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834 N.W.2d 683
Minn.
2013
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Background

  • In April 2008 Sipe, jointly employed by STS and Labor Ready, tested positive on an employer-ordered drug test and was discharged.
  • Sipe filed suit in March 2011 alleging wrongful discharge in violation of Minn. Stat. § 181.953, subd. 10 (Drug and Alcohol Testing in the Workplace Act) and sought remedies under § 181.956.
  • § 181.953, subd. 10 prohibits discharge based on an unconfirmed initial positive test and protects employees from discharge on a first confirmed positive unless counseling/rehab is offered and refused or not completed.
  • Defendants moved to dismiss as time-barred, arguing the two-year limitations period in Minn. Stat. § 541.07(1) ("libel, slander, assault, battery, false imprisonment, or other tort resulting in personal injury") applied.
  • The district court and the court of appeals applied the Christenson three-part test and held the claim was an "other tort resulting in personal injury," dismissing the complaint as untimely.
  • The Minnesota Supreme Court reversed, holding the statutory wrongful-discharge claim is governed by the six-year limitations period in Minn. Stat. § 541.05, subd. 1(2) for liabilities created by statute.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Which statute of limitations governs a wrongful-discharge claim under Minn. Stat. § 181.953, subd. 10? Sipe: six-year period under § 541.05(1)(2) because the cause of action is created by statute. STS/Labor Ready: two-year period under § 541.07(1) as an "other tort resulting in personal injury." Held: Six-year statute (§ 541.05(1)(2)) applies; § 541.07(1) is limited to common-law torts, so it does not govern statutory wrongful-discharge claims.

Key Cases Cited

  • Christenson v. Argonaut Ins. Cos., 380 N.W.2d 515 (Minn. App. 1986) (articulated three-part test used to classify a claim as an "other tort resulting in personal injury").
  • McDaniel v. United Hardware Distrib. Co., 469 N.W.2d 84 (Minn. 1991) (statutory retaliatory-discharge claim governed by six-year period for liabilities created by statute).
  • Park Nicollet Clinic v. Hamann, 808 N.W.2d 828 (Minn. 2011) (explains de novo review standard for statutory limitations and accrual questions).
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Case Details

Case Name: Sipe v. STS Manufacturing, Inc.
Court Name: Supreme Court of Minnesota
Date Published: Jul 31, 2013
Citations: 834 N.W.2d 683; 97 Empl. Prac. Dec. (CCH) 44,878; 2013 WL 3929137; 36 I.E.R. Cas. (BNA) 513; 2013 Minn. LEXIS 361; No. A11-2082
Docket Number: No. A11-2082
Court Abbreviation: Minn.
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