Detroit Lakes in September 2014. 2 In early 2015, McBee began

2 For a more complete recitation of the background facts of this case, see our opinion in McBee’s first appeal before us. See McBee v. Team Indus., Inc., 925 N.W.2d 222, 224– 27 (Minn. 2019).

3 experiencing back problems with nerve-related symptoms, including numbness and limited

mobility in her hands. Based on these symptoms, a doctor placed McBee on a 10-pound

lifting restriction to avoid additional injuries. Shortly after McBee notified Team of this

lifting restriction, Team terminated McBee’s employment without attempting to provide

her with accommodations.

After her termination, McBee filed a claim for unemployment benefits with DEED.

DEED sent Team an Unemployment Insurance Request for Information form (the DEED

Questionnaire) to determine whether McBee qualified for unemployment benefits. The

DEED Questionnaire included questions about McBee’s employment, disability, and

termination. One of these questions asked: “If you (the employer) were aware of the

illness, injury, or medical condition, did you try to make accommodations for the

applicant’s situation?” Team checked a “No” box in response. Team further explained:

Due to potential for paralysis (stated by [Employee] to supervisor, HR and several co-workers) and the unwillingness of her doctors to take her out of work, she claimed she could be paralyzed simply by looking up. We did not want to be liable for aggravating her injury and being subject to a work comp claim.

Team responded to several other questions on the form. Team then returned the DEED

Questionnaire to DEED for its assessment of McBee’s claim.

In June 2015, McBee filed a complaint against Team alleging, among other things,

that Team violated the MHRA when it failed to reasonably accommodate her disability.

During discovery, Team moved for a protective order to exclude the DEED Questionnaire

from both discovery and admission at trial. The district court ruled that the DEED

Questionnaire was discoverable but reserved its decision as to admissibility, expressly

4 stating: “Admissibility of these records at trial is NOT determined herein” and that

admissibility was “an unresolved issue.”

In July 2016, Team moved for summary judgment. The district court granted

Team’s motion, and the court of appeals affirmed that dismissal. We granted review,

identified two genuine issues of material fact, and reversed and remanded for trial. McBee

v. Team Indus., Inc., 925 N.W.2d 222, 233 (Minn. 2019). Those issues of material fact

were (1) whether McBee could perform the “essential functions” of her job with reasonable

accommodation, see Minn. Stat. § 363A.08, subd. 6; and (2) whether her continued

employment posed a serious threat to her health or safety (a defense to a claim of disability

discrimination by an employer under Minn. Stat. § 363A.25). McBee, 925 N.W.2d at 230–

33.

On remand, Team filed a motion in limine to exclude the DEED Questionnaire from

evidence at trial. McBee filed an affirmative motion to admit it. Following a hearing, the

district court granted Team’s motion and excluded the DEED Questionnaire. In relevant

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