Lauderdale v. Johnston Industries, Inc.

139 F. Supp. 2d 1315, 2001 U.S. Dist. LEXIS 5993, 2001 WL 503008
CourtDistrict Court, M.D. Alabama
DecidedMay 1, 2001
DocketCIV. A. 00-T-1308-E
StatusPublished

This text of 139 F. Supp. 2d 1315 (Lauderdale v. Johnston Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lauderdale v. Johnston Industries, Inc., 139 F. Supp. 2d 1315, 2001 U.S. Dist. LEXIS 5993, 2001 WL 503008 (M.D. Ala. 2001).

Opinion

OPINION

MYRON H. THOMPSON, District Judge.

Plaintiff Harold L. Lauderdale filed this lawsuit charging defendant Johnston Industries, Inc. (JI) with terminating his employment and failing to rehire him because of his age, in violation of the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.A. §§ 621-634, frequently referred to as the ADEA. Lauder-dale also asserts state-law claims for fraud and breach of contract as well as age-discrimination claims under the Alabama Age Discrimination in Employment Act of 1997, 1976 Ala.Code §§ 26-1-20 through 25-1-29. Jurisdiction over Lauderdale’s ADEA claims is proper under 29 U.S.C.A. § 626. Jurisdiction over his state-law claims is proper under 28 U.S.C.A. § 1367 (supplemental jurisdiction).

This cause is now before the court on JTs motions for summary judgment. The motions will be granted as to Lauderdale’s ADEA claims, and his state-law claims will be dismissed without prejudice.

I. SUMMARY JUDGMENT STANDARD

Rule 56(c) of the Federal Rules of Civil Procedure provides that summary judgment is appropriate where “there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law.” Once the party seeking summary judgment has informed the court of the basis for its motion, the burden shifts to- the nonmoving party to demonstrate why summary judgment would be inappropriate. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986); see also Fitzpatrick v. City of Atlanta, 2 F.3d 1112, 1115-17 (11th Cir.1993). In making a determination, the court must view all the evidence and any factual inferences in a light most favorable to the nonmoving party. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

II. FACTUAL BACKGROUND

Harold Lauderdale, who was born in 1948, began working for the company that is now JI in 1966. Except for brief absences for military service, education, and a one-year stint with another firm, he worked for the company continuously until November 1999, when his employment was terminated. Between 1976 and 1989, Lauderdale was promoted a number of times, and when he was discharged he was the plant manager of the firm’s integrated mill, known as the Shawmut Complex. As plant manager, he reported to Bill Henry, President of the Finished Fabric Division, and he was responsible for the finishing department, product development, textile testing, plant engineering, human resources, and the inspection and shipping department.

In the fall of 1999, JI hired Distribution Consulting, Inc., an outside firm, to analyze the company’s efficiency and costs. The Shawmut Complex was among the operations that Distribution Consulting evaluated. The report led Clark Ogle, JI’s CEO, to conclude that Lauderdale was responsible for the Shawmut Complex’s performance, which was unsatisfactory. Ogle decided to terminate Lauderdale’s employment.

Henry recommended that Lauderdale’s discharge be treated as a reorganization and job elimination rather than a performance-based discharge. This made Laud-erdale eligible for severance pay. Howev *1318 er, JI did not inform Lauderdale that he was being terminated because of the quality of his work. Instead, Henry told him that the job action was unrelated to his job performance. Throughout his discharge proceedings, Lauderdale was led to believe that the reason for letting him go was because his job position was to be eliminated.

Consistent JI’s representations, Lauder-dale was offered a severance package amounting to more than $40,000, and he was asked to execute a release of claims against JI, including federal claims for discrimination based on age. After waiting a week, Lauderdale signed the release, giving up any “past and present right and claim of any kind.” He has retained his severance benefits.

In November and December of 1999, after his discharge, Lauderdale contacted company employees about being rehired. He phoned Harold Harvey, President of JI Fabrics Division, at his office in New York. Harvey suggested that they meet a few weeks later in Alabama. However, Laud-erdale did not meet with Harvey, and did not speak to him again. Lauderdale attempted to call Harvey in the first week of March 2000, but did not reach him. Additionally, Lauderdale was also informed by other JI employees, Knox Ferris, Donnie Lauderdale, and Bob Eubanks, that there was a good chance that he would be able to come back to JI.

In January 2000, a report by another consultant, T.W.G. Ashdown, indicated that JI’s management structure at the Shawmut Complex was working badly. On May 15, 2000, after the report, Charles Eichelberger, Jr., the 30 year old son of the eponymous Vice President of Manufacturing at JI Fabrics, was promoted from among a group of internal candidates to a position as operations manager. Eichel-berger was considerably less experienced and qualified than Lauderdale had been. Eichelberger was initially responsible only for “finishing” but later became responsible for testing.

After learning of Eichelberger’s promotion, Lauderdale filed a charge of age discrimination with the Equal Employment Opportunity Commission. The Commission dismissed the charge as untimely because it was filed more than 180 days after Lauderdale was terminated. Consequently Lauderdale filed a second complaint with the Commission charging discriminatory failure to reinstate because of his age.

III. ADEA CLAIMS

Lauderdale has stated two ADEA claims: that JI discharged him because of his age in the fall of 1999; and that the company refused to rehire him because of his age in 2000.

A. Discharge Claim

JI contends that Lauderdale cannot pursue his ADEA discharge claim because he released it. Lauderdale responds that, for two reasons, the release he signed does not bar his claim: first, the release was executed before his discharge claim arose; and, second, he was fraudulently induced to sign the release.

i.

The terms of the release are unambiguous: Lauderdale agreed to “give up every past and present right or claim of any kind ... related to [his] employment ... and ... the termination of [his] employment ... including] ... those which could arise under ... the Age Discrimination in Employment Act of 1967.” 1 The release further provides that Lauderdale agrees “not to file a lawsuit or initiate any *1319

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Bluebook (online)
139 F. Supp. 2d 1315, 2001 U.S. Dist. LEXIS 5993, 2001 WL 503008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lauderdale-v-johnston-industries-inc-almd-2001.