Head v. Detroit Stoker Company

CourtDistrict Court, E.D. Michigan
DecidedFebruary 28, 2023
Docket3:21-cv-12634
StatusUnknown

This text of Head v. Detroit Stoker Company (Head v. Detroit Stoker Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Head v. Detroit Stoker Company, (E.D. Mich. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ______________________________________________________________________

NOREEN HEAD,

Plaintiff,

v. Case No. 21-cv-12634

DETROIT STOKER COMPANY,

Defendant. ___________________________________/

OPINION AND ORDER DENYING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT AND GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

This is an employment discrimination case, wherein Plaintiff chiefly alleges retaliatory termination due to her use of medical leave while ill with Covid-19 and related complications. (ECF No. 1.) Pending before the court are cross motions for summary judgment. Plaintiff moves for partial summary judgment as to her claims for retaliation and interference under the Family and Medical Leave Act (“FMLA”), 29 U.S.C. § 2601 et seq., arguing that a genuine issue of material fact exists with respect to her remaining claim under Michigan’s Workers’ Disability Compensation Act (“WDCA”), MICH. COMP. LAWS § 418.301 et seq.1 (ECF No. 24.) Defendant conversely moves for summary judgment with respect to all of Plaintiff’s claims. (ECF No. 25.) The motions have been fully briefed. A hearing is unnecessary. See E.D. Mich. LR 7.1(f)(2). For reasons explained below, the court will deny Plaintiff’s motion and grant Defendant’s.

1 Plaintiff withdrew her other two claims under Michigan’s Covid-19 Employment Rights Act, Mich. Comp. Laws § 419.401 et seq., and Michigan’s Persons with Disabilities Civil Rights Act, Mich. Comp. Laws § 37.1101 et seq., in her response to Defendant’s summary judgment motion. (ECF No. 30, PageID.1211.) I. BACKGROUND2 A. Plaintiff’s General Employment History Plaintiff’s employment with Defendant began in 2002. (ECF No. 24, PageID.562; ECF No. 25, PageID.749.) Throughout her nearly twenty-year tenure with the company,

she held various positions within the accounting department, her final post being an “Accounts Receivable Billing Coordinator.” (Id. at PageID.563; id.) In 2019, the accounting department consisted of six positions, including Plaintiff’s. (ECF No. 25, PageID.750–51.) The other roles were as follows: Vice President of Finance, held by Matthew Holody; Manager of General Accounting, held by Debbie Conner; Accounts Payable Manager, held by Glenda Thomas; Cost Accountant, held by Bob Ramirez; and a vacant Account Generalist post. (Id.) Plaintiff reported to Mr. Holody and Ms. Conner. (ECF No. 30-33, PageID.1421–22.) All employees in the accounting department, except Plaintiff, were salaried professionals with college degrees.3 (Id.) Though not exhaustive in her view, Plaintiff’s principal responsibilities included

the following: (1) processing payroll; (2) conducting payroll-related accounting functions, such as journal entries and balancing general ledger accounts; (3) communicating with customers regarding past-due invoices; (4) reconciling the payroll monthly bank

2 Unless otherwise noted, the material facts presented in this section are uncontested.

3 Plaintiff first admits that her coworkers possessed college degrees (ECF No. 30, PageID.1219) while later contesting the same as inadmissible hearsay because Defendant did not provide the court with the resumes of every accounting department employee (ECF No. 30, PageID.1225–26.) Plaintiff then proffers an exhibit (ECF No. 30-3, PageID.1273) containing information that two of her co-workers possess college degrees. The court is not convinced that Defendant has tried to introduce inadmissible hearsay evidence. Moreover, in light of Plaintiff’s admissions regarding the degree issue, Plaintiff’s objections are frivolous. statements; (5) preparing for year-end closing and cash flow analysis, as needed; (6) running various payroll reports; and (7) uploading payments to the company’s bank accounts. (ECF No. 25, PageID.750; ECF No. 30, PageID.1219.) She also helped perform Defendant’s monthly cost accounting, filed invoices for the Accounts Payable

Manager, handled wire transfers, identified chargebacks to vendors, reviewed service time reports, charged customer credit lines, and monitored the calculation of sales tax in Defendant’s various divisions. (ECF No. 30, PageID.1226.) Overall, Plaintiff performed her work to Defendant’s satisfaction. (ECF No. 25-54, PageID.885.) Nonetheless, on June 14, 2021, while on FMLA leave, Plaintiff was terminated with an effective date of June 25, 2021. (ECF No. 24, PageID.568; ECF No. 25, PageID.760.) The parties dispute whether Plaintiff’s removal was done in violation of the FMLA and WDCA or as part of a company-wide, economic-based reduction in force. B. New Company Leadership In November of 2019, Defendant hired a new president, Richard Sroda. (ECF

No. 25, PageID.751; ECF No. 30, PageID.1220.) In that capacity, Mr. Sroda determined Defendant would need to reduce its labor costs to remain profitable. (ECF No. 25-6, PageID.892.) To that end, Mr. Sroda began a staffing analysis, identifying various positions for elimination throughout the company. (Id.) He first did away with certain

4 Plaintiff complains that the declarations submitted on Defendant’s behalf by Kristy Schuyler (ECF No. 25-5) and Richard Sroda (ECF Nos. 25-6, 31-3) contradict their deposition testimonies; despite selectively relying on parts, she seeks for them to be stricken. (ECF No. 30, PageID.1224, 1227.) Having reviewed the declarations and the provided portions of the deposition testimonies, the court disagrees with Plaintiff’s assessment. While they expand upon the deposition testimony, the declarations are not so broad as to imply that the depositions themselves contain significant omissions nor are they contradictory. See Aerel, S.R.L. v. PCC Airfoils, L.L.C., 448 F.3d 899, 906–08 (6th Cir. 2006). Accordingly, the court declines to strike them. vacant positions, including the Account Generalist post, resulting in an 11% decrease to Defendant’s overall workforce. (Id.; ECF No. 30, PageID.1220.) Defendant also offered early retirement packages to union employees per relevant collective bargaining agreements. (ECF No. 25-6, PageID.892.) To further reduce staffing levels and labor

costs, Mr. Sroda attests to next reviewing the work of various departments, evaluating employee skill sets, and selecting for elimination those roles with job duties that could be easily transferred to other employees. (Id.) Mr. Sroda’s review included the accounting department, which he found to be overstaffed. (ECF No. 25-6, PageID.892.) By spring of 2020, through discussions with Mr. Holody and Defendant’s Director of Human Resources, Kristy Schuyler, Mr. Sroda resolved to eliminate Plaintiff’s position because it was hourly and comprised of primarily clerical duties absorbable by other accounting department employees. (ECF No. 25-6; PageID.893.) Mr. Sroda further determined that Plaintiff lacked the requisite skills, experience, and qualifications to perform the job duties of any other accounting

department position. (Id.) Plaintiff disputes this, contending that she was qualified for the position of Accounts Payable Manager. (ECF No. 30, PageID.1226–27; ECF No. 31-3.) When pressed regarding what prompted the decision to reduce Defendant’s workforce, Mr. Sroda specifically testified as follows: Q Okay. Rick, I just want to ask you: What led to you wanting to reduce your force? Was it a financial decision for Detroit Stoker Company? A When I -- so the short answer is yes.

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Head v. Detroit Stoker Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/head-v-detroit-stoker-company-mied-2023.