Franulic v. Bozell Worldwide, Inc.

24 F. App'x 511
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 21, 2001
DocketNo. 00-1476
StatusPublished

This text of 24 F. App'x 511 (Franulic v. Bozell Worldwide, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franulic v. Bozell Worldwide, Inc., 24 F. App'x 511 (6th Cir. 2001).

Opinion

DOWD, Senior District Judge.

Plaintiff-Appellant Judith Franulic (“Franulic”) appeals from the district court’s order granting summary judgment in favor of defendant Bozell Worldwide, Inc. (“Bozell”) on her Title VII claim of sex discrimination in employment. For the following reasons, we REVERSE the district court’s ruling and REMAND for further proceedings consistent with this opinion.

BACKGROUND

On March 9, 1999, Judith and Ivo Franulic filed their two-count complaint in the United States District Court for the Eastern District of Michigan against Judith Franulic’s employer, Bozell Worldwide, Inc.1 The complaint, brought under Title VII and Michigan’s Elliott-Larsen Civil Rights Act,2 alleged that Franulic was discriminated against on the basis of sex3 when her employment with Bozell was terminated.4

Franulic was first employed by Bozell’s corporate predecessor, Saatchi and Saatchi, in 1986 as a secretary. She has a bachelors degree in Sociology from Wayne State University and has taken several courses in marketing. She and Ivo have been married over 30 years; they have two adult children, one of whom is still financially dependent on them. In 1994, Ivo, a longtime employee of Unisys, was permanently laid off, leaving Franulic as the family’s sole source of income. Ivo has opened a dry cleaning establishment, which Franulic contends has yet to show a profit.

From 1986 through 1994, Franulic’s employer went through several corporate acquisitions and mergers while continuing to serve essentially the same clients. Bozell took ownership in January 1994. The primary business of Bozell’s Detroit office was providing advertising services for automotive clients. Its largest client was Chrysler, which accounted for about 95% of its business.

During her career, Franulic was promoted through several positions: Administrative Assistant, New Business Coordinator, Account Manager, Account Executive, Senior Account Executive, and Account Supervisor. On or about April 25, 1996, [513]*513she was made a partner in Bozell’s Multi-Produets Group (hereafter, “the Group”),5 which accounted for about 5% of the office’s revenue and serviced only non-automotive accounts. At all times during her tenure of employment Franulic performed competently; she was the recipient of commendations from her superiors and her employer’s clients.

On November 6, 1997, Franulie’s employment with Bozell was terminated, purportedly due to a reduction in force (“RIF”) aimed at improving efficiencies and cutting costs. At the time, Franulic’s annual salary was $69,000. After the termination of her employment, she and Ivo were forced to declare Chapter 7 bankruptcy.6

Bozell asserts that, after July 31, 1997, when True North Communications (“True North”) announced its pending merger with Bozell’s parent company, Bozell, Jacobs, Kenyon & Eckhardt, Inc. (“BJK & E”), Bozell’s senior management decided to cut expenses and increase revenues in order to achieve the financial results promised to True North. On September 19, 1997, the president of BJK & E sent a memo to all Bozell general managers announcing a company-wide hiring and salary freeze, the closing of all open positions, and the discontinuation of temporary freelance help. Later, at an off-site meeting, the Detroit department heads were informed that a reduction in force would also be necessary. The determination of which employees to eliminate in the RIF was purportedly based on profitability and performance, which included a consideration of those employees who were believed to be low-performing or under-performing.

Each Detroit department head was asked to review operations and staffing, and to RIF wherever possible to cut costs and enhance profitability. All managers were asked to submit lists of candidates for termination by mid-October, 1997. Robert Elliott, head of the Group (and Franulic’s supervisor) selected Franulic and Frank Blaney for the RIF. Elliott claims to have chosen Franulic because she was not essential to the operations of the Multi-Products Group. Frank Blaney was chosen because he handled only pro bono accounts.7

At the time of her termination, Franulic was the account supervisor of the Consumers Energy (“CE”) account. Bozell’s arrangement with CE called for CE to pay a fixed fee of $300,000 annually, irrespective of the account’s level of activity.8 Elliott claims that, at the time he included Fran[514]*514ulic’s name on the RIF list, she “was not essential to the operations of the MultiProducts Group, ... [and] was spending approximately 50% of her time on [CE], 10% helping out on pro bono accounts (which were not income generating), and approximately 40% of her time assisting [Elliott] (and others) with miscellaneous, non-income generating administrative projects.” (J.A. at 116). He asserted that “it was logical and least disruptive to the department to eliminate her position and arrange for another employee to oversee her account (in addition to the employee’s other assignments).” Id.9

Franulic acknowledges that the CE account did not always involve full time work and she claims to have repeatedly requested additional account work. Bozell’s response was to assign her to two pro bono accounts. Franulic also claims that she asked to be considered for the position of Director of New Business, a position that had been open since 1996 when the previous director was assigned overseas. Although she had served as a staff person to the New Business Manager for two years and had been trained in the Saatchi and Saatchi “canal system” of attracting new business, her request was ignored by managing partner Rob Elliott.10

Rob Elliott, who became managing partner of the Group in January 1997, had worked at Little Caesar’s in Detroit for over 17 years, with his last position being Vice President of Marketing. While there, he had worked with Chris Elliott (no relation), who eventually came to Bozell to head up the Creative Section of the Group, and with his friend David Church, who became Bozell’s Director of New Business. Franulic claims that, in contrast to prior managing partners, Rob Elliott treated her in a cold and distant manner from the time of his arrival until he terminated her.

Franulic claims that, after her termination, the CE account was taken over by David Church, a 35-year-old male who, at the time, had not been servicing any accounts and had been hired just two months earlier. Church was hired in September 1997 as Director of New Business,11 despite the fact that he had virtually no prior advertising agency experience, having spent his career in corporate marketing departments buying media, and despite the fact that the only available job description for New Business Director called for “solid agency experience” and “account experience.” (J.A. at 310).12 Church’s annu[515]*515al salary was $115,000, in contrast to Franulie’s $69,000. Church was later removed as Director of New Business because of a lack of new business, a situation which Chris Elliott, head of Creative for the Group, attributed to Church’s lack of “deep contacts as a seasoned New Business person would [possess] .... ” (J.A. at 329).

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