Israel v. Sonic-Montgomery FLM, Inc.

231 F. Supp. 2d 1156, 2002 U.S. Dist. LEXIS 22355, 91 Fair Empl. Prac. Cas. (BNA) 259, 2002 WL 31628204
CourtDistrict Court, M.D. Alabama
DecidedNovember 13, 2002
DocketCIV.A. 01T1358N
StatusPublished
Cited by7 cases

This text of 231 F. Supp. 2d 1156 (Israel v. Sonic-Montgomery FLM, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Israel v. Sonic-Montgomery FLM, Inc., 231 F. Supp. 2d 1156, 2002 U.S. Dist. LEXIS 22355, 91 Fair Empl. Prac. Cas. (BNA) 259, 2002 WL 31628204 (M.D. Ala. 2002).

Opinion

ORDER

MYRON H. THOMPSON, District Judge.

Plaintiff Larry Israel filed this lawsuit, charging that defendant Sonic-Montgomery FLM, Inc., d/b/a Friendly Ford Lincoln Mercury, fired him on the basis of his age in violation of the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S.C.A. §§ 621-634, and the Alabama Age Discrimination in Employment Act of 1997 (AADEA), 1975 Ala.Code §§ 25-1-20 through 25-1-29. Jurisdiction of Israel’s ADEA claim is proper under 42 U.S.C.A. §§ 1331 (federal question) and 1343 (civil rights) and 29 U.S.C.A. § 626 (ADEA); jurisdiction over his supplemental state-law AADEA claim is proper under 28 U.S.C.A. § 1367. This lawsuit is currently before the court on Sonic’s motion for summary judgment. For the reasons that follow, the motion is denied.

I. SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). Under Rule 56, the party seeking summary judgment must first inform the court of the basis for the *1158 motion, and the burden then shifts to the non-moving party to demonstrate why summary judgment would not be proper. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986); see also Fitzpatrick v. City of Atlanta, 2 F.3d 1112, 1115-17 (11th Cir.1993) (discussing burden-shifting under Rule 56). The non-moving party must affirmatively set forth specific facts showing a genuine issue for trial and may not rest upon the mere allegations or denials of the pleadings. Fed.R.Civ.P. 56(e).

The court’s role at the summary-judgment stage is not to weigh the evidence or to determine the truth of the matter, but rather to determine only whether a genuine issue exists for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). In doing so, the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable inferences in that party’s favor. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

II. FACTUAL BACKGROUND

From 1980 until December 1,1995, Israel worked for Blount Strange Automotive Group at their Cobb Pontiac-Cadillac facility as a Finance and Insurance (“F & I”) Manager. The F & I Department generates income after cars are sold at the dealership, by financing the deals and by selling “after market” products, such as vehicle service contracts and accident and health insurance.

On December 1, 1995, Israel was transferred to Friendly Ford, also owned by Blount Strange, and became the Lead F & I Manager there. At Friendly Ford, Israel retained his previous duties, and also became responsible for supervising two other F & I employees , and an administrative assistant. Israel also performed additional administrative tasks, and became involved in all transactions that were having trouble getting financed. Because Friendly Ford did more sales volume than did the Cobb dealership, this transfer was viewed as a promotion by Israel. He reported directly to Tim Nix, the general manager at Friendly Ford.

The main figure used to evaluate the performance of the F & I Department at Friendly Ford is the ‘per vehicle retail’ or, as it is known in the trade, the ‘PVR.’ The PVR is calculated by taking the. total monthly income generated by the F & I Department and dividing it by the number of cars sold in that month.

On July 27, 1999, pursuant to Israel’s semi-annual review, Nix wrote a memo to Israel complaining about his performance. In this memo, Nix told Israel that the PVR at Friendly Ford was unsatisfactory, and that it was off by $219,200 for the first six months of the year. Additionally, although Nix acknowledged that external circumstances explained some of this decline, he stated that in comparison to other dealers in Friendly Ford’s peer group, the average PVR at Friendly Ford for new cars was over $100 less ($210 compared to $312), and for used cars approximately $70 less ($372 compared to $439). Nix concluded the memo by stating that Friendly Ford could not lose this amount of money, and that the members of the F & I group must be motivated to “at least average performance” or replacements would occur. After this July 1999 letter, Nix and Israel discussed Friendly Ford’s PVR at least once a month during manager meetings. The PVR of the F & I Department remained a cause of concern for Nix, and he continually talked to Israel about improving the figure.

In December 1999, Sonic began discussions with Blount Strange to buy the Friendly Ford dealership. At this time, *1159 the National F & I Director of Sonic visited Friendly Ford and met with the members of the F & I Department. The National F & I Director met with Israel and another F & I employee together. At the end of the meeting, Israel mentioned to the National F & I Director that he had been doing F & I for over 19 years. The director responded to this by stating, in essence, “I think yon might be too old to change.” This comment was heard by both Israel and the other F & I employee, although neither responded to it.

On March 1, 2000, Sonic bought Friendly Ford and continued to operate it in the same manner as had Blount Strange. At this time, however, the Regional F & I Director stated that Friendly Ford’s F & I Department could be generating as much as $800 PVR and was performing poorly. Pursuant to this conversation, Nix told Israel and Lisa Adams, another F & I employee, that, if they did not increase their PVRs, Nix would be required to fire them. Additionally, Nix told the Regional Director to begin looking for replacements in anticipation of restaffing the department. About a week after this meeting, Nix wrote a memo to two Sonic executives and memorialized the conversation Nix had had with Israel about increasing Friendly Ford’s numbers and the threat of replacement.

On March 30, 2000, Sonic decided to terminate Nix. Paul Lezon, the Regional Vice President of Sonic, and two other members of Sonic’s management, both of whom had received the memo Nix had written regarding the F & I Department, came to Friendly Ford to terminate Nix.

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231 F. Supp. 2d 1156, 2002 U.S. Dist. LEXIS 22355, 91 Fair Empl. Prac. Cas. (BNA) 259, 2002 WL 31628204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/israel-v-sonic-montgomery-flm-inc-almd-2002.