*1 interests; Savings v. Allstate parties the re- & Loan Ass’n have balanced Whitestone assignment mortgage Ins., 332, quest partial of a 321 N.Y.S.2d 28 N.Y.2d 694, payment pro- prerequisite to of insurance N.E.2d ceeds was reasonable. Whitestone explains: it has been further and From this rule DECISION
improperly mortgagee deduced rights thus nothing impair to his could do properly granted judg- The district court he at the time of loss. And of course fixed mortgagee ment for insurer where bid the waiver, estoppel, assignment, or could: full amount of the secured debt the fore- by discharge debt. as here closure sale. added).
Id. (emphasis Affirmed. Assignment Mortgage
II. Partial
Mortgagee argues that insurer also justified requiring mortgagee to
was not mortgage “partial assignment” of the
give a poli prerequisite payment under the
as a
cy. Mortgagee asserts that the lаw does mortgages. partial assignment of
provide for
partial
the use of
But caselaw illustrates
GERACI, Appellant,
A.
Carol
Goldberg,
States v.
assignments. See United
v.
(E.D.Pa.1965)
251,
F.Supp.
assignment
percent
of 25
inter
(recognizing
ECKANKAR,
nonprofit
a California
(3d
mortgage), aff'd,
F.2d 575
est in a
Respondent.
corporation,
919,
Cir.1966),
cert.
386 U.S.
No. CX-94-1506.
(1967);
v. Massa
881,
Hill
A.D.2d 284 N.Y.S.2d
Div.1967) mortgagee’s par (deciding whether mortgage injured other assignment of
tial
interests). “boot- argues that insurer
Mortgagee also delay resulting payment
strapped” to avoid into a defense order
foreclosure disagree
liability Again, claim. we for the justified in insist-
and hold that insurer was assignment the mort-
ing partial where the extent of insurance
gage debt exceeded insur- have been unfair to It would
due. liability pay than its
er require it to more simply the full policy to secure
under it would
assignment mortgagee offered. And require mortgagee unfair
have been assignment of the mort-
give a full insurer mort- only partial payment of the
gage upon assignment would partial Here a
gage debt. *3 Marshall, Duddleston, E.
David J. Thomas PLC, Mackall, Moore, Minne- & Crounse *4 appellant. apolis, for Hoffman, Nolan, Larkin, Daly & Dayle Bloomington, respondent. Lindgren, for RANDALL, by and decided Considered P.J., EDWARD D. SCHUMACHER and MULALLY,* JJ.
OPINION SCHUMACHER, Judge. appeals partial A. Geraci from the
Carol summary judgment, arguing that the district (1) granting summary judg- in erred gender terms ment on her and conditions claim, claim, and discrimination defamation estoppel there promissory claim because fact; genuine issues of material were concluding that the of the First Amendment I, Article States Constitution and United in- of the Minnesota Constitution Section discharge- religious employer sulates a from non-minister; brought and a based (3) refusing to allow discover evidence her to pretext discharge-based claims. affirm.
FACTS Eckankar, Respondent a non- California corporation, is church profit an hierarchial in religion. It has churches and subordinate groups and local 48 states numerous headquarters are throughout the world. Its in Hope Temple and the in New of ECK ECKists believe: Chanhassen. are com The universes the SUGMAD hierarchy highly evolved plete with a * Const, VI, court, serving pursuant judge pointment to Minn. art. of the as Retired by ap- Appeals judge of the Minnesota Court of according headquarters. Eckankar’s Because govern all the
beings who wоrlds n * * member, own IT longer laws of their worlds. was no a she terminat- singularly and divine nature. rules ed. principles democratic found There are no sued, alleging statutory sex discrim- here. claims, reprisal ination as well com- Twitchell, Shariyat-Ki-Sugmad, Paul defamation, promissory mon law claims for Book One 35 estoppel, intentional infliction of emo- rules for the ECK chela are The laws and eventually tional The district court distress. give harmony, puri- simple. These are to claims, granted summary judgment on all ty, perfection of the Soul. relating except for claim a defamation Id. at 100. calling co-worker her insubordinate. Claims graduate cum is а 1986 laude Carol Geraci involving suspension from member- University City of New York with dismissal, (gender ship including I Count degree computer science. She became discrimination), (reprisal), II Count 1986 and a second member of (intentional Count V infliction of emotional thereafter, Shortly May initiate distress), under the were dismissed Estab- job systems applied and was hired as a lishment of the States Consti- Clause United *5 analyst headquarters. at Eckankar’s She tution the Minnesota Constitution be- then from New York Minnesota. moved analyzing pretext question cause would $22,000 per year position help- included entanglement cause and excessive- excessive computer system. ing a install ly of its burden Eckankar’s exercise Geraci, Shortly hiring Eckankar before involving gender beliefs. Count I discrimina- systems analyst, Tillery. hired another David employ- in of tion and conditions terms University from the of De- Tillery graduated was the court ment dismissed because found college, primarily in After he laware question present that a fact Geraci failed to computers. programmed He also mainframe pretext prong on the of the McDonnell- supervising employees in experience had (defamation) Douglas III test. Count was Tillery systems. sys- administering became opin- were dismissed because the statements tems of the nеtwork and imme- administrator Finally, ions and were not actionable. Count complete diately had access the network. (promissory estoppel) IV was dismissed be- complete given access until Geraci was “promise” not clear and defi- cause was she for Eckankar for 11 months. had worked as a matter nite and therefore not actionable asked to learn the new net-
When Geraci found there no of law. district court was work, Wollan, Eric supervisor, told her her appealed. just delay, reason and Geraci for on her own time. Till- to read the manuals $25,000 annually. ery paid was her situation with the
Geraci discussed
ISSUES
members of Eckankar.
president and board
concluding
in
1. Did
court err
the district
21, 1991,
On
Geraci notified Eckankar’s
June
present
sufficient evi-
that Geraci failed
her
spiritual
and board members of
leader
genuine
issue of
dence to raise a material
alleged legal
complaints
violations. On
proffered
as to
Eckankar’s
busi-
fact
whether
placed
July
was
a leave of
Geraci
on
for discrimina-
pretext
ness
reasons were
spiritual
director
by Eckankar’s
of
absence
tion?
in
persisted
that
she
services and warned
feelings
spiritual
her
on the
trying
impose
concluding
in
2. Did
court err
the district
Eckankar,
suspend-
would
she
be
dirеction
complained
of statements were
August,
or
ed
excommunicated.
defamatory?
of her
membership was terminated because
concluding
in
Did
court err
the district
teachings of Eckan-
disregard of the sacred
promissory estoppel
that Geraci’s claim
kar
her failure to
manifested
work
promise was
definite
failed because the
harmony
her co-workers. Church mem-
and clear?
employment
bership
prerequisite
was a
system
computer
access to
before Geraci
the Minnesota Constitution bar
4. Does
judicial
discharge-based
experience
because he
more
network
review оf Geraci’s
had
supervising employees.
administration
claims?
The court
that Geraci was unable “to
found
ju-
Establishment
bar
5. Does the
Clause
pattern
salary
job duty
inequali-
show
or
discharge-based
of Geraci’s
dicial review
ty
not offer
gender”
based
and did
“suffi-
claims?
cient
the existence of a
evidence to establish
applying
court err in
6. Did the district
question
genuine
material fact on the
issue of
analyzing
test when
Eekankar’s
Smith
pretext.”
clause defense?
Free Exercise
appeal,
On
claims that she set forth
probative
sufficient
evidence on
issue of
ANALYSIS
pretext
summary judgment
to defeat the
mo-
appeal
summary judgment,
On
tion,
Tillery
including the facts that
was not
any
there
we
whether
are
issues
determine
qualified
responsibili-
greater
more
nor had
of material fact and whether
the district
Geraci,
Laurence,
Dorothy
than
ties
an
correctly applied the law. State
employee,
paid
was
less than the
(Minn.
French,
Cooper v.
supervised.
disagree.
four males she
1990).
argues
summary judg
improper on her
condi
ment was
terms and
manager,
The fact that one female
claim,
discrimination
tions
70-person
paid
organization,
was
less
claim,
promissory estoppel
and her defama
supervised
than the
is not
males she
suffi
tion claims because thеre were material is
present
question
cient to
on the
a fact
issue
fact.
sues of
pretext, especially
when there was a busi
paid
it
why
ness reason
less:
law,
1. Under Minnesota
it is an
*6
Moreover,
temporary position.
Geraci’s male
employment practice
employee
for an
unfair
she,
replacement
paid less than
commen
was
respect
to
to
terms or con
discriminate
addition,
experience.
In
surate with his
employment on the
ditions of
basis of sex
Tillery
while Geraci
were hired at
the
except
occupation
when based on a bona fide
chart,
organizational
same level on the
Till-
363.03,
al qualification. Minn.Stat.
subd.
ery
experience
systems
in
significant
had
l(2)(e) (1992). For indirect discrimination
administration;
Thus,
none.
Geraci had
it
claims,
adopted
three-part
has
Minnesota
the
appears
legitimate
this
a
business
was
deci
McDonnell-Douglas
Sigurdson
test.
v. Is
give Tillery
responsibility
sion to
more
(Minn.
715,
County,
anti
386 N.W.2d
719-21
$3,000
him
pay
more than Geraci. We note
1986).
test, an employee
this
must
Under
Tillery
supervise
that Geraci and
did not
discrimination;
present
of
prima
a
facie case
employees. Tillery,
other
worked
persuasion
the
then
the
burden of
shifts to
projects;
supervising
with others while
legitimate
employer
present a
nondiscrimi
tо
therefore,
improper
it
to take
was not
into
actions;
natory
for its
and the burden
reason
supervisory
Tillery’s prior
experi
account
employee
then
to the
to show that
returns
ence.
justification
employer’s
pretext
the
is
for
Id. at 720.
discrimination.
review,
By
of
con
notice
judicial
pre-
tends that
of this claim
The district court found that
review
was
Geraci
prima
gender
improper
grounds
case of
on
facie
discrimi-
constitutional
because
sented
employment
regard
per
to her
condi-
the context Geraci’s
was
nation with
terms and
vasively
disagree.
If an
religious.
because
was a mem-
em
tions of
group;
qualified; ployee’s
may
relying
resolved
protected
ber
she was
claims
be
qualifications,
paid
proof,
religion
on neutral
the
despite
but
she was
methods
Sny
Black v.
given
computer
prevent
access to
clauses do not
review.
less and
less
the
der,
715,
counterpart.
(Minn.App.1991)
system
Eckan-
than her male
N.W.2d
Tillery
(citing
acknowledged
paid
kar
more
Minker v. Baltimore Annual
was
Confer
Church,
Geraci,
given
894 F.2d
than
stated that he was
ence United Methodist
1354,
(D.C.Cir.1990)), pet.
complete
rev.
assignments and received
1360-61
different
(Minn.
1991).
29,
proven
question
can be
false is
of law.
Ang.
Geraci’s or
denied
job
disparity
pay,
Id.
were
on
based
duties,
system.
computer
to the
and access
Here,
that a
the district
found
disparity
allege that
the
Eckankar did not
job
by Tillery
an
statement
to
unidentified
reasons,
but because
based on
was
employee
that an
was not
[Geraci]
candidate
experience.
in-
Tillery’s superior
Because
“technically strong” was not actionable be
did
involve ecclesi-
quiry into these issues
Tillery
cause
did not refer
matters,
proper.
judicial
review
astical
name. There is no indication
the record
job
knew
or knew
that the
candidate
defamatory if it
2. A
is
statement
Thus,
Eckankar.
the
that Geraci worked for
party;
has been communicated to a third
defamatory
because Gera-
statement
false;
the indi
tends
harm
community
reputation in the
could not
ci’s
reputation and
him or her
lowers
vidual’s
Stuempges, 297
have been affected. See
Stuempges v.
community’s
estimation.
N.W.2d
Co.,
252,
Parke,
Davis &
N.W.2d
1990,
(Minn.1980).
cir
Next,
Before
some federal
court found that
opinion
courts
that statements of
cuit
held
that Geraci did not “have the tech-
statement
that,
absolutely protected from defamation
were
or to do
expertise
nical
to work
Huyen v.
under the First Amendment.
something”
defamatory
suits
was not
because
Driscoll,
76,
(Minn.App.
alleged
lack of
without
context of
Inc.,
1991)
Newsweеk,
(citing
Janklow
expertise there could be no harm
technical
(8th
denied,
1300,
Cir.1986), cert.
reputation.
F.2d
record does
Geraci’s
272,
107 S.Ct.
93 L.Ed.2d
underlying
479 U.S.
facts of
state-
provide the
this
Evans,
(1986);
Ollman v.
750 F.2d
possible
It is
that Geraci did not have
ment.
(D.C.Cir.1984),
cert.
U.S.
work
expertise
technical
on “it” and
(1985)),
pet.
between fact and
*7
Finally,
district court found that
18-21, 110
was artificial. Id. at
lower courts
poisoned
“had
the statements that Geraci
only
The
that
at 2705-07.
Court held
S.Ct.
control,”
board,”
influ
of
“a bad
“out
of
concern
public
matters
statements about
“emotional,”
ence,”
player”
“not a
team
capable
being proven
or false and
not
of
true
her
published
would tend to lower
wei’e
rea
interpreted
cannot be
statements that
community.
court con
reputation in the
The
sonably
stating
protected
are
as
facts
cluded, however,
these claims were not
that
Amend
under
First
defamation actions
facts
thеy do
contain
actionable because
Id.;
Bank
also McGrath v. TCF
ment.
see
proven
that can be
factual connotations
or
Sav.,
(Minn.App.1993),
808
N.W.2d
false.
(Minn.
modified,
as
induce the can only by promise. enforcing be avoided The Minnesota Constitution af Co., 387, greater protection religious of freedom v. Cowles 479 N.W.2d fords Cohen Media (Minn.1992) (Second) (citing Restatement than the United States Constitution. State v. 391 (Minn. 90(1) (1981)). 393, promise Hershberger, § 462 N.W.2d 397 of Contracts 1990).1 must be definite and cleаr. Id. The district The First Amendment limits government prohibiting from the exercise of court determined that there was no “clear decided, Hershberger Hershberger, At the Su- free exercise issues. 462 N.W.2d 1. the time analyzing preme Court used the Smith test when
399 16, sincerely beliefs held. precludes that Eckankar’s are religion. Section Eckankar, infringement or an interference application “an of Act to even Further Id. Government religious freedom.” with excessively burden reli however would its prac- religious not prohibit do actions that Hill-Murray, In the Minneso gious beliefs. Minnesota Consti- tices could still violate the Supreme application ta Court concluded religious they interfere with those tution lay employees Relations to of the Labor Act Moreover, the practices. Id. Constitution parochial not of a school would violate legisla- as the prohibits judiciary, as well the terms and First Amendment because ture, violating rights. free exercise from employment were “not doetri- conditions of Cathedral, 363 Kreshik v. Saint Nicholas nally negotiable.” 487 [were] related 1038, 191, 1037, 190, 4 S.Ct. L.Ed.2d U.S. 80 also found that (1960). 1140 “to Hill-Murray power require still had the dispute that Eckankar’s Geraci does religious compliance doctrine” and could held, sincerely con- religious are but beliefs who any person “remove fоllow the fail[ed] Hu- application of the Minnesota tends Here, religious standards.” Id. Eckankar Rights exces- man Act to Eckankar does not discharged it Geraci because religious sively Eckankar’s beliefs. burden litigation longer of no a member. Further Geraci, Hill-Murray, argues that relying on require would a court Geraci’s claims “may treats application affect how Eckankar monitoring of question Eckankar’s it its reli- employees, but not affect its does doctrine, its adherence to church reasons for gious disagree. We belief.” excommunication, veracity and the of Eckan- by recognizing that Minneso begin matters, respоnses. kar’s On such “the state (Act) Rights has been held ta Human Act in. may require no minimum more basis applied on its and as constitutional face reasoning may supervise than it doctrinal private companies whose owners held strict Rayburn v. doctrinal content.” General Sports religious by McClure v. beliefs. State Adventists, 772 Seventh-Day Conference Club, 844, Inc., 854 Health 370 N.W.2d & (4th Cir.1985) (citing F.2d Serbian (Minn.1985); v. Porter State Johnson Milivojevich, 426 Diocese v. U.S. Orthodox Farms, Inc., (Minn.App. 696, 720, 2372, 2385, 49 L.Ed.2d S.Ct. 1986). appli eases not involve an Those did (1976)), cert. U.S. Act to a church and are cation of the begin If courts L.Ed.2d addition, exempts Act controlling. question a church’s basis doctrinal respect religious organization with to reli decisions, may compelled to con church be religion qualifications is a bona gious when govern religious its beliefs with form qualification.2 occupational Minn.Stat. fide majority beliefs. See or the culture’s ment’s 1(2) (1992). 363.02, Geraci has subd. Cathedral, 344 U.S. v. St. Nicholas Kedroff brought discrimination. a claim L.Ed. S.Ct. Thus, is not whether the issue be (religious organizations free should impermissibly permissibly or discriminated also manipulation”); control or see “secular religion, against on the basis Gedicks, M. Toward Constitu Frederick Eck- court can resolve whether whether the Religious Group Jurisprudence against Geraci on tional ankar discriminated reprisаl (explain gender Rights, or whether there was Wisc.L.Rev. basis violating Amend polygamy Eckankar’s First due without ing Mormons’ abandonment *9 religion. interference). right ment to the free exercise of There a ten government we cannot. We hold eradicating between discrimination sion religion; how free permitting the exercise compel Eradication of discrimination is case, ever, weighs in favor Club, this balance Sports & ling interest. Health state Amendment. objection the First 854. There is no 370 N.W.2d at . 338, Amos, S.Ct Bishop v. 483 107 a reli U.S. Supreme held that such 2. The Court has (1987). exemption the Es gious does not violate based L.Ed.2d 97 273 Presiding Corporation tablishment Clause. 400 (not- J., (Scalia, prohibits dissenting) 114 at S.Ct. 2515
5. The Establishment Clause ”). conclude, law-making “respecting ing an establishment of Court’s “snub of Lemon We Const, however, analysis I. religion.” type U.S. amend. The dis- that under either discharge-based may dis- trict court held that Geraci’s the courts not review Geraci’s charge-based the Establishment claims were barred under claims. judicial
Clause because
review would consti-
test,
entanglement.
tute excessive
con-
gov
Under the Lemon
applying
that the
court erred in
pur
tends
ernment action must:
have a secular
claims,
prevent
religion
this clause to
review of
pose;
neither inhibit nor advance
'
arguing
only
effect;
that the clause
bars review of
primary
as its
not create
employment
involving
decisions
ministers
entanglement between church and
excessive
clergy.
responds
KuHzvian,
courts
Lemon v.
403
state.
U.S.
jurisdiction
exercising
612-13,
abstain from
must
745
91 S.Ct.
29 L.Ed.2d
doctrine,
(1971).
Grumet,
any
involving
church
governmental power
over
Under
faith,
discipline
they
or
whether or not
in-
religiously
must be exercised in a
neutral
clergy.
at-,
volve a member of the
manner.
Second,
If claims involve core
of eccle
we note that the district court and
issues
concern, government entanglement
parties applied
both
the Lemon test. We
siastical
vitality
prevents judicial
question
continuing
Lemon’s
subse
review. Serbian Orthodox
Diocese,
721-23,
quent
Supreme
at 2386-
to the
Court’s decision
U.S.
S.Ct.
—
Minker,
1360; Black,
Grumet,
U.S.—,
87;
894 F.2d at
Board of Educ.
2481,129
(1994),
dispute,
720. If
can
L.Ed.2d 546
where the N.W.2d at
S.Ct.
Lemon,
proof,
rely on
neu
be resolved on neutral methods of
court did not
used
Minker,
judicial
permissible.
trality principles
analyzing
review is
when
the Estab
*10
—id.,
at-,
1360, Black,
F.2d at
To establish a facie case of discrimi- nation, plaintiff present proof must supporting prima Rather than facie case discriminatory Sigurdson v. motive. Isanti discrimination, pres- the facts (Minn.1986)(“A County, 386 N.W.2d exactly type employers ent of factors and prima may facie case be established direct managers regularly legitimately and use in motive”). discriminatory evidence of Where delegating authority setting employee and in plaintiff produce cannot such direct evi- salaries. dence, plaintiff may present prima still (1) by showing plaintiff facie case that: ais protected group; plaintiff of a
member
sought qualified opportunities and that others; employer made available to
despite being qualified, plaintiff was denied opportunities; plaintiff
these and after opportunities
was remained avail- given persons able or were to other Greg COPELAND, al., Appellants, et plaintiffs qualifications. wage Id. For dis- v. claims, plaintiff crimination must show employer paid wages different BROADCASTING, INC., HUBBARD d/b/a employees opposite equal sexes for work KSTP-TV, al., Respondents. et jobs skills, effort, requiring equal and No. C4-94-1629. Foods, responsibility. Fairway Kolstad Inc., (Minn.App.1990). 457 N.W.2d Appeals Court оf of Minnesota. Here, Tillery, the record shows who was Jan. not, given opportunities qual- Geraci was was ways Tillery ified in not. Geraci was approximately years experience
had eleven
computer systems analysis, programming computers, supervising employ-
mainframe
ees, computer network administration. hired, recently
When Geraci was she had
graduated college, experience had some computer design programming, experience in computer
had no network ad- termination,
ministration. After Geraci’s replacement given responsi-
male was some formerly performed by Tillery
bilities
Geraci, paid substantially than less Ger- experience.
aci because he had even less sought had to show that she qualified opportunities that the em-
ployer making available to others. See
Sigurdson, Tillery at 720. had
experience computer maintaining networks qualified employ-
and was to administer the computer
er’s network here. Geraci did not experience administering computer
have net-
