Mark K. KRIEG, Plaintiff-Appellant, v. PAUL REVERE LIFE INSURANCE COMPANY, Defendant-Appellee

718 F.2d 998, 33 Fair Empl. Prac. Cas. (BNA) 594, 1983 U.S. App. LEXIS 15600, 32 Empl. Prac. Dec. (CCH) 33,915
CourtCourt of Appeals for the Eleventh Circuit
DecidedNovember 3, 1983
Docket82-5439
StatusPublished
Cited by25 cases

This text of 718 F.2d 998 (Mark K. KRIEG, Plaintiff-Appellant, v. PAUL REVERE LIFE INSURANCE COMPANY, Defendant-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mark K. KRIEG, Plaintiff-Appellant, v. PAUL REVERE LIFE INSURANCE COMPANY, Defendant-Appellee, 718 F.2d 998, 33 Fair Empl. Prac. Cas. (BNA) 594, 1983 U.S. App. LEXIS 15600, 32 Empl. Prac. Dec. (CCH) 33,915 (11th Cir. 1983).

Opinions

PER CURIAM:

The sole issue in this age discrimination case is whether the evidence at trial was sufficient to require reversal of the district court’s judgment for defendant notwithstanding a $137,832 jury verdict. Holding the evidence was insufficient to support the jury verdict, we affirm.

We review the trial court’s granting of a judgment n.o.v. under the same standard as the district court applies in the first instance.

[T]he Court should consider all of the evidence ... in the light and with all reasonable inferences most favorable to the party opposed to the motion. If the facts and inferences point so strongly and overwhelmingly in favor of one party that the Court believes that reasonable men could not arrive at a contrary verdict, granting of the motion[] is proper.

Boeing Co. v. Shipman, 411 F.2d 365, 374 (5th Cir.1969) (en banc).

Plaintiff brought this suit under the Age Discrimination in Employment Act. 29 U.S.C.A. § 621 et seq. There is no dispute that he established a prima facie case of age discrimination by proving: (1) his membership in the protected class; (2) his discharge; (3) his qualification for the position; and (4) his replacement by one outside the protected class. Marshall v. Goodyear Tire & Rubber Co., 554 F.2d 730, 735 (5th Cir.1977) (adopting for ADEA suits the criteria established for Title VII cases in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802, 93 S.Ct. 1817, 1824, 36 L.Ed.2d 668 (1973)). The defendant then introduced evidence articulating reasonable factors other than age for the discharge. Marshall v. Westinghouse Electric Corp., 576 F.2d 588, 590-92 (5th Cir.1978). It was then incumbent on the plaintiff to prove that the employer’s proffered reasons for the discharge were but a pretext. Smith v. Farah Manufacturing Co. Inc., 650 F.2d 64, 68 (5th Cir.1981). As the Court observed in Smith, when the parties have developed their full proof it is unnecessary to analyze the evidence according to “the ebb and flow of shifting burdens” of proof under McDonnell Douglas. Id. at 68. At that point, the trier of fact must determine whether plaintiff has met the ultimate burden of showing the employer intentionally discriminated against him in violation of the ADEA.

Mark Krieg successfully worked for Paul Revere Life Insurance Company for some 26 years. He moved up in the company, [1000]*1000becoming a regional sales vice president in 1969. In November, 1974, Krieg stepped down to assume the position as general manager of the company’s agency in Charlotte, North Carolina, in effect appointing himself to that position pursuant to his authority as vice president. Two years after he became general manager, the company terminated Krieg and replaced him with a 27-year-old man. Because he was qualified for the job and was within the protected age group, being 58 years old, those facts proved a prima facie case. A brief review of the events leading to Krieg’s termination demonstrates why defendant was entitled to judgment.

During the course of Krieg’s career, the company recognized his success both as a sales person and as a manager. He introduced several letters from his superiors, two of which he received shortly before his termination, lauding his accomplishments in a variety of areas.

On August 27, 1976,- however, Robert Bates, the person who replaced Krieg as sales vice president, met with Krieg and voiced several concerns about Krieg’s performance as general manager: the first was a decline in the agency’s business, the second dealt with problems relating to the development of management trainees, and the third was knowledge and the apparent jealousy of other managers about the amount of Krieg’s guaranteed salary. Krieg indicated he could “no longer do this job” because of the stress involved and that he would be willing to retire from the general manager’s position if he could continue with the company as an agent writing personal business. He requested that the company guarantee a salary of $25,000 a year for four years, at which time he would be 62 years old and eligible for social security benefits. Bates told Krieg “that it certainly was not healthy to have a man in the job who did not have his heart in it.... ” In a letter to Bates dated August 31, Krieg proposed the terms of an agreement that would allow him to leave the general manager’s position. The letter stated Krieg’s desire to reach an agreement without delay because “once a decision is made to leave, the quicker the better.”

Bates forwarded copies of his memorandum concerning the August 27 meeting and Krieg’s letter to Ralph Stoughton, the company’s vice president for sales. In a cover letter, Bates stated his desire “to get Krieg out of the region as soon as possible.” He focused his wishes on Krieg’s failure to develop two management trainees, stating that Krieg was “doing very little . .. and [would] continue to do little.” Bates observed that paying Krieg $25,000 a year for four years “doesn’t sound all that bad to me to get him out of the way,” since the company would have to pay Krieg $100,000, based on his $50,000 a year guarantee as general manager, if he worked to age 60 as he originally had planned. The cover letter stated that while Krieg could have been a “very positive influence” on both the region and the company as general manager, he had instead been a “negative influence and a thorn in the side. On that basis, I certainly do not want to pass up this opportunity to get him out as soon as possible.” At Stoughton’s direction, the company’s secretary prepared a written offer for presentation by Bates and Stoughton to Krieg at a meeting on September 23, 1976. Stoughton opened the meeting by asking Krieg why he wanted to step down as general manager. Krieg outlined in great detail his inability to continue working the long hours required by the general manager’s position and criticized the company, its product, and methods of operation. Krieg stated he had offers from other companies, that he “knew his way around the Southern Region and would make it difficult” for the company, and finally that, while he did not want to, he would compete against the company. Stoughton and Bates interpreted these remarks as a direct threat.

Despite Krieg’s criticisms, Stoughton proceeded to describe the terms under which Krieg could remain with the company while writing personal business. The offer included a personal production quota of $400 a month. There was evidence that it would take four or five sales a month to meet this [1001]*1001requirement. Krieg told Stoughton the $400 monthly production requirement was unacceptable and that he would prefer to stay on as general manager. Stoughton then said that option was no longer available. By the end of the meeting, it became clear Krieg had the option of either resigning or being terminated. Krieg later contacted Bates indicating that he would like to see the written offer to determine whether it might be acceptable after all. Bates replied that Stoughton had taken the letter. Stoughton then wrote Krieg a letter dated October 1, 1976, which stated:

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Bluebook (online)
718 F.2d 998, 33 Fair Empl. Prac. Cas. (BNA) 594, 1983 U.S. App. LEXIS 15600, 32 Empl. Prac. Dec. (CCH) 33,915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-k-krieg-plaintiff-appellant-v-paul-revere-life-insurance-company-ca11-1983.