King v. Enterprise Rent-A-Car Co.

231 F.R.D. 255, 2004 WL 3563268
CourtDistrict Court, E.D. Michigan
DecidedDecember 2, 2004
DocketNo. 03-71778
StatusPublished
Cited by5 cases

This text of 231 F.R.D. 255 (King v. Enterprise Rent-A-Car Co.) 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
King v. Enterprise Rent-A-Car Co., 231 F.R.D. 255, 2004 WL 3563268 (E.D. Mich. 2004).

Opinion

ORDER

ROBERTS, District Judge.

1. INTRODUCTION

This matter is before the Court on four motions: 1) Plaintiffs’ Motion for Class Certification; 2) Plaintiffs Motion to Strike Exhibit P Attached to Defendants’ Opposition to Plaintiffs’ Motion for Class Certification; 3) Defendants’ Motion to Strike Dr. Van Win-gen’s Final Report and to Exclude his testimony; and, 4) Defendants’ Motion to Strike Dr. Van Wingen’s Reply Report. A hearing was held on October 22,2004.

The Court: DENIES Plaintiffs Motion for Class Certification; DENIES Plaintiffs Motion to Strike Exhibit P Attached to Defendants’ Opposition to Plaintiffs’ Motion for Class Certification; GRANTS Defendants’ Motion to Strike Dr. Van Wingen’s Final Report and to Exclude his testimony; and, deems MOOT Defendants’ Motion to Strike Dr. Van Wingen’s Reply Report.

II. BACKGROUND

This action is brought by fourteen African-Americans who are or were employed with Enterprise Leasing Company of Detroit (“Enterprise-Detroit”).1 Plaintiffs filed this action against Enterprise-Detroit and its parent corporation, Enterprise Rent>-A-Car Company (“ERAC”),2 on behalf of themselves and other similarly situated individu[257]*257als.3 Plaintiffs allege that both Enterprise-Detroit and ERAC discriminated against Af-riean-American employees based on their race, in violation of 42 U.S.C. § 1981 and the Michigan Elliotb-Larsen Civil Rights Act (“ELCRA”). Specifically, Plaintiffs allege that Defendants engaged in a pattern and practice of discrimination with respect to promotions and terminations.4

Enterprise-Detroit is a wholly-owned subsidiary of ERAC. It is also known as “Group 20” and has two main divisions, Daily Rental and Non-Daily Rental. The Daily Rental division generally handles renting automobiles to individual and corporate customers and is subdivided into four geographic regions — D, M, W, and X.5 The Non-Daily Rental division is subdivided into three functional regions-Region R for car sales (retail sales of automobiles); Region F for fleet services (leasing fleets of cars to corporations); and, Region 9 for certain administrative duties. The parties focus primarily upon Region W in the Daily Rental division.

The organizational structure within the Daily Rental regions is as follows: Each region is subdivided into three to six areas. Each regional area includes a number of Daily Rental branches, and is supervised by an Area Manager. Area Managers are responsible for the business performance of the branches they supervise, and generally are in charge of marketing, hiring, promotions, and employee training. Most branch offices are run by a Branch Rental Manager and sometimes an Assistant Branch Manager.

The positions at Enterprise-Detroit are assigned by levels. In Daily Rental,6 Level 1 includes Assistant Branch Managers, Management Assistants, and Management Trainees. The Management Trainee position is entry level, Management Assistants are mid-level, and Assistant Branch Managers hold the highest position within Level 1. Level 2 is the Branch Manager position. Level 3 in-eludes Area Managers, group-level managers, and some department managers. Level 4 includes all officer positions within Enterprise-Detroit.7

Per Defendants, although there are some group-wide policies and decision-making tools, managers at the regional, area, and branch levels have discretion to make promotion decisions according to the criteria set by their region. The parties agree that the relevant time frame is from May 1, 1999 through May 31, 2003. Until February or March of 2003, the regional managers for Enterprise-Detroit independently established the promotion procedures within their respective regions. For both the Daily Rental and Non-Daily Rental divisions each region used a variety of objective and subjective criteria to decide promotions. For Daily Rental, the objective criteria varied slightly from region to region, and could include a point system (i.e., “Power Points”),8 measurement of profitability, customer satisfaction, and overall employee retention. The nature and weight of subjective criteria also varied from region to region, but generally included leadership ability and the capacity to help subordinates perform well. For Non-Daily Rental, the objective criteria were not the same as the Daily Rental criteria because they were based on the specific functions of each job. Subjectively, managers considered things such as an employee’s particular strengths, educational background, work experience, leadership skills, success in particu[258]*258lar tasks, and overall performance in various areas.

In February or March 2003, Enterprise-Detroit established guidelines for basic objective and subjective performance expectations for Levels 1 through 3 Daily Rental employees. This included objective and subjective qualifiers for promotions from Management Assistant to Assistant Branch Manager. However, Defendants contend that each region was to implement the guidelines according to the business needs in their respective regions. The Regional Vice Presidents for the Daily Rental regions each state in their affidavits that they were allowed to deviate from the guidelines under certain (unspecified) circumstances, because of the individual nature of the regions and each region’s unique business environment. Defendants argue that these guidelines were only in effect for approximately two months of the relevant period, none of the Plaintiffs claims to have been impacted by these guidelines, and there is no statistical analysis by Plaintiffs’ expert regarding them. Defendants also point out that the criteria for making promotion decisions depends upon which position the employee holds. For example, entry level Management Trainees in the Daily Rental regions have different job functions than entry level employees in Non-Daily Rental regions. The entry level positions in Non-Daily Rental include: human resource generalist; loss control and accounting; car sales; recruiters; vehicle acquisition coordinators; and, vehicle repair coordinators.

In Daily Rental, promotion decisions within Level 1, from Management Trainee to Management Assistant, are made by the Area Manager. One requirement for advancement that is the subject of Plaintiffs’ claims is that the trainee participate in a Management Qualification Interview (“MQI”). The MQI is an oral examination administered by the Area Manager to assess the employee’s Daily Rental skills, knowledge, and experience. The substance of these interviews varies between regions, and each region sets certain objective criteria for even allowing an employee to take the MQI. In Region W, from May 1999 to October 2000, in order to take the MQI employees needed 110 Power Points, an average daily insurance rate of $26.00, five corporate leads in the previous month, and a passing grade on the Rental Skills test. From October 2000 through February or March 2003, Region W utilized a performance matrix that purportedly measured both individual and branch objective performance. To take the MQI, Management Trainees had to be in the top 50% in their region according to the matrix. Only Region W used the matrix and it was discontinued after the Enterprise-Detroit February or March 2003 guidelines took effect.

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231 F.R.D. 255, 2004 WL 3563268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-enterprise-rent-a-car-co-mied-2004.