Hare v. Denver Merch Mart

CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 2, 2007
Docket06-1270
StatusUnpublished

This text of Hare v. Denver Merch Mart (Hare v. Denver Merch Mart) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hare v. Denver Merch Mart, (10th Cir. 2007).

Opinion

FILED United States Court of Appeals Tenth Circuit

UNITED STATES CO URT O F APPEALS November 2, 2007 Elisabeth A. Shumaker TENTH CIRCUIT Clerk of Court

DA RRELL R. HA RE,

Plaintiff-Appellant, No. 06-1270 v. District of Colorado DEN VER M ERCH AN DISE M AR T, (D.C. No. 04-CV-02416-PSF-M EH ) INC., DEN VER M ERCH ANDISE M ART EM PLOYERS, INC., and AM ERICA N REALTY INVESTO RS,

Defendants-Appellees.

OR D ER AND JUDGM ENT *

Before M U RPH Y, BROR BY, and M cCO NNELL, Circuit Judges.

Plaintiff-Appellant Darrell Hare was employed as the general manager of

the Denver M erchandise M art, Inc. (“the M art”) for nearly thirty years. Beginning

in 2001, his relationship with higher management began to break down. He was

terminated from his position as general manager on December 29, 2003, at the age

of 64. He brought this suit under the Age Discrimination in Employment Act

* This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. The court generally disfavors the citation of orders and judgments; nevertheless, an order and judgment may be cited under the terms and conditions of 10th Cir. R. 36.3. (“ADEA”) and Colorado common law , alleging that his termination was the result

of illegal age discrimination and that he was discharged in violation of public

policy. Although the defendants provided substantial evidence that M r. Hare was

legitimately terminated for business reasons, that is not the question for this Court

on summary judgment. Employing the analytical structure of M cDonnell Douglas

v. Green, 411 U.S. 792, 802 (1973), as we must, we conclude that M r. Hare has

pointed to sufficient inconsistencies in the employer’s explanation for his

termination, that the case must go to a jury. W e therefore reverse the district

court’s grant of summary judgment on the A DEA claim, while affirming summary

judgment of the wrongful discharge claim.

I. Background

The Denver M erchandise M art is a trade show venue that provides

temporary space for events as well as permanent showrooms for the display of

wholesale merchandise. It is a subsidiary of A merican Realty Investors (“ARI”),

headquartered in D allas, Texas. M r. Hare was the general manager of the M art

until his termination on December 29, 2003. As general manager, M r. Hare

oversaw daily operations at the M art and paid employee wages and bonuses.

In 2001, ARI’s Asset M anager, John Cook, investigated the executive

bonus plan in place at the M art and concluded that it produced excessive

compensation for some company officials, including M r. Hare. M r. Cook found

that although M r. Hare’s base salary ranged between $155,000 to $210,000 per

-2- year, M r. Hare’s total annual compensation including bonuses and other payments

was w ell over $300,000. He reported these findings to Gene Phillips, advisor to

the trust that is the controlling shareholder of ARI. ARI decided to implement a

revised bonus plan for 2002. In December 2001, M r. Cook informed Roger Klein,

the M art’s Controller, of the change and told him that bonus payments should not

be released without prior authorization. In spite of this directive, M r. Hare

issued, though he did not release, bonus checks in April 2002 for amounts that

would have been due under the prior plan. M r. Hare informed M r. Cook by letter,

with a legal memorandum attached to support his position, that he believed the

bonus payments were earned and vested and therefore required to be paid under

Colorado law. After considering the legal memorandum, M r. Cook directed first

quarter bonuses to be paid to all employees except M r. Hare and M r. Klein. M r.

Hare nonetheless released bonus checks to himself and M r. Klein contrary to M r.

Cook’s directive. M r. Cook did not immediately respond, but rather made clear

in a letter dated December 2, 2002 that executive bonuses would be eliminated as

of January 2003 and a new bonus program put in place.

On December 3, 2003, M r. Hare and M r. Klein attended a meeting in Dallas

with M r. Phillips, M r. Cook, and Karl Blaha to discuss the M art’s operations, the

budget, and the new bonus program for 2003. At the meeting, M r. Phillips

informed M r. Hare that there would be changes to the management agreement

between ARI and the M art, and M r. Cook presented the proposed bonus plan for

-3- 2003. M r. Hare was visibly upset by the discussion. M r. Phillips, himself 69

years old, then asked M r. Hare, “How old are you[?] 65, 66 years old[?]” App.

163. M r. Hare replied, “No.” Id. M r. Phillips asked, “W ell, how old are you?” to

which M r. Hare responded that he was 63, and M r. Phillips asked “How long do

you expect to continue to work?” Id. M r. Hare replied that he didn’t know, and

that he hadn’t thought about retiring because his daughter was in college and he

enjoyed working. M r. Phillips then commented that he would like M r. Hare to

assist in finding a successor to fill his position as general manager, “someone

younger to teach.” Id. Shortly thereafter M r. Hare and M r. Klein abruptly

walked out on the meeting.

A few days later Oscar Cashwell, a top-level liaison to M r. Phillips, called

M r. Hare and expressed his concern that M r. Hare had left the D ecember 3

meeting angrily. M r. Hare’s notes of the phone call record that M r. Cashwell

started the conversation by noting, “[y]ou are starting to get old like I am,” and

suggested that M r. Hare enter a consulting agreement with the M art while M r.

Hare picked a replacement and trained him. Id. These comments by M r. Phillips

and the follow-up phone call by M r. Cashwell were the only age-related remarks

made by ARI’s management to M r. H are.

In January 2003, M r. Klein resigned from his position as Controller of the

M art and M r. Hare resigned his corporate positions as President, Officer and

Director of D enver M erchandise M art, Inc., Denver M erchandise M art Employers,

-4- Inc., and Valley Corporation. 1 M r. Cook and M r. Phillips testified that they

believed that M r. H are would soon also resign his position as general manager.

App. 267, 324. As a result, M r. Phillips directed the head of ARI’s human

resources department to search for a replacement. Believing that the M art might

soon be left without a general manager, M r. Cook began to take a more active role

in management of the M art.

In July 2003, Lisa Fogg joined the M art’s management team to replace M r.

Klein. As the M art’s new Controller, M s. Fogg investigated the M art’s

accounting and reported to M r. Cook that M r. Hare had taken payroll advances

and made vacation payouts to himself that may have violated the M art’s employee

policies. She also reported that many of the M art’s employees were intimidated

by M r. Hare and that M r. Hare arrived for work late and left early. M r. Cook

testified that although he had until mid-2003 considered M r. Hare to be a very

good manager, he learned from M s. Fogg and his own investigation that in fact

M r. Hare “did not exhibit positive management skills, and he did not take an

active role in managing the M art . . . the actual manager of the M art operation for

years had been Roger K lein. . . .” App. 159.

During the fall of 2003, M r.

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