Hagen v. Howmet Corp.

840 F. Supp. 480, 1994 U.S. Dist. LEXIS 203, 64 Empl. Prac. Dec. (CCH) 43,034, 64 Fair Empl. Prac. Cas. (BNA) 103, 1994 WL 6723
CourtDistrict Court, W.D. Michigan
DecidedJanuary 3, 1994
Docket2:93-cv-00234
StatusPublished
Cited by1 cases

This text of 840 F. Supp. 480 (Hagen v. Howmet Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hagen v. Howmet Corp., 840 F. Supp. 480, 1994 U.S. Dist. LEXIS 203, 64 Empl. Prac. Dec. (CCH) 43,034, 64 Fair Empl. Prac. Cas. (BNA) 103, 1994 WL 6723 (W.D. Mich. 1994).

Opinion

OPINION

QUIST, District Judge.

Thomas Hagen and Jack Sturtevant, the plaintiffs in these two consolidated cases, claim that defendant Howmet Corporation (Howmet) wrongfully terminated their employment and discriminated against them based upon their age. This matter is before the Court on defendant’s motions for summary judgment against each plaintiff.

Statement of Facts

Howmet Corporation has a high technology foundry operation in Whitehall, Michigan, which manufactures components for the military and commercial aircraft industry. How-met claims that military spending cuts and poor business conditions in the commercial airline industry forced it to significantly reduce its workforce in the early 1990’s. The plaintiffs were laid off during Howmet’s reduction in force (RIF). The facts as they relate specifically to each of the plaintiffs are outlined below.

Thomas Hagen

Plaintiff Thomas Hagen is a forty-four (44) year old man who has been an employee of the Howmet Corporation on four occasions between 1968 and 1991. His initial employment at Howmet was during the summer of 1968. In April of 1973, Mr. Hagen returned to Howmet as a salaried employee. He was given a company handbook entitled “YOUR FUTURE WITH HOWMET.” The handbook contained the following language which, according the Mr. Hagen, specifically promised that his employment would be terminated only for just cause:

No employee will be terminated without proper cause or reason and not until management has made a careful review of all facts.

1973 Handbook at p. 9. The handbook also described a progressive discipline procedure, a probationary period, and specific grounds for discharge. The last page of the handbook, however, stated that it did not constitute a contract:

The contents of this booklet are not intended to establish, and should not be interpreted to constitute any contract between the Misco Whitehall Division, Product Support Operations, Reactive Metal Operations or the Technical Center of Howmet Turbine Components Corporation and any employee, or group of employees.

1973 Handbook at p. 9.

Mr. Hagen worked at Howmet from 1973 until September of 1976. In 1976, he returned to college to complete his mechanical engineering degree. He returned to How-met for the third time in January of 1980 and remained there until October of 1984, when he took a job with Kaydon Corporation. In September, 1986, Mr. Hagen was again rehired at Howmet. At that time, he completed an Application For Employment which contained the following language:

I understand that in the event I am hired and in the absence of a written agreement to the contrary, my status will be that of an employee at will, with no contractual right, express or implied, to remain in the Company’s employ. In consideration of my employment, I specifically agree that my employment may be terminated, with or without cause or notice, at any time, at the option of either the Company or myself. I understand that no unauthorized *482 representative may enter any agreement for employment or make any agreement contrary to the foregoing.

Application For Employment at p. 3 (emphasis added). Mr. Hagen’s signature appears just below the “at will” language quoted above.

At the time of his 1986 rehire, Mr. Hagen also signed a document acknowledging that he had received the handbook “YOUR FUTURE WITH HOWMET.” The handbook distributed in 1986 did not state that employees would be terminated only for cause. Rather, it contained the following language:

The company reserves the right to terminate employees without assigning cause; therefore, the employee serves at the will of the employer.

1986 Handbook at p. 9. The affidavit of Ms. Joyce McClure, the individual responsible for processing new hires, states that she provided Mr. Hagen with the employee handbook in 1986. Mr. Hagen contends that he never received a new handbook when he returned to Howmet in 1986. According to his affidavit, he signed some personnel records but the procedure was accomplished hurriedly and without a thorough review of the contents of the documents. He cites the affidavit of Nancy Johnson, Howmet’s employment manager. She states that during a period of time in 1986, Howmet ran out of new handbooks and was unable to distribute them to the new employees. She thinks this period coincided with the time Mr. Hagen was rehired. However, Mr. William Roof, Howmet’s director of Human Resources, has testified that although there was a period of time in the 1980’s when Howmet ran out of printed copies of the handbooks, the handbooks were duplicated so that they were always available for distribution.

Mr. Hagen contends that, even if he did receive a new handbook, there is a factual dispute as to whether he had a legitimate expectation that his employment with How-met would be terminated only for good cause. He bases this expectation on the promises contained in the 1973 Handbook and alleges that he received no notification that the company was changing to an at-will termination policy. He claims he received a mixed message as to whether he had a legitimate expectation of secure employment.

Mr. Hagen also challenges Howmet’s assertion that his termination resulted from a necessary reduction in force. Mr. Hagen alleges that during the time period in which Howmet claims it was economically necessary to reduce its workforce, the company was experiencing a steady increase in corporate net worth and retained earnings and thus the claimed reduction in force was a pretext for terminating him. In support of this position, he offers the affidavit of an economist, William D. King, Ph.D. Howmet points out that Mr. Hagen acknowledged that he was terminated because the project on which he worked within the Foundry Technology group was eliminated and the group was redirected from equipment to metallurgical development. Howmet also objects that an assessment of its overall health is irrelevant when there is a bona fide economic reason for termination in the particular divisions in which plaintiffs were employed.

Mr. Hagen also alleges that he has demonstrated a prima facie case of age discrimination. According to Mr. Hagen, he was a member of a protected class and was a competent employee. After his termination he was replaced by a younger individual, Chris Hanslits. Howmet alleges that Mr. Hanslits did not replace Mr. Hagen, who was a mechanical engineer. Instead, Mr. Hanslits filled a metallurgical engineering position in the Foundry Research group.

Finally, with the support of Dr. King’s affidavit, Mr. Hagen argues that Howmet’s reduction in force resulted in a disparate impact on older employees. Howmet counters with computations which show that the average age of salaried employees terminated in the RIF was younger that the average age of salaried employees in the workforce at that time.

Jack Sturtevant

Mr. Sturtevant was employed by Howmet on two occasions. He was initially employed in January of 1967.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
840 F. Supp. 480, 1994 U.S. Dist. LEXIS 203, 64 Empl. Prac. Dec. (CCH) 43,034, 64 Fair Empl. Prac. Cas. (BNA) 103, 1994 WL 6723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hagen-v-howmet-corp-miwd-1994.