Windover v. Sprague Technologies

834 F. Supp. 560, 1993 U.S. Dist. LEXIS 13239, 63 Empl. Prac. Dec. (CCH) 42,773, 1993 WL 372124
CourtDistrict Court, D. Connecticut
DecidedAugust 25, 1993
DocketCiv. 5-92-164 (WWE)
StatusPublished
Cited by5 cases

This text of 834 F. Supp. 560 (Windover v. Sprague Technologies) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Windover v. Sprague Technologies, 834 F. Supp. 560, 1993 U.S. Dist. LEXIS 13239, 63 Empl. Prac. Dec. (CCH) 42,773, 1993 WL 372124 (D. Conn. 1993).

Opinion

*562 RULING ON CROSS MOTIONS FOR SUMMARY JUDGMENT AND MOTION TO STRIKE

EGINTON, Senior District Judge.

Plaintiff Fred Windover brings this civil rights action under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. Plaintiff also brings a state law claim for tortious interference with a business expectancy. Defendants moved for summary judgment pursuant to Fed.R.Civ.P. 56 on March 12, 1993. Plaintiff then cross-moved for summary judgment, after which defendants moved to strike evidence submitted by the plaintiff in connection with his summary judgment papers. For the reasons set forth below, the defendants’ Motion for Summary Judgment will be granted and their Motion to Strike will be denied in part and granted in part. Plaintiffs Cross Motion for Summary Judgment will be denied.

FACTS

Plaintiff was employed for 23 years as a lawyer for defendant Sprague Electric Co. (“SE”), a subsidiary of Penn Central Corporation (“PCC”). From 1984 to 1987, plaintiff held the positions of Vice President, General Counsel, and Secretary of SE. In 1987, Sprague Technologies, Inc. (“ST”) was formed as a holding company for SE. Edward Kosnik was selected as ST’s President and Chief Executive Officer, Stephen Meyers was named as ST’s Senior Vice President Administration, and Augustus duPont was appointed ST’s Vice President, General Counsel, and Secretary. All three of these officers had worked at PCC prior to the spinoff. Most importantly for the purposes of this case, Kosnik appointed duPont General Counsel because of his experience in complex securities law matters, because he had a direct working relationship with Kosnik and with members of ST’s board of directors, and because he had a good relationship with the law firm of Skadden, Arps, Slate, Meagher and Flotó (“Skadden”), which had assisted PCC in the spin-off of SE.

Shortly after ST’s formation, ST decided to close SE’s corporate headquarters in Lexington, Massachusetts and to consolidate the operations of the two corporate headquarters in Connecticut. Consequently, ST discharged a 34-year old member of SE’s legal department and transferred plaintiff and another lawyer, Stuart Kovar, to ST’s Greenwich, Connecticut office. Plaintiff was given the additional titles of Staff Vice President, Deputy General Counsel, and Assistant Secretary of ST. He reported to duPont.

In late 1988, ST embarked on a corporate restructuring and downsizing plan to reduce costs and increase profits. Prior to any layoffs, Susan Cummiskey, one of ST’s Senior Human Relations Officers, circulated an internal memorandum explaining ST’s procedures prior to any expected layoffs. The memo stated:

[W]e are requesting that all units submit the names of all salaried and hourly employees who are to be terminated or laid off to me or Gus duPont prior to any action being taken. We will review the affected employees to determine the Company’s liability from an Equal Employment Opportunity and potential charge of discrimination standpoint. We will ensure that this legal review does not hinder any business decisions or slow down the process.

While this memo appears to indicate that the company was taking the anti-discrimination laws into consideration, plaintiff contends that no meaningful review of potential liability was conducted. 1 Also in connection with the potential reduction in force, Kosnik told plaintiff that the anti-discrimination laws would not prevent ST from downsizing.

ST ultimately discharged approximately one-third of the personnel within each of its corporate departments in 1988. Kovar, the *563 thirty-six year old lawyer who was transferred to Greenwich the year before, was terminated during this restructuring. The average age of executives employed by ST increased from 39.9 years to 42.5 years in 1988.

Because ST’s economic performance did not improve after the 1988 downsizing, in 1990 ST determined that a further reduction in force would be necessary. In connection with this second downsizing, Kosnik allegedly told duPont to get rid of the “Sprague old guard,” which plaintiff contends applied to him. Ultimately, ST discharged everyone in its legal department, except for duPont. ST also discharged a number of employees from other departments. After this second downsizing, the average age of executives employed by ST increased from 42.5 years to 43.5 years.

Plaintiff received a notice of termination in the spring of 1990 and was given a termination date in July, 1990. At this time, plaintiff also received information about the severance benefits to which he would be entitled. Plaintiff claims he, not duPont, should have been retained as General Counsel of ST in 1990, since duPont was not qualified for the job in that he was not a member of the Connecticut bar.

After notifying Windover about his termination, ST changed its plans and decided to spin-off SE’s semiconductor division. Pursuant to this decision, ST planned to make Windover General Counsel of the semiconductor division. Plaintiffs termination date was extended indefinitely, by an oral agreement, until the semiconductor division was spun-off. Meyers, ST’s Senior Vice President of Administration, told plaintiff that if he became General Counsel of the spin-off company, he would not be entitled to severance benefits. Although this appears to be consistent with ST’s policy of not providing severance to employees who transfer to different Sprague divisions, plaintiff challenged Meyer’s position on severance. The parties do not appear to have reached an agreement on this issue.

In August, 1990, Sanken Electric Company, Ltd. (“Sanken”), a Japanese company, expressed an interest in buying SE’s semiconductor division, thereby eliminating the need for a spin-off. To facilitate the deal, ST agreed to pay a retention bonus to specific prospective key employees of the semiconductor division who agreed to stay with the new Sanken semiconductor company (“Allegro”) for a year after the sale. ST also agreed to pay a relocation benefit to Windover. The retention and relocation benefit package was worth approximately $75,000. Plaintiff was among the employees offered the retention bonus, since ST contemplated that Sanken would hire plaintiff as General Counsel of the new company. 2 While the sale was being arranged, Windover continued to serve in his same position with ST.

In September, 1990, Windover filed an age discrimination complaint against ST with the Connecticut Commission on Human Rights and Opportunities (“CCHRO”) and with the Equal Employment Opportunity Commission (“EEOC”). After this complaint was filed, ST sent plaintiff an “alternatives document.” This document required plaintiff to choose between terminating his employment with ST and receiving the standard severance package or transferring to the semiconductor division prior to closing and receiving the relocation package. According to plaintiff, ST attempted to force him to choose between these two alternatives in retaliation for filing a discrimination claim.

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834 F. Supp. 560, 1993 U.S. Dist. LEXIS 13239, 63 Empl. Prac. Dec. (CCH) 42,773, 1993 WL 372124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/windover-v-sprague-technologies-ctd-1993.