Kunzman v. Enron Corp.

902 F. Supp. 882, 1995 U.S. Dist. LEXIS 13786, 73 Fair Empl. Prac. Cas. (BNA) 803, 1995 WL 558662
CourtDistrict Court, N.D. Iowa
DecidedSeptember 13, 1995
DocketC 94-3044
StatusPublished
Cited by20 cases

This text of 902 F. Supp. 882 (Kunzman v. Enron Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kunzman v. Enron Corp., 902 F. Supp. 882, 1995 U.S. Dist. LEXIS 13786, 73 Fair Empl. Prac. Cas. (BNA) 803, 1995 WL 558662 (N.D. Iowa 1995).

Opinion

ORDER REGARDING MOTION FOR SUMMARY JUDGMENT

BENNETT, District Judge.

TABLE OF CONTENTS

I. INTRODUCTION AND BACKGROUND.889

II. FINDINGS OF FACT o

A. Uncontested Facts o 05

B. Contested Facts .. o <3*

III. STANDARDS FOR SUMMARY JUDGMENT.891

IV. ANALYSIS 893

A. ADEA Claim 893

1. Kunzman’s Age Discrimination Claim 893

a. The Analytical Framework for Claims of Age Discrimination 893

b. The Prima Facie Case Under the ADEA in a Reduction in Force Case. 895

2. Kunzman’s Prima Facie Case. 896

3. Pretext For Discrimination. 901

Age Discrimination Under Iowa Law. 902 PQ

Retaliation Claim. 903 O

1. Analytical Framework for Retaliation Claim. 903

2. Prima Facie Case. 904

3. Non-Discriminatory Reasons for Firing and Pretext 904

Contract Claim. 905 Q

V. CONCLUSION 909

*889 This lawsuit arises out of the layoff and termination of Plaintiff during a purported reduction in force by his employer in 1993. Plaintiffs complaint alleges that age was a determining factor in his termination in violation of both federal and state law. Plaintiff further asserts that he was retaliated against, in violation of both federal and state law, for filing a discrimination complaint with the Iowa Civil Rights Commission. Finally, Kunzman asserts a breach of a lifetime oral contract under Iowa law against Enron.

Defendants have moved for summary judgment on each of Plaintiff’s five claims. 1 Defendants assert that Plaintiff cannot make out a prima facie ease of age discrimination. Defendants further assert that even if Plaintiff can demonstrate a prima facie ease, they have a legitimate reason for Plaintiffs termination: a reduction in force at the place of Plaintiffs employment. In addition, Defendants contend that they did not retaliate against Plaintiff for the filing of a discrimination claim. Finally, Defendants assert that Plaintiff did not have a lifetime oral contract with them.

I.INTRODUCTION AND BACKGROUND

On May 11, 1994, Plaintiff Harvey L. Kunzman filed his petition in the Iowa District Court for Cerro Gordo County against his former employer Defendant Enron Corporation (“Enron”), alleging age discrimination, in violation of the Age Discrimination in Employment Act of 1967 (“ADEA”), 29 U.S.C. § 621 et seq., and Iowa state law, arising out of his selection for layoff and subsequent termination from Northern Natural Gas’ Ventura, Iowa, facility. 2 Kunzman further alleges that he was fired in retaliation for his filing a complaint of age discrimination in violation of the ADEA and Iowa state law. Kunzman also alleges an Iowa common law breach of an oral contract claim. On June 8, 1994, Northern Natural Gas filed a petition for removal of this case to federal court pursuant to 28 U.S.C. § 1441(b).

Enron has moved for summary judgment pursuant to Federal Rule of Civil Procedure 56(b) on all of Kunzman’s claims. First, Enron asserts that Kunzman cannot make out a prima facie case on his age discrimination claim. Specifically, Enron argues that, in this reduction in force ease, Kunzman is unable to demonstrate that age, and not some other factor, was the reason for his discharge. Second, Enron contends that it has offered a legitimate reason for Kunz-man’s termination, that it was part of a legitimate reduction in its work force, which Kunzman is unable to rebut. Third, Enron asserts that Kunzman cannot make out a prima facie case of retaliation nor can he show that Enron’s reasons for terminating him were grounded by an intent to retaliate against him. Here, Enron argues that Kunz-man was placed at risk before he filed discrimination charges and thus Kunzman is unable to demonstrate a nexus between the protected activity and a retaliatory action. Finally, Enron contends that Kunzman cannot substantiate a breach of a lifetime oral contract claim against Enron. On this point, Enron argues that the statements upon which Kunzman relies as establishing a lifetime oral contract are insufficient to create such a contract.

A hearing on Enron’s motion for summary judgment was held on September 7, 1995. At the hearing Plaintiff was represented by Lawrence Marcucci of Shearer, Templer, Pingel and Kaplan, West Des Moines, Iowa. Defendant Enron was represented by Neven J. Mulholland of Johnson, Erb, Bibb, Bice & Carlson, P.C., Fort Dodge, Iowa, and Kriste K. Sullivan and Janet L. Laehman of Enron Litigation Unit, Houston, Texas. The parties have filed thorough and extensive briefs in support of their respective positions. Counsel were exceptionally well prepared for oral argument and the arguments were both spirited and informative. This matter is now deemed fully submitted.

*890 II. FINDINGS OF FACT

A. Uncontested Facts

For the purposes of this summary judgement motion only, the court finds the following facts:

The record reveals that the following facts are undisputed. Plaintiff Harvey L. Kunz-man was employed by Defendant Enron as an Operator II in its compression plant in Ventura, Iowa. Kunzman is over the age of 40. He was bom on February 28, 1945. Enron’s Ventura facility included the compression plant and a liquid natural gas (“LNG”) storage facility. When Kunzman was hired by Enron, its layoff policy was based on seniority. In July 1992, Kunzman was informed that Enron was going to change its policy of determining or rating certain employees from a seniority/bumping system to a performance and skills based policy. In late 1992, Enron decided to automate its Ventura facility. The effect of the automation would be a reduction in the work force at Ventura. As of December 1992, thirty-six employees were required in order to operate the Ventura facility. A committee determined that after the Ventura facility was automated, only thirty employees would be required there.

In 1992, Marc Phillips was hired by Earl Berdine, the Vice-President of Operations for Northern Natural Gas Company, to perform a series of consulting sessions with Enron employees. During a March 1992 session Phillips referred to certain people as “traditionalists.”

Tom Mertz was the supervisor of the compression plant, and Byron Wood was the supervisor of the LNG facility. At the direction of their own supervisor, R.R.

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902 F. Supp. 882, 1995 U.S. Dist. LEXIS 13786, 73 Fair Empl. Prac. Cas. (BNA) 803, 1995 WL 558662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kunzman-v-enron-corp-iand-1995.