Shirley M. Johnson v. Airbus Defense & Space Inc.

Court of Appeals for the Eleventh Circuit·Decided May 26, 2021·No. 20-11424·Unpublished

Opinion

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 20-11424

Non-Argument Calendar

D.C. Docket No. 5:17-cv-02150-LCB

SHIRLEY M. JOHNSON, TENEA R. STODDARD, JILL K. RANES,

Plaintiffs-Appellants,

versus

AIRBUS DEFENSE & SPACE INC, Defendant-Appellee.

Appeal from the United States District Court for the Northern District of Alabama

(May 26, 2021)

Before MARTIN, BRANCH, and LAGOA, Circuit Judges. LAGOA, Circuit Judge:

Shirley Johnson, Tenea Stoddard, and Jill Ranes (collectively, “Plaintiffs”)

filed this action against Airbus Defense & Space, Inc. (“ADSI”), for sex discrimination under Title VII of the Civil Rights Act of 1964 (“Title VII”), see 42 U.S.C. § 2000e-2(a), and for breach of contract. They now appeal the district court’s order granting summary judgment in favor of ADSI on their claims. Finding no reversible error, and for the reasons stated below, we affirm. I. FACTUAL AND PROCEDURAL HISTORY In 2006, the United States Army awarded ADSI, an aerospace company based in Huntsville, Alabama, a ten-year contract to deliver light utility helicopters known as Lakota helicopters. By 2016, no longer needing employees in Huntsville with the wrap-up of the ten-year contract, ADSI transitioned the remaining projects to an affiliate company, Airbus Helicopters, Inc. (“AHI”), with various locations across the south, including Texas. Prior to the transition, AHI President Mike Cosentino and AHI Director of Human Resources Genevieve Findlay engaged in several discussions with ADSI employees about what they could expect as the transition commenced. Plaintiffs, who were at-will employees of ADSI, were promised several times by Cosentino and Findlay either substantially similar positions at AHI or a severance payment. For the employee to be offered severance payment, he or she must have been offered a position at AHI that met one of the three following conditions: (1) the job required an immediate change in location; (2) the job included

substantially lesser pay; or (3) the job constituted substantially lesser status. Findlay, a female, made the decision regarding who received severance payment based on these three factors.

Thirteen ADSI employees were laid off during the contract wind-down and transition, but AHI offered each of the three Plaintiffs a position. And each was allegedly assured she would not be required to relocate from Huntsville, at least for the first year. However, ADSI made clear that the managers at AHI reserved the right to move the positions to Texas or Mississippi. Even if that were to occur, however, Cosentino and Findlay stated that an employee could prove that his or her role could be done remotely from Huntsville. This promise of being able to remain in Huntsville is the basis of Plaintiffs’ Title VII and breach-of-contract claims. In addition to this oral offer by Cosentino and Findlay, in early December 2016, each of the three Plaintiffs also received offer letters from AHI. The letters expressly stated that “the position at the current time will remain in Huntsville, [and] [o]ver the course of 2017 a determination will be made regarding the future working location of this position.”

Consistent with the three factors articulated above and subject to Findlay’s discretion, AHI did not offer the Plaintiffs severance payments because AHI offered each of the three Plaintiffs a position with the same salary, with “many similarities in the job,” and a promise to remain in Huntsville for twelve months. After AHI

informed each of the Plaintiffs accordingly, Johnson and Stoddard each declined the position at AHI because they believed they ultimately would be required to relocate. Ranes, on the other hand, conditionally accepted the position with AHI if AHI allowed her to remain in Huntsville permanently. In February 2017, AHI informed Ranes that she would be required to relocate to Texas or Mississippi following the twelve-month period, or January 2018. Ranes rescinded her acceptance and inquired about the possibility of receiving a severance payment.

Each of the Plaintiffs completed the terms of their employment with ADSI before leaving the company, and each believed that, once they left ADSI, that would trigger their right to a severance payment. They claim that they later learned of an alleged sex discrepancy in the payout of severance payments i.e., that male employees received severance packages because they were either not offered positions at AHI or were offered positions that were not equal in pay, status, or would require them to relocate. And, because no woman received a severance package, Plaintiffs believe that the motivation for denying them severance was based on sex.

Plaintiffs filed a two-count action against ADSI for its refusal to offer them severance payment, alleging one count for sex discrimination under Title VII and one count for breach of contract. As the basis of their claims, Plaintiffs alleged that, although they were offered employment with AHI, the positions were not “substantially similar” because they were required to relocate outside of Huntsville,

and that, consequently, they were entitled to severance pay. Plaintiffs sought a declaratory judgment, back pay, compensatory and punitive damages, and attorney’s fees and costs.

Following discovery, ADSI moved for summary judgment. It argued that Plaintiffs could not make a prima facie case for sex discrimination because each Plaintiff had been offered one year of equivalent employment in Huntsville by AHI and, thus, had suffered no adverse employment action. Further, it argued that Plaintiffs had not, and could not, show a similarly-situated comparator, as they did not share a job title with any other employee. And, in any event, ADSI argued that it had a legitimate, non-discriminatory reason for not offering the plaintiffs severance pay: Findlay, a female decisionmaker, had the discretion to determine whether the AHI positions were substantially similar to their positions at ADSI.

With respect to Plaintiffs’ breach-of-contract claim, ADSI argued that Plaintiffs were at-will employees who could have been terminated at any time and that any statements regarding severance payments did not change that employment contract. In its view, the severance discussions happened in the context of company- wide meetings, not as any individualized agreements for severance between ADSI and Plaintiffs. Even if a contract existed, ADSI argued that there was no breach of contract because Plaintiffs were all offered substantially similar positions at AHI and declined, causing them to not be entitled to severance under ADSI’s criteria.

In response to ADSI’s motion for summary judgment, Plaintiffs submitted the affidavit of Dale McElyea, Director of Contracts for the Lakota program at ADSI and Johnson’s and Ranes’s supervisor. McElyea attested that Cosentino and Findlay, at two separate meetings, had informed the Huntsville employees that if AHI did not offer the same jobs in Huntsville, the employees would receive severance packages. McElyea received a job offer from AHI for a position that was not equivalent to his position at ADSI with the same base salary. He declined the offer and received a severance package from ADSI. He also attested that he asked Cosentino why Johnson and Ranes were not receiving severance when they had been told that a change in location would trigger a right to severance, and Cosentino simply replied that he was not paying severance. ADSI then moved to strike McElyea’s affidavit under Federal Rule of Civil Procedure 37, arguing that Plaintiffs did not disclose McElyea as a witness during discovery and that it was prejudiced from this nondisclosure.

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Shirley M. Johnson v. Airbus Defense & Space Inc., (11th Cir. 2021).

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