Bechold v. IGW System Inc.

635 F. Supp. 695, 1986 U.S. Dist. LEXIS 25104
CourtDistrict Court, S.D. Indiana
DecidedMay 23, 1986
DocketNo. IP 83-481-C
StatusPublished
Cited by2 cases

This text of 635 F. Supp. 695 (Bechold v. IGW System Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bechold v. IGW System Inc., 635 F. Supp. 695, 1986 U.S. Dist. LEXIS 25104 (S.D. Ind. 1986).

Opinion

[696]*696ORDER

STECKLER, District Judge.

This matter is before the Court for judgment following a trial to the Court on plaintiffs complaint of age discrimination. The Court heard the evidence over several days and has the transcript and exhibits before it. The Court also has had the benefit of post trial argumentative briefs from both sides. Therefore, the Court finds that oral argument is not necessary. Local Rule 10.

The undisputed evidence shows that plaintiff had been employed at defendant, IGW Systems, Inc., for over fifteen (15) years. The company has been owned by numerous entities over the past forty (40) years. In 1979, defendant was owned by Maul Technology Corporation. Robert Lee became president of defendant in late 1980. Subsequently, Maul was acquired by LGM Corporation, which was a private corporation owned by Lee and other investors. For most of its history, defendant has been a manufacturer of precision machined gears and housings for the aircraft industry. Defendant had been experiencing net losses for several years and was very dependent on its principal buyer, Sikorsky Aireraft/Helicopter. By 1981, defendant’s business with Sikorsky was declining.

Under Lee’s control, defendant began a capital improvement program. It sought to expand its product line, increase its marketing and production capabilities, attract new business, and improve its efficiency and quality control. In order to accomplish these goals, defendant acquired new, “high tech” machinery and brought in new management personnel. John Billinghire was promoted from Director of Operations to defendant’s President in January 1982. In July 1982, Robert Black was hired as Vice President of Engineering. Plaintiff and two other employees, Wayne Orlopp and Marc Lovell, were in the tool design group of the Engineering Department. Plaintiff was a skilled jig and fixture tool designer. Orlopp worked with perishable or cutting tools, and Lovell was being trained by both plaintiff and Orlopp. Lovell also was working on an engineering degree.

Defendant’s business continued to decline and in November 1982, Billinghire ordered a layoff of approximately eighty (80) hourly-rated production and maintenance employees. He also instructed the different department heads to cut back on the salaried employees. The selection of whom to permanently lay off was left to each department head. A total of thirty-six (36) salaried employees were permanently laid off. As Vice President of Engineering, Black made the selections in the Engineering Department. Both plaintiff, age sixty-one (61), and Orlopp, age fifty-eight (58) were among those laid off while Black kept Lovell, age twenty-three (23), as the lone tool designer.

The evidence at trial showed that Black’s goal when he was hired was to improve the efficiency of the Engineering Department and to make it technically equal to defendant’s competition in the hope of increasing defendant’s business. Consequently, Black used the layoffs to terminate those persons who he felt did not fit into the plans for the new department due to their performance or the nature of their job. Black chose plaintiff for layoff because the department no longer needed a highly skilled jig and fixture designer on a full-time basis. Black planned to use contract tool designers when necessary and retained Lovell to do the basic jig and fixture designing and maintenance along with working on perishable tools. Black also believed that plaintiff did not have the required experience in perishable tool design.

To prove age discrimination under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 621, et seq., plaintiff need not prove that age was the sole factor motivating his termination, but that age was a determining factor in the defendant’s decision to terminate plaintiff’s employment. LaMontagne v. American Convenience Products, Inc., 750 F.2d 1405, 1409 (7th Cir.1984). In a reduction in force case, which is what defendant claims this case is, plaintiff must prove a prima facie case by [697]*697showing that he was within the protected age group and was adversely affected by the employment decision, showing that he was qualified to assume another position at the time of his termination, and producing evidence from which the factfinder can conclude that defendant intended to discriminate. Dorsch v. L.B. Foster Co., 782 F.2d 1421, 1424 (7th Cir.1986). Although plaintiff contends that Lovell really replaced plaintiff rather than defendant eliminating plaintiff’s position, plaintiff’s burden is essentially the same. See LaMontagne, 750 F.2d at 1409. Additionally, once defendant has proffered a legitimate, nondiscriminatory reason for its decision, the prima facie threshold is no longer a relevant issue. The relevant issue becomes whether plaintiff has produced sufficient evidence to rebut defendant’s proffered reason and to show that defendant terminated plaintiff because of his age. Graefenhain v. Pabst Brewing Co., 620 F.Supp. 696, 700 (E.D.Wis.1985). Consequently, the question of whether Lovell actually replaced plaintiff or whether Lovell was retained instead of plaintiff involves the same inquiry.

Here defendant maintains that a reduction in force was necessary. The evidence supports this contention. However, even in a legitimate reduction, an employer cannot select employees for layoff because of their age. Graefenhain, 620 F.Supp. at 700. Defendant contends that age was not a factor in Black's selection process. Nor were plaintiff’s work performance and qualification as a jig and fixture designer factors. Rather, Black testified that in his opinion, plaintiff’s skills were no longer necessary and that plaintiff could not do the high tech perishable tooling work that he felt the department would need for its new goals. Plaintiff may prove that defendant’s stated reason for terminating him was a pretext by showing that the reason has no basis in fact and is not worthy of credence, or that the stated reason was not the motivating factor, or that the reason was insufficient to motivate a discharge. LaMontagne, 750 F.2d at 1414-15 and n. 6.

Plaintiff argues that several pieces of evidence rebut defendant’s proffered reason for plaintiff’s termination. First plaintiff points to his qualifications and expertise as a tool designer. The testimony of several witnesses supports plaintiff’s contention. Plaintiff’s supervisors testified that plaintiff was highly skilled in jig and fixture design, that he could have designed perishable tools, and that he was willing to learn the new technology. However, plaintiff had had little experience with perishable tools in the last several years. Black testified that he had talked to Steve Mobley, plaintiff’s immediate supervisor, and was told that plaintiff had no recent experience on perishable tools. Black also testified that he had reviewed plaintiff’s skills and looked at his background and did not believe plaintiff had the type of experience defendant wanted or needed.

Plaintiff also contends that the evidence shows that defendant was really motivated by age animus. Plaintiff points to the number of people in the protected age group who were laid off. Of the thirty-six (36) salaried positions, twenty-six (26) were within the protected age group.

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635 F. Supp. 695, 1986 U.S. Dist. LEXIS 25104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bechold-v-igw-system-inc-insd-1986.