Delaney v. Bank of America Corp.
908 F. Supp. 2d 498
S.D.N.Y.2012Background
- Delaney began at NationsBank in 1996, continued after BoA/NationsBank merger, and remained in High Yield post-merger.
- In 2006 Delaney moved to the Fixed Income Middle Markets Sales Group, earning commissions based on production revenue.
- In 2009 BoA acquired Merrill Lynch; Amy Ellis-Simon became Middle Markets manager; Delaney’s 2009 performance was strong.
- In March 2010 Delaney transferred back to High Yield on a salary-plus-bonus model; he alleges an oral promise about account assignments.
- In August/September 2010 BoA initiated a company-wide RIF; Delaney, age 56, was terminated and was the oldest High Yield employee terminated.
- Delaney asserts a 2010 oral agreement to provide sufficient accounts to secure compensation equal to or greater than 2009; BoA contends the promise was not definite and not enforceable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| ADEA prima facie showing of discrimination | Delaney relies on age and out-of-group terminations and account reallocation. | Oldest employee in group alone does not prove discrimination; RIF served a non-discriminatory purpose. | No genuine inference of age discrimination; prima facie not established. |
| Pretext and but-for causation under ADEA | Evidentiary pattern shows discriminatory intent behind the RIF. | RIF based on performance; reasons are legitimate and not pretextual. | No pretext; but-for causation not shown; ADEA claim granted summary judgment for BoA. |
| Contract claim—existence and definiteness of oral promise | Delaney trusted an oral understanding that accounts would be transferred to enable earning a high bonus. | Oral terms are indefinite; Incentive Plan discretionary; no binding contract modification. | No enforceable oral contract; contract claim fails as a matter of law. |
| Remand to FINRA vs. retain jurisdiction | If ADEA claim is resolved, contract claim should be remanded to FINRA. | Retain jurisdiction; joinder and efficiency favor resolving all claims now. | Court retains jurisdiction and grants summary judgment for BoA on contract claim. |
Key Cases Cited
- Gorzynski v. JetBlue Airways Corp., 596 F.3d 93 (2d Cir. 2010) (burden-shifting framework for ADEA discrimination claims; but-for causation after Gross)
- McDonnell Douglas Corp. v. Green, 411 U.S. 792 (U.S. 1973) (prima facie case and burden-shifting framework)
- Gross v. FBL Financial Services, Inc., 557 U.S. 167 (U.S. 2009) (but-for causation required for ADEA discrimination)
- U.S. v. Burdine, 450 U.S. 248 (U.S. 1981) (Burdine pretext framework for evaluating employer's reason)
- Carlton v. Mystic Transp., Inc., 202 F.3d 129 (2d Cir. 2000) (RIF context; age-based termination not permitted; but reason must be non-discriminatory)