Ahern v. Ameritech Corporation

739 N.E.2d 1184, 137 Ohio App. 3d 754
CourtOhio Court of Appeals
DecidedMay 22, 2000
Docket75807, 75808 and 75809
StatusPublished
Cited by21 cases

This text of 739 N.E.2d 1184 (Ahern v. Ameritech Corporation) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahern v. Ameritech Corporation, 739 N.E.2d 1184, 137 Ohio App. 3d 754 (Ohio Ct. App. 2000).

Opinion

*763 Spellacy, Judge.

This is a consolidated appeal of appellate case numbers 75807, 75808, and 75809. Defendants-appellants Ameritech Corporation, Ameritech Services Incorporated, and Barbara Gerald appeal from the jury verdict entered in favor of plaintiffs-appellants Bryan and Kathleen Ahern. The Aherns prevailed below on their claims of age discrimination, loss of consortium, the value of stock options, and punitive damages. The trial court also awarded prejudgment interest.

I

On February 15, 1965, Bryan Ahern began working for Ohio Bell as a lineman. Ahern held a variety of positions with Ohio Bell and its successor Ameritech Corporation in the succeeding years. In 1994, Frank Jenuleson, a general manager with Ameritech Pay Phone Services interviewed Ahern for a position. Ameritech Pay Phone Services is a division of Ameritech Services Incorporated. Ahern accepted a position as assistant manager with Ameritech Pay Phone Services. In 1995, Michael Krol, the vice-president of Ameritech Pay Phone Services, promoted Ahern to the level of director in charge of franchise development. Ahern’s salary level increased from a grade five to a six. Ahern received Ameritech stock options because of his position as a director. Ahern presented the results of the project not only to Ameritech Pay Phone Services but to Ameritech Corporation as a whole.

Ahern’s project involving franchise development ended in early 1996. At that time, there was a vacancy for a franchise manager in Cleveland. Ahern accepted the position. Ahern continued to be compensated at a grade six salary level although the franchise manager position was a grade level five.

Jenuleson stated that Ahern achieved excellent results while performing his duties at Ameritech Pay Phone Services, particularly in the areas of installation, maintenance, collections, and securing contracts for the company. The contracts were quite lucrative for Ameritech Pay Phone Services. Ahern put in long hours at work and always went in on Saturdays. Krol selected Ahern for the President’s Club, which is reserved for the top ten percent of franchise managers. Ahern and his wife were sent on an all-expense paid trip to Palm Springs. Ahern received four quarterly president’s awards. Ahern had an unblemished record with Ameritech with regard to discipline.

In spring of 1996, Barbara Gerald replaced Jenuleson as general manager, supervising Ahern. Ahern felt that the work environment changed significantly under Gerald. Jokes with inappropriate sexual content, some accompanied by gestures, were told by Ahern’s fellow employees who were younger than Ahern. Most of the jocularity took place at after-hour dinners and other gatherings. *764 Ahern did not join in the humor, once even slamming down his possessions before leaving the room in disgust. Gerald participated in the horseplay. Ahern also observed physical touching taking place, sometimes during meetings. The touching primarily involved neck massages, which are listed by Ameritech as an example of sexual harassment. Gerald both received and gave the massages.

In December 1995, Ameritech Pay Phone Services introduced the personal vehicle reimbursement (“PVR”) policy. Prior to this, some of the employees, including Ahern, were assigned company cars. Under PVR, employees were to drive their personal cars for company business. Vehicles meeting the company’s standards were to be available for the employee to use for business each work day. If the employee’s personal vehicle was not available, the employee was responsible for providing an acceptable replacement. Ameritech Pay Phone Services reimbursed participants in the PVR plan by paying the employees the sum of $165 a month plus mileage. To be eligible, an employee had to drive an average of at least one thousand business miles per month. Even if driving only one mile for business purposes in a particular month, an employee would receive the money.

In September 1996, Ahern began borrowing company vehicles to use for business purposes. Ahern continued to use company automobiles and his personal vehicle until mid-December. Security would record in their logs each time Ahern drove a company vehicle out of the garage. Ameritech Pay Phone Services paid Ahern the monthly reimbursement payment of $165 during this period plus mileage when Ahern drove his personal vehicle.

Gerald became aware of Ahern’s use of a company automobile in October after two employees questioned her about the situation. Gerald contacted Ameritech’s corporate security regarding the matter. Security conducted an investigation and reported to Gerald that Ahern’s use of the company car was a violation of Ameritech’s Code of Business Conduct. Gerald discussed the situation with her supervisor, Michael Krol, who said he would concur with Gerald if she decided to terminate Ahern from his employment with Ameritech Pay Phone Services. Gerald stated that, under the Code of Business Conduct, she had the responsibility to safeguard Ameritech’s assets. Gerald felt that Ahern violated the Code of Business Conduct by repeatedly driving a company vehicle while receiving compensation under the PVR plan for using his personal vehicle. Gerald was aware that a violation of the Code of Business Conduct would be reported to the Chief Executive Officer of Ameritech.

On December 13, 1996, Ahern was called into a meeting with Gerald and corporate security. The security investigators asked Ahern about his use of a company car. Ahern admitted to driving a corporate vehicle but did not understand this violated the PVR plan. No one had discussed with Ahern his use *765 of a company car while participating in the PVR plan before this meeting. At the end of the two-hour meeting, Ameritech Pay Phone Services terminated Ahern’s employment. A corporate security investigator escorted Ahern from the building. At the time of his termination, Ahern was fifty-three years old.

On January 24, 1997, Ahern filed a complaint against Ameritech Corporation. Ahern brought causés of action for sexual harassment, age discrimination, retaliatory discharge, and breach of an agreement to grant stock options. Ahern amended his complaint to add a claim of negligence. Ahern obtained leave of court to amend his complaint a second time to add his wife, Kathleen, as a new-party plaintiff and Barbara Gerald as a new-party defendant. When Ahern filed his second amended complaint, he also added Ameritech Pay Phone Services of Ohio as a new-party defendant. Kathleen Ahern brought a claim for loss of consortium. The parties agreed to substitute Ameritech Services Incorporated for Ameritech Pay Phone Services of Ohio. The Aherns dismissed their claims against Ameritech Pay Phone Services of Ohio.

The defendants filed motions for summary judgment. The trial court granted summary judgment for Ahern’s negligence claim and denied summary judgment as to the remainder of the Aherns’ causes of action.

The case proceeded to trial. The trial court denied the defendant’s motion for directed verdict. The jury found for Bryan Ahern' on his claim of age discrimination. The jury awarded Ahern compensatory damages of $568,000 against Ameritech and $10,000 against Gerald. The jury found in Kathleen Ahern’s favor for her loss-of-consortium claim against Ameritech but in Gerald’s favor on the same claim.

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Bluebook (online)
739 N.E.2d 1184, 137 Ohio App. 3d 754, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahern-v-ameritech-corporation-ohioctapp-2000.