Turner v. IDS Financial Services, Inc.

471 N.W.2d 105, 1991 Minn. LEXIS 149, 59 Empl. Prac. Dec. (CCH) 41,579, 64 Fair Empl. Prac. Cas. (BNA) 325, 1991 WL 101020
CourtSupreme Court of Minnesota
DecidedJune 14, 1991
DocketC3-90-267
StatusPublished
Cited by31 cases

This text of 471 N.W.2d 105 (Turner v. IDS Financial Services, 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
Turner v. IDS Financial Services, Inc., 471 N.W.2d 105, 1991 Minn. LEXIS 149, 59 Empl. Prac. Dec. (CCH) 41,579, 64 Fair Empl. Prac. Cas. (BNA) 325, 1991 WL 101020 (Mich. 1991).

Opinions

SIMONETT, Justice.

When does the statute of limitations begin to run on an unfair employment discrimination practice claim resulting in job termination? At the time the employer gives the employee notice of termination, or at the time termination actually occurs? We think the former, and we reverse the court of appeals.

Plaintiff-respondent C. Thomas Turner was the Minneapolis division manager of defendant-appellant IDS Financial Services, Inc. On December 19, 1986, Turner was suspended from his managerial duties pending an investigation of allegations by subordinates that Turner had introduced an inappropriate religious atmosphere into the office.

[106]*106Approximately 6 weeks later, on February 4, 1987, IDS hand-delivered a letter to Turner lifting his suspension. The letter went on, however, to say:

This is also notice of the termination of your [Employment] Agreements with IDS * * * on March 17, 1987, pursuant to the right to terminate those Agreements without cause on thirty days’ written notice.

After being suspended on December 19, 1986, Turner never returned to his office or performed any work for IDS. The February 4th letter notifying Turner that he was being terminated 30 days hence also instructed Turner to make arrangements to go to the office “in the near future” to get his personal belongings.

On January 8, 1988, more than 300 days after he had received his notice of termination, but less than 300 days after actual termination, Turner commenced this lawsuit. His claims for breach of contract, defamation, and intentional infliction of emotional distress were dismissed on defendant’s motion for summary judgment. Plaintiff also claimed that although his employment contracts permitted either party to terminate the contracts on 30 days’ notice, that his termination was really a pretext for a discriminatory discharge based on age (Turner was 48) and religion, in violation of the Minnesota Human Rights Act. The defendant employer contended that the discrimination claim was barred by the Act’s (then) 300-day statute of limitations. The trial court let plaintiff’s discrimination claim stand, but certified to the appellate court as important and doubtful the following question:

In an employment discharge case, does the Statute of Limitations period contained in Minn.Stat. § 363.06 Subd. 3 commence to run on the Date of Termination or the Date of Notice of Termination?

The court of appeals, in a split decision, held that the statute of limitations commences on the date of termination. Turner v. IDS Financial Services, Inc., 459 N.W.2d 143 (Minn.App.1990). We granted IDS' petition for further review.

The Minnesota Human Rights Act, Minn. Stat. § 363.06, subd. 3 (1986), provides that:

A claim of unfair discriminatory practice must be brought as a civil action * * * within 300 days after the occurrence of the practice. [Note: In 1988 the limitation period was extended from 300 days to 1 year.]

What does “occurrence of the practice” mean? Does the offending practice occur when the employer notifies the employee he is being discharged, as defendant IDS asserts? Or does it occur on the date employment officially ends, as the plaintiff Turner contends?

We have not yet decided this issue, although plaintiff argues otherwise. In Richardson v. School Bd. of I.S.D. No. 271, 297 Minn. 91, 210 N.W.2d 911 (1973), the school district’s standing policy required teachers to resign when they reached the fifth month of pregnancy. As to when the statute of limitations began to run on a claim brought by an individual teacher affected by the district’s pregnancy policy, we said: “We interpret the occurrence of the practice as set forth in this case to mean a discharge or required resignation, the date of which commences the statutory period of limitations.” 297 Minn. at 98, 210 N.W.2d at 916. We added that if the teacher was given a leave of absence, the statute of limitations would commence at the end of the leave. Id. We did not, however, discuss when the limitations period would begin where an employer gives a specific notice of termination to an individual employee. Thereafter, in Buchholz v. Capp Homes, Inc., 321 N.W.2d 893 (Minn.1982), an age discrimination case, we stated that the date of discharge commenced the running of the statute of limitations under section 363.06, subd. 3, citing Richardson. Again, however, there was no notice of termination involved, consequently, the question of whether the giving of notice of discharge or the discharge triggers the limitations period was not discussed.

The court of appeals, however, has directly dealt with the question now before us. In Fitzgerald v. Norwest Corp., 382 N.W.2d 290 (Minn.App.1986), pet. for rev. [107]*107denied, (Minn., April 24, 1986), the court of appeals held that the limitations period on plaintiffs age discrimination claim began to run not when plaintiff was notified she was being terminated but when discharge actually occurred. Id. at 292. The court of appeals felt that Richardson and Buchholz indicated this court had chosen not to follow the rule in federal Title VII cases which holds that notice of termination begins the running of the statute of limitations. But, as already noted, neither Richardson nor Buchholz considered the distinction between notification of discharge and actual discharge; moreover, Richardson was decided before the United States Supreme Court adopted the federal rule in Delaware State College v. Ricks, 449 U.S. 250, 101 S.Ct. 498, 66 L.Ed.2d 431 (1980), and Chardon v. Fernandez, 454 U.S. 6,102 S.Ct. 28, 70 L.Ed.2d 6 (1981).

In Title VII cases the United States Supreme Court has held that notice of discharge begins the running of the statute of limitations. Chardon, supra. While we are not bound to follow the federal rule, we have relied on principles developed under Title VII in construing the Minnesota Human Rights Act. Carlson v. Independent Sch. Dist. No. 623, 392 N.W.2d 216, 220 (Minn.1986). It appears almost all state courts which have addressed this issue have chosen to follow the federal rule.1

In construing the phrase “occurrence of the practice,” Chardon and Ricks state “the proper focus is upon the discriminatory acts, not upon the time at which the consequences of the acts become most painful.” Ricks, 449 U.S. at 258, 101 S.Ct. at 504. We, too, have adopted this analytical approach. See Sigurdson v. Isanti Co., 448 N.W.2d 62, 67 (Minn.1989) (deciding that gender discrimination was a continuing violation of our human rights act).

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Bluebook (online)
471 N.W.2d 105, 1991 Minn. LEXIS 149, 59 Empl. Prac. Dec. (CCH) 41,579, 64 Fair Empl. Prac. Cas. (BNA) 325, 1991 WL 101020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-ids-financial-services-inc-minn-1991.