Powell v. Bob Downes Chrysler-Plymouth, Inc.

865 F. Supp. 1340, 1994 WL 562248
CourtDistrict Court, E.D. Missouri
DecidedApril 15, 1994
DocketNo. 90-226 C (2)
StatusPublished
Cited by2 cases

This text of 865 F. Supp. 1340 (Powell v. Bob Downes Chrysler-Plymouth, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. Bob Downes Chrysler-Plymouth, Inc., 865 F. Supp. 1340, 1994 WL 562248 (E.D. Mo. 1994).

Opinion

MEMORANDUM

FILIPPINE, Chief Judge.

This matter is before the Court for a decision on the merits of plaintiff Barry W. Powell’s employment discrimination claim against defendant Bob Downes Chrysler-Plymouth, Inc. (“Bob Downes”) after trial to the Court.1 The parties have filed post-trial briefs and responses thereto. The Court adopts this memorandum opinion as its findings of facts and conclusions of law, pursuant to Federal Rule of Civil Procedure 52.

In Count I of the second amended complaint, plaintiff seeks monetary relief for defendant’s alleged violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq. (“Title VII”).2 Specifically, plaintiff contends that in discharging plaintiff from his position as a car salesperson on April 26, 1989, defendant discriminated against plaintiff on the basis of his religion (Judaism). Defendant argues that the discharge was based upon legitimate, non-discriminatory reasons due to plaintiffs performance and conduct; and the discharge would have occurred regardless of plaintiffs religion. The parties stipulated that (a) a total of $80,000.00 in backpay was owed plaintiff if liability was found against defendant and in favor of plaintiff; and (b) interest and attorney’s fees need to be considered if defendant is found liable with respect to the sole remaining claim. The parties further agreed to resolve any question regarding attorney’s fees after the Court determines the merits of the Title VII claim.

Mr. Robert Downes (“Robert”) operated defendant Bob Downes car dealership in St. Charles, Missouri, from 1980 until June, 1992. He was the sole owner of the dealership although his wife, Kathy Downes (“Kathy”), may have co-signed the loan and contributed some of the cash needed to purchase the dealership.

Plaintiff Barry W. Powell was employed by defendant Bob Downes in March, 1988, to sell new and used cars. Plaintiff had been a car salesperson for more than ten years, at five car dealerships, before he began working for defendant. During his tenure at Bob Downes, plaintiff was one of the top salespersons. Robert discharged plaintiff on April 26, 1989.

During the period relevant to this ease, the dealership had between thirty and thirty-five employees, including department managers for each of five departments. Three of the five departments were: administrative, new car sales, and used car sales. Robert Rich was manager of the new car sales department during plaintiffs tenure at the dealership; 3 Kathy was responsible for the administrative department; and other individuals managed the remaining departments. Each manager, including Kathy, reported to Robert and was responsible for the profits and [1345]*1345losses of the relevant department. Hiring, firing, and scheduling of personnel for a particular department were the responsibility of the manager of that department, subject to Robert’s final decisionmaking authority.

Robert and Kathy shared an office at the dealership, but did not discuss dealership operations and personnel matters except with respect to the administrative department. Opinions expressed or comments made by Kathy with respect to operations or personnel of other departments at the dealership were considered by Robert to the same extent as any other employee’s commentary about operations and personnel outside of the employee’s department. In making decisions regarding the operations of and personnel at the dealership, Robert relied on the department managers as well as his personal observations and experiences.

Kathy engaged in numerous conversations with personnel at the dealership. Some of these conversations included the exchange of jokes and commentary pertaining to the Jewish religion and those who follow that religion. From these exchanges, Kathy understood that Rich and plaintiff were Jewish. Robert, who did not participate in these exchanges, knew Rich was Jewish but did not know plaintiff was Jewish.4

As new car sales manager, Rich hired several car salespersons, including: plaintiff, Ken McArthy, Steven Comensky, Corbett Mark McNail, Bruce Baum, Stuart Ziglin, and Joe Avenoli.5 Rich, plaintiff, Comensky, Baum, and Ziglin are Jewish. The record does not persuasively indicate that anyone else at the dealership during the relevant time period was Jewish.

High turnover in personnel at car dealerships is not unusual. During plaintiffs tenure, several employees left defendant. McArthy, Baum, and Ziglin left the dealership on their own accord. Robert terminated Rich just prior to plaintiffs discharge on April 26, 1989, reportedly due to Robert’s perception that Rich had acted disloyally by not supporting Robert during and after a staff meeting that day. Additionally, Comen-sky was discharged several hours after plaintiffs discharge, due to Comensky’s low sales record.

Some new car sales transactions include a “trade-in” where the customer trades in the customer’s present vehicle for part of the actual price of the new vehicle. Appraisals6 of trade-in vehicles are usually provided by the used car manager at a car dealership. If that manager is unavailable to appraise a vehicle, another dealership manager, for instance, a general manager or a new car sales manager, is usually authorized to appraise trade-in vehicles. The appraisal amount is generally the amount given as the trade-in value for the customer’s vehicle.

[1346]*1346New car salespersons are paid by commission, rather than by salary. The commission is affected by the value given for a customer’s trade-in vehicle. If the salesperson gives the customer the ACV as the value for the trade-in vehicle, then the salesperson gets the commission provided by the formula used at the dealership. If the salesperson gives the customer a trade-in value greater than the ACV for the trade-in vehicle, the amount above the ACV is deducted from the profit on which the salesperson’s commission is based. If the salesperson gives the customer a trade-in value less than the A.CV for the trade-in vehicle, the salesperson’s commission is based on the usual profit plus the difference between the ACV and the amount actually given to the customer as trade-in.

If the trade-in value is too low, then the customer may complete the sales transaction at a different dealership. The higher the trade-in value, the greater the likelihood the sales transaction will be completed,7 because the customer pays less cash toward the sale price of the new vehicle. A higher trade-in value may, however, adversely affect the financial status of the used car department of the dealership. If the trade-in value is too high, that department may suffer a loss if the trade-in vehicle is not sold at retail and must be sold at wholesale for an amount less that the trade-in value given for the vehicle.

Therefore, it is not unusual for a new car sales manager or a new car salesperson to discuss an appraisal of a trade-in vehicle with the manager providing the appraisal. The new car sales department will attempt to obtain a high trade-in value and therefore a high appraisal, whereas the used car sales department will endeavor to keep the trade-in value at the ACV level.

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Cite This Page — Counsel Stack

Bluebook (online)
865 F. Supp. 1340, 1994 WL 562248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-bob-downes-chrysler-plymouth-inc-moed-1994.