Karen Dorshkind v. Oak Park Place of Dubuque II, L.L.C.
835 N.W.2d 293
| Iowa | 2013Background
- Oak Park Place (Dubuque) employed Karen Dorshkind as an at-will marketing employee who observed colleagues forging state-mandated dementia-training documents.
- Dorshkind reported concerns internally to coworkers and via internal channels rather than directly to the DIA at the outset; she later was terminated.
- The DIA conducted investigations and found that training documents had been forged, resulting in penalties and a conditional certificate for Oak Park.
- Iowa Code ch. 231C and the corresponding admin rules require dementia-specific training and regulate enforcement, including penalties for noncompliance.
- The district court allowed punitive damages based on an asserted public-policy exception relating to administrative-rule violations, which the jury awarded; the appellate court partially affirmed and remanded.
- The Supreme Court held that the wrongful-discharge claim is supported by a clearly defined public policy, but punitive damages are not recoverable based on the administrative-rule violation at issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether internal whistleblowing about forged documents is protected by public policy | Dorshkind’s internal report furthers public policy protecting residents | Oak Park argues no statutory/public policy protection for internal reporting | Yes; internal whistleblowing is protected by public policy under chapter 231C and rules. |
| Whether punitive damages are recoverable for wrongful discharge based on administrative-rule violation | Punitive damages should follow from public-policy breach | Public policy did not recognize administrative-rule violation as a basis for punitive damages at discharge | No; punitive damages not recoverable; remand for judgment consistent with decision. |
Key Cases Cited
- Springer v. Weeks & Leo Co., 429 N.W.2d 558 (Iowa 1988) (public policy supports wrongful discharge for statutory rights)
- Berry v. Liberty Holdings, Inc., 803 N.W.2d 106 (Iowa 2011) (narrow public-policy exception; defined elements for at-will termination)
- Jasper v. H. Nizam, Inc., 764 N.W.2d 751 (Iowa 2009) (administrative-rule-based public policy; limits on punitive damages for new doctrines)
- Teachout v. Forest City Community School District, 584 N.W.2d 296 (Iowa 1998) (child-abuse reporting public policy; internal vs external reporting analyzed)
- Tullis v. Merrill, 584 N.W.2d 236 (Iowa 1998) (internal wage claim protected by statute; internal complaint constitutes protected activity)
- Ballalatak v. All Iowa Agric. Ass’n, 781 N.W.2d 272 (Iowa 2010) (internal whistleblowing; limits when no statutory protection)
- Kohrt v. MidAmerican Energy Co., 364 F.3d 894 (8th Cir. 2004) (ILOOSH public policy protecting safety concerns; internal reporting context)
- Lara v. Thomas, 512 N.W.2d 777 (Iowa 1994) (extension of public-policy protection for unemployment benefits)