Sinclair v. Insurance Co. of North America

609 F. Supp. 397
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 28, 1985
DocketCiv. A. 83-2649
StatusPublished
Cited by15 cases

This text of 609 F. Supp. 397 (Sinclair v. Insurance Co. of North America) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair v. Insurance Co. of North America, 609 F. Supp. 397 (E.D. Pa. 1985).

Opinion

MEMORANDUM

GILES, District Judge.

After a trial on liability and all back pay issues, a jury answered special interrogatories finding that the plaintiff was separated from the defendants’ employ because of his age and that the termination was willful in violation of the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. *400 (“ADEA”). 1 The court now must mold the verdict, fashioning an equitable, “make whole” remedy.

Reinstatement

Considering all the evidence presented, I conclude that reinstatement is appropriate. No evidence was adduced that CIGNA Corporation harbors such hostility towards plaintiff that it would either-be futile or unfair to order reinstatement. The defendants’ corporate officer who terminated plaintiff, Mr. Heth, is retired. Moreover, at trial, both plaintiff and Mr. Heth, testified that they had been friends for many years. The jury’s finding of a willful violation means no more than that the defendants’ consideration of age as a determining factor in the termination was voluntary. Its finding does not equate to a finding of malice or employer hostility.

There was evidence that when the CIGNA merger came about, Mr. Heth or other óf defendants’ officials strongly urged plaintiff to retire voluntarily under the companys’ early retirement plan at age 55. The merger gave Mr. Heth, who became responsible for the elimination of duplicative and inefficient jobs, the opportunity to eliminate plaintiff’s position. The evidence suggests that had plaintiff not been eligible for early retirement, his job title would not have been eliminated. His position was not duplicative of any in the merged Connecticut General Insurance Company. Plaintiff was president of a small subsidiary of INA, responsible for the management of no more than six persons. His duties were not eliminated but delegated to others in the subsidiary and the parent company. Mr. Heth testified that he felt plaintiff was not happy with his work. Consequently he was firmly convinced that it was in the plaintiff’s and company’s best interests for plaintiff to retire early and suggested this to plaintiff as a friendly gesture. Plaintiff was given the opportunity to make other employment plans, given severance pay of one year’s salary and has received pension benefits totalling $33,586.00 from the date of separation to the present. Consequently, defendants’ actions causing plaintiff to leave the company was not with the kind of animosity which would compel a court to abandon the normal remedy for illegal discharge — reinstatement.

Defendants advised the court and plaintiff before and during trial that they would make an offer of reinstatement to a comparable job and salary should the jury determination be adverse. Likewise, before trial, plaintiff apprised the court that he would accept reinstatement to a comparable position. There was no evidence presented at trial that a comparable job no longer exists within CIGNA for which plaintiff is qualified. The court will retain jurisdiction to assure that the job offered is comparable should defendants elect not to return plaintiff to the position he last held. Reinstatement having been determined appropriate, plaintiff’s claims for future damages are deemed moot.

Back Pay

A victim of age discrimination is entitled to be made whole, that is, to be returned to the same economic status had there not been discrimination. In this case, plaintiff suffered no monetary loss between the date of termination and the present. It was stipulated that had he remained in defendants’ employ he would have earned $70,850 per year for two years or a total of $141,700 in salary, $3000 in bonuses, $1,500 in tax preparation fees (1983 only), and $1,904.99 in matched savings, for a total anticipated wage — covering the period October, 1982 through October, 1984 — of $148,104.99 or an average of $74,052.50 per year. 2

*401 Plaintiff experienced no hiatus in securing other employment. From his new employer, plaintiff has earned $63,400.62 per year or $126,800.04 for the back pay period. Consequently, plaintiff had a loss of earnings of $10,652.48 per year or $21,304.96 for the two years. Immediately upon leaving the defendants, plaintiff began receiving a severance pay of $70,850.00, spread over the succeeding 52 weeks. The severance pay was not money which the plaintiff would have earned had he remained employed by defendants. It was unearned. Thus, it must be credited against the loss of earnings caused to the employee. Since the $70,850.00 exceeds plaintiffs total loss of earnings of $21,304.96, he has not suffered any back pay loss and would not until the $70,850.00 contribution of the employer was exceeded by interim earning differentials.

Plaintiff asks this court to adopt a year-by-year approach in determining back pay loss, citing Leftwich v. Harris-Stowe State College, 702 F.2d 686, 693 (8th Cir. 1983). In Leftwich, the victim of employment discrimination had suffered earning losses in the first two years following termination. In the third year in his new job, the plaintiff earned an amount which exceeded the past employer’s salary by roughly the sum lost in the first two years. The district court held that under the “make-whole” principle the employee had experienced no loss over the three year period. The Eighth Circuit disagreed and, without explanation, held that “when ... a plaintiff’s interim earnings in any year exceed the wages he or she lost due to the discrimination, that “excess” must not be deducted from any back pay for other years to which the plaintiff is entitled.” This approach may have some utility where a court cannot be certain that the subsequent year excess earnings were attributable to cost of living increases or some other factor which would negate any real excess earnings. This situation is not present in this case. Because applying Leftwich here would result in a departure from the “make-whole” principle, I will not follow it. 3

Even if I did follow Leftwich, its rule would not aid plaintiff here. Defendants have given plaintiff $70,850.00 in severance dollars. In Leftwich, there was no severance pay and a loss of earnings. In the instant case, by reason of the termination, plaintiff received a gain of $60,-197.48 in the first year over what he would have earned in salary had he remained employed by defendants. 4 Plaintiff argues that he should be allowed to keep this under the Leftwich decision and still claim for a wage differential in the second year. I disagree. That rule on its face applies only to wage differentials. It anticipates that the employee will have received a loss by reason of the termination, not a gain. In applying the Leftwich rule, by its terms, it would be incongruous to treat severance pay as wages which the employee lost due to the discrimination.

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

Related

BUSH v. CHOTKOWSKI
E.D. Pennsylvania, 2021
Carmen Jean-Baptiste v. District of Columbia
958 F. Supp. 2d 37 (District of Columbia, 2013)
Merrell v. Chartiers Valley School District
51 A.3d 286 (Commonwealth Court of Pennsylvania, 2012)
Kraatz v. Heritage Imports
2003 UT App 201 (Court of Appeals of Utah, 2003)
Becker v. ARCO Chemical Co.
15 F. Supp. 2d 621 (E.D. Pennsylvania, 1998)
Rush v. Scott Specialty Gases, Inc.
934 F. Supp. 152 (E.D. Pennsylvania, 1996)
Kraemer v. Franklin and Marshall College
941 F. Supp. 479 (E.D. Pennsylvania, 1996)
Shea v. Icelandair
925 F. Supp. 1014 (S.D. New York, 1996)
Zampino v. Supermarkets General Corp.
821 F. Supp. 1067 (E.D. Pennsylvania, 1993)
Munnelly v. Memorial Sloan Kettering Cancer Center
741 F. Supp. 60 (S.D. New York, 1990)
Washington Department of Wildlife v. Stubblefield
739 F. Supp. 1428 (W.D. Washington, 1989)
McKelvy v. Metal Container Corp.
125 F.R.D. 179 (M.D. Florida, 1989)
Ina Corp., Appeal Of
782 F.2d 1029 (Third Circuit, 1986)
Sinclair, Appeal Of
782 F.2d 1031 (Third Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
609 F. Supp. 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-v-insurance-co-of-north-america-paed-1985.