James Pierson v. Quad/Graphics Printing Corp.

749 F.3d 530, 2014 WL 1499880, 2014 U.S. App. LEXIS 7277, 97 Empl. Prac. Dec. (CCH) 45,058, 122 Fair Empl. Prac. Cas. (BNA) 802
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 18, 2014
Docket13-5784
StatusPublished
Cited by74 cases

This text of 749 F.3d 530 (James Pierson v. Quad/Graphics Printing Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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James Pierson v. Quad/Graphics Printing Corp., 749 F.3d 530, 2014 WL 1499880, 2014 U.S. App. LEXIS 7277, 97 Empl. Prac. Dec. (CCH) 45,058, 122 Fair Empl. Prac. Cas. (BNA) 802 (6th Cir. 2014).

Opinion

OPINION

KAREN NELSON MOORE, Circuit Judge.

James Pierson, a Plant Facilities Manager at the Dickson, Tennessee plant of QG, LLC (“QG”), was terminated after the CEO announced a comprehensive compa *532 ny-wide cost-cutting initiative. After he was fired, his job duties were assumed by a substantially younger employee engaged in energy-procurement and capital-projects management functions who had been based at another facility. Pierson argues that QG discriminated against him on the basis of age when it replaced him with a younger individual who was less qualified to perform his job functions. QG, on the other hand, asserts that Pierson’s position was eliminated as part of a company-wide reduction in force. Because we find evidence in the record to establish a genuine factual dispute regarding whether Pier-son’s position was eliminated or whether he was replaced by a younger individual, we REVERSE the district court’s grant of summary judgment in favor of QG and REMAND for further proceedings consistent with this opinion.

I. BACKGROUND

QG is a printing company with approximately fifty printing facilities and 23,000 to 24,000 full-time employees world-wide. R. 51-4 (Muehlbach Dep. at 99-101) (Page ID # 1037-39). In 2010, QG acquired World Color, another printing company, which had previously done business under the name Quebecor World. As part of this acquisition, QG assumed control over a printing facility in Dickson, Tennessee. James Pierson was the Plant Facilities Manager at the Dickson plant, and QG retained him in that role after the acquisition. Pierson had thirty-nine years of experience in the printing industry, including extensive experience with the “gravure” printing process used at Dickson. Over the nearly seven years that Pierson worked at the Dickson plant, first for World Color and then for QG, he never received a negative performance evaluation. Nor was he ever disciplined, reprimanded, or warned about performance deficiencies. Pierson’s direct supervisor was Carl Lentz, QG’s Southeast Regional Facilities Manager. Lentz reported directly to Joe Muehlbach, the Executive Director of Facilities and Environmental Affairs.

On August 11, 2011, Joel Quadracci, QG’s President and CEO, notified all employees that the company was “shifting to ‘Fortress Quad’ mode.” R. 51-3 (Quadrac-ci Email at 2) (Page ID # 917). Although Quadracci assured employees “that Quad/Graphics remains financially strong,” he described Fortress Quad as “a call for all hands on deck to batten down the hatches and stay focused on the key drivers of our business success.” Id. at 1-2 (Page ID # 916-17). In the email, he instructed all employees to “[l]ook for excess cost or waste in your job and in your department as a whole.” Id. at 2 (Page ID # 917). On August 18, 2011, Quadracci, in private communications, also instructed Muehlbach and other executives to “review every position within the company [and] make a determination on whether those positions were truly needed.” R. 51-4 (Muehlbach Dep. at 28-29) (Page ID # 966-67). Muehlbach initially identified Pierson and David Hakenewerth, the Plant Facilities Manager at the Jonesboro, Arkansas plant, as potential targets for termination. He reasoned that both men were managers at plants that would be “going through significant downsizing or potential closure [and g]iven the size of the facility, it was felt that their responsibilities could be assumed by others without adding labor.” Id. at 63 (Page ID # 1001). QG was considering reducing operations at the Dickson plant, even though the facility provided some services that were not available at other plants and could not be shut down entirely. Id. at 70 (Page ID # 1008). At the time, only Muehlbach and other senior-level executives knew that the Dickson plant might be downsized; neither Lentz nor any human resources employees *533 were aware that QG was considering a reduction plan. Muehlbach maintains that Pierson’s “performance had no bearing on” Muehlbach’s decision to discharge him. Id. at 157 (Page ID # 1095).

To assist him in selecting positions that could be reduced or eliminated, Muehlbach turned to Lentz and the other Regional Facilities Managers. At a meeting on August 19, 2011, Muehlbach instructed his regional managers to identify positions under their supervision that could be eliminated without hardship to the company. Lentz immediately identified Pierson and Hakenewerth as employees whose positions could be reduced. With regard to the Dickson plant, Lentz felt that facilities management functions could be assumed by David DePriest, an Energy Manager working out of office space in Franklin, Tennessee. After the meeting, Lentz relayed his decision to Christi Dees, the Corporate Human Resources Manager. Dees, in turn, informed Muehlbach that Lentz had selected Pierson and Hakene-werth for discharge. Muehlbach approved the termination decision, and Dees advised Lentz that he could proceed with Pierson’s termination the following week. R. 51-1 (Muehlbach/Dees Email) (Page ID # 415).

On August 22, 2011, Lentz informed Sandra Snyder, the Human Resources Manager for the Dickson plant, that he would be visiting the plant the following day to discharge Pierson. He explained that his decision rested in part on Pier-son’s failure to be a “team player.” R. 51-1 (Lentz Dep. at 32-33) (Page ID # 299-300). In her notes of the conversation, Snyder recorded the phrases “Team Player,” “Replacement,” and “Removed from,” but she did not indicate any logical relationship between the phrases. R. 51-1 (Snyder Notes) (Page ID #390). Lentz also told Dees and Jerry Ulickey, the Dickson Plant Director, that Pierson was being terminated because of interpersonal problems. Lentz had formed an unfavorable impression of Pierson’s ability to work in a team because Bill Gray, a primary customer of Pierson’s services, reported concerns relating to Pierson’s responsiveness and communication skills. R. 51-1 (Lentz Dep. at 33) (Page ID # 300).

On August 23, 2011, Pierson was terminated. He was sixty-two years old. Lentz read from a “script” provided by human resources that explained that Pierson was being terminated as part of a reduction in force. Id. at 78-80 (Page ID #345-47). Lentz did not mention that the termination was a result of poor teamwork or any other performance issue. Lentz then gave Pierson a letter concerning his eligibility for release benefits, which compared his position to that of David DePriest and explained that the discharge was “based on job function, business need, performance and skill set.” R. 51-4 (Release Agreement Ltr.) (Page ID # 1398). In preparation for the termination meeting, Lentz prepared “Criteria for Selection” forms for Pierson and DePriest that purported to compare them for elimination. R. 51-1 (Lentz Dep. at 88-89) (Page ID # 355-56); id. (Criteria for Selection Forms) (Page ID #417-20). The forms were actually intended for situations when several people holding identical positions were to be compared for reduction. However, after Pierson’s and Hakenewerth’s 1 terminations were approved, human resources instructed Lentz to complete the forms for both Pierson and Hakenewerth, and he did so. R. 51 — 4 (Muehlbach Dep. at 196) (Page ID # 1134). Pierson received a low *534

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749 F.3d 530, 2014 WL 1499880, 2014 U.S. App. LEXIS 7277, 97 Empl. Prac. Dec. (CCH) 45,058, 122 Fair Empl. Prac. Cas. (BNA) 802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-pierson-v-quadgraphics-printing-corp-ca6-2014.