Brownlie v. Kanzaki Specialty Papers, Inc.

691 N.E.2d 953, 44 Mass. App. Ct. 408, 1998 Mass. App. LEXIS 47, 76 Fair Empl. Prac. Cas. (BNA) 1141
CourtMassachusetts Appeals Court
DecidedMarch 12, 1998
DocketNo. 96-P-0592
StatusPublished
Cited by14 cases

This text of 691 N.E.2d 953 (Brownlie v. Kanzaki Specialty Papers, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brownlie v. Kanzaki Specialty Papers, Inc., 691 N.E.2d 953, 44 Mass. App. Ct. 408, 1998 Mass. App. LEXIS 47, 76 Fair Empl. Prac. Cas. (BNA) 1141 (Mass. Ct. App. 1998).

Opinion

Gillerman, J.

J. Gibb Brownlie was discharged from his position as vice-president of public affairs for Kanzaki Specialty Papers, Inc. (Kanzaki), in February, 1992. He had been demoted in 1990, when he turned sixty, and demoted again in 1991. After he was discharged, Brownlie filed a complaint with the Massachusetts Commission Against Discrimination (MCAD) in April, 1992, alleging age discrimination. General Laws c. 151B, § 4(1B), makes it an unlawful practice for an employer to refuse to hire or employ or to bar or to discharge from employment any individual because of his or her age. (Under G. L. c. 151B, § 1(8), a person over forty years may claim age discrimination.) Brownlie withdrew his complaint from the MCAD and filed his action in the Superior Court in December, 1992.

In June, 1994, a jury returned a verdict on special questions in favor of Brownlie. He was awarded compensatory damages in the amount of $262,252 and emotional distress damages in the amount of $50,000. The trial judge subsequently ordered Kanzaki to pay double damages in the amount of $624,504, attorney’s fees in the amount of $157,492.50, and costs in the amount of $10,404.35. He concluded that the president of Kanzaki had “reason to know” that the termination violated G. L. c. 151B, § 4. The trial judge also denied Kanzaki’s posttrial motions for judgment notwithstanding the verdict or a new trial. Kanzaki filed a timely appeal from the final judgment and from the denial of its posttrial motions.

We proceed with the factual background and a discussion of the issues open on appeal.

1. Factual background. We state the facts under the standard applicable to a motion for judgment notwithstanding the verdict.1 Kanzaki is a specialty paper company and a subsidiary of Kanzaki Japan, a Japanese corporation. In 1991, the year im[410]*410mediately prior to Brownlie’s discharge, annual sales were $89,641,000. Kazuhico Watanabe was the president of Kanzaki during the relevant time period, and he reported daily to the president of Kanzaki Japan. Kanzaki Japan had a written policy that required all employees, including senior managers, to retire at age sixty. Although a mandatory retirement policy was in effect at Kanzaki Japan, Watanabe knew that age discrimination was illegal in Massachusetts and in the United States.

In December, 1986, Kanzaki purchased a plant in Massachusetts from Ludlow Corporation, another paper company. Brownlie had been employed by Ludlow in various positions from 1978 to 1986. After Kanzaki purchased the Ludlow plant, most of the former Ludlow employees, including Brownlie, became employees of Kanzaki.

Brownlie was fifty-six years old at the time he was hired by Kanzaki. From December, 1986, until June, 1989, he was marketing services and public relations manager. His duties included responsibility for advertising, sales promotion, public relations, and product management.

On June 1, 1989, Watanabe promoted Brownlie, then age fifty-nine, to the position of vice-president of sales and marketing and Brownlie received a salary increase from $46,000 to $71,000. He was responsible for advertising, sales promotions, public relations, and product management, and reported directly to Watanabe. He also managed the inside sales force, which was comprised of approximately eight people, and the field sales force, which was made up of approximately twelve sales people and three regional managers.

In August, 1990, when Brownlie was sixty years old, Watanabe relieved Brownlie of his sales responsibilities and transferred those tasks to Hamlet Collina, a new employee who was forty-nine years old. Collina became vice-president of sales, and Brownlie was demoted to vice-president of marketing. Although Brownlie was demoted, his salary and benefits were not reduced. When Watanabe demoted Brownlie in 1990, he knew that Brownlie was sixty years old.

On the day that Brownlie learned of his impending demotion, [411]*411Watanabe said to him, “[Yjou’ve been doing a good job, but I want a younger man .... [Wjhen is Steve Jablonski2 planning to retire?” Watanabe also informed Brownlie during the same conversation that he was hiring Collina, whom he described as “a younger man,” as the new vice-president of sales. Brownlie asked Watanabe if he was being demoted because he was not doing a good job. Watanabe answered, “No, it’s not that, it’s a reason beyond your control.”

The next day, Brownlie reported the substance of his conversation with Watanabe to Kevin Moriarty, who was the director of human resources. Prior to Brownlie’s 1990 demotion, Moriarty had explained to Watanabe the discrimination laws of the United States.

From August, 1990, when he was first demoted, to the middle of March, 1991, Brownlie did not receive any criticism from Watanabe regarding his performance as vice-president of marketing. Nevertheless, in April of 1991, he was demoted again. Watanabe promoted Collina to vice-president of sales and marketing, and Brownlie, now relieved of both sales and marketing, became vice-president of public affairs, a newly-created position. As was the case with his first demotion, Brownlie’s salary and benefits were not reduced at the time of the second demotion. Although Kanzaki claimed that Brownlie was being demoted for poor performance, Brownlie received a four percent merit raise two months after being demoted to vice-president of public affairs.

On February 19, 1992, ten months after the second demotion, Watanabe terminated Brownlie’s position with the company without consulting any other senior managers. Brownlie was then sixty-one years old. Two other employees were discharged on the same day that Brownlie was terminated, including Jablonski, who was sixty-two; Jablonski was the same employee about whom Watanabe inquired in August, 1990. After Brown-lie was discharged, his advertising, sales promotions, and public relations responsibilities were given to Collina.

In response to a special verdict form, the jury concluded that Brownlie had presented a prima facie case of employment discrimination when he was discharged in February, 1992 (special question 1); that Kanzaki did not have a legitimate business purpose in discharging Brownlie (special question 2); [412]*412that the reason advanced by Kanzaki for Brownlie’s discharge was a pretext for age discrimination (special question 3); that age discrimination was a “motivating factor” in Kanzaki’s decision to discharge Brownlie (special question 3A); and that Kanzaki failed to prove that “[t]he legitimate business purpose given by it as the reason for the discharge, standing alone, would have convinced [it] to discharge Brownlie in February of 1992” (special question 3B). The special verdict form, including the responses of the jury, is reproduced in the Appendix to this opinion.

2. The denial of the motion for judgment n.o.v.

a. Statute of limitations. Kanzaki argues that Brownlie failed to file his claim with the MCAD within the six-month period of limitations provided by G. L. c. 151B, § 5. This is so, the argument runs, because the measuring period should start from the demotions in 1990 and 1991, and not the termination of employment in 1992,3 and therefore the judge should have allowed Kanzaki’s motion for judgment notwithstanding the verdict.

Kanzaki’s argument proceeds from the proposition that Brownlie “did not seriously contend below that his dismissal was

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691 N.E.2d 953, 44 Mass. App. Ct. 408, 1998 Mass. App. LEXIS 47, 76 Fair Empl. Prac. Cas. (BNA) 1141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brownlie-v-kanzaki-specialty-papers-inc-massappct-1998.