Hankins v. Transcanada USA Services, Inc.

22 F. Supp. 3d 844, 2014 U.S. Dist. LEXIS 71444, 123 Fair Empl. Prac. Cas. (BNA) 411, 2014 WL 2159006
CourtDistrict Court, M.D. Tennessee
DecidedMay 23, 2014
DocketCase No. 3:13-0371
StatusPublished
Cited by2 cases

This text of 22 F. Supp. 3d 844 (Hankins v. Transcanada USA Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hankins v. Transcanada USA Services, Inc., 22 F. Supp. 3d 844, 2014 U.S. Dist. LEXIS 71444, 123 Fair Empl. Prac. Cas. (BNA) 411, 2014 WL 2159006 (M.D. Tenn. 2014).

Opinion

MEMORANDUM

WILLIAM J. HAYNES, JR., Chief Judge.

Plaintiff, Bailey Hankins, filed this action1 under the Older Workers Benefit Protection Act (“OWBPA”) 29 U.S.C. § 626 and the Age Discrimination on Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. against the Defendant TransCanada USA Services, Inc., his former employer. Plaintiff alleges that Defendant terminated him with other older workers and required acceptance of a severance agreement that waived Plaintiffs and the other older workers’ rights under the ADEA. Plain[846]*846tiffs claim is that for such group terminations, OWBPA requires disclosures of the identity of other older workers who were terminated, but the Defendant failed to do so. Plaintiff alleges that Defendant’s failure to make such a disclosure invalidates the waiver of his rights under the ADEA.

Before the Court is the Defendant’s motion for summary judgment (Docket Entry No. 17) on Plaintiffs ADEA claim contending, in essence, that under his severance agreement, Plaintiff waived his ADEA rights and because Plaintiff was the only employee terminated, the OWBDA’s disclosures were not required. The Defendant contends that Plaintiffs termination was not part of an “Exit Incentive program” or “other involuntary termination program” under the OWBPA. Thus, the Defendant argues that Plaintiff voluntarily waived any claim under the ADEA. Plaintiff responds that he, Danny Carr and James Ethridge were effectively terminated at the same time with their compensation determined by the same method of calculation. Thus, Plaintiff contends that his termination, coupled with Carr’s and Ethridge’s terminations, qualify as a “in-„ voluntary termination program” requiring the Defendant to make OWBPA disclosures.

For the reasons set forth below, the Court concludes that Plaintiff has presented sufficient proof to support a judgment on his ADEA and OEPA claims, but material factual disputes exist about the waiver issue and whether the terminations were of a group of eligible employees. With these disputes, the Court cannot resolve this action on a motion for summary judgment.

A. Review of the Record2

Plaintiff, Danny Carr and James Eth-ridge were onshore area operations managers for TransCanada’s Mid America Region. (Docket Entry No. 17-1, Hankins Affidavit at ¶ 6, and Docket Entry No. 26-5, Ferguson Deposition at 137, 139). For their tenures at TransCanada, Plaintiff worked twenty-three (23) years, Carr worked thirty-six (36) years and Ethridge worked thirty-two (32) years. (Docket Entry No. 17-4, Carr Affidavit at ¶¶ 4, 5; Docket Entry No. 17-5, Ethridge Affidavit at ¶¶ 4, 5; Docket Entry No. 17-1, Han-kins Affidavit at ¶¶ 4, 5). Until July 2012, Plaintiff asserts that TransCanada’s Mid America Region had offices in Celestine, Indiana that Carr managed; Sardis, Mississippi that Ethridge managed; West Monroe, Louisiana that Plaintiff managed; and Lafayette Louisiana that Ed Guillotte managed. Id.

In January 2012, Kyle Ferguson became the new Director of Operations for the Mid America Region and Plaintiffs immediate supervisor. (Docket Entry No. 17-1, Han-kins Affidavit at ¶ 10). To increase productivity and profits, Ferguson considered restructuring the Mid America region to improve system its reliability and productivity. (Docket Entry No. 17-3, Ferguson Deposition at 55:6-56:8). Ferguson toured facilities and met with technicians and management. (Docket Entry No. 26-7, [847]*847Ferguson Affidavit at ¶ 5). Ferguson decided that the Mid America Region should be divided into five areas and in June 2012, submitted a restructuring plan for five new areas in the Mid America Region with an additional operations manager. Id. On July 30, 2012, Ferguson emailed personnel about the restructuring of the Mid America Region, but operations manager positions were not eliminated. (Docket Entry No. 17-1, Hankins Affidavit, at ¶¶ 24, 29).

Citing performance problems, Ferguson believed that new leadership was necessary in three areas. (Docket Entry No. 17-3; Ferguson Deposition at 28, 29, 56, 57). According to Plaintiff, Ferguson met with Plaintiff and Ethridge in West Monroe, Louisiana on July 30, 2012, and was scheduled to meet Carr in Celestine, Indiana on August 2, 2012. (Docket Entry No. 26-5, Ferguson Deposition, Exhibit 2 at 28). Ferguson sent an email dated July 30, 2012 to the Mid America Region leadership .team announcing that “[a]s a result of the restructuring,” Hankins, Ethridge, and Carr would 'no longer hold their positions as Onshore Area Operations Managers. (Docket Entry No. 17-2, Ferguson Affidavit, Exhibit A).3 TransCanada advised Hankins, Carr, and Ethridge that their terminations were unrelated to their individual status, but rather were the results of the reorganization. (Docket Entry No. 17-4, Carr Affidavit ¶ 26; Docket Entry No. 17-5, Sept. Ethridge.Affidavit ¶ 24; Docket Entry No. 17-1, Hankins Affidavit ¶ 22; Docket Entry No. 17-10, Holland Deposition at 180-181; Docket Entry No. 17-3, Ferguson Deposition at 137, Ex.2). TransCanada has a five (5) step progressive discipline policy that applies to supervisors requiring: (1) a verbal conversation regarding performance with the employee; (2) a documented verbal; (3) a written warning concerning poor performance; (4) suspension; and ultimately (5) termination. (Docket Entry No. 17-10, Holland Deposition at 31, 137-139). Ms. Holland did not know whether any conversation about the performance of Hankins, Carr, or Eth-ridge occurred. Id. at 171.

Ferguson determined that Plaintiff should be discharged for performance problems as an operations manager (Docket Entry No. 17-3, Ferguson Deposition at 57, 99, 104). On July 30, 2012, Ferguson told Plaintiff “there is no role to offer you in the new organization,” and terminated him as an Onshore Area Operations Manager effective immediately as part of the reorganization. (Docket Entry No. 17-1, Hankins Affidavit ¶ 22; Docket Entry No. 17-3, Ferguson Deposition at 21-22, 137). Plaintiff asserts that Ferguson followed a script provided by Ms. Holland when he terminated Plaintiff. (Docket Entry No. 17-1, Ferguson Deposition at 22-23; Exhibit 2). The script did not mention Plaintiffs termination as based upon performance. Id. Holland was unaware of any document reflecting that Plaintiffs performance over his twenty-three (23) year career was less than satisfactory. (Docket Entry No. 17-10, Holland Deposition at 135).

On July 30, 2012, Holland provided Plaintiff a severance package based upon a standardized formula and benefits under TransCanada’s severance program. (Docket Entry No. 26-1, Hankins Affidavit ¶ 22; Docket Entry No. 26-5, Ferguson Deposition at 21-22, 139; Docket Entry No. 17-10, Holland Deposition at 85). Plaintiff signed a severance agreement with approximately two (2) years worth of salary. (Docket Entry No. 26-1, Hankins [848]*848Affidavit at ¶22). On August 1, 2012, Plaintiff received a lump severance payment of $254,808, two years’ salary on top of his 2012 incentive compensation. Id. at Exhibit A.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
22 F. Supp. 3d 844, 2014 U.S. Dist. LEXIS 71444, 123 Fair Empl. Prac. Cas. (BNA) 411, 2014 WL 2159006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hankins-v-transcanada-usa-services-inc-tnmd-2014.