Southworth v. N. Trust Securities, Inc.

2013 Ohio 2917
Ohio Court of Appeals·Decided July 3, 2013·No. 99250·Published·Cited by 1 cases

Opinion

Court of Appeals of Ohio

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 99250

JOHN D. SOUTHWORTH

PLAINTIFF-APPELLANT

vs.

NORTHERN TRUST SECURITIES, INC., ET AL.

DEFENDANTS-APPELLEES

JUDGMENT:

AFFIRMED

Civil Appeal from the

Cuyahoga County Court of Common Pleas Case No. CV-688175

BEFORE: Boyle, P.J., Celebrezze, J., and Jones, J.

RELEASED AND JOURNALIZED: July 3, 2013

ATTORNEYS FOR APPELLANT

Daniel M. Connell Shannon J. Polk Haber Polk Kabat, L.L.P. 737 Bolivar Road Suite 4400 Cleveland, Ohio 44115

ATTORNEYS FOR APPELLEES

Patrick O. Peters Jeremy Gilman Peter N. Kirsanow Benesch, Friedlander, Coplan, Aronoff, L.L.P. 200 Public Square Suite 2300 Cleveland, Ohio 44114

MARY J. BOYLE, P.J.:

{¶1} Plaintiff-appellant, John Southworth, appeals from a judgment denying his motion for a new trial after a jury found in favor of defendants-appellees, Northern Trust Securities, Inc. (“Northern Trust”), Michael Cogan, and Scott Dille (collectively “defendants”), on his age discrimination claim. He raises four assignments of error for our review:

1. The trial court erred in admitting evidence relating to defendants’

after-acquired evidence defense. Having done so, the trial court further erred by failing to provide a curative instruction to the jury to guide it regarding the proper consideration of such evidence.

2. The trial court erred by entering judgment in favor of defendants Mike Cogan and Scott Dille despite the jury’s failure to return a verdict in their favor.

3. The trial court erred by limiting plaintiff’s cross-examination of defendant Mike Cogan during defendant’s case-in-chief.

4. The trial court erred by denying plaintiff’s motion for a new trial based upon the foregoing irregularities and errors of law during the trial.

{¶2} After review, we find no error on the part of the trial court and affirm.

Procedural History and Factual Background

{¶3} In late 2008, after the global economic downturn, Northern Trust announced that it would reduce its workforce beginning in early 2009. As part of Northern Trust’s reduction in force (“RIF”), it eliminated 450 employees worldwide — 188 employees in the United States and three in the Cleveland office. Southworth, a portfolio manager, was one of the three employees eliminated in Northern Trust’s

Cleveland office. He was 63 years old at the time.

{¶4} Mike Cogan, president and chief executive officer of Northern Trust’s Cleveland office, notified Southworth on February 25, 2009, that he had been selected to be eliminated as part of the RIF. Cogan, who was Southworth’s direct supervisor, informed Southworth that his last day of employment would be April 25, 2009. Cogan further told Southworth that during the “60-day notification period,” Northern Trust expected Southworth to continue working to “transition and/or complete assignments.”

{¶5} Southworth, however, filed an age discrimination complaint against Northern Trust and Cogan in mid-March 2009. Southworth later amended his complaint to add Scott Dille, Cogan’s supervisor and senior vice president of Northern Trust’s midwest region. After Southworth filed his complaint, he was no longer permitted to work at Northern Trust. But Northern Trust continued to pay Southworth his full salary and benefits until April 25, 2009.

{¶6} The case was tried to a jury in April 2012. The jury returned a verdict for defendants. Southworth moved for a new trial, which the trial court denied. It is from this judgment that Southworth appeals.

I.

{¶7} In his first assignment of error, Southworth argues that the trial court erred when it permitted defendants to cross-examine him regarding Ex. MMMMMM, and when it allowed Ex. MMMMMM to be admitted into evidence through his cross-examination. Southworth claims that Ex. MMMMMM was “after-acquired evidence,” which he asserts was not applicable in this case.

{¶8} Ex. MMMMMM was a list that Southworth created of his Northern Trust clients after he was notified that his position was being eliminated. The list contained the client’s name, the number of accounts the client had with Northern Trust, the client’s total account value at Northern Trust, Southworth’s estimated probability that the client would follow him to another company, and comments that Southworth had made regarding each client.

{¶9} After Southworth was told that his position was being eliminated, he immediately began to look for other employment. He found employment “fairly quickly” at Glenmede Trust Company. He stated,

I went to work at [Glenmede] somewhere around May 11th, I think.

Whatever would be close to a Monday. My last day at Northern Trust Company was April 25th. And so I considered myself to be an employee and loyal to Northern Trust through the 25th of April. Although I was meanwhile seeking employment, I viewed myself as an employee through the last day.

{¶10} On cross-examination, Southworth admitted that he gave a copy of his client list, Ex. MMMMMM, to Frank Harding, managing director at Glenmede. Southworth testified that he had lunch with Harding in mid-March of 2009, but said that he did not give the list to Harding until after April 25, 2009. Southworth acknowledged that in Harding’s deposition, taken by defendants just before trial, Harding stated that he believed Southworth had given him the client list “either just before — I think just before [Southworth] retired” from Northern Trust.

{¶11} Southworth agreed that in the financial industry, there are “strict confidentiality requirements.” He further agreed that by violating a client’s confidentiality, it was “not just a minor offense,” but “it [was] a cardinal offense.” He also agreed that Northern Trust could face “potential liability” if the client discovered that his or her personal information was disclosed in some way, either intentionally or inadvertently.

{¶12} Southworth moved to strike defendants’ cross-examination of him regarding defendants’ “after-acquired evidence defense,” claiming that it was not relevant because he did not give the client list to Harding until after he was terminated. Southworth argued that any evidence of his conduct that postdates his selection in the RIF should have been stricken.

{¶13} In McKennon v. Nashville Banner Publishing Co., 513 U.S. 352, 115 S.Ct.

879, 130 L.Ed.2d 852 (1995), the United States Supreme Court established the “after-acquired evidence” defense, which allows a defendant employer to show that an employee would have been terminated anyway had the employer known of wrongful conduct by the employee plaintiff. Id. at 362. If the defense applies, it generally bars the employee from obtaining front pay and reinstatement, and limits back pay. See Thurman v. Yellow Freight Sys., Inc., 90 F.3d 1160, 1168 (6th Cir.1996). The Sixth Circuit Court of Appeals has also held that an employer is not entitled to a “McKennon instruction limiting damages” where the employee’s alleged misconduct arose as a direct result of the discriminatory act. Jones v. Nissan N. Am., Inc., 438 Fed.Appx. 388, 407

(6th Cir.2011).

{¶14} In denying Southworth’s motion to strike, the trial court stated:

Respectfully, I disagree. I think that cross-examination is cross-examination. And I’m going to note that during the course of your examination of Mr. Southworth that you certainly were able to elicit that he was for all intents and purposes a good employee, and I think that we were in that area quite a bit as it related to his book of business and the client relationships that he had, and I think I actually noted in my notes that you indicated or that he indicated several times that he was good at his job and did a good job. So I think it’s pretty fair game to cross him on things that might not have been good, and that all of that encompasses part of what this RIF was about from the Court’s perspective[.]

{¶15} Evid.R. 611(B) sets forth the “scope of cross-examination.” It provides that “[c]ross-examination shall be permitted on all relevant matters and matters affecting credibility.”

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Southworth v. N. Trust Securities, Inc., 2013 Ohio 2917 (Ohio Ct. App. 2013).

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