John Dibiase v. Smithkline Beecham Corporation

48 F.3d 719, 1995 WL 62075
CourtCourt of Appeals for the Third Circuit
DecidedMarch 21, 1995
Docket94-1530
StatusPublished
Cited by116 cases

This text of 48 F.3d 719 (John Dibiase v. Smithkline Beecham Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Dibiase v. Smithkline Beecham Corporation, 48 F.3d 719, 1995 WL 62075 (3d Cir. 1995).

Opinions

OPINION OF THE COURT

GREENBERG, Circuit Judge.

This is an appeal from a district court’s judgment predicated on its opinion holding that an employer violates the Age Discrimination in Employment Act (“ADEA”) by offering to all employees terminated as a result of a reduction-in-force (RIF) enhanced severance benefits in return for a general release of all claims, including ADEA claims, against the employer. We conclude that such a practice does not violate the ADEA, and therefore we will reverse the judgment of the district eourt. Because there is no basis for further proceedings in this case, we will remand the matter to the district eourt with instructions to enter judgment for the defendant.

[722]*722I. INTRODUCTION, FACTUAL BACKGROUND, AND PROCEDURAL HISTORY

The germane facts are not disputed.1 In 1990, the employer, defendant SmithKline Beecham Corporation (SmithKline), a Philadelphia-based pharmaceutical company, consolidated four computer data centers it operated throughout Pennsylvania and in Tennessee into a single center at King of Prussia, Pennsylvania. Prior to the consolidation, SmithKline employed plaintiff John DiBiase as a first-shift supervisor of computer operators at its Philadelphia data center. With the consolidation, he moved to King of Prussia, where six supervisors remained employed, working two per shift, with each pair overseeing three to five computer operators. Between late 1991 and early 1992, Smith-Kline decided to reduce the staff of this division, and it assessed the concomitant consequences. Specifically, the data center’s personnel manager “prepared an ‘adverse impact analysis’ examining the gender, race, and age of the shift supervisors to determine if any adverse impact would result from the planned reduction in staff.” DiBiase, 847 F.Supp. at 343. On February 1,1992, Smith-Kline decided to lay off DiBiase and one other shift supervisor and it informed DiBi-ase of this decision the next day. At that time, he was 51 years old.

SmithKline offered employees terminated in a RIF a separation benefit plan, which provided a lump sum payment based on the employee’s length of service, as well as continued health and dental benefits. Specifically, the basic plan provided 12 months salary and three months continued benefits. Additionally, the plan offered enhanced benefits to employees willing to sign a general release of all claims against SmithKline. Terminated employees who signed the release were entitled to receive 15 months salary and six months continued health and dental coverage. The release is in large part the subject of this appeal, and it stated in pertinent part:

In consideration of the monies and other consideration to be received by me under the SmithKline Beecham Separation Program, I hereby irrevocably and unconditionally release, waive and forever discharge SmithKline Beecham Corporation, its affiliates, parents, successors, predecessors, subsidiaries, assigns, directors, officers, employees, representatives, agents, and attorneys ... from any and all claims, agreements, causes of action, demands, or liabilities of any nature whatsoever ... arising, occurring or existing at any time prior to the signing of this General Release, whether known or unknown.

General release § 1 at app. 98. The release provided that employees who sign it waive

[a]ny and all claims arising under federal, state, or local constitutions, laws, rules or regulations or common law prohibiting employment discrimination based upon age, race, color, sex, religion, handicap or disability, national origin or any other protected category or characteristic, including but not limited to any and all claims arising under the Age Discrimination in Employment Act of 1967, as amended, the Civil Rights Act of 1964, the Civil Rights Acts of 1866 or 1871, the National Labor Relations Act and/or under any other federal, state or local human rights, civil rights, or employment discrimination statute, rule or regulation.

Release § 1 ¶ 2 at app. 98. Prefatory language to the release cautioned employees that “YOU SHOULD THOROUGHLY REVIEW AND UNDERSTAND THE TERMS, CONDITIONS AND EFFECT OF THE SEPARATION PROGRAM AND OF THIS GENERAL RELEASE. THEREFORE, PLEASE CONSIDER IT FOR AT LEAST TWENTY-ONE (21) DAYS BEFORE SIGNING IT. YOU ARE ADVISED TO CONSULT WITH AN ATTORNEY BEFORE YOU SIGN THIS GENERAL RELEASE.” Release at app. 98. Under the terms of the release, employees were given seven calendar days after signing to revoke their signature. Release at app. 99.

DiBiase declined to sign the release. Instead, on April 29, 1992, he wrote a letter to William Mossett, SmithKline’s personnel director, contending that SmithKline’s policy [723]*723violated the ADEA. The letter reads in pertinent part:

So there can be no possible misunderstanding I am stating my position as follows.
* * * * * #
As stated in my grievance I have reason to believe that the company violated federal and state age discrimination laws in terminating me. I am declining the enhanced separation benefit package because I do not wish to give up my rights under these discrimination laws. I believe that the company’s policy of requiring persons over forty to release age discrimination claims against the company in order to secure enhanced separation benefits violates these age discrimination laws since persons under forty may elect to receive enhanced separation benefits determined by the same formula that applies to persons over forty without releasing potential age discrimination claims.

Letter from DiBiase to Mossett of April 29, 1992, at app. 106, 107. Because DiBiase did not sign the release, SmithKline refused to give him the enhanced benefits. See Letter from Tyrone Barber, SmithKline’s Personnel Manager, to DiBiase of May 4, 1992, at app. 108. Still, DiBiase received the benefits due him under SmithKline’s basic plan. Id.

On July 2, 1992, DiBiase filed an affidavit and charge with the Equal Employment Opportunity Commission (EEOC) alleging both that SmithKline terminated his employment because of his age, and that SmithKline’s separation plan violated the ADEA because it treated older workers differently than younger workers by requiring them to release ADEA claims. DiBiase EEOC aff. at app. 109-110. On March 81, 1993, the EEOC determined that “there is not reasonable cause to believe that there has been a violation of the statute under which the charge has been filed.” EEOC Determination at app. 67-68.

On June 14,1993, DiBiase filed a complaint against SmithKline in the United States District Court for the Eastern District of Pennsylvania. His amended complaint contained two counts. Count 1 asserted that Smith-Kline fired him because of his age, in violation of the ADEA. Complaint ¶¶ 15-19 at app. 55-56. Count 2 alleged that Smith-Kline’s “separation benefit plan violates ADEA because it discriminates against [him] and its other employees forty or older by having higher requirements for them to qualify for the additional separation benefits than apply to its employees under forty.” Complaint ¶ 29 at app. 58. DiBiase also asserted that SmithKline’s actions underlying both counts were willful and that he was entitled to punitive and double damages. Complaint ¶¶ 19, 31 at app. 56, 59. On August 2, 1993, SmithKline moved to dismiss count 2 of the amended complaint, pursuant to Fed.R.Civ.P.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rudolph Karlo v. Pittsburgh Glass Works LLC
849 F.3d 61 (Third Circuit, 2017)
Syed Hassan v. City of New York
804 F.3d 277 (Third Circuit, 2015)
Gerner v. County of Chesterfield, Va.
674 F.3d 264 (Fourth Circuit, 2012)
Mitchell v. MG INDUSTRIES, INC.
822 F. Supp. 2d 490 (E.D. Pennsylvania, 2011)
Jones v. Southcentral Employment Corp.
488 F. Supp. 2d 475 (M.D. Pennsylvania, 2007)
Seasonwein v. First Montauk Securities Corp.
189 F. App'x 106 (Third Circuit, 2006)
Acree v. Tyson Bearing Co Inc
128 F. App'x 419 (Sixth Circuit, 2005)
Carr v. Borough of Elizabeth
121 F. App'x 459 (Third Circuit, 2005)
Davis v. Precoat Metals, a Division of Sequa Corp.
328 F. Supp. 2d 847 (N.D. Illinois, 2004)
Krane v. Capital One Services, Inc.
314 F. Supp. 2d 589 (E.D. Virginia, 2004)
Texas Parks & Wildlife Department v. Dearing
150 S.W.3d 452 (Court of Appeals of Texas, 2004)
Smith v. City of Jackson MS
351 F.3d 183 (Fifth Circuit, 2003)
Doyle v. U.S. Secretary of Labor
285 F.3d 243 (Third Circuit, 2002)
Wanda L. Adams v. Florida Power Corporation
255 F.3d 1322 (Eleventh Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
48 F.3d 719, 1995 WL 62075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-dibiase-v-smithkline-beecham-corporation-ca3-1995.