Wright v. Kosciusko Medical Clinic, Inc.

791 F. Supp. 1327, 1992 U.S. Dist. LEXIS 6160, 58 Fair Empl. Prac. Cas. (BNA) 1550, 1992 WL 89164
CourtDistrict Court, N.D. Indiana
DecidedApril 27, 1992
DocketS91-326M
StatusPublished
Cited by15 cases

This text of 791 F. Supp. 1327 (Wright v. Kosciusko Medical Clinic, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright v. Kosciusko Medical Clinic, Inc., 791 F. Supp. 1327, 1992 U.S. Dist. LEXIS 6160, 58 Fair Empl. Prac. Cas. (BNA) 1550, 1992 WL 89164 (N.D. Ind. 1992).

Opinion

MEMORANDUM AND ORDER

MILLER, District Judge.

Marjorie Wright brings this action under the Age Discrimination in Employment Act, 29 U.S.C. §§ 623 & 626 (1988) (the “ADEA”), and under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e (1988) (“Title VII”). The defendant seeks summary judgment on the ground that the plaintiff’s claims fail to satisfy a necessary jurisdictional prerequisite. Specifically, the defendant contends that it had too few employees to be subject to the ADEA and Title VII. For the reasons that follow, the court grants the summary judgment motion in part. Applying the law of the circuit, the court concludes that the ADEA does not apply, but, resolving an issue not squarely addressed by any authority cited by the parties, the court concludes that Title VII applies to the defendant.

I.

The defendant, Kosciusko Medical Clinic, Inc. (“the Clinic”), operates a medical facility in Warsaw, Indiana. Ms. Wright worked as the Clinic’s Officer Manager for seventeen years. In September 1989, the Clinic notified Ms. Wright, then 60 years old, of its intention to terminate her employment. She remained in the defendant’s employ for about two more months, during which time she helped to assist and train Mr. Lynn Reynolds, a 29-year-old male, who was designated as the replacement Office Manager. 1

After Ms. Wright received the notice of termination, the parties and their counsel entered into negotiations that resulted in an offer by the Clinic to pay Ms. Wright her base salary, plus certain benefits, for a two year period. A December 6, 1989 letter containing the offer stated that “this offer will expire on December 31, 1989, or upon the filing of a discrimination claim by Mrs. Wright, whichever occurs first.” Ms. Wright filed a discrimination claim with the Equal Employment Opportunity Commission (“EEOC”) on December 12, 1989, and settlement negotiations apparently ceased; the Clinic has made no further payments to Ms. Wright.

In 1991, after obtaining the necessary Notice of Right to Sue letter from the EEOC, Ms. Wright brought this action, asserting two theories. First, she alleges that the Clinic violated the ADEA 2 by fir *1329 ing her and replacing her with a younger person. Second, she alleges that the Clinic’s failure to honor its conditional settlement offer amounted to retaliation for her filing an age discrimination claim, which constituted a violation of Title VII. 3

The answer to the complaint raised a number of affirmative defenses, among which was the assertion that the court lacked subject matter jurisdiction, “in that defendant is not an employer, as defined in 42 U.S.C. § 2000e(b) or 29 U.S.C. § 630(b).” The Clinic renewed this defense in a motion for summary judgment, supported by a brief and supporting affidavits. Both parties have had the opportunity to file additional memoranda and affidavits, and the motion is ripe for review.

II.

The ADEA and Title VII each erect jurisdictional hurdles to their application. One such requirement relates to the size of the operation; these statutes do not bring comparatively small employers within their coverage. Although the two statutes contain different thresholds, they take a similar approach. The definitional portion of Title VII provides that:

The term “employer” means a person engaged in an industry affecting commerce who has fifteen or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year.

42 U.S.C. § 2000e(b) (1988). 4 The ADEA’s definitional provision is identical, except that it requires twenty or more employees, rather than fifteen. 29 U.S.C. § 630(b). Although these statutes might appear to require a court simply to count the number of employees, this case presents a number of complications.

A.

The parties do not seem to dispute that the defendant is a “person”, 29 U.S.C. § 630(a); 42 U.S.C. § 2000e(a), engaged in an “industry affecting commerce,” 29 U.S.C. § 630(h); 42 U.S.C. § 2000e(h). The parties apparently agree that since the five physicians who maintain their medical practices at the Clinic are shareholders in the corporation, they are not to be counted as “employees.” 5 For purposes of this motion, the defendant concedes that Ms. Wright, her replacement Mr. Reynolds, and assistant Office Manager Nancy Fletcher all may be counted as “employees”. Finally, since Ms. Wright’s termination occurred in late 1989, the relevant time period for determining the number of employees in the “current or preceding calendar year” is 1988 and 1989. See Norman v. Levy, 756 F.Supp. 1060, 1062 n. 3 (N.D.Ill.1990).

The case presents two related questions: (1) Which persons are to be counted as “employees”? (2) Do the statutory definitions require that the threshold number of “employees” actually work on each “working day”, including on days on which the *1330 facility is open for but a portion of the day, and on which diminished services may be offered? The nature of the Clinic’s operation must be described to demonstrate the significance of these questions.

The Clinic is open six days a week. The posted business hours are from 8:30 a.m. to 9:00 p.m. on Monday through Thursday, from 8:30 a.m. to 5:00 p.m. on Friday, and from 9:00 a.m. to 2:00 p.m. on Saturday. Employees working during the morning, however, are expected to arrive at 8:00 а.m., and employees sometimes must stay until 10:00 p.m. or 11:00 p.m., at least on those four nights that the Clinic is open. Since the Clinic is staffed for more than seventy hours per week, it would appear that employees work in shifts. It also appears that there are greater numbers of employees on busier days than at other times.

The defendant’s employee work records were furnished as exhibits to Lynn Reynolds’ affidavit in support of the defendant’s summary judgment motion. They constitute a listing of the days on which all of the Clinic’s hourly employees were present for work. The records may be analyzed in any of three ways:

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791 F. Supp. 1327, 1992 U.S. Dist. LEXIS 6160, 58 Fair Empl. Prac. Cas. (BNA) 1550, 1992 WL 89164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-kosciusko-medical-clinic-inc-innd-1992.