Charles Pearson v. Rohn Industries, Inc.

CourtCourt of Appeals of Minnesota
DecidedDecember 21, 2015
DocketA15-477
StatusUnpublished

This text of Charles Pearson v. Rohn Industries, Inc. (Charles Pearson v. Rohn Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles Pearson v. Rohn Industries, Inc., (Mich. Ct. App. 2015).

Opinion

This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2014).

STATE OF MINNESOTA IN COURT OF APPEALS A15-0477

Charles Pearson, Appellant,

vs.

Rohn Industries, Inc., et al., Respondents.

Filed December 21, 2015 Affirmed Cleary, Chief Judge

Stearns County District Court File No. 73-CV-12-7130

Nicholas G. B. May, Jenny M. Helling, Fabian May & Anderson, PLLP, Minneapolis, Minnesota (for appellant)

Susan D. Thurmer, Robyn K. Johnson, Cousineau McGuire Chartered, Minneapolis, Minnesota (for respondents)

Considered and decided by Cleary, Chief Judge; Connolly, Judge; and Johnson,

Judge.

UNPUBLISHED OPINION

CLEARY, Chief Judge

Appellant Charles Pearson seeks review of the district court’s denial of his motion

for post-trial relief. Appellant asserts that the district court erred by (1) applying incorrect legal standards to his claims of age discrimination and reprisal under the Minnesota Human

Rights Act (MHRA); (2) denying his constitutional right to a jury trial; (3) denying his

motion to compel discovery of recorded statements; and (4) considering evidence that was

not properly admitted at trial. Appellant further argues that the cumulative effect of these

errors requires a new trial. We affirm.

FACTS

Pearson’s claims of age discrimination and reprisal are associated with his period of

employment at respondent Rohn Industries, Inc., a business that provides document and IT

destruction and recycling services. Pearson was hired in March 2009 as a salesperson for

Shred Right, Rohn’s shredding-and-destruction-services division. He had previously

worked in sales for over ten years at Shred-It, one of Rohn’s competitors in the shredding-

services industry.

The parties dispute some key facts surrounding Pearson’s hiring at Rohn’s Shred

Right division. The district court found that after he left his job at Shred-It, Pearson

contacted respondent James R. Beran, a sales manager for Rohn. The district court found

that Pearson told Beran that “he was bored with his retirement and he wanted to sell

shredding services again.” Pearson met with Beran and respondent Ronald V. Mason Jr.,

the sole owner of Rohn, on multiple occasions to discuss the possibility of being hired at

Rohn. The district court found that, during these discussions, Pearson stated that he would

generate $1 million in annual sales for Shred Right. As a result of Pearson’s representation,

Mason offered Pearson a base salary guarantee of $96,000, which was substantially higher

than salaries of other non-management-level sales staff at Shred Right. In a pre-trial

2 motion, Pearson denied saying that he would generate $1 million in sales if hired at Shred

Right. Pearson also denies telling Beran and Mason that he had retired from Shred-It, when

in fact he was fired from his job there. The district court credited the testimony of

respondents Mason and Beran, who testified that Pearson said only that he had retired.

In 2009, Pearson fell substantially short of generating $1 million in sales. In the

spring of 2010, Mason told Beran that Rohn would have to fire Pearson unless Pearson

substantially increased his sales. Beran met with Pearson in April 2010 for Pearson’s first

annual review and stated that Pearson needed to improve his job performance. In

September 2010, respondent Donald Drapeau became President of Shred Right. Mason

tasked Drapeau with reforming the division’s compensation structure in order to increase

Rohn’s profitability. To that end, Drapeau developed a Points System Plan that would

reduce employees’ base-salary guarantees. Management implemented the Points System

Plan on January 1, 2011, resulting in a 30% reduction in Pearson’s base salary. But by

September 2011, Drapeau and Mason determined they were not satisfied with the plan.

Beran and Drapeau began working on a new plan to be implemented in 2012. As of

December 2011, Mason, Beran, and Drapeau had decided to decrease Pearson’s salary to

$50,000, effective March 1, 2012, in order to better align Pearson’s salary with the sales

revenue he was generating. The district court credited testimony that the standard base-

salary guarantee in the shredding industry is 10% of sales revenue generated.

On January 5, 2012, Drapeau asked Pearson out to lunch with the intent to ask

Pearson about his retirement plans, as Drapeau knew that Pearson’s 65th birthday was

approaching. At this time, Pearson did not know that respondents had decided to reduce

3 his salary to $50,000. Drapeau testified that he had known Pearson since 1999, from

working with him before they were both at Rohn, and that by asking Pearson about his

retirement plans, he was hoping to get information he could use to potentially “soften[ ]

the blow” of the pay cut. Drapeau stated that he thought that management might be able

to avoid cutting Pearson’s salary if Pearson were intending to retire soon, or if he wanted

to opt for a part-time position.

During their discussion at lunch, Pearson stated that he did not intend to quit

working. Drapeau told Pearson that Mason believed Pearson’s salary was too high. The

district court found that Drapeau then asked Pearson whether Pearson could collect Social

Security payments, and Pearson said he was not interested in taking the payments yet

because he thought he would have to pay a penalty. The district court found that Drapeau

then asked Pearson, “Well, you have enough money, don’t you?”

On January 10, 2012, Beran notified Pearson that his base-salary guarantee would

be reduced to $50,000, effective March 1, 2012. The district court found that Pearson was

upset about the pay cut, that he exhibited hostility toward respondents in the workplace,

that he told other employees that he would not accept the salary reduction, and that he was

stunned and humiliated by the cut. The district court credited the testimony of respondents,

several employees at Shred Right, and Pearson’s wife on this point. During the week prior

to February 6, 2012, Pearson went to Beran’s office and confronted him about who would

get commissions on a new account Pearson had been working on acquiring. In what

became a heated exchange, Pearson brought up his salary reduction and Beran raised the

issue of Pearson’s claim that he would make $1 million in sales. After this interaction with

4 Pearson, Beran immediately went to Mason and the two agreed that Pearson should be

fired. They decided to delay any action on it until Drapeau returned from vacation on

February 6.

Pearson vigorously contests the facts the district court found regarding events of

February 6, 2012. The parties agree that Pearson sent Mason an e-mail on the morning of

February 6. The timestamp on the e-mail shows that Pearson sent it at 8:41 a.m. In the

message, Pearson describes the conversation he had with Drapeau at lunch and states that

he believes his salary has been unlawfully reduced on the basis of his age. Mason testified

that he forwarded the e-mail to his attorney at 9:33 a.m. Mason and Beran met with

Drapeau when he arrived at the office that morning and told him about the confrontation

between Beran and Pearson that had occurred the week before. They told Drapeau that

they had decided to fire Pearson. The district court credited respondents’ testimony that

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