Justia Labor & Employment Law Opinion Summaries

Adrianne Cotton filed a charge of discrimination against the Montana Department of Corrections (DOC), alleging retaliation for protected activity when her position was eliminated. Cotton had been employed by DOC since 2011 and held the position of government relations director. She reported concerns about the conduct of DOC Director Reginald Michael in 2017, which led to an investigation. Subsequently, an organizational assessment recommended eliminating Cotton's position, among others, due to budgetary and structural issues.The case was first reviewed by Hearing Officer Holien, who held a contested case hearing and found that DOC had legitimate, non-discriminatory reasons for eliminating Cotton's position and did not retaliate against her. Cotton appealed to the Human Rights Commission, which rejected Holien's conclusions of law, citing the temporal proximity between Cotton's protected activity and the adverse employment action as sufficient evidence of retaliation. The Commission did not find that Holien's findings of fact were unsupported by substantial evidence.The case was then reviewed by the District Court of the First Judicial District, which found that the Commission exceeded its statutory authority by reweighing the evidence and substituting its judgment for that of the hearing officer. The District Court reversed the Commission's order and reinstated Holien's decision as the final agency decision.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court's decision. The Court held that the Commission had abused its discretion by not adhering to the proper standard of review and by reweighing evidence that supported Holien's findings. The Supreme Court concluded that the District Court did not err in reinstating Holien's findings as the final agency decision, as they were supported by substantial evidence in the record. View "Cotton v. Dept. of Corrections" on Justia Law

In August 2020, Kimberly Strable, who was under 18, inquired about a managerial position at Arby’s in Great Falls but was told she could not apply due to her age. Strable filed an age discrimination claim with the Montana Human Rights Bureau (HRB), which issued a reasonable cause determination. The parties entered into a conciliation process, and Strable’s attorney and Arby’s attorney reached an agreement in principle for a $25,000 settlement, subject to a mutually agreeable settlement agreement. However, the parties did not finalize or sign the draft conciliation agreement, which included affirmative relief provisions required by the HRB.The First Judicial District Court, Lewis and Clark County, granted summary judgment in favor of Arby’s, finding that no enforceable contract existed between the parties. The court noted that the negotiations were part of an ongoing HRB case and that Arby’s had not consented to the affirmative relief provisions, which were essential terms of the conciliation agreement.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court’s decision. The court held that the essential element of consent was lacking because the parties had not agreed on all essential terms, including the HRB’s affirmative relief provisions. The court emphasized that a binding contract requires mutual consent on all essential terms, and in this case, Arby’s could not consent to terms it was unaware of. Therefore, the court concluded that no enforceable contract existed, and summary judgment in favor of Arby’s was appropriate. View "Strable v. Carisch" on Justia Law

The case involves a dispute between Judge Kerry L. Burman, the Glendive City Judge, and Mayor Deb Dion of Glendive, Montana. Judge Burman petitioned for a writ of mandamus to reinstate Mary York to her position as Clerk of Glendive City Court after Mayor Dion terminated York's employment. The termination occurred following a disagreement over the justification for York's attendance at a training conference. York was terminated without notice and escorted out of the court, leaving unfinished work and causing operational disruptions.The District Court initially ordered York's interim reinstatement pending further review. Judge Burman argued that Mayor Dion's actions violated state statute, the court's holding in Carlson v. City of Bozeman, and the constitutional doctrine of separation of powers. Respondents contended that Mayor Dion had the statutory authority to terminate York, who was still in her probationary period, and that the court's operations were not significantly impaired.The Supreme Court of the State of Montana reviewed the case. The court determined that the matter was more appropriately characterized as an application for a writ of prohibition rather than mandamus. The court found that Mayor Dion's actions disrupted the court's operations and violated § 3-1-111, MCA, which grants courts the authority to control their ministerial officers. The court held that the executive's authority to hire or fire employees must be exercised in a manner that does not impair the court's ability to conduct its business.The Supreme Court of Montana granted the petition for a writ of prohibition, arresting Mayor Dion's action of terminating York's employment. The court emphasized the need for coordination between branches of government to avoid such disruptions. View "Burman v. City of Glendive" on Justia Law

Shawn Fowler, a former Montana state trooper, sued the Department of Justice, Montana Highway Patrol (MHP) alleging constructive discharge in violation of the Wrongful Discharge from Employment Act (WDEA). He also alleged breach of contract by the Montana Public Employees Association (MPEA) for declining his request to arbitrate. Fowler claimed that he was forced to retire due to a hostile work environment, which was mainly due to disciplinary action taken against him for mishandling two suspected DUI traffic stops in 2017. The MHP argued that Fowler, who was covered by a collective bargaining agreement (CBA), failed to exhaust the grievance procedures of the CBA before filing a lawsuit.The Supreme Court of the State of Montana reversed the judgment of the Sixth Judicial District Court, Park County. The Supreme Court held that an employee covered by a CBA can't bring a claim under the WDEA. The Court determined that Fowler’s alleged constructive discharge was covered by the CBA and he was required to exhaust the grievance procedures for a constructive discharge through the CBA. The Court found that Fowler did not grieve any of the events preceding his suspension, which he claimed contributed to his constructive discharge, and he resigned from employment prior to exhausting the grievance procedure of the CBA. The Court concluded that the District Court erred in denying the State’s two motions for summary judgment and reversed the judgment. View "Fowler v. Department of Justice" on Justia Law

In the case heard by the Supreme Court of the State of Montana, Caryn Miske, the plaintiff and appellant, was appealing a district court decision that granted the Department of Natural Resources and Conservation (DNRC) summary judgment on all of her claims that arose from her termination by the DNRC from the Flathead Basin Commission.The primary facts of the case involve Miske's employment as the Executive Director of the Flathead Basin Commission, a body established by the 1983 Legislature to protect the environment of Flathead Lake and its tributaries. The Commission is administratively attached to the DNRC, a relationship that Miske argued allowed the Commission independent authority over staffing decisions. However, the DNRC contended that the Commission and DNRC share concurrent authority over staffing decisions.The court affirmed the district court's grant of summary judgment to the DNRC on all of Miske's claims. It held that, based on the plain language and structure of the relevant statutes, the DNRC and the Commission have concurrent authority over staffing decisions, and therefore, Miske was a DNRC employee.The court also ruled that the DNRC didn't commit intentional interference with contractual relations as it wasn't a stranger to Miske's relationship with the Commission. Additionally, the court found that Miske's lobbying efforts on behalf of the Commission were made in her capacity as a DNRC employee and thus were not protected political speech. Lastly, the court held that the DNRC had good cause to terminate Miske due to her repeated failures to provide the DNRC with state-issued credit card statements, which constituted a legitimate business reason for her termination. View "Miske v. DNRC" on Justia Law

In the case before the Supreme Court of the State of Montana, the petitioner, Jay Watson, filed a grievance against his employer, the Montana Department of Fish, Wildlife and Parks (FWP or agency), claiming he was underpaid for six years due to an agency error in implementing a new pay system. The Thirteenth Judicial District Court, Yellowstone County, ruled in favor of Watson and reversed the Final Agency Decision issued by the Board of Personnel Appeals (BOPA or Board). The court also awarded attorney fees to Watson. FWP appealed this decision to the Supreme Court of the State of Montana.The Supreme Court held that the District Court did not err in reversing BOPA’s decision. The court found that BOPA incorrectly applied the Montana Wage Payment Act (MWPA) to Watson's grievance, which was pursued under the agency's grievance process. The court found that the MWPA provides a process independent from the agency grievance process and its restrictions and benefits do not apply to Watson's claim. As such, the MWPA's three-year limitation does not apply to Watson’s claim, and the court affirmed the District Court’s reinstatement of the Hearing Officer’s pay determination.However, the Supreme Court held that the District Court erred in awarding attorney fees to Watson. The court noted that Montana follows the “American Rule” regarding fee awards, which provides that “absent statutory or contractual authority, attorney’s fees will not be awarded to the prevailing party in a lawsuit.” There was no contractual or statutory authority providing for attorney fee awards for prevailing parties in this case, and the court found that this case was not frivolous litigation or litigated inappropriately by FWP. Therefore, an exception to the generally applicable American Rule was not established. The court reversed the attorney fee award and remanded for entry of an amended judgment. View "Watson v. FWP" on Justia Law

In the case before the Supreme Court of the State of Montana, the plaintiff, Kevin Barber, appealed against his former employer, Bradford Aquatic Group, LLC, alleging wrongful termination. Bradford Aquatic Group, a North Carolina-based company, had employed Barber as a Regional Business Development Manager for its Rocky Mountain region, which includes Montana. The employment contract between Barber and the company included a choice-of-law and forum selection clause, specifying that any disputes arising from the agreement would be governed by North Carolina law and adjudicated in North Carolina courts.Barber, a resident of Montana, argued that Montana law should apply to his claims of wrongful discharge, breach of contract, and bad faith, and that the suit should be heard in Montana. The district court dismissed Barber's claims due to improper venue, based on the choice-of-law and forum selection clauses in the employment agreement.Upon review, the Supreme Court of the State of Montana affirmed the district court's decision. The court found that the choice-of-law provision in the employment agreement was valid and that North Carolina law should apply to Barber's claims. The court also upheld the validity of the forum selection clause, concluding that it is enforceable under North Carolina law. Therefore, the court determined that the dispute should be adjudicated in North Carolina, not Montana. View "Barber v. Bradford Aquatic" on Justia Law

The Supreme Court affirmed the judgment and orders approving a settlement between Robert Allum and Montana State Fund and dismissing Allum's claims for benefits, holding that Allum resolved all of his dispute benefits, and therefore, the Workers' Compensation Court (WCC) did not have jurisdiction over Allum's remaining stand-alone constitutional challenges.The State Fund accepted liability for the knee injury Allum received at work. Later, Allum notified State Fund that he also asserted a back condition resultant from his knee injury. Allum filed a petition seeking a hearing on his injury claims and also sought a hearing on his claims challenging the constitutionality of the Montana Workers' Compensation Act and the WCC. Allum and State Fund settled the injury claims prior to trial. The WCC approved the settlement agreement and then concluded that it lacked jurisdiction to address Allum's constitutional challenges because Allum had resolved all of his benefit disputes. The Supreme Court affirmed, holding that the WCC's conclusions of law were correct. View "Allum v. Mont. State Fund" on Justia Law

The Supreme Court affirmed the rulings of the Workers' Compensation Court (WCC) determining that Johnny Lee Sheldon's claim was compensable, that Contessa Bryer, Sheldon's guardian and conservator, was entitled to her attorney fees, and that a statutory penalty should be imposed against Accident Fund General Insurance Company, holding that the WCC did not err.Sheldon was rendered incapacitated and mentally incompetent after a workplace accident. Because Accident Fund General Insurance Company refused to accept liability for Sheldon's workers' compensation claim Bryer, Sheldon's guardian and conservator, petitioned the WCC for a hearing. The WCC ruled that Accident Fund was liable for Sheldon's injuries and that Bryer was entitled to attorney fees and a statutory penalty. The Supreme Court affirmed, holding that the WCC did not err when it (1) ruled that the statute of limitations was tolled during the time that Sheldon had no appointed guardian; (2) found that substantial credible evidence supported the WCC's finding that Sheldon was working with argon when the pressure relief valve burst; and (3) awarded attorney fees under Mont. Code Ann. 39-71-611 and by imposing a penalty against Accident Fund under Mont. Code Ann. 39-71-2907. View "Bryer v. Accident Fund General Insurance Co." on Justia Law

The Supreme Court accepted certification of a state law question submitted by the United States Court of Appeals for the Ninth Circuit and answered that the holding in Galbreath v. Golden Sunlight Mines, Inc., 890 P.2d 382 (Mont. 1995), has not been superseded by the 1999 statutory amendments to Mont. Code Ann. 39-2-801.At issue was whether, in an action for wrongful discharge pursuant to Mont. Code Ann. 39-2-904, an employer may defend an employee's termination solely for reasons given in a discharge letter, as held in Galbreath, or whether the 1999 statutory amendments, which allowed employers to use reasons other than the reason provided in the discharge letter to defend against a wrongful discharge action, superseded the Galbreath Rule. The Supreme Court answered in the negative, holding that the Galbreath Rule was not superseded by the 1999 statutory amendments. View "Smith v. Charter Communications, Inc." on Justia Law