Gunther GRAEFENHAIN and Philip Miller, Plaintiffs-Appellants, v. PABST BREWING COMPANY, Defendant-Appellee

827 F.2d 13, 1987 U.S. App. LEXIS 10770, 43 Empl. Prac. Dec. (CCH) 37,213, 44 Fair Empl. Prac. Cas. (BNA) 180
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 26, 1987
Docket85-3094, 85-3095
StatusPublished
Cited by134 cases

This text of 827 F.2d 13 (Gunther GRAEFENHAIN and Philip Miller, Plaintiffs-Appellants, v. PABST BREWING COMPANY, Defendant-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Gunther GRAEFENHAIN and Philip Miller, Plaintiffs-Appellants, v. PABST BREWING COMPANY, Defendant-Appellee, 827 F.2d 13, 1987 U.S. App. LEXIS 10770, 43 Empl. Prac. Dec. (CCH) 37,213, 44 Fair Empl. Prac. Cas. (BNA) 180 (7th Cir. 1987).

Opinion

WILL, Senior District Judge.

This is an appeal from a judgment n.o.v. in a suit brought under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. The plaintiffs, Gunther Graefenhain and Philip Miller, sued Pabst Brewing Co. (“Pabst”) for age dis *15 crimination. 1 The jury found that Pabst had willfully discriminated against both Graefenhain and Miller by terminating them on the basis of age. Following a separate trial for damages, the district court found the jury verdict unsupportable and granted Pabst’s motion for a judgment n.o.v. The questions presented on this appeal are (1) whether the district court applied proper legal precepts in refusing to consider evidence of plaintiffs’ superior performance as proof of pretext; (2) whether the district court misapplied the judgment n.o.v. standard by failing to view plaintiffs’ evidence in its totality; and (3) whether substantial evidence supports the jury’s verdict. After carefully examining the entire record in this case, we conclude that the exacting standards for granting a losing party’s motion to overcome a jury verdict were not satisfied here. We therefore reverse and remand for reinstatement of the jury verdict and for reconsideration of plaintiffs’ previously pending motion to amend the original judgment to award “front pay damages.”

I.

A district court’s decision to enter a judgment n.o.v. must be reviewed de novo. Kunzelman v. Thompson, 799 F.2d 1172 (7th Cir.1986). A judgment n.o.v. is properly granted where the evidence presented, combined with all reasonable inferences that may be drawn from it, is insufficient to support a jury verdict when viewed in the light most favorable to the non-moving party. Syvock v. Milwaukee Boiler Mfg. Co., 665 F.2d 149 (7th Cir.1981); Christie v. Foremost Insurance Co., 785 F.2d 584, 585 (7th Cir.1986). In reviewing a district court’s decision to enter a judgment n.o.v. we do not, of course, judge the credibility of witnesses, see Freeman v. Franzen, 695 F.2d 485, 489 (7th Cir.1982), cert. denied, 463 U.S. 1214, 103 S.Ct. 3553, 77 L.Ed.2d 1400 (1983), and we do not reweigh the evidence as would a jury to find a preponderance on one side or the other. LaMontagne v. American Convenience Products, 750 F.2d 1405, 1405 (7th Cir.1984). “We do however, weigh the evidence to the extent of determining whether the evidence is substantial; a mere scintilla of evidence will not suffice.” Id. (emphasis in the original).

Viewed in accordance with these principles, and emphasizing this court’s obligation to interpret events in a light most favorable to Graefenhain and Miller, the record discloses the following facts.

Pabst is a brewery engaged in the production and nationwide marketing of beer. Gunther Graefenhain and Philip Miller were employed by Pabst as Division Sales Managers for the Rocky Mountain and Atlantic Divisions, respectively.

Graefenhain had been employed by Pabst for fifteen years. He consistently received positive performance evaluations, annual merit pay increases, and bonuses, which continued up until 1981, the year of his discharge. As of December 1981, beer sales were up 7% for Graefenhain’s division, thus ranking his division the second highest nationwide out of a total of 13 divisions. Graefenhain had received commendation letters from a number of Pabst officials over the years from 1968 through 1981. Graefenhain received his last commendation in April 1981 from the then Vice President of Pabst, Paul Roller, along with a $1,000 bonus. This was approximately six months before Pabst fired him.

Like Graefenhain, Philip Miller was a long-time employee of Pabst. At the time Miller was fired, he had been employed by Pabst for 32 years, and. like Graefenhain, he had consistently received positive evaluations, letters of commendation, and bonus payments. Because of Miller’s long tenure at Pabst, he was a member of what was regularly described as the “Old Guard.” At the time he was fired, his supervisor’s most recent evaluation ranked him second out of five division managers in the Atlantic region.

*16 In December 1981, Pabst, faced with declining beer sales, implemented a nationwide sales force reduction, which resulted in the firing of Graefenhain and Miller. Graefenhain received notice of his termination on December 1, 1981. He was 47 years old. 2 His immediate supervisor, George Spencer, told him at that time that as a result of economic cutbacks, Pabst was closing his office. 3 Pabst never closed the Rocky Mountain office, however. Approximately two months after firing Graefenhain, Pabst installed Dave Kelly, age 29 and an employee of Pabst for the previous 4V2 years, as the Rocky Mountain Division Manager. Kelly assumed the same title, the same office, the same secretary, and the same vehicle as Graefenhain.

Although at the time of discharge the only reason Spencer gave for Graefenhain’s termination was economic cutbacks, Spencer later testified that Graefenhain was fired because Spencer had long been dissatisfied with Graefenhain’s lack of cooperation and performance. In October 1981, Spencer had ranked Graefenhain fourth out of his four division managers, and at trial he referred to this low evaluation as the basis which led to Graefenhain’s firing.

Spencer testified that his criticisms of Graefenhain included: (1) concerns about the timeliness and completeness of Graefenhain’s pricing materials; (2) Graefenhain’s request for approval of promotions after the promotions period had started; (3) the fact that Graefenhain’s division was $6,000 over budget; and (4) sales decreases and pricing errors.

Pabst also terminated Miller in December 1981, giving economic cutbacks as the only reason. Miller was 62 at the time. Two months earlier, Miller’s supervisor, Michael Matchey, ranked Miller second out of five district managers. After Miller’s departure, his Atlantic Division territory was split up and taken over by two other division managers in the Eastern region. Both men were younger than Miller and had less seniority. Matchey testified at trial that Miller was a better employee than either of the two other division managers. A year and a half later, after Pabst merged with Olympia Beer, Pabst reestablished Miller’s old position and filled it with a younger, less experienced person.

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827 F.2d 13, 1987 U.S. App. LEXIS 10770, 43 Empl. Prac. Dec. (CCH) 37,213, 44 Fair Empl. Prac. Cas. (BNA) 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gunther-graefenhain-and-philip-miller-plaintiffs-appellants-v-pabst-ca7-1987.