Gould v. Kemper National Insurance Companies

880 F. Supp. 527, 1995 WL 127205
CourtDistrict Court, N.D. Illinois
DecidedMarch 5, 1995
Docket93 C 7189
StatusPublished
Cited by2 cases

This text of 880 F. Supp. 527 (Gould v. Kemper National Insurance Companies) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gould v. Kemper National Insurance Companies, 880 F. Supp. 527, 1995 WL 127205 (N.D. Ill. 1995).

Opinion

MEMORANDUM OPINION AND ORDER

ZAGEL, District Judge.

Certain words resonanate badly in the ear of an employee. Fire, dismiss, remove. Terminate. Eliminate. Or, to use the euphemistic verb favored by employers in the 90s, Downsize. But no matter which word is used, the unavoidable byproduct is the same: people are put out of work.

The point at which a business’ financial imperatives intrude on an individual’s ability to earn a livelihood is often the point at which the individual invokes the protection of the law. It is axiomatic that businesses seeking to maximize their efficiency and their profits must keep up with the times, adapting to the current demands of an increasingly competitive and specialized marketplace. This adaptation may manifest itself through structural changes in the business. And these changes, by their very nature, may result in the elimination of specific job titles, positions, functions, sometimes whole departments. Those people who experience the effects of “downsizing” most directly and most viscerally are those employees who— like Patricia Gould, the plaintiff in this ease— have lost their jobs through a Reduction-in-Force (RIF).

Patricia Gould was bom in 1938. When she lost her job at Kemper National Insurance Companies and Lumbermens Mutual Casualty Company in 1993, she was just several months shy of her sixtieth birthday. Gould brings suit against Kemper because she believes her dismissal and her age were intrinsically related.

Gould had worked at Kemper since 1971, when she joined its Corporate Education Department. The Department trained Kemper employees to improve their performance and develop their careers. As a Program Developer/Instmctional Designer and later as Manager of Instructional Design, Gould’s duties involved designing study materials, classroom courses and training sessions.

In 1989, Kemper hired Barbara Brooks (born 1945) as Director of Corporate Education. Gould reported directly to Brooks, who in turn reported directly to Anthony Catania (born 1942), the Vice President of Human Resources. Aside from Gould, Brooks supervised nine employees. Seven of the nine exceeded forty years of age.

*531 During the first two years of Brooks’ tenure, Gould’s responsibilities as Manager of Instructional Design remained the same. But then around April 1991, Brooks restructured the Corporate Education Department. Employees were shifted into different areas within the department, with the goal of matching individual skills with specific departmental needs. Brooks moved Gould laterally, to match Gould’s administrative skills to a new, high priority project — The Career Development Resource Center (CDRC). Gould filled the newly created position of Assistant Director of Corporate Education, and was relieved of any previous supervisory responsibilities.

Gould spent a significant amount of time creating and administrating the CDRC. She was responsible for the planning and maintenance of the physical Resource Center facility, which was to be built in Long Grove, and the resources to be housed in the facility, in addition to related administrative tasks. Betsey Norris (age 37) joined Gould at the CDRC, as a training instructor.

In January 1992, the CDRC “Task Force” on which Gould sat added Kathie Murphy (age 46), to co-author with Gould the final CDRC proposal. Murphy, who had an M.A. and Ph.D. in Counseling, assumed responsibility for counseling Kemper employees. The final proposal, submitted by Gould and Murphy in September 1992, contained a clear division of duties in operating the CDRC. Gould would implement and administer all physical resource aspects of the facility; Murphy would supply individual employees with career counseling.

In the summer of 1992, Kemper’s Expense Committee executives met to discuss ways to save costs in each department. The Committee told Human Resources Vice President Catania to supervise an RIF, and cut at least one “educator” within Corporate Education. Brooks did not learn of the RIF until a subsequent meeting with Catania.

Catania had the power and the discretion to find the most likely target for cuts. Since it was the only project that had not moved beyond the developmental state, the CDRC stood out as riper for cutting than more fully-realized projects. Under company policy, the elimination of an entire corporate function meant the elimination of all employees associated with that function. When the CDRC terminated, so too did the positions within it held by Patricia Gould and Betsey Norris. 1 The performance of neither woman apparently factored into Catania’s decision.

After Gould and Norris left, Murphy continued to provide career counseling elsewhere at a reduced level, and she resumed her prior training work. Gould was never considered for Murphy’s position since she lacked both Murphy’s training and experience in counseling. Catania made attempts to find something for Gould in another department, but could find no space for her. After Gould’s departure, the Corporate Education Department employed twelve persons, eight of whom were over 40 years old, two of whom were older than Gould.

Gould now claims that Kemper let her go because it thought she was too old to work there, and that it used the RIF merely as a pretext to cover up this discriminatory purpose. Kemper is liable to her, Gould claims, because its actions violate the Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621-634.

Kemper refutes this, claiming its decision to eliminate the CDRC was legitimately motivated by the prudential business considerations of increased efficiency and maximized profits. Gould’s age, Kemper maintains, simply did not factor into its decisions. Claiming Gould can produce no evidence to the contrary, Kemper moves for summary judgement.

I. SUMMARY JUDGMENT IN ADEA CASES

Summary judgment must be granted when there is no genuine issue of material fact within the record and the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, *532 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). When faced with a motion for summary judgment, all reasonable inferences must be drawn in the light most favorable to the nonmovant. Anderson v. Stauffer Chemical Co., 965 F.2d 397, 400 (7th Cir.1992). However, Gould cannot rely solely on her pleadings in the hope of avoiding summary judgment, but rather must affirm specific facts showing a genuine issue of material fact for trial. Catrett, 477 U.S. at 324, 106 S.Ct. at 2553. A dispute about a material fact is genuine only if the evidence presented is such that a reasonable jury could return a verdict for the nonmov-ant. Anderson, 477 U.S. at 248, 106 S.Ct.

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880 F. Supp. 527, 1995 WL 127205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gould-v-kemper-national-insurance-companies-ilnd-1995.