Edward J. Brown v. M & M/marsEdward J. Brown v. M & M/mars
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M & M/Mаrs (Mars) fired Edward Brown on July 1, 1983. Brown was 47 years old. Brown sued Mars, alleging that Mars had fired him because of his age in violation of the Age Discrimination in Employment Act,
I.
In an age discrimination case, a plaintiff must prove that age was a determining factor in, or, in other words, a “but for” cause of an adverse employment decision. See, e.g.,
Maguire v. Marquette University,
After having worked in Mars’ Chicago candy plant since 1961, Brown became “shift manager” of B shift, the plant’s afternoon shift, in July 1978. About an hour after B shift started on June 14, 1983, workers had to shut down line 9 (one of the plant’s production lines) when a relief operator inadvertently flooded the line’s caramel cookers after failing to notice that a water valve was incorrectly positioned. The workers on line 9 made several attempts to restart the line during B shift but were unable to do so before the shift ended. Workеrs on C shift (the plant’s “graveyard” shift) were finally able to restart the line about one and one-half hours after their shift started.
Richard Vincent, the Chicago plant’s production manager and Brown’s direct supervisor, found out about the “down-time incident” the next day. By Friday, June 17, Vincent had decided to remove Brown from his position as B shift manager. On July 1, 1983, Vincent, after investigating the incident and consulting with Vera Blanchet, the plant’s Personnel Director, fired Brown.
Mars contends that it fired Brown because of a series of problems with Brown’s performance as B shift manager that culminated in the June down-time incident, and that no reasonable jury could believe otherwise. Thе record does contain evidence from which the jury could have found Brown’s performance led to his firing. Vincent testified that Brown consistently, and at times antagonistically, resisted the changes in operating procedures that Vincent attempted to implement to make the Chicago plant more efficient and profitable. Vincent also testified that Brown did not work well with other shift managers, that Brown did not properly train and delegate responsibility to subordinates, and that Brown lacked flexibility in solving problems. During the time Vincent was Brown’s direct supervisor — August 1980 until Brown’s firing — Vincent’s writ
According to Vincent, the down-time incident led to Brown’s firing because it directly rеsulted from Brown’s deficiencies as a manager. Vincent described the incident as a “comedy of errors” caused by “people problems.” According to Vincent, properly trained employees should have been able to restart line 9 well before B shift ended. Vincent said he was especially displeased with the performance of Matt Armstrong, the Mars employee who directly supervised line 9 on the B shift. In fact, Vincent had earlier stated to Brown that Armstrong was incapable of running line 9 and had suggested that Brown either transfer, demote, or fire Armstrong.
Mars witnesses also stated that if Brown’s subordinates could not solve the problеm on line 9, then Brown himself should have become more actively involved. On the night of the down-time incident, Brown was working on a project involving another production line and only briefly visited line 9 once after learning about the problem on the line. Bill Benzinger, the A shift manager, testified that when he asked Brown why he had not become more involved, Brown replied, “Well, Dick [Vincent] wanted me to give my supervisors more responsibility, and so I did.” According to Mars, this statement demonstrates Brown's recalcitrant and antagonistic attitude toward Vincent and the changes Vincent was trying to implement.
Based on this evidence, Mars argues that the jury had no choice but tо reject Brown’s claim. But Mars argues as if the jury was required to believe its version of events. The jury was not; and the record discloses ample evidence from which the jury could have found that Mars’ asserted reasons for firing Brown were pretextual.
Brown introduced evidence from which the jury could believe that he was a loyal, conscientious worker and an effective manager. Brown’s shift consistently produced more candy and controlled scrap and product quality better than the other two shifts. The jury also could have concluded that Brown’s shift was more profitable than the other two shifts.
Mars protests that the evidence of Brown’s productivity is not probative of pretext because it does not directly address the specific reasons for which Mars claims it fired Brown: his resistance to change, his inflexibility in problem-solving, his failure to train and delegate responsibility to subordinates, and his antagonistic attitude. To a certain extent this is true. A company has a right to expect not only that its employees be productive but that they be productive in the company’s way. But a relationship between a plant’s or an individual shift’s productivity and its supervisor’s managerial skills normally exists. The jury could reasonably infer that B shift could not have been as productive as it was if Brown really was inflexible and negative, or poorly trained his subordinates. Poorly trained and motivated workers do not normally outperform their better-trained and motivated counterparts. Thus, Brown’s positive performance could, in a reasonable juror’s mind, undercut Mars’ asserted reasons for firing Brown and suggest pretext.
In any event, there was also evidence that directly addressed and countered Brown’s purported inflexibility, resistance to change, and failure to train and delegate responsibility to subordinates. Witnesses, including Mars’ own, testified that Brown was as or more effective than other shift managers in coordinating his shift with other shifts and in getting his own shift to work togеther as a team. Without getting into unnecessary detail, there was also testimony that Brown made positive contributions to plant productivity and morale, effectively trained his subordinates, delegated responsibility (including the responsibility for preparing hourly employee performance evaluations, allegedly a particular sore spot for Vincent) to subordinates, and accepted and sometimes even initiated changes in operating procedures to improve performance. In short, there was ample evidence from which the jury could conclude that Brown was effective in the areas in which Mars аsserted he was not.
Mars correctly asserts that evidence that Brown was performing well does not necessarily prove that its аsserted reasons for firing him were pretextual. Vincent may have been mistaken about Brown’s performance but an employer that is mistaken about its reasons for firing an employee but honestly believes those reasons does not violate the ADEA.
Weihaupt v. American Medical Ass’n,
We disagree. For one thing, the jury could have concluded that Vincent and his superiors considered production, product quality, and ultimately profit to be the most important indicators of managerial performanсe. Vincent testified that production and profitability were important in evaluating a shift manager’s performance. Moreover, Vincent regularly held meetings with his three shift managers. Guy Klinz-ing and Bill Benzinger, the C and A shift managers, testified that these meetings generally focused on productivity, scrap levels, product quality, and absenteeism control. The jury could reasonably conclude that the subjects that Vincent harped on when he met with his managers were the subjects that made the most difference to him, and therefore that the reasons he gave for firing Brown were not the true reasons.
Moreover, it was reasonable for the jury to infer that if fellоw employees who worked with Brown testified that Brown performed well in the areas in which Vincent testified Brown was deficient, then Vincent could not have sincerely believed that Brown was not performing well. Cf.
Graefenhain v. Pabst Brewing Co.,
Finally, the jury cоuld conclude that Vincent did not fire Brown because of the down-time incident. Since Vincent investigated the incident, it is reasonable to conclude that Vincent learned the facts surrounding the incident, including Brown’s version of the incident. If the jury believed Brown’s version, it could infer that Vincent knew that version and also believed it. Thus, the jury could have found that Vincent believed that circumstances beyond Brown’s control, not “people problems,” improper training, or managerial incompetence, caused the down-time. This inference is buttressed by Vincent’s testimony about his displeasure with Armstrong. Although Vincent said he thought Armstrong did a poor job and was not сompetent to run line 9, there is no evidence that Mars ever disciplined Armstrong because of the down-time incident; in fact, at the time of trial, Armstrong still worked for Mars. There was also evidence that similar down-time incidents occurred at the plant and that Mars had never fired anybody because of down-time.
Eliminating Brown’s performance and the down-time incident as reasons for firing Brown leaves the “antagonistic” relationship between Brown and Vincent as a reason for firing Brown. Firing Brown because of his inability to get along with Vincent would not violate the ADEA. Cf.
La Montagne v. American Convenience Products, Inc.,
Mars notes that shortly after his firing, Brown indicated that Vincent fired him because the two “never did get along,” and because Vincent had a “personal vendetta” against him. But while these were potentially damning admissions by Brown, they did not compel a finding of no discrimination as a matter of law. A plaintiff’s statement about what he believes is the reason for his firing does not necessarily рrove that that belief is correct. In fact, the document that contained the “personal vendetta” statement (a letter that Brown wrote shortly after his firing to Forrest Mars, Jr., Mars’ President) also referred to age discrimination as a possible reason for Brown’s firing. The jurors could evaluate Brown’s statements in light of all the evidence and give those statements the weight they felt appropriate.
There was sufficient evidence for the jury to conclude that the reasons Mars gave for firing Brown were pretextual. But as we noted in
Pollard,
“[sjhowing that the employer dissembled is not necessarily the same as showing ‘pretext for
discrimination
...’”; the employer may be trying to hide some other reason besides discrimination for firing the plaintiff. 824
In short, the jury could have reasonably found that Mars treated Brown, the oldest shift manager, less favorably than it treated younger shift managers. This is enough to raise an inference of age discrimination. See, e.g.,
Webb v. City of Chester,
This was a close case; as Mars’ counsel stated at trial, credibility was a key issue. Such cases are for juries; appellate panels have no opportunity to observe witness de
II.
Besides finding that Mars fired Brown because of his age, the jury also found that Mars’ discrimination was willful and awarded liquidated (double) damages. The district court instructed the jury that
[t]o prove willful age discrimination plaintiff must show ... that M & M/Mars’ discriminatory actions were knowingly and voluntarily taken and not unintentional and that M & M/Mars knew or reasonably should have known that it was violating the Age Discrimination in Employment Act when it took those actions.
(Emphasis added.) The “reasonably should have known” standard was error. Discrimination under the ADEA is willful only if, when the defendant acted, the defendant “ ‘knew or showed reckless disregard for the matter of whether its conduct was prohibited by the ADEA.’ ” The “reasonably should have known” standard, which is essentially a negligence standard, is inconsistent with the “reckless disregard” standard.
Coston v. Plitt Theatres, Inc.,
Brown concedes that the “reasonably should have known” instruction was erroneous. But Brown contends that Mars has waived its opportunity to contest the instruction because Mars did not object to it; in fact, Mars proposed the instruction. The circumstances of this case, however, lead us to conclude that Mars has not waived its challenge to the instruction.
The “reasonably should have known” standard came from this court’s decision in
Syvock v. Milwaukee Boiler Mfg. Co.,
The defendants in
Coston I
and
Rengers I
filed petitions for certiorari. While those petitions were pending, the Court decided
Richland Shoe.
In
Richland Shoe,
the Court made clear that reckless disregard, not reasonableness, is the proper standard for willfulness under both the ADEA and the Fair Labor Standards Act (from which the ADEA’s willfulness provision camе) and that the two standards are incompatible. See
This case was tried in October 1987, after our decisions in
Rengers I, Graefenhain,
and
Coston I
but before
Richland Shoe, Rengers II,
and
Coston II.
Normally, a party may not challenge an instruction on appeal that the party did not object to at trial. See
Brown points out that when the case was tried, the Supreme Court had already decided Thurston; therefore, Mars could have submitted a Thurston instruction instead of the Syvock instruction that it did submit. But by the time of trial in this case, this court had already decided Rengers I, Graefenhain, and Coston I. Those cases firmly established as the law of this circuit that Syvock’s standard was consistent with Thurston. Mars’ instruction precisely tracked the standard those cases declared. Given the clear law in this circuit at the time of trial, it would have been pointless to submit a different instruction. Only after Richland Shoe, Rengers II and Coston II did it become clear that the Syvock instruction was error. Given the circumstances in this case, Mars did not waive its right to contest the willfulness instruction.
On the merits, Mars insists that in individual treatment cases such as this one, a plaintiff must prove an extra element— some “outrageous” conduct by the employer — to establish a willful ADEA violation. In
Thurston,
the Court stated that Congress intended that liability under the ADEA be “two-tiered”: after finding that аn employer violated the ADEA, the jury must go on to determine whether that violation is willful. It follows that under this two-tiered liability scheme not every ADEA violation will be — or should be — willful. See
Thurston,
We respectfully disagree with our colleagues in the Third Circuit. The ADEA does not mention outrageousness, and such a requirement does not flow naturally from the ADEA’s adoption of willfulness as the necessary predicatе to liquidated damages.
Thurston
nowhere speaks of any requirement that an employer act outrageously before liquidated damages are appropriate; in fact,
Thurston
specifically rejected an interpretation of “willfulness” that would require “evil motive or bad purpose,”
Moreover, it is not necessarily true that the
Thurston
standard, unadorned by any “outrageousness” requirement, will lead to an automatic willfulness finding every time a jury finds an ADEA violation in an individual treatment ease. For example, an employer may have a valid legal question about whether age is a bona fide occupational qualification. See
Burlew does point out that despite this circuit’s adherence to the proposition that age discrimination can be unconsciously motivated, our cases have concluded that to find age was a determining factor in an employer’s decision means that the employer intentionally discriminated. Id. Even so, this does not necessarily lead to the conclusion that a finding of ADEA liability in an individual treatment case inevitably leads to a finding of willfulness. It is possible that the relevant decisionmaker might not know about the ADEA's prohibitions. More likely is a situation in which a low-level supervisor intends to discriminate but withholds any facts that might lеad the relevant decisionmaker, higher up in the chain of command, to suspect discrimination. In either of these two cases, a jury could reasonably conclude, depending on all the circumstances present, that the employer’s action was not willful. Even if the unadorned Thurston standard will lead to a willfulness finding in almost all successful individual treatment cases, “[pjerhaps that is as it should be, given the nature of a disparate treatment case.” See id. at 1067. At the very least, we think that where an employer consciously and deliberately does what it knows or must know the ADEA prohibits, that employer has acted willfully.
While both Brown and Mars recognize that the willfulness instruction was erroneous, both argue that we need not remand this case to the district court. Brown argues that the evidence of willfulness, even under the reckless disregard standard, was so overwhelming that the error in instruction was harmless. Mars, as one might expect, argues that the evidence of willfulness is so paltry that no reasonable jury could find willfulness, even if outrageousness is not a necessary element of willfulness.
After reviewing the record we conclude that, as is typical, the truth lies somewhere between these two extremes. In this case, the evidence sharply conflicts about who the relevant decision-makers are (Brown sаys Vincent and Personnel Director Blanchet, among others; Mars insists only Vincent) and their knowledge about the ADEA or the totality of circumstances surrounding Brown’s firing. The willfulness issue could go either way, so we must remand for a new trial on willfulness under the proper standard.
III.
Mars finally argues that we must reduce Brown’s damages by the amount of lost pension benefits the jury awarded him and that the jury may not include the amount of lost pension benefits in calculating liquidated damages. The jury awarded Brown damages for lost pension benefits based on calculations by Brown’s expert. Brown’s expert calculated the present value of Brown’s expected pension рayments assuming that he worked until May 15, 1987 (the original trial date) and the present value of Brown’s expected pension payments, assuming that he worked until June 30, 1983 (the actual last day of Brown’s employment). The expert testified that the difference between those two amounts represented the amount of pension benefits that Brown lost because of Mars’ discrimination; that amount is the amount the jury awarded Brown as lost pension benefits.
Brown filed a motion for equitable relief, including reinstatement. The district court ordered Mars to reinstate Brown. Mars represented below and in this court that upon reinstating Brown, it would reinstate Brown to the compаny pension plan as if he had continued working. We hold Mars to its word. Thus, when Brown retires he
Despite this, Brown asserts that he may still keep the lost pension benefits award. We find this contention puzzling — and somewhat disingenuous — given that in the district court Brown conceded that if the district court reinstated him he would have to give up the lost pension benefits award. See Brown v. M & M/Mars, No. 84-C-7554, Order at 6 (N.D.Ill. April 5, 1988); see also Plaintiffs Reply Brief in Support of Motion for Equitable Relief at 7. (We also find it puzzling that Mars did not see fit to mention this concession in its briеf.) Given Brown’s concession below and Mars’ representation that it is giving Brown full pension credit for the time between his firing and reinstatement, we hold that Brown may not keep the lost pension benefits award.
Brown argues that even if he may not keep the amount awarded him for lost pension benefits, the jury may still double this amount in calculating liquidated damages. We think not. Under the ADEA, the amount of liquidated damages for a willful violation is the amount “ ‘equal to the pecuniary loss.’ ”
Coston I,
IV.
We Affirm the jury’s finding of age discrimination. We Remand for a new trial on willfulness. Brown may not receive the amount the jury awarded for lost pension benefits, and that amount may not be included in any calculation of liquidated damages if Mars is found to have acted willfully. Each party shall bear its own costs on appeal. Rule 36 shall not apply.
Notes
. In
Price Waterhouse v. Hopkins,
— U.S. —,
. Sarney also testified that Vincent had an "autocratic” management philosophy that involved "dictating” to subordinates. While such an "autocratic” management style does not itself violate the ADEA, Sarney’s testimony does tend to undermine Vincent’s professed concern with delegating responsibility to subordinates; the jury could have found that if Vincent really
. Brown attempted to buttress his case by showing that Mars had systematically attempted to reduce the age of its work force by discriminating against older employees. We find this attempt weak, at best. Brown introduced statistics that essentially showed that the number of employees aged 50 to 60 decreased over the years and in some years was lower than one would expect, and that the deviation from the expected number was statistically significant (i.e., not due to chance). These statistics show little, if anything, about age discrimination. For one thing, the statistics also showed that the number of employees aged 20 to 30 decreased over the years and was significantly lower than expected during some years and that the number of employees aged 40 to 50 (Brown’s own аge group at the time he was fired) actually increased over the years. More important, Brown’s statistical expert did not distinguish between employees whom Mars fired and those who left Mars for some other reason (for example, death or voluntary retirement). The statistics thus do not show that Mars
fired
older employees at a statistically more significant rate than younger employees. Brown’s statistics showed little more than that the work force became younger over time. As we have previously noted, "this ‘phenomenon’ represents the normal course of employment histories, and is nothing to marvel at. When older employees leave work, for whatever reasons, they will often be replaced by younger employees.”
Kier v. Commercial Union Ins. Co.,
Brown also attempted to raise an inference of discrimination by showing that Mars had offered a series of voluntary separation plans (VSP’s) that he claims were geared toward persuading older workers to leave Mars. However, Mars offered these VSP’s to all eligible employees regardless of age. Brown intimates that the plans were more attractive to older workers, but it is not age discrimination to offer a voluntary separation plan that is more attractive to older workers than younger workers, even if done to induce older workers to leave, unless the plan is not truly voluntary.
Henn v. National Geographic Society,
Brown’s statistical and anecdotal evidence perhaps shows that Mars was conscious of age and was willing to reduce the Chicago plant’s work force’s average age by legal means (such as the VSP's). Whether this is sufficient to support an inference of illegal age discrimination is something we need not decide because we have found the evidence sufficient to support the jury's verdict without the statistics and anecdotal evidence.