Sprague v. Navistar International Transportation Corp.

838 F. Supp. 1268, 1993 U.S. Dist. LEXIS 16741, 65 Fair Empl. Prac. Cas. (BNA) 1675, 1993 WL 499236
CourtDistrict Court, N.D. Illinois
DecidedNovember 22, 1993
Docket91 C 5194
StatusPublished
Cited by4 cases

This text of 838 F. Supp. 1268 (Sprague v. Navistar International Transportation Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sprague v. Navistar International Transportation Corp., 838 F. Supp. 1268, 1993 U.S. Dist. LEXIS 16741, 65 Fair Empl. Prac. Cas. (BNA) 1675, 1993 WL 499236 (N.D. Ill. 1993).

Opinion

MEMORANDUM OPINION AND ORDER

SHADÚR, Senior District Judge.

Richard Sprague (“Sprague”) has sued Navistar International Transportation Corp. (“Navistar”), claiming it discharged him because of his age (42 at the time of his dismissal) in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §§ 621-634. Navistar has moved for summary judgment under Fed.R.Civ.P. (“Rule”) 56. 1 For the reasons stated in this memorandum opinion and order, its motion is granted and this action is dismissed.

Summary Judgment Standards

Rule 56(c) requires that to be “entitled to a judgment as a matter of law,” the moving party must establish the lack of any “genuine issue as to any material fact” (Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986)). In that respect a “genuine issue” requires that there be sufficient evidence for a jury to return a verdict in favor of the nonmoving party (Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986)), while a “material fact” is one that “might affect the outcome of the suit under the governing law”—here ADEA (id. 477 U.S. at 248, 106 S.Ct. at 2510; Pritchard v. Rainfair, Inc., 945 F.2d 185, 191 (7th Cir.1991)).

In the application of those principles this Court need not draw “every conceivable inference from the record — only those inferences that are reasonable” in favor of nonmovant Sprague (Bank Leumi Le-Israel, B.M. v. Lee, 928 F.2d 232, 236 (7th Cir.1991)). While the standard for summary judgment is “applied with added rigor in employment discrimination cases, where intent is inevitably the central issue” (McCoy v. WGN Continental Broadcasting Co., 957 F.2d 368, 370-71 (7th Cir.1992)), that does not render the summary judgment procedure “per se improper” (Washington v. Lake County, 969 F.2d 250, 254 (7th Cir.1992)). Instead summary judgment for Navistar is appropriate if the record reveals that no reasonable jury could conclude that Sprague was fired from his job because of his age (Shager v. Upjohn Co., 913 F.2d 398, 399 (7th Cir.1990)).

Facts

Richard Sprague, born on December 1, 1948 (P. 12(n)(2) ¶ 1), began working for *1271 Navistar (then known as International Harvester) in June 1967 (P. 12(n)(l) ¶ 5) or 1968 (D. 12(m) ¶ 5) 2 as a parts-depot trainee- (D. 12(m) ¶5). 3 From March 1971 to October 1987 Sprague held a series of increasingly senior positions with the company (D. 12(m) ¶¶ 6-8). In October 1987 he was transferred to the Corporate Financial Planning and Analysis group at Navistar’s World Headquarters in Chicago (D. 12(m) ¶¶ 9-10) to assume the position of Financial Analyst (P. 12(n)(2) ¶ 1), a post that he held until he was fired early in 1991 (P. 12(n)(l) ¶ 10). That termination is the crux of this case: Sprague claims he was wrongfully discharged because of his age, while Navistar says his position was properly eliminated during a “company-wide reduction in force” (“RIF”) (D. 12(m) ¶10).

Before the RIF Sprague and another Financial Analyst Philip Pearson (“Pearson”) (age 41 4 ) reported to Manager of Truck Operations Analysis Dean Nowak (“Nowak”) (age 37) (D. 12(m) ¶ 11). Nowak in turn reported to Director of Corporate Financial Analysis Walter Rhodes (“Rhodes”) (age 52) (D. 12(m) ¶ 12). Manager of Profit/Cost Analysis James Gregorich (“Gregorich”) (age 34) also reported to Rhodes (D. 12(m) ¶ 25), while Financial Analysts Tom Wilson (“Wilson”) (age 43) and Linda Dalaba (“Dalaba”) (age 41) reported to Gregorich (D. ,12(m) ¶ 26). For his part Rhodes reported to Vice President and Controller Robert Morrison (“Morrison”) (age 52) (D. 12(m) ¶ 13), who was in charge of the Corporate Controller’s Office (Morrison Dep. 14; D.R. Ex. H, Doe. N2014). For ease of identification, this opinion will refer to the Truck Operations Analysis and Profit/Cost Analysis units (comprising Nowak, Sprague, Pearson, Gregorich, Wilson and Dalaba) collectively as the “Group.”

Sometime in the second half of 1990 Morrison and Navistar’s Chief Operating Officer John Horne formulated the “Breakeven Challenge Program” (the “Program”) to achieve cost reductions within the company (D. 12(m) ¶ 16; Morrison Dep. 53, Rhodes Dep. 29, 91). One major component of the Program was a company-wide RIF aimed at reducing overall labor costs (Morrison Aff. (D. Ex. B) ¶ 5; Rhodes Dep. 34 — 35). 5

In December 1990 Morrison held a meeting of the departmental directors who reported to him (including Rhodes) as well as directors in Navistar’s finance area to review the financial condition of the company and announce the Program (D. 12(m) ¶¶ 18-19). At the meeting Morrison asked the directors to review their departmental budgets and to consider where cost reductions could be achieved by eliminating functions, positions, personnel and discretionary expenditures (Rhodes Dep. 34-35).

It was decided at the outset that the RIF would not extend to trainees who were part of Navistar’s Financial Management Development Program (the “FMDP”) (P. l2(n)(2) ¶ 13; • Morrison Aff. ¶ 16). Begun several years before 1991, the FMDP was adopted by Navistar to rotate recent college graduates and some existing employees through various departments in the company (P. -12(n)(l) ¶ 53; Morrison Aff. ¶¶ 12-13). FMDP trainees tended to be “young people” in comparison with the average age of Navistar’s work force (Morrison Dep. 141^42,162-63). -

In December 1990 or January 1991 Rhodes met with Nowak and Gregorich, told them of Navistar’s cost reduction plan and asked each to rank his Financial Analysts (D. 12(m) ¶¶ 25-26; Rhodes Dep. 38-39). 6 Nowak as *1272 sessed Pearson as being more ambitious, aggressive and possessing greater analytical skills than Sprague (D. 12(m) ¶ 27). Consequently Nowak ranked Pearson first and Sprague second and conveyed that evaluation to Rhodes (id). 7

In January 1991 directors in the finance area again met to report on their RIF decisions. At that meeting an “available list” was compiled of those employees whose positions had been eliminated.

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838 F. Supp. 1268, 1993 U.S. Dist. LEXIS 16741, 65 Fair Empl. Prac. Cas. (BNA) 1675, 1993 WL 499236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sprague-v-navistar-international-transportation-corp-ilnd-1993.