Dodd v. Singer Co.

669 F. Supp. 1079, 64 Fair Empl. Prac. Cas. (BNA) 227, 1987 U.S. Dist. LEXIS 11061, 43 Empl. Prac. Dec. (CCH) 37,265
CourtDistrict Court, N.D. Georgia
DecidedJuly 20, 1987
DocketCiv. A. C85-4305A
StatusPublished
Cited by2 cases

This text of 669 F. Supp. 1079 (Dodd v. Singer Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dodd v. Singer Co., 669 F. Supp. 1079, 64 Fair Empl. Prac. Cas. (BNA) 227, 1987 U.S. Dist. LEXIS 11061, 43 Empl. Prac. Dec. (CCH) 37,265 (N.D. Ga. 1987).

Opinion

ORDER

SHOOB, District Judge.

Plaintiff James W. Dodd (“Dodd”) filed this action under the Age Discrimination of Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq. On December 17 and 18, 1986, the claim was tried before this Court and a jury. At the close of plaintiffs case-in-chief, defendant The Singer Company (“Singer”) moved for a directed verdict and the Court proceeded to hear arguments from both parties on the motion. 1 Following the argument, the Court ruled from the bench, granting defendant’s motion for a directed verdict. The follow *1080 ing are the Court’s summary of the facts presented and conclusions of law.

I. Facts Presented at Trial

In November, 1984, Singer terminated Dodd’s employment as a District Sales Manager (“DSM”). As of July, 1984, Singer had twenty-four DSMs throughout the United States who were supervised and directed by three Regional Managers (“RM”). Each RM supervised approximately eight DSMs. The DSMs sold sewing machines and related products directly to Singer dealers and, despite their title, did not supervise anyone. (Trial Transcript, “T.T.” at 12, 86.)

Dodd was terminated in November, 1984 when Singer conducted a reduction in force (“RIF”). The RIF involved the consolidation of several sales territories and the elimination of sales positions. It resulted in the discharge or early retirement of seven DSMs and the elimination of the three RM positions. Each of the RMs was permitted to “bump down” into the remaining DSM position so that after the RIF there were twenty DSMs and no RMs. The title of District Sales Manager was subsequently changed to Regional Sales Manager (“RSM”) to reflect the expanded sales territories for which the remaining 20 RSMs were responsible. (T.T. at 65-67, 81, 96.) In conjunction with the RIF, Singer changed its method of paying its sales managers from salary to straight commission. (T.T. at 113.)

Dodd was 59 years old at the time of his discharge and had been a Singer employee for over 33 years. Dodd, an Atlanta resident, was the DSM in the Atlanta territory of Singer’s Eastern Sales Region, and was responsible for developing, maintaining, and increasing sales to dealers of Singer products in Georgia and portions of South Carolina, North Carolina, and Florida. (T.T. at 96, 137, 138.) Dodd’s supervisor and regional manager, Mr. Pettijohn, also lived in Atlanta and was familiar with the territory. (T.T. at 122-23.)

According to the undisputed testimony of Mr. Alan Levenson, formerly a Senior Vice President of Singer’s North American Sewing Products Division (“Division”), during the 1970’s and early 1980’s Singer’s share of the United States sewing machine market dropped from approximately 43 percent to 23 percent. The total annual sales of sewing machines in the United States decreased from around three million units to one and one-half million units. As a result of the declining market Singer experienced a one hundred million dollar loss between 1980 and 1983. (T.T. at 120-21.) Even as compared to the previous years, however, the first five months of 1984 were characterized as a sales “disaster.” Dealer business dropped another fifteen percent. The dramatic drop in sales was attributable in large part to the news released to key dealers in the Spring of 1983 concerning a new line of Singer machines to be introduced in January, 1984. However, production and release was delayed, and the product did not become available to dealers until late 1984 and 1985. In 1985, sales increased by thirty-five percent. (T.T. at 51, 91-92, 97, 115, 178-81.)

Due to its financial difficulties, Singer had made several reductions in force in the early 1980’s among both its field sales representatives and its staff support personnel. Following the dramatic loss in the first months of 1984 from the sales of the 24 DSMs, senior management Division officials responsible for sewing machine sales to dealers of Singer products decided that seven DSM positions and three RM positions would be eliminated. Moreover, it was determined that the sales territories would be consolidated along geographical lines in order to maximize sales and minimize relocation and travel costs. (T.T. at 60-61, 40; Plaintiff's Exhibit, “Plf. Ex.,” 18.)

Mr. Jack McCrae, Vice President of Sales for Consumer Products in the Division, and Mr. Alan Levenson conducted the RIF. During August and early September, 1984 McCrae and Levenson met with other Division management officials on numerous occasions to draw new territorial boundary lines and determine which of the existing twenty-four DSMs would be retained after the consolidation. (T.T. at 25, 125, 138; *1081 Defendant’s Exhibit, “Def. Ex.,” 29, 30.) Mr. Levenson testified that Atlanta was the only city where Singer had two sales representatives. He further testified that the ages of the DSMs were never discussed at these meetings and that he had no idea of any of the individual salesmen’s ages. (T.T. at 122-123.)

In determining which DSMs would be terminated within each region, McCrae and Levenson relied primarily on current comparative performance data. Specifically, they looked to the DSM’s composite scores as of July, 1984. The scores were based on each DSM’s performance in the sales of sewing machines and sewing related products to dealers. The scores measured all of the company’s performance criteria and objectives. A ranking of the DSM’s composite scores was published monthly as an on-going performance monitoring and assessment process. The monthly composite score ranked all 24 DSMs. A low score was desirable. Therefore, the DSM with the lowest score was top-ranked, and the DSM with the highest score ranked at the bottom of the chart. The ranking was done nationally, but each DSM’s particular region was designated. There were three sales regions as of July, 1984, the Eastern (Region 22), Western (Region 23), and Central (Region 24). In the Eastern region, the scores in ascending order from the bottom of the ranking chart were Mr. Russell Scohy and Mr. Dominic Russo, both in their late 50’s or early 60’s, and then Dodd, age 59. Of the five DSMs in the Eastern region who were retained, two were in their mid-50’s and all of them had composite scores superior to the three DSMs that were terminated. (T.T. at 54, 59-60, 96, 123-26; Def.Ex. 13.)

During Mr. Dodd’s 33 years of service with Singer, the company had used national composite ranking to measure the job performance of each DSM’s overall value to the company. Dodd testified that the year-end national composite rankings had always been stressed as a key report. The national composite score as of July, 1984 revealed that Mr. Dodd was ranked thirteenth out of Singer’s twenty-four DSMs, and sixth out of eight in his region. Dodd’s national ranking placed him above five other individuals who were retained by Singer after the RIF. These five individuals, none of whom were located in the Eastern Region, were all younger than Dodd. In the Eastern region the three lowest ranking DSMs who were discharged were also the three oldest DSMs in the nation. (T.T. at 90, 170-72, 182.)

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Tuika v. American Samoa Development Corp.
3 Am. Samoa 3d 155 (High Court of American Samoa, 1999)
Murphy v. Yellow Freight System, Inc.
832 F. Supp. 1543 (N.D. Georgia, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
669 F. Supp. 1079, 64 Fair Empl. Prac. Cas. (BNA) 227, 1987 U.S. Dist. LEXIS 11061, 43 Empl. Prac. Dec. (CCH) 37,265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dodd-v-singer-co-gand-1987.