Robert Lilley, Cross-Appellee v. Btm Corporation, Cross-Appellant

958 F.2d 746
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 29, 1992
Docket91-1063, 91-1100, 91-1398
StatusPublished
Cited by203 cases

This text of 958 F.2d 746 (Robert Lilley, Cross-Appellee v. Btm Corporation, Cross-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert Lilley, Cross-Appellee v. Btm Corporation, Cross-Appellant, 958 F.2d 746 (6th Cir. 1992).

Opinion

SUHRHEINRICH, Circuit Judge.

Robert Lilley brought an action against BTM Corporation (“BTM”) alleging age discrimination and retaliatory discharge in violation of the federal Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq., and Michigan’s Elliott-Larsen Act, Mich. Comp. Laws § 37.2101 et seq.; willfulness under state and federal law with respect to both age discrimination and retaliatory discharge; discharge in breach of an employment contract; and failure to pay commissions owed (“procuring cause”). BTM defended that Lilley was not an employee under the discrimination statutes. Prior to the first trial, the district court dismissed the breach of employment contract claim. At the conclusion of the evidence, the court granted a directed verdict in favor of BTM on the procuring cause claim. The jury found that Lilley was an employee of BTM, returned a general verdict in Lilley’s favor on the age discrimination, retaliatory discharge, and willfulness claims, and awarded damages for back pay, front pay, and mental anguish totaling $800,000. The court accepted the jury’s finding on employment status but ordered a new trial on the issues of age discrimination, retaliatory discharge, willfulness, and damages. The second jury returned a general verdict in favor of BTM on the age discrimination claim and in favor of Lilley on the retaliatory discharge claim and awarded damages of $186,000. The court ordered a new trial on the issue of damages for retaliation. The third jury awarded Lilley $425,000. The district court then awarded Lilley liquidated damages, attorney’s fees, costs, and prejudgment interest and entered final judgment in the amount of $600,551.04. Lilley appeals the directed verdict on his procuring cause claim, the grant of a new trial after the first trial of his age discrimination claim, the second jury’s verdict on age discrimination, claiming it resulted from judicial bias, the denial of prejudgment interest, and the district court’s computation of attorney’s fees and costs. 759 F.Supp. 1248. BTM cross-appeals the determination that Lilley was an employee, the award of liquidated damages, and the award of mental anguish damages.

We affirm in part and reverse and remand in part.

I

BTM President Edwin Sawdon offered Lilley a position selling BTM’s products for a five percent commission on sales. Lilley agreed and became the only BTM employee compensated on straight commission. After receiving several large commissions, Lilley began to discuss retirement with the other members of BTM’s sales staff, Steve Sawdon and Andy Janiszewski, and eventually announced to Ed Sawdon his intention to retire effective as of October 1987.

One of Lilley’s projects involved a large sale to General Motors CPC-Parma. Ed Sawdon came to doubt Lilley’s ability to close this deal because of his lack of engineering experience. Ultimately, Sawdon removed Lilley from this project, remarking that Lilley was “confused” and “losing it.” A number of other projects that Lilley was counting on fell through, and he realized that he would not be able to retire in October 1987 as planned. Lilley informed Sawdon of this sometime in early 1987. During this time Sawdon and Lilley began to argue over commissions that Lilley claimed were owed him.

On May 4, 1987, BTM announced a new policy that, beginning in October 1987, it would no longer sell its metal joining systems through distributors or “five percen-ters.” This policy was never implemented as to distributors, and Lilley was the company’s only five percenter. The new policy had the effect of eliminating Lilley’s job. The October effective date of the policy was chosen due to Lilley’s previously expressed intent to retire at that time.

*750 On July 8, 1987, Lilley filed an age discrimination complaint with the Equal Employment Opportunity Commission. On July 10, Lilley asked Sawdon to reconsider the new policy. When Sawdon refused, Lilley informed him of the discrimination complaint. Sawdon immediately terminated Lilley.

II

A

BTM argues that Lilley was not an employee. The jury disagreed. 1 BTM then moved unsuccessfully for judgment notwithstanding the verdict.

The term “employee” is to be given a broad construction in order to effectuate the remedial purposes of the ADEA. 2 This circuit employs the economic realities test to determine whether an employment relationship exists for the purposes of the ADEA. See Armbruster v. Quinn, 711 F.2d 1332, 1340 (6th Cir.1983). This test, developed under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., looks to whether the putative employee is economically dependent upon the principal or is instead in business for himself. See Dole v. Snell, 875 F.2d 802, 804 (10th Cir.1989); Mednick v. Albert Enters. Inc., 508 F.2d 297, 300 (5th Cir.1975); cf. Bartels v. Birmingham, 332 U.S. 126, 130, 67 S.Ct. 1547, 1549, 91 L.Ed. 1947 (1947). This test is a loose formulation, leaving the determination of employment status to case-by-case resolution based on the totality of the circumstances. See Armbruster, 711 F.2d at 1339-40.

BTM exercised control over Lilley. Although Lilley set his own hours and vacation schedule, such flexibility is not sufficient to negate control. See, e.g., Snell, 875 F.2d at 806. BTM had the authority to remove Lilley from particular sales. In at least one instance, BTM exercised this authority, removing Lilley from a deal while negotiations were still taking place and replacing him with another employee. In addition, BTM required Lilley to obtain its approval before he could quote a price to a potential buyer.

Although he paid some of his own expenses, Lilley did not make an investment in the business. BTM supplied Lilley with an office, secretarial services, business cards and stationery bearing BTM’s name, brochures and stickers advertising BTM’s products, and telephone privileges.

In addition, Lilley was integrated into BTM’s normal business operations. After BTM approved a price quotation, Lilley was authorized to sign for and bind BTM. He also attended weekly meetings of BTM’s sales staff, whose members are undisput-edly employees. Lilley went on “troubleshooting” trips, involving the resolution of problems that customers had with BTM’s products after purchase. Finally, BTM invited its customers to visit its facility and offered that “our people will give you all the help you need....” Lilley was listed among BTM's “people.”

It is also significant that Lilley sold only BTM’s products.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Spears v. Louisiana College
Fifth Circuit, 2023
Love v. Columbus
2019 Ohio 620 (Ohio Court of Appeals, 2019)
Wheatley v. W. Cent. Mich. Emp't & Training Consortium, Inc.
341 F. Supp. 3d 753 (W.D. Michigan, 2018)
Nist v. Nexeo Solutions, L.L.C.
2015 Ohio 3363 (Ohio Court of Appeals, 2015)
Michael Keller v. Miri Microsystems LLC
781 F.3d 799 (Sixth Circuit, 2015)
Sister Michael Marie v. American Red Cross
771 F.3d 344 (Sixth Circuit, 2014)
Idella Rutherford v. Britthaven, Inc.
452 F. App'x 667 (Sixth Circuit, 2011)
Solis v. Laurelbrook Sanitarium and School, Inc.
642 F.3d 518 (Sixth Circuit, 2011)
Schandelmeier-Bartels v. Chicago Park District
634 F.3d 372 (Seventh Circuit, 2011)
LeMaster v. Alternative Healthcare Solutions, Inc.
726 F. Supp. 2d 854 (M.D. Tennessee, 2010)
Edward Lentz, Jr. v. City of Cleveland
333 F. App'x 42 (Sixth Circuit, 2009)
Taylor Acquisitions, L.L.C. v. City of Taylor
313 F. App'x 826 (Sixth Circuit, 2009)
Dixie Janette v. American Fidelity Group, Ltd.
298 F. App'x 467 (Sixth Circuit, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
958 F.2d 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-lilley-cross-appellee-v-btm-corporation-cross-appellant-ca6-1992.