Milhauser v. Minco Products, Inc.

855 F. Supp. 2d 885, 192 L.R.R.M. (BNA) 3259, 2012 U.S. Dist. LEXIS 27790, 95 Empl. Prac. Dec. (CCH) 44,439, 2012 WL 684007
CourtDistrict Court, D. Minnesota
DecidedMarch 2, 2012
DocketCivil No. 09-3379 (JNE/JJG)
StatusPublished
Cited by4 cases

This text of 855 F. Supp. 2d 885 (Milhauser v. Minco Products, 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
Milhauser v. Minco Products, Inc., 855 F. Supp. 2d 885, 192 L.R.R.M. (BNA) 3259, 2012 U.S. Dist. LEXIS 27790, 95 Empl. Prac. Dec. (CCH) 44,439, 2012 WL 684007 (mnd 2012).

Opinion

ORDER

JOAN N. ERICKSEN, District Judge.

On September 16, 2011, a jury found Defendant Mineo Products, Inc. (“Mineo”) not liable to Plaintiff Douglas Milhauser on Milhauser’s claims under the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), 38 U.S.C. § 4312 (2006). Milhauser claimed that Mineo violated USERRA by discriminating against him and by failing to properly reemploy him after he returned from military leave. The case is now before the Court on Milhauser’s post-trial Motion for Judgment as a Matter of Law (JMOL) or, alternatively, for a New Trial on the claim that Mineo failed to reemploy Milhauser in the appropriate position in June 2009.

I. BACKGROUND

Mineo manufactures flexible circuits, sensors and heaters for use in the automotive, telecommunications, medical and defense industries. In 2006, Mineo hired Milhauser to work as a Maintenance Technician in Minco’s Maintenance Department. At the time Mineo hired Milhauser, [888]*888it knew Milhauser was a member of the Naval Reserves. Milhauser then joined the Air Force Reserves. During his employment with Mineo, Milhauser took three military leaves. His first leave was for two weeks in March 2007. His second leave began in March 2008 and lasted ten months. Milhauser’s third leave began in March 2009, and ended on June 3, 2009. He was terminated immediately upon his return in June 2009.

Milhauser asserted four claims in this case. First, he claimed that Mineo discriminated against him after his second military leave in January 2009, when he supposedly returned to a position with lesser job duties and status. Second, he claimed that Mineo discriminated against him after his third military leave, when he returned in June 2009 and was terminated.1 Third, he claimed that Mineo failed to reemploy him in the appropriate position after his second military leave. Fourth, he claimed that Mineo failed to reemploy him in the appropriate position after his third military leave in June 2009.2

A jury trial began on September 12, 2011. Mineo presented evidence that during Milhauser’s employment, his supervisors received several complaints about his performance. Some of these complaints related to Milhauser’s ability to perform his job; other complaints related to Milhauser’s attitude and behavior. Mineo also presented evidence that in 2008-2009, it experienced a severe decline in customer orders. This decline led Mineo to take several steps to reduce its expenses and maintain its economic viability, including cost-cutting measures, a hiring freeze, a salary freeze, pay cuts, mandatory reduction of hours, and eventually terminations. In March 2009, Mineo terminated eighteen employees. In June 2009, Mineo terminated an additional thirty-two employees. Milhauser was one of those employees.

John Toohey, Minco’s Plant Services Manager, testified that in the spring of 2009, he was told to identify four employees who would be removed from Minco’s Maintenance Department as part of the reduction in force. He explained that he selected the four employees based solely on their abilities, skill sets, and versatility. Mr. Toohey testified that he initially believed that he was prohibited from considering Milhauser as a candidate for termination because of Milhauser’s military status. However, Human Resources then advised him that Milhauser could be considered for termination just like any other maintenance employee. Mr. Toohey testified that because of Milhauser’s limited skills and lack of unique expertise, Milhauser should be one of the four employees removed from the Maintenance Department.

Mineo also presented evidence that it did not choose to offer Milhauser a position in a different department — the Production Department — because of Milhauser’s performance and behavior problems. Sherri Himmelgarn, a manager in the Production Department, testified that Milhauser often took too long to complete a task, stating that “[sjomething that should have been done in ten minutes probably took more like an hour to be done.” She stated that Milhauser often spent more time talking than working. She also testified that on several occasions, Milhauser’s “repairs” resulted in the equipment becoming completely unusable. Moreover, Ms. Himmelgarn was displeased by Milhauser’s apathetic response when confronted with his [889]*889faulty repairs. She testified that employees in her department started asking engineer techs to work on their equipment just so they could avoid having Milhauser work on it. Her department did not experience similar problems with or complaints regarding the other individuals who were selected for the open positions in the Production Department. At a meeting with the other managers, Ms. Himmelgarn informed them of her issues with Milhauser’s performance, told them that she would not trust him with any of her equipment, and that she would not recommend him for a position in the department. Milhauser was subsequently not offered one of the open positions in the Production Department.

At the close of Minco’s case, Milhauser moved for JMOL on his claim that Mineo failed to reemploy him upon his return from military leave in June 2009, in violation of 38 U.S.C. § 4312.3 The parties had stipulated that Milhauser satisfied the prerequisites for reemployment under § 4312(a). Milhauser contended that he was absolutely entitled to a job upon his return from military leave, regardless of Minco’s changed circumstances. He argued that Mineo failed to prove its affirmative defense that reemployment was “impossible or unreasonable,” because, according to Milhauser, an employer’s economic problems and resulting reductions in force do not make reemployment “impossible or unreasonable” under § 4312(d). Specifically, Milhauser argued that in the absence of a seniority system, an employer cannot, under any circumstances, terminate a returning veteran, even as part of a reduction in force. The Court denied Milhauser’s motion and submitted the claim to the jury.

On September 16, 2011, the jury asked the following question regarding Jury Instruction number 8:

Instruction # 8
Can you please clarify USERRA reemployment in the escalator position This is confusing in that it states 2 completely opposite possibilities — the same position had military leave not been taken or demotion, transfer lay off or termination
Is a layoff a possible reemployment position?

The Court provided the jury with the following response:

The escalator position is the position that the returning person would have been in if they had not taken the leave. Please refer to the explanation of the principle of the escalator position contained in instruction no. 8.
I hope this is helpful to you.

Jury Instruction Number 8 read as follows:

When a member of the uniformed services returns from a service of 90 days or less, USERRA requires that the employer promptly reemploy him in a particular position. There are several possible reemployment positions.

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855 F. Supp. 2d 885, 192 L.R.R.M. (BNA) 3259, 2012 U.S. Dist. LEXIS 27790, 95 Empl. Prac. Dec. (CCH) 44,439, 2012 WL 684007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milhauser-v-minco-products-inc-mnd-2012.