Schanzer v. United Technologies Corp.

120 F. Supp. 2d 200, 2000 U.S. Dist. LEXIS 17700, 2000 WL 1708988
CourtDistrict Court, D. Connecticut
DecidedSeptember 29, 2000
Docket3:98CV834 (JBA)
StatusPublished
Cited by11 cases

This text of 120 F. Supp. 2d 200 (Schanzer v. United Technologies Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schanzer v. United Technologies Corp., 120 F. Supp. 2d 200, 2000 U.S. Dist. LEXIS 17700, 2000 WL 1708988 (D. Conn. 2000).

Opinion

MEMORANDUM OF DECISION

ARTERTON, District Judge.

I. INTRODUCTION

Plaintiffs Robert Schanzer (Schanzer) and Robert Madison (Madison) charge that their former employer, Pratt & Whitney (“Pratt”), discriminated against them on the basis of their age when they were selected for layoff by means of a “paired comparison” ranking process that purported to measure, among other criteria, the individual’s “future potential.” The jury rendered a verdict in favor of the plaintiffs on their disparate treatment claims on February 1, 2000, and awarded $135,000 in economic loss to Schanzer and $130,000 in economic loss to Madison. The jury further awarded compensatory damages under the Connecticut Fair Employment Practices Act (FEPA) in the amount of $175,000 for each plaintiff, and found that the defendant’s violation of the Age Discrimination in Employment Act was willful. See Doc. # 80 (Amended Judgment). Plaintiffs’ disparate impact claim was tried to the bench, decision on which shall issue in a separate opinion. This memorandum of decision contains the final evidentiary ruling on the admissibility of plaintiffs’ statistical evidence; and the Court’s ruling on defendant’s post-trial motions for judgment as a matter of law, for a new trial or, in the alternative, remittitur.

II. Factual Background

The majority of the facts surrounding this employment case are discussed in context below. In brief, the plaintiffs were laid off from their positions as Project Financial Analysts at Pratt on March 19, 1997. At the time of his layoff, Mr. Madi *203 son was 53 years old, and had worked for Pratt for almost 30 years. Test, of Madison at 175, 188. Mr. Schanzer was also 53 years old when he was terminated, and had worked for Pratt for almost 23 years. Test, of Schanzer at 52, 73-74.

Pratt was facing financial difficulties in late 1996 and early 1997, and decided on a layoff as a method of reducing costs. Leary Test, at 378. Sandy Paluba, Pratt’s Manager of Human Resources Planning, worked with a number of human resources professionals to come up with a plan to implement the reductions. Paluba Test, at 413-15. Ultimately, defendant’s vice presidents recommended to John Leary, Pratt’s Vice-President of Human Resources and Organization that Pratt use a “paired comparison” process, in which every employee in a group would be compared head-to-head against each other employee, utilizing the following criteria: “diversity of skill set,” “technical expertise,” “leadership qualities,” and “future potential.” Puroshotaman Test, at 286. This last criterion, “future potential,” had never been used before at Pratt, Tr. at 361, nor was it analyzed, through “benchmarking” or a “validation study,” to test its effect or to determine whether its use would have an adverse impact on older workers. Leary Test, at 368-70. Randy Suida, the Vice-President and Chief Financial Officer of plaintiffs’ division, described “future potential” as the one criteria which encapsulated the characteristics of the type of person the company wanted “going forward.” Suida Test, at 852.

In choosing the four criteria, deciding on the process to select employees for layoff, and communicating these ideas to the business unit managers and human resources professionals who would be participating in the process, no one at Pratt compiled written notes, reports, memoranda, or other written explanations detailing how to conduct the paired comparison process or defining the four criteria which were to be used. Turgeon Test, at 621-25. Consequently, everything related to the paired comparison process, including the definition of the criterion “future potential,” was communicated orally by HR Department personnel and subsequently by business unit managers. Paluba Test, at 421-26. During the “head to head comparison” for the employees in plaintiffs’ Labor Grade, further details of which are outlined below, only Ms. Turgeon tallied the results of the individual comparisons; all other notes were collected and, since testimony disclosed that they no longer exist, they were presumably destroyed. Turgeon. Test, at 621; Paluba Test, at 424.

III. Admissibility of Expert Testimony

The Court ruled on defendant’s motion in limine to exclude plaintiffs’ statistical evidence during pre-trial conference, but did not issue a final written ruling. The following is the Court’s written decision on the admissibility of plaintiffs statistical expert evidence.

A. Description of “Paired Comparison” Process

The “paired comparison” process by which plaintiffs were selected for layoff involved ranking all Financial Department employees according to the four criteria outlined above. Employees in plaintiffs’ labor grade (48), a particularly large grade, were first rated into one of four groups based on these criteria and then compared with all other employees in the same ranking group (Groups 1, 2, 3 and 4). In the comparison process, employees were given a 1 if they “won” and a zero if they “lost” to the employee to whom they were being compared, from which a score was totaled and a final ranking established from which layoffs were made. Of the 168 employees in plaintiffs’ labor grade, all but one of the fifteen highest-rated employees were under the age of 40, while 82 of the 97 lowest-ranked employees (Groups 3 and 4) were 40 or older. Fifteen employees were then selected for layoff from the lower group rating of 3 and 4 based on their “paired” comparative rankings. All *204 fifteen terminated employees in plaintiffs’ Labor Grade (48) were 46 or older, while 32 of the 33 employees laid off in the Financial Department as a whole were 40 or older.

According to the Older Workers Benefit Protection Act data received by the plaintiffs on their day of termination, 29 U.S.C. § 626(f), 97% of the layoffs in the plaintiffs’ department, and 100% of the layoffs within plaintiffs’ particular labor grade, adversely impacted employees 40 or older. To determine whether these numbers had statistical significance, plaintiffs retained Dr. Adam Grossberg, Associate Professor of Economics at Trinity College in Hartford, to analyze both the results of the rating and paired ranking process as well as the resulting layoffs. In his analysis, Professor Grossberg employed the Fisher’s Exact Test, a statistical method commonly used in employment discrimination cases. See, e.g. Victory v. Hewlett-Packard Co., 34 F.Supp.2d 809 (E.D.N.Y.1999). In simple terms, the Fisher’s Exact Test employed here measures the probability that the resulting distribution of the ages of the terminated employees would occur by random chance. See Grossberg Report, Def.Ex.A. The test assumes that there is no correlation between the employees’ ages and whether they were terminated; if the assumption (the null hypothesis) is correct, the resulting data will demonstrate only a coincidental degree of association. If the null hypothesis is disproved by the layoff data, then the conclusion is reached that age did correlate with termination, other than by chance.

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Bluebook (online)
120 F. Supp. 2d 200, 2000 U.S. Dist. LEXIS 17700, 2000 WL 1708988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schanzer-v-united-technologies-corp-ctd-2000.