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Sellner v. MAT Holdings, Inc.

United States Court of Appeals, Eighth Circuit

June 15, 2017

Douglas James Sellner Plaintiff- Appellant
MAT Holdings, Inc.; Midwest Air Technologies, Inc.; MAT Industries LLC; Sanborn Manufacturing Company Defendants - Appellees

          Submitted: January 10, 2017

         Appeal from United States District Court for the District of Minnesota - Minneapolis

          Before RILEY, Chief Judge [1] , WOLLMAN and BENTON, Circuit Judges.

          BENTON, Circuit Judge.

         Douglas J. Sellner sued his former employer, MAT Holdings and its subsidiaries Midwest Air Technologies, Inc., MAT Industries, and Sanborn Manufacturing Company (collectively "MAT"). He alleges retaliation under the Minnesota Whistleblower Act, Minn. Stat. § 181.932. The district court granted summary judgment to MAT. Having jurisdiction under 28 U.S.C. 1291, this court reverses and remands.


         MAT manufactures and markets air compressors, pneumatic air tools, and pressure washers-all sold at retailers and home centers. In June 2011, MAT hired Sellner as a lab-quality technician at its facility in Springfield, Minnesota. His primary responsibility was to conduct lab testing and report the results to supervisors. Travis W. Strong, the Quality Assurance and Product Service Manager, was Sellner's direct supervisor. Alan D. ("Butch") Stark is the facility's general manager.

         On Sellner's first day, Strong told him that one of MAT's products, the Honbase pump, had serious problems with oil leakage during testing. In August 2011, MAT began working with the retailer Sears to add a compressor with the Honbase pump to Sears' Craftsman product line. Later that month, Sellner was assigned to complete testing whether certain changes to the Honbase pump improved oil consumption and life performance.

         On March 29, 2012, Sellner alleges Stark told him to "get together everything [they] had on the [Honbase] pump." Sellner gathered and delivered the data to Stark. According to Sellner, later that day Engineering Lab Manager Joel D. Schiller said that the results Sellner compiled were "sh*t" and could not be used in any report for Sears.

         Sellner claims that within hours, Stark entered his office and said Sears called MAT "on the carpet" for overstating the performance and quality of the Honbase pump. Stark then allegedly told Sellner to produce a report showing no major issues with the Honbase pump. Sellner says that when he told Stark that no units performed without major issues, Stark said, "well, if you don't do this, we're all going to be on the street-no, you're going to be on the street." Sellner states that when he told Stark that he would not falsify any testing data and that his request was illegal, Stark said he should "get creative with [his] documentation." In his testimony, Joshua Beach, a lab technician, swears he overheard these parts of the conversation: Stark saying that Sears was calling MAT "on the carpet, " Stark encouraging Sellner to get creative with testing, and Sellner refusing. Beach says that after the conversation with Stark, Sellner said, "Well, there's my job." According to Sellner, Stark continued to return to his office throughout the day, pressuring him to complete a report with falsified data.

         Sellner testified that throughout the next day, March 30, Stark continued to pressure him, and Sellner continued to refuse. Later that day, Sellner called the Minnesota Department of Labor and Industry (MNOSHA). He reported he was instructed to "doctor up some documentation." He also filled out an online form. Beach swears that "a day or two" later, he told Strong about Sellner's report to MNOSHA.

         On March 30, MAT posted a job opening for a Quality Assurance/Test Lab Leadperson. Strong recommended Sellner for the promotion; Stark approved. Sellner learned of his promotion on April 3, just before he and Strong left for China on business. On April 10, while Sellner was in China, Janis Nebel, the corporate Director of Human Resources at MAT, received an anonymous email accusing Sellner of inappropriate conduct. On April 16, Sellner returned from China. Strong recommended an above-standard pay increase along with the promotion, saying that Sellner "brought vast intellectual knowledge and experience across all facets." Strong and Stark signed the paperwork proposing the pay increase.

         Nebel investigated, on-site, personnel issues at the Springfield facility from April 23 through 25. Several employees met with Nebel and made allegations about Sellner's workplace behavior. Sellner says that he told Nebel he was asked to "fudge test results out of the lab when the units were failing to save the Sears contract." The next day, Sellner was terminated. He never received the pay increase or the promotion. MAT maintains it fired Sellner for "unacceptable conduct" including "inappropriate and offensive statements made to and about his colleagues, and inability to maintain positive and productive relationships with his co-workers, and engaging in conduct that adversely affected the productivity of the workplace."

         Sellner sued MAT for wrongful termination under the Minnesota Whistleblower Act (MWA), Minn. Stat. § 181.932. The district court granted MAT summary judgment on the MWA claim. Sellner also brought five other claims, which the district court ...

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