Appelbaum, Doris S. v. Milwaukee Metro

CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 28, 2003
Docket01-2977
StatusPublished

This text of Appelbaum, Doris S. v. Milwaukee Metro (Appelbaum, Doris S. v. Milwaukee Metro) 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
Appelbaum, Doris S. v. Milwaukee Metro, (7th Cir. 2003).

Opinion

In the United States Court of Appeals For the Seventh Circuit ____________

No. 01-2977 DORIS S. APPELBAUM, Plaintiff-Appellee, v.

MILWAUKEE METROPOLITAN SEWERAGE DISTRICT, Defendant-Appellant. ____________ Appeal from the United States District Court for the Eastern District of Wisconsin. No. 00 CV 366—Thomas J. Curran, Judge. ____________ ARGUED MAY 13, 2002—DECIDED AUGUST 28, 2003 ____________

Before ROVNER, DIANE P. WOOD, and WILLIAMS, Circuit Judges. ROVNER, Circuit Judge. Doris Appelbaum worked as a secretary for the Milwaukee Metropolitan Sewerage Dis- trict (“MMSD”) for fifteen years until she was discharged at age sixty. A jury found that the MMSD had fired her based on her age, in violation of the Age Discrimina- tion in Employment Act of 1967, as amended, 29 U.S.C. §§ 623(a)(1), 626 (the “ADEA”), and that it did so in wil- ful disregard of the ADEA’s provisions, see id. § 626(b). MMSD appeals, contending the evidence was insufficient to support either the liability or the wilfulness determi- nations. We affirm. 2 No. 01-2977

I. Appelbaum’s employment with MMSD began in 1983. Beginning in 1991 and through the date of her termina- tion, she was assigned to MMSD’s Human Resources de- partment. As of 1996, Appelbaum was one of three secre- taries in that department. However, in August 1996, MMSD’s number two official, Kristine Hinrichs, decided that the number of secretaries in the department should be reduced from three to two. She made this decision pursuant to a reduction in force and partial privatization of MMSD’s operations that eventually would reduce its overall workforce from a total of between 600 and 700 em- ployees down to 200. Of the three secretaries in the Human Resources De- partment, Hinrichs selected Appelbaum for layoff. In choosing Appelbaum, Hinrichs rejected the advice of department managers, who felt that she should instead lay off a younger (in her late thirties) employee, Cassandra Reynolds-Taylor, whose work was regarded as poor. Origi- nally, Appelbaum was to be laid off effective January 1, 1997, but that date subsequently was extended to July 1, 1997, so that Appelbaum, who in July turned sixty, could retire with full pension benefits. Ultimately, Appelbaum’s job was saved when one of the other secretaries in the department resigned in Feb- ruary 1997, obviating the need for a layoff. The follow- ing month, Don Schriefer became the new Manager of Human Resources. In the five years prior to that appoint- ment, Schriefer had worked for MMSD as a labor and em- ployment lawyer. Shortly after he took over the Human Resources department, Schriefer fired Reynolds-Taylor based on repeated complaints about her performance; Schriefer would later describe her work as “[p]retty egre- gious.” R. 65 at 247. “Almost everything that she did was done erroneously or wrong or not done at all.” No. 01-2977 3

Id. The discharge of Reynolds-Taylor left Appelbaum as the only secretary in the department, with a heavy work- load. For obvious reasons, employees of the Human Resources department were obligated to keep in confidence the pri- vate information regarding other MMSD employees with whom they dealt in the course of their work. The impor- tance of maintaining confidentiality was something that Schriefer stressed to employees of the department on more than one occasion. Schriefer informed the staff that any breach of that confidentiality would result in termination. Despite Schriefer’s warnings, confidential information was leaked from the Human Resources de- partment on a number of occasions during his tenure as Manager. On one occasion, for example, Schriefer met with a temporary MMSD employee to inform her that her employment contract was being terminated. Before he could break the news, the employee revealed that she already knew she was going to be fired. She told Schriefer that she had a “secret friend” at MMSD who had learned of the termination decision from someone in the Human Resources department. R. 65 at 224-25. (Schriefer previously had discussed the decision to discharge this employee with other members of the department.) In the wake of this incident, Schriefer again admonished his staff about the importance of confidentiality and re- minded them that any leak of confidential information would result in discharge of the offending employee. Not long after this incident, Schriefer imposed a five- day disciplinary suspension on Trina DeLeon, an em- ployee in his department, for what he believed to be insub- ordinate behavior. DeLeon had ordered Schriefer out of her office when he attempted to question her about a 4 No. 01-2977

leak of confidential information.1 DeLeon subsequently became aware that word was out among MMSD staff about her suspension and complained to Schriefer. Schriefer commenced an investigation to determine who had dis- closed the information, and as part of that investigation he interviewed all of the employees in his department. When Schriefer spoke with Appelbaum, she revealed that one day when she was on her way to the washroom, an MMSD employee by the name of Sheila Ashley had stopped Appelbaum and asked whether she had heard about DeLeon’s suspension. Appelbaum responded to Ashley, “[Y]es, I heard,” and added that she was not at liberty to discuss the matter; Appelbaum suggested that she address any questions to DeLeon herself. R. 65 at 54. Schriefer construed Appelbaum’s remarks to Ashley as a leak of confidential information, and he decided to fire Appelbaum for the transgression. Schriefer believed that Appelbaum’s discharge was warranted on a second ground: her work performance. Appelbaum’s work had been rated satisfactory or better throughout the bulk of her tenure with MMSD, and she had received a number of merit-based increases in her salary. But early in 1997, Schriefer’s predecessor in the Human Resources department had prepared a review for 1996 indicating that Appelbaum’s work needed improve- ment in certain areas. In Schriefer’s view, Appelbaum’s performance had not changed for the better in 1997. He decided to fire her on this basis as well.

1 Apparently, someone had informed DeLeon of another em- ployee’s intent to resign from MMSD’s employ. When Schriefer learned that DeLeon had come into possession of this informa- tion, he demanded that DeLeon tell him what she knew. DeLeon took umbrage at Schriefer’s manner and refused to tell him anything. R. 65 at 148-49, 157-58, 227, 240. No. 01-2977 5

Schriefer subsequently met with Appelbaum and ad- vised her of his intent to discharge her. He offered Appel- baum a separation agreement pursuant to which MMSD would supply a neutral letter of reference to prospec- tive employers and Appelbaum in turn would waive any claims she might have under the ADEA. Schriefer ad- vised Appelbaum that if she did not accept MMSD’s of- fer, he would fire her. He gave her several weeks to con- sider the offer. Appelbaum ultimately declined the offer. Upon learning that Appelbaum had rejected the separa- tion agreement, Schriefer on January 21, 1998, sent her a Notice of Contemplated Discipline formally advising her of his decision to terminate her employment. Schriefer’s memorandum indicated that his decision was based on her work performance as well as her breach of confiden- tiality. On the subject of her work quality, Schriefer ad- vised Appelbaum that he had “received complaints this year about your performance from every staff member, as well as from both temporary workers we employed this year.” R. 25 Ex. E-1, Notice of Contemplated Discipline at 2. Appelbaum prepared a written response to Schriefer’s memorandum challenging both of the reasons he had given for her termination.

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