Kulling v. Grinders for Industry, Inc.

115 F. Supp. 2d 828, 2000 WL 1520949
CourtDistrict Court, E.D. Michigan
DecidedOctober 1, 2000
Docket99-74339
StatusPublished
Cited by16 cases

This text of 115 F. Supp. 2d 828 (Kulling v. Grinders for Industry, Inc.) 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
Kulling v. Grinders for Industry, Inc., 115 F. Supp. 2d 828, 2000 WL 1520949 (E.D. Mich. 2000).

Opinion

*830 OPINION AND ORDER REGARDING DEFENDANTS’MOTION FOR SUMMARY JUDGMENT

ROSEN, District Judge.

I. INTRODUCTION

Plaintiffs Laverne Kulling, Richard A. Beal, and William A. Scheib brought suit in this Court on September 3, 1999, alleging that Plaintiffs Beal and Scheib and Plaintiff Kulling’s late husband, Carl G. Kulling, were unlawfully discharged from their employment with Defendant Toyoda Machinery U.S.A. Corporation (“Toyoda”) and its wholly-owned subsidiary, Defendant Grinders For Industry, Inc. (“GFI”), in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. Plaintiff Kulling also has asserted a derivative claim for loss of consortium, as well as a derivative claim as personal representative of the estate of Carl Kulling, seeking additional monetary damages under Michigan’s wrongful death statute, Mich.Comp.Laws § 600.2922, for Mr. Kulling’s suicide just over two months after Defendants terminated his employment.

By motion filed on May 19, 2000, Defendants now seek an - award of summary judgment in their favor on all of Plaintiffs’ claims. 1 In support of this motion, Defendants argue (i) that the challenged employment actions were part of a reduction-in-force (“RIF”) undertaken for purely economic reasons, and were not motivated by improper considerations of age; and (ii) that Plaintiffs have failed to establish a sufficient causal connection between Carl Kulling’s discharge and his subsequent suicide to warrant an award of wrongful death damages. Plaintiffs responded to this motion on June 13, 2000, and Defendants filed a reply brief in further support of their motion on- June 28, 2000. 2 Finally, on August 4, 2000, the parties filed supplemental briefs addressing various legal issues surrounding Plaintiff Kulling’s request for wrongful death damages.

On July 27, 2000, the Court heard oral argument on Defendants’ motion. Having reviewed the briefs and supporting materials submitted by the parties, and having considered the arguments of counsel at the July 27 hearing, the Court is now prepared to rule on this motion. This Opinion and Order sets forth the Court’s ruling.

II. FACTUAL AND PROCEDURAL BACKGROUND

A. The Parties

Defendant GFI is a wholly-owned subsidiary of Defendant Toyoda, which purchased GFI in 1987. GFI is part of the Grinding Machine Division (“GMD”) of Toyoda, and is in the business of re-manufacturing and rebuilding used grinders. Plaintiffs Beal and Scheib and the late husband of Plaintiff Kulling, Carl Kulling, all were employed by GFI prior to its acquisition by Toyoda, and they continued as employees at Defendants’ facility in Wixom, Michigan following this acquisition. 3

Each Plaintiff held a supervisory middle-management position at the time he was discharged on November 7, 1997. Carl Kulling began working for GFI on November 9, 1972 as an Electric Panel Builder, and held the position of Shipping and Receiving Supervisor at the time of his discharge. Plaintiff Beal was first employed by GFI in December of 1972, and had the title of Purchasing Manager in *831 November of 1997. Plaintiff Scheib began working for GFI in January of 1985, and was employed as Manager of Mechanical Engineering at the time of his discharge. All three Plaintiffs were over the age of 50 when they were discharged — Carl Kulling was 60, Richard Beal was 53, and William Scheib was 60.

B. The Circumstances Surrounding Plaintiffs’ Discharges

According to Defendants, Plaintiffs were terminated pursuant to a reduction-in-force (“RIF”) carried out by Defendants in late 1997 and early 1998. Toyoda’s president, Howard Michael, testified at his deposition that Defendants’ GMD had sustained losses the previous few years, and that he elected to reduce this division’s workforce by twenty employees in order to avoid shutting down the division altogether. Michael instructed Gary Blanchard, the vice president and general manager of GMD, to implement this RIF. Blanchard, in turn, consulted with GFI’s senior director of operations, Paul Lefief, and GFI’s director of engineering, Eddie McClymont, regarding the selection of the 20 employees to discharge.

Paul Lefief recommended that the supervisory positions held by Carl Nulling and Plaintiff Beal be eliminated. He testified that, in making these decisions, he “looked at the position that they played in the structure, if I had another manager that could do their job, I looked at how many people reported to them.” (Defendants’ Motion, Ex. 3, Lefief Dep. at 17.) In both eases, Lefief testified that he had identified one or more existing employees who could assume the functions previously performed by Hulling and Beal. Lefief denied that age, years of service, salary, or proximity to retirement played any role in his recommendations. (Id at 17-18.)

For his part, Eddie McClymont suggested to Gary Blanchard that Plaintiff Scheib’s position be eliminated. In his affidavit, McClymont states that he determined that the Engineering Department could afford to eliminate a management position, and that Scheib was the “logical choice because he was the only one at management level in the mechanical engineering section.” (Defendants’ Motion, Ex. 4, McClymont Aff. at ¶ 6.) McClymont further states that he assumed Scheib’s management responsibilities, and that two other employees were assigned to handle Scheib’s remaining duties in addition to their existing job functions.

The first set of terminations occurred on November 7, 1997, and included all three Plaintiffs. Each Plaintiff executed a “Severance Agreement and General Release,” (Defendants’ Motion, Ex. 5), and each received severance pay. 4 In all, five salaried employees were discharged on November 7,1997 as part of Defendants’ RIF plan for the GMD, and two more salaried employees were discharged in January of 1998 pursuant to this plan. 5 Each of these seven discharged employees was over 50 years of age, leaving 19 remaining salaried employees over the age of 50. In contrast, the RIF did not affect any of Defendants’ 43 salaried employees under the age of 50.

The parties dispute Defendants’ stated economic basis for implementing a RIF. As noted earlier, Toyoda’s president, Howard Michael, testified that Defendants’ *832 GMD had sustained losses for a number of years prior to and including 1997, that orders were down, and that the types of orders coming in were unprofitable. Plaintiffs, however, point to Michael’s testimony that his bonuses were tied to the profitability of GFI, and that he received bonuses of $60,000 to $75,000 in January and July of 1998.

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Bluebook (online)
115 F. Supp. 2d 828, 2000 WL 1520949, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kulling-v-grinders-for-industry-inc-mied-2000.