Foster, Diane v. Principal Life Insur

247 F. App'x 836
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 20, 2007
Docket06-3068
StatusUnpublished

This text of 247 F. App'x 836 (Foster, Diane v. Principal Life Insur) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foster, Diane v. Principal Life Insur, 247 F. App'x 836 (7th Cir. 2007).

Opinion

ORDER

Dianne Foster 1 sued Principal Life In *837 surance Company, 2 her former employer, arguing that it terminated her on the basis of her age in violation of the Age Discrimination in Employment Act, 29 U.S.C. §§ 621 to 684. The district court granted summary judgment to Principal, concluding that Foster failed to establish her prima facie case and, alternatively, that Principal’s stated reason for her termination was not a pretext for discrimination. Foster appealed, and we affirm.

In 1990 Foster began working as Office Manager for an insurance company in Oak Brook, Illinois. Principal acquired the company in 1999, and Foster continued to work for Principal in the same capacity. Foster’s office sold employee benefit programs. Foster’s tasks included overseeing administrative staff, working on group health insurance proposals, and submitting new case submissions to underwriting. Over time, Foster went from supervising only three staff members to eleven or twelve. As Office Manager, Foster reported to Dave Kapustka, Vice President of Group Sales.

Foster’s employment was not without problems. In 1999 she received a final written warning for calling Kapustka “a fucker” — a retort she made after a sales meeting in which Kapustka, according to Foster, “dismissed her like a little girl.” After receiving the warning, Foster submitted her resignation, but Kapustka ultimately persuaded her not to quit. However, the final warning letter also stated that Principal had “very serious concerns” about Foster’s job performance. It noted that Kapustka had had “multiple discussions” with Foster about her “need to manage the office, organize and begin issuing quotes on time, training of employees, etc.” The letter also stated, “We cannot afford more customer/employee complaints.”

After this incident Foster’s performance reviews continued to show some problem areas but were generally satisfactory. Her 1999 performance review, issued about six months after the final warning letter, indicated that she did “not meet requirements” in three of the eight “major position accountabilities.” However, her performance improved throughout the following year; her review showed that she met all eight requirements. Her 2001 and 2002 reviews, in a different format, indicate that she met almost all of Principal’s expectations.

In late 2002 or early 2003, Principal decided to replace the Office Manager position with two newly created positions, the Client Services Director (CSD) and the Regional Client Services Director (RCSD). The CSD position was similar to the Office Manager position but required much more face-to-face contact with customers and brokers and a great deal of travel, including overnight stays. Whether Foster applied for this position is disputed; Principal states that Foster was interviewed, while Foster maintains that she did not apply for it because it was never posted. In any event, Sandra Mendicino, age 39, took the job. Mendicino, who had been working as an account executive, was offered the job because of her relationship with the home office, her ability to work renewals, and the respectful relationship she had with sales staff and agents. Foster, by contrast, had spent little time working outside of the office.

Applicants for the RCSD position were evaluated on their leadership skills, understanding of the underwriting process, and job experience — particularly in working *838 with clients and brokers, and the home office. Foster applied for this position along with two other people, Denise Conner, who was in her 40s, and Cindy Close, age 32. Principal’s Regional Vice Presidents decided to hire Close after interviewing the three candidates. They preferred Close because she had been with Principal for more than eight years, starting as an underwriter and ultimately managing the underwriting team, and also had strong relationships with the home office and had worked with customers and brokers on tough renewals. She also had good leadership skills and fully understood the pricing process.

After missing out on these two positions, Foster accepted a position in January 2003 as the Senior Marketing Consultant for Principal’s United Healthcare business. In taking this position, Foster also accepted a salary reduction from $57,700 to $47,000, which she expressed unhappiness about to her supervisors on at least one occasion.

In late July, Mendicino sent Foster an email suggesting that she apply for an Account Executive position that was opening up in Bloomington, Illinois. The salary for this position was in the low $40,-000’s, even less than Foster’s current job. Foster responded that she was not interested in applying for the job.

Not long after this email exchange, Principal eliminated Foster’s position as part of a reduction in force. Principal’s stated reason for terminating Foster was that the United Healthcare business had declined. Principal ultimately lost its contract to sell United Healthcare products. At the time of her termination Foster was 51 years old.

In early August 2003 Principal hired Allison Olcott, age 25, to fill a Marketing Specialist position in the Oak Brook office. The position paid between $33,400 and $43,500, less than Foster’s most recent job. After her termination, Foster complained to Principal’s Human Resource Generalist Rhonda Kilkenny that she was disappointed she had not been considered for the position. Kilkenny told Foster that she did not think Foster would be interested because the position paid less than what Foster had been earning and was a clerical position two levels below her position at Principal.

Foster subsequently filed a complaint with the Equal Employment Opportunity Commission, received a Notice of Right to Sue Letter, and then commenced this lawsuit, alleging that Principal unlawfully terminated her position and retaliated against her for complaining about Principal’s hiring of Olcott. The district court granted Principal’s motion for summary judgment, concluding that Foster had not shown any evidence of discrimination under the direct or indirect burden-shifting method of proof. The court assumed that Foster was meeting Principal’s legitimate expectations. However, Foster did not establish a prima facie case because she had not shown that similarly situated employees outside the protected class were treated more favorably. Even if Foster was able to establish a prima facie case, the court continued, she did not show that Principal’s stated reason for her termination — the loss of the United Healthcare contract — was a pretext for discrimination.

On appeal Foster no longer contends that the reason given for her termination was pretextual. Instead she focuses her discrimination claim on Principal’s failure to hire her into the two other available positions in 2003 — those taken by Mendicino and Olcott.

The ADEA prohibits an employer from refusing to hire an individual because of her age. 29 U.S.C. § 623(a)(1). “To establish a claim under the ADEA, a plaintiff-employee must show that ‘the protected trait (under the ADEA, age) actually *839

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Bluebook (online)
247 F. App'x 836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-diane-v-principal-life-insur-ca7-2007.