Ruling allows woman to sue bank

A Spokane woman can sue U.S. Bank Corp. in state court for age discrimination because the U.S. 9th Circuit Court of Appeals has ruled that federal banking laws don’t trump all state anti-discrimination rules.

The ruling sets a new precedent when it comes to employees’ rights under the 1864 National Bank Act.

Kathy Kroske alleged in her lawsuit that U.S. Bank Corp. fired her as the bank’s Manito branch manager because of her age. She was 51 at the time.

Kroske sued in Washington State Superior Court because the deadline to file a federal case had already passed.

But U.S. Bank’s attorneys argued that as an officer of the bank, appointed by the board of directors, Kroske could be dismissed at their pleasure, according to the National Bank Act. State laws can’t supersede federal law, they said.

Judge Richard Paez wrote in the 3-0 ruling, however, that because federal laws also govern employment discrimination related to age, banks are required to follow similar state laws, and plaintiffs can sue under those laws.

Lower-level bank employees, such as tellers, aren’t covered by the National Bank Act.

The 9th Circuit opinion doesn’t make a ruling on the age discrimination case itself, only on Kroske’s right to pursue her case in Washington state court.

In her suit, Kroske alleged that at age 51 she was given less time to meet bank goals than branch managers in their 20s and 30s and that once fired she was replaced by a manager in his mid-20s with less experience than Kroske.

Both Kroske and U.S. Bank officials declined to comment Tuesday on the ruling or the case.