Southmayd v. Apria Healthcare, Inc.

412 F. Supp. 2d 848, 2006 U.S. Dist. LEXIS 6145, 2006 WL 249964
CourtDistrict Court, E.D. Tennessee
DecidedJanuary 31, 2006
Docket3:04-cv-215
StatusPublished
Cited by7 cases

This text of 412 F. Supp. 2d 848 (Southmayd v. Apria Healthcare, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southmayd v. Apria Healthcare, Inc., 412 F. Supp. 2d 848, 2006 U.S. Dist. LEXIS 6145, 2006 WL 249964 (E.D. Tenn. 2006).

Opinion

MEMORANDUM AND ORDER

PHILLIPS, District Judge.

Plaintiff Richard Southmayd, a 58-year old male, brings this action for age discrimination and retaliation under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. and the Tennessee Human Rights Act, Tenn.Code Anno. § 4-21-101 et seq., and for retaliatory discharge under the Tennessee Public Protection Act, TenmCode Ann. § 50-1-304 and Tennessee common law. Defendant Apria Healthcare, Inc., has moved for summary judgment with regard to all of plaintiffs causes of action on the grounds that there are no genuine issues of material fact and that defendant is entitled to judgment as a matter of law. For the reasons stated below, defendant’s motion for summary judgment will be granted in part and denied in part.

7. Background

Richard Southmayd was hired by Apria Healthcare, Inc., on May 8, 2000, as the branch manager of its Knoxville location. At the time of his hire, Southmayd was 55 years old. Apria is a home medical equipment/respiratory therapy industry. At the time of Southmayd’s hire in May 2000, there was only one local branch for the East Tennessee area, the Knoxville branch, which included the Knoxville, Harriman, and Jefferson City locations. In October 2002, Apria acquired Tennessee Home Respiratory (THR), another home medical equipment company in Knoxville. Steve Miracle worked for THR and became an Apria employee after the acquisition. Following the acquisition, Apria made the decision to separately operate the THR and Apria branches. Southmayd continued to be the Knoxville branch manager for Apria’s locations in Knoxville, Harriman, and Jefferson City; and Miracle managed the THR branches in the Knoxville area.

In November 2002, Thomas Bradley, regional operations manager, asked Southmayd to consider transferring to Apria’s larger Nashville branch to serve as its branch manager. Bradley offered Southmayd the job because the Nashville branch needed a good leader and Bradley believed that Southmayd had the capabilities to lead that larger branch. Southmayd chose to remain in his current position of Knoxville branch manager due to family reasons.

On December 12, 2002, Southmayd informed Karyl Scott, regional clinical director for Apria, that unlicensed delivery personnel from the former THR had installed certain oxygen conserving equipment on a patient and performed pulse oximetry without the necessary prescriptions from a physician. Southmayd believed these actions were illegal. Pulse *853 oximetry is performed to confirm that oxygen saturations remain at viable levels while breathing through the conserving device. The failure to properly install oxygen conserving equipment and/or properly perform pulse oximetry could endanger the patient’s health and life. Southmayd’s concerns were relayed to Bradley, who relayed them to his superior, Lowell McKinster.

In January 2003, McKinster decided to combine the operations of THR and Apria in the Knoxville market. In March 2003, Miracle was promoted to Knoxville branch manager and Southmayd was transferred to the Harriman branch as manager. Compared to the Knoxville branch, Southmayd’s new Harriman branch manager position involved a smaller territory and market, involved fewer responsibilities and employees to supervise, and resulted in Southmayd being eligible for and receiving smaller raises and bonuses.

At the time of Southmayd’s transfer to the Harriman branch, Miracle (age 36) had been employed by Apria for less than six months. Southmayd (age 58) had been employed by Apria for over three years. Southmayd had twenty-two years experience in the home medical equipment industry, while Miracle only had six years experience in the industry. Yet, Apria chose Miracle to be the manager of the larger Knoxville branch.

In June 2003, Apria’s mid-year review of operations indicated that revenue growth for the region was not meeting expectations. McKinster and other regional managers were notified that a reduction in force (RIF) would be necessary to cut operational expenses. On July 16, McKinster decided to eliminate one of the two branch managers in the Knoxville area. It was decided to retain Miracle as branch manager and to terminate Southmayd. Southmayd was not informed of this decision until August 15 when McKinster met with him and informed him that his employment at Apria was being terminated as part of the RIF. That same day, Apria terminated 17 employees in the Southeast Division as part of the RIF.

On August 6, 2003, a few days prior to Southmayd’s termination, Southmayd’s branch received a referral from the Knoxville branch to perform activities that Southmayd believed violated Medicare rules. Southmayd’s branch was asked to provide services to a patient who did not meet Medicare criteria and whose insurance was not within Apria’s network. Southmayd refused to provide the services and instead, referred the patient to another company. On August 8, 2003, Southmayd reported this incident to McKinster.

On August 13, 2003, Southmayd was contacted and questioned by a region revenue manager of Apria regarding this incident. On August 15, 2003, Southmayd’s employment was terminated by Apria as part of the RIF. Southmayd was the only branch manager in Apria’s southern region to be terminated due to the RIF. He was 58 years old at the time of his termination. During Southmayd’s employment with Apria, he received satisfactory performance reviews and was adequately performing his job at the time he was terminated. However, in 2002, Southmayd had two performance problems that resulted in disciplinary action. In September 2002, Southmayd violated Apria’s gift policy when he used Apria funds to purchase a CD/music player to give away at a customer appreciation day in the Harriman branch. In addition, during calendar year 2002, the Harriman branch was penalized $20,000 on its profit and loss statement because Southmayd failed to accommodate an employee with a workers’ compensation injury.

After Southmayd was terminated, Miracle performed Southmayd’s job duties at *854 the Harriman branch. Miracle remained in this role until April 2004 when he was promoted to the position of area operations manager. Following the acquisition of another local competitor that increased revenues in the Knoxville area, Apria decided to separate the Harriman and Oak Ridge locations from Knoxville and hire a separate branch manager for each location. Southmayd submitted his resumé and application for both the Knoxville and Harriman positions. Southmayd contends he was qualified for these open branch manager positions but Apria failed or refused to contact, interview or rehire him for the positions, even though he had more experience, more education, and more tenure with Apria compared to the candidates chosen for the branch manager positions. Miracle was the decision-maker for these open positions. He testified he did not give Southmayd any consideration for the positions, despite the fact that Apria had a policy that gave preference to laid-off employees for open positions. Southmayd was older (age 60) than the candidates chosen for the branch manager positions, none of which were over the age of 40.

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

Related

Simmons v. American Apartment Management Co.
1 F. Supp. 3d 838 (E.D. Tennessee, 2014)
Johnson v. Bellsouth Telecommunications, Inc.
512 F. App'x 566 (Sixth Circuit, 2013)
Crane v. Monterey Mushroom, Inc.
910 F. Supp. 2d 1032 (E.D. Tennessee, 2012)
Richard Riddle v. First Tennessee Bank
497 F. App'x 588 (Sixth Circuit, 2012)
Perry v. Young Touchstone Co.
846 F. Supp. 2d 922 (W.D. Tennessee, 2012)
Conley v. Yellow Freight System, Inc.
521 F. Supp. 2d 713 (E.D. Tennessee, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
412 F. Supp. 2d 848, 2006 U.S. Dist. LEXIS 6145, 2006 WL 249964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southmayd-v-apria-healthcare-inc-tned-2006.