Clark v. Resistoflex Co.

665 F. Supp. 1216, 44 Fair Empl. Prac. Cas. (BNA) 817, 9 Employee Benefits Cas. (BNA) 1318, 1987 U.S. Dist. LEXIS 6962, 45 Empl. Prac. Dec. (CCH) 37,832
CourtDistrict Court, M.D. Louisiana
DecidedJuly 31, 1987
DocketCiv. A. 86-135-B
StatusPublished
Cited by3 cases

This text of 665 F. Supp. 1216 (Clark v. Resistoflex Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Resistoflex Co., 665 F. Supp. 1216, 44 Fair Empl. Prac. Cas. (BNA) 817, 9 Employee Benefits Cas. (BNA) 1318, 1987 U.S. Dist. LEXIS 6962, 45 Empl. Prac. Dec. (CCH) 37,832 (M.D. La. 1987).

Opinion

POLOZOLA, District Judge.

This suit was filed by the plaintiff, William L. Clark, under the Age Discrimination in Employment Act, 29 U.S.C. § 621 (“ADEA”). Named as defendants in this suit are Resistoflex Company, a division of *1218 Unidynamics Corporation and its successor Crane Resistoflex Company, a Division of Crane Co. (“Resistoflex”) 1 This matter is now before the court on defendant’s motions for summary judgment. Resistoflex contends that plaintiff’s suit under the ADEA is time barred. Resistoflex also contends that plaintiff’s claim under the Employee Retirement Income Security Act, 29 U.S.C. § 1140 (“ERISA”) is not supported by the law and should be dismissed.

I. The Age Discrimination Claim

The plaintiff was born on August 18, 1936 and worked for Resistoflex for twenty-four years before he was terminated. At the time of his termination, plaintiff was 48 years old.

Resistoflex manufactures and distributes materials used to prevent corrosion in such items as liners in pipes, valves and fittings of various sorts which are used to carry and transport corrosive materials. Resistoflex employs sales persons to assist and support the distributors of their product. Plaintiff was terminated in March of 1985. At that time, the defendant employed three persons it classified as Regional Sales Managers: the plaintiff, who was then 48 years old; Fred Mashin, who was 50 or 51 years old; and, C. Jay Wangerin, who was 63 years old. Plaintiff was the Southern Regional Sales Manager of a territory that included Louisiana, Arkansas, Mississippi, and parts of Texas, Alabama, Georgia and Florida. The responsibility of the Regional Sales Manager was to supervise the local salesmen. The plaintiff did not have any direct sales duties. In addition to the base salary he received, he also received a commission on the sales of his district sales managers.

Two questions must be answered by this court in determining whether to grant the defendant’s motion for summary judgment on the ADEA claim. First, under the criteria set forth in Chardon v. Fernandez, 454 U.S. 6, 102 S.Ct. 28, 70 L.Ed.2d 6 (1981) and Delaware State College v. Ricks, 449 U.S. 250, 101 S.Ct. 498, 66 L.Ed.2d 431 (1980), when did the alleged discriminatory act or practice occur in order to start the 180-day limitation period for filing a claim with the Equal Employment Opportunity Commission (“EEOC”)? Second, if the 180-day period expired before the plaintiff filed a claim with the EEOC, was the period tolled or interrupted for any reason.

A. When did the alleged act of discrimination occur?

The plaintiff received a telephone call on March 11, 1985 from Bruce Freed, the General Sales Manager of Resistoflex, who was plaintiff’s immediate supervisor. Freed informed Clark that he was to be terminated and plaintiff’s last day on the job would be Friday, March 15, 1985, 2 Plaintiff does not remember all of the details of the conversation but does remember that Freed said: “I have some bad news for you ... I am going to terminate you.” 3 Freed’s affidavit has a slightly different wording. Freed maintains that he told the plaintiff that “[h]e was terminated[.]” 4

During the telephone conversation of March 11, 1985, plaintiff was also informed of some of the reasons why the company was terminating him. 5 Plaintiff has testified that he was in a state of shock and after approximately five minutes, he did not wish to speak with Freed any longer. At plaintiff’s request, the conversation *1219 with Freed terminated and Clark was transferred to personnel in order to learn of his termination benefits. 6

The plaintiff’s memory of the reasons that Freed gave for his termination is sketchy at best. 7 However, Freed states that he informed Clark that: (1) he was a poor role model; (2) he had used business time for leisure activities; (3) Freed had received complaints about Clark’s conduct; and, (4) plaintiff resisted new procedures. Freed indicated that plaintiff was terminated for those reasons. 8 Plaintiff does not deny that Freed mentioned all of the above items. Plaintiff merely states that he was in a state of shock and does not clearly remember all of the conversation. However, Clark did state that he thought age was the real reason he was terminated. 9

On March 15, 1985, Clark received a letter dated March 12, 1985 from Tom Brath, personnel director, which outlined the benefits plaintiff would receive from the company. 10 Clark signed the letter that day and returned it to the company.

Under the terms of the agreement contained in the letter of March 12, 1985, the plaintiff was to be given severance pay of $20,060.36, which was to be paid in 11 semi-monthly installments of $1,823.66 each. Certain health benefits were to be continued until August 31, 1985, while other health .benefits would terminate on March 15. Plaintiff was fully vested in his pension plan, but the amount of his pension benefits were not disclosed in the letter.

The last paragraphs of the letter agreement contain the heart of the agreement as far as Resistoflex is concerned. Under the agreement plaintiff was prohibited from communicating any “proprietary information” in any form to any other party. If this obligation was violated, the company had the right to terminate the agreement. Another paragraph stated that all other benefits of employment were terminated and any unused vacation time would be included in plaintiff’s last paycheck.

It is clear that the plaintiff signed the letter agreement under Brath’s signature on March 15,1985, the plaintiffs last day of work.

It is now settled law that a cause of action accrues in the age discrimination context when the adverse employment decision is made and communicated to the employee. Chardon v. Fernandez, 454 U.S. 6, 102 S.Ct. 28, 70 L.Ed.2d 6 (1981); Delaware State College v. Ricks, 449 U.S. 250, 101 S.Ct. 498, 66 L.Ed.2d 431 (1980); Elliot v. Group Medical and Surgical Service, 714 F.2d 556, 563 (5th Cir.1983); McWilliams v. Escambia School Board, 658 F.2d 326

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665 F. Supp. 1216, 44 Fair Empl. Prac. Cas. (BNA) 817, 9 Employee Benefits Cas. (BNA) 1318, 1987 U.S. Dist. LEXIS 6962, 45 Empl. Prac. Dec. (CCH) 37,832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-resistoflex-co-lamd-1987.