William O. WATKINS, William R. Mallory, Plaintiffs-Appellants, v. SVERDRUP TECHNOLOGY, INC., Defendant-Appellee

153 F.3d 1308, 1998 U.S. App. LEXIS 22095, 74 Empl. Prac. Dec. (CCH) 45,590, 80 Fair Empl. Prac. Cas. (BNA) 523, 1998 WL 601004
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 11, 1998
Docket97-2104
StatusPublished
Cited by48 cases

This text of 153 F.3d 1308 (William O. WATKINS, William R. Mallory, Plaintiffs-Appellants, v. SVERDRUP TECHNOLOGY, INC., Defendant-Appellee) 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
William O. WATKINS, William R. Mallory, Plaintiffs-Appellants, v. SVERDRUP TECHNOLOGY, INC., Defendant-Appellee, 153 F.3d 1308, 1998 U.S. App. LEXIS 22095, 74 Empl. Prac. Dec. (CCH) 45,590, 80 Fair Empl. Prac. Cas. (BNA) 523, 1998 WL 601004 (11th Cir. 1998).

Opinion

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. FACTS 1

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, Sverdr-up’s Technical and Engineering Acquisition 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 64, 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, Watkins served *1312 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, Bow-yers asked the directors to submit the names of engineers in their department who had accumulated excessive “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, then- 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 *1313 under 40 years of age, ranging from 24 to 35. None of these new hires, however, served as a seeker/sensor engineer. Rather, they were critically skilled in aircraft integration, systems integration and product manufacturing. Sverdrup did not hire a new seeker/sensor until September 1993, and he performed tasks involving optical train design. Despite the RIF, TEAS experienced no net decrease in its workforce throughout November 1992. 12 In fact, TEAS’s workforce increased fifteen percent that year. 13

II. PROCEDURAL BACKGROUND

Watkins and Mallory initiated this lawsuit in the United States District Court for the Northern District of Florida, alleging that Sverdrup discharged them in November 1992 because of their ages, in violation of the ADEA, 29 U.S.C. § 623(a)(1). The parties tried the case before a jury. When Watkins and Mallory rested their case-in-chief, Sverdrup moved for, but the court denied, judgment as a matter of law under Federal Rule of Civil Procedure 50(a). 14 At the close of all the evidence, Sverdrup again moved for judgment as a matter of law under rule 50(a). The court reserved ruling and submitted the case to the jury.

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Bluebook (online)
153 F.3d 1308, 1998 U.S. App. LEXIS 22095, 74 Empl. Prac. Dec. (CCH) 45,590, 80 Fair Empl. Prac. Cas. (BNA) 523, 1998 WL 601004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-o-watkins-william-r-mallory-plaintiffs-appellants-v-sverdrup-ca11-1998.