Marshall v. Hartford Fire Insurance

78 F.R.D. 97, 18 Fair Empl. Prac. Cas. (BNA) 15, 1978 U.S. Dist. LEXIS 19610, 16 Empl. Prac. Dec. (CCH) 8172
CourtDistrict Court, D. Connecticut
DecidedFebruary 10, 1978
DocketCiv. No. H-77-39
StatusPublished
Cited by21 cases

This text of 78 F.R.D. 97 (Marshall v. Hartford Fire Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. Hartford Fire Insurance, 78 F.R.D. 97, 18 Fair Empl. Prac. Cas. (BNA) 15, 1978 U.S. Dist. LEXIS 19610, 16 Empl. Prac. Dec. (CCH) 8172 (D. Conn. 1978).

Opinion

[100]*100RULING ON DEFENDANT’S MOTION TO DISMISS AND/OR FOR SUMMARY JUDGMENT

BLUMENFELD, Senior District Judge.

The Secretary of Labor has brought this action against the Hartford Fire Insurance Company (“the Hartford”) under the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621-34. The complaint alleges that the Hartford has willfully violated the Act by terminating, demoting, failing to promote, or otherwise discriminating against 72 of its employees because of their age. 29 U.S.C. § 623(a)(1). The Secretary seeks to enjoin the Hartford from further violations of the Act and to obtain affirmative relief for the alleged victims of discrimination, including reinstatement and back pay where appropriate. The defendant has moved to dismiss the action, or in the alternative for summary judgment, on the ground that plaintiff failed to make adequate efforts to obtain voluntary compliance with the Act before filing suit. Section 7(b) of the Act, 29 U.S.C. § 626(b), which authorizes the Secretary to bring this type of action to enforce the Act, also provides:

“Before instituting any action under this section, the Secretary shall attempt to eliminate the discriminatory practice or practices alleged, and to effect voluntary compliance with the requirements of this chapter through informal methods of conciliation, conference, and persuasion.”

The parties conducted extensive negotiations regarding these alleged instances of discrimination before the complaint was filed on January 31, 1977. The defendant, however, has stated various reasons for concluding that the Secretary’s efforts to reach a voluntary settlement were inadequate. In order to measure the Secretary’s compliance with the statute, it is necessary to describe the negotiation process in some detail.

Factual Background.

The Hartford employs some 17,000 persons in offices throughout the nation. In January 1976, compliance officers of the Wage and Hour Division of the Department of Labor (“the Department”) commenced a full-scale investigation of the Hartford’s employment practices. They mailed questionnaires to about 1,400 employees, conducted interviews with past and present employees, and reviewed over 5,800 personnel files at the Hartford’s headquarters in Hartford, Connecticut. As the first cases of possible age discrimination were identified, the Department took the position that negotiations in these cases would be premature until it had conducted further investigations and decided whether in its opinion the Hartford had intentionally violated the Act. By September, 1976, the compliance officers had identified 70 possible victims of age discrimination. They concluded that a pattern of age discrimination existed in the Hartford’s 50 regional offices, and arranged a conference to discuss these findings and begin negotiations. Before the meeting took place, the Hartford was given the names of eight employees whose discrimination claims were considered to be representative of the larger group. Representatives of the Hartford and the Department met in Boston on October 6, 1976, for their first full-scale negotiations. The Department continued its investigations to identify additional instances of alleged discrimination.

At the October 6 meeting, the Department’s representatives gave the Hartford’s representatives a list of 74 alleged discrimination victims, including the eight whose names had been provided earlier. This list included each employee’s name, date of birth, date, of hiring, the date when the Hartford took adverse actions against him or her (e. g., termination or demotion), his or her age at the time of the adverse actions, an estimate of the wages and benefits that he or she would have received up to October 1, 1976, and an estimate of future lost wages and benefits. The negotiators discussed the factors that generally led the Department to draw an inference of age discrimination. The Department’s representatives explained the method by which back pay damages are calculated in age discrimination cases: the amount of actual [101]*101earnings in the period since discriminatory adverse action is subtracted from the amount the employee would have earned from the defendant employer in the absence of discrimination. Of the eight cases previously mentioned to the Hartford, two were specifically discussed at the first meeting.

Because the claims of a few employees would be barred by the statute of limita-tions as early as October 20, 1976, the Department asked at the October 6 meeting that the Hartford execute a waiver of the statute of limitations, so that the parties could devote time to their conciliation efforts without filing suit and without eroding any individual claims. The Department proposed a waiver that would be effective for six months. The Hartford’s attorneys eventually executed a waiver covering about three months, which expired on January 31, 1977, the day the complaint was filed. In January the Hartford refused to execute an extension of the waiver.

Between October 6 and January 31, the parties’ representatives held seven all-day negotiation sessions, two of which carried over to a second day. During part of this period the Department was completing its investigations of defendant’s files and identifying additional employée claims. The Hartford expressed dissatisfaction with the continued aggregation of claims, arguing that it could not make “an intelligent, overall response” to the government’s accusations until it knew the identity of all alleged discrimination victims. Letter of James E. Reik, Assistant General Counsel, to Jerrold Solomon, December 27, 1976, Attachment 6, Affidavit of James E. Reik, May 23, 1977. The Hartford complained that the Department’s negotiators were using vague allusions to unknown numbers of additional claims to unfairly pressure the defendant to make a settlement. On December 28, the Department supplied a list of 18 additional employees.1 The lists of October 6 and December 28 contain the names of all employees whose claims are involved in this action.

At the negotiation meetings, government representatives repeatedly explained their method of calculating back pay awards, and also pointed out why affirmative relief such as reinstatement was appropriate in some cases. The Hartford took the position that it could not settle individual cases without knowing the exact amount of back pay that the Department claimed for each employee. The Department argues that it was nearly impossible to compute the exact amount of back pay owed to all employees, because that computation required an up-to-date record of each employee’s actual earnings from other employers. It proposed to ascertain the amounts of actual earnings, so that damages could be calculated, after the Hartford had acknowledged liability and had agreed on a method for computing damages. To research actual earnings before defendant had agreed to pay damages would be unduly burdensome and premature.

Though most of the individual cases were discussed at these meetings, the negotiation process was found by both parties to be extremely frustrating.

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Bluebook (online)
78 F.R.D. 97, 18 Fair Empl. Prac. Cas. (BNA) 15, 1978 U.S. Dist. LEXIS 19610, 16 Empl. Prac. Dec. (CCH) 8172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-hartford-fire-insurance-ctd-1978.