Smith v. Allstate Insurance

195 F. App'x 389
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 16, 2006
Docket05-3969
StatusUnpublished
Cited by10 cases

This text of 195 F. App'x 389 (Smith v. Allstate Insurance) 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
Smith v. Allstate Insurance, 195 F. App'x 389 (6th Cir. 2006).

Opinion

*390 ALICE M. BATCHELDER, Circuit Judge.

Plaintiff-Appellant Deborah L. Smith (“Smith”) appeals from a judgment of the district court granting Defendants-Appellants Allstate Insurance Company (“Allstate”) and Karl Meckert (“Meckert”) summary judgment on Smith’s claims of gender and race discrimination, in violation of Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. § 2000e-2; age discrimination, in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 623, et seg.; and retaliatory discharge, in violation of Title VII, 42 U.S.C. § 2000e-3(a), and the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 215(a)(3). Because we conclude that Smith has faded to submit sufficient evidence to sustain her burden of persuasion on any of these claims, we affirm.

I. Factual and Procedural History

Smith is an African-American female who was 47 years old at the time of her discharge in 2003 and had been employed by Allstate for 29 years, with the last 23 as a claims adjuster. Allstate’s Claims Department conducts its activities through thirteen regional Claim Service Areas (“CSAs”). Each CSA comprises several Market Claims Offices (“MCOs”), each of which is headed by a Market Claims Manager (“MCM”). Smith worked as a property claims adjuster in Unit A of the Great Lakes Property MCO, which comprised 16 adjusters working under Frontline Performance Leader (“FPL”) Karen Denny (“Denny”). Meckert is the MCM for the Great Lakes Property MCO, which is one of ten MCOs within the Crossroads CSA. Smith’s job was to investigate, evaluate, and resolve property damage claims that were reported to Allstate. During the early part of 2002, Smith received an average of 140 new claims per month, though that number was reduced to about 100 claims when Allstate hired more claims adjusters later that year.

Allstate evaluates its claims adjusters’ performance using a ratings system that takes into account several objective and subjective factors, which Allstate refers to as a Performance Development Summary (“PDS”). FPLs directly oversee and are responsible for evaluating the performance of claims adjusters within their units, and the MCM then reviews and signs off on an FPL’s evaluation of an adjuster. In creating an adjuster’s PDS rating, FPLs measure the performance of adjusters in four major skill areas and several sub-skills, and each major skill and sub-skill is assigned a numerical weight according to importance. Each sub-skill is evaluated as either “exceeds,” “meets,” or “requires improvement,” depending on the FPL’s assessment of the adjuster’s performance. For a claims adjuster, the most important sub-skills (and therefore the ones that carry the most weight in the PDS rating) are timely claim investigation and customer contact, customer service, and proper file documentation. Based on the sum of the ratings within each skill area, an overall performance rating is calculated. The process of calculating an adjuster’s PDS rating includes personal observation, written reports on employee performance, and a review of the employee’s files to determine if certain objective criteria have been met. In 2003, employees with an overall score of 85 or above received an “exceeds” PDS rating, employees with an overall score of 70 to 84.6 1 received a “meets” PDS rating, and employees with an overall score of less than 70 received a “requires improvement” (“RI”) PDS rating.

*391 Allstate says that employees with an RI rating may be placed on a formal corrective review plan in which they are evaluated in 30-day increments and allowed up to 120 days to meet specific goals. If the employee shows improvement but has not met the performance goals, an additional 30 to 60 days may be added to the corrective review plan. At the end of the review period, if the employee is unable to meet her performance goals, a job-in-jeopardy (“JIJ”) notification is issued. As part of the JIJ process, the employee is given specific goals and up to 120 days to meet them. However, Allstate says that termination of the employee may occur at any time during the JIJ period if circumstances warrant such action.

Smith’s work performance at Allstate seems always to have suffered from deficiencies; a supervisor rating her performance noted as early as 1987 that she had already experienced “years of inconsistent performance.” Supervisors noted problems with timeliness each year from 1981 through 1984, 1988, 1989, 1994 through 1996, 1999, and 2001; thoroughness of investigation in 1982, 1983, 1987, 1988, 1995, and 2000; and reporting in 1987 through 1989, 1994, 1996, and 2000. Furthermore, Smith was given a “needs improvement” rating in 1982 and was placed on corrective review when her performance did not improve. Smith, however, testified in her deposition that she does not believe that she had any weaknesses and that there was nothing about her job performance that she could improve upon, dismissing the opinions of her five supervisors over those years as “wrong.” On the other hand, Smith also received many letters from satisfied customers and co-workers during her tenure at Allstate, and her evaluations reveal very few customer complaints over the years.

Smith’s work performance issues continued during 2002 and 2003. In March 2003, Denny evaluated Smith’s performance for the calendar year 2002. Smith’s overall score for the annual formal PDS was 49.4, well below the 70 required for a “meets” PDS rating, and consistent with her 2002 checkpoint scores of 38.7 and 40.4. 2 As had been true throughout her career as an adjuster, Smith’s key deficiencies related to timely customer contact and file documentation. Accordingly, Smith received an RI rating and was placed on a 60-day corrective review plan. Denny reviewed two other employees that received an RI rating, and both were also placed in 60-day corrective review plans.

At the end of the 60-day corrective review plan, Smith had made progress towards her work performance goals. Because Smith met the required levels for seven of her eight goals, she was allowed 30 more days to meet the required performance level of all goals. Smith’s work performance deteriorated during those additional 30 days, however, and she did not meet the required performance level for three of the eight goals at the end of that period. Allstate then allowed Smith an additional 60 days to improve her work performance. At her next evaluation, Smith still did not meet the required performance level for three of the goals, and was given 30 more days to improve her performance. After Smith failed to meet the required performance levels again— and with a checkpoint PDS rating of 43.9 — Denny placed Smith on JIJ status in *392 October 2003. The two other employees given a formal RI rating by Denny months before in the annual review obtained a “meets” checkpoint PDS rating prior to October 2003 and were removed from the corrective review process.

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Bluebook (online)
195 F. App'x 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-allstate-insurance-ca6-2006.