Gary L. Rowe v. The Marley Company, and Marley Pump Company United Dominion Industries, Incorporated

233 F.3d 825, 2000 U.S. App. LEXIS 30353, 84 Fair Empl. Prac. Cas. (BNA) 843, 2000 WL 1769349
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 1, 2000
Docket00-1093
StatusPublished
Cited by93 cases

This text of 233 F.3d 825 (Gary L. Rowe v. The Marley Company, and Marley Pump Company United Dominion Industries, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gary L. Rowe v. The Marley Company, and Marley Pump Company United Dominion Industries, Incorporated, 233 F.3d 825, 2000 U.S. App. LEXIS 30353, 84 Fair Empl. Prac. Cas. (BNA) 843, 2000 WL 1769349 (4th Cir. 2000).

Opinion

Affirmed by published opinion. Judge DIANA GRIBBON MOTZ wrote the opinion, in which Judge MICHAEL and Judge KING joined.

OPINION

DIANA GRIBBON MOTZ, Circuit Judge:

Gary Rowe brought this action against his former employer, alleging that his termination violated ERISA, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and constituted wrongful discharge under Virginia law. After discovery was completed, the district court granted the employer summary judgment on the federal claims and, pursuant to a motion by Rowe, dismissed his state law claim without prejudice. We affirm.

I.

In 1984, The Marley Company hired Rowe to sell its line of residential water pump products. Rowe’s territory as a regional sales manager for Marley was primarily limited to Virginia and West Virginia, but at times also included Delaware, Maryland, Kentucky, and western Pennsylvania. Throughout most of Rowe’s employment at Marley, his supervisor was Paul Robinson, but in late 1996, Robert *828 Garber, Marley’s Vice President for Sales, assumed responsibility for supervising Rowe.

In 1993, Rowe, who was an insulin-dependent diabetic and in end stage renal failure, underwent a kidney and pancreas transplant. After returning to work in 1994, Rowe consistently performed all of the necessary functions of his job and received satisfactory performance ratings. Indeed, Rowe did not miss a single day of work in 1996 and 1997. Rowe maintains, however, that he still experiences health problems related to the transplant operation, such as fatigue, dizziness, short-term memory loss, and an inability to exert himself physically for more than an hour. He also claims to suffer from impotence and urinary frequency. As a result of the transplant, Rowe must take immunosup-pressant medication and other drugs.

Through his employment with Marley, Rowe was eligible for group welfare benefits and he participated in the premium family health plan offered by Marley’s parent company. Marley was self-insured and thus bore the cost of these benefits in its operating budget. Marley’s health plan covered Rowe’s immunosuppressant medications, resulting in a cost to Marley of over $1000 a month. *

After becoming Rowe’s supervisor in late 1996, Garber, on occasion, commented on Rowe’s health. Specifically, Garber told Rowe about a friend who had undergone the same transplant surgery as Rowe, but was still very ill. Garber expressed surprise that Rowe could still work full time after having undergone such a major operation. During the months immediately prior to Rowe’s discharge, Garber continued to ask Rowe about his health and whether it impeded his ability to perform his job. Garber also knew that Rowe took immunosuppressant medication and assumed that Marley’s health plan covered the cost of this medication.

In late 1996 or early 1997, Marley’s president, James Gibbs, instructed Bob Moore, General Manager of Marley’s Water Systems 7 Division, to reduce Marley’s expense-to-revenue ratio. Marley was struggling financially as a result of the declining market for rural water pumps and other factors. As part of the effort to decrease Marley’s expenses, Moore asked Garber to reconfigure the national sales territories so that each territory’s annual sales would reach at least two million dollars.

To meet this new sales quota, Garber decided that it was necessary to reduce the number of East Coast sales territories from four to three. At that time, the East Coast salesmen were Bill Beyer, age 46, who covered New England and the Mid Atlantic states; Rowe, age 48, who covered Virginia and West Virginia; Jeff Black, age 38, who covered the Carolinas and Georgia; and Barry Dunham, age 49, who covered Florida. Only Dunham’s sales had exceeded two million dollars in the previous year. Garber decided to leave Dunham’s territory alone and to divide one of the remaining three territories.

Ultimately, Garber decided to divide Rowe’s centrally-locatQd territory between Black and Beyer to create two territories, each of which would hopefully meet the two million dollar sales quota. Garber opted to retain Black and Beyer, and not to replace one of them with Rowe, for several reasons. First, Garber decided that Rowe’s southern accent and demeanor would impede him from successfully selling in Beyer’s more northern territory; second, he concluded that distributors in Pennsylvania might resent Rowe because he had previously provided sales assistance to one of their competitors; and third, Black had a particularly good relationship with Marley’s largest customer, *829 whose headquarters were located in Black’s sales territory.

Rowe was not the only salesman affected by a territorial reconfiguration. Marley similarly divided a centrally-located sales territory in the Midwest and merged it into existing territories to the north and south. The reconfiguration of the Midwest territories resulted in the termination of another salesman, Del Walls, who was forty-one years of age.

At the same time it established the two million dollar sales quota, Marley instituted a company-wide reduction-in-force (RIF) as another means of cutting costs. Overall the RIF reduced Marley’s payroll by nearly one-third, from 221 to 146 employees. As a result of the RIF, employees both over and under forty years of age lost their jobs. At present, Marley has only six regional salesmen, down from fourteen before the RIF.

During the period in which Marley began implementing its cost-cutting measures, Marley’s parent company, United Dominion Industries (“UDI”), encouraged greater scrutiny of group welfare benefit expenses. To that end, UDI circulated to its subsidiaries an extensive report on 1996 group welfare benefit costs, rating each subsidiary, including Marley, on their costs versus the UDI median costs. While Marley’s costs were below average for a UDI subsidiary, the report noted that Marley’s 1996 costs were higher than its 1995 costs.

In April 1997, Garber told Rowe that his employment would be terminated because of the RIF and the territorial reconfiguration. Rowe’s discharge took effect in July 1997. In November 1998, after completing the EEOC administrative process, Rowe brought suit against Marley alleging that his termination violated ERISA, 29 U.S.C. § 1140 (1994), the ADA, 42 U.S.C. § 12101 (1994), the ADEA, 29 U.S.C. § 621 (1994), and constituted a wrongful discharge under state law. After discovery was completed, Marley moved for summary judgment on all counts. The district court granted the motion as to the federal claims and then granted Rowe’s motion to dismiss the state wrongful discharge claim without prejudice.

II.

Rowe asserts that he has established a prima facie case of discrimination under ERISA, the ADEA, and the ADA, and we assume for the purposes of this appeal that he has.

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233 F.3d 825, 2000 U.S. App. LEXIS 30353, 84 Fair Empl. Prac. Cas. (BNA) 843, 2000 WL 1769349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gary-l-rowe-v-the-marley-company-and-marley-pump-company-united-dominion-ca4-2000.