ROBERT W. PRATT, District Judge.
On July 25, 2011, a petition captioned "The Estate of Norman Anderson v. Emerson Process Management, Irene Bielen, Craig Rossman (individually and in their official and corporate capacity)" was filed in the Iowa District Court in and for Marshall County. Clerk's No. 1.3. The defendants named in the state court petition removed the action to this Court on September 8, 2011. Clerk's No. 1. On September 15, 2011, the named defendants filed a Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6), asserting that the action must be dismissed for, among other things, lack of standing of "The Estate of Norman Anderson" to bring suit. Clerk's No. 2. On October 11, 2011, an Amended Complaint was filed, naming "Lana Anderson as Administrator of the Estate of Norman Anderson" as the operative named plaintiff. Clerk's No. 6. On October 19, 2011, the Court found the Motion to Dismiss the original state court petition moot.
On October 21, 2011, a Motion to Dismiss Plaintiff's Amended Complaint Pursuant to Rule 12(b)(6) was filed by Bristol, Inc. d/b/a Emerson Process Management and/or d/b/a Remote Automated Solutions, Inc. ("Emerson Process Management"), Irene Bielen ("Bielen"), and Craig Rossman ("Rossman") (collectively "Defendants"). Clerk's No. 9. Lana Anderson, as Administrator of the Estate of Norman Anderson ("Plaintiff") filed a resistance to the Motion on January 19, 2012. Clerk's No. 16. Defendants filed a reply on February 6, 2012. Clerk's No. 21. The matter is fully submitted.
Norman Anderson ("Anderson") began working for Emerson Process Management in Marshalltown, Iowa in 1990. Am. Compl. ¶ 11. He held a variety of positions and, in the relevant time period, was supervised by Rossman and Human Resources Manager Bielen. Id. ¶¶ 12-17. Anderson's last full year of employment with Defendant was 2008 and, during that year, he received a promotion and a raise. Id. ¶¶ 21-23. According to Plaintiff, Defendants had either constructive or actual knowledge that Anderson had severe mental health impairments and suffered from alcohol and prescription drug addictions, depression, a personality disorder, and severe and chronic insomnia. Id. ¶¶ 26-28.
On July 13, 2009, Anderson's mother was ill. Id. ¶ 30. Anderson emailed Rossman about his mother's situation on July 13, 2009, but did not receive a response.
Plaintiff alleges that Defendant terminated Plaintiff for being absent for three days, in direct violation of its Sick Leave Policy, which provided that, "to be eligible for salary continuance, each employee absent due to illness or injury in excess of three (3) days is required to submit a signed doctor's certificate to the Human Resources Department." Id. ¶ 56-58 (emphasis altered from original). Plaintiff further contends that, at the time of Anderson's termination, he was owed 7.5 days of vacation time. Id. ¶¶ 60-63. Plaintiff brings claims against Defendants for: 1) breach of written contract; 2) intentional interference with written contract; 3) fraud; 4) intentional infliction of emotional distress; 5) violation of the Iowa Civil Rights Act ("ICRA"); 6) wrongful discharge; 7) wrongful death; 8) unlawful interference, restraint, or denial of FMLA rights; 9) retaliation for exercising FMLA rights; and 10) disability discrimination in violation of the Americans with Disabilities Act ("ADA").
To survive a Rule 12(b)(6) motion to dismiss for failure to state a claim, a complaint must contain "a short and plain statement of the claim showing that the pleader is entitled to relief." Fed.R.Civ.P. 8(a)(2). In reviewing a complaint, a court must "accept as true all of the factual allegations contained in the complaint," and must draw "all reasonable inferences... in favor of the plaintiff." Schaaf v. Residential Funding Corp., 517 F.3d 544, 549 (8th Cir.2008) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555-56, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)).
A viable complaint must include "sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955).
Twombly, 550 U.S. at 570, 127 S.Ct. 1955. "The plausibility standard requires a plaintiff to show at the pleading stage that success on the merits is more than a `sheer possibility.' It is not, however, a `probability requirement.'" Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 594 (8th Cir. 2009) (quoting Iqbal, 129 S.Ct. at 1949).
The Supreme Court, in Iqbal, described a "two-pronged approach" for evaluating complaints challenged under Rule 12(b)(6). 129 S.Ct. at 1949-50. First, a court should divide the allegations between factual and legal allegations; factual allegations should be accepted as true, but legal allegations should be disregarded. Id. Second, the factual allegations must be parsed for facial plausibility. Id. at 1950.
Id. at 1949 (citing Twombly, 550 U.S. at 570, 127 S.Ct. 1955).
The "parsing" process requires careful examination of the plaintiffs allegations, however, "the complaint should be read as a whole, not parsed piece by piece to determine whether each allegation, in isolation, is plausible." Braden, 588 F.3d at 594. Indeed, "[r]equiring a plaintiff to rule out every possible lawful explanation for the conduct he challenges would invert the principle that the complaint is construed most favorably to the nonmoving party, and would impose the sort of probability requirement at the pleading stage which Iqbal and Twombly explicitly reject." Id. at 597 (internal quotations and citations omitted).
A court will "draw on its judicial experience and common sense" when determining whether a complaint states a plausible claim for relief. Iqbal, 129 S.Ct. at 1949. Thus, the Court may consider other, more likely explanations for the acts described in the complaint when determining whether the pleaded factual allegations give rise to a plausible entitlement to relief. Id. at 1950-51. But, the Court must always be mindful that "a well-pleaded complaint may proceed even if it strikes a savvy judge that actual proof of the facts alleged is improbable, and `that a recovery is very remote and unlikely.'" Twombly, 550 U.S. at 556, 127 S.Ct. 1955 (quoting Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974)). "[W]hile a plaintiff must offer sufficient factual allegations to show that he or she is not merely engaged in a fishing expedition or strike suit, [a court] must also take account of [his or her] limited access to crucial information." Braden, 588 F.3d at 597.
Iowa Code § 611.20 provides that "[a]ll causes of action shall survive and may be brought notwithstanding the death of the person entitled or liable to the same." Iowa Code § 611.22 provides that any action "contemplated in section[] 611.20 ... may be brought ... by or against the legal representatives or successors in interest of the deceased." These statutes, known as survivor statutes, "preserve[] any claim a decedent has prior to death." Estate of Dyer v. Krug, 533 N.W.2d 221, 223 (Iowa 1995). Additionally, claims brought under the survival statutes are "expand[ed] upon death to include
According to Defendants, because the original Petition named the "Estate of Norman Anderson" as plaintiff, it is a legal nullity that did not operate to toll the applicable statutes of limitations in this case.
Interestingly, Defendants target their entire "legally null" argument towards Plaintiff's wrongful death claim, but make no assertions regarding the applicability of this argument toward any of Plaintiff's nine other causes of action. See Defs.' Br. at 4-5 (discussing wrongful death claims, but then concluding that "the Court should dismiss the claims in the Amended Complaint with prejudice as they are time-barred" (emphasis added)); id. at 12 (stating in conclusion section that the "Original Petition, which was filed by the `Estate of Norman Anderson,' a party that did not have standing to sue, was a legal nullity which did not toll the statute of limitations and the action should be dismissed in its entirety pursuant to Rule 12(b)(6)"). As a preliminary matter, the Court notes that even if it accepted Defendants' argument, not all counts asserted in the Amended Complaint would be barred. For instance, while a wrongful death claim is, in fact, subject to a two-year statute of limitations, see Estate of Dyer, 533 N.W.2d at 222, Plaintiff's claim for breach of written contract is subject to a ten year statute of limitations. See Iowa Code § 614.1(5).
Regardless, while it contains some superficial appeal, the Court does not find Defendants' argument convincing. Federal Rule of Civil Procedure 17(a)(1) provides that an "action must be prosecuted in the name of the real party in interest."
In Iowa, the elements of a claim for fraudulent misrepresentation or inducement include: 1) a representation; 2) falsity; 3) materiality; 4) scienter; 5) intent; 6) justifiable reliance; and 7) resulting injury or damage. Whalen v. Connelly, 545 N.W.2d 284, 294 (Iowa 1996). These elements must be established by clear and convincing evidence. Id. "In alleging fraud ... a party must state with particularity the circumstances constituting fraud or mistake." Fed.R.Civ.P. 9(b)
Plaintiff alleges in Count III of the Amended Complaint that Defendants made promises to Anderson via the Sick Leave Policy that constitute either fraudulent misrepresentations or inducements. Am. Compl. ¶ 96. According to Plaintiff, these misrepresentations or inducements were material, were intended to deceive Anderson to get him to "accept greater and greater responsibility, longer and longer work hours, and to remain at Emerson Process Management," and were relied upon by Anderson in "staying at Emerson Process Management and working to the best of his estimable abilities." Id. ¶¶ 98-100.
The allegations of the Amended Complaint are wholly insufficient to state a viable claim for fraud under either Rule 9(b) or Iqbal. Plaintiff first argues that the Amended Complaint identifies the allegedly false representation as the Sick Leave Policy. Pl.'s Br. at 18. Plaintiff contends in her brief, however, that the alleged fraud occurred between July 17, 2009 and July 30, 2009 and, specifically, when Rossman told Anderson via email to keep him updated on Anderson's need to be absent to be with his mother. Id. at 16.
"Iowa is an at-will employment state. This means that, absent a valid contract of employment, `the employment relationship is terminable by either party at any time, for any reason, or no reason at all.'" Berry v. Liberty Holdings, Inc., 803 N.W.2d 106, 109 (Iowa 2011) (quoting Fitzgerald v. Salsbury Chem., Inc., 613 N.W.2d 275, 280 (Iowa 2000) (additional citations and quotations omitted)). Because Anderson is not alleged to have been anything other than an at-will employee, Plaintiff must demonstrate the following elements to sustain a claim for wrongful discharge in violation of public policy: 1) the existence of a clearly defined and well-recognized public policy that protected Anderson's activity; 2) that the public policy would be undermined by Anderson's discharge from employment; 3) that Anderson engaged in the protected activity and his protected conduct was the reason for his discharge; and 4) the employer had no overriding business justification for Anderson's discharge. Id. at 109-10 (citing Lloyd v. Drake Univ., 686 N.W.2d 225, 228 (Iowa 2004)).
Plaintiff's theory of the wrongful discharge claim is that Defendants retaliated against Anderson because he requested and used leave for his mother's illness and death, requested clarification about available leave, and was unable to return to work due to a serious mental health condition. Am. Compl. ¶ 116. Plaintiff contends that "[f]iring an employee [for these reasons is] clearly against public policy under the laws of the State of Iowa." Id. ¶ 117. In her brief, Plaintiff more fully explicates the basis of the wrongful discharge claim, asserting that it is: 1) "against public policy to discharge an employee in retaliation for requesting FMLA leave," see Pl.'s Br. at 24, and 2) "it is against public policy to discharge an employee who is committed to involuntary hospitalization pursuant to a court order." Id. at 33.
Regarding Plaintiff's first assertion that it is against public policy to discharge an employee in retaliation for requesting
Regarding Plaintiff's second assertion that it is against public policy to discharge an employee who is involuntarily hospitalized, Plaintiff's claim also fails as a matter of law. First, while Plaintiff argues in her Brief that Iowa Code §§ 125.81 and 229.6 support the wrongful discharge claim, Plaintiff's Amended Complaint mentions neither of these statutory sections. Indeed, Plaintiff does not even specifically allege that Anderson was discharged because he was involuntarily hospitalized; rather she contends merely that Anderson was fired, in part, for "being unable to return to work due to serious mental health conditions." Am. Compl. ¶ 117. This factual allegation provides an insufficient basis to infer that Plaintiff intended to assert a wrongful discharge claim founded on violation of any public policy stated in Iowa Code §§ 125.81 and 229.6.
Moreover, even if Plaintiff properly pleaded the Iowa Code sections as the basis for her wrongful discharge claim, the claim would still fail. Iowa Code § 229.6 merely provides the mechanisms and procedures whereby a person can be involuntarily hospitalized, whereas Iowa Code § 125.81 provides the procedures for taking an individual who is a chronic substance abuser into immediate custody when there is a danger either to that individual or others. "Even if an employee identifies a statute as an alleged source of public policy, it does not necessarily follow that the statute supports a wrongful discharge claim." Berry, 803 N.W.2d at 110. "[M]any statutes simply regulate conduct between private individuals, or impose requirements whose fulfillment does not implicate fundamental public policy concerns." Id. at 110-11 (quoting Jasper v. H. Nizam, Inc., 764 N.W.2d 751, 765 (Iowa 2009)). To qualify as the type of public policy supporting a wrongful discharge claim, the statute in question must either "expressly protect[] a specific employment activity from retaliation by the employer" or "clearly imply [that it] protects [a] specific employment activity ... from employer retaliation." Id. at 111.
Plaintiff asserts in Count VII that Defendants are liable for Anderson's wrongful death because "Defendants' tortious acts, as described in the preceding counts and paragraphs, resulted in a mental condition which in turn resulted in [Anderson's] uncontrollable impulse to commit suicide, and/or which prevented [Anderson] from realizing the true nature of the act of suicide." Am. Compl. ¶ 121. Defendants argue that the wrongful death claim cannot survive Rule 12(b)(6) because the exclusive remedy for Anderson's death is in workers' compensation benefits. Defs. Br. at 9.
The Iowa workers' compensation statute provides:
Iowa Code § 85.20. Chapter 85 of the Iowa Code "provides a zone of protection in workers' compensation making an employer responsible for workers' compensation benefits only for any and all personal injuries sustained by an employee arising out of and in the course of employment." Thayer v. State, 653 N.W.2d 595, 599 (Iowa 2002) (quotations and citations omitted).
Id. at 599-600. The term "injury" "encompasses a mental injury as well as a physical injury." Dunlavey v. Economy Fire & Cas. Co., 526 N.W.2d 845, 851 (Iowa 1995). In a case of mental injury
Plaintiff argues that the wrongful death claim in this action does not fall within the exclusivity provision of § 85.20 because "the wrongful death cause of action did not arise while [Anderson] was acting within the scope of his employment nor did it arise out of and in the course of his employment; the actions arose after he was terminated from his employment with Defendants." Pl.'s Br. at 39. More specifically, Plaintiff urges that none of the mental health or substance abuse issues Anderson experienced during his employment were caused by Defendants; rather "the mental anguish of [Anderson] being fired was realized after his employment ended, thereby pulling the wrongful death outside the realm of compensable injuries for workers' compensation." Id. at 41.
The pivotal question in the inquiry is whether Defendants' act of terminating Plaintiff "arose out of and in the course of employment." Though Defendants point out that the "act of termination" is deemed in the context of wrongful termination and discrimination claims to "occur[] while a person is employed, not after," see Defs. Br. at 12, the issue appears to be one of first impression under Iowa's workers' compensation law. Courts that have addressed the issue have reached differing conclusions on whether a termination does, in fact, "arise out of and in the course of employment." Compare Vieira v. Wal-Mart Stores, Inc., No. 00-272-P-H, 2000 WL 1840081, at *2 (D.Me. Dec. 15, 2000) ("Termination of employment arises out of and in the course of employment; it could not arise out of anything else."); Shoemaker v. Myers, 52 Cal.3d 1, 18, 20, 276 Cal.Rptr. 303, 801 P.2d 1054 (Cal.1990) (noting that demotion, transfer, and discipline are included within the ambit of workers' compensation and that "[n]onconsensual termination of an employment relationship is indistinguishable from [such actions] and must therefore also be considered a normal and inherent part of employment"); and Thorn v. Radix Corp., No. 89-C-727W, 1990 WL 364774, at *2 (D.Utah Oct. 30, 1990) ("Because the act of wrongfully terminating an employee, the basis of plaintiff's claim here, arises out of and in the course of employment, plaintiff's claim is compensable under the Workers' Compensation Act, and thus barred by the Act's exclusive remedy provision.") with Kientzy v. McDonnell Douglas Corp., 990 F.2d 1051 (8th Cir.1993) (stating without explanation that a plaintiff's emotional distress injuries were not preempted by the Missouri workers' compensation act because "her unemployment, as a result of a discriminatory discharge, caused her distress"); and Patterson v. Dayton Freight Lines, Inc., No. 4:07-cv-1225, 2007 WL 4640520, at *4 (E.D.Mo. Dec. 31, 2007) (citing Kientzy and reaching an identical conclusion); Fulco v. Norwich Roman Catholic Diocesan Corp., 27 Conn.App. 800, 609 A.2d 1034, 1038 (1992) (stating
In light of the Eighth Circuit's Kientzy decision, the lack of clarity on the legal question of whether the act of termination arises out of and in the course of employment, and the Court's obligation to construe the Amended Complaint in the light most favorable to Plaintiff, the Court declines to hold Plaintiff's wrongful death claim preempted by Iowa's workers' compensation statute at this juncture. Defendants, however, remain free to seek dismissal or summary judgment on Plaintiffs wrongful death claim on the basis of the workers' compensation statute or on any other basis at a future point in the litigation when the factual contours of the claim are more fully developed.
For the reasons stated herein, Defendants' Motion to Dismiss (Clerk's No. 21) is GRANTED IN PART and DENIED IN PART. Specifically, the Motion is granted with respect to Counts III and VI of the Amended Complaint, and denied as to all remaining counts.
IT IS SO ORDERED.