RULING ON DEFENDANT MARRIOTT CORPORATION’S MOTION FOR SUMMARY JUDGMENT
TABLE OF CONTENTS
I. INTRODUCTION AND BACKGROUND 694
A. Marriott’s Summary Judgment Motion 694
B. Factual Background ' 695
C. Procedural Background 695
D. Burdens of Proof Under the ADEA 696
II. SUMMARY JUDGMENT STANDARDS . 698
III. THE INFERENCE OF NONDISCRIMINATION ESTABLISHED IN PROUD V. STONE, 945 F.2D 796 (4TH CIR.1991) AND LOWE V J.B. HUNT TRANSPORT, INC., 963 F.2D 173 (8TH CIR.1992).. 699
A. Introduction 699
B. The Rule Articulated in
Proud v. Stone,
C. The Eighth Circuit’s Adoption of the Rule in
Proud v. Stone,
D. Application of the Rule in Proud-Lowe to Marriott’s Summary Judgment Motion 701
1. Holmes’ Intra-Corporate Transfer 701
2. The Requirement of the Same Decision Makers 702
3. Holmes’ Direct Evidence of Discrimination 703
IV. STATEMENTS OF MARRIOTT EMPLOYEES—ARE THEY “STRAY REMARKS,” REMARKS UNRELATED TO ACTUAL AGE-BASED DISCRIMINATION, REMARKS NOT ATTRIBUTABLE TO THE DECISION MAKERS, OR ARE THEY DIRECT EVIDENCE OF DISCRIMINATION. 703
A. Introduction 703
B. Stray Remarks 704
C. The Contents of the Statements at Issue 706
*694 D. Application of the “Stray Remarks” and the “Diminished Vigor” Rationale to the Statements at Issue 707
V. MARRIOTT’S BUSINESS JUDGMENT 708
VI. MARRIOTT’S OFFER OF REINSTATEMENT—CONDITIONAL OR UNCONDITIONAL? 708
A. Introduction 708
B. The Admissibility of Marriott’s Offer of Reinstatement to Holmes 710
C. The May 20, 1991 Offer of Reinstatement to Holmes 711
VII. CONCLUSION 713
This is an age discrimination suit pursuant to the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621-634, (“ADEA”) with a pendent state law claim under the Iowa Civil Rights Act (“ICRA”), Iowa Code chapter 216 (formerly chapter 601A) (1993). This litigation arises from the termination of Plaintiff Philip W. Holmes’ (“Holmes”) employment on July 13, 1990, as director of services at the Des Moines Marriott Hotel. Marriott Corporation (“Marriott”) has moved for summary judgment pursuant to Federal Rule of Civil Procedure 56(b) on each of Holmes’ claims. 1
I. INTRODUCTION AND BACKGROUND.
A. Marriott’s Summary Judgment Motion
Marriott’s Motion for Summary Judgment raises four issues: (1) that Holmes cannot prevail on his claims of age discrimination because he can present no genuine issue of material fact concerning discrimination when he was hired at the age of 58 and was fired a little more than 12 months later; (2) that Holmes’ claim of direct evidence of age discrimination based upon several statements by Marriott’s employees must fail because the statements were not made by the decision maker who terminated Holmes nor are the statements probative of age-based dis *695 crimination; (3) that this court should not second guess the business decision by Marriott to terminate Holmes for unsatisfactory job performance as director of services and that Holmes is not able to generate the material fact question to overcome Marriott’s asserted legitimate nondiscriminatory reason for his termination; and (4) that Holmes’ rejection of Marriott’s unconditional offer of reinstatement tolls the back pay period.
Before turning to the merits of each of Marriott’s arguments in support of summary judgment, the court will briefly discuss the factual and procedural background of this litigation, comment on the allocation of the burden of proof in ADEA actions and address the appropriate standards to be applied to Marriott’s summary judgment motion.
B. Factual Background
Holmes’ claims arise from his July 13,1990 termination of employment by Marriott as the director of services at Des Moines’ Marriott Hotel. For purposes of Marriott’s Motion for Summary Judgment only, the court finds that the following facts are undisputed. Holmes, was born on December 11, 1935 and began working in 1954 for Marriott as a car hop in a Marriott owned drive-in restaurant. Since then Holmes has held numerous positions with Marriott, including assistant manager of a small restaurant, night manager of a larger restaurant, night manager in the Cafeteria Division, marketing representative for a large Marriott-owned commissary, northeastern regional sales manager of Marriott’s Fairfield Farm commissary, opening manager in Marriott’s fast food division, a housekeeping trainee, a housekeeping manager, a public space manager and a director of services.
In early 1989, Holmes was working for Marriott’s Tan-Tar-A resort property in Missouri as a public space manager. In that position Holmes was responsible for all of the public spaces in the Marriott’s resort property-
In late April or early May of 1989, Holmes interviewed for the position of director of services at the Des Moines Marriott hotel. The director of services position was responsible for the complete direction, control and supervision of the hotel’s housekeeping, laundry and recreation departments.
Holmes interviewed with resident manager Joseph Duperre, general manager Nick Smart, and other executive management team members of the Des Moines Marriott hotel. Holmes was offered and accepted the position of director of services for the Des Moines Marriott hotel. At the time Holmes interviewed and accepted the Des Moines Marriott hotel position of director of services, he was 53 years of age.
Holmes’ initial supervisor was the resident manager, Joseph Duperre. Mr. Duperre’s direct supervisor was the general manager, Nick Smart, who was later replaced by Hal Cook. On July 13, 1990, Holmes was terminated by Marriott. Holmes was terminated by general manager Hal Cook. He was the only individual at the Des Moines Marriott hotel facility who had the authority to terminate Holmes. The decision to terminate Holmes was based, in part, on the resident manager, Joseph Duperre’s, recommendation to Cook to terminate Holmes. The reason advanced by Marriott for Holmes’ termination was unsatisfactory job performance.
C. Procedural Background
On March 9, 1993, the parties filed a consent to proceed before a United States magistrate judge pursuant to 28 U.S.C. § 636(c). By prior order, April 1, 1993 was the deadline for filing dispositive motions. On July 23, 1993, more than three and one half months after the dispositive motion deadline Marriott filed Defendant’s Application to Extend Dispositive Motion Deadline. The motion was unresisted and on July 26, 1993,-1 granted Marriott’s ' Application to Extend Dispositive Motion Deadline and Marriott’s summary judgment motion and supporting brief were filed on that date. As required by Local Court Rule 14(h), Defendant also filed its statement of undisputed facts. On August 13,1993, Holmes filed his resistance and supporting brief resisting Marriott’s motion for summary judgment. On August 24,1993, I granted Marriott permission to file a reply brief in excess of the page limitation mandated by Local Court Rule 14(g).
*696 This litigation is scheduled to commence for trial by jury on September 13, 1993. As is increasingly the case in summary judgment motions in federal court, the briefing and supporting documents filed by the parties are imposing. Here, they easily exceed several hundred pages. A hearing on Marriott’s summary judgment motion and other pending motions was held on August 27, 1993. Holmes . was represented by Des Moines attorneys Frederick W. James and Michael J. Carroll of Dwight W. James & Associates, P.C. Marriott was represented by Des Moines attorneys Philip H. Dorff, Jr. and Hugh Cain of Hopkins and Huebner, P.C.
The quality of the summary judgment briefs as well as oral argument has been exceptional and of great assistance to the court. Unfortunately, there is precious little time to resolve the important issues raised by the summary judgment motion in the very short period of time between the hearing on the summary judgment motion and trial. This is an excellent example of the conundrum created by allowing parties to move for summary judgment well past the initial deadline for doing so and on the eve of trial. Counsel for both parties have obviously engaged in an enormous amount of work in advancing and resisting summary judgment. This has necessarily consumed considerable time, effort, energy and attorney fees. In this sense, it would be unfair to the parties not to rule on the motion or to artfully dodge it because of the time crunch. Additionally, meritorious summary judgment motions advance important judicial resource concerns by eliminating trials when they are unneces-. sary. On the other hand, hurriedly addressing last minute summary judgment mqtions rob the court of the time necessary to carefully evaluate, analyze and cogitate—sometimes necessary even when difficult issues are as well presented as they are here. I have done the best I could given the crushing time constraints.
D. Burdens of Proof Under the ADEA
Under the ADEA, a plaintiff may establish age discrimination “by either direct or indirect methods of proof.”
Beshears v. Asbill,
The premise of a pretext case “is that either a legitimate or illegitimate set of considerations led to the challenged decision.”
Price Waterhouse v. Hopkins,
Mixed-motive cases, by contrast, arise when the plaintiff establishes that an employment decision was “the product of a mixture of legitimate and illegitimate motives.”
Price Waterhouse,
Also, “[w]hether a case is a pretext case or a mixed-motives case is a question for the court once all the evidence has been resolved____”
Radabaugh,
In
St. Mary’s Honor Ctr. v. Hicks,
— U.S. -,
It is not enough, in other words, to disbelieve the employer; the factfinder must believe the plaintiffs explanation of intentional discrimination. St. Mary’s Honor Center v. Hicks, — U.S. at -,113 S.Ct. at 2754 . The Court cautioned, however that “[t]he factfinder’s disbelief of the reasons put forward by the [employer] (particularly if disbelief is accompanied by a sus *698 picion of mendacity) ..., together with the elements of the prima facie case, ... will permit the factfinder to infer the ultimate fact of intentional discrimination, and ... that, upon such rejection, ‘[n]o additional proof of discrimination is required.” Id. — U.S. at -,113 S.Ct. at 2749 (footnote omitted), citing970 F.2d at 493 .
Hicks v. St. Mary’s Honor Center,
Finally, the United States Court
oí
Appeals for the Eighth Circuit has recognized that the
McDonnell Douglas-Burdine
conceptual framework is not well-suited as a detailed instruction to the jury. In
Grebin v. Sioux Falls Indep. School Dist.,
II. SUMMARY JUDGMENT STANDARDS.
Marriott’s motion for summary judgment is subject to the following well-established standards. Rule 56 of the Federal Rules of Civil Procedure provides that summary judgment is proper only if “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgement as a matter of law.”
Woodsmith Publishing Co. v. Meredith Corp.,
The Eighth Circuit recognizes “that summary judgment is a drastic remedy and must be exercised with extreme care to prevent taking genuine issues of fact away from juries.” Wabu
n-Inini,
Procedurally, Marriott bears “the initial responsibility of informing the district court of the basis for its motion and identifying those portions of the record which show lack of a genuine issue.”
Hartnagel,
“When a moving party has carried its burden under Rule 56(c), its opponent must do more than simply show there is some metaphysical doubt as to the material facts.”
Matsushita,
In
Anderson, 477
U.S. at 249,
In the age discrimination context, “a subjective belief of discrimination, however genuine, [cannot] be the basis of judicial relief.”
Moore v. Reese,
Having articulated the appropriate standards for determining Marriott’s motion for summary judgment, the court now turns to the specifics of Marriott’s motion.
III. THE INFERENCE OF NONDISCRIMINATION ESTABLISHED IN PROUD v. STONE, 945 F.2D 796 (4TH CIR.1991) AND LOWE v. J.B. HUNT TRANSPORT, INC., 963 F.2D 173 (8TH CIR.1992).
A. Introduction
Marriott’s first argument in support of its motion for summary judgment is based upon the fact that Holmes, who was 53 years of age at the time of his transfer from Missouri to the Des Moines Marriott hotel was discharged a little more then 12 months later. Thus Marriott argues there is an inference that should arise that the discharge was based on reasons other than Holmes’ age. The genesis for Marriott’s argument appears to be the decision in
Proud v. Stone,
B. The Rule Articulated in Proud v. Stone,
The factual basis for the court’s holding in
Proud
was “the undisputed fact that the individual who fired Proud is the same individual who hired him less than six months earlier with full knowledge of his age.”
Proud,
*700 The court in Proud elaborated on the relationship between this inference of nondiscrimination and the plaintiffs burden of proof when the court stated:
The proof scheme involves three steps. First, the ADEA plaintiff must make out a prima facie case of discriminatory discharge. Once plaintiff has done that, defendant bears the burden to articulate a legitimate, nondiscriminatory reason for the action taken. If defendant meets that burden, plaintiff then has the burden to show that the proffered reason was pretextual. Conkwright [v. Westinghouse Elec. Corp.], 933 F.2d [231] at 234-35.
The relevance of the fact that the employee was hired and fired by the same person within a relatively short time span comes at the third stage of the analysis. To reiterate in only slightly different terms what has previously been discussed, this fact creates a strong inference that the employer’s stated reason for acting against the employee is not pretextual. The plaintiff still has the opportunity to present countervailing evidence of pretext, but in most cases involving this situation, such evidence will not be forthcoming. In short, employers who knowingly hire workers within a protected group seldom will be credible targets for charge of pretextual firing.
Id. at 798.
Finally, the court in Proud quite correctly observed that their articulation of the strong inference of nondiscrimination arising from the relatively unique fact situation where a member of a protected class is hired and fire by the same decision maker within a relatively short time span “advances the aims of the statute.” Id. The court recognized that “[i]f former employees in these situations bring ADEA claims that are allowed to proceed to trial ... there is a grave risk that employers who otherwise would have no bias against older workers will now refuse to hire them in order to avoid meritless but costly ADEA actions.” Id. The court concluded that “[e]ourts must promptly dismiss such insubstantial claims in order to prevent the statute from becoming a cure that worsens the malady of age discrimination.” Id.
In arriving at this strong inference of nondiscrimination in cases where the plaintiff is hired and fired by the same individual in a relatively short time span, the court in Proud did not foreclose a situation where facts could arise “which a discharge in this context could still be proven to have been discriminatory. ...” Id. at 798.
C. The Eighth Circuit’s Adoption of the Rule in Proud v. Stone,
The United States Court of Appeals for the Eighth Circuit has followed the rule in
Proud,
The evidence that plaintiff claims is inconsistent with defendant’s proffered justification is thin, but perhaps sufficient, all other things being equal, to defeat to motion for directed verdict. In the present case, however, all other things were not equal. The most important fact here is that plaintiff was a member of the protected age group both at the time of his hiring and at the time of his firing, and that the same people who hired him also fired him. Proud v. Stone,945 F.2d 796 (4th Cir.1991). If plaintiff had been forty when he was hired, and sixty-five when he was fired, obviously this fact would not be so compelling. But here, the lapse of time was less than two years. It is simply incredible, in light of the weakness of plaintiffs evidence otherwise, that the company officials who hired him at age fifty-one had suddenly developed an aversion to older people less than two years later.
The short time plaintiff worked for the defendant, his age when hired, and the *701 identity of those who hired and fired him are, in the particular circumstances of this ease, fatal to his claim.
Lowe,
It is clear, however, that the rule in
Proud-Lowe
should not be applied in an ironclad fashion.
Proud
recognized that even in situations where the inference of discriminatory animus is unwarranted, due to the hiring and firing by the same decision maker in a relatively short time span, the plaintiff must still be provided an opportunity to establish that the employer’s articulated legitimate nondiscriminatory reasons for the dismissal are pretextual.
Proud,
Thus, in
Johnson v. Group Health Plan, Inc.,
D. Application of the Rule in Proud-Lowe to Marriott’s Summary Judgment Motion
The .thrust of Holmes’ argument that the inference of nondiscrimination recognized in Proud-Lowe should not apply in this case is based on two independent arguments. First, Holmes argued that because he transferred within the Marriott Corporation to the Des Moines Marriott hotel there was no initial hire within a relatively short time span and the doctrine articulated in Proud-Lowe has no application to him. Secondly, Holmes argues that because he was not both hired and fired by the same decision maker the rule of Proud-Lowe should not be applied to Holmes.
1. Holmes’ Intra-Corporate Transfer
Holmes correctly observes that the factual patterns in both Proudr-Lowe involved a new hire and subsequent discharge in a short time span rather than an intracorporate transfer. While this distinction is an accurate one, the court believes it is a distinction without a difference. Under the facts presented by Holmes, his transfer from the totally separate Marriott facility in Missouri to the Des Moines Marriott hotel was, for purposes of the application of the rule in Proudr-Lowe, analogous to an initial hire. For example, Holmes interviewed with Des Moines Marriott hotel resident manager Joseph Duperre for the position. Before offering Holmes the position, Duperre requested that Holmes interview with Nick Smart, the general manager and other members of the management team. Following these interviews, Holmes was offered the position.
Holmes has failed to assert a factual justification—and the court is unable to identify one—that would justify rejecting the application of the rule in Proudr-Lowe to intracorporate transfers. Rather, Holmes asserts a policy objection. Holmes argues that adopting the rationale of Proudr-Lowe to intra-corporate transfers would mean that “older workers might well be inclined to remain stagnant in a position after they reach the protected age of 40.” Pl.Br. in Resistance to Def.Mot. for Summ.J. at 9. Holmes then makes the following giant leap: “Following the Defendant’s interpretation of the law, the Defendant corporation would rarely, if ever, be amenable to suit under the ADEA because managerial employees in this corporation often change jobs periodically.” Id. at p. 9.
The specter raised by Holmes of corporate immunity from ADEA litigation in intra-corporate transfers of employees in the protected age category is illusory. Nothing in the rule of law announced in Proudr-Lowe prevents an employee from asserting a claim under the ADEA when the employee can muster evidence of age based discriminatory intent. Rather, the Proudr-Lowe rule ere *702 ates a common sense inference that where the same decision maker hires a protected class worker and then discharges the same worker in a relatively short time span, there is an inference that discrimination was not a determining factor in the discharge decision. As the court in Proud recognized but Holmes fails to appreciate—this rule advances rather than hinders the goal of eradicating age discrimination in the workplace. Likewise, the rule encourages rather than discourages intra-corporate transfers of protected age workers by providing employers with a reasoned inference that no discrimination occurs when a recently hired worker is discharged by the same decision maker. Therefore, the court concludes that there is no factual basis or policy reason based upon the legislative intent of the ADEA, not to apply the Proud-Lowe rule to intra-corporate transfers. 5
2. The Requirement of the Same Decision Makers
In
Proud,
the same individual, Robert W. Klauss, the central accounting officer, both hired and fired plaintiff Warren A. Proud.
Proud,
Marriott asserts the following in an attempt to bring the facts underlying Holmes’ hiring and firing within the rule of Proud and Lowe:
The Plaintiffs case falls into the same category. Holmes was hired by local Des Moines Marriott officials when he was 53 years old. He was fired shortly thereafter by the hotel’s general manager. Since all the management team would have known that the Plaintiff was in a .protected age category at the time he was hired, it does not make sense that those same individuals would terminate the Plaintiff allegedly because of his age shortly thereafter.
Def.Br. in Supp. of its Mot. for Summ.J. at 5. Not surprisingly, Holmes takes a different vie of this matter. He states:
The other assertion the Defendant makes, that Holmes was hired and fired by the same supervisor, is ' also untenable. Holmes interviewed at the Des Moines hotel and was offered the job by Joe Duperre. In addition, Nick Smart was the hotel’s General Manager at the time of the hire. The person ultimately responsible for the termination of Holmes’ employment was Hal Cook, the person who took over Smart’s job when Smart transferred elsewhere. Therefore, Holmes was not hired and fired by the same person.
Pl.Br. in Resistance to Def.M. for Summ.J. at 10-11 (citations omitted).
Holmes was terminated by general manager Hal Cook, who was not employed at the Des Moines Marriott hotel facility at the time of Holmes’ initial hire. Indeed, Marriott’s position in this litigation is that only general manager Cook had the actual authority to discharge Holmes. Counsel for Marriott stated at the summary judgment hearing that for purposes of their summary judgment motion, Marriott concedes Cook relied on Joseph Duperre’s recommendation in making the decision to terminate Holmes. While Duperre was involved in Holmes’ initial hiring, there is a material question of fact as to the extent of reliance by Cook on Duperre’s recommendation to terminate Holmes, This, as well as Holmes’ direct evidence of discrimination, discussed below, precludes granting Marriott’s motion for summary judgment on this issue.
*703 3. Holmes’ Direct Evidence of Discrimination
More importantly, Holmes’ allegations of discriminatory statements made by the decision makers distinguish his case from that in
Lowe
where the court recognized the weakness of plaintiffs evidence of discriminatory intent.
Lowe,
In sum, if this were a case in which Holmes was simply relying on the prima facie inference of discrimination created by the McDonnell Douglas-Burdine framework to establish that Marriott’s articulated nondiscriminatory reason is pretextual, the court would have no trouble applying the rule in Proud-Lowe and grant Marriott’s motion for summary judgment. However, Marriott has failed to establish in this summary judgment proceeding its burden of proof that there is no material question of fact in the third stage of the analysis. That is, Marriott has failed to establish that there are no material questions of fact regarding whether its asserted legitimate nondiscriminatory reasons are pretextual. Thus, even if the rationale of Proud-Lowe applied because Holmes was terminated by the same decision makers, it would be for the jury to decide whether the inference raised by the rule of Proud-Lowe could be overcome by Holmes’ asserted direct evidence of discrimination based upon discriminatory statements of the decision makers. This is not only a material question of fact, it goes to the very heart of the ultimate issue in this litigation—was Holmes discharged based upon his age.
IV. STATEMENTS OF MARRIOTT EMPLOYEES—ARE THEY “STRAY REMARKS,” REMARKS UNRELATED TO ACTUAL AGE-BASED DISCRIMINATION, REMARKS NOT ATTRIBUTABLE TO THE DECISION MAKERS OR ARE THEY DIRECT EVIDENCE OF AGE DISCRIMINATION.
A. Introduction
Marriott has moved for summary judgment on the grounds that several statements Holmes contends were made by employees of Marriott, allegedly establishing direct evidence age discrimination, are not attributable to the decision makers nor do the statements themselves show actual age based discrimination. Thus, implicit in Marriott’s argument is that Holmes has failed to generate a material question of fact that age was a motivating factor in his termination and, therefore, Marriott is entitled to summary judgment.
Procedurally, this issue in the context of summary judgment is made more complex here by the lack of specificity and agreement among the parties as to what comments, made by whom, were made when. The comments which purportedly are subject to this portion of Marriott’s motion for summary judgment are not set forth in their statement required by Local Court Rule 14(h) of undisputed material facts as to which the moving party contends there is no genuine issue to be tried. Holmes does allude to “statements made by Mr. Cook and Mr. Duperre regarding Plaintiffs age” in their Statement of Disputed Facts in Support of Plaintiffs Resistance to Defendant’s Motion for Summary Judgment but fail to identify any information concerning the statements in that pleading. Rather, the court is left to sift through the briefs and supporting documentation in an effort to identify which statements are at issue in this portion of Marriott’s motion for summary judgment.
In its brief, Marriott identifies the following statements which it contends Holmes conceded in his deposition were made only by Joseph Duperre: that Holmes was “senile”; that Holmes was “too old to cut it”; and that Holmes was “not as young as he used to be.” Br. in Supp. of Def.M. for Summ.J. at 5-6.
In an affidavit by Holmes attached to his brief in resistance to Marriott’s motion for summary judgment, Holmes makes the following assertions with regard to statements of discriminatory intent:
19. In addition to depriving me of the opportunity to do my job in an adequate fashion, Mr. Duperre also made various comments regarding my age. I consider these to be far more than just offhand or *704 stray comments. For instance, on more than one occasion, Mr. Duperre told me that I was “senile.” On another occasion, Mr. Duperre asked me whether I was “getting too old to cut it?” Even though he was causing much of my difficulties at the Des Moines Marriott, Mr. Duperre also told me, “Well, if you can’t get done, maybe you’re not as young as you used to be.” Mr. Duperre also told me, “You’re getting expensive. You’ve been around a lot of years, too.” Mr. Duperre also made comments in regards to the age marks on my face. He made reference to them in asking whether they bothered me. He also made reference as to my ability to work directly with customers because of the age marks on my face.
20. Hal Cook asked about my plans for retirement, and he once suggested I consider working in the Senior Living Division of Marriott.
21. Another comment made regarding my age by Mr. Duperre was, “I don’t think you’ve got the energy to do all you’ve got to do.”
Aff. of Phil Holmes at 6 (attached to Pl.Br. in Resistance to Def.M. for Summ.J.).
B. Stray Remarks
Marriott attempts to characterize Holmes’ assertion of statements of Marriott’s employees as “stray remarks.” The stray remarks doctrine has its genesis in
Price Waterhouse v. Hopkins,
Numerous decisions, many of them relied upon by Marriott, have held that specific statements of employees are “stray remarks” and, thus, not evidence of discrimination.
See e.g., Turner v. North American Rubber, Inc.,
There appears to be no unified test for determining whether certain statements fall within the stray remarks doctrine. Rather, as the above cases demonstrate, courts look to the relationship between the remarks and
*705
the decisional process, the age-based substance of the statements, the specificity of the statements both with regard to the actual employment decision at issue such as hiring, promotion or termination, as well as the relationship to the remark and the plaintiffs situation, and remoteness in time to the personnel decision. Several recent decisions from the United States Court of Appeals for the Eighth Circuit,
Radabaugh v. Zip Feed Mills, Inc.,
In
Radabaugh,
Not all comments that reflect a discriminatory attitude will support an inference that an illegitimate criterion was a motivating factor in an employment decision. In Beshears, we distinguished “[c]omments which demonstrate a ‘discriminatory ani-' mus in the decisional process’ or those .uttered by individuals closely involved in employment decisions,”930 F.2d at 1354 (citation omitted) (quoting Price Water-house,490 U.S. at 278, 109 , S.Ct. at 1805 (O’Connor, J., concurring)), from “ ‘stray remarks in the workplace,’ ‘statements by nondecisionmakers,’ or ‘statements by decisionmakers unrelated to the decisional process,’ ” id. (quoting Price Waterhouse,490 U.S. at 277 ,109 S.Ct. at 1804-05 (O’Connor, J., concurring)).
Id. In affirming the trial court’s denial of Zip Feed’s post trial motions, on the grounds that the jury should not have been given a Price Waterhouse instruction and that the evidence was insufficient to support the jury’s verdict of age discrimination, the court analyzed the following statements made by Zip Feed management employees: the president of Zip Feed, repeatedly made the statement that the company was “young, mean and lean;” his suggestion made sometime after discharging Radabaugh that Radabaugh “might want to consider retiring;” and his statement that Radabaugh “should have seen this coming when the (26 year old) nutritionist was hired.” Id. at 449. The court held that these statements, in addition to other evidence presented by Radabaugh reflected “a discriminatory attitude on the part of the persons responsible for the decision to discharge him. This evidence was sufficient to support a finding that a discriminatory animus was a motivating factor in Zip Feed’s decision.” Id. at 450.
In
Kehoe v. Anheuser-Busch, Inc.,
1 In
Frieze v. Boatmen’s Bank of Belton,
Martin’s and the cashier’s comments do not create a reasonable inference of age *706 discrimination because Martin and the cashier did not take part in the decision to discharge Frieze____ Hartzler’s statement about Frieze’s chances to become president of a bank does not create a reasonable inference of discrimination because Hartzler made this stray remark more than four years before he discharged Frieze____ Similarly, Hartzler’s statements about Frieze not being able to fit into the bank’s framework are too vague to create a reasonable inference of age discrimination.
Frieze,
In
Beshears,
In
Blake v. J.C. Penney Co., Inc.,
Before analyzing the statements at issue here to determine whether they constitute stray remarks and thus lack any probative value in establishing discriminatory intent, the court will address Marriott’s argument that the statements at issue are not evidence of age discrimination.
C. The Contents of the Statements At Issue
Marriott asserts the following contention in its brief that various statements alleged by Holmes are not evidence of age discrimination:
The Plaintiff contends that Marriott officials indicated that he was “senile”, ... that he was “too old”, ... and that they inquired how long he was going to continue to work.... These comments have nothing to do with age discrimination and may not be considered as direct evidence of age discrimination.
Br. in Supp. of Def.M. for Summ.J. at 8-9 (citations omitted).
The primary thrust of Marriott’s argument is that these statements “are not evidence of age discrimination. Rather, they reference only characteristics that are sometimes associated with age.” Id. at 12-13. For example, Marriott asserts that the statement attributable to Joseph Duperre and directed towards Holmes “getting too old to cut it?” is “nothing more than a reference to Plaintiffs deteriorating physical - condition. That is merely one of the unfortunate characteristics of increasing age.” Id. at 13.
At least in the abstract, there is considerable support in the case law for Marriott’s position. The First Circuit’s decision in
Loeb v. Textron, Inc.,
D. Application of the “Stray Remarks” and the “Diminished Vigor” Rationale to the Statements at Issue
The court rejects Marriott’s argument that the statements Holmes was “too old to do the job,” and “senile” and “not as young as he used to be” may reasonably be interpreted only as references to characteristics that are sometimes associated with advancing age. Rather, these statements, while far from conclusively establishing evidence of age discrimination, may reasonably be interpreted by a jury as providing “support for an inference that age discrimination was a motivating factor in ... [the] decision to discharge ... [him].”
Radabaugh,
On the other hand, the statement contributed to Hal Cook asking about Holmes’ retirement plans, without more, is not evidence of age discrimination and may not be relied upon by Holmes in attempting to prove age-based discrimination. The allegation that Cook inquired about Holmes’ retirement plans is substantially different from the supervisor’s suggestion to the plaintiff in
Radabaugh,
The statement attributed by Holmes to Cook that Holmes should consider working in the Senior Living Division of Marriott presents the closest question of all the statements at issue. The statement was made by the final decision maker fairly close in time to Cook’s decision to discharge Holmes (Cook came to the Des Moines facility after Holmes began working there). This statement may give rise to a perfectly reasonable explanation by Cook. A jury may not find the statement to be evidence of discriminatory intent. However, the statement “might be taken to mean,”
Radabaugh,
One final comment on the application of the stray remarks doctrine to the *708 facts of this ease. Marriott attempts to neutralize all the statements attributable by Holmes to Joseph Duperre by arguing that he was not a decision maker—only Cook had full and final authority to discharge Holmes. This argument presents too truncated a view of workplace personnel decisions and is at odds with the reality of today’s workplace where important personnel decisions often represent the collective judgment of several individuals. It is clear that Joseph Duperre was not the final decision maker—however, his recommendation as Holmes’ direct supervisor undoubtedly played a role in the ultimate decision to discharge Holmes. This court is unable to determine the precise role Joseph Duperre played in the context of the summary judgment motion. Thus, in the parlance of summary judgment, there is a disputed question of material fact for the jury to decide. 8
V. MARRIOTT’S BUSINESS JUDGMENT
Marriott asserts it is entitled to summary judgment because this court may not second guess its business judgment in deciding to terminate Holmes based on his inadequate job performance. Marriott asserts that its decision to terminate Holmes was “a business decision which Marriott is entitled to make and which should not be second guessed by the courts.” Br. in Supp. of Def.Mot. for Summ.J. at p. 16.
Indeed, the United States Court of Appeals for the Eighth Circuit recently held in
Walker v. AT & T
Technologies,
Without question, as long as Marriott made a decision to terminate Holmes based on its business judgment and not on unlawful age discrimination, this court has no business reviewing that business judgment. However, here, the court has held that there is a material question of fact on Marriott’s motivation and, therefore, the court may not use the business judgment rule to grant Marriott summary judgment in its favor. Marriott may, however, be entitled to a jury instruction on the question of business judgment.
VI. MARRIOTT’S OFFER OF REINSTATEMENT-CONDITIONAL OR UNCONDITIONAL?
A. Introduction
Marriott has also moved for summary judgment to limit Holmes’ back and
*709
front pay damages
9
by asserting on May 20, 1991, they tendered to Holmes an unconditional offer of reinstatement. Pursuant to
Ford Motor Co.,
Holmes’ obligation “to accept an offer of reinstatement is based on the general rule that a discharged employee must mitigate damages by using ‘reasonable diligence in finding other
suitable
employment’.”
Graefenhain v. Pabst Brewing Co.,
Marriott asserts that the May 20, 1991 correspondence from George J. Palladino, regional director of human services, to Holmes constitutes an unconditional offer of reinstatement as defined by
Ford Motor Co.,
Dear Mr. Holmes:
Please be advised that, effective immediately, we hereby extend to you an unconditional offer to return to your former position with Marriott at the Des Moines Marriott. You will be compensated at the same wage rate and be provided with the same level of benefits you enjoyed during your employment with the company.
I would also like to confirm again the offer I made to you in April, 1991 regarding a transfer to the Tan-Tar-A Marriott to the former position that you held at that hotel before transferring to the Des Moines hotel.
Please be advised that, effective immediately, we hereby also extend to you an unconditional offer to return to your former, position with Marriott at the Tan-Tar-A Marriott. You will be compensated at the same wage rate and be provided with the same level of benefits you enjoyed while working at the Des Moines Marriott. By accepting either unconditional offer, you are not obligated to discontinue any legal action pending against the Company to which you are a party. At the same time, please understand that the Company expressly denies any liability to you in any such actions and preserves any and all claims and defenses available to it. We would appreciate-your response in writing to this unconditional offer of reinstatement.
The Company prohibits discrimination in the workplace and will ensure that upon your return to work you will be treated fairly.
Sincerely,
George J. Palladino
Regional Director of Human Resources
In response to the May 20, 1991 letter from Palladino, Holmes, through counsel, responded on June 12, 1991 as follows:
Dear Ms. Culver and Mr. Palladino:
I have had an opportunity to review Mr. Palladino’s correspondence of May 20,1991 and discuss its contents with Mr. and Mrs. Holmes. Mr. Holmes is willing to return to work for Marriott at the Tan-Tar-A Resort location with the following caveats:
1) Return to pay grade 49;
*710 2) Receive all back wages together with annual and sick leave vested that Mr. Holmes would have enjoyed had he been working, plus accrued leave since April 30, 1991;
3) Return to Estate No. 446 that Mr. and Mrs. Holmes had previously occupied and assume the balance of the mortgage with the condition that the house received a rating of excellent and that Marriott take all necessary steps to assure it does;
4) That Marriott Corporation pay to the Burton Dunke Company as purchase of the lot on which house No. 446 is located so that the Holmes’ will be relieved of the land rent and own a home which is not depreciating in value;
5) That Mr. Holmes remain in his current position at Tan-Tar-A until May 1, 1994 at which time Mr. Holmes will remain on Marriott’s payroll, and they will transfer him to the Southeastern part of the United States to a corporate-owned Marriott facility.
6) That you reimburse Mr. Holmes $27,-000.00 to relieve him of the cost in relocating to North Carolina from Iowa before he begins work at Tan-Tar-A;
7) That you cover Mr. Holmes’ relocation expenses from North Carolina back to Marriott Tan-Tar-A in Missouri;
8) That Mr. Holmes be given the opportunities he would have been provided in December 1990 to continue to participate in the employee’s stock purchase program at 10 percent of earnings retroactive to the start of 1991, as well as the 29 shares he is still owed from 1990. Along with this he should also be provided the election for profit sharing variable to fixed ratio that he should have been provided in December 1990. If the latter is not possible that he be compensated with deferred Marriott stock, to make up the difference should there be any in January 1992;
9) Any and all professional fees incurred to date to the separation from his job with Marriott and his relocation to Missouri;
10) No break or interuption [sic] in service with the company;
11) Payments due, if any, to bridge insurance coverage and to keep the policy in force; and
12) Credit of five (5) days equivalent annual salary to Benetrade up front before returning to Tan-Tar-A.
It is understood that Marriott will take no retaliatory action against Mr. Holmes upon his return to Tan-Tar-A. Also, as has been agreed to prior, should we not be able to reach some kind of agreement, these matters in order to resolve this matter will not be admissible in any further action.
It would be in everyone’s best interest to get this matter resolved and put behind them. Your offer to re-employ Mr. Holmes at Tan-Tar-A along with the above is an extremely fair, workable and just result for all parties involved.
Should you have any questions, please do not hesitate to contact me.
Very truly yours,
Frederick W. James
Holmes contends that the May 20, 1991 letter from Mr. Palladino is inadmissible under Federal Rule of Evidence 408 to establish Marriott’s contention that it is an unconditional offer of reinstatement. Pl.Br. in Resistance to Def.M. for Summ.J. at 27-30. Alternatively, Holmes argues that if the offer is admissible, a fact question exists as to whether it was an unconditional offer of reinstatement. Id. at 30-33.
B. The Admissibility of Marriott’s Offer of Reinstatement to Holmes
Holmes’ argument that Federal Rule of Evidence 408
11
bars the admissibility of
*711
the May 20, 1991 letter is premised on a single citation to
authority—Pierce v. F.R. Tripler & Co.,
Evidence that demonstrates a failure to mitigate damages goes to the “amount” of the claim and thus, if the offer was made in the course of compromise negotiations, it is barred under the plain language of Rule 408. Under Fed.R.Evid. 104(a) preliminary factual questions concerning the admissibility of evidence, such as whether an offer was made in the course of settlement negotiations, are to be determined by the court.
Pl.Br. in Res. to Def.M. for Summ.J. at 27-30. Holmes’ reliance on the decision in
Pierce
inapposite. Most importantly, the settlement offer at issue in
Pierce
was held by the court to be not “unambiguously unconditional .... ”
Pierce,
C. The May 20, 1991 Offer of Reinstatement to Holmes
The court holds that the May 20, 1991 letter from Palladino to Holmes constitutes an unconditional offer of reinstatement. Holmes has simply failed to generate a material question of fact on the unconditional nature of the offer contained in this letter. Indeed, at the summary judgment hearing on August 27, 1993, Holmes’ counsel conceded there was nothing about the content of the May 20, 1991 Palladino letter that was anything but an unconditional offer of reinstatement. Rather, counsel argued that in the context of the various settlement discussions, the offer was not unconditional. The court rejects this argument.
The May 20, 1991 Palladino letter specifically advised Mr. Holmes that “effective immediately” Marriott is extending to him “an unconditional offer to return to your former position with Marriott at the Des Moines Marriott.” The letter further indicates he would be compensated “at the same wage rate” and provided with the “same level of benefits.” Additionally, as an option, the letter provides the same unconditional offer to return to his former position at the Marriott at Tan-Tar-A Marriott in Missouri. Most importantly, the letter specifically advises Holmes that “[b]y accepting either unconditional offer, you are not obligated to discontinue any legal action pending against the Company to which you are a party.” In sum, there is simply nothing about the offer of reinstatement that a trier of fact could find would be anything but unconditional. Holmes’ claim that the May 20, 1991 offer was a “veritable sham put forth to circumvent liability imposed by the ADEA” (Pl.Br. in Resistance to Def.M. for Summ.J. at 39) is unsupported by any factual basis. Likewise, Holmes’ counsel’s statement at the August 27, 1993 summary judgment hearing that Marriott’s offer of reinstatement was “insincere” is equally without any factual support.
*712
Holmes also argues that a subsequent letter dated June 18, 1991 from Anna Mary Culver, counsel for Marriott, which is in response to his counsel’s June 12, 1991 letter, undermines the unconditional nature of the May 20, 1991 Palladino letter. That letter discusses “a settlement agreement that would include a waiver and release of all claims.” While the parties were unable to provide a clear explanation of this phrase at the summary judgment hearing, for two independent reasons the court is unwilling to give it the meaning advanced by Holmes. First, the subsequent letter from Marriott’s Iowa counsel, dated July 25, 1991, clearly indicated that “Marriott’s unconditional offer of reinstatement conveyed to Mr. Holmes in George Paladino’s [sic] letter of May 20,1991 remains open.” Thus, Holmes cannot argue in good faith that the July 25th letter created any ambiguity regarding the unconditional nature of the May 20th offer. Secondly, Holmes essentially had three choices when he received the May 20, 1991 unconditional offer of reinstatement. He could have accepted it, rejected it, or sought a clarification of it.
Graefenhain,
Finally, paragraph 23 of Holmes’ affidavit in support of his resistance to Defendant’s motion for summary judgment fails to generate a material question of fact concerning Marriott’s unconditional offer of reinstatement. Holmes’ claim that it would have been financially impossible to return to Iowa or Missouri without the company’s help is a eonclusory allegation unsupported by any factual basis. Also, Holmes’ brief, while discussing the fact that Holmes had moved more than 1,000 miles from Iowa, fails to specifically assert that this move constituted a “special circumstance” under
Ford Motor Co.,
Generally, it is the duty of the trier of fact to weigh the evidence to determine whether a reasonable person would refuse the offer of reinstatement. On its face, Indianhead’s offer would have restored Fiedler to the position he held when he was terminated without any loss of back pay or benefits. On the motion for summary judgment Fiedler failed to present any evidence that Indianhead’s offer was not a good faith offer. Fiedler has thus failed to “set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). We conclude that no jury could find that Fiedler’s refusal of the offer of reinstatement was reasonable.
Fiedler,
In summary, this court holds that Holmes has failed to generate a material question of fact supported by specific factual showing that either Marriott’s offer of reinstatement was anything other than unconditional or that Holmes’ refusal to accept it was reasonable. Therefore, Marriott is entitled to partial summary judgment pursuant to Federal Rule of Civil Procedure 56. Any liability of Marriott for Holmes’ back pay and front pay have been tolled by Holmes’ June 12, 1991 response to the May 20, 1991 Palladino let
*713
ter. “Generally, the relevant period for measuring back pay is the time between the termination
and plaintiffs action upon an offer of
reinstatement....”
Fiedler,
VII. CONCLUSION
For the reasons stated above, Marriott’s well-conceived, presented and argued motion for summary judgment is denied except for the their argument that any back or front pay to which Holmes may become entitled, is tolled by his June 12, 1991 rejection of Marriott’s May 20, 1991 unconditional offer of reinstatement.
The issues that Marriott raised and that I have rejected are very close ones. It appears the evidence supporting Marriott’s asserted legitimate non-discriminatory reasons for the termination of Holmes is strong and that Holmes’ evidence of age discrimination is relatively weak. Nevertheless, issues of an employer’s' motivation in discharging an employee—often* riddled with subtleties and nuances from which vastly different conclusions may be drawn—are particularly well-suited for determination by the ultimate trier of fact—in this case a jury.
IT IS SO ORDERED.
Notes
. Holmes views Marriott's summary judgment motion as strictly limited to the ADEA claim and not Holmes’ claim under the ICRA. Br. in Resistance to Def.Mot. for Summ.J. at 5. Marriott’s various submissions relating to its summary judgment motion are ambiguous on this question. For example, in a conclusion of its first argument in its brief in support of summary judgment Marriott argues: “In these circumstances, the purpose of ADEA would be served by dismissing the Plaintiff’s case.” Br. in Supp. of Def.Mot. for Summ.J. at 5. No mention is made of Holmes’ ICRC claim. On the other hand, Marriott’s actual motion for summary judgment states: “Plaintiff cannot show any evidence of age discrimination and as such would not be able to prevail either before a jury or the court on his
claims
of age discrimination (emphasis supplied). Def.Mot. for Summ.J. at ¶ 3. Notwithstanding these and other similar ambiguities throughout Marriott’s summary judgment submissions, the court will apply each of Marriott’s arguments with equal force to Holmes’ claims under the ICRA. This is especially appropriate in light of the Iowa Supreme Court’s holding that the conceptual framework for establishing a
prima facie
case under the ADEA is also the same framework to be applied to an age discrimination claim arising under the ICRA.
Landals v. George A. Rolfes Co.,
The Iowa Supreme Court has observed, concerning a plaintiff's prima facie case of age discrimination under the ICRA, that a plaintiff:
may prove age discrimination by either of two methods. One method is to present direct or circumstantial evidence that age was a determining factor in the employer's employment decision. The other method of proof is to utilize the indirect, burden-shifting method of proof as established in McDonnell Douglas Corp. v. Green,411 U.S. 792 ,93 S.Ct. 1817 ,36 L.Ed.2d 668 (1973).
Landals,
.
See McDonnell Douglas Corp. v. Green,
. The reasoning behind the inference created by the establishment of a
prima facie
case in the tripartite pattern of proof was explained by the court in
Fumco Constr. Corp. v. Waters,
A prima facie case under McDonnell Douglas raises an inference of discrimination only because we presume that these acts, if otherwise unexplained, are more likely than not based on the consideration of impermissible factors. And we are willing to presume this largely because we know from our experience that more often than not people do not act in a totally arbitrary manner, without any underlying reasons, especially in a business setting—
Id.
at 577,
. An issue of material fact is genuine if it has a real basis in the record.
Hartnagel v. Norman,
. At oral argument on Marriott's summary judgment motion, Holmes' counsel postulated that application of the Proud-Lowe rule to intra-corporate transfers would provide an easy subterfuge for employers. Employers would simply transfer unwanted employees within the protected age group and quickly dismiss them so as to utilize the inference of the Proud-Lowe rule. This court is unwilling to ascribe such a sinister and pervasive motive to employers sufficient to carve an across the board exception for intracorporate transfers out of the Proud-Lowe rule. Of course, an exception may be made in any case where the evidence warrants it—this is not such a case.
. Justice O’Connor stated in her concurring opinion that "stray remarks in the workplace— cannot justify requiring the employer to prove that its hiring or promotion decisions were based on legitimate criteria.”
Price Waterhouse,
. In
Samarzia v. Clark County,
. Marriott relies on
La Montagne v. American Convenience Products, Inc.,
. At the hearing on Marriott's motion for summary judgment held on August 27, 1993, the parties conceded that a valid unconditional offer of reinstatement under
Ford Motor Co. v. E.E.O.C.,
. 42 U.S.C. § 2000e-5(g).
. Federal Rule of Evidence 408 states:
Evidence of (1) furnishing or offering or promising to furnish, or (2) accepting or offering or promising to accept, a valuable consideration in compromising or attempting to compromise a claim which was disputed as to either validity or amount, is not admissible to prove liability for or invalidity or the claim or its amount. Evidence of conduct or statements made in compromise negotiations is likewise not admis *711 sible. This rule does not require the exclusion of any evidence otherwise discoverable merely because it is presented in the course of compromise negotiations. This rule also does not require exclusion when the evidence is offered for another purpose, such as proving bias or prejudice of a witness, negativing a contention of undue delay, or proving an effort to obstruct a criminal investigation or prosecution.
. The court in
Ford Motor Co.
noted that plaintiff moving a great distance to find a replacement job might provide a special circumstance justifying an exception to the general rule that the accrual of back pay liability is told by the failure to accept an unconditional offer of reinstatement.
Ford Motor Co.,
