Matson v. Cargill, Inc.

618 F. Supp. 278, 41 Fair Empl. Prac. Cas. (BNA) 1385, 1 I.E.R. Cas. (BNA) 706, 1985 U.S. Dist. LEXIS 15897, 40 Empl. Prac. Dec. (CCH) 36,381
CourtDistrict Court, D. Minnesota
DecidedSeptember 17, 1985
DocketCiv. 4-84-516
StatusPublished
Cited by12 cases

This text of 618 F. Supp. 278 (Matson v. Cargill, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matson v. Cargill, Inc., 618 F. Supp. 278, 41 Fair Empl. Prac. Cas. (BNA) 1385, 1 I.E.R. Cas. (BNA) 706, 1985 U.S. Dist. LEXIS 15897, 40 Empl. Prac. Dec. (CCH) 36,381 (mnd 1985).

Opinion

MEMORANDUM OPINION AND ORDER

DIANA E. MURPHY, District Judge.

Plaintiff Eugene C. Matson brought this action against Cargill, Inc., alleging age discrimination in violation of the Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621-634, breach of contract, and breach of an implied covenant of good faith and fair dealing. Plaintiff seeks compensatory and punitive damages, as well as reinstatement. Jurisdiction is alleged under 29 U.S.C. § 626(b) and 28 U.S.C. §§ 1331 and 1337. The matter is now before the court upon defendant’s motions for summary judgment on claims 1 and 2 of plaintiff’s complaint and to dismiss claim 3.

Background

The relevant facts are essentially undisputed. Plaintiff began working for Cargill on May 1, 1951 at the age of seventeen. He worked for Cargill until May 16, 1983, when he was discharged at the age of 49.

During this time, plaintiff worked in several positions. From 1972 through his termination, he worked on the corporate staff of Cargill’s Commodity Marketing Division (CMD). His primary responsibilities concerned purchasing materials, equipment, and parts for CMD’s Project Engineers and Plant Superintendents. In 1975, plaintiff was promoted to the position of Senior Purchasing Agent, but his basic responsibilities did not change. Matson depo. at 67.

While working with Cargill, plaintiff received a document entitled “Your Guide to Cargill, A Handbook for Salaried Employees” (thé Handbook) and another entitled “Cargill’s Supervisor’s Manual” (Supervisor’s Manual). Each of these documents contains provisions relating to termination and plaintiff claims that these provisions became part of his employment contract.

In the early 1980s, the business activity of CMD’s Plant Operations Department dropped precipitously. From a high of 120 million dollars in construction spending in 1981, Cargill expended only about 30 million dollars in the 1982 crop year and only about 18 million in the 1983 crop year. See Aff. Joseph P. Botos.

Because of this sudden decline in the work performed by CMD Plant Operations, the individuals in charge of the division began considering the possibility of reducing the staff. Cargill states that Robert Hubbard, CMD Vice President and Manager of Plant Operations, Joe Botos, Assistant Manager of Plant Operations and the individual who succeeded Hubbard in 1984, and Donald Biorn, Manager of Engineering, all concluded in late 1982 or early 1983 that a reduction in force (RIF) was necessary.

Plaintiff asserts that he spoke with Hubbard in October 1982 who assured him that he would always have a job at Cargill. *280 Hubbard apparently told plaintiff that he was subject to a transfer to a Cargill terminal because of his experience. Matson aff. at II10.

The preliminary task of evaluating the department’s employees and making a recommendation for a staff reduction was assigned to Biorn. Biorn states that he obtained a memorandum from the Human Resources Department regarding the way a RIF should be handled, reviewed it, and then requested two of his Project Coordinators, Doug Jensen and Allan Johnson, to assist him in rating each of the CMD employees with whom they worked.

Biorn, Jensen, and Johnson prepared a matrix by which to evaluate each employee. The criteria included:

1) seniority; 2) ability; 8) quality of work; 4) qhantity of work; 5) absenteeism; 6) tardiness; 7) performance appraisal; 8) attitude; 9) stretch; 10) promotability; 11) education; 12) experience; 13) job skill; and 14) know how.

Each of the criteria was weighed to reflect its importance. Using these criteria, Biorn, Jensen, and Johnson independently evaluated each employee potentially affected by the lay-off. Then, they met and reviewed the assessments. Where they differed as to ratings, they discussed the differences and arrived at a compromise rating.

These tentative appraisals were submitted to Hubbard, who, along with other managerial employees modified the recommendations slightly. Cargill’s Human Resources Department then assessed the grid, focusing upon the criteria selected and the weight attached to each criteria. It recommended that the categories of “tardiness”, “performance appraisal,” and “education” be deleted and that the one entitled “seniority” be changed to “length of service.” 1 The employee rankings were recalculated accordingly. Cargill asserts that its Human Resources Department discussed the revised grid with its Law Department to ensure that it had complied with all federal and state laws.

A final matrix was then prepared and submitted to the department and division heads for approval. Hubbard subsequently announced the reduction in force on May 16, 1983 to the nine affected CMD employees which included plaintiff. Six of the discharged nine were under the age of 40. Similarly, of the eleven individuals who were assessed and retained, five were 50 or over.

When plaintiff was terminated he was provided with 52 weeks of severance pay, 19 more than the severance compensation to which he was entitled. Cargill also arranged and paid for outplacement services for plaintiff with Clyde Meredith & Company. Plaintiff has submitted a document showing that his purchasing duties were temporarily assigned to younger employees after he was discharged. See Ex. D to plaintiff’s memorandum in opposition to defendant’s motions for summary judgment and to dismiss.

Discussion

In passing upon a motion for summary judgment, the court is required to view the facts in a light most favorable to the non-moving party, and the movant has the burden of establishing that no genuine issue of material fact remains and that the case may be decided as a matter of law. Buller v. Bueckler, 706 F.2d 844, 846 (8th Cir.1983); Ralph’s Distributing Co. v. AMF, Inc., 667 F.2d 670 (8th Cir.1981). The non-moving party is entitled to the benefit of all reasonable inferences to be drawn from the underlying facts disclosed in pleadings and affidavits. Vette Co. v. Aetna Casualty & Surety Co., 612 F.2d 1076 (8th Cir.1980). The nonmoving party may not merely rest upon allegations or denials of the party’s pleadings, however, but must set forth specific facts by affidavits or otherwise showing that there is a genuine issue for trial. Burst v. Adolph Coors Co., 650 F.2d 930, 932 (8th Cir.1981).

*281 A. Age Discrimination Claim

These general principles apply to age discrimination claims as well.

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618 F. Supp. 278, 41 Fair Empl. Prac. Cas. (BNA) 1385, 1 I.E.R. Cas. (BNA) 706, 1985 U.S. Dist. LEXIS 15897, 40 Empl. Prac. Dec. (CCH) 36,381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matson-v-cargill-inc-mnd-1985.