Tharon Paup v. Gear Products, Inc.

327 F. App'x 100, 411 B.R. 100
Court of Appeals for the Tenth Circuit·Decided June 19, 2009·No. 07-5164·Unpublished·Cited by 32 cases

Opinions

ORDER AND JUDGMENT*

PER CURIAM.

Gear Products, Inc. discharged Gwen Coffelt, Tharon Paup, and Carol Shuffitt in 2001. The three former employees filed suit contending that the company based their discharge on impermissible age discrimination in violation of the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. (“ADEA”). The district court granted summary judgment to Gear Products, and the plaintiffs now seek reversal of that disposition.

Before we reach the merits of the plaintiffs’ ADEA claims, Gear Products submits that Ms. Coffelt’s claim should be dismissed because she failed to disclose it as an asset in her personal bankruptcy proceedings. In the company’s view, Ms. Cof-felt should not be allowed to keep for herself an asset she had a duty to reveal and potentially remit to her creditors during her bankruptcy. Our precedent compels us to agree and so we affirm the entry of summary judgment against Ms. Coffelt on this basis. Arriving at the merits of Ms. Paup’s and Ms. Shuffitt’s remaining ADEA claims, and viewing the facts adduced at summary judgment in the light most favorable to the employees, we conclude that those plaintiffs have advanced a [103] prima facie case of age discrimination and proffered evidence from which a reasonable trier of fact could find Gear Products’s nondiscriminatory reasons for their discharge pretextual. At the end of the day, then, we reverse the district court’s entry of summary judgment against Ms. Paup and Ms. Shuffitt but affirm its entry against Ms. Coffelt.

I

A

From its Tulsa, Oklahoma production facility, Gear Products sells power transmissions and gears used in the forestry, construction, and utilities industries. In early 2001, the company began to experience a series of financial setbacks. Responding to its difficulties, the company asked for voluntary resignations, cut back on overtime, reduced its workforce by way of attrition, and consolidated vacant positions. Despite its efforts, Gear Products’s parent company, Blount International, Inc. (“Blount”), instructed Gear Products that it needed to reduce its operating costs further by undertaking what became a series of three reductions in force (“RIF”) that led to the discharge of approximately 39 (out of some 170 or so) employees.

In the particular RIF that gives rise to the suit before us, Gear Products’s third, Blount told Gear Products that, despite all the company’s prior efforts and two earlier RIFs, at least three more employees had to go. Tim Simmons, the company’s Fed. R.Civ.P. 30(b)(6) corporate representative, offered the following as his understanding of how Gear Products responded.

Gear Products’s President, Tom Brenton, called a meeting with his management committee to decide which employees would be discharged. Besides Mr. Brenton, the committee included Mr. Simmons, the company’s controller, human resources manager Robin Bond, vice-president of engineering Steve Copeland, quality manager Dick Gregory, as well as sales and marketing vice president Jeffrey Schmale. The committee was informed that Gear Products’s core business would be best insulated from adverse effects if the RIF were limited to the company’s eight administrative or clerical employees, a pool that included the plaintiffs. The committee then agreed to rank each of the eight employees on a five-point scale in each of the following categories: flexibility, sense of urgency, initiative, self-starter, multitasking abilities, accuracy, and attitude. The three lowest-ranked employees would be released.

After committee members finished scoring each employee, the committee disbanded while either Mr. Brenton or Ms. Bond

compiled the scores. The scores were as follows, together with each employee’s age at the time, and the three plaintiffs before us noted in bold:

Name

Sally Farmer Alissa Tanner Brian Callendar Bill Vickers Gwen Coffelt Tharon Paup Peggy West Carol Shuffitt

28 points 50

19.5 points 33

19 points 36

19 points 50

18.5 points 63

15 points 58

15 points 58

10 points 59

When the other committee members returned, they were told that Ms. Shuffitt, Ms. Paup, and Ms. Coffelt would be discharged. They were not informed of the employees’ scores in the rankings. Neither were they informed that Ms. Bond or Mr. Brenton deviated from the plan to discharge the three lowest-ranked employees by selecting Ms. Coffelt, rather than Ms. West, for discharge.

B

Believing their terminations were based on unlawful age discrimination, the plain[104] tiffs filed suit before the Oklahoma Human Rights Commission (“OHRC”).1 In response to the suit, Ms. Bond (evidently) prepared a document entitled the “Overview Matrix,” which purports to explain why each employee was terminated.2 The Overview Matrix tells a somewhat different story about the plaintiffs’ termination than the one the company’s corporate representative, Mr. Simmons, offered as his understanding.

For Ms. Paup, the Overview Matrix represents that the company informally approached her with the idea of transferring her from her current position as purchasing coordinator to a position she had held previously. Had she “shown any interest in returning to her original position,” she would likely not have been terminated. App. at 106. But she indicated her reluctance to move. According to the Overview Matrix, the company then decided that, “while [her] work performance was good,” it had to terminate her because “her position was recognized as one that had to be eliminated to cut costs, at least temporarily.” Id. Because it could not lay off Ms. Paup until another employee, whose work Ms. Paup had temporarily taken over, returned from FMLA leave, the company decided to delay the layoffs.

As for Ms. Shuffitt, the company asserts in the Overview Matrix that “the decision to eliminate [her] position was made mainly due to the fact that her position was one that would have the least negative impact on the organization as a whole.” Id. at 116. The Overview Matrix notes some performance issues Ms. Shuffitt had been having — such as talking too much with others and not learning necessary software skills — and references her low score in the rankings process undertaken by the management committee. The company explored placing Ms. Shuffitt in a sales secretary position as it was non-expendable, but ultimately decided against doing so because of the steep learning curve that would be involved. Another option the company explored was to place Ms. Shuf-fitt in the switchboard operator position, which was also deemed non-expendable. However, another employee, Ms. West, excelled in that position, and Ms. Shuffitt had indicated previously that she resented doing tasks she perceived as beneath her; Ms. West thus was retained for the position over Ms. Shuffitt.

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Tharon Paup v. Gear Products, Inc., 327 F. App'x 100, 411 B.R. 100 (10th Cir. 2009).

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