Koster v. Trans World Airlines, Inc.

181 F.3d 24, 52 Fed. R. Serv. 683, 1999 U.S. App. LEXIS 13681, 76 Empl. Prac. Dec. (CCH) 46,079, 80 Fair Empl. Prac. Cas. (BNA) 343, 1999 WL 396023
CourtCourt of Appeals for the First Circuit
DecidedJune 21, 1999
Docket98-1757
StatusPublished
Cited by92 cases

This text of 181 F.3d 24 (Koster v. Trans World Airlines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koster v. Trans World Airlines, Inc., 181 F.3d 24, 52 Fed. R. Serv. 683, 1999 U.S. App. LEXIS 13681, 76 Empl. Prac. Dec. (CCH) 46,079, 80 Fair Empl. Prac. Cas. (BNA) 343, 1999 WL 396023 (1st Cir. 1999).

Opinion

JOHN R. GIBSON, Senior Circuit Judge.

Trans World Airlines furloughed forty-seven year old Richard Koster as part of a 1994 work force reduction. Koster brought suit, invoking diversity jurisdiction, and a jury determined that TWA had engaged in illegal age discrimination under Massachusetts law, and awarded Koster $1,000,000 in damages. The district court doubled the damages pursuant to a Massachusetts statute and awarded prejudgment interest and attorneys’ fees. TWA argues the district court erred in these latter rulings and (1) by denying its motion for a directed verdict and for judgment as a *29 matter of law; (2) in the admission of evidence; and (8) by refusing a requested supplemental jury instruction. We affirm the jury’s verdict and award of attorneys’ fees, but reverse the award of damages and remand the case for further proceedings on the issue of damages.

TWA hired Roster in 1965, and he initially worked at John F. Kennedy Airport in New York. He was reassigned to Logan Airport in Boston in 1977, and employed in various supervisory positions until his furlough in August 1994. Roster’s last position was Supervisor, Ground Operations. He was responsible for Logan’s garage, mail, air freight, dining, commissary and store areas. He earned $40,000 per year. TWA consistently promoted Roster and also asked him to take on special assignments when problems arose. Roster’s performance evaluations consistently described him as an excellent employee.

In response to TWA’s financial difficulties over the last decade, TWA has instituted pay cuts, reductions in force, and restructurings.

In August 1994, TWA’s senior management asked Gordon Humpherys, the station manager for Logan Airport, to implement a reduction in force. Humpherys was responsible for TWA’s entire station operations at Logan, and Roster reported directly to him. Specifically, TWA management told Humpherys to reduce six supervisor positions to four.

At. trial, Humpherys explained that the reduction in force would require the remaining four supervisors to do the work formerly done by six. Thus, his “foremost concern” was to retain those supervisors “who would provide the most productivity” and be best able to run the operation with a minimum of supervision and direction. Humpherys ultimately elected to keep Kathy Hobbs (age 44), Glenn Hutmire (age 56), Henry Sledz (age 49), and Robinanne Stancavage (age 25). He selected Roster (age 49) and Robert Spencer (age 48) for furlough.

Under TWA’s Policies and Procedures, a management employee selected for furlough remains eligible for recall for a five-year period. The employee may also elect to take a position equivalent to the last position he or she held before entering management. Roster was entitled to take a position as a transportation agent, which would have paid $26,000 per year. He, elected, however, to take the furlough, hoping he would be recalled. Roster unsuccessfully applied for several openings at TWA, but in the spring of 1995, Roster elected early retirement in order to obtain his retirement benefits.

Following his decision to retire, Roster opened up a Minuteman printing franchise. At the time of trial, Roster had yet to take a salary. Roster estimated his back-pay damages at $159,175, and total losses for future pay at $120,819. After the furlough, Roster suffered from anxiety and had trouble sleeping at night. He suffered from heartburn and had to take antacid pills on a regular basis.

Roster filed suit against TWA alleging age discrimination in violation of the Massachusetts Fair Employment Practices Act, Mass. Gen. Laws ch. 151B, and breach of contract. The district court dismissed the contract claim at the close of Roster’s evidence, and submitted thé age claim to the jury. The jury returned a verdict for Roster, awarding $1,000,000. The court awarded $155,807.50 in attorneys’ fees, prejudgment interest on all but the front-pay portion of the damage award, and an additional $1,000,000 pursuant to Mass. Gen. Laws ch. 151B, .§ 9, finding that TWA acted with knowledge or reason to know that it violated the provisions of Mass. Gen. Laws ch. 151B, § 4. TWA appeals.

I.

TWA first argues that the district court erred by denying its motion for judgment as a matter of law because Roster failed to: (1) establish a prima facie case of age discrimination; and (2)show that TWA’s *30 articulated non-discriminatory reasons for his furlough were pretextual.

We review de novo the trial court’s decision to deny a motion for judgment as a matter of law. We view the evidence in the light most favorable to Koster, drawing all reasonable inferences in, his favor. See Sanchez v. Puerto Rico Oil Co., 37 F.3d 712, 716 (1st Cir.1994). We “may reverse the denial of such a motion only if reasonable persons could not have reached the conclusion that the jury embraced.” Id.

In discrimination cases arising under Chapter 151B of the Massachusetts law, courts have traditionally applied the three-stage order of proof articulated in McDonnell Douglas Corporation v. Green, 411 U.S. 792, 802-05, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). 1 See Lehman v. Prudential Ins. Co., 74 F.3d 323, 327-28 (1st Cir.1996); Blare v. Husky Injection Molding Sys., 419 Mass. 437, 646 N.E.2d 111, 114-15 (1995). Under that standard, a plaintiff who was terminated as part of a reduction in force can generally establish a prima face case of discrimination by showing that (1) he was at least forty years old; (2) he met the employer’s legitimate job performance expectations; (3) he experienced adverse employment action; and (4) the employer did not treat age neutrally, or that younger persons were retained in the same position. See LeBlanc v. Great American Ins. Co., 6 F.3d 836, 842 (1st Cir.1993), cert. denied, 511 U.S. 1018, 114 S.Ct. 1398, 128 L.Ed.2d 72 (1994).

If the employee establishes a prima facie case, there is a presumption that the employer engaged in impermissible age discrimination. See Kelley v. Airborne Freight Corp., 140 F.3d 335, 348 (1st Cir.), cert. denied, — U.S. -, 119 S.Ct. 341, 142 L.Ed.2d 281 (1998). To rebut this presumption, the employer must articulate a legitimate non-discriminatory reason for the employee’s termination. See id. This entails only a burden of production; the burden of persuasion of discrimination remains with the employee. See id. Once the employer has proffered a legitimate, non-discriminatory reason for its adverse employment decision, the presumption generated by the employee’s prima facie case disappears, and the employee then has the burden to prove that the reason advanced by the employer for the adverse employment action constituted a mere pretext for unlawful age discrimination. See id.

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181 F.3d 24, 52 Fed. R. Serv. 683, 1999 U.S. App. LEXIS 13681, 76 Empl. Prac. Dec. (CCH) 46,079, 80 Fair Empl. Prac. Cas. (BNA) 343, 1999 WL 396023, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koster-v-trans-world-airlines-inc-ca1-1999.