54 Fair empl.prac.cas. 377, 55 Empl. Prac. Dec. P 40,364 Bernard S. Holzman, Cross-Appellant v. Jaymar-Ruby, Inc., Cross-Appellee

916 F.2d 1298, 1990 U.S. App. LEXIS 19351, 55 Empl. Prac. Dec. (CCH) 40,364, 54 Fair Empl. Prac. Cas. (BNA) 377, 1990 WL 164068
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 30, 1990
Docket89-2687, 89-2735
StatusPublished
Cited by26 cases

This text of 916 F.2d 1298 (54 Fair empl.prac.cas. 377, 55 Empl. Prac. Dec. P 40,364 Bernard S. Holzman, Cross-Appellant v. Jaymar-Ruby, Inc., Cross-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
54 Fair empl.prac.cas. 377, 55 Empl. Prac. Dec. P 40,364 Bernard S. Holzman, Cross-Appellant v. Jaymar-Ruby, Inc., Cross-Appellee, 916 F.2d 1298, 1990 U.S. App. LEXIS 19351, 55 Empl. Prac. Dec. (CCH) 40,364, 54 Fair Empl. Prac. Cas. (BNA) 377, 1990 WL 164068 (7th Cir. 1990).

Opinion

MANION, Circuit Judge.

Bernard Holzman sued Jaymar-Ruby, Inc. (Jaymar) in federal court, alleging unlawful age discrimination under the Age Discrimination in Employment Act (ADEA). ' A jury found that Jaymar had discriminated against Holzman because of his age and awarded him a total of $185,-015 in front and back pay. The jury further found Jaymar’s discrimination to be willful. The district court granted Jay-mar’s motion for judgment notwithstanding the verdict (JNOV) on the issue of willfulness, but denied it as to liability. Jaymar appeals, and Holzman cross-appeals. We affirm the district court’s judgment in all respects.

I.

The primary issue Jaymar raises in its appeal is whether the district court erred by denying its JNOV motion on Holzman’s ADEA claim. The ADEA provides, in pertinent part, that: “It shall be unlawful for an employer ... to fail or refuse to hire or to discharge any individual or otherwise discriminate against an individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s age.” 29 U.S.C. § 623(a). In reviewing the jury’s verdict, the only question we need to resolve is whether the evidence was sufficient for a reasonable jury to conclude that age was a determining factor in Jaymar's decision to fire Holzman. Brown v. M & M/Mars, 883 F.2d 505, 507 (7th Cir.1989). In deciding that question, we must view all the evidence in the light most favorable to Holzman, and resolve all evidentiary conflicts and draw all reasonable inferences in Holzman’s favor. Id.; McCalpine v. Foertsch, 870 F.2d 409, 414 (7th Cir.1989).

Jaymar manufactures men’s clothing. Holzman was a salesman for Jaymar whose sales territory covered Northwestern Indiana and part of Illinois. To protect its reputation, Jaymar selects certain retailers to sell its goods. Jaymar has a policy against selling merchandise to retailers who divert that merchandise to unauthorized retailers for sale. 1 The reasons for this policy are to prevent retailers that *1300 Jaymar believes do not meet its quality standards from selling Jaymar’s goods, and to protect its approved retail outlets from being undercut by discounters. Jaymar’s executive vice-president Edwin Levitin testified that Jaymar had an “off-stated rule” that it would fire any salesman who sold to a diverter.

According to Jaymar’s witnesses, in early 1986 Jaymar detected an unusual buying pattern by Mr. Roberts, a Chicago-area retailer and Holzman account. Jaymar’s witnesses testified that retailers usually order goods at least one full season before the retail selling season for those goods. (Such orders are known as advance orders.) Mr. Roberts, however, had not placed an advance order since its initial order in 1983. Instead, Mr. Roberts had been placing large “immediate” or “fill-in” orders, orders retailers normally place during the selling season to replace depleted stock. Jaymar executives testified they thought this buying pattern indicated Mr. Roberts might be diverting goods, and decided to investigate.

The first step Jaymar took in its investigation was to order its shipping department in March 1986 to begin “marking” merchandise that it sent to Mr. Roberts. “Marking” merchandise involved placing a code on the waistband ticket of men’s slacks, so that if those slacks turned up in a store other than the authorized retailer Jaymar could determine who diverted those slacks to the unauthorized retailer. Jay-mar did not tell Holzman that it suspected Mr. Roberts of diverting, or that it was marking merchandise shipped to Mr. Roberts. '

Floyd Wallace, Jaymar’s regional sales manager and Holzman’s supervisor, testified that on April 1', 1986, he visited the Mr. Roberts store and found no Jaymar goods, despite recent shipments to the store. On April 2, William Grasso, Jaymar’s national sales manager, dispatched a memorandum noting that Mr. Roberts was suspected of being a diverter and suggesting that Jay-mar needed to make “a clear example” of a salesman to enforce the no-diversion policy: “The message will be clear that we will not condone this action by any man ... regardless of who he is.” Jaymar made another shipment to Mr. Roberts soon thereafter. Wallace testified he returned to the store on April 15 and again found no Jaymar merchandise on display.

According to Jaymar, Wallace reported his findings to Levitin. On April 21, Wallace telephoned Holzman and asked him to come to Jaymar’s office in Michigan City, Indiana the following morning. At that meeting, Levitin told Holzman that Jaymar suspected Mr. Roberts of diversion. Holzman responded that he had been in the Mr. Roberts store on March 1 and had seen Jaymar merchandise in the store. He also told Levitin that he did not know about any diversion. Grasso told Holzman that he could be fired for selling to a diverter. He also told Holzman, “I’m going to give you the opportunity of retiring because it would be a nice clean break for the company and for you.” Holzman refused to retire. Wallace testified he made a third visit to the store later that same day and found no Jaymar merchandise on display. He added that Mr. Roberts employees told him the store did not carry Jaymar goods. That evening, Grasso told Holzman that he would be terminated effective May 31. Holzman was 64 at the time.

Jaymar did not replace Holzman with any new employee. Jim Gole, age 58, took over Holzman’s Indiana accounts. Ed Freundlich, age 61, took over Holzman’s Illinois accounts. Freundlich soon retired, however, and Jaymar replaced him with a salesman in his mid-thirties.

Jaymar insists that the evidence proves that it fired Holzman because he sold to somebody he should have known was a diverter, not because of his age. There is no real dispute that Mr. Roberts diverted Jaymar merchandise: Mr. Roberts’ owner admitted diverting after Jaymar fired Holzman. Even if Jaymar had been mistaken about Mr. Roberts being a diverter, it would not have violated the ADEA if age was not a determining factor in the decision to fire Holzman. See Brown, 883 F.2d at 509; Pollard v. Rea Magnet Wire Co., 824 F.2d 557, 560 (7th Cir.1987). But the *1301 facts that Jaymar sincerely believed Mr. Roberts was a diverter, and even that Mr. Roberts actually was a diverter, do not necessarily disprove that age was not a determining factor. If the evidence gave the jury reason to believe that Jaymar would have treated younger salesmen who sold to diverters differently than it treated Holzman, the jury could conclude that age was a determining factor in Holzman’s firing. See Brown, 883 F.2d at 511.

Despite Jaymar’s evidence, the jury could reasonably conclude that age was a determining factor in the decision to fire Holzman. Jaymar’s witnesses testified that they first suspected Mr. Roberts of diverting because of the store’s “unusual” buying pattern. But Holzman testified that Mr.

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916 F.2d 1298, 1990 U.S. App. LEXIS 19351, 55 Empl. Prac. Dec. (CCH) 40,364, 54 Fair Empl. Prac. Cas. (BNA) 377, 1990 WL 164068, Counsel Stack Legal Research, https://law.counselstack.com/opinion/54-fair-emplpraccas-377-55-empl-prac-dec-p-40364-bernard-s-ca7-1990.