Richard F. Harrington v. Aetna-Bearing Company, a Wholly-Owned Subsidiary of Katy Industries, Incorporated, and Katy Industries, Incorporated

921 F.2d 717, 1991 U.S. App. LEXIS 99, 55 Empl. Prac. Dec. (CCH) 40,494, 54 Fair Empl. Prac. Cas. (BNA) 1215, 1991 WL 483
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 7, 1991
Docket90-1440
StatusPublished
Cited by2 cases

This text of 921 F.2d 717 (Richard F. Harrington v. Aetna-Bearing Company, a Wholly-Owned Subsidiary of Katy Industries, Incorporated, and Katy Industries, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard F. Harrington v. Aetna-Bearing Company, a Wholly-Owned Subsidiary of Katy Industries, Incorporated, and Katy Industries, Incorporated, 921 F.2d 717, 1991 U.S. App. LEXIS 99, 55 Empl. Prac. Dec. (CCH) 40,494, 54 Fair Empl. Prac. Cas. (BNA) 1215, 1991 WL 483 (7th Cir. 1991).

Opinions

POSNER, Circuit Judge.

The Age Discrimination in Employment Act forbids an employer “to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation, [718]*718terms, conditions, or privileges of employment, because of such individual’s age.” 29 U.S.C. § 623(a)(1). We must decide whether the complaint in this unusual, perhaps unique, case states a claim of discrimination under the Act. Thinking not, the district judge dismissed the suit. 729 F.Supp. 1217 (N.D.Ill.1990).

In 1971 the plaintiff, Richard F. Harrington, became at the age of 53 the president and chief executive officer of Aetna-Bear-ing Company, one of the defendants. The other defendant is Aetna’s parent, Katy Industries. Why Katy was joined is a mystery to us — there is no suggestion that it had any dealings with Harrington, or that there is any other ground for piercing the corporate veil- — but it is a mystery with no significance to our decision.

On the day Harrington became president he signed an employment agreement with Aetna that provided that he would be employed until January 1, 1979, at the salary fixed in the contract and that he could be fired only for cause, defined in terms of five specified forms of misconduct, such as gross and willful neglect of duty. The contract also required Aetna, if it sold its business to another company, to condition the sale on the purchaser’s assuming Aet-na’s obligations under the contract with Harrington.

In 1978, the Age Discrimination in Employment Act was amended to raise the minimum mandatory retirement age from 65 to 70. The following year, Harrington’s employment contract with Aetna was amended to extend its expiration date “until the Employee [Harrington] reaches age 70,” which would be on August 7, 1988, and also to raise his salary. Oddly, the contract was not amended until July 1, 1979, six months after its expiration. (This is one of numerous, but fortunately irrelevant, puzzles in this case, like why Katy was sued along with Aetna. Another puzzle is whom Harrington negotiated the contract with. The only signatures on the contract besides Harrington’s are those of lesser officers of Aetna — Harrington’s subordinates. But presumably Aetna’s board of directors approved the contract.) In 1986, the Age Discrimination in Employment Act was further amended, to eliminate mandatory retirement ages altogether as of January 1, 1987 (but cf. Aledo-Garcia v. Puerto Rico National Guard Fund, Inc., 887 F.2d 354 (1st Cir.1989)), with exceptions (one mentioned below) inapplicable to this case.

Some months before his seventieth birthday, Harrington told Aetna’s board that he wanted to continue working after he reached 70 and also wanted the employment agreement extended. Aetna granted the former but refused the latter request. So Harrington’s seventieth birthday came and went and he was still on the job but without a contract; he was an employee at will, as apparently he had been for six months in 1979, before the original contract, which had expired, was amended.

Six months after Harrington turned 70 and the contract therefore expired — on February 7, 1989, to be exact — Katy sold Aetna’s business, without requiring the purchaser to retain Harrington. He was fired the same day, presumably by the purchaser, although the record is unclear on this point (as on so many others); Harrington attaches no importance to the question. There is no suggestion that he was fired for cause within the meaning of the expired employment contract.

Shortly afterward, and within 300 days after his seventieth birthday, Harrington filed a complaint with the Equal Employment Opportunity Commission, charging that the termination of his employment contract upon his turning 70 violated his rights under the age discrimination law. This lawsuit followed. Although certain corporate officers are excluded from the age discrimination law, 29 U.S.C. § 631(c), the exclusion is of limited scope and we are not told whether it might swallow Harrington. There is a reason we are not told: the exclusion of certain corporate officers is a defense to liability, Passer v. American Chemical Society, 701 F.Supp. 1, 2-3 (D.D. C.1988), and not one of those defenses that a defendant can raise by motion rather than by answer, Fed.R.Civ.P. 12(b) — and [719]*719the defendants have not yet answered the complaint.

It is important to understand what is not contended in this case. There is no contention that the placing of an age-70 cut-off in the amended employment agreement back in 1979 was an unlawful discrimination on account of age; at that time, persons aged 70 and older were not in the class protected by the age discrimination law. There is no contention that Aetna’s refusal in 1988 to extend Harrington’s about-to-expire contract was motivated by his age. The omission may reflect statute of limitations concerns. To explain, such a contention would imply that the statute of limitations had started to run on the date of the refusal. Delaware State College v. Ricks, 449 U.S. 250, 101 S.Ct. 498, 66 L.Ed.2d 481 (1980). If that date was prior to July 21, 1988, the three hundredth day before Harrington filed his complaint with the EEOC, then if the refusal to renew the contract was the discriminatory act, the suit is time-barred. And in all likelihood the refusal was prior to that date. We do not know for sure— this is another gap in the record. But the complaint alleges that Harrington requested renewal early in 1988 and was refused, presumably, although not certainly, shortly after the request was made. But the only thing that is important is that Harrington, for whatever reason, does not contend that the refusal to renew the employment contract upon its expiration was an act of discrimination.

He also does not contend that the sale of Aetna’s business was motivated, to even the tiniest extent, by a desire to get rid of him. Indeed, there is no contention that at any stage in Aetna’s dealings with Harrington the company was trying to get him to retire. Hence cases such as Karlen v. City Colleges of Chicago, 837 F.2d 314 (7th Cir.1988), on which Harrington relies, are inapposite; in them, the employer is accused of trying to induce early retirement by penalizing the worker who does not take it. It could be that when Aetna extended the contract to age 70, the lowest mandatory retirement age permitted by the Age Discrimination in Employment Act at that time, it intended to make Harrington retire at that age. But it obviously changed its mind when the Act was amended to forbid mandatory retirement at any age, and it made no move to fire or retire Harrington when the contract expired.

Because of all the things the plaintiff does not argue, his submission has a Doric simplicity. It is simply this. Any

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921 F.2d 717, 1991 U.S. App. LEXIS 99, 55 Empl. Prac. Dec. (CCH) 40,494, 54 Fair Empl. Prac. Cas. (BNA) 1215, 1991 WL 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-f-harrington-v-aetna-bearing-company-a-wholly-owned-subsidiary-ca7-1991.