McElroy v. Philips Medical Systems North America, Inc.

127 F. App'x 161
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 18, 2005
Docket03-6219, 03-6351
StatusUnpublished
Cited by8 cases

This text of 127 F. App'x 161 (McElroy v. Philips Medical Systems North America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McElroy v. Philips Medical Systems North America, Inc., 127 F. App'x 161 (6th Cir. 2005).

Opinion

PER CURIAM.

Plaintiff, James McElroy, appeals from the entry of summary judgment in favor of his former employer, Philips Medical Systems North America (Philips), 1 with respect to his claims of (1) discrimination based on age and disability in violation of federal and state law, and (2) retaliatory discharge in violation of federal law. Philips appeals from the denial of its motion for summary judgment with respect to *163 plaintiffs state law retaliatory discharge claim, which was dismissed without prejudice when the district court declined to exercise supplemental jurisdiction over the claim.

After review of the record and the arguments presented on appeal, we AFFIRM the decision granting summary judgment to defendant with respect to the age and disability claims; AFFIRM the grant of summary judgment to defendant on the federal retaliatory discharge claims; and REVERSE both the dismissal of, and the denial of defendant’s motion for summary judgment with respect to the state law retaliatory discharge claim.

I.

Philips is in the business of selling medical equipment such as x-ray machines, CT scans, and MRIs, to hospitals, medical centers, outpatient clinics, and physicians’ offices. In 1985, McElroy, a certified radiology technician, started working as a sales representative for a company that was being purchased by Philips. McElroy became an account manager for Philips in its South Zone (covering parts of Georgia, Kentucky, Arkansas, and Tennessee) and continued in that position until his employment was terminated on September 7, 2001. McElroy received several President’s Club awards for his sales record between 1990 and 1997, but was last recognized for his sales in early 1998.

In 1997, McElroy was diagnosed with prostate cancer, received treatment, and returned to work after a brief period of recovery. In 1999, McElroy was diagnosed with colon cancer, had surgery, and returned to work without limitations. McElroy’s performance review in March 1998 reflected an overall rating of “Fully Meets Requirements.” No review was available for 1999. McElroy did not claim to be disabled, but alleged that he was mistakenly regarded as disabled because of his cancer.

In February 2000, McElroy’s direct supervisor was replaced by Dennis Wyatt, who became Regional Manager for the South Zone. At that time, McElroy was 58 years of age and Wyatt was 50. Wyatt knew McElroy and had worked directly with him as a product specialist in connection with a successful sales effort in 1997. There is no dispute that Wyatt was aware through a mutual friend, Monte Chaille, that McElroy had been treated for cancer.

Wyatt gave McElroy his first unfavorable performance review in March 2000, which reflected an overall rating of “Needs Improvement to Meet Requirements.” Areas rated “in need of improvement” included sales volume, forecasting, technical knowledge, and planning and organization. McElroy emphasizes two comments on this evaluation: first, that McElroy was “coming back from serious health problem[s] in 98/99, but now ha[d] a clean bill of health and [was] showing signs of a Top Performer once again”; and, second, that it was a goal for McElroy to “rekindle his skills and impressive style as a top performer.” Plaintiffs sales of $5.29 million fell short of the $6 million goal.

Wyatt received complaints both from customers and coworkers about McElroy’s lack of account coverage, inadequate product knowledge, and delays in follow-up with customers during 2000. The fact of these complaints was both undisputed and corroborated through affidavits from coworkers and customers. For example, as early as March 2000, Wyatt replaced McElroy on the radiology account at Lourdes medical facility. Complaints from Lourdes were conveyed to Wyatt by Mike Haney, a sales person employed by a company affiliated with Philips. Haney con *164 firmed that this action was taken at the request of the customer.

In early 2000, Steve Gaines, Assistant Director of Radiology at Vanderbilt University Medical Center, and Bryan Brand, Associate Hospital Director at Vanderbilt, expressed displeasure to Wyatt about McElroy’s practice of not making appointments before he visited, the delays they experienced in getting quotes or responses to service requests, and his failure to keep abreast of their needs. Wyatt discussed these concerns with McElroy but, in March 2001, Gaines asked that McElroy be replaced on the account.

Dissatisfaction about McElroy’s performance came from within the company as well. Kathy Higginbotham, a CT sales specialist, explained that she worked with McElroy on many occasions and that, in her opinion, McElroy was not knowledgeable about the needs and future plans of his clients or about the company’s new products. In an email to Wyatt in May 2001, Higginbotham reported seeing improvement in McElroy’s knowledge concerning client needs.

Monte Chaille, also a product specialist with Philips, attested that he felt McElroy was generally not keeping up with the new products or engaging his customers to ascertain future equipment needs. Chaille complained to Wyatt about one incident in particular in which McElroy had told him that a full product presentation would not be required for a customer meeting. When they arrived, however, it turned out that the director of purchasing and the technical support personnel had been expecting a full presentation. Chaille was not prepared and felt the meeting did not go well.

Wyatt conceded that he asked and urged McElroy to retire during the summer of 2000; even suggesting that McElroy take a medical retirement. McElroy responded that he could not afford to retire and that he was physically fíne. In September 2000, Wyatt hired Debra Sheridan, age 45, as an account manager in the South Zone. Sheridan had worked in other positions with Philips, including as a product specialist like Wyatt. At the time she was hired, Wyatt told her that McElroy would be leaving Philips within 18 months. Sheridan was initially assigned accounts from another discharged account manger named Beverly Barts, was later assigned accounts that were taken from McElroy, and was ultimately given more of McElroy’s accounts after he was discharged in September 2001. Sheridan did not take over all of his accounts when he was discharged, as they were spread among the then existing account managers. Sheridan left Philips in March 2002.

Plaintiff offered and defendant objected to consideration of an affidavit from Barbara Shockely that was provided for the first time after the close of discovery. Shockely worked as a sales representative in the medical equipment industry and was acquainted with Wyatt, McElroy, and Sheridan. Near the end of 2000, Wyatt told Shockely that McElroy was going to be fired, but asked that she keep the information to herself. In fact, Wyatt’s notes reflect that he and his supervisor, Joe Robinson, discussed terminating McElroy’s employment at the end of 2000. Those notes also indicate that McElroy and the product specialists “won” several deals in early 2001.

In the March 2001 performance review, Wyatt again gave McElroy an overall rating of “Needs Improvement to Meet Requirements” and identified many of the same problems as the year before.

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Bluebook (online)
127 F. App'x 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcelroy-v-philips-medical-systems-north-america-inc-ca6-2005.