Peters v. Rock-Tenn Co.

2011 Ohio 3949
Ohio Court of Appeals·Decided August 10, 2011·No. 10CAE040030·Published·Cited by 1 cases

Opinion

COURT OF APPEALS

DELAWARE COUNTY, OHIO

FIFTH APPELLATE DISTRICT

EUGENE N. PETERS : JUDGES:

: Hon. John W. Wise, P.J.

Plaintiff-Appellant : Hon. Julie A. Edwards, J.

: Hon. Patricia A. Delaney, J.

-vs- :

:

ROCK-TENN CO., ET AL : Case No. 10CAE040030 :

Defendant-Appellees : OPINION

CHARACTER OF PROCEEDING: Appeal from the Delaware County Court of Common Pleas, Case No. 07-CVH-3-300

JUDGMENT: AFFIRMED

DATE OF JUDGMENT ENTRY: August 10, 2011

APPEARANCES: For Plaintiff-Appellant For Defendant-Appellees

RUSSELL A. KELM CHRISTOPHER E. HOGAN JOANNE W. DETRICK 5025 Arlington Centre Blvd., Suite 400 37 W. Broad Street Columbus, OH 43220 Suite 860 Columbus, OH 43215 CLIFFORD M. WEISS NOELLE A. ABASTILLAS

541 Village Trace

Bldg. 11A, Suite 201

Marietta, Georgia 30067

Delaney, J.

{¶1} Plaintiff-Appellant Eugene N. Peters appeals the March 23, 2010 jury verdict of the Delaware County Court of Common Pleas finding in favor of Defendants- Appellees, Rock-Tenn Company, Rock-Tenn Services, Inc., Craig Gunckel, and Michael E. Kiepura on Appellant’s age discrimination claim.

STATEMENT OF THE FACTS AND CASE

{¶2} On March 16, 2007, Appellant filed a complaint in the Delaware County Court of Common Pleas alleging age discrimination by Appellees. Appellant was an employee of Rock-Tenn Company and the company terminated Appellant’s employment on January 10, 2007. Appellant alleged Appellees unlawfully terminated Appellant’s employment based upon his age. At the time of his termination, Appellant was 55 years old.

{¶3} Appellees filed a motion for summary judgment on February 1, 2008. The trial court granted Appellees’ motion for summary judgment and Appellant appealed the matter to this Court. In Eugene N. Peters v. Rock-Tenn Co., 180 Ohio App.3d 10, 2008- Ohio-6444, 903 N.E.2d 1256, this Court reversed the decision of the trial court to grant summary judgment and remanded the case to the trial court for further proceedings. We found there was a genuine issue of material fact as to whether Appellees’ reasons for terminating Appellant’s employment were mere pretext for impermissible discrimination.

{¶4} The matter proceeded to a jury trial on March 9 through March 16, 2010.

The following testimony was adduced at trial.

{¶5} Rock-Tenn Company, based in Norcross, Georgia, produces corrugated and consumer packaging, such as folding cartons. Appellant, who resides in Westerville, Ohio, began working for Rock-Tenn in 1981 as a sales person. When Appellant started with Rock-Tenn, he was responsible for selling quick service restaurant cartons, which are folding cartons used by restaurants and fast food establishments. Appellant’s sales territories included the Midwest, mid-Atlantic, Texas, Arizona, and Wisconsin. Appellant averaged approximately $5 million and $5.5 million in sales per year.

{¶6} The quick service cartons are primarily produced at Rock-Tenn’s folding carton plant in Eutaw, Alabama. Dan Williams is the general manager of the Eutaw plant and has worked for Rock-Tenn since 1974. Because the products Appellant sold were produced at the Eutaw plant, Dan Williams and Appellant worked closely together throughout their careers. Williams spoke to Appellant about increasing his sales and warned that Appellant could lose his job if he did not increase his sales.

{¶7} Conrad Hill, Vice President of Manufacturer Representative Sales, was Appellant’s supervisor. In 2005, Rock-Tenn purchased a competitor and reorganized the folding carton sales division. Due to the reorganization, Hill’s position was eliminated, but he was reassigned as a salesperson with no change in salary or benefits. Hill was 63 years old at the time and was considering retirement.

{¶8} Appellant’s new supervisor was Appellee, Craig Gunckel, Sales Manager of the Eastern Division. Gunckel was 34 years old. Before 2005, Appellee, Michael Kiepura was Senior Vice President of Sales for the Folding Carton Division. After 2005,

Kiepura was Executive Vice President of the Folding Carton Division. Gunckel reported to Kiepura.

{¶9} At the time of the reorganization, Hill counseled Gunckel on the sales people newly assigned to Gunckel. Hill recommended that Gunckel terminate Appellant’s employment because Appellant demonstrated poor performance and declining sales. Appellant had decreased sales every year and in the last 39 months prior to his termination, Appellant only opened one new account. Dan Williams also recommended that Rock-Tenn terminate Appellant’s employment. Gunckel declined to terminate Appellant at that time because he felt he could assist Appellant with his sales performance.

{¶10} When Gunckel met with his newly assigned sales representatives, he requested that they increase their sales. Appellant stated that Gunckel required Appellant to increase his sales goal to $10 million per year. Appellant also testified that Gunckel required Appellant to sell folding cartons other than the quick service cartons that Appellant was familiar with. Other Rock-Tenn sales people testified that due to the growth and reorganization of Rock-Tenn, the sales people were expected to sell all of Rock-Tenn’s folding carton products to a variety of customers and they did so. In 2006, Gunckel requested that Appellant develop a list of prospective customers. Appellant did not provide the list to Gunckel until September 2006 and after Gunckel told Appellant that he would not ask for the list again. Appellant testified that he had difficulty in developing the list because he was required to look for customers in the Cleveland and Columbus area that were already being marketed by other Rock-Tenn sales people. Gunckel denied limiting Appellant to the Cleveland and Columbus markets.

Delaware County, Case No. 10CAE040030 5

{¶11} During Appellant’s tenure with Rock-Tenn, Appellant received a bonus in 2006. Appellant also received effective performances on his employment reviews by Hill when Hill was his supervisor. Cole Harford, Appellant’s largest customer, gave Rock-Tenn and its sales people a 10 on its customer survey. Williams testified that the favorable customer survey was through William’s work at maintaining the relationship with Cole Harford, rather than Appellant’s salesmanship.

{¶12} In December 2006, Rock-Tenn began interviewing Richard Burklew for a sales position within Gunckel’s division. Richard Burklew was 43 years old. On January 8, 2007, it was confirmed that Burklew would be coming to Rock-Tenn. On January 10, 2007, Gunckel terminated Appellant’s employment. Appellees stated that Appellant’s employment was terminated because of Appellant’s poor sales performance.

{¶13} Gunckel assigned a portion of Appellant’s sales accounts to Burklew.

Other accounts were assigned to another sales person, manufacturer’s representatives, and customer service. When Conrad Hill officially retired, a portion of his accounts were assigned to Burklew.

{¶14} At the conclusion of Appellant’s case in chief, Appellees moved for a directed verdict. The trial court denied the motion. Appellees renewed their motion for directed verdict on Appellant’s claim of direct evidence of age discrimination. The trial court granted the motion. Appellant’s claim of indirect evidence of age discrimination went to the jury. The jury was supplied with four interrogatories.

{¶15} On March 16, 2010, the jury returned with a verdict. The jury answered the first interrogatory in favor of the Appellant, finding that Appellant established a prima

Delaware County, Case No. 10CAE040030 6

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