LaCroix v. Detroit Edison Co.

964 F. Supp. 1144, 1996 U.S. Dist. LEXIS 10997, 1996 WL 827738
CourtDistrict Court, E.D. Michigan
DecidedJune 27, 1996
Docket2:95-cv-72568
StatusPublished
Cited by3 cases

This text of 964 F. Supp. 1144 (LaCroix v. Detroit Edison 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
LaCroix v. Detroit Edison Co., 964 F. Supp. 1144, 1996 U.S. Dist. LEXIS 10997, 1996 WL 827738 (E.D. Mich. 1996).

Opinion

OPINION AND ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

ROSEN, District Judge.

I. INTRODUCTION

This is an age discrimination action in whieh the Plaintiff alleges that her former employer, the Detroit Edison Company (“Edison”), discriminated against her because of her age in violation of the federal Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 626, et seq. The case is presently before the Court on Defendant’s Motion for Summary Judgment. Plaintiff has responded to Defendant’s Motion to whieh response, Defendant has replied. Having reviewed and considered the parties’ briefs and supporting documents, and having heard the oral arguments of counsel at the hearing held on April 25, 1996, the Court is now prepared to rule of Defendant’s Motion. This Opinion and Order sets forth that ruling.

II. PERTINENT FACTS

Plaintiff Mary LaCroix is 49 years old. She is a former clerical employee of Detroit Edison, who worked for Edison for nearly 30 years. In 1975, Plaintiff transferred into Detroit Edison’s Information Systems Organization. 1 She worked in this department for the ensuing 17 years. From approximately 1977 until January 1992, Ms. LaCroix was employed as a secretary to the director of the ISO department. In January 1992, she was assigned to another position within the ISO department, the position of “Telecommunications Dispatcher”.

In March 1992, the ISO department underwent a corporate reorganization and downsizing. In the reorganization, jobs were redesigned and new jobs were created. Employees of the former ISO department were evaluated and considered for jobs within the new ISO organization through a formalized process.

As a result of the ISO reorganization, some then existing ISO employees were not selected for jobs in the reorganized department. Those who were not selected for jobs within ISO were placed into a “Corporate Skills Reserve Pool,” and, through a Staffing Transition Program (“STP”) were considered for vacancies elsewhere within Detroit Edison. Employees were able to remain in the Corporate Skills Reserve Pool for six months. If no job match were found for an employee in the pool within six months, he/ she was offered a choice of two alternatives: the employee could agree to accept a Voluntary Separation Offer (VSO) which provided voluntary resignation and a general release of claims in exchange for substantial severance benefits. Alternatively, the employee could elect to receive a lesser separation payment whieh did not require the execution of a general release of claims.

Plaintiff Mary LaCroix was one of the ISO employees not selected for continued employment within the reorganized department. Thus, in May 1992, she was placed into the General Corporate Skills Reserve Pool. Efforts to find her permanent employment elsewhere within Edison were successful and in late July 1992, she was chosen for a clerical job in the company’s Energy Marketing & Distribution Organization. In accordance with the provisions of Staffing Transition *1146 Program, Plaintiff was paid the same salary she was paid in her previous ISO position. (The STP process provides that employees do not incur any loss of pay if the new job they are placed in has a different pay grade or level within four pay grades.)

Apparently, Ms. LaCroix did not like her job in the Energy Marketing and Distribution department because, five months after beginning in that department, in January 1993, she formally requested that an exception be made to the reorganization rules to permit her to return to the Corporate Skills Reserve Pool, with the understanding that she would have 60 days in the pool to obtain another position within the company, and if no other position were found at the end of 60 days, she would be she would be eligible for a voluntary buy-out. Her request was granted and she returned to Skills Pool. On January 22, 1993, she was given a copy of the VSO plan to review and consider. [See Defendant’s Ex. 4, p. 4.]

No other position was found for Ms. LaCroix. Consequently, on February 19, 1993, she was formally offered, and formally accepted a voluntary buyout (VSO). On March 19, 1993, she voluntarily terminated her employment and obtained a severance allowance of $34,684.00 (which was the equivalent of one year’s salary), in addition to health and life insurance benefits, outplacement services, and tuition reimbursement for college/technical courses taken within two years of her termination. 2

In exchange for these severance benefits, Ms. LaCroix executed a “Full Waiver and Release of Claims” which provided, in pertinent part:

In return for the monies and benefits received by you under this Voluntary Separation Offer of The Separation Pay Plan, YOU RELEASE AND FOREVER WAIVE ANY AND ALL CURRENT AND PAST CLAIMS, UP TO THE DATE OF SIGNING THIS AGREEMENT, AGAINST THE COMPANY AND ITS AGENTS WHICH ARISE OUT OF OR RELATE TO YOUR EMPLOYMENT AND THE TERMINATION OF YOUR EMPLOYMENT. The claims you are releasing include, hut are not limited to, ... claims of age ... discrimination, any rights and claims arising under the Age Discrimination in Employment Act of 1967 and The Older Workers Beneñt Protection Act....
* * * * * *
You also acknowledge that your resignation is totally voluntary, fully understanding that had you chosen not to voluntarily resign and sign this Agreement, that your employment with the Company would continue, subject to all the terms and conditions that apply to Company employees and as provided in the Staffing Transition Program.
By signing this agreement, you also acknowledge that you have been provided with a written explanation of the group of employees covered by the Plan, the Plan’s eligibility requirements and the time limits applicable to the Plan. In addition, you acknowledge that you have been given a list of the job titles and ages of covered employees in your organizational unit eligible to participate in the Plan, as well as a list of the job titles and ages of covered employees in your organizational unit not eligible to participate in the Plan.
You further acknowledge that you fully understand the terms of this Voluntary Separation Offer Agreement, that you have had forty-five (45) days to consider it, to seek the advice of your attorney and/or financial adviser; and you are signing it freely and voluntarily. You also understand that you have seven (7) days from the date you present this signed Agreement to your Human Resource Consultant to revoke it and that this Release and Agreement shall not become effective or enforceable until the seven (7)-day revocation period has expired.

[Defendant’s Ex. 4].

Almost 22 months after her termination of employment (and 28 months after being ini *1147 tially placed in the Skills Reserve Pool), on January 6, 1995, Ms.

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Bluebook (online)
964 F. Supp. 1144, 1996 U.S. Dist. LEXIS 10997, 1996 WL 827738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lacroix-v-detroit-edison-co-mied-1996.