WALSH v. DONER INTERNATIONAL LIMITED, INC.

CourtDistrict Court, E.D. Michigan
DecidedAugust 7, 2020
Docket2:18-cv-13930
StatusUnknown

This text of WALSH v. DONER INTERNATIONAL LIMITED, INC. (WALSH v. DONER INTERNATIONAL LIMITED, INC.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WALSH v. DONER INTERNATIONAL LIMITED, INC., (E.D. Mich. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

SUSAN WALSH, 2:18-CV-13930-TGB Plaintiff, vs. ORDER GRANTING IN PART, DENYING IN PART DONER INTERNATIONAL DEFENDANTS’ MOTION FOR LIMITED, INC.; DETROIT SUMMARY JUDGMENT; ROYALTY INCORPORATED; GRANTING IN PART, DONER PARTNERS, LLC D/B/A DENYING IN PART DONER, A LIMITED LIABILITY DEFENDANTS’ MOTION TO COMPANY, SEAL Defendants. Plaintiff, a former creative director at an advertising company, alleges Defendants paid her less than her male counterparts because of her sex, in violation of Title VII of the Civil Rights Act of 1964 and the Equal Pay Act, and eventually terminated her because of her age, in violation of the Age Discrimination in Employment Act and Michigan’s Elliot-Larsen Civil Rights Act. Because genuine issues of fact must be resolved by a jury on each of Plaintiff’s causes of action, Defendants’ motion for summary judgment will be denied. I. Background

Plaintiff Susan Walsh, 61, began working for Defendant Doner Partners LLC1 (“Doner”) in 2010. ECF No. 36, PageID.2273. Doner is a large advertising agency with corporate clients across many industries nationwide. ECF No. 30, PageID.1020. Plaintiff, who began her career in the advertising industry in 1984, was hired by Doner as a senior copywriter, and was subsequently promoted in 2013 to associate creative director and in 2014 to creative director. ECF No. 36, PageID.2273. Plaintiff remained a creative director until her termination in 2018. ECF

No. 49, PageID.3398. Plaintiff’s creative director salary was $127,625. ECF No. 30, PageID.2021. During her time at Doner, Plaintiff worked on a team reporting to executive creative director Randy Belcher. Id. at PageID.1021-22. Belcher’s team successfully pitched and ultimately handled a number of Doner’s large accounts, including work on advertisements for Fortune 500 companies and large hospital systems. ECF No. 49, PageID.3398; Belcher Dep., ECF No. 38-1, PageID.2397. The number of accounts Belcher’s team was responsible for at any one point in time

waxed and waned over the years, however. According to Belcher, his team brought in business but was never given new clients from within

1 Donor International Limited, Inc. and Detroit Royalty Incorporated never employed Plaintiff. Plaintiff has agreed to voluntarily dismiss those two entities. ECF No. 36, PageID.2286 (fn.23). the company that his team had not initially pitched to. Belcher Dep.,

ECF No. 38-1, PageID.2400. In 2015, Doner removed two of Belcher’s employees and terminated six others from the team as part of a “reduction-in-force.” Id. at PageID.2401; ECF No. 39-1, PageID.2493. The reduction in force also affected other teams, and in total twenty-one employees were terminated from Doner’s creative department, thirteen of whom (62%) were over the age of forty. Id. During the same year, Doner hired ten new employees, eight of whom (80%) were under the age of 40. ECF No. 39-2, PageID.2519.

In July 2016, Eric Weisberg was announced as Doner’s new global creative chief. ECF No. 36, PageID.2275. In August 2016, Doner implemented another reduction in force, terminating eight employees from the creative department, three of whom (38%) were over the age of forty. ECF No. 39-1, PageID.2496. During the course of 2016, Doner hired nineteen new employees, fourteen of whom (74%) were under the age of forty. ECF No. 39-2, PageID.2519. In March 2017, Doner terminated six employees as part of a reduction-in-force, four of whom (67%) were over the age of 40. ECF No.

39-1, PageID.2499. The next month, during a walkout in recognition of Equal Pay Day, Doner CEO David Demuth announced Doner had learned from an internal audit that women at Doner were on average paid ten percent less than men. Walsh Dep., ECF No. 37-1, PageID.2331- 32. In August 2017, Doner terminated another twelve employees, nine of whom (75%) were older than forty. ECF No. 39-1, PageID.2507. From

May through December 2017, Doner hired eighteen new employees, seventeen of whom (94%) were under the age of forty. ECF No. 39, PageID.2519-20. In January 2018, Doner hired four new employees, three of whom (75%) were under the age of forty. ECF No. 39-2, PageID.2520. In May 2018, Doner terminated seven more creative department employees in a reduction-in-force, including Plaintiff. ECF No. 39-1, PageID.2509. Of the seven employees terminated, four (57%) were over the age of forty.

Id. Doner stated that Plaintiff was selected for termination because of “current and anticipated work; economic considerations; employees’ performance and compensation; and current and anticipated skills, knowledge, and abilities needed by employees in the future.” ECF No. 30-18, PageID.2058. According to Doner, Belcher’s team (of which Plaintiff was a member) was bringing in less revenue than other teams and could no longer justify their salaries. ECF No. 30, PageID.1026. Plaintiff disputes Defendants’ stated reasons for terminating her, however, and claims that the reason Belcher’s team was bringing in less

revenue than other teams was because Doner had been taking accounts and employees from Belcher’s team and distributing them to younger employees on other creative teams. Walsh Decl. ¶ 10, ECF No. 37-2, PageID.2364. In support of her claim that Doner was engaged in a practice of terminating older employees in favor of hiring younger ones, Plaintiff cites a spreadsheet created by Weisberg, who was tasked with

determining who to terminate. That spreadsheet included a notation to the effect that if Plaintiff and six other employees (five of whom were over the age of 40) were to be terminated, it would result in “[n]o loss of modern creative muscle.” ECF No. 41-1, PageID.2809. Plaintiff also cites handwritten notes from the meeting at which Weisberg decided to terminate Plaintiff, which state, apparently in reference to Belcher (age 60 and also terminated), “where [business] going [requires] investments in different skills.” ECF No. 41-2, PageID.2828. In support of her

argument that Doner’s financial situation was not actually so bad at the time when Doner terminated Plaintiff, Plaintiff cites internal emails from April and May 2018 where Doner management describe the need for “more bodies” to support an overextended creative staff as a result of new business and employee resignations. ECF No. 41-1, PageID.2801. Plaintiff also cites a May 9, 2018, email in which Weisberg describes the “new business/project work pace . . . taking a toll on creative [employees]” being unsustainable “without an infusion of people.” ECF No. 41-1, PageID.2807. Plaintiff thus suggests that Doner needed more creative

staff to be hired, not less, at the time she was terminated. With regard to Plaintiff’s performance during her eight-year tenure at Doner, she was promoted twice and consistently received favorable reviews from her supervisor, Belcher. Belcher Dep., ECF No. 38-1, PageID.2373; ECF No. 30-8, PageID.1574 (2013 review calling her “a brilliant mind and a hard worker”). Indeed, in his deposition, Belcher

referred to Plaintiff as “among the best writers [he’d] ever worked with.” Belcher Dep., ECF No. 38-1, PageID.2373. During Plaintiff’s time at Doner, creative directors were paid between $125,125 and $220,000, with a mean of $164,663. ECF No. 42-3, PageID.2923. Plaintiff’s salary was $127,625, which was lower than twelve other creative directors, nine of whom were male (it was also lower than the salary of seven lower- ranking male associate creative directors) and higher than only one other creative director. Id. at PageID.2929.

In 2018, following an internal audit of Doner’s salaries, Weisberg performed a review of all of the employees in the creative department to determine whether any pay adjustments needed to be made.

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WALSH v. DONER INTERNATIONAL LIMITED, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/walsh-v-doner-international-limited-inc-mied-2020.