Ann MacGregor v. Mallinckrodt, Inc., a Delaware Corporation Tyco International, Ltd., a Bermuda Based Corporation Jerry Mattys and Hans Stover

373 F.3d 923, 58 Fed. R. Serv. 3d 1007, 2004 U.S. App. LEXIS 13440, 94 Fair Empl. Prac. Cas. (BNA) 35, 2004 WL 1459399
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 30, 2004
Docket03-3166
StatusPublished
Cited by55 cases

This text of 373 F.3d 923 (Ann MacGregor v. Mallinckrodt, Inc., a Delaware Corporation Tyco International, Ltd., a Bermuda Based Corporation Jerry Mattys and Hans Stover) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ann MacGregor v. Mallinckrodt, Inc., a Delaware Corporation Tyco International, Ltd., a Bermuda Based Corporation Jerry Mattys and Hans Stover, 373 F.3d 923, 58 Fed. R. Serv. 3d 1007, 2004 U.S. App. LEXIS 13440, 94 Fair Empl. Prac. Cas. (BNA) 35, 2004 WL 1459399 (8th Cir. 2004).

Opinion

*926 GOLDBERG, Judge.

Appellants Mallinckrodt, Inc., Tyco International, Inc., Jerry Mattys, and Hans Stover (collectively “Mallinckrodt”) appeal from a jury award to Appellee Ann MacGregor (“MacGregor”) in a gender discrimination suit. Mallinckrodt charges as error denial of its motions for remittitur, new trial, and judgment as a matter of law by the district court. 2 Mallinckrodt also claims that the district court abused its discretion by taking judicial notice of the company’s size. For the following reasons, we affirm.

1. Statement of Facts

Mallinckrodt, Inc. (“the company”), a producer and seller of health care products, employed MacGregor, who was the senior female in marketing and the only female among the three Business Segment Directors (“BSDs”) at the Plymouth, Minnesota facility. Her compensation was significantly less than the two male BSDs, and she had fewer direct reports. The company justified the higher salary for Leon Narem, a BSD, because he produced the most revenue, and though David Baker, another BSD, accounted for the least revenue, his higher compensation was justified because he had sold his Canadian company to the company in 1995.

Jerry Mattys, MacGregor’s initial supervisor, was promoted to national vice president in early 1999. Mattys reorganized his chain of command from seventeen direct reports, four of whom were female, to twelve direct reports, none of whom were female. Mattys also named Hans Stover, formerly MacGregor’s peer, to succeed Mattys in his former post. At his first meeting, Stover commented that there were “too many women at the table.” The remark was reported to Tina Cronin, the Director of Human Resources. Instead of reprimanding him, Cronin told Stover to be careful with such comments because they could be taken “out of context.” Additionally, when a female manager proposed’ hiring a female candidate in her department, Stover refused, stating that “there are too many women in marketing.”

Stover decided to consolidate the BSD positions into one Director of Marketing, and, according to MacGregor, held an ongoing presentation contest to determine which BSD would be promoted. Stover also allowed David Gast, who. worked in sales rather than marketing and outside the Plymouth facility, to enter the contest after it had started. Although MacGre-gor’s scores exceeded those of Narem and Gast, Stover promoted Gast based on his higher energy level and better rapport with others.

Stover then offered MacGregor a new position, Director of Market Development. This new position had no budgetary or supervisory responsibilities. MacGregor engaged in negotiations with Stover and Mattys about her continued employment. Given her success with a recent project, MacGregor requested a $12,000 per year pay increase to $105,000 per year, a $15,000 signing bonus, the title of Senior Director, and confirmation that her position would lead to advancement. Stover refused the signing bonus and offered only a $7,000 per year pay increase. He declined the higher title because he wanted his direct reports at the same level. Sto-ver told MacGregor that his offer was the best he could do. On September 1, 1999, MacGregor left Stover a message rejecting the position as offered.

*927 Meanwhile, MacGregor had complained to Mattys, alleging Stover had discriminated against her. Mattys alerted Cronin, who responded by interviewing MacGre-gor, Mattys, Stover, and various witnesses and by consulting with Mallinckrodt’s in-house counsel. Cronin determined there had been no discrimination. Mallinekrodt contends that the results of this investigation were communicated to MacGregor, but MacGregor denies such a report.

On September 2, 1999, Stover sent a memo to Mallinekrodt employees stating that MacGregor was leaving the company. He offered the Director of Market Development position to Narem. Narem had been making $100,000 per year, and after Stover acquiesced to his request for his annual merit increase, Narem took the position at $104,000 per year. He remained there until the Plymouth facility closed on December 31, 2000.

On September 3, 1999, MacGregor received a letter stating October 3, 1999 as her last day; the letter offered her severance pay and notice of her rights under COBRA. MacGregor stayed until October 31, 1999 to launch a new product her team had created and developed.

On summary judgment, the district court dismissed all of MacGregor’s claims against Mallinekrodt except for gender discrimination under Title VII of the Civil Rights Act of 1964 (“Title VII”) and all claims against Mattys 3 . After a week-long trial, a jury awarded MacGregor a total of $1,000,000 in damages: $68,802 for lost wages, $102,000 for lost stock options, $1 for other damages, and $829,197 in punitive damages. Mallinckrodt’s motions for judgment as a matter of law, new trial, and remittitur were denied. However, applying the statutory damages cap under the Civil Rights Act of 1991, 42 U.S.C. § 1981a(b)(3)(D), the district court reduced the punitive damages award to $300,000.

II. Discussion

A. The District Court Properly Denied Judgment as a Matter of Law on Liability
1. There Was Sufficient Evidence To Find Mallinekrodt Liable

Mallinekrodt asserts that the district court erroneously denied its motion for judgment as a matter of law on MacGre-gor’s claim for gender discrimination. Mallinekrodt contends that MacGregor’s rejection of the Director of Market Development position restricts her to a constructive discharge theory to prove adverse action.

This Court reviews the district court’s denial of Mallinckrodt’s motion for judgment as a matter of law de novo and in the light most favorable to the jury verdict for MacGregor. Coffman v. Tracker Marine, L.P., 141 F.3d 1241, 1245, 1247 (8th Cir.1998) (internal citations omitted). This Court will not set aside a jury verdict “unless there is a complete absence of probative facts to support the verdict.” Browning v. President Riverboat Casino-Missouri, Inc., 139 F.3d 631, 634 (8th Cir.1998) (internal citation omitted).

A prima facie case of discrimination requires the employee to present evidence of an adverse employment action *928 brought on by the employer’s discriminatory motive. Kerns v. Capital Graphics, Inc., 178 F.3d 1011, 1016 (8th Cir.1999) (internal citation omitted). Whether there has been an adverse action is an issue of fact for a jury to determine. See Kim v. Nash Finch Co.,

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373 F.3d 923, 58 Fed. R. Serv. 3d 1007, 2004 U.S. App. LEXIS 13440, 94 Fair Empl. Prac. Cas. (BNA) 35, 2004 WL 1459399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ann-macgregor-v-mallinckrodt-inc-a-delaware-corporation-tyco-ca8-2004.