CHEYENNE - The former manager of a Jackson art gallery was fired from the business in 2001 for financial reasons, and not because he suffered from Parkinson's disease, the Wyoming Supreme Court has unanimously ruled.

The case involved Martin-Harris Gallery LLC and the termination of Martin Kruzich.

A state hearing examiner concluded "that the continued ill health of the Gallery's finances in 2001 constituted a valid nondiscriminatory explanation for Kruzich's termination," Chief Justice William U. Hill wrote. "The record supports that conclusion."

Kruzich and Ron Harris opened the gallery in 1991. Harris provided the initial working capital and Kruzich was appointed managing partner with responsibility for running day-to-day operations. In 1995, Kruzich was diagnosed with Parkinson's disease, a chronic progressive nervous disorder.

As the art gallery's financial condition deteriorated, Harris became concerned that Kruzich was not managing the business effectively and that he was not facing the reality of his disease. Harris suggested he check in to a clinic, according to the court opinion.

Kruzich rejected the allegations but told Harris he would check out a treatment program Harris had recommended.

By April 2001, Harris had to loan the gallery $120,000 to keep it afloat, one of several such loans. He also proposed restructuring the staff and reiterated that he was losing confidence in Kruzich's ability to manage and that Kruzich should focus on sales.

Kruzich suggested job duties for himself that differed from Harris' proposal. Kruzich then took a one-month leave of absence on advice of his doctor.

Harris decided to put the gallery up for sale and on June 26, 2001, informed Kruzich that he would not be returning in "any employed or managing capacity." The gallery closed its doors in October 2001.

In September 2001, Kruzich filed a discrimination complaint with the Wyoming Department of Employment, alleging he had been terminated because of his disease.

The department found in favor of Harris, and Kruzich asked for a hearing before the state Office of Administrative Hearings.

Under Wyoming law, a hearing examiner found Kruzich qualified as a "disabled person," defined as "any person who has a physical or mental impairment that substantially limits one or more major life activity, has a record of such impairment, or is regarded as having such an impairment."

Major life activities are defined by the department's rules as caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning or working.

The examiner ruled that Kruzich was a disabled person because although his neurological condition did not substantially limit his ability to perform major life activities, "Harris treated Kruzich as if his medical condition limited Kruzich's ability to work as the Gallery manager."

The hearing examiner concluded that Kruzich had presented a "prima facie" case of discrimination, meaning the evidence was sufficient unless contradicted. But the examiner further concluded that the gallery possessed a "legitimate, nondiscriminatory reason" for terminating Kruzich's employment by evidence of its financial condition.

The examiner disagreed with Kruzich's contention that the evidence of financial problems was merely a pretense for firing him.

The District Court of Teton County supported the hearing examiner's conclusions and Kruzich appealed to the state Supreme Court.

In the opinion issued last week, the justices upheld the District Court and the hearing examiner's rulings.

Hill rejected Kruzich's assertion that the examiner had misapplied the burden of proof, saying that if an employer proffers a legitimate reason for its action, the burden shifts back to the employee to prove "that the employer's explanation is merely a pretext for unlawful discrimination."

Kruzich claimed the hearing examiner did not consider all the evidence in determining whether the gallery's explanation was a pretext. The Supreme Court ruled that Kruzich did not identify any evidence the examiner allegedly failed to consider.

The justices also rejected Kruzich's claim that the examiner's conclusion about the financial condition of the gallery was not supported by the record.

"The record clearly shows that the Gallery's financial health was poor," Hill wrote. " … With the exception of small profits in 1994 and 1997, the Gallery consistently lost money. Harris had to make cash loans to the Gallery every year of its existence but one to ensure solvency."

By September 30, 2001, the gallery owed Harris more than $1 million, Hill wrote.

Capital bureau reporter Robert W. Black can be reached at (307) 632-1244 or {M3robert.black@casperstartribune.net.