Reed v. American Cellular, Inc.

39 F. Supp. 3d 951, 2014 WL 3924564, 2014 U.S. Dist. LEXIS 112163, 124 Fair Empl. Prac. Cas. (BNA) 44
CourtDistrict Court, M.D. Tennessee
DecidedAugust 11, 2014
DocketNo. 3:13-cv-00009
StatusPublished
Cited by10 cases

This text of 39 F. Supp. 3d 951 (Reed v. American Cellular, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reed v. American Cellular, Inc., 39 F. Supp. 3d 951, 2014 WL 3924564, 2014 U.S. Dist. LEXIS 112163, 124 Fair Empl. Prac. Cas. (BNA) 44 (M.D. Tenn. 2014).

Opinion

ORDER

JOHN T. NIXON, Senior District Judge.

Pending before the Court is Defendant American Cellular Inc.’s Motion for Summary Judgment (“Motion”). (Doc. No. 15.) For the reasons stated below, Defendant’s Motion is DENIED.

I. Background

A. Factual History1

Defendant American Cellular, Inc. (“ACI”) is a Tennessee corporation that operates as a retail agent for Verizon Wireless selling cellular phones and accessories. Plaintiff Virginia Reed, born on February 9, 1949, was hired by ACI as an Account Executive in 1999. Reed was promoted to Store Manager of ACI’s McMinnville store in 2003. ACI measures its stores’ performance using a points system that tracks various statistical data for each store, including new account activations, upgrades, and accessory sales. (See Doc. No. 16-6.) In 2007, the McMinnville store was ACI’s fifth most productive store as measured by total points. (Id. at 5.) However, the McMinnville store’s production declined from 2007 through 2009. In 2009, McMinnville was ACI’s twelfth most productive store. (Id. at 9.)

During her tenure as store manager, Reed reported to District Manager Sherry Riddle. (Doc. No. 16-8 at 6-7.) Reed contends that Riddle treated her differently than other store managers. (Doc. No. 21 ¶¶ 15-17.) For instance, Reed claims that Riddle was often “dismissive and rude,” and criticized her more than other store managers. (Id. ¶ 15.) Reed also claims that while other store managers were permitted to hire sales representatives as necessary for their stores, Riddle insisted on participating in all employment decisions for the McMinnville store. (Id. ¶ 16.) Reed contends that she noticed a marked decline in support from Riddle beginning in 2008: Riddle rarely visited the store, Reed was unable to reach Riddle to get approval for a business deal resulting in the loss of a large sale, and Riddle was not available to participate in hiring decisions, so the McMinnville was short-staffed. (Id. ¶ 17.) Reed twice attempted to reach ACI co-owner Steve Ingram for assistance in 2008, but was only able to [958]*958leave him messages that were eventually returned only by Riddle. (Id.)

From 2007 through 2009, Reed observed behavior that led her to the conclusion that Riddle discriminated against older workers. For instance, Reed claims that Riddle looked for age clues on resumes and admonished Reed not to “waste time scheduling interviews with older people.” (Id. ¶ 16.) Reed also asserts that on the few occasions when she did arrange interviews with older applicants, Riddle was dismissive, telling Reed “you can’t train older people for this job.” (Id.) According to Reed, co-owner Ingram shared Riddle’s discriminatory beliefs and repeatedly stressed the importance of hiring “young blood.” (Doc. No. 21 ¶ 25.) Reed further argues that Riddle’s attitudes towards older people extended to Reed, claiming she overheard Riddle telling other employees that Reed was too old to keep up and should retire. (Doc. No. 21-2 ¶ 12.) Two other McMinnville employees, Lacy Stoner2 and Joann Barnes, aver that Riddle made similar statements to them. (Doc. Nos. 21-17 ¶ 4; 21-18 ¶ 5.)

Reed states that on May 14, 2010, Riddle invited Reed to lunch and informed her that she would be removed from her store manager position as of June 1, 2010. (Doc. No. 21 ¶ 23.) Reed says Riddle told her that she was being “promoted” to the new position of Manager of Business Account Development, in which she would serve as an outside sales representative and travel around the state to solicit new business. (Doc. No. 16-1 at 16-17.) Reed told Riddle that she was aware that Verizon had eliminated its outside sales department the year before because it had not been profitable; Riddle responded that Reed could “make it work.” (Doc. No. 21-2 ¶ 11.) Reed’s income dropped from $42,868 in 2010 to $29,305 in 2011. (Doc. No. 16-2 at 88, 93.) Although Reed did not report to the new store manager in McMinnville, she continued to work out of the McMinnville store when she was not on the road. (Id.) Reed was sixty-one years old when she was removed from her store manager position. Reed’s replacement, Brenda Reed, was forty-six.

Reed filed a complaint with ACI’s Human Resources Department on June 11, 2010, alleging discrimination on the basis of her age. (Doc. No. 21-22.) Riddle wrote a memorandum responding to Reed’s allegations in which she admitted that she looks for age clues on resumes, and stated that “younger people (under 40) do great with the wireless industry.” (Doc. No. 21-23 at 4.) Riddle denied that she moved Reed to her new position because of her age, and claimed that Reed was removed from her position because of her lack of “production and quota attainment.” (Id. at 2.)

Brenda, the new manager in McMinn-ville, issued an “Employee Warning Notice Form” to Reed for “Rudeness” on June 28, 2010. (Doc. No. 21-24.) Reed claims that when she met with Brenda to discuss this charge of “rudeness,” Brenda said “I’m very aware that you don’t like American Cellular,” which Reed took as an acknowl-edgement that Brenda knew of Reed’s complaint to Human Resources about her demotion. (Doc. No. 16-1 at 22.) Brenda testified that she did not know about Reed’s complaint- until 2012. (Doc. No. 21-21 at 3.) Brenda subsequently issued Reed other Employee Warning Notice Forms, and Reed contends that all of these “write-ups” are unfounded. (Doc. No. 16-[959]*9591 at 26-29.) Reed also contends that Brenda told other employees to tell customers that Reed no longer worked at the McMinnville store, even when she was in fact present in the store, in an effort to interfere with her sales. (Doc. No. 21-2 ¶ 14).

In June 2012, Reed met with Ingram and Brenda. (Doc. No. 16-1 at 25.) Ingram informed Reed that the Manager of Business Account Development position was to be terminated, and Reed became a sales representative in the McMinnville store reporting to Brenda. (Id.) Reed claims Brenda was rude to her, limited her hours to a part-time schedule for many weeks, and intentionally scheduled Reed on days when she knew Reed had doctor’s appointments set in advance. (Doc. No. 21-2 ¶ 17.) Reed also states that Brenda intentionally humiliated her on November 5, 2012, when a bank deposit envelope went missing; Brenda asked the assistant manager to search Reed’s purse in the store in front of one of Reed’s customers. (Id.) According to Reed, no other employee was searched at that time. (Id.)

B. Procedural History

On November 12, 2010, Reed filed a complaint with the Equal Employment Opportunity Commission (“EEOC”) alleging that she suffered discrimination and retaliation in violation of the Age Discrimination in Employment Act (“ADEA”). (Doc. No. 16-4.) The EEOC found reasonable cause to conclude that Reed faced unlawful discrimination and retaliation (Doc. No. 21-10 at 2) and issued a “Right to Sue” letter on October 12, 2012 (see Doc. Nos. 1 ¶ 6; 4 ¶ 5). Plaintiff filed her Complaint in this Court on January 7, 2013, alleging ACI violated the ADEA by discriminating against her because of her age and retaliating against her for reporting the discrimination. (Doc. No. 1 ¶¶ 21-28.) Plaintiff also alleges that ACI’s age discrimination violated the Tennessee Human Rights Act (“THRA”). (Id. ¶¶29-32.)

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Bluebook (online)
39 F. Supp. 3d 951, 2014 WL 3924564, 2014 U.S. Dist. LEXIS 112163, 124 Fair Empl. Prac. Cas. (BNA) 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reed-v-american-cellular-inc-tnmd-2014.