Palmer v. Combined Insurance Co. of America

217 F.R.D. 430, 2003 WL 22003358, 2003 U.S. Dist. LEXIS 15082, 92 Fair Empl. Prac. Cas. (BNA) 943
CourtDistrict Court, N.D. Illinois
DecidedAugust 29, 2003
DocketNo. 02 C 1764
StatusPublished
Cited by7 cases

This text of 217 F.R.D. 430 (Palmer v. Combined Insurance Co. of America) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Palmer v. Combined Insurance Co. of America, 217 F.R.D. 430, 2003 WL 22003358, 2003 U.S. Dist. LEXIS 15082, 92 Fair Empl. Prac. Cas. (BNA) 943 (N.D. Ill. 2003).

Opinion

MEMORANDUM OPINION AND ORDER

ZAGEL, District Judge.

This is a sex discrimination action brought under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. by Brenda Palmer, both individually and on behalf of others similarly situated. Ms. Palmer moves for class certification pursuant to Fed. R.Civ.P. 23 (“Rule 23”).

I. BACKGROUND

A. General

The factual background of this case has been detailed in my prior opinion denying defendant Combined Insurance Company of America’s (“Combined”) motion to strike Palmer’s class allegations dated February 24, 2003, part of which I will reiterate here:

Combined is an insurance company specializing in health, accident and life insurance products sold throughout the United States. These insurance products are sold by sales agents spanning the country who are overseen by managers, who are themselves supervised by a higher level of management. Combined is one of the last (if not the very last) vestiges of the “door-to-door” salesmen variety of insurance selling. These salesmen do not work in an office; rather, they work on their own and eontrol 'their working conditions and schedules, meeting with and contacting clients at their homes or in restaurants and other public places. They work solely on a commission basis and receive no salary from Combined.
In Combined, there are twelve separate sales divisions, each managed by a divisional manager. Each sales territory is divided into regions, which are supervised by regional managers. Each region is divided into sub-regions, sub-regions into districts and districts into territories, and these units are managed by sub-regional managers, district managers and territorial managers, respectively. Divisional and regional managers and the sales agents whom they oversee regularly attend large, multi-day sales meetings known as “Ard-mores.”
Combined operates on a strict pyramid system in which nearly every manager must advance from within, and almost every top manager (including the chief executive) started as a sales agent (the lowest level) and worked his way up through the pyramid system. Its founder, W. Clement Stone, established the principle that a strietly-commission sales force must be motivated emotionally as well as financially, and that principle remains ingrained in Combined’s philosophy today.

Ms. Palmer’s allegations can be summed up as the following: (1) Combined’s managers give female employees inferior sales opportunities and diminished prospects for success; (2) Combined gives fewer promotions to women than men; (3) female employees at Combined are sexually harassed on a regular basis; (4) Combined provides female employees with inferior training; and (5) even though Combined knows that all of these things are occurring, no effective steps to stop the behavior are taken.

B. Compensation

Ms. Palmer claims that during the relevant time period, between 1998 and 2001, Combined paid women significantly less than their male counterparts by giving women far fewer dollars in premium to work in the field than men. For sales agents and managers at Combined, earnings tie directly to the number of insurance products sold. Every week, an agent is assigned to work in a specific territory, and one source of business in that territory is the lead and referral cards given to the agent on a weekly basis by the district manager. This constitutes the “premium worked.” Agents are required to call on the clients identified on these cards to [434]*434service the accounts, which includes renewing current policies and selling new products, thus retaining existing business and generating new business. Agents are also expected to use the client contacts to find and develop new leads and referrals. Ms. Palmer alleges that women received significantly less “premium worked” than men even though evidence shows that women were more successful than men in renewing the premiums that they were given. According to Ms. Palmer, by doing this, Combined ensures that women must work harder than men to earn the same amount of commission, achieve performance goals, and qualify for promotion.

C. Promotion

This ease involves Combined’s “Seventh Essential Enhanced Sales Force” (“Seventh Essential”), which comprises 80% of Combined’s work force. At Combined, the country is divided into geographical divisions, each headed by a district manager who reports to the national sales manager and Viee-PresidenVManaging Director of Seventh Essential (both of whom are men). Beneath divisional managers are regional managers, then sub-regional managers, district managers, and finally, sales managers. Ms. Palmer asserts that there has never been a female divisional manager in Combined’s 83-year history and there are only a handful of female regional managers, two of whom submitted declarations stating their belief that women, including themselves, were discriminated against at Combined. According to Ms. Palmer, significant promotion disparities exist at two points in the job level hierarchy: 40% of women are cut out at the district manager level and another 65% of women are blocked out at the regional manager level.

It is Ms. Palmer’s contention that (1) even if women somehow make it to the regional manager level, those women have to work harder and encounter resistance from their male co-workers and subordinates every step of the way; and (2) these women are always passed up for promotion to divisional manager, even though they often outperform their male counterparts. For example, Casey McConnell, who was a regional manager during her employment with Combined, submitted a declaration stating that she had been turned down for promotions many times while less-qualified male co-workers got the promotions she requested. Ms. McConnell alleges that when she was finally promoted, she was continually harassed about her personal life and when she was denied requests for an additional sub-regional manager, one was assigned to another, much smaller state in her division that was ran by a male regional manager whose region had not outperformed hers and as a result, she had to work much harder to reach a certain premium dollar base and was constantly threatened with demotion if she failed to reach it. Ms. McConnell also states that her regional office was 200 miles from her home, but her divisional manager refused to provide her with an office closer to her home even though she submitted numerous requests, and consequently, she had to convert her home into an office and was never reimbursed for those costs. Finally, Ms. McConnell asserts that she was passed up for promotion to the divisional manager level on at least three occasions while males with numbers inferior to hers were promoted to those positions and that despite her numerous complaints of sex discrimination to her divisional manager, nothing was ever done, and she was told to just “get over it.”

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Cite This Page — Counsel Stack

Bluebook (online)
217 F.R.D. 430, 2003 WL 22003358, 2003 U.S. Dist. LEXIS 15082, 92 Fair Empl. Prac. Cas. (BNA) 943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmer-v-combined-insurance-co-of-america-ilnd-2003.