Ioele v. Alden Press, Inc.

145 A.D.2d 29, 536 N.Y.S.2d 1000, 1989 N.Y. App. Div. LEXIS 339, 53 Fair Empl. Prac. Cas. (BNA) 723
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 19, 1989
StatusPublished
Cited by57 cases

This text of 145 A.D.2d 29 (Ioele v. Alden Press, Inc.) 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
Ioele v. Alden Press, Inc., 145 A.D.2d 29, 536 N.Y.S.2d 1000, 1989 N.Y. App. Div. LEXIS 339, 53 Fair Empl. Prac. Cas. (BNA) 723 (N.Y. Ct. App. 1989).

Opinion

OPINION OF THE COURT

Sullivan, J.

Defendants, Alden Press, Inc. and Meehan-Tooker Co., Inc., sister companies in the commercial printing business and wholly owned subsidiaries of John Blair & Company, and four officers of the two corporate defendants, cross-appeal from so much of an order as granted plaintiff leave to renew and, upon renewal, denied summary judgment as to the first and second causes of action alleging age discrimination, and reinstated the same.

Plaintiff was employed as a commissioned sales representative of the Chicago-based Alden from 1965 until December 1982, when he was transferred to Meehan-Tooker, which has its offices and printing facilities in East Rutherford, New Jersey. Nominally a sales representative, plaintiff acted more as a broker, in that he was authorized to assign sales to any of the sister companies. A third sister company, American Printers and Lithographers (AP&L), is not a party to this lawsuit. Plaintiff’s principal clients throughout his relationship with Alden and until his resignation in January 1983, at the age of 55, were Reader’s Digest and RCA Records.

[31]*31In his age discrimination claim plaintiff alleges that the corporate defendants undertook a series of acts calculated to force him to resign. He argues that defendants’ claim that their actions were motivated by legitimate business concerns is pretextual. More specifically, plaintiff claims that by late 1982 Alden and Meehan-Tooker had priced him out of the market. For example, Reader’s Digest, his biggest customer, was confronted by what, he contends, was, in the sharply competitive world of commercial printing, an admittedly unprecedented 40% price increase. As a result, his commission base, on which he depended for all his income, had been cut by roughly 60%. The price increases, plaintiff further complains, had been preceded by a series of actions, such as the assignment of additional personnel to service his accounts and the practice of "farming out” or subcontracting his jobs to other printers, which were calculated to, and did, in fact, impair his relations with his principal customers. Prior to his resignation, plaintiff alleges, shortly after he had tried diplomatically to resolve his problems with Alden, his efforts, after 17 years of service as one of Alden’s consistently most successful salespersons, were rewarded by a summary announcement of his transfer to Meehan-Tooker, the only such transfer involving salespersons ever to occur in Alden’s history.

Defendants do not deny some of the incidents about which plaintiff complains, but insist their actions reflect the exercise of sound business judgment. They point out that in the late 1970’s, plaintiff began to direct Reader’s Digest brochure printing work to Meehan-Tooker because of its lower prices, the proximity of its New Jersey facility to the Reader’s Digest plant in Rutland, Vermont, and its payment of a 5% commission for brochures, rather than Alden’s 2% or 3%. Indeed, by 1980 only one half of plaintiff’s Reader’s Digest business went to Alden. The balance went to Meehan-Tooker and AP&L, which paid him a 10% commission. Moreover, by early 1982, Alden’s once-monthly Reader’s Digest orders for magazine inserts had dwindled to a handful a year. As of November 1982, only one fifth of plaintiff’s Reader’s Digest business was being printed at Alden.

Against this background and in the face of an increasingly competitive environment in the printing industry, the relationship between plaintiff and Alden apparently began to deteriorate. Plaintiff complained about Alden’s "farmouts”, allegedly without notice, to its competitor, Brookshore Lithographers, Inc., plaintiff’s present employer and the rival whose [32]*32"strong sales effort” had diverted Reader’s Digest magazine insert jobs from Alden. Yet, the record shows that Alden had to subcontract the Reader’s Digest work at the last minute as a result of unforeseen difficulties on an earlier job. Plaintiff, however, lost none of his $1,736 commission as a result of the decision to subcontract the job, although Alden lost $14,000 from the unanticipated farmout. Plaintiff now argues that he was singled out in this incident. At his deposition, however, he acknowledged that Alden treated its other sales representatives in similar fashion. Although the record bears out that occasional farmouts without advance notice were indeed Alden’s practice, plaintiff apparently contends that he and his clients deserved better treatment.

A February 11, 1982 visit by Ms. Galyon, a newly hired sales representative at Meehan-Tooker, to one of the buyers at Reader’s Digest triggered another complaint. Apparently. Ms. Galyon told the buyer that she would be selling for Meehan-Tooker in the New York area. The buyer did not make any purchase from Ms. Galyon, but instead "advised [her] that there would be a conflict if she represented Meehan-Tooker.” When plaintiff complained about the visit, Ms. Galyon’s supervisor at Meehan-Tooker was notified by a written memorandum, with a copy to plaintiff, that Galyon was not to approach Reader’s Digest "without [plaintiff’s] approval.” In fact, except for the Galyon incident, no Alden or Meehan-Tooker sales representative, other than plaintiff, ever solicited Reader’s Digest, which, to this day, is one of plaintiff’s principal accounts.

In August 1982, having found itself printing the product at a loss, Alden raised its price to Reader’s Digest on magazine inserte for the first time in several years. Plaintiff claims that the increase was in retaliation for his February 1982 complaint about Ms. Galyon and caused him to lose potential commissions. But, as its actual cost sheets document, Alden did sustain losses or, at best, earned only minimal profits.

By the end of 1982 plaintiff was one of Alden’s only commercial sales representatives with a wholly east coast clientele and, although his brochure and insert work had declined, Alden’s catalogue printing business was thriving. Deciding that it no longer made sense for plaintiff to report to Alden in Chicago while his customers, virtually all of whom were in New York, were increasingly being serviced by Meehan-Tooker in New Jersey, Alden informed plaintiff that it had [33]*33decided to transfer him to Meehan-Tooker’s sales force, effective January 10, 1983.

On January 21, 1983, Brookshore, having been contacted through an employment agency, offered plaintiff a position as a sales representative which he accepted, tendering his resignation four days later. Plaintiff’s letter of resignation recited his disagreements with Alden’s and Meehan-Tooker’s business decisions, including such items as the Galyon visit to Reader’s Digest, the price increases and farmouts, and his transfer to Meehan-Tooker, but did not mention any mistreatment on account of his age.

Yet, the only effect of the transfer to Meehan-Tooker, which plaintiff contends would have been "intolerable”, was that he would report to the vice-president at Meehan-Tooker, rather than Alden. He already lived in New York City and Philadelphia. He remained a commissioned sales representative for all three Blair plants, servicing Reader’s Digest and his other accounts, and his commission income would be the same. He would continue to represent AP&L, and to participate in Meehan-Tooker’s medical plan, which was identical to Alden’s.

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Bluebook (online)
145 A.D.2d 29, 536 N.Y.S.2d 1000, 1989 N.Y. App. Div. LEXIS 339, 53 Fair Empl. Prac. Cas. (BNA) 723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ioele-v-alden-press-inc-nyappdiv-1989.