Hardy v. General Electric Co.

270 A.D.2d 700, 705 N.Y.S.2d 97, 2000 N.Y. App. Div. LEXIS 2921
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 16, 2000
StatusPublished
Cited by16 cases

This text of 270 A.D.2d 700 (Hardy v. General Electric Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hardy v. General Electric Co., 270 A.D.2d 700, 705 N.Y.S.2d 97, 2000 N.Y. App. Div. LEXIS 2921 (N.Y. Ct. App. 2000).

Opinion

—Spain, J.

Appeal from an order of the Supreme Court (Kramer, J.), entered August 2, 1999 in Schenectady County, which partially denied defendant’s motion for summary judgment dismissing the complaint.

In August 1993 plaintiff, a 58-year-old engineer working in a research laboratory, was discharged from his employment with defendant’s Corporate Research and Development Center [701]*701(hereinafter CR&D) located in the Town of Niskayuna, Schenectady County. In May 1995 plaintiff commenced this action alleging that his termination was based on age discrimination in violation of New York’s Human Rights Law (Executive Law § 296) and the Age Discrimination in Employment Act of 1967 (29 USC § 621 et seq. [hereinafter the ADEA]). Plaintiffs complaint also included two separate contract causes of action. Defendant moved for summary judgment seeking dismissal of the entire complaint on grounds that plaintiff failed to establish a prima facie case and was terminated for legitimate economic reasons. Supreme Court granted the motion as to plaintiffs contract claims; however, the court denied defendant’s motion as to plaintiffs age discrimination claim concluding that plaintiff raised issues of fact which precluded summary judgment. On defendant’s appeal we modify, finding that defendant is also entitled to summary judgment dismissing plaintiffs age discrimination cause of action.

The Human Rights Law and the ADEA prohibit employers from discharging an employee based upon his or her age (Executive Law § 296 [1] [a]; 29 USC § 621 et seq.). New York courts and Federal courts have developed the same standards for analyzing age discrimination cases (see, Tyler v Bethlehem Steel Corp., 958 F2d 1176, 1180, cert denied 506 US 826). To recover under his age discrimination claim, plaintiff must first establish by a preponderance of the evidence a prima facie case of discrimination by demonstrating that (1) he is a member of a protected class, (2) he was actively or constructively discharged, (3) he was qualified to hold the position, and (4) the discharge occurred under circumstances giving rise to an inference of age discrimination (see, Ferrante v American Lung Assn., 90 NY2d 623, 629).

Plaintiffs initial burden “is not a significant hurdle” (Hutson v McDonnell Douglas Corp., 63 F3d 771, 779; see, Ashker v International Bus. Machs. Corp., 168 AD2d 724, 725-726). Once plaintiff has made a prima facie case of age discrimination, the burden shifts to the employer to set forth admissible, legitimate and nondiscriminatory reasons for the termination (see, Ferrante v American Lung Assn., supra, at 629; Kipper v Doron Precision Sys., 194 AD2d 855, 856). Upon our review of the evidence submitted by the parties we conclude that, assuming plaintiff established a prima facie case (see, Ashker v International Bus. Machs. Corp., supra, at 725), defendant has met its burden of demonstrating an age-neutral explanation for its employment decision (see, Ferrante v American Lung Assn., supra, at 629; Kipper v Doron Precision Sys., supra, at 856; see [702]*702also, Texas Dept. of Community Affairs v Burdine, 450 US 248, 254; McDonnell Douglas Corp. v Green, 411 US 792).

Here, defendant submitted evidence that its workforce reduction was justified for economic reasons and that plaintiffs termination in particular was based on his relative worth to his employer which constituted legitimate and nondiscriminatory reasons for an employee’s termination (see, Kipper v Doron Precision Sys., supra, at 856; Manning v Norton Co., 189 AD2d 971, 972). In early 1993 senior management at CR&D determined that, because of a projected decrease in revenue, it was necessary to reduce operating costs by reducing its salaried workforce of about 1,365 employees by 10 percent, to be accomplished through voluntary attrition including retirement and resignations, as well as by involuntary layoffs. Management determined which units or programs within CR&D could employ fewer individuals based on expected revenues, and directed mid-level managers to assess each employee’s contribution to defendant using a matrix rating system and to select the employees for termination. Terminations were based on those who ranked lowest on the matrix.

Within each particular program targeted for reductions, the matrix system individually evaluated employees, taking into consideration their short and long-term importance to defendant by ranking their performance, technical skills, contribution to defendant and leadership adaptability. The performance factor reflected each employee’s most recent annual rating for salary planning purposes which was based upon the employee’s performance over an extended period of time. Overall 66 salaried employees were involuntarily terminated at CR&D, 18 of which were in the research unit to which plaintiff was assigned.

Notably, plaintiff had been ranked very low in the most recent annual rating.

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Bluebook (online)
270 A.D.2d 700, 705 N.Y.S.2d 97, 2000 N.Y. App. Div. LEXIS 2921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardy-v-general-electric-co-nyappdiv-2000.