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Rudebeck v. Paulson

6/27/2000

at he was an employee of Ford. This section applies where one eligible for indemnification under the statute "successfully defends against claims of personal liability that arise from or have a nexus to his corporate position." Id. at 692. Paulson asserts that absent the employment relationship, Rudebeck would have had no cause of action, and he was made a party to the proceeding by reason of the fact that he was a Ford employee. Ford disagrees, contending the claims under the Minnesota Human Rights Act for aiding and abetting and reprisal do not require an employment relationship, and instead apply to "any person." Minn. Stat. ยงรก363.03, subds. 6, 7 (1998). Further, Ford argues that Rudebeck's claims against Paulson do not arise from or have a sufficient nexus to his duties as area manager. Instead, her claims were based on sexual harassment, and Ford has a zero-tolerance policy against sexual harassment.


In a very recent California case, this question was addressed. Jacobus v. Krambo Corp., 78 Cal.App. 4th 1096 (Cal. Ct. App. 2000). There, the employee sued the employer for indemnification of legal costs he incurred in successfully defending against a sexual harassment suit brought by a co-worker. The court noted that "social interactions among employees * * * are broadly incidental to the enterprise of an employer." Id. at 1103.


These expressions of human nature are incidents inseparable from working together. They involve risks of injury , and these risks are inherent in the working environment. Id. at 1103-04 (citation omitted).


In an office where "sexual joking and profanity were commonplace" and the facts suggested the employee developed her sexual harassment claim to gain an advantage in employment, the court held that:


In our view, the risk that one worker may accuse another of sexual harassment to deflect an adverse performance review is a risk inherent in employment * * *. If the employer chooses not to defend the accused employee in the lawsuit, then the employer must pay the defense costs of the exonerated employee. Id. at 1104.


In this case, the district court determined that, based on Rudebeck's pattern of continued voluntary association with Paulson, her claim of harassment was not credible. Based on the reasoning in Jacobus, Paulson is entitled to indemnification from Ford for successfully defending against Rudebeck's lawsuit.


DECISION


The decision of the district court granting summary judgment on the defamation claim is affirmed. The decision regarding indemnification is reversed.


Affirmed in part, reversed in part, and remanded.




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