Tenuta v. International Business Machines Corp.

CourtDistrict Court, N.D. Illinois
DecidedAugust 31, 2023
Docket1:22-cv-06087
StatusUnknown

This text of Tenuta v. International Business Machines Corp. (Tenuta v. International Business Machines 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
Tenuta v. International Business Machines Corp., (N.D. Ill. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

BRUCE TENUTA, ) ) Plaintiff, ) ) No. 22 C 6087 v. ) ) Judge Jorge L. Alonso INTERNATIONAL BUSINESS MACHINES ) CORP., ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

Plaintiff, Bruce Tenuta, claims that defendant, International Business Machines Corp. (“IBM”), laid him off because of his advanced age, in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §§ 621 et seq. Based on an arbitration provision in plaintiff’s severance agreement, the parties submitted plaintiff’s claim to arbitration, and the arbitrator ruled in IBM’s favor. Plaintiff petitions this Court to vacate the arbitration award, arguing that the arbitrator refused to hear crucial evidence, in violation of the Federal Arbitration Act, 9 U.S.C. § 10(a)(3). For the following reasons, the petition is denied. BACKGROUND

I. Plaintiff’s IBM Employment and Termination The Court takes the following factual background from the “Undisputed Facts” section of the arbitrator’s Final Award. (Final Award, ECF No. 5-3, at 4-11.) On January 1, 2017, plaintiff’s employer, Truven Health Analytics (“Truven”), was acquired by Watson Health, a division of IBM. After the acquisition, plaintiff became a “band 10,” vice-president level employee (the highest non-executive level) for IBM, working out of IBM’s Chicago office. Plaintiff managed the Product Support team, part of the larger Provider Client Experience team within Watson Health’s Value Based Care-Provider (“VBC”) unit. He reported to Sharlyn Jordan, who oversaw day-to-day functions of the Provider Client Experience Team. Jordan reported to Martha Thorne, the general manager of the VBC unit.

In the wake of the acquisition, plaintiff’s primary responsibility was overseeing the integration of certain Truven business activities into Watson Health’s operations. As the integration proceeded and operations were streamlined, the ambit of plaintiff’s authority narrowed; he went from supervising between one hundred and two hundred employees to supervising a total of twenty, and some of those only indirectly. Despite the streamlining of operations, Watson Health remained unprofitable. In approximately February 2018, Watson Health’s leadership advised Thorne that she would have to implement a “resource action” or “RA,” IBM’s term for a reduction in force or layoff, reducing the headcount within her management chain by about four hundred employees. By this time, the migration of products that plaintiff was supervising was complete for some products, and ahead of

schedule for others. Jordan anticipated the transfer of business activities under plaintiff’s supervision would be complete by August 2018. Thorne directed Jordan to select thirty-five employees from her team for termination. Concerned that her team would struggle to keep up with its work if reduced in such numbers, Jordan asked Thorne for advice about whom to select. Thorne informed Jordan that Product Support would move from VBC to “Ops/Support,” a separately managed team, and that the Market Expert and CDQM products, two of the products the Provider Client Experience team supported, were being eliminated (or “going away”). Jordan considered approximately one hundred employees for termination, most of whom were lower-level band 6 or 7 employees. She ultimately selected thirty-five, including plaintiff. She identified the elimination of at least 80% of plaintiff’s work as the reason for selecting him for termination. In her mind, Jordan explained, plaintiff’s primary job duties were to supervise

work that would be complete by the time the resource action was to be implemented, so he was a logical choice for separation. Plaintiff separated from IBM on August 31, 2018, at age 67. He received severance in exchange for executing a separation agreement that included an arbitration clause. The Market Expert and CDQM products were not immediately eliminated, causing the Ops/Support to become overwhelmed after a few months and to require the transfer of a “band 9” manager to the Ops/Support team. II. Plaintiff’s Arbitration Proceeding On January 17, 2019, plaintiff submitted a demand for arbitration, asserting a claim of age discrimination. The parties’ arbitration agreement authorized the arbitrator to grant discovery upon request if he “finds that the [requesting] party has demonstrated that it needs that discovery to

adequately arbitrate the claim, taking into account the parties’ mutual desire to have a speedy, less- formal, cost-effective dispute-resolution mechanism.” (Separation Agr. at 28, ECF No. 5-4 at 29.) It also authorized the parties to file “motions permitted by the Federal Rules of Civil Procedure, including . . . motions to compel discovery” and “motions for summary judgment.” (Id. at 27, ECF No. 5-4 at 28.) In 2017, IBM CEO Ginni Rometty had publicly boasted that 50% of IBM employees were millennials. In discovery, plaintiff sought data from IBM to support a theory of systematic age discrimination. He filed a motion to compel IBM to provide certain “company-wide discovery” dating back to 2012, but the arbitrator ruled that plaintiff must limit his request to the years after his employment with IBM began in 2017. Further, the arbitrator ruled that plaintiff was not entitled to the broad discovery he was seeking, in the absence of any “particulars showing a meaningful nexus between Tenuta’s Resource Action in the Watson Health Unit and RA’s elsewhere.” (Arbitrator’s Scheduling Order No. 10 (Oct. 28, 2020), ECF No. 22-2.) Plaintiff narrowed his

request, but IBM maintained that the request was still overbroad, so plaintiff renewed his motion to compel. The arbitrator ruled that IBM was required to disclose certain information about the approximately one hundred employees whom Jordan considered for the 2018 resource action, but he did not require IBM to provide demographic data about all of the employees Jordan supervised, as plaintiff had requested. (Arbitrator’s Order Regarding Discovery (Apr. 19, 2021) at 2, ECF No. 5-6.) Plaintiff hired a labor economist, Dr. Mark Killingsworth, to analyze Jordan’s selection decisions. Based on the limited data with which he was provided, Dr. Killingsworth was unable to determine that older workers were overrepresented among those who lost their jobs in the 2018 resource action. He warned, however, that this result was of limited probative value because he

did not have access to demographic data about the employees who Jordan supervised but did not consider for termination. If, for example, Jordan supervised hundreds of employees and most of them were under forty, then it might be possible to “conclude that younger employees were disproportionately spared from being terminated.” (Pl.’s Br. Ex. A at 7, ECF No. 5-1.) In May 2021, plaintiff filed yet another motion to compel, again seeking broader demographic data about IBM employees reporting to Jordan but not considered for termination. The arbitrator denied the motion, reasoning that the requested information was unlikely to produce relevant evidence and would unduly delay the completion of discovery. (Arbitrator’s Order No. 12 (May 19, 2021), ECF No. 22-3.) IBM filed a motion for summary judgment on August 20, 2021. In September 2021, while the motion was still pending, plaintiff contacted the arbitrator to inform him that he had become aware of certain documents produced by IBM in Townsley v. IBM, Case No. 20 cv 969 (W.D. Tex.), which, plaintiff believed, provided additional support for his claims. Plaintiff had viewed

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