Boehms v. Crowell

139 F.3d 452, 1998 WL 175306
Court of Appeals for the Fifth Circuit·Decided April 16, 1998·No. 97-60030·Published·Cited by 39 cases

Opinion

STEWART, Circuit Judge:

This case, which calls for us to decide among other things the recoverability of attorney’s fees in an Age Discrimination in Employment Act (“ADEA”) suit against the government, arises from Joe Boehms’ 1992 nonselection as manager of the Tennessee Valley Authority’s Customer Service Center in Tupelo, Mississippi. 1 The court below found that Boehms’ nonselection was age-based discriminatory, but refused to extend Boehms’ back pay award beyond the date of his consequent retirement. Mindful of Boehms’ limited recovery, the court awarded him attorney’s fees.

On appeal, Boehms challenges only the court’s decision to limit his back pay award. Defendants Craven Crowell, Bill Kennoy, and Johnny Hayes, acting in their official capacities as members of the Board of Directors of TVA (collectively, “defendants”), cross-appeal the determination of liability, the award- of attorney’s fees, and the finding that Boehms sufficiently mitigated his damages during the time between his nonseleetion and retirement. We reverse the award of attorney’s fees and remand for further proceedings. Otherwise, we affirm.

*456 FACTUAL AND PROCEDURAL BACKGROUND

In 1961, Joe Boehms (“Boehms”) began working as an engineering aide for TVA’s power business. At the time, this business was organized into two separate divisions, the power systems operations division (the “operations division”) and the power use and distributor relations division (the “marketing division”). The operations division produced electricity and constructed and maintained TVA’s transmission lines; it ensured that TVA’s distributors (i.e., its customers) received TVA’s final product — electricity. The marketing division, of which Boehms became an employee, administered TVA’s power contracts, maintained distributor relations, and promoted efficient electricity use in the community.

In 1988, in connection with an extensive reorganization aimed at decentralizing TVA’s central offices and bringing decision-making closer to its distributors, TVA scrapped its divisional structure and placed the previously separate “operations” and “marketing” functions under the unified command of fifteen (15) district offices. Boehms, who had steadily risen through the management ranks of the marketing division, was appointed manager of TVA’s Tupelo, Mississippi district. For the first time in his career, Boehms became directly responsible for making day-to-day operations-related decisions. Despite Boehms’ claimed difficulty in learning the necessary skills, TVA acknowledges that his overall performance as district manager was viewed favorably by both supervisors and Tupelo district distributors.

In April of 1991, TVA effected another reorganization, downsizing its fifteen (15) district offices into thirteen (13) customer service centers. Effective January 20, 1992, each customer service center (“CSC”) was to be headed by a CSC manager, who in turn, was to be assisted by a CSC operations manager and a CSC marketing manager. Hoping to retain his command over the Tu-pelo office, Boehms applied for the CSC manager position. He was 55 years old at the time. 2

On January 14, 1992, Boehms’ supervisor, Glenn Parrish, informed Boehms that Van Wardlaw, Boehms’ 32-year old subordinate, was being offered the Tupelo CSC manager position, and that the position of CSC operations manager was available if Boehms so desired it. 3 Deeming the offer a “demotion,” Boehms rejected it. Parrish immediately handed Boehms a pre-prepared letter informing him that his job was being “surplussed,” and that he had the option of either resigning or entering the Employee Transition Program (“ETP”). Boehms chose to enter the ETP, which allowed him to remain with TVA for up to six months while he looked for similar employment both within and without TVA.

While in the ETP, Boehms twice rejected offers for the West Point, Mississippi CSC operations manager position, and refused to entertain numerous other advertised operations manager positions. Not once did a CSC manager position become available during this time. In November of 1992, having been unsuccessful in his efforts to secure suitable employment, Boehms was “reduced in force.” Boehms invoked his retirement privileges before departing. 4

In January of 1994, Boehms sued TVA, alleging, inter alia, that TVA violated ADEA § 633a when ■ it refused to offer him the Tupelo CSC manager position. Boehms asserted that his experience as district manager made him the superior candidate for the position, and that his nonselection was due to age. As evidence of age discrimination, he *457 presented, among other things: (1) Parrish’s interview notes reminding him (Parrish) not to talk about age; (2) testimony that each district manager under Parrish’s authority that was younger than 45 was offered a CSC manager position; ' and (3) testimony that each district manager under Parrish’s authority that was older than 45 was not offered a CSC manager position, but instead was offered a CSC operations manager position. In response, TVA contended that Boehms’ nonselection was due to his negative “approach to organizational change” and his lack of an “aggressive and proactive leadership style.” TVA argued that its business judgment in this regard should not be disturbed.

The parties agreed to a bench trial before a magistrate judge. On May 15, 1996, the court held that Boehms was subjected to age discrimination when he was not selected for the CSC manager position, and that he sufficiently mitigated his damages by participating in the ETP program (i e., he was not required to accept the Tupelo, or any other, operations manager positions that became available). On October 1, 1996, after receiving further briefing on the issue of damages, the court decided that the circumstances surrounding Boehms’ retirement did not amount to a constructive discharge, and therefore, his back pay award should not extend beyond his November 1992 retirement. 5 Noting Boehms’ limited recovery, however, the court awarded him “a reasonable attorney’s fee.” Contesting the limitation on damages, Boehms filed a motion to alter and amend the judgment, which the court rejected on December 20,1996. As explained above, the parties now challenge various aspects of the lower court’s resolution of this case.

DISCUSSION

I. SUFFICIENCY OF THE EVIDENCE

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Boehms v. Crowell, 139 F.3d 452, 1998 WL 175306 (5th Cir. 1998).

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