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Wetterhahn v. Kimm Co.
430 N.W.2d 4
Minn. Ct. App.
1988
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*1 paid be retained premature the owner and at awards are this time and project the end at some later should also be reversed. of purpose retainage date. The of is to provide of money out which claims against owner has the contractor can be REVERSED. necessity collected without the of a law- agreed suit. is not damage It

damage limit. added). (emphasis

Id. at 428 In J. Stewart

Stein, (1980), Glossary Construction re-

tainage is defined as a sum withheld from payment

each to the contractor in accord-

ance with the terms of the owner-contrac- agreement.

tor Id. at 622. WETTERHAHN, Relator, Joan A.

We hold that the trial court erred as ordering a matter of law in A return of retainage P’s pur & at this time. Since a COMPANY, The KIMM Commissioner pose retainage to secure a fund Training, Respondents. money from which claims the owner against the contractor can be collected lawsuit, necessity without the of a Court of of Minnesota. fund payment must continue to exist potential against claims have A MPDC P& Hayes result its lawsuit with

Contractors.

Retainage security is a device and the possession

issue here is security of that correctly

fund. The trial court stated that

“esoteric, obligations” unmatured cannot against retainage

be set which is owed off absolutely. The analysis trial court’s setoff,

MPDC’s in terms of how-

ever, ignores retainage the basic notion security device hold a fund of

money payment available for of sums due

upon liability determination of on the coun-

terclaim. The as-yet liability undetermined genuine A P

of & is a issue of material fact

which forecloses an order payment retainage If pre- at this time. MPDC involving

vails Hayes matter Con-

tractors, retainage paid be then Thus, A premature P. it

trial retainage court to order that the

paid time, partial at this and the award of

summary judgment is reversed.

Ill P attorney’s trial court awarded &

fees and prejudgment interest. We find above, analysis

that based on our these

quate her from verbal by a harassment co-worker. unemployment benefits, hearing

compensation and a by Depart- conducted a referee from the Training. At the ment of Jobs and hear- ing, testified that her co-work- er, Varga, continuously Steve swore and employee yelled at her. Another former claim, testify- corroborated Wetterhahn’s Varga exploded temper ing that into tant- long, directing day usually rums all his anger towards Wetterhahn. complained

Wetterhahn testified that she foreman, Alex, her steward Ed to a union Boddy, production Kimm’s and Robert manager. She also raised the company meetings. According to Wetter- hahn, Boddy she was told that Whitelaw, Legal Aid Soc. of Min- John S. Varga, keep eye foreman would but

neapolis, Minneapolis, for relator. no other action was taken to solve the Co., Minneapolis, pro Kimm se. problem. Gen., III, Humphrey, Atty. Hubert H. Varga Alex testified that had caused Barone, Gen., Sp. Atty. St. James P. Asst. years. for 25 While Alex was trouble Paul, Training. for Comr. Jobs concerns, he ex aware Wetterhahn’s Heard, plained considered and decided of a formal absence he, NIERENGARTEN, P.J., grievance1, and LANSING there as union *, steward, could do. and IRVINE JJ. Boddy, production man- Robert

OPINION ager, aware of Var- admitted that he was behavior, him ga’s and met with twice to LANSING, Judge. Boddy he had no means discuss it. claimed representative behavior; curtailing Varga’s however he Training deter- stopped he could have testified that also voluntarily quit job mined that relator by applying Kimm’s Varga’s behavior to the re- cause attributable without Alex disciplinary procedure. graduated spondent employer. Relator seeks review Kimm could agreed that decision, claiming of the Commissioner’s have taken: as a result she had give [Varga] a verbal warn- [T]hey could employer. We re- harassment a fellow two-day, one-day suspension, ing, a verse. Those, three-day, then termination. company can do and has that is what the FACTS employees. done to employed by the Joan Wetterhahn hearing, the referee con- Following the Company packer. In Kimm November had failed to meet cluded that Wetterhahn resigned job, from her proving that she had her burden of claiming Kimm had failed to take ade- * to, by ap- were no other available Acting and because there of the Court of Const, pointment pursuant qualified. to Minn. art. which she was This was confirmed Alex. 1. Wetterhahn testified that she did not file grievance because she was warned

cause, Kimm, On has left “due factors or appeal, directly af- a Commissioner’s circumstances connected” with the firmed, concluding employment. that Kimm not re- Helmin v. Griswold Ribbon sponsible Typewriter, (Minn. did not treat & *3 Ct.App.1984) unreasonably (quoting v. arbitrarily. Hessler American Co., 541, Television & Radio 258 Minn. (I960)). 104 887 In N.W.2d Fer ISSUE guson Department v. Ser Did the Commissioner’s vices, (Minn.1976), 247 895 N.W.2d the su by determining err that harass- preme following court cited the test: good ment did not constitute cause compel circumstances which the de [T]he resign? Wetterhahn to real, employment cision to leave must be substantial, not imaginary, trifling, not ANALYSIS reasonable, whimsical; not voluntarily resigns An individual who compulsion produced must be some disqualified from re- is extraneous and necessitous circumstanc ceiving unemployment compensation bene- es. The standard of what constitutes fits he or prove unless she can the that good the cause is standard of reasonable was with cause attribut- average ness to the man or able to the woman, supersensitive ***. not to the 1(a) (Supp.1987); Zepp Inc., Chips, Arthur Treacher Fish & 272 at 900 Id. n. 5. (Minn.1978). N.W.2d 262 Harassment a co-worker consti the reviewing good quit tute to the employer cause where findings, factual this court is limited to harassment, had notice of the but failed to determining whether there is rea evidence timely appropriate take sonably findings, to sustain the prevent See, Foods, it. McNabb v. Cub 352 viewing the evidence in the most fa 378 Corp. Tru-Stone the vorable to Metro White v. Gutzkow, (Minn.Ct.App. 400 N.W.2d 836 Center, politan Medical 26 1987). (Minn.1983). We take no issue with the the affirmed Commis- findings. Commissioner’s factual sioner's determination an employee that determined, however, Once the facts are quit cause to due to harassment question the an employee whether of taunting, calling, which consisted name law, cause to is one of which this remarks, derogatory and uncomplimentary may independently court review. Porrazzo pictures profanities with names and written Nabisco, underneath. The claims Tru- We with the distinguishable, Stone because there the Commissioner’s conclusion that Kimm’s ac- singled harassment, employee was out for tions in to Wetterhahn’s com- Varga subjected employees whereas plaints were sufficient. We conclude than Wetterhahn to the same behavior. matter of law that Wetterhahn had doWe this is a believe material distinc- resign, because of inade- tion. The fact that an individual has ha- quate response complaints. employees rassed several should not dis- qualify one of those from receiv- cause the em “Good ing unemployment compensation benefits, ployer” require employ does not that the employer’s response to negligent wrongful, er’s actions be Han inadequate. Properties Co., Management son v. IDS 1 (Minn.1976); Department argues 835 n. Neu The that Kimm’s re- Mary’s Hospital bert Nursing sponse complaints v. St. to Wetterhahn’s ad- Center, (Minn.Ct.App. undisputed equate. There is definite and 1985); question evidence, however, employ gradu- is whether that Kimm had a tain them.” disciplinary procedure which the com- ated 549. The record this Varga, despite N.W.2d at before apply to

pany failed evidence court contains which complained on sever- fact that Wetterhahn supports the Commissioner’s Boddy’s al occasions. own admission procedure existed contradicts Kimm’s Viewed griev- that in the absence of a formal claim decision, did the record shows ance Wetterhahn there was Varga’s objectionable take to curb Kimm could do. meeting on at least behavior discussing occasions and two suggestion There is no record frequency with him. extent overly-sensitive the sit- Wetterhahn’s and the *4 uation; rather, indicated that were estab er’s offended largely by testimony nei lished which was language requested and several ther conclusive nor definitive. Under these there were no transfers. Because obtained circumstances, I would defer to the fact- available for which unique opportunity finder’s ineligible for transfer. qualified, she was credibility testimony. Ny of witness See promot- Finally, note that was 824; berg, 243 Minn. at “leadman.” While not ed to Wetterhahn’s Tumquist v. Amoco Oil 397 N.W.2d part management, actually a supervisory nature. appeal, I cannot conclude the record on employ- of an a section leader’s harassment proving her met her burden of There, employer. imputed cause attributa McNabb, relied on which held the court ble to See manager’s knowledge im- that a should be 1(a) (Supp.1987); Marz manager puted employer where the to an Services, 256 Department basically supervi- ‘first “performs level (Minn.1977); 287, 289 see also Lar managerial sory and function’.” Tru- Security, Economic son v. Stone, 352 at 383. (Minn.1979)(the em 281 N.W.2d duty employer to inform his ployee had a alleged harassment to allow the adequate situation; measures Kimm failed to take opportunity to correct the er an charged employer Wetterhahn from harassment could not be with co-worker; therefore, having employee’s termination caused informed). I good cause to the Commissioner’s would affirm Reversed. NIERENGARTEN, J., dissents.

NIERENGARTEN, dissenting. Judge, Although may I respectfully

I dissent. the decision of the referee I representative, and the Commissioner’s Minnesota, Hassan STATE stan affirm the “narrow would because Township, Respondent, requires appeal dard of review” the Commissioner’s factu court to defer to MASLOSKI, Petitioner. Lane Andrew al Co. See Gorecki, also, Nyberg v. R.N. Cardozo & Broth

see Appeals Minnesota. Court 361, 364, er, Inc., 243 Minn. (1954). findings The Commissioner’s reviewed and cannot be disturbed “if to the decision to sus

there is evidence

Case Details

Case Name: Wetterhahn v. Kimm Co.
Court Name: Court of Appeals of Minnesota
Date Published: Sep 27, 1988
Citation: 430 N.W.2d 4
Docket Number: C9-88-1021
Court Abbreviation: Minn. Ct. App.
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