Rizzo v. Means Services, Inc.

632 F. Supp. 1115, 40 Fair Empl. Prac. Cas. (BNA) 1239, 1986 U.S. Dist. LEXIS 27396, 40 Empl. Prac. Dec. (CCH) 36,370
CourtDistrict Court, N.D. Illinois
DecidedMarch 31, 1986
Docket84 C 2454
StatusPublished
Cited by30 cases

This text of 632 F. Supp. 1115 (Rizzo v. Means Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rizzo v. Means Services, Inc., 632 F. Supp. 1115, 40 Fair Empl. Prac. Cas. (BNA) 1239, 1986 U.S. Dist. LEXIS 27396, 40 Empl. Prac. Dec. (CCH) 36,370 (N.D. Ill. 1986).

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

Joseph J. Rizzo (“Rizzo”), Thomas A. Grzyb (“Grzyb”), Harry D. McIntyre (“McIntyre”) and William Fletcher (“Fletcher”) sue their former employer, Means Services, Inc. (“Means”). 1 Their Amended Complaint (the “Complaint”) charges:

1. Means terminated all plaintiffs in violation of Age Discrimination in Employment Act (“ADEA”) § 4(a), 29 U.S.C. § 623(a) (Count I).
2. Means’ terminations of Rizzo (Count II) and Fletcher (Count III) were also racially motivated, in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e to 2000e-17 (“Title VII”) and 42 U.S.C. § 1981 (“Section 1981”).
3. Means breached its employment contracts with Grzyb, McIntyre and Fletcher by laying them off and refusing to recall them in violation of an established layoff policy (Count IV, a pendent state-law claim).
Means has now moved under Fed.R. Civ.P. (“Rule”) 56 for summary judgment on all plaintiffs’ claims save:
1. those in Count II (Rizzo’s Title VII and Section 1981 claims; 2 and
2. part of McIntyre’s Count I claim. 3 For the reasons stated in this memorandum opinion and order Means’ motion is granted as to Count IV but denied in all other respects.

Facts 4

1. Business Background

Means provides textile rental and laundering services to commercial users (Petri *1117 cig Dep. 27-28). 5 Before 1977 Means operated three Chicago-area “production facilities,” where soiled rental items were cleaned for redelivery to customers (id. 32-25):

1. Plant 701 (the “Linen Plant”), on South Michigan Avenue, which processed linens used in restaurants;
2. Plant 730 (the “Industrial Plant”), on West Madison Street, which processed shop towels, mats, mops and some cotton garments; and
3. Plant 736 (the “Garment Plant”), on South Wentworth Avenue, which processed shirts, pants and coveralls.

During 1977 Means decided to consolidate all three plants’ work at the Linen Plant location, because the Industrial and Garment Plants were “very, very antiquated” (id. 37) and newly enacted Chicago waste-water ordinances made a single waste-water system more economical (id. Ex. 3, at 5). That consolidation took place gradually, from 1977 to 1981, with the Industrial Plant closing in 1978 and the Garment Plant in 1981 (Dep. 55-57). Meanwhile a new building was added in early 1981 to the Linen Plant to accommodate increased activity there (id. 56). After the consolidation was complete, the South Michigan Avenue facility comprised two “plants,” the Linen Plant (which incorporated the items formerly processed by the Industrial Plant) and the Garment Plant (Petricig Aff. ¶ 3).

Management of Means’ Chicago operation was initially organized as follows (id. 11 6; Dep. 17):

1. Regional Manager/Operational Vice President (in charge of sales, merchandising and production);
2. Production Manager (in charge of the laundering of rental materials);
3. Plant Managers (in charge of each of the Industrial, Linen and Garment Plants) and Maintenance Managers (in charge of building upkeep and construction);
4. Shift Managers (in charge of each Plant’s shifts); and
5. Production Supervisors (in charge of each shift’s departments: shipping/receiving, counting, wash, flatwork, etc.).

During the period relevant to this lawsuit, E. Ronald Petricig (“Petricig,” a white male) was Production Manager. Petricig had been hired in 1976, when he was 32 (Int. 3 6 ), as a Project Manager — a title Means gave to new employees training for upper-management positions (Dep. 8-9,13). Within a year Petricig was promoted to Production Manager (id. 15). His principal mandate was to cut costs (id. 50).

Though Means’ Chicago operation has operated in the black since 1979 (id. 45-46), its total processing of textiles slipped from a high of 32.2 million pounds in 1980 to 26.7 million pounds in 1983 — a 17% drop (Petricig Aff. 117). 7 During much the same period, the number of Means' salaried managers fell from 40 to 20 and the total number of persons employed in production went from 530 to 292 (id. 118). Salaried managers were first laid off in 1982 (Dep. 985).

In March 1982 Means was acquired by ARA Services, Inc. (“ARA”) (id. 524). ARA had operated its own Chicago garment-cleaning plant (the “Campbell Avenue Plant”), but that plant’s work was transferred to Means’ Michigan Avenue operation by September 1982 (id. 527 A). Most Campbell Avenue Plant hourly employees *1118 were transferred to Means’ plant, but only one salaried employee, Maintenance Manager John Kinney (“Kinney”), went over (id. 529-32). Due to a “daily” decline in business volume, however, there was only a “temporary” increase in Means’ production after the Campbell Avenue Plant merger (id. 528).

Means made an attempt to keep the Campbell Avenue Plant going as a hospital-laundry operation, beginning in mid-August 1982 (Petricig Aff. If 19). Though some hiring was apparently done for that plant (see Dep. 1033), the project was ultimately abandoned.

2. Rizzo

Rizzo (then age 39, Int. .3) was hired by Petricig in May 1978 as a Second-Shift Manager (Petricig Aff. ¶ 20). Petricig knew Rizzo had prior management experience at Means 8 and thought he could help solve the company’s productivity problems (Dep. 176-77). During a conversation just before Rizzo came on board, Petricig told him there was a strong possibility of advancement within a year or two (id. 178). Less than a year later (January 1979) Petricig promoted Rizzo to Plant Manager of the consolidated Industrial-Linen Plant (Rizzo Aff. ¶ 5). In a February 5, 1979 letter to management announcing Rizzo’s promotion, Petricig wrote (Dep. Ex. 16):

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Bluebook (online)
632 F. Supp. 1115, 40 Fair Empl. Prac. Cas. (BNA) 1239, 1986 U.S. Dist. LEXIS 27396, 40 Empl. Prac. Dec. (CCH) 36,370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rizzo-v-means-services-inc-ilnd-1986.