Cook v. American General Life & Accident Insurance

952 F. Supp. 1505, 1996 U.S. Dist. LEXIS 20119
CourtDistrict Court, M.D. Alabama
DecidedSeptember 10, 1996
DocketCivil Action 95-D-1021-S
StatusPublished
Cited by3 cases

This text of 952 F. Supp. 1505 (Cook v. American General Life & Accident Insurance) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cook v. American General Life & Accident Insurance, 952 F. Supp. 1505, 1996 U.S. Dist. LEXIS 20119 (M.D. Ala. 1996).

Opinion

MEMORANDUM OPINION

DE MENT, District Judge.

Before the Court is defendant American General Life & Accident Insurance Company’s motion filed December 11, 1995, for summary judgment. Plaintiff James E. Cook filed a response in opposition on February 9,1996. The defendant then filed a reply to the plaintiffs response on March 11,1996. After careful consideration of the arguments of counsel, the relevant case law and the record as a whole, the Court finds that the defendant’s motion is due to be granted.

JURISDICTION AND VENUE

Based upon 28 U.S.C. §§ 1331, 1367 and the Age Discrimination in Employment Act, 29 U.S.C. §§ 621 et seq., the court properly exercises subject matter jurisdiction over this action. The parties do not contest personal jurisdiction or venue.

*1507 FINDINGS OF FACT

This is an action under the Age Discrimination in Employment Act (“ADEA”) alleging an unlawful demotion and a constructive discharge. The plaintiff also asserts a state law claim for alleged breach of contract. Plaintiff James E. Cook (“Cook”) seeks damages for loss of present and future wages, loss of earning capacity and impairment as well as for stress, anxiety and emotional distress. He also seeks reinstatement and attorney’s fees.

Cook was first employed by Interstate and Gulf Life Insurance Company, which has now merged with defendant American General Life and Accident Insurance Company (“American General”), in 1966. American General markets its products through home service sale agents employed in district offices such as the one in Dothan, Alabama, where Cook was employed. Each district office has several staffs of sales agents who work under a sales manager. The sales managers in turn report to a district manager who is in charge of the overall management of the district office. Yates Aff. at 1-2.

Shortly after Cook was hired, he was promoted to a sales manager’s position, and he remained a sales manager for approximately 15 years. Cook eventually volunteered for a demotion to sales agent, however, noting that the sales manager position involved “... too much running. And I wanted a debit. I went back. Easier work,” and further that “... I was happy as an agent. There’s a lot of headaches in being a staff manager____ And there wasn’t a whole lot of difference in the money in an agency that I could make in the staff job.” However, Cook later returned to the sales manager position, testifying that “... I let Mr. George Hodges, which (sic) was manager at the time, convince me that I needed to go back in the sales manager’s job.” Cook Dep. at 9-12.

In September 1993, sales manager Cook was asked to attend a meeting with his district manager, Michael Peters, and Peters’ boss, regional director Joe Yates.- At the time of attending said meeting, Cook knew that an investigation was underway concerning the affairs of Paul Tye (“Tye matter”), an agent on Cook’s staff. The Tye matter resulted in expensive and time consuming claims and litigation against the company and caused Yates to lose confidence in Cook’s managerial ability. Yates Aff. at 2. Cook was informed at the meeting that Mr. Peters, who is approximately 20 years younger than Cook, was being demoted from district manager to sales manager, and that Cook was being asked to step down as sales manager “to make room” for Mr. Peters. Cook’s Dep. at 22, 28, 49. Furthermore, company records show that such ah explanation was given to Cook at the time and that he agreed to the demotion, saying he could “handle it.” Yates’ Aff.; Cook’s Dep. at 29; see also, Personnel Change Form. At the time of the demotion, Cook was 61 years old. E.E.O.C. Charge.

Cook maintains that he was given no reason for his demotion other than “to make room” for Mr. Peters. Cook, however, acknowledges that he was told at some point that he was selected for demotion because, of the three sales managers, Cook “had the lowest amount of growth” in 1993. Cook’s Aff. at 1; Cook’s Dep. at 31. The other two sales managers at that time, Tim Aeree and Harry Joe Phillips, were younger than Cook, but both had better productivity than Cook when measured by objective standards of performance. Yates’ Aff. at 3.

For example, both Aeree and Phillips had better year-to-date net progress, which is one of the objective standards utilized for measuring performance of both agents and managers. 1 At the time of the demotions, Aeree’s year-to-date net progress was $17,-905.00; Phillips’ was $7,837.00, and Cook’s was only $4,502.00. Yates’ Aff. at 3. Moreover, both Aeree and Phillips -had better average year-to-date growth. 2 At the time the *1508 demotions were made, Acres’ average year-to-date growth was $377.00, Phillips’ was $117.00, and Cook’s was $10.00. Yates’ Aff. at 3^. Finally, both Aeree and Phillips had better minimum standards average progress, another objective standard for measuring productivity. 3 At the time of these demotions, Acree’s minimum standards average progress was $425.00, Phillips was $166.00, and Cook’s was $161.00. Yates’ Aff. at 4. Cook acknowledged that these objective criteria are fair measures of performance, and he agreed that his performance in 1993 as compared to Aeree and to Phillips “wasn’t as good” as theirs. Cook’s Dep. at 34-35.

Cook filed his charge of age discrimination with the Equal Employment Opportunity Commission (“EEOC”) on March 22, 1994, challenging as unlawful his demotion of September 29, 1993. Although his EEOC charge only complains of his demotion, Cook also alleges in his judicial complaint a count for constructive discharge. In support of his constructive discharge claim, he alleges that upon demotion, he was given a poor quality of accounts, he received no income adjustment as was provided for Peters, and that two sales manager positions were filled by younger applicants. Cook Dep. at 28, 54-55. Cook testified, however, that the accounts he was given were the only ones available at the time of his demotion. Cook Dep. at 28. Cook also testified that he had previously given written notice to the company that he was not interested in promotion to a management position and that he never thereafter informed any responsible person that he was interested in a promotion, explaining that “it’s just not the customary thing to do.” Cook Dep. at 54-55, 64. Cook continued to work as a sales agent until March, 1995, when he retired from his employment. Yates Aff. at 5; see also termination report.

SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate only if it is shown “that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The Supreme Court has stated:

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Bluebook (online)
952 F. Supp. 1505, 1996 U.S. Dist. LEXIS 20119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cook-v-american-general-life-accident-insurance-almd-1996.