Frank L. SPULAK, Plaintiff-Appellee, v. K MART CORPORATION, Defendant-Appellant

894 F.2d 1150, 29 Fed. R. Serv. 1078, 1990 U.S. App. LEXIS 581, 52 Empl. Prac. Dec. (CCH) 39,584, 51 Fair Empl. Prac. Cas. (BNA) 1652, 1990 WL 2676
CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 18, 1990
Docket86-2156
StatusPublished
Cited by238 cases

This text of 894 F.2d 1150 (Frank L. SPULAK, Plaintiff-Appellee, v. K MART CORPORATION, Defendant-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank L. SPULAK, Plaintiff-Appellee, v. K MART CORPORATION, Defendant-Appellant, 894 F.2d 1150, 29 Fed. R. Serv. 1078, 1990 U.S. App. LEXIS 581, 52 Empl. Prac. Dec. (CCH) 39,584, 51 Fair Empl. Prac. Cas. (BNA) 1652, 1990 WL 2676 (10th Cir. 1990).

Opinion

SEYMOUR, Circuit Judge.

Frank Spulak sued K Mart Corporation under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621 et seq. (1982), alleging that he was constructively discharged from his employment with K Mart as a result of illegal age discrimination. He also asserted a pendent state claim for age discrimination and for extreme and outrageous conduct. The jury returned a verdict in favor of Spulak on the ADEA claim and awarded him back pay and liquidated damages. The court ruled post-trial that Spulak was entitled to front pay in lieu of reinstatement. The jury resolved the state claims adversely to Spulak. On appeal, K Mart contends that: 1) the evidence is insufficient to support the jury’s findings that Spulak was constructively discharged and that age was a determining factor in K Mart’s conduct; 2) the district court made a number of erroneous trial rulings; 3) the court erred in assessing the amount of damages; 4) the evidence does not support an award of liquidated damages; and 5) the court erred in calculating the amount of attorney’s fees awarded to Spulak. We affirm.

I.

BACKGROUND

Spulak was in his late fifties when he left his position as an auto service department manager with K Mart on April 30, 1985. He had been with the company almost eleven years. K Mart underwent a corporate restructuring in February 1985, in part to improve the profitability of its auto parts and service ■ departments, most of which were losing money. As a result of this reorganization, Spulak came under the supervision of a new district manager, James Price. Spulak testified that in the two months before he left, he began to feel his *1153 employment was threatened because of the conduct of Price and one of the mechanics who worked for Spulak, Gary Chisholm. Consequently, Spulak made a telephone inquiry to a K Mart retirement specialist and determined what his benefits would be if he took early retirement as of May 1, 1985. The next day Price asked the K Mart loss prevention manager to investigate Spulak.

Spulak was subsequently accused of violating company policy by using the store’s back door, failing to sign in and out properly, using improper invoicing procedures for work done on his car, and paying for merchandise four days after taking it from the store. These accusations were first made to Spulak by Jean Harp, who was K Mart’s Loss Prevention Manager. Spulak then turned to Price, who initially said he did not know what was going on, but moments later returned to Spulak and told him that he had authorized the investigation. Price then told Spulak, “I am going to call the Personnel Manager and tell him that I am going to fire you,” rec., vol. Ill, at 258, and that he was “fired or going to be fired,” rec., vol. IV, at 313. Spulak testified that at that point he was given an ultimatum either to be fired or to take early retirement. Rec., vol. Ill, at 258, 261. He knew that he would lose his benefits if he was fired so he had no alternative except to take early retirement. Id. at 258. Price advised Spulak to “just run over to the Personnel right quick and make out the application for [his] retirement,” id. at 261, and Spulak did so. There was other testimony that Price merely told Spulak that he had “enough on him to fire him,” id. at 187, and, in fact, Price ultimately decided to write up the violations as a written reprimand rather than as a termination. The reprimand warned Spulak that any further violations would result in termination. The written reprimand apparently occurred after Spulak had said he would take early retirement, however, and Spulak's theory of the case was that he submitted his resignation without knowing that the written reprimand only advised him that he would be fired in the future if he committed further infractions. Rec., vol. II, at 56.

Although Spulak apparently announced his resignation on or about March 27, it was not to become effective until May 1, 1985. Some time in April, Spulak approached Price and asked him what would happen if he changed his mind about taking early retirement. Price told him that if he tried to withdraw his retirement, Price would find some other way to fire him. Rec., vol. Ill, at 261. Price denied making that statement.

II.

SUFFICIENCY OF THE EVIDENCE

After the jury returned a verdict for Spulak on his ADEA claim, K Mart moved unsuccessfully for j.n.o.v., contending that Spulak had failed to create a fact issue as to whether he had been constructively discharged and whether age was a determining factor in K Mart’s actions. In reviewing the denial of a motion for j.n.o.v., we must view the evidence most favorably to the non-moving party and give that party the benefit of all reasonable inferences to be drawn from the evidence. See Trujillo v. Goodman, 825 F.2d 1453, 1456 (10th Cir.1987).

“[W]e may find error only when the evidence points but one way and is susceptible to no reasonable inferences sustaining the position of the party against whom the motion is made. While a scintilla of evidence is not enough, we must affirm if evidence was before the jury upon which it could properly find against the movant.”

Cooper v. Asplundh Tree Expert Co., 836 F.2d 1544, 1547 (10th Cir.1988) (citations omitted).

The framework for assessing the evidence in an age discrimination case parallels that applicable in a Title VII case. Id. at 1547.

“[A] plaintiff establishes a prima facie case by showing (1) he is within the protected age group, (2) he was doing satisfactory work, (3) he was discharged despite the adequacy of his work, and (4) his position was filled by a person younger than he. The burden of production *1154 then shifts to the employer to show a legitimate, nondiscriminatory reason for the challenged action. The plaintiff retains the ultimate burden of persuasion, which he may carry directly by proving that age was more likely than not a determinative factor in the employment decision, or indirectly by establishing that the employer's proffered explanation is mere pretext."

Id. (citations omitted). Spulak presented evidence that he was fifty-eight at the time he left K Mart and that he was replaced by Gary Chishoim, who was in his late twenties or early thirties. The record shows that Spulak rated average or above in the two previous yearly performance reviews and had received average or above average annual merit raises. K Mart contends, however, that the evidence fails to support the jury's finding of constructive discharge.

In Derr v. Gulf Oil Corp., 796 F.2d 340, 344 (10th Cir.1986), we clarified the standard for determining whether a constructive discharge has occurred:

"[P]roof of constructive discharge `depends upon whether a reasonable [person] would view the working conditions as intolerable.' Irving v.

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894 F.2d 1150, 29 Fed. R. Serv. 1078, 1990 U.S. App. LEXIS 581, 52 Empl. Prac. Dec. (CCH) 39,584, 51 Fair Empl. Prac. Cas. (BNA) 1652, 1990 WL 2676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-l-spulak-plaintiff-appellee-v-k-mart-corporation-ca10-1990.