Charles E. Bergman v. Bailey Controls Company

914 F.2d 1494, 1990 U.S. App. LEXIS 24350, 1990 WL 140585
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 27, 1990
Docket89-3622
StatusUnpublished
Cited by1 cases

This text of 914 F.2d 1494 (Charles E. Bergman v. Bailey Controls Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles E. Bergman v. Bailey Controls Company, 914 F.2d 1494, 1990 U.S. App. LEXIS 24350, 1990 WL 140585 (6th Cir. 1990).

Opinion

914 F.2d 1494

Unpublished Disposition
NOTICE: Sixth Circuit Rule 24(c) states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Sixth Circuit.
Charles E. BERGMAN, Plaintiff-Appellee,
v.
BAILEY CONTROLS COMPANY, Defendant-Appellant.

No. 89-3622.

United States Court of Appeals, Sixth Circuit.

Sept. 27, 1990.

Before NATHANIEL R. JONES and ALAN E. NORRIS, Circuit Judges, and JARVIS, District Judge.*

PER CURIAM.

Defendant-appellant Bailey Controls Company ("Bailey") appeals the district court's denial of its motion for a judgment notwithstanding the verdict ("JNOV") in this age discrimination suit brought by Charles E. Bergman pursuant to the Age Discrimination in Employment Act of 1967 (the "ADEA"), 29 U.S.C. Sec. 623 et seq. We affirm.

I.

Bailey is a subsidiary of the Babcock & Wilcox Company which manufactures and markets process controls systems. Its principal offices are located in Wickliffe, Ohio. Prior to his termination, Bergman had been employed by Bailey for 36 years, primarily in the company's Marketing Department. At the time of his termination, Bergman was sixty-two years old and worked as a Market Manager in the Process Marketing Group. That entity of the company marketed Bailey's process control systems.

In his latter capacity, Bergman was responsible for four markets, one of which was the water/waste water market. Bergman devoted an estimated forty percent of his time to this market. J.App. at 494. As a Market Manager, Bergman developed marketing plans and created packages of Bailey products tailored to customers' needs. He also assisted field representatives in concluding sales of Bailey products.

In September 1986, financial difficulties prompted Bailey to implement a reduction in force ("RIF"). In order to lay off seventy-three salaried workers from the company's Wickliffe facility, Bailey's President advised Larry Enterline, Marketing Department Vice President, that he would have to cut the department's salaried workforce by ten percent. The purported criteria Bailey used to make salaried layoff determinations were as follows. The company first sought to ascertain the positions, markets and sales territories which were most dispensable. It then evaluated the performances of the employees holding the positions targeted for elimination to determine whether they should be placed in another position. Where the latter step led to a "tie" between employees, seniority was used as a tiebreaker. In evaluating its employees' performances, Bailey's assessments were influenced by the results of a regularly conducted "forced peer ranking" in which Bailey supervisors ranked employees in the order of their contribution to their respective departments. Id. at 632.

With respect to its first criterion for making salaried layoff decisions, Larry Rice, Manager of the Marking Department's Process Group, determined that the water/waste water marketing position to which Bergman devoted substantial time should be eliminated because it was unprofitable. Larry Enterline agreed with Rice's assessment and recommended elimination to Bailey's President. This recommendation was ultimately adopted. However, despite the alleged unprofitability of the water/waste water market, Bailey continued to bid in this area both during and after the RIF. Id. at 106.

In assessing whether Bergman's performance warranted placing him in another position, Bailey claims it evaluated Bergman's recent employment history. In 1979, Bergman received a rating of seventy-two out of a possible 100, which was satisfactory. The appraisal noted that Bergman possessed superior knowledge of products and their applications, but it gave Bergman a low score of forty-five in the area of communications. Id. at 678. An appraisal covering the period from November 1980 to October 1981 gave Bergman largely negative evaluations in areas pertaining to interpersonal skills and an overall rating of 75/63. Id. at 653-54. In Bergman's next regularly scheduled appraisal, covering the period from July 1, 1983 to December 31, 1984, he received a rating of 82 or "excellent." Id. at 655. Enterline, then Bergman's immediate supervisor, was primarily responsible for this appraisal, which was completed in February 1985. Bergman was subsequently promoted to the position of Senior Industry Marketing Manager.

During the appraisal period covering December 1984 to December 1985, Larry Rice was Bergman's immediate supervisor. Rice gave Bergman a sixty rating--"improvement needed"--for this period. This rating contrasted markedly to Rice's assessment of Bergman in a thirty-five year anniversary appraisal which covered the first three and a half months of 1985. In that appraisal, Rice termed Bergman's performance "excellent." Id. at 362-63. Based on the foregoing appraisals, Bailey concluded that Bergman was not an appropriate candidate for placement in an another company position. On September 19, 1986, Bailey notified Bergman of his permanent layoff.

Bergman maintains Rice's decision to recommend him for termination was influenced by ageism. In the summer of 1985 when Bergman had assumed the position of Senior Industry Marketing Manager, Rice failed to inform the Bailey employees whom Bergman was to supervise in his new position that they were to begin reporting to Bergman. Id. at 331. Bailey's policy was to announce promotions to all Bailey workers who would be directly affected by them. Id. at 305. Rice's refusal to follow this procedure made Bergman's relationship with his subordinates awkward and his supervisory duties more difficult.

On August 26, 1986, approximately three weeks before Bergman's termination, Rice assigned Bergman to work solely in the water/waste water market and redistributed his work in other areas to younger employees. Id. at 671. Martin Haas, age thirty-three, was hired by Bailey in late August, two weeks prior to the RIF. At that time, Haas took over Bergman's duties in the metals and ceramics market; he continued these responsibilities after Bergman's termination. John Glowe, age forty-one, was assigned Bergman's work in the federal market. Id. at 671. Subsequent to the RIF, Ted Gorrie assumed Bergman's responsibilities for work on an international fuel cells (IFC) project, and Doug Deery, age twenty-five, took over Bergman's responsibilities for the federal market.

In addition to the relinquishment of his responsibilities and their reassignment to younger workers, Bergman notes that Rice had referred him as an "old guy" on three occasions and had announced after the RIF that the Process Marketing Group would be restructured with new, younger workers.

Although Bergman was deemed unsuitable to be offered another position within Bailey under the company's formal procedure for making salaried layoff decisions, on October 3, 1986, during Bergman's two-week notice period, Bailey offered Bergman a position as a Senior Instructor. The position involved training Bailey customers in the use of Bailey computer consoles. The salary for this position was the same as Bergman's salary as a Marketing Manager.

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Bluebook (online)
914 F.2d 1494, 1990 U.S. App. LEXIS 24350, 1990 WL 140585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-e-bergman-v-bailey-controls-company-ca6-1990.