McMahon v. Libbey-Owens-Ford Co.

870 F.2d 1073, 1989 U.S. App. LEXIS 3190, 49 Empl. Prac. Dec. (CCH) 38,859, 49 Fair Empl. Prac. Cas. (BNA) 620, 1989 WL 23237
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 20, 1989
DocketNos. 87-3865 87-3902
StatusPublished
Cited by44 cases

This text of 870 F.2d 1073 (McMahon v. Libbey-Owens-Ford Co.) 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
McMahon v. Libbey-Owens-Ford Co., 870 F.2d 1073, 1989 U.S. App. LEXIS 3190, 49 Empl. Prac. Dec. (CCH) 38,859, 49 Fair Empl. Prac. Cas. (BNA) 620, 1989 WL 23237 (6th Cir. 1989).

Opinion

PER CURIAM.

Plaintiffs brought this action pursuant to the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. (ADEA). Plaintiffs alleged that their former employer, Lib-bey-Owens-Ford Company (LOF) discharged them because of their age. Following a trial in district court, the jury returned a verdict for the plaintiffs, and awarded damages to both plaintiffs. Defendants have appealed the judgment, asserting that the district court should have granted either their motion for summary judgment, or their motions for directed verdict. Defendants also assert that the district court erred in admitting the testimony of plaintiffs’ statistical expert. Plaintiffs have cross-appealed, claiming that the district court abused its discretion in decreasing their awards by the amount of retirement benefits received. Plaintiffs also assert that it was an error for the district, court to deny their post-trial motion for prejudgment interest.

Upon review of the record in this case, we find that the district court correctly denied LOF’s motions for summary judgment and directed verdict. We also find no merit in LOF’s assertion that the testimony of plaintiffs’ statistical expert should not have been admitted. Additionally, we find no abuse of discretion in the district court’s decision to decrease plaintiffs’ awards by the amount of retirement benefits received, and in the denial of prejudgment interest. Accordingly, we affirm the judgment of the district court.

I.

This court has before it a lengthy record following a six-day trial, and extensive briefs in which facts are still bitterly contested. We will briefly summarize the facts viewing contested facts in a light more favorable to the plaintiffs, since LOF is appealing the denial of a summary judgment motion and directed verdict motions for the defense.

Plaintiff John McMahon was hired by LOF in 1958. He was employed there continuously until January 29, 1982, when he was notified that his employment with LOF was being terminated, effective immediately. During his tenure with LOF, McMahon held several supervisory positions, with numerous titles, such as “Chief Analyst of the Clerical Work Measurement Department,” “Corporate Director of Office Services and Cost Reduction” and “Group Manager of Office Services and Records Retention.” Although his job titles changed, McMahon’s positions generally entailed responsibilities over telephone operations, the mail room, microfilm operations, switchboard operators, and word processing. When McMahon was discharged, he was fifty-nine years old. Most of his job duties were reassigned to Robert Sherman, age thirty-five, who was recently appointed to a newly created position entitled “Manager of Telecommunications Operations.”

Plaintiff Jack Anteau commenced work with LOF in 1941 while still in high school. He was employed at LOF continuously, except for a two-year period of service in the armed forces during World War II, until January 29, 1982, at which time he was also discharged from LOF. Anteau held several positions at LOF with titles such as “Assistant Office Services Manager” and “Office Services Analyst.” He had various responsibilities, but basically he helped supervise switchboard operators, mail room personnel, and the print shop. He also had responsibilities over furniture and equipment acquisitions. Anteau was fifty-seven years old when he was discharged. Following Anteau’s termination, many of his responsibilities were divided and assumed by the aforementioned Robert Sherman, William Thomas and Larry Wno-zowski, who were all under age forty.

[1076]*1076LOF agrees that both plaintiffs were long-term, competent employees. In contrast to plaintiffs’ claims that they were discharged because of their age, LOF asserts that plaintiffs were discharged because of corporate reorganization and budget cuts. LOF claimed at trial that the division’s decreased profitability and the threat of a hostile takeover necessitated the budget cuts and reorganization. LOF also asserts that Robert Sherman was given the position of “Manager of Telecommunications” because he was knowledgeable in data communications, a skill needed for the updating of the department in which both plaintiffs worked. LOF claimed at trial that because of the updating and reorganization, plaintiffs’ job responsibilities were mostly eliminated or greatly altered, and consequently their positions were no longer needed.

It appears from the record that LOF’s planning for corporate reorganization began in 1981. In June 1981, Howard Sel-land, age thirty-eight, became vice president of planning and administrative systems. Plaintiff McMahon reported directly to Mr. Selland, and plaintiff Anteau was another step down the hierarchial flow chart. Mr. Selland created a new tier of managerial functions between himself and plaintiff McMahon, and hired five directors in the early fall of 1981, at an annual salary cost of $250,000. Burton Jones, age thirty-one, the new director between Sel-land and plaintiff McMahon, proceeded to reorganize the department. At some point during the latter half of 1981, Selland and Jones were informed that they would need to cut their budget, and by January 1982, the decision was made to lay off a few employees, including both plaintiffs, which resulted in an approximate cost savings of $170,000.

Plaintiffs filed separate ADEA complaints post-termination, and the cases were subsequently consolidated for discovery and trial. After a six-day jury trial in April 1987, the jury returned a verdict in favor of McMahon for the sum of $180,000 and in favor of Anteau for the sum of $101,000. Attorney fees, costs, and interest were added to these awards. LOF filed a motion to amend or alter the judgments, asking the trial court judge to decrease the awards for various reasons, the only one relevant to this appeal being the request for a decrease due to retirement benefits received by the plaintiffs since termination. The district court granted this request, and decreased McMahon’s award by $32,641 and Anteau’s award by $21,830. Plaintiffs requested post-trial to be awarded prejudgment interest on the back pay awards, but the trial court judge denied the request. Defendant now appeals, and plaintiffs cross-appeal.

II.

LOF’s first issue on appeal is that the district court erred in denying LOF’s motions for summary judgment, and for a directed verdict at the close of plaintiffs’ evidence. LOF asserts that plaintiffs failed to present a prima facie case that they were discharged on the basis of age discrimination, and that therefore summary judgment or a directed verdict should have been granted. LOF’s second issue on appeal is that the district court erred in denying a directed verdict for the defense at the close of all the evidence. Here LOF claims that there was insufficient evidence upon which a jury could base a finding that LOF discriminated against plaintiffs because of their age. Because these two issues are so similar, we will discuss them together.

This court has addressed, on several occasions, the issue of the amount of evidence needed to establish a prima facie case of age discrimination. Rose v. National Cash Register Corp., 703 F.2d 225 (6th Cir.), cert. denied, 464 U.S. 939, 104 S.Ct. 352, 78 L.Ed.2d 317 (1983); Blackwell v. Sun Electric Corp.,

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870 F.2d 1073, 1989 U.S. App. LEXIS 3190, 49 Empl. Prac. Dec. (CCH) 38,859, 49 Fair Empl. Prac. Cas. (BNA) 620, 1989 WL 23237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmahon-v-libbey-owens-ford-co-ca6-1989.