Wagenman v. Western Energy

1999 MT 266N
CourtMontana Supreme Court
DecidedNovember 2, 1999
Docket98-613
StatusPublished

This text of 1999 MT 266N (Wagenman v. Western Energy) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wagenman v. Western Energy, 1999 MT 266N (Mo. 1999).

Opinion

No

No. 98-613

IN THE SUPREME COURT OF THE STATE OF MONTANA

1999 MT 266N

LARRY WAGENMAN,

Plaintiff and Appellant,

v.

WESTERN ENERGY COMPANY,

Defendant and Respondent.

APPEAL FROM: District Court of the Sixteenth Judicial District,

In and for the County of Rosebud,

The Honorable Joe L. Hegel, Judge presiding.

COUNSEL OF RECORD:

For Appellant:

Brenda R. Gilbert, Swandal, Douglass & Gilbert; Livingston, Montana

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For Respondent:

W. Wayne Harper, Attorney at Law; Butte, Montana

Submitted on Briefs: July 1, 1999

Decided: November 2, 1999

Filed:

__________________________________________

Clerk

Justice Jim Regnier delivered the Opinion of the Court.

¶ Pursuant to Section I, Paragraph 3(c), Montana Supreme Court 1996 Internal Operating Rules, the following decision shall not be cited as precedent but shall be filed as a public document with the Clerk of the Supreme Court and shall be reported by case title, Supreme Court cause number, and result to the State Reporter Publishing Company and to West Group in the quarterly table of noncitable cases issued by this Court.

¶ Larry Wagenman appeals from the Judgment entered by the Sixteenth Judicial District Court, Rosebud County, in favor of Defendant Western Energy Company ("WECO"). We affirm the District Court although we do not agree with all the findings and conclusions reached by the District Court as set forth below.

¶ Wagenman’s appeal raises the following issues:

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¶ 1. Whether the District Court erred in finding that Wagenman did not establish a prima facie case of employment discrimination?

¶ 2. Whether the District Court erred in concluding that WECO proffered a "legitimate business purpose" for its adverse employment decision?

¶ 3. Whether the District Court erred in finding that Wagenman did not prove that WECO’s reason for discriminating against him was pretextual?

¶ 4. Whether the District Court erred in finding that Wagenman did not prove by a preponderance of the evidence that WECO retaliated against him?

FACTUAL BACKGROUND

¶ In 1960 Wagenman injured his back while operating a water truck. As a result of that injury, he underwent a surgical procedure known as a laminectomy. Wagenman could not work for six months following the surgery. He eventually recovered and resumed working as a heavy equipment operator.

¶ On August 15, 1985, Wagenman filed an application for employment as a scraper operator with WECO at its mining operation in Colstrip, Montana. As part of the application process, WECO required all applicants for labor positions to undergo a physical examination consisting of a doctor’s examination and a back x-ray. On August 19, 1995, Wagenman was examined. He passed the examination portion of the physical, but received a "poor risk" rating based on the results of his x-ray. On August 21, 1985, the personnel director for the Colstrip mine, Monte Steffan, informed Wagenman that due to his "poor risk" rating WECO would not immediately hire him.

¶ Later that day, Wagenman spoke to Tom Rossetto, a production superintendent for the Colstrip mine. Wagenman testified that Mr. Rossetto informed him he was willing to run a short-handed crew and would hire Wagenman as soon as Wagenman could be "certified," but other members of WECO’s hiring team were not interested in hiring Wagenman. Subsequently, Wagenman called Blair Ricks, a personnel officer for Montana Power Company, a company affiliated with WECO. Mr. Ricks informed Wagenman of the Subsequent Injury Fund ("SIF") certification process as well the Montana Human Rights Commission ("MHRC"). Wagenman contacted the

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MHRC and indicated that he felt he was being treated unfairly. He also forwarded a cover letter he received from the MHRC to WECO.

¶ At the time Wagenman submitted his job application, WECO was self-insured for purposes of workers’ compensation coverage. In order to minimize the cost of insurance, WECO required all job applicants who had failed their physical examination to be certified under the Subsequent Injury Fund, §§ 39-71-901, et seq., MCA (1985), before WECO would hire them. The SIF enabled WECO to limit its liability for subsequent injuries sustained by employees who were certified as "vocationally handicapped" prior to employment. Wagenman was certified for purposes of the SIF and was hired by WECO on October 3, 1985.

¶ In December 1985 a "pushcat" collided with the scraper Wagenman was operating. As a result of the accident, WECO issued Wagenman an "oral reminder." Wagenman was censured for "several issues involving work quality and safety" including "traveling [the] wrong way in areas of poor visibility, cutting too deep during critical top or subsoil salvage, [and] apparent loss of concentration during machine operation."

¶ On February 14, 1986, Wagenman filed a complaint with the MHRC alleging WECO discriminated against him on the basis of his handicap and his race. On July 17, 1986, the MHRC issued a written finding of reasonable cause on Wagenman’s claim of handicap discrimination. An administrative hearing was never held on Wagenman’s complaint.

¶ On February 27, 1986, Wagenman was laid off during a major reduction in force due to WECO’s lack of contracts to produce coal. Wagenman was notified on August 28, 1987, that, pursuant to the agreement between WECO and Wagenman’s union, he would be removed from the Mine Seniority List because he had been laid off for 18 months. All of the 28 scraper operators hired between August and October 1985 were laid off in 1986, and none retained their seniority dates. Of these 28 scraper operators, only 5 were rehired in 1987.

¶ Nineteen operators were hired in August 1987, and fifteen operators were scheduled for "callbacks" on September 8, 1987. It is not clear from the record how many of these operators were scraper operators. However, Mr. Rossetto testified that only five scraper operators were hired during the 1987 rehire because WECO was

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concerned about coal production, which requires coal haulers rather than scraper operators. The heavy equipment operators who were hired during the 1987 rehire were not hired from a union call list, but rather were hired pursuant to an oral amendment to the union contract which allowed WECO to call former employees by name. Wagenman applied for a scraper operator position with WECO around the third week of September 1987, but was not rehired. Wagenman’s resume was forwarded to Patrick Fleming, an attorney who was representing WECO regarding Wagenman’s pending discrimination complaint before the MHRC. On April 4, 1988, Wagenman filed a complaint with the MHRC alleging that he was not rehired because of his race, his handicap, and in retaliation for his previous complaints. Wagenman also reapplied in 1991 and was not hired.

¶ On November 23, 1988, the MHRC issued a Right to Sue Letter to Wagenman entitling him to bring his claim of employment discrimination in district court. Wagenman brought an action in district court on February 24, 1989. On September 25, 1990, Wagenman amended his complaint, adding a cause of action for employment retaliation. Trial was held on January 10 through 13, 1995.

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1999 MT 266N, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wagenman-v-western-energy-mont-1999.