Pierce v. Commonwealth Life Insurance

825 F. Supp. 783, 1993 U.S. Dist. LEXIS 8924, 62 Fair Empl. Prac. Cas. (BNA) 621
CourtDistrict Court, E.D. Kentucky
DecidedJune 25, 1993
Docket2:09-misc-00008
StatusPublished
Cited by15 cases

This text of 825 F. Supp. 783 (Pierce v. Commonwealth Life Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierce v. Commonwealth Life Insurance, 825 F. Supp. 783, 1993 U.S. Dist. LEXIS 8924, 62 Fair Empl. Prac. Cas. (BNA) 621 (E.D. Ky. 1993).

Opinion

MEMORANDUM OPINION

BERTELSMAN, Chief Judge:

Plaintiff brings this diversity action claiming reverse discrimination and intentional infliction of emotional distress, based on the circumstances surrounding his demotion by defendant. Plaintiff seeks compensatory and punitive damages.

Plaintiff Tom Pierce is represented by Katharine Saunders and Robert Hollingsworth. Defendant Commonwealth Life Insurance Co. and its parent corporation, Capital Holding Corp. are represented by Michael A. Luvisi and Donna King Perry.

I. Factual Background

Defendant Capital Holding Corp. is a Delaware corporation whose principal place of business is located in Louisville, Kentucky. Capital owns defendant Commonwealth Insurance Company, which is a Kentucky corporation with its principal place of business in Louisville (“Commonwealth” or “defendant”). Plaintiff, Tom Pierce (“plaintiff’ or “Pierce”) is an Indiana citizen who has held various positions with Commonwealth since 1958.

Pierce is currently employed as an insurance representative in Commonwealth’s Florence, Kentucky office. However, between April 1983 and March 1991, he held a position of higher responsibility, that of Agency Manager of the Wabash Valley Agency in Kokomo, Indiana. His demotion from that position, and the circumstances surrounding it, comprise the subject of this lawsuit.

On March 4, 1991, Deena Shaffer, then Marion Office Administrator, contacted Vice President of Human Resources Peggy Erhart (“Erhart”), and complained about Pierce’s management practices and his critical evaluation of her on recent work evaluations. Shaffer also supplied Erhart with the telephone number of Debbie Kennedy, the Lafayette Office Administrator. Kennedy, said Shaffer, had similar qualms about Pierce. When Erhart contacted Kennedy, Kennedy, too, complained about Pierce’s management practices and low-brow humor. Specifically, Kennedy complained about receiving a trivet from Pierce reading, “Sex is a misdemeanor. De more I miss, de meanor I get,” as well a xerox copy of a cartoon valentine from Pierce inscribed, “There are many ways to say T love you’ ... but fucking is the fastest.” Kennedy also took issue with her recent performance evaluation, done by *785 Pierce. Erhart conveyed all of this information to Commonwealth Field Vice President John Balser.

On March 6, 1991, plaintiff was summoned to a meeting with Erhart and Balser. It was at this meeting that Balser and Erhart first informed Pierce that he had been accused of sexually harassing female employees. While Balser -and Erhart were initially evasive about the precise allegations, plaintiff himself unilaterally recalled to Erhart and Balser an instance on which he had shown Kennedy a sexually oriented valentine and trivet. Plaintiff quickly added, however, that Kennedy had welcomed this conduct in good humor. Balser and Erhart instructed Pierce to meet with them on the following day.

The next day, the three met at a hotel in Kokomo, Indiana. The parties dispute what transpired at this meeting. Plaintiff alleges that Balser and Erhart again refused to specify the basis of the harassment charge, and that Balser commented that Pierce might as well have been a “murderer, rapist or child molester, that it wouldn’t be any worse.” Defendant denies that Balser ever said this. It is undisputed, however, that after this meeting, plaintiff was advised that he could not return to his managerial position. His personal belongings were allegedly subsequently delivered to him at a roadside Hardee’s.

After at least one further meeting with Commonwealth Vice Presidents Jim Quill-man and Tom Siegie, plaintiff was demoted to his present position in Florence, Kentucky. This demotion reduced plaintiffs weekly paycheck by approximately $250, and presented him with a long commute to work.

Several weeks later, plaintiff received a letter, dated May 22, 1991, authored by Laurel Fuson, Assistant General Counsel for defendants. The letter accused Pierce of having engaged in and tolerated sexual harassment at his office, despite his previous counseling as to such misconduct. This was the first time that Commonwealth had presented Pierce with a formal statement of the reasons for their actions against him.

Subsequently, in late December 1991, Balser, Erhart, and Dave Hinkle met with Kennedy at Commonwealth’s Lafayette office, where they learned that Ms. Kennedy herself had engaged in the following sexually oriented comments and behavior: she gave Pierce a sexually oriented cartoon, in response to his off-color valentine; she engaged in flirtatious behavior; she commented to Pierce that if she “became horizontal and spread [her] legs, [she] might get a better evaluation;” she brought a sexually oriented “joke” apron into the office; she sent and shared sexually oriented jokes and cartoons with other employees; and she brought a pornographic video into the office. It is undisputed that Commonwealth took no disciplinary action against Kennedy for having engaged in such conduct.

Defendant has in place a company policy against sexual harassment of the nature at issue here. That policy states:

Employees are expected to conduct themselves in accordance with Capital Holding Agency Group’s equal employment opportunity policy. Acts of discrimination by supervisors or co-workers, including but not limited to, sexual, racial, or other unlawful harassment, are strictly prohibited and may result in disciplinary action up to and including termination.

II. Legal Conclusions

A. Reverse Sex Discrimination Claim Under Federal Law

1. Governing Standards of Law

Title VII of the Civil Rights Act of 1964 provides:

(a) It shall be an unlawful employment practice for an employer —
(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin; or
(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely af- *786 feet his status as an employee, because of such individual’s race, color, religion, sex, or national origin.

42 U.S.C. § 2000e-2(a).

Pierce contends that he has demonstrated a prima facie case of reverse sex discrimination under Ky.Rev.Stat.Ann. (“K.R.S.”) Chapter 344.040, because he was disciplined for off-color conduct, while Kennedy, his underling, was not disciplined at all for having engaged in more pronouncedly off-color behavior. Because plaintiff has alleged no direct evidence of discrimination, the test set forth in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
825 F. Supp. 783, 1993 U.S. Dist. LEXIS 8924, 62 Fair Empl. Prac. Cas. (BNA) 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierce-v-commonwealth-life-insurance-kyed-1993.