Gries v. Zimmer, Inc.

742 F. Supp. 1309, 1990 WL 107847
CourtDistrict Court, W.D. North Carolina
DecidedJuly 23, 1990
DocketC-C-87-576-P, C-C-87-477-P
StatusPublished
Cited by4 cases

This text of 742 F. Supp. 1309 (Gries v. Zimmer, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gries v. Zimmer, Inc., 742 F. Supp. 1309, 1990 WL 107847 (W.D.N.C. 1990).

Opinion

MEMORANDUM OF DECISION AND ORDER

ROBERT D. POTTER, Chief Judge.

THESE MATTERS are before the Court on the parties’ post-trial motions. Both the Plaintiffs and the Defendant, Zimmer Inc. (hereafter “Zimmer”), exhaustively have *1311 briefed the issues raised by the various motions.

I. PROCEDURAL BACKGROUND

After being terminated from their employment with Zimmer, the Plaintiffs separately filed these actions. The Plaintiffs alleged violations of the Age Discrimination in Employment Act (ADEA) and breach of contract. See 29 U.S.C. §§ 621-634 (1988) (ADEA). The Court consolidated these two cases for trial. The Court granted summary judgment in Zimmer’s favor on the Plaintiffs’ breach of contract claims. The Court then presided over a jury trial on the Plaintiffs’ age discrimination claims, which began on January 10, 1990, and culminated with a jury verdict in the Plaintiffs’ favor on January 19, 1990. 1 The jury found that Zimmer terminated each of the Plaintiffs because of their age. 2 The jury awarded Plaintiff Michael J. Moran back pay in the amount of $40,540.44, exactly half of the amount sought. The jury awarded Plaintiff Wayne R. Gries back pay in the amount of $55,851.10, exactly half of the amount sought. On January 22, 1990, the Court entered a Judgment consistent with the jury verdict. On January 30, 1990, Zimmer filed a Motion for Judgment Notwithstanding the Verdict or For a New Trial. On the same date, the Plaintiffs filed a Motion to Amend Judgment and for Judgment Notwithstanding the Verdict, and alternatively, for a New Trial.

II. A SUMMARY OF THE EVIDENCE

To put the parties’ post-trial motions in context, the Court briefly will summarize the evidence adduced during the eight-day trial of these cases. Zimmer is a wholly-owned subsidiary of Bristol-Myers and is headquartered in Warsaw, Indiana. Zim-mer manufactures orthopedic devices and surgical instruments and supplies. In North Carolina, Zimmer operated a division known as Patient Care Systems (hereafter “Patient Care”), which manufactured and supplied products associated with Zimmer’s medical metalworking process. Zimmer also operated several other divisions in other states, including Snyder Laboratories (hereafter “Snyder”) and Aspen Laboratories (hereafter “Aspen”).

Zimmer originally employed both Plaintiffs in Indiana. Zimmer initially hired Moran in 1975 as Manufacturing Controller and Gries in 1979 as Budget Director. Moran worked for Zimmer in Indiana from 1975 until 1980, at which time he became Patient Care’s Vice President-Finance in North Carolina. In 1984 Moran became Vice President-Operations and took direct responsibility for the production operations at Patient Care. Upon Moran’s ascension to Vice President-Operations in 1984, Gries moved to North Carolina and became Vice President-Finance for Patient Care.

Both Moran and Gries worked directly for Mr. Robert Teskey, the President of Patient Care. Teskey had been the President of Patient Care for some time. During the time that Moran and Gries worked at Patient Care, Teskey had rated the Plaintiffs as either very effective or effective.

Mr. Ron Davis, the Executive Vice President of Zimmer, was responsible for overseeing the operation of Patient Care. Beginning in 1986, Davis began to lose confidence in the top management of Patient Care for primarily two reasons. First, during the first half of 1986, a discrepancy of approximately $840,000 between the physical inventory and the book inventory developed. Neither Teskey nor Gries informed Zimmer of the inventory discrepancy until late July 1986, despite presenting Zimmer with Patient Care’s quarterly financial report in early July 1986. Gries ultimately reported the inventory discrepancy to Zim-mer shortly before Bristol-Myers performed an on-site financial audit at Patient Care. Because of the inventory discrepan *1312 cy, Bristol-Myers subsequently issued a qualified audit and cited numerous operational problems as primary contributing factors in the inventory discrepancy. Although eventually corrected, the inventory discrepancy required Zimmer to claim a loss on its financial statements. Davis informed Teskey of his dissatisfaction with the handling of the inventory discrepancy by Patient Care’s top management. Davis also requested Teskey to notify Moran and Gries of his dissatisfaction.

Davis began to lose confidence in the top management of Patient Care, secondly, because he learned of the differing management philosophies and techniques used by Moran and Gries, which resulted in open conflict and a strained relationship between Moran and Gries personally and between those who worked for them. The strained relationship caused a lack of cooperation, communication, and coordination between Patient Care’s finance department and operations/manufacturing department. Tes-key apparently failed to alleviate the friction between the two managers and their respective staffs.

As a result of both the handling of the inventory discrepancy and the perceived working environment at Patient Care, Davis did not recommend any bonuses for Patient Care’s top management, including Teskey and the Plaintiffs, at the end of 1986. In evaluating the Plaintiffs at the end of 1986, Davis commented on his dissatisfaction in their performance.

On April 6, 1987, Zimmer announced a consolidation of Patient Care and Snyder into the Patient Care Division (hereafter “the new Patient Care”). The new Patient Care maintained operations in both Ohio and North Carolina. Davis had decided to consolidate Patient Care and Snyder because of Patient Care’s poor performance since 1985. In consolidating the two divisions, Davis intended to reduce overhead and other costs, to improve profitability, and to improve the manner of operations of Zimmer’s North Carolina operations. Because of his satisfaction with Snyder’s management and his dissatisfaction with Patient Care’s management, Davis decided to retain Snyder’s management team and to terminate Teskey and the Plaintiffs. On April 6, 1987, Davis fired Tesky, Moran, and Gries. When fired, Teskey was 52 years of age, Moran was 44 years of age, and Gries was 40 years of age. When Davis fired Teskey and the Plaintiffs, Davis informed them that the consolidation, not performance problems, caused their discharges. To avoid humiliating Tes-key or the Plaintiffs, Davis did not discuss his dissatisfaction with them or his loss of confidence in their abilities.

Upon the consolidation, Charles L. Deeds, who was 57 years old, became the President of the new Patient Care and worked out of the Ohio office. Marley D. Price, who was 35 years old, immediately became the Vice President-Controller on an interim basis. Price worked out of the Ohio office and reported directly to Deeds. Ken R. Coonce, who was 35 years old, became the Manufacturing Controller and reported directly to Price. Coonce worked out of the North Carolina office. Because Coonce did not want to work permanently as the Manufacturing Controller in North Carolina, Zimmer replaced him on July 27, 1987, with William Franko, who was 37 years old.

Upon the consolidation, Thomas W.

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742 F. Supp. 1309, 1990 WL 107847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gries-v-zimmer-inc-ncwd-1990.