Steeno v. Wabash National Trailer Centers

822 F. Supp. 2d 855, 2011 U.S. Dist. LEXIS 112799, 113 Fair Empl. Prac. Cas. (BNA) 1136, 2011 WL 4606698
CourtDistrict Court, N.D. Indiana
DecidedSeptember 30, 2011
Docket2:10-cv-00014
StatusPublished

This text of 822 F. Supp. 2d 855 (Steeno v. Wabash National Trailer Centers) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steeno v. Wabash National Trailer Centers, 822 F. Supp. 2d 855, 2011 U.S. Dist. LEXIS 112799, 113 Fair Empl. Prac. Cas. (BNA) 1136, 2011 WL 4606698 (N.D. Ind. 2011).

Opinion

MEMORANDUM OPINION AND ORDER

JON E. DeGUILIO, District Judge.

Now before the Court is Defendant’s Motion for Summary Judgment [DE 39], filed on January 31, 2011. Plaintiff responded on May 23, 2011 [DE 64], and Defendant replied on June 3, 2011 [DE 65]. For the following reasons, Defendant’s Motion for Summary Judgment is GRANTED.

I. BACKGROUND

Plaintiff, Charles Steeno, began his employment with Wabash National Trailer Centers on October 1, 2001. DE 40-2 at 2. Steeno worked at Wabash’s Calhoun, Georgia location, a Used Trailer Center operated by Wabash Used Fleet Sales. Id. at 1. At all times relevant to the present case, Steeno’s job title was Southeast Regional Used Trailer Director. DE 40-4 at 1. His responsibilities included buying and selling trailers, visiting dealers, meet *857 ing budget expectations, and generating sales. Id. Dudley Gayman, the director for the division, was Steeno’s direct supervisor. Id. Steeno was 72 years old when his employment was terminated on April 1, 2009. DE 40-2 at 3.

Beginning in or about 2008, Wabash began to experience serious financial problems. DE 40-4 at 2. In 2008, Wabash, as a whole, lost approximately $124.7 million. Id. In response, Wabash implemented a company-wide 10% reduction in pay for all exempt-level salaried employees. DE 40-2 at 3; DE 40-4 at 2. Steeno’s pay was reduced from $102,451 to $92,205.90 annually. DE 40-2 at 3. Wabash also began drastically cutting its personnel, cutting approximately 1,000 jobs in 2008. Id.

During the first quarter of 2009, Wabash’s financial losses were approximately $28.3 million, prompting further cost-cutting measures. DE 40-4 at 2. In an effort to cut costs, Wabash stopped production at multiple plants and assembly lines. Id. Between January 2009 and June 2009, approximately 70 salaried employees were terminated. DE 40-2 at 3. The terminated employees’ ages ranged from 23 years old to 73 years old, and approximately one third of the employees terminated were under the age of 40. Id.

Beginning in January 2009, Gayman and Bruce Ewald, Wabash’s Senior Vice-President for Sales and Marketing considered what cost-cutting measures could be taken at each of the Used Trailer Division locations, including the Georgia location where Steeno worked. DE 40-4 at 3; DE 40-5 at 2. Ewald and Gayman initially terminated a 41-year-old Fleet Damage Recovery Supervisor from Wabash’s Indiana Used Trailer Center. DE 40-2 at 3; DE 40-4 at 3; DE 40-5 at 2. When this single termination from the Used Trailer Division proved insufficient to remedy the division’s financial losses, Ewald and Gayman determined that further cuts were necessary. DE 40-4 at 3. Ewald and Gayman examined the volume of business performed at each Used Trailer Center location, as well as the duties performed by employees at each location. DE 40-4 at 3; DE 40-5 at 2. They found that the Georgia, Texas, and Illinois locations were overstaffed based on the volume of business conducted at each location. DE 40-4 at 3; DE 40-5 at 2. Ewald and Gayman determined that one employee from each location should be terminated to reconcile the overstaffing problem. DE 40-4 at 3; DE 40-5 at 2. Ewald and Gayman decided to terminate a 43-year-old Used Trailer Coordinator and a 36-year-old Used Trailer Account Manager at the other Used Trailer Centers. DE 40-2 at 4; DE 40-4 at 4; DE 40-5 at 2.

When considering the employees at the Georgia Used Trailer Center, Ewald and Gayman compared Steeno to 65-year-old Used Trailer Manager Anthony Angio. DE 40-4 at 3; DE 40-5 at 2. They determined that both Steeno and Angio were performing their duties equally well, and that either employee could be terminated without disrupting the day-to-day business operations of that location. DE 40-4 at 4; DE 40-5 at 2. At the time, Angio’s annual salary was $69,988.50, compared to Steeno’s annual salary of $92,205.90. DE 40-2 at 3. Both Ewald and Gayman stated in their affidavits that the overall goal of terminating an employee was to save the most money for the company, and therefore they chose to terminate Steeno, whose salary was more than $20,000 per year higher than Angio’s. DE 40-4 at 3-4; DE 40-5 at 2. Both also stated that age was not a factor in deciding who would be terminated, and that it was never discussed as a part of the decision-making process. DE 40-4 at 4; DE 40-5 at 2.

On April 1, 2009, Human Resources Manager Mick Maris met with Steeno to advise him of his termination. DE 40-2 at *858 3. At no time during this meeting did Maris indicate that Steeno was being terminated because of his age. Id. In his affidavit, Maris stated that he was under the impression that Steeno’s termination was a result of the economic downturn Wabash had experienced. Id. Following Steeno’s termination, his responsibilities were absorbed by Angio and the Northeast Regional Used Trailer Director, Tom Heuer, a fifty-four year old. DE 40-4 at 4.

On August 27, 2009, Steeno filed the instant lawsuit, alleging that he had been terminated in violation of the Age Discrimination in Employment Act (“ADEA”), as well as claiming a violation of the Fair Labor Standards Act (“FLSA”). This Court subsequently dismissed his FLSA claim, leaving only his age discrimination claim pending. DE 36.

A. Steeno’s Deposition

On December 3, 2010, Steeno gave an oral deposition in conjunction with this action. DE 40-3. After being sworn in, Steeno confirmed that he had been working for Wabash since October 2001, just before his sixty-fifth birthday. DE 40-3 at 6-7. Steeno stated that he signed a written acknowledgment that his employment with Wabash was at-will employment. Id. at 9. Next, Steeno was asked to review the salaried associate handbook from July 2004. Id. at 10-11. He stated that while he did not remember receiving it, he may have as a part of the company’s new-hire paperwork. Id. at 10. He also stated that he did not remember reading the company’s Equal Employment Opportunity Policy. Id. at 11.

Steeno stated that he was not entirely aware of the financial difficulties Wabash faced in 2008. DE 40-3 at 14. He explained that he was not aware of the amount of money Wabash lost in 2008, but that he had a level of understanding of the difficulties due to the general state of the economy. Id. He affirmed that salaries were cut by ten percent as a cost cutting measure. Id. at 15. He also stated that he was aware that the used trailer division did not achieve its goals for the year 2008. Id. When asked about the company’s financial well-being in 2009, Steeno again answered that he was aware the company lost money, but was not aware of the figure. Id. at 16-17. He said that he was aware that the company took additional cost-cutting measures: specifically, the company stopped contributing to employee 401(k)s. Id. at 17. Steeno acknowledged that he had prepared a report in February 2009 that showed his location was forty-one sales below the budgeted number for the month of February, and fifty-five sales below the budgeted number for year-to-date sales in 2009. Id.

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822 F. Supp. 2d 855, 2011 U.S. Dist. LEXIS 112799, 113 Fair Empl. Prac. Cas. (BNA) 1136, 2011 WL 4606698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steeno-v-wabash-national-trailer-centers-innd-2011.