Treadway v. California Products Corp.

659 F. App'x 201
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 1, 2016
DocketNo. 15-5718
StatusPublished
Cited by7 cases

This text of 659 F. App'x 201 (Treadway v. California Products Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Treadway v. California Products Corp., 659 F. App'x 201 (6th Cir. 2016).

Opinion

BERG, District Judge.

John Treadway sued his employer, California Products Corporation (“CPC”), [202]*202claiming that he was terminated from his job in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. The district court granted summary judgment to CPC on Treadway’s claim, holding that he did not establish a prima facie case of age discrimination and, even assuming that he had, that Treadway failed to show that CPC’s purported reason for firing him was pretextual. We affirm the judgment of the district court for the following reasons.

I.

Treadway began working for CPC in August 2009 when it acquired Treadway’s previous employer, Progress Paint Manufacturing Company (“Progress”). Tread-way had been covering a sales territory for Progress that included accounts in northeast Tennessee, southeastern Kentucky, Virginia, North and South Carolina, and the Bahamas. Treadway continued working as a salesman for CPC until his termination in December 2011 at the age of 69.

In 2009, Treadway, then age 66, notified his supervisor Noel Booker that he had decided to “slow down” and sought to reduce his sales territory because it required “a lot of travel”. Treadway called Booker on March 9, 2009 to discuss a plan. That day, Treadway and Booker discussed reducing Treadway’s accounts to those in the Bahamas and those within a 40-mile radius of where Treadway lived in Johnson City, Tennessee. Booker understood from this discussion that Treadway wanted to retire by the end of 2009, but Treadway denies ever telling anyone that he wanted to retire.

On or about March 17, 2009, Booker prepared a document outlining the terms that he and Treadway had discussed over the phone. For reasons he cannot recall, Booker prepared two separate versions of this document, both dated March 17, 2009. Entitled “Compensation Plan April 2009— forward”, the two versions are identical with the exception of one word used in a subheading identifying the section that outlines the 2010 terms of Treadway’s compensation. In Version 1, this subheading reads “2010 (assumes you want to semi-retire)”. In Version 2, it reads “2010 (assumes you retire)”. No records exist indicating which version was created first or the reason for the one-word difference in language.

Both versions of the agreement state that the “premise of this plan” is to eliminate the territories of salesmen David Harrison and Bill Huff and divide their accounts between Treadway and fellow salesman David Lloyd. Both versions contemplate that Treadway would temporarily assume responsibility for Harrison’s accounts in the Carolinas and Virginia until a new salesperson could be hired in 2010 to relieve Treadway of the “Harrison territory”. Treadway would then “go from Company employee to independent sales agent” responsible only for the three accounts in the Bahamas and his “current accounts within approximately 40 miles of Johnson City”. All other Treadway accounts would then be ré-assigned to David Lloyd or the new salesperson, and Tread-way’s compensation would become commission-based. Both versions provided that Treadway would leave his position as an employee and become an independent agent, that the arrangement could be renewed annually “per mutual agreement by both parties,” and that “[njotification of intent [to renew] must be made no later than 60 days prior to December 1.”

As provided in the agreement, Progress consolidated the Huff and Harrison territories on March 20, 2009. By April 1, 2009, Treadway had assumed responsibility for all of Harrison’s accounts in North and South Carolina and Virginia as well as [203]*203Huffs two Bahamas accounts. Treadway-had also ceded some of his accounts in North Carolina, Tennessee, and Kentucky to Lloyd, and two Kentucky accounts to fellow salesman Bruce Shoemaker.

On or about August 7, 2009, Progress formally announced that it has been acquired by CPC. When Progress was acquired, its sales force consisted of 12 people. CPC voluntarily retained all of the Progress sales employees, including Treadway. Of these sales employees, six were over 60 years old, five were over 50 years old, and one, the youngest, was 49. Treadway was the oldest sales employee by approximately ten months.

On August 9, 2009, Treadway sent Booker a handwritten note asking whether the March 9, 2009 agreement worked out with Progress would “still be ok for the start of next year” and would “hold for our new company?” Treadway also called Booker “on numerous occasions” after the acquisition to discuss whether the March 2009 agreement was still valid. Treadway understood from these conversations that CPC was going to honor the March 2009 agreement, but admits that no one other than Booker ever told him so. Booker, by contrast, remembers telling Treadway that CPC might use Treadway as an independent agent “after [Treadway] retired,” but that Booker could not make any guarantees because CPC was in a period of transition after acquiring Progress. Booker asked Treadway to wait to discuss ’ the “potential agency arrangement” until after CPC had hired someone to take over the Carolinas, and Treadway did not object. Treadway continued to service his interim sales territory.

After CPC acquired Progress’s assets, CPC entered a transitional period that involved evaluating, reducing, and redistributing the existing sales territories of almost all the CPC salesmen. On September 9,2009, Booker attended a transition meeting with Steven McMenamin, CPC’s Chief Financial and Chief Operating Officer, Peter Longo, CPC’s Chief Executive Officer, and Daniel Cohen, the Executive Vice President of California Paints, a division of CPC. Booker circulated his notes from that meeting via e-mail on September 14, 2009. In those notes, Booker lists Tread-way’s retirement as a key sales force issue, stating that Treadway “is slated to retire November 30, 2009” but “he would like to work as an independent agent” handling three Bahamas accounts and “accounts within an approximate 40 mile radius of Johnson City.” Treadway’s retirement “will necessitate needing to hire a replacement to travel portions of Virginia, Tennessee, and the Carolinas.”

In early December 2009, Treadway called Booker to ask whether CPC had hired a new salesman for the Carolina territory. Booker said no, but assured Treadway that he would do so as soon as possible. Treadway then confirmed that he would continue working in. 2010 under the same salary agreement as in 2009.

On December 13, 2009, Booker e-mailed McMenamin and Longo regarding their December 9, 2009 conversation about “John Treadway’s impending retirement, his possible change, in status from employee to independent agent, and the future of the Carolinas territory.” To this e-mail, Booker attached Version 1 (“semi-retire”) of the March 9, 2009 agreement, referring to it as “the deal I made John last March.” Booker noted that Treadway had “agreed to remain an employee and continue his current duties until we make some other arrangement.”

No new sales employee was hired in 2010 to assume responsibility for any of Treadway’s territory. On June 9, 2010, Cohen e-mailed Longo and McMenamin his recommended changes to the existing sales [204]*204territories. His proposal for the South Atlantic Market was based on the assumption that Treadway would soon retire.

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