Neis v. Fresenius USA, Inc.

219 F. Supp. 2d 799, 2002 WL 1426754
CourtDistrict Court, E.D. Michigan
DecidedFebruary 28, 2002
Docket01-70503
StatusPublished
Cited by1 cases

This text of 219 F. Supp. 2d 799 (Neis v. Fresenius USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neis v. Fresenius USA, Inc., 219 F. Supp. 2d 799, 2002 WL 1426754 (E.D. Mich. 2002).

Opinion

ORDER DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT’S MOTION TO STRIKE DECLARATION

EDMUNDS, District Judge.

This matter came before the Court on Defendant’s motion for summary judgment and Defendant’s .motion to strike declaration. For the reasons set forth below, Defendant’s motion for summary judgment is DENIED and Defendant’s motion to strike declaration is DENIED.

I. Facts

The present case involves allegations of sex discrimination. Defendant Fresenius USA, Inc. (“Defendant”) is a national provider of products and services to individuals with chronic kidney failure. Defendant has a network of dialysis clinics and it supplies dialysis machines and related disposable products required for the operation of those machines; it provides these products to dialysis clinics it owns as well as clinics owned by other entities.

Plaintiff Denise Neis (“Plaintiff’) was hired to the position of Regional Sales Manager (“RSM”) in 1993 when Defendant purchased Abbott Industries Laboratories’ dialysis division “Abbott Renal Care.” Plaintiff was hired by Abbott in approximately November of 1990. See Plaintiffs Deposition at 93-96. Prior to Defendant’s purchase of Abbott Renal Care, Plaintiff had responsibility for Abbott’s Michigan territory. See id. 1

As an RSM, Plaintiff was responsible for increasing and procuring sales of Defen *802 dant’s products within her territory. To accomplish this, Plaintiff was required to visit various dialysis and renal care facilities, help to arrange nurse visits to the facilities, field questions from her customers and ensure smooth delivery of products ordered by her customers. See Plaintiffs Deposition at 106.

During the period of mid-July of 1996 through the end of September of 1996, Plaintiff took a ten-week disability/maternity leave related to the birth of her child. During her leave, Plaintiffs accounts were covered for her by other Fresenius employees. See id. at 131. Plaintiff received the commissions for sales made by those covering her territory during her leave.

In approximately September of 1996, shortly after Plaintiffs return from maternity leave, Defendant acquired another provider of dialysis products and services. National Medical Care (“NMC”). As with Defendant’s 1993 acquisition of Abbott, Defendant’s acquisition of NMC entailed the merger of what had previously been two independent sales workforces. See Kanski Affidavit ¶ 3. Defendant attempted to mesh its sales force with NMC’s by assigning certain of the NMC sales representatives to the “laboratory” business and realigning the “product” sales territory for the remaining NMC and Fresenius sales representatives. ■ See Kanski Affidavit ¶ 6-8.

Just as Plaintiff was retained in the Michigan territory when Defendant purchased Abbott, NMC sales representative David Howes (“Howes”) was retained in the Michigan territory (his territory with NMC) when Fresenius acquired NMC. The retention of both Howes and Plaintiff in the Michigan territory necessitated a realignment of the customers and accounts within the Michigan territory between them, and in approximately December of 1996, Plaintiff and Howes began the process of dividing the Michigan territory between them. See Plaintiffs Deposition at 128.

Plaintiff was directed by Robert Kanski (“Kanski”), Defendant’s Executive Director of Sales, to prepare a written proposal for dividing the Michigan territory between Howes and herself. See Plaintiffs Deposition at 135-136. Plaintiffs first written proposal included a north/ south geographic split with Plaintiff taking the southern portion of the territory. See Plaintiffs Deposition at 146. Howes’ responding proposal also included a north/ south geographic split with Howes taking the northern portion of the territory. See Plaintiffs Deposition at 329.

Although Plaintiff and Howes exchanged proposals regarding division of the Michigan territory and the customers therein, in January or February of 1997, Plaintiff, Howes and Kanski met to attempt to finalize the territory reconfiguration. See Plaintiffs Deposition 160. Kanski directed Plaintiff and Howes to divide the territory’s biggest customers — Greenfield and the “FMC” facilities. See id. at 181. Ultimately, at the conclusion of the meeting, an agreement was reached between Plaintiff and Howes. See id. at 185-186. Plaintiff testified that she was not “happy” with the division since she was not in favor of any territory division - nor in favor of retaining Howes as an RSM in the Michigan territory. Plaintiff indicated that she did not believe that coverage of the territory required two sales representatives and she would have preferred to retain all of the Michigan territory. See id. at 98-99, 264. Plaintiff and Howes nonetheless divided the territory and its biggest customers, including the Greenfield, FMC and Total Renal Care facilities.

A few months later, around April of 1997, Plaintiffs and Howes’ territories were adjusted following a demand from St. John Dialysis Network (“SJDN”) that *803 Plaintiff be removed from the account. See Plaintiffs Deposition at 194-195; N. Johnson Affidavit. According to Defendant, just prior to entering into a large sales contract with SJDN, Nancy Johnson (“Johnson”), SJDN’s Director of Nursing, contacted Defendant regarding her dissatisfaction with Plaintiff as a sales representative. Johnson requested that Plaintiff be removed from SJDN’s sales account. See Johnson Affidavit. In response to this customer demand, Defendant removed Plaintiff from this account. Howes was assigned the SJDN account and Plaintiff received various other accounts in exchange for the ones removed from her territory as a result of the customer complaints. See Plaintiffs Deposition at 199— 200.

During the period of approximately April of 1997 through July of 1998, Plaintiffs and Howes’ territories remained relatively static although both sales representatives received additional accounts as a result of further territorial realignments outside the Michigan territory. 2 In addition, the process of merging Defendant’s and NMC’s sales staff begun in late 1996 continued throughout 1997 and into 1998. At the beginning of 1997 there were 39 sales representatives; by the end of 1998, there were only 32 sales representatives. Seven territories were split and/or assigned to existing RSM’s thereby effectively reducing the size of the RSM staff. See Kanski Affidavit ¶ 18-19.

Defendant claims that a review of the Michigan territory size, patient count, commission rates and in view of the overall consolidation of business within the industry led it to conclude that the Michigan territory should be consolidated; one of the Michigan sales positions would have to be eliminated. See Kanski Affidavit ¶ 17-18.

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219 F. Supp. 2d 799, 2002 WL 1426754, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neis-v-fresenius-usa-inc-mied-2002.