Cox v. Master Lock Co.

815 F. Supp. 844, 1993 U.S. Dist. LEXIS 3577, 63 Empl. Prac. Dec. (CCH) 42,879, 62 Fair Empl. Prac. Cas. (BNA) 390, 1993 WL 86703
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 23, 1993
DocketCiv. A. 92-0287
StatusPublished
Cited by14 cases

This text of 815 F. Supp. 844 (Cox v. Master Lock Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cox v. Master Lock Co., 815 F. Supp. 844, 1993 U.S. Dist. LEXIS 3577, 63 Empl. Prac. Dec. (CCH) 42,879, 62 Fair Empl. Prac. Cas. (BNA) 390, 1993 WL 86703 (E.D. Pa. 1993).

Opinion

MEMORANDUM

WALDMAN, District Judge.

Plaintiff asserts a claim under the Age Discrimination in Employment Act (“ADEA”), alleging that defendant terminated his employment because of his age. Defendant has moved for summary judgment on the ground that plaintiff was not an “employee” of defendant and thus is not entitled to the relief sought as a matter of law.

I. LEGAL STANDARD

A motion for summary judgment requires the court to consider whether the pleadings, depositions, answers to interrogatories, admissions on file, and affidavits, show there is no genuine issue as to any material fact, and that the moving party is entitled to judgment as a matter of law. See Fed.R.Civ.P. 56(c); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 2509, 91 L.Ed.2d 202 (1986). Only facts that may affect the outcome of a case under applicable law are “material.” “[T]he mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Id. at 247-48, 106 S.Ct. at 2510.

Ml reasonable inferences from the record must be drawn in favor of the non-movant. Id. at 255, 106 S.Ct. at 2513. Mthough the movant has the initial burden of demonstrating an absence of genuine issues of material fact, the non-movant must then establish the existence of each element on which it bears the burden of proof. See J.F. Feeser, Inc. v. Serv-A-Portion, 909 F.2d 1524, 1531 (3d Cir.1990), ce rt. denied, — U.S. -, 111 S.Ct. *845 1313, 113 L.Ed.2d 246 (1991) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986)).

II. FACTS

The pertinent facts are uncontroverted or set forth in a light most favorable to plaintiff, and are as follow.

From 1972 until 1986, Mr. Cox worked as an “Independent Manufacturer’s Representative” (“IMR”) for Master Lock pursuant to a series of written agreements executed by Master Lock and Jimcox, Inc., an entity incorporated by plaintiff. Pursuant to the agreements, Mr. Cox was authorized to sell defendant’s products in a territory encompassing northeastern Pennsylvania and portions of Philadelphia. The agreement in effect in August 1986 had been executed on March 1, 1985. Mr. Cox maintained and worked out of an office in Glenside and then Ambler, Pa. The defendant corporation manufactures locks and is headquartered in Milwaukee.

Either party had a right to terminate the IMR agreement by written notice to the other at any time and for any reason. The agreement provided that the sole basis of compensation was commissions on sales. Plaintiff assumed responsibility for payment of travel, insurance, office, equipment, supply and any other expenses which were incurred by him in the performance of the contract. Jimcox, Inc. had full responsibility for the withholding and payment of social security and income taxes for plaintiff. Jimcox was given discretion to conduct its business in “such manner as it sees fit.”

Jimcox was not allowed to sell products manufactured by defendant’s competitors or to sell at prices other than those set by Master Lock. Master Lock had the right to accept or reject any orders placed with plaintiff. Plaintiff was required to submit sales and marketing reports to defendant. 1

Mr. Cox was not required to report physically to defendant at any time but was required to maintain telephone contact. He set his own work hours and vacation times, and received no pension or insurance benefits from defendant. Mr. Cox received no sales training or performance reviews from Master Lock. On two occasions between May and August of 1986, he was visited by defendant’s regional sales manager who accompanied and observed plaintiff while he made several sales calls. When asked at his deposition if it was true that his sales efforts were not supervised by Master Lock, plaintiff testified “That’s correct.”

The agreement specified that Jimcox had “no authority to act on behalf of the Company as an agent or otherwise, and neither it nor its employees shall represent itself or themselves as agents or employees of the Company.”

On August 26, 1986, Master Lock notified plaintiff in writing that it was terminating the IMR agreement as of September 1, 1986. 2 Mr. Cox was 62 years-old at the time.

III. DISCUSSION

The ADEA protects only persons who are “employees.” E.E.O.C. v. Zippo Mfg. Co., 713 F.2d 32, 33 (3d Cir.1983). Whether a plaintiff is an “employee” for purposes of ADEA is a question of law to be determined by the court in the absence of disputed material underlying facts. See Golden v. A.P. Orleans, Inc., 681 F.Supp. 1100, 1102 n. 2 (E.D.Pa.1988).

The statute does not meaningfully define the term “employee.” It simply provides that an “employee” is “an individual employed by any employer.” See 29 U.S.C. § 630(f).

The Third Circuit has adopted a so-called “hybrid test,” combining the traditional test for common-law agency with modern economic realities, for determining whether a *846 person is an employee or independent contractor for purposes of ADEA. Zippo, 713 F.2d at 38. More recently, however, the U.S. Supreme Court in Nationwide Mut. Ins. Co. v. Darden, — U.S. -, 112 S.Ct. 1344, 117 L.Ed.2d 581 (1992), an ERISA case, articulated a general rule of utilizing the common-law agency standard to define the meaning of “employee” in statutes in which Congress has not otherwise helpfully defined the term. Id. at-, 112 S.Ct. at 1348-49 (abandoning standard of United States v. Silk, 331 U.S. 704, 713, 67 S.Ct. 1463, 1468, 91 L.Ed. 1757 (1947) of construing “employee” “in the light of the mischief to be corrected and the end to be attained” from which hybrid test derives). See also Frankel v. Bally, Inc., 987 F.2d 86 (2d Cir.1993) (Darden mandates application of common-law agency test in ADEA cases).

The court believes that Darden requires the application of the common-law agency test rather than a hybrid test in determining whether someone is an employee for purposes of ADEA. Under either test, however, the result in this case would be the same.

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815 F. Supp. 844, 1993 U.S. Dist. LEXIS 3577, 63 Empl. Prac. Dec. (CCH) 42,879, 62 Fair Empl. Prac. Cas. (BNA) 390, 1993 WL 86703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cox-v-master-lock-co-paed-1993.