Watkins v. Sverdrup Technology

CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 11, 1998
Docket97-2104
StatusPublished

This text of Watkins v. Sverdrup Technology (Watkins v. Sverdrup Technology) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watkins v. Sverdrup Technology, (11th Cir. 1998).

Opinion

United States Court of Appeals,

Eleventh Circuit.

No. 97-2104.

William O. WATKINS, William R. Mallory, Plaintiffs-Appellants,

v.

SVERDRUP TECHNOLOGY, INC., Defendant-Appellee.

Sept. 11, 1998.

Appeal from the United States District Court for the Northern District of Florida. (No. CV-94- 30401-RV), Roger Vinson, Judge.

Before HATCHETT, Chief Judge, and GODBOLD and RONEY, Senior Circuit Judges.

HATCHETT, Chief Judge:

Appellants William Watkins and William Mallory challenge the district court's entry of

judgment as a matter of law on their claims of discriminatory discharge in violation of the Age

Discrimination in Employment Act (ADEA), 29 U.S.C. § 623(a)(1) (1994). Finding no substantial

conflict in the evidence that appellee Sverdrup Technology, Inc., terminated Watkins and Mallory

under a bona fide—albeit unconventional—reduction-in-force plan that age did not motivate, we

affirm.

I. FACTS1

Sverdrup is a support services independent contractor of the federal government. It provides

high technological engineering services in support of research, development, acquisition and testing

of conventional weapons systems to the United States Air Force at Eglin Air Force Base, Florida.

Under a "cost plus fixed award fee" contract, Sverdrup's Technical and Engineering Acquisition

1 Unless otherwise indicated, we derive the facts from the undisputed (or insubstantially conflicting) evidence before the jury. Support Group (TEAS) performs these discrete (and often classified) engineering tasks at the Air

Force's direction and discretion. The amount and variety of work that TEAS performs ebbs and

flows with the Air Force's needs.2 The Air Force reimburses Sverdrup for TEAS's direct costs,

including employees' salaries, retirement benefits and overhead. The contract caps Sverdrup's profit,

and the amount it actually receives corresponds to the percentage "grade" that the Air Force assigns

TEAS twice a year. In grading TEAS, the Air Force evaluates, among other factors, its work

product and management of employees' unproductive overhead time, labeled "G-65."

TEAS consists of eight departments. In 1988, Sverdrup hired Watkins, then age 54, and

Mallory, then age 57, as "Associate Principal Engineers" for TEAS's Guidance and Control

Department, known as "T-60."3 "Associate Principal Engineer" reflects a pay grade, not the skills

for which the employee is hired.4 Sverdrup considered Watkins and Mallory to be seeker/sensor

engineers, that is, critically skilled in laser radar, infra-red, visible optics or other wavelength

technology used to find and identify weapons' targets. Specifically, it viewed Watkins's primary

skill to be laser radar and secondary skill to be infra-red; it viewed Mallory's primary skill to be

infra-red and secondary skill to be laser radar. The vast majority of tasks that T-60's director (and

others) assigned to Watkins and Mallory involved application of these critical skills. In fact,

2 For stability purposes, however, the Air Force attempts to assign a significant number of long-term tasks to Sverdrup. 3 Bud George, then-Director of T-60, hired Watkins. Ralph Calhoun, then-Hiring Director of TEAS, recruited Mallory. Both Watkins and Mallory became at-will employees. 4 At trial, witnesses analogized "Associate Principal Engineer" to the federal government's general schedule (GS) pay scale.

2 Watkins served as a task leader for the Advanced Technology Laser Seeker System Project, or

"ATLAS."5

Beginning in late 1991, the management of TEAS—Duane Bowyers, General Manager, and

Ralph Calhoun, Deputy General Manager—learned that the Air Force's demand for seeker/sensor

services would decrease in 1992. This decline stemmed in part from what the government and

TEAS learned from the Persian Gulf War: infra-red and laser radar guided weapons do not function

very well in smoke and at night. Thus, the Air Force changed its focus to inertial and satellite

guided weapons, systems that did not involve infra-red or laser radar technology.6 Additionally, in

the summer of 1992, the Air Force canceled the ATLAS project due to its dissatisfaction, further

reducing TEAS's projected seeker/sensor work.

Based on these developments, TEAS found itself with a surplus of seeker/sensor engineers

and a shortage of engineers skilled in these newly emerging technologies. In May 1992, TEAS's

management, including its department directors, began exploring methods of reducing the number

of seeker/sensor engineers on staff.7 Ultimately, Bowyers decided that TEAS had to abolish some

jobs under a reduction-in-force (RIF) plan.8 To determine who to include in the RIF, Bowyers asked

the directors to submit the names of engineers in their department who had accumulated excessive

5 While at TEAS, Watkins worked on only one project that did not involve seeker/sensor technology. 6 Witnesses referred to this new weapons development as global positioning systems (GPS). 7 To this aim, Sverdrup terminated some employees for cause, that is, poor performance. 8 TEAS's policy defined a RIF as "the termination of employees for reasons beyond their control such as a lack of work because of reorganization, elimination or consolidation of jobs or job functions, partial or complete contract termination, or reduced level of contract effort."

3 "G-65" time. Robin Reid, Director of T-60, recommended three engineers for inclusion in the RIF:

(1) Ed Friday, then-age 43; (2) Watkins, then-age 58; and (3) Mallory, then-age 61.9

In follow-up discussions, Bowyers, Calhoun and the eight department directors discussed

Sverdrup's RIF policy. As to each engineer recommended for discharge, management considered

his or her: (1) affected job; (2) qualifications for any open position; (3) performance evaluations;

(4) personal problems; and (5) length of service.10 As the final decision-makers, Bowyers and

Calhoun accepted in part, and rejected in part, the directors' recommendations. Unfortunately for

them, Watkins and Mallory made the cut. According to management, no long-term seeker/sensor

work existed for Watkins or Mallory; they were not well-qualified for any available position within

TEAS; Reid lacked confidence in Watkins's performance due to the failure of ATLAS; and

Watkins and Mallory had been employed for only four years.11

In November 1992, Sverdrup implemented the RIF. It discharged eight TEAS Associate

Principal Engineers: Watkins, Mallory, Friday, and five engineers who worked in departments other

than T-60. Collectively, their ages ranged from 43 to 67. Within the same month, Sverdrup hired

ten new employees for TEAS, four of whom it assigned to T-60, and two of those four were

Associate Principal Engineers. Other than one 55-year-old engineer, the new hires were all under

9 Within Reid's department, Friday ranked first in "G-65" time; Watkins, ninth; and Mallory, third. 10 None of the engineers discharged under the RIF had worked for Sverdrup for more than 6 years. 11 Although witnesses testified that management also considered Watkins and Mallory to be poor performers in general, the evidence (namely their favorable performance evaluations prior to Reid's promotion to Director of T-60 in April 1992) presented a substantial conflict on that point.

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