Owner of LLC Cannot Sue Another Business For Discrimination Under Minn. Law

Friend of the blog, Jack Sargent poses this question: guess who loses what happens when gross sexual discrimination meets statutory construction in the Minnesota Court of Appeals?

Minnesota public radio provides the report of the decision in Krueger v. Zeman Construction Co., 08-0206 (Minn. Ct. App. Dec. 30, 2008).

The state Court of Appeals has ruled against the owner of a limited liability company who tried to personally sue another business for discrimination.

Like corporations, limited liability company owners are typically off the hook personally from lawsuits filed against their companies.

The owner of Diamond Dust drywall, LLC tried to sue Zeman Construction, alleging Zeman's managers sexually harassed and discriminated against her as a subcontractor on a work project.

By a vote of 2 to 1, the panel ruled she did not have the right to sue because her company, rather than the owner herself entered into a contract with Zeman.

But judge David Minge disagreed. He said Minnesota law "in its simplest, stripped-down form prohibits business practices that 'discriminate in the . . . performance of the contract because of a persons . . . sex.'"

I agree with Jack on this one: so much for the liberal interpretation of remedial legislation.

PS