Lytle v. Malady
Lytle v. Malady
Opinion of the Court
In the matter now before us, this Court is asked to clarify the evidentiary threshold a discharged employee must satisfy in order to create a genuine issue of material fact when an employer asserts that its decision to discharge an employee was precipitated by business conditions. We are also asked to decide whether a discharged employee may challenge an employer’s decision to reduce its work force charging discrimination, even when the reduction in work force (rif) decision has been deemed bona fide.
We hold that even when an employer’s rif decision is concluded to be bona fide, an employee may still establish a genuine issue of material fact that the employer’s justification for discharging him was not the true reason for its decision to discharge. We also hold that in order for a discharged employee to establish a genuine issue of material fact when an employer contends that its decision to discharge the employee was based on a work-force reduction, the employee may not merely rely on unsubstantiated allegations or denials in the pleadings. Rather, he
In the instant case, we conclude that defendant’s policy statement could have reasonably created a legitimate expectation of just-cause employment. We also conclude that defendant did have just cause to reduce its work force as a matter of law, but not with respect to this plaintiff. Rather, we hold that plaintiff did sufficiently establish a genuine issue of material fact regarding whether age was a determining factor in defendant’s decision to discharge her. We also conclude that plaintiff presented evidence sufficient to establish a genuine issue of material fact regarding whether defendant considered her sex in its decision to discharge her.
We affirm the decision of the Court of Appeals finding that plaintiff could have reasonably had a legitimate expectation of just-cause employment. We also affirm its ruling that plaintiff raised a genuine issue of fact with respect to whether defendant discriminated against her on the basis of her age, as well as its decision concluding that plaintiff raised a genuine issue of material fact regarding her claim of sex discrimination.
FACTS AND PROCEEDINGS
On January 29, 1973, plaintiff Nancy Lytle was hired by defendant Howmet Turbine Components
The contents of this booklet are not intended to establish, and should not be interpreted to constitute any contract between the Misco Whitehall Division, Product Support Operations, Reactive Metal Operations or the Technical Center of Howmet Turbine Components Corporation and any employee, or group of employees.
For over twenty years we have concentrated on the production of the finest investment castings, with the development of policies and principles which aim at the attainment of pride in every day’s work for every employee, plus the satisfaction of finding opportunities for individual growth and security. [Emphasis added.]
In 1981, defendant placed a disclaimer in its policy manual: “[T]he Company reserves the right to terminate employees without assigning cause; therefore,
At the time of plaintiffs hiring, John Ozar was the human resources director, serving as her immediate supervisor. Under Ozar’s supervision, plaintiff received exemplary performance evaluations and was rewarded with a succession of promotions. In 1979, plaintiff spoke with Ozar about resigning and seeking employment elsewhere. Ozar assured plaintiff that her employment with defendant was secure and that she could expect advancement. Soon after that conversation, plaintiff was promoted to employment manager of the entire human resources department. Additionally, about the same time, Ozar hired Walter Boczkaja. Boczkaja became plaintiffs subordinate trainee. For approximately two years, Boczkaja trained under plaintiff, receiving promotions to various positions within the personnel department, and continued to be one of plaintiffs subordinates until 1989.
During the 1984-85 fiscal year, Ozar retired and was replaced by William Roof. In March 1987, Roof determined a need to decentralize the human resources department. He planned for each of the Whitehall divisions to have its own human resources representative. Roof hired defendant Michael Malady to head the Whitehall Machined Products Division and to serve as plaintiffs supervisor. Plaintiff was reassigned to serve as human resources representative for defendant’s Ti-Ingot Division.
In January 1989, on Malady’s recommendation and with Roof’s approval, plaintiff’s job title was changed from human resources representative to human resources specialist. Plaintiff’s duties, as well as her salary, remained the same. Malady suggests that the change was necessary to reduce the number of direct reports he had to address, in addition to “centraliz[ing] the total employment function under one person instead of having it split with two different people doing part of it.” He also asserts that he had “some performance concerns . . . with [plaintiff’s] supervisory abilities],” as reflected in his latest performance evaluation.
Plaintiff held her new position from January 1989, until her discharge on November 1, 1991.
Plaintiff contends defendant’s policy manual created an expectation that her employment would not be terminated unless there was sufficient cause to do so. Also, she claims that she relied on verbal assurances by Ozar that her employment with defendant was secure.
At the same time reductions were being sought, defendant was embarking on a plan that would use work cells as the primary facility structure, where employees would be working in teams instead of in the traditional hierarchical order. Notwithstanding the fact that he had to eliminate fifteen percent of his projected 1992 budget, Roof was told by the Operhall management to somehow compile a list of employees from the human resources department to head an independent department. From that list someone was to be selected to oversee the development of the work-cell plan.
After reviewing the qualifications of those listed, Operhall management identified Malady and Boczkaja as the two most promising candidates. Malady was not available and Boczkaja, who was interviewed by Operhall management, later decided to stay on in his
By November 1, 1991, in an effort to comply with Wright’s mandate, Roof had eliminated approximately $300,000. Roof needed to cut $439,950 in costs in order to meet Wright’s directive of a fifteen-percent reduction in expenditures for the human resources department’s 1992 operating budget. Roof eliminated four positions in the human resources department, which included two plant medical staff, the employee assistance program assistant, and plaintiff’s position as human resources specialist. Roof contended that in terminating these four individuals, he focused on “functions” rather than “individuals or relative qualifications.” He suggested that the decision was based on who was absolutely critical and what they could get by without. Roof claimed that he terminated plaintiff because the primary function of her position involved hourly employees, where a substantial portion of the reduction in work force had already occurred, and the fact that little, if any, hiring was forecasted in the near future.
The same day plaintiff was discharged, defendant hired Jeff Billingsley to work in the training program for the work-cell project. As far as plaintiff understood, Billingsley “worked for the corporate office” and was merely assigned to take an office where
On November 22, 1991, Boczkaja completed a final performance evaluation on plaintiff, which Malady accepted, indicating that she would be rehired in the event a nonsupervisory, administrative position became available. When plaintiff was finally discharged, her duties were assigned to other persons within the human resources department.
On January 7, 1992, plaintiff filed a complaint in the Muskegon Circuit Court against defendant How-met, alleging: (I) breach of a contract providing for termination for just cause only, (II) age discrimination, and (III) sex discrimination.
Following some discovery, defendants Howmet and Malady moved separately for summary disposition pursuant to MCR 2.116(C)(10), which the circuit court granted on all counts.
The Court of Appeals reversed,
I. JUST-CAUSE EMPLOYMENT
A
Employment contracts for an “indefinite” duration are presumed to be terminable at the will of either party, unless they contain distinguishing attributes or consideration in addition to the services to be rendered. Lynas v Maxwell Farms, 279 Mich 684, 687;
[T]he presumption provides assurance that oral contracts for an indefinite term, which fall outside the statute of frauds, will be recognized only where circumstances suggest both parties intended to be bound. [Rowe v Montgomery Ward & Co, Inc, 437 Mich 627, 636; 473 NW2d 268 (1991).]
The presumption of employment at will may be overcome by proof of “a contractual provision for a definite term of employment or a provision forbidding discharge absent just cause.” Rood v General Dynamics Corp, 444 Mich 107, 117; 507 NW2d 591 (1993), citing Rowe, supra at 636-637. A contract for just-cause employment may be established in three ways. First, it may be formed by an “explicit” promise. Rowe, supra at 668 (Boyle, J., concurring), citing Perritt, Employee Dismissal Law & Practice (2d ed), § 4.1, p 173. Second, it may be “manifested by the words or other conduct” of the parties assenting to the agreement. Rood, supra at 117, n 17. Third, it may be “implied by law” because the employer’s statement regarding its “policies and procedures instillfed] [a] ‘legitimate expectation!]’ of job security in [the]
Under the third, when a policy manual is at issue, the court decides whether those sections that address employee discharge “are reasonably capable of being interpreted as promises of just-cause employment,” that is, whether an ordinary individual, marked by reason and sensibility, viewing the objective manifestations of the parties’ intent, could conclude that discharge would be only for just cause. Rood, supra.
The fact that certain acts were identified as conduct that might lead to discharge did not indicate that these acts were the exclusive permissible grounds for discharge. Moreover, the Sears handbook had no language similar to that relied upon in Toussaint: “to treat employees leaving Blue Cross in a fair and consistent manner and to release employees for just cause only.”
Any verbal assurances or statements of policy and procedure regarding job security must be clear and unequivocal to overcome the presumption of employment at will. Rowe, supra at 640-641, quoting Bullock v Automobile Club of Michigan, 432 Mich 472, 517; 444 NW2d 114 (1989), and Farnsworth, Contracts, § 7.10, p 492. To reach this threshold, “the statements must clearly permit a construction which supports the asserted meaning.” Rowe, supra at 641.
In evaluating verbal expressions, the court considers “all the relevant circumstances surrounding the transaction, including all writings, oral statements, and other conduct by which the parties manifested their intent.” Id., citing Farnsworth, Contracts, § 7.10, p 492.
If the employer has manifested a just-cause policy, the employer may unilaterally change it to one of employment at will, regardless of whether such right was reserved by the employer from the outset:
*16 The very definition of “policy” negates a legitimate expectation of permanence ... a “policy” is commonly understood to be a flexible framework for operational guidance, not a perpetually binding contractual obligation. In the modem economic climate, the operating policies of a business enterprise must be adaptable and responsive to change. [In re Certified Question (Bankey v Storer Broadcasting Co), 432 Mich 438, 455-456; 443 NW2d 112 (1989).]
If the employer so chooses, then reasonable notice must be given to all those affected. “Reasonable notification is not necessarily actual notification”;
B
Plaintiff makes two arguments. First, plaintiff argues that certain representations were made by management regarding job security. She claims that when she was called by another company about employment, Archer and Joseph Sheehan, the persons who originally hired her and Ozar, plaintiffs initial supervisor, told her that “they did not want [her] to leave .... You do a good job. You’re very secure here. We’d like you to stay for long-term employment . . . .” She adds that individually, Ozar told her that “he would really like [her] to stay. [She] had a
We conclude that these claimed assurances plaintiff received from Archer, Sheehan, and Ozar were not sufficiently “ ‘clear and unequivocal to overcome the presumption of employment at will,’ ” Rood, supra at 119, quoting Rowe, supra at 645, but, rather, represented that they “hoped” the employment relationship would “have a significant duration.” Rowe, supra at 640, quoting Carpenter v American Excelsior Co, 650 F Supp 933, 936, n 6 (ED Mich, 1987) (“any orally grounded contractual obligation for permanent employment ‘must be based on more than an expression of an optimistic hope of a long relationship’ ”) (emphasis previously supplied).
Second, plaintiff contends that she was told that the disclaimer
This language, standing alone, instilled in plaintiff a legitimate expectation of just-cause employment.
The contents of this booklet are not intended to establish, and should not be interpreted to constitute any contract between the Misco Whitehall Division, Product Support Operations, Reactive Metal Operations or the Technical Center of Howmet Turbine Components Corporation and any employee, or group of employees.
We conclude that a question of fact exists regarding whether defendant’s pre-1981 manual permitted plaintiff to have a legitimate expectation of just-cause employment. See Rood, supra at 140-141.
Despite the contradictory provisions, defendant asserts that plaintiff had actual knowledge of the disclaimer she helped affix in newly hired employees’ manuals in 1981, extinguishing any expectations she may have had regarding just-cause employment. We agree she had knowledge of the disclaimer. She worked in defendant’s human resource department and helped place the disclaimer in handbooks to be given to new employees. Notwithstanding, it is undisputed that plaintiff did not receive a new handbook, nor was she told that the disclaimer applied to her. At the September 14, 1992, summary proceeding, the following exchange took place between the trial court and defense counsel:
The Court: Did [defendant] give any notice to [plaintiff]?
[Defense Counsel]: There was no direct notice to her in terms of a memorandum, but she was involved in the company putting the sticker in the book. . . .
The Court: Well, she didn’t put it in her book, did she?
*20 [Defense Counsel]: Well, that’s trae.
Accordingly, because defendant could have easily provided notice to all those it intended to be affected by the disclaimer, we conclude that the method of notification instituted was not reasonably calculated to uniformly assure awareness of the change for all defendant’s affected employees,
H. REDUCTION IN WORK FORCE
A
A reduction in a work force for economic reasons constitutes termination for “just cause.” McCart v J Walter Thompson USA, Inc, 437 Mich 109, 114; 469 NW2d 284 (1991), citing Friske v Jasinski Builders, Inc, 156 Mich App 468, 472; 402 NW2d 42 (1986).
[Discharge for economic reasons, as determined by and within the complete discretion of the board of directors of defendant corporation, constitutes termination for sufficient cause. To hold otherwise would impose an unworkable economic burden upon employers to stay in business to the point of bankruptcy in order to satisfy employment contracts and related agreements terminable only for good or sufficient cause.[21]
Therefore, where a defendant asserts work-force reduction in defense of its decision to discharge an employee, that employee, to establish a genuine issue of material fact that the employer’s decision was not bona fide, may not merely rely on unsubstantiated allegations or denials in the pleadings, but, rather, must come forward with admissible evidence, affidavits, or other evidentiary materials, demonstrating the existence of a factual dispute.
Having set forth the controlling principles, we now turn to plaintiff’s contention that defendant lacked just-cause to discharge her.
B
Plaintiff contests the genuineness of defendant’s economic motivation in discharging her. Plaintiff claims that her review of defendant’s corporate salary reports evidences that defendant had actually hired more people from 1988 to 1990. However, this docu
In addition, plaintiff herself admits that defendant had been conducting an rif from January 1988, until the time of her discharge, “as a method of dealing with [the] economic downturn . . . .” Notwithstanding, plaintiff submits that a Pechiney report called “Direct Magazine” published in May 1991, claimed sales figures for defendant corporation in the amount of $973 million, sales backlogs in excess of $1 billion, anticipated sales for 1991 of over $1 billion, as well as projected overall continued upward growth. We conclude, however, that defendant evidenced that Pechiney is a huge French-owned conglomerate. See n 1. Defendant could have overall profitability, yet require reductions in operating and capital expenditures in its subsidiaries.
Plaintiff also asserts that her testimony in a case brought against defendant involving another employee supports her contention. See n 24. But, her allegations are based solely on “information and belief” or inadmissible evidence, and, as such, even though we are required to view plaintiff’s case in its most favorable light, we are given nothing to view that would permit us to conclude that the record before us could be developed at trial to the extent that it would leave open an issue on which reason
Therefore, because we choose not to second-guess employers’ decisions regarding day-to-day management operations,
c
We conclude that plaintiff’s relief, if any, rests in the Civil Rights Act. See MCL 37.2202; MSA 3.548(202).
In this instance, the Court of Appeals provided relief to plaintiff by concluding that defendant’s decision to reduce its work force was a mere pretext to discrimination. It stated:
*25 Bona fide economic reasons are just cause for discharge. McCart [supra at 114]. However, an employer may not use economic necessity as a pretext for unlawful discrimination. Id. at 115. When the parties dispute the genuineness of the economic necessity, the question of just cause is one for the trier of fact. Ewers v Stroh Brewery Co, 178 Mich App 371, 378-379; 443 NW2d 504 (1989). Here, plaintiff has presented documentary evidence that Howmet was not in an economic downturn during this period and that in reality its sales and net income were increasing and that it continued to hire personnel while it was discharging current employees. Giving the benefit of every reasonable doubt to plaintiff, we find that she has raised a genuine issue of material fact concerning whether Howmet’s proffered economic justification was a mere pretext for discrimination, and this issue is best left to the jury to resolve. McCart, supra at 115-116; Ewers, supra at 373-374. [209 Mich App 179, 198-199; 530 NW2d 135 (1995).]
In so holding, the Court of Appeals erred by confusing just-cause analysis with discrimination analysis under the Civil Rights Act. It held that plaintiffs discharge constituted a breach of contract. Id. at 199.
Accordingly, we now turn to plaintiffs contention that she presented evidence establishing that, notwithstanding defendant’s claim of economic necessity, its actual motive for discharging her was to discriminate against her on the basis of her age and sex.
m. DISCRIMINATION
A. CIVIL RIGHTS ACT
The Civil Rights Act is codified in MCL 37.2202; MSA 3.548(202). In particular, subsection 202(1) provides, in pertinent part:
(1) An employer shall not do any of the following:
*27 (a) Fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment, compensation, or a term, condition, or privilege of employment, because of religion, race, color, national origin, age, sex, height, weight, or marital status.
Ever since our decision in Matras v Amoco Oil Co, 424 Mich 675, 683; 385 NW2d 586 (1986), we have looked to McDonnell Douglas Corp v Green, 411 US 792; 93 S Ct 1817; 36 L Ed 2d 668 (1973), and its progeny for guidance when addressing the Civil Rights Act.
In McDonnell Douglas, the Supreme Court promulgated a presumption-based approach that encompassed special rules governing the order of proof when a plaintiff attempts to establish his claim by circumstantial evidence. The McDonnell Douglas approach has been applied to other matters involving employee discharge as well as other types of disparate treatment cases, notwithstanding that McDonnell Douglas arose under the context of title VII of the Civil Rights Act, 42 USC 2000 et seq. Hence, this Court’s analysis in Matras, supra, suggests that McDonnell Douglas applies to plaintiff’s claims of discrimination based on sex as well as age.
The approach was not meant to be inflexible, but, rather, was developed to serve as “a sensible, orderly way to evaluate the evidence in light of common experience as it bears on the critical question of discrimination.’’
[W]e are willing to presume this largely because we know from our experience that more often than not people do not act in a totally arbitrary manner, without any underlying reasons, especially in a business setting. Thus, when all legitimate reasons for rejecting an applicant have been eliminated as possible reasons for the employer’s actions, it is more likely than not the employer, who we generally assume acts only with some reason, based his decision on an impermissible consideration such as race.
Under the McDonnell Douglas approach, the burden of persuasion always rests with the plaintiff to prove that the prohibited discriminatory treatment by the employer was a determining factor used in its decision to discharge. St Mary’s Honor Center v Hicks, 509 US 502, 507; 113 S Ct 2742; 125 L Ed 2d 407 (1993), citing Texas Dep’t of Community Affairs v Burdine, 450 US 248, 253; 101 S Ct 1089; 67 L Ed 2d 207 (1981).
The approach involves three stages. In the first stage, the plaintiff must establish a prima facie case
In the second stage, following the plaintiff establishing a prima facie case, the burden shifts to the defendant-employer to articulate a legitimate, nondiscriminatory reason for its decision. McDonnell Douglas, supra at 802. If the employer is unable to satisfy its burden of production, it is presumed that the basis of the employer’s decision was discriminatory. Burdine, supra at 253.
If the defendant rebuts the presumption, then, in the third stage, the burden of production shifts back to the plaintiff creating “ ‘a new level of specificity.’ ” United States Postal Service Bd of Governors v Aikens, 460 US 711, 715; 103 S Ct 1478; 75 L Ed 2d 403 (1983), quoting Burdine, supra at 255; see also McDonnell Douglas, supra at 802-805. At this point, the plaintiff must establish that the employer’s articu
B. ST MARYS HONOR CENTER v HICKS
Since the inception of the McDonnell Douglas approach, for the judiciary, “[f]inding a balance between protecting victims of subtle prejudice on the one hand, and overreaching into legitimate decision-making of business on the other,” has proven itself a difficult task.
The Supreme Court’s most recent attempt to provide guidance came in Hicks. In that case, the Court addressed whether a trier of fact may issue judgment as a matter of law in favor of a plaintiff when the plaintiff has proven that an employer’s proffered reason for its employment action is false. In ruling that this alone is not adequate, the Court rewrote the third stage of the McDonnell Douglas approach. According
Although the Hicks majority appeared to be unambiguous, “many readers have found it to be otherwise.” 1 Lindemann & Grossman, Employment Discrimination Law (3d ed), p 24. Consequently, it is not surprising that
*32 [s]ome employers have argued that, in order to defeat an employer’s motion for summary judgment, Hicks requires plaintiffs to offer . . . both that the employer’s articulated reason was false and that the employer’s true reason was discriminatory — i.e., a “pretext-plus” standard. Some plaintiffs, on the other hand, have argued that once a prima facie case of discrimination is put forward, summary judgment for the employer never is appropriate, even if no evidence is put forward to refute the employer’s articulated nondiscriminatory reason, because the factfinder’s disbelief alone should be enough to permit a finding of pretext. [Id., p 25 (citation omitted; emphasis in original).]
However, the majority in Hicks rejected both extremes. See Equal Employment Opportunity Comm v Yenkin-Majestic Paint Corp, 1997 US App LEXIS 4348. Instead, it favored an intermediate position. See Hicks, supra at 510-511. The majority held that “[e]ven though (as we say here) rejection of the defendant’s proffered reasons is enough at law to sustain a finding of discrimination, there must be a finding of discrimination.” Id. at 511, n 4. We, too, favor such a position and hold that when viewed in a light most favorable to the plaintiff, the evidence must create a material issue of fact on which reasonable minds could find that the employer’s stated reason is a pretext for discrimination for summary judgment to be precluded. Furthermore, we hold that “evidence sufficient to discredit a defendant’s proffered nondiscriminatory reasons for its actions, taken together with the plaintiff’s prima facie case, [may be] sufficient to support [but not compel] a finding of discrim
In other words, we expressly adopt the intermediate approach endorsed by the United States Supreme Court in Hicks. For a plaintiff to survive summary disposition, he must always present an issue of fact regarding whether the defendant impermissibly discriminated. In some contexts, this may be shown merely by disproving the employer’s articulated reason, if, and only if, disproving the employer’s reason also shows discrimination. See Hicks, supra at 511, 519. See also Combs, supra at 1535. In other contexts, merely disproving an employer’s articulated reason will not prove discrimination. The bottom line is that there must always be evidence upon which reasonable minds could conclude that discrimination was the true motive for the decision. At summary proceedings, the evidence must always be taken in the light most favorable to the nonmoving party.
C. MATRAS v AMOCO OIL CO
In Matras, the plaintiff was discharged as a result of the defendant’s lay-off plan. In that case, we observed that “[a] jury c[ould] find that the discharge was ‘because of age’ even if age was not the sole factor”:
*34 Evidence that a competent older employee was terminated and a younger employee was retained, is insufficient standing alone to establish a prima facie case when the employer reduces his work force because of economic necessity. The rationale behind the McDonnell Douglas formula is that its four-part test alone “eliminates the most likely legitimate causes for the employer’s adverse action.” This formulation is incomplete in the work-force-reduction situation.
To establish a prima facie case of age discrimination when an employer lays off employees for economic reasons, the . . . employee [must] present sufficient evidence on the ultimate question — whether age was a determining factor in the decision to discharge the older protected employee. Accordingly, in the instant case, the McDonnell Douglas prima facie case approach folds into the traditional directed verdict/judgment notwithstanding the verdict standard. [Id. at 684-685.]
We concluded that the McDonnell Douglas approach folds into the traditional summary disposition or directed verdict standard because in the context of an RIF we assume that the burdens of production required by the respective parties under the approach have already been met.
Even though our decision in Matras, as well as the Supreme Court decisions in McDonnell Douglas and Hicks came after full trials, the principle is the same in summary proceedings:
[O]nce the employer has advanced a legitimate, nondiscriminatory basis for its adverse employment decision, the plaintiff, before becoming entitled to bring the case before the trier of fact, must show evidence sufficient for the factfinder reasonably to conclude that the employer’s decision to discharge him or her was wrongfully based on age. “Direct or indirect evidence of discriminatory motive may do, but ‘the evidence as a whole . . . must be sufficient for a reasonable factfinder to infer that the employer’s decision was motivated by age animus. ’ ” Thus, the plaintiff cannot avert summary judgment if the record is devoid of adequate direct or circumstantial evidence of discriminatory animus on the part of the employer. \Woods v Friction Materials, Inc, 30 F3d 255, 260 (CA 1, 1994) (citations omitted, emphasis added).][36]
We recognize, however, in the context of an RIF, that merely showing someone similarly situated to the plaintiff who is outside the protected class will not be sufficient. In concluding so, we are guided by the decision of the Supreme Court in O’Connor v Consolidated Coin Caterers Corp, 517 US 308, 311-313; 116 S Ct 1307; 134 L Ed 2d 433 (1996). In O’Connor, the Court noted that a “substantially younger [person] than the plaintiff is a far more reliable indicator of age discrimination than is the fact that the plaintiff
As the very name “prima facie case” suggests, there must be at least a logical connection between each element of the prima facie case and the illegal discrimination for which it establishes a “legally mandatory, rebuttable presumption,” Burdine, supra at 254, n 7. The element of replacement by someone under 40 fails this requirement. The discrimination prohibited by the adea is discrimination “because of [an] individual’s age,” 29 USC 623(a)(1), though the prohibition is “limited to individuals who are at least 40 years of age,” § 631(a). This language does not ban discrimination against employees because they are aged 40 or older; it bans discrimination against employees because of their age, but limits the protected class to those who are 40 or older.
Because the [Civil Rights Act] prohibits discrimination on the basis of age and not class membership, the fact that a replacement is substantially younger than the plaintiff is afar more reliable indicator of age discrimination than is the fact that the plaintiff was replaced by someone outside the protected class. [Id. at 311-313 (emphasis added).]
For these reasons, to survive a motion for summary disposition, once “the employer articulates a legitimate, non-discriminatory reason [for laying off the plaintiff,] . . . [t]he plaintiff must then introduce sufficient evidence to support two additional findings: (1) that the employer’s articulated reason for [laying off the plaintiff] is a pretext, and (2) that the true reason is discriminatory.” Smith v Stratus Computer, Inc, 40 F3d 11, 16 (CA 1, 1994).
Under some circumstances, however, as we previously observed, a plaintiff may not need to introduce additional evidence, aside from the evidence he
D. APPLICATION
We will assume that plaintiff established a prima facie case under McDonnell Douglas because her claim centers on defendant’s assertion that it was conducting an RIF. Accordingly, we must give the benefit of every reasonable doubt to plaintiff and determine whether she might sufficiently develop the record now before us to permit a jury to find that defendant’s proffered explanation as applied to her
As evidence of age discrimination, plaintiff notes that it was only when Ozar retired and was replaced by Malady that problems arose. Thus, for approximately the first thirteen years with defendant corporation it is undisputed that she excelled in her duties as employment manager. We are unpersuaded that
Aside from plaintiffs problems with Malady, it is undisputed that approximately six weeks before plaintiff’s discharge, defendant hired Achterhoff for the new position created at defendant’s Operhall Research Center. Achterhoff was a thirty-one-year-old woman who was paid ten thousand dollars more a year than plaintiff.
Plaintiff also evidenced defendant’s inconsistency in its hiring Billingsley.
Plaintiff need not show that age was the determining factor in defendant’s decision to discharge her. Rather, she need only prove that it was “« determining factor.” (Emphasis added.) Therefore, we are persuaded that, despite defendant’s claim that it based its decision on economic necessity, plaintiff produced evidence that would permit reasonable persons to conclude that age more likely than not was a determining factor in the adverse employment action defendant took against plaintiff. She presented proof that defendant hired individuals, Achterhoff and Billingsley, who were younger and, thus, along with the inconsistencies in defendant’s proffered explanation, created a reliable indication that “but for” plaintiff’s age, she would not have been discharged. See O’Connor, supra.
Thus, this case is distinguishable from Matras, supra, in which there was a lack of “evidence that management favored younger workers . . . , tended to fire older workers ... , or suggested that older
Accordingly, this evidence suggests that defendant’s reason for discharging plaintiff was only a pretext for favoring the younger hirees over the older plaintiff.
As evidence of sex discrimination, plaintiff points to her dealings with Malady. The Court of Appeals agreed that this evidence was sufficient to raise “a genuine issue of material fact with respect to a prima facie case of gender discrimination, i.e., that she was treated more harshly than similarly situated male employees.” Id. at 193.
While we agree that these facts raise suspicion, we are persuaded that the Court of Appeals erred by exclusively focusing on the confrontations plaintiff had with Malady. We conclude that it failed to properly determine whether defendant considered plaintiffs sex in its decision to discharge her. This is not to say that plaintiffs confrontations with Malady are irrelevant. Instead, these confrontations must be considered in light of the ultimate question — whether plaintiff’s sex was a determining factor in defendant’s decision to discharge her.
Standing alone, we believe that plaintiff’s confrontations with Malady do not create a question of fact regarding whether sex was a determining factor in defendant corporation’s decision to discharge her. However, these facts must not be viewed in a vacuum, but, rather, in light of the other facts now before us. The same day plaintiff was discharged, defendant hired Billingsley to work in the training program for the work-cell project. Billingsley had worked several different jobs, mostly involving manufacturing, yet was promoted to manager of training. Moreover, Roof stated that Billingsley’s new position was to be included in his budget, despite defendant’s
Reinforcing the genuineness of plaintiff’s claim is the fact that plaintiff was not considered fairly for the position Achterhoff ultimately assumed. Inexplicably, plaintiff, who was fully qualified and possessed substantially more experience than Boczkaja, who had been her subordinate at one time, was not even considered for the new position the management of defendant’s Operhall Research Center sought to create.
Thus, the record as a whole suggests, in light of common experience, that a genuine issue of material fact exists regarding whether defendant’s proffered explanation for discharging plaintiff was merely a pretext to age and sex discrimination.
Thus, we reverse the Court of Appeals decision holding that the trial court erred in summarily dismissing plaintiff’s claim for breach of contract of just-cause employment. We affirm both the decision of the Court of Appeals concluding that plaintiff raised a genuine issue of material fact regarding whether defendant considered plaintiff’s age as a determining factor in its decision to terminate her and its decision that a genuine issue exists regarding whether defendant considered plaintiff’s sex in its decision to terminate her.
Defendant is a subsidiary of Pechiney, a government-owned French conglomerate. Headquartered in Delaware, Howmet has operated a facility in Whitehall, Michigan, since the early 1950s.
The Whitehall operation was composed of: the Misco Whitehall Division; the Product Support Operations, which includes the Machined Prod
Normal procedure was to submit evaluations regarding job performance each December for the previous twelve months.
Personnel support departments included: human resources, payroll, and accounts payable.
At his deposition, Wright reflected on a more competitive and shrinking financial market that necessitated a need for the fifteen percent cut.
Plaintiff admitted that she has limited knowledge of Achterhoffs academic and employment backgrounds.
In sum, a total of ninety-one persons were terminated in 1991 at defendant’s Whitehall operation, of which fifty-four were under the age of forty and sixty-eight were men.
An additional count was filed against defendant Malady, alleging tortious interference with contractual relations. Malady’s motion for summary disposition was granted and subsequently affirmed by the Court of Appeals. We leave that aspect of the Court of Appeals decision undisturbed.
451 Mich 920 (1996).
The Court may not make actual findings or weigh the credibility of the evidence presented. Featherly v Teledyne Industries, Inc, 194 Mich App 352, 357; 486 NW2d 361 (1992).
In accordance with MCR 2.116(G)(4), the nonmoving party may not rest on mere allegations or denials in the pleadings. Durant v Stahlin, 375 Mich 628, 639; 135 NW2d 392 (1965). If the nonmoving party is able to produce some evidence, all inferences and the benefit of any reasonable doubt must be made in his favor. Id. at 638.
The contract may be enforceable, although neither party signed the policy statement, because of the benefit that accrues to an employer when it establishes desirable personnel policies. Toussaint, supra. Hence, under Toussaint, written personnel policies are not enforceable because they have been “offered and accepted” as a unilateral contract; rather, their enforceability arises from the benefit the employer derives by establishing such policies. In re Certified Question (Bankey v Storer Broadcasting Co), 432 Mich 438, 453; 443 NW2d 112 (1989). See also Toussaint, supra at 613. In Bankey, supra at 453, this Court explained that when an employer establishes personnel policies in which it gamers a benefit for the burden it has voluntarily accepted, the employer has then created a situation “instinct with an obligation.” See also Renny v Port Huron Hosp, 427 Mich 415, 429; 398 NW2d 327 (1986).
In Rood, supra at 140-141, we explained:
The common thread running through our decisions in Toussaint and Renny is the presence of clear and specific employer policy statements, regarding employee discharge. Otherwise stated, the handbooks in both Toussaint and Renny contained statements reasonably capable of being interpreted as promises to discharge only for just cause. Consistent with Toussaint and Renny, we therefore hold that, in all claims brought under the legitimate expectations theory of Toussaint, the trial court should examine employer policy statements, concerning employee discharge, if any, to determine, as a threshold matter, whether such policies are reasonably capable of being interpreted as promises of just-cause employment. If the employer policies are incapable of such interpretation, then the court should dismiss the plaintiff’s complaint on defendant's motion for summary disposition. MCR 2.116(C)(10). If, however, the employer’s policies relating to employee discharge are capable of two reasonable interpretations, the issue is for the jury. [Emphasis added.]
Grow v General Products, Inc, 184 Mich App 379, 386; 457 NW2d 167 (1990).
The disclaimer stated that “[t]he company reserves the right to terminate employees without assigning cause; therefore, the employee serves at the will of the employer.”
She also submits that as a result of her reliance, “there was by express words or operation of law, an agreement between the parties by which defendant Howmet was contractually obligated not to terminate [her] employment except for good cause.”
Justice Boyle contends that “plaintiff cannot have it both ways. Either the handbook applied to her employment relationship ... or it did not apply to her . . . .” Post, p 53. A basic rule of contract law is that contradictory terms or meanings are construed against the drafter. In this case, the drafter was defendant. Hence, it is defendant, and not plaintiff as Justice Boyle contends, that “cannot have it both ways.” Defendant cannot create security in its work force by expressing in its policy manual that its employees will be discharged only for cause and then express to its employees that they have no expectation of just-cause employment.
Justice Boyle asserts that “the employer's relevant manifestations amounted to two separate representations.” Post, p 58. We agree and conclude that defendant did not manifest a clear intent. Defendant left contradictory language in its policy manual. Hence, a question of fact exists regarding whether plaintiff had a legitimate expectation of just-cause employment. See Rood, supra at 138-141.
See In re Certified, Question, supra at 457, Grow, n 14 supra, and accompanying text.
See also Bhogaonker v Metropolitan Hosp, 164 Mich App 563, 564; 417 NW2d 501 (1987).
21 If a plaintiff can prove “fraud, bad faith or subterfuge on the part of the board in its decision,” the layoffs will not be bona fide. See Friske, supra at 472.
By the September 14, 1992, hearing on defendant’s motion for summary judgment, plaintiff had not presented this documentation.
It is undisputed that defendant was conducting reductions in its work force elsewhere. In his deposition, Wright stated that not only was defendant conducting an rip at its Whitehall facility division-wide, but it was also conducting “similar reductions . . . elsewhere in the Howmet organization.” More particularly, Wright said:
In Tennessee in the past year, the employment had dropped from the neighborhood of 650 employees down to around 400. LaPorte recently had a rather major layoff. The exact number of people, I’m not sure, but I understand it was fairly large. In the meantime, we have also closed a plant in Plymouth, Michigan, and moved that to Dover, New Jersey.
*23 We closed Whitehall Machining here and moved that operation to Winstead, Connecticut, and we also recently closed the Reno, Nevada, plant and moved that operation to Whitehall. I know that Dover’s employment has dropped from the neighborhood of 1600 people a few years back to about 1100 people now. I know that our employment is down in the neighborhood, I think, around 2450 or somewhere in that neighborhood here in Whitehall from a high, I believe, of around 4100 a few years back. [Emphasis added.]
On the basis of evidence presented in a similar case, Krantz v Howmet Corp (Circuit Court No. 90-26815-CK; Court of Appeals No. 159045), Justice Cavanagh asserts that plaintiff could establish that defendant’s rif was not bona fide. We disagree. In Krantz, the plaintiff deposed expert Dr. William King. He testified against defendant Howmet. Dr. King stated that “the corporation Howmet located in Greenwich, Connecticut, has been showing increased net worth, increased retained earnings, and increased sales over the past five years . . . so . . . pleading that they have financial difficulties seems unreasonable.” Nevertheless, on being asked whether “it [was] true that a business can be experiencing a decline in orders for its products and taking reasonably prudent business actions to reduce its work force so that the work force is in proportion to the work that it has,” Dr. King answered “Yes.”
Hence, Dr. King’s testimony supports the conclusion that a company can have overall profitability and, yet, in order to maintain profitability, it may also need to reduce its work force. Even if Dr. King were to testify in this case, we are persuaded that his testimony would be of no consequence to invalidating defendant’s company-wide rif. Moreover, he would have an insurmountable burden in demonstrating that defendant’s discharge of approximately fifty percent of its work force at its Whitehall operation was merely a pretext to discharging plaintiff.
This Court had long ago decided that courts should be reluctant to second-guess management in its day-to-day operations. See, e.g., Dodge v Ford Motor Co, 204 Mch 459, 507-508; 170 NW 668 (1919) (payment of dividends); Nahikian v Mattingly, 265 Mch 128; 251 NW 421 (1933) (fixing salaries of officers); Barrows v J N Fauver Co, 280 Mch 553, 558; 274 NW 325 (1937) (building plants and purchasing property); Reed v Burton, 344 Mch 126; 73 NW2d 333 (1955) (selling property); Pettengill v Monteith Land Co, 334 Mch 632; 55 NW2d 130 (1952) (entering into contracts); Wayne Co Prosecuting Attorney v Nat’l Memorial Gardens, Inc, 366 Mich 492, 496; 115 NW2d 312 (1962) (the business judgment rule “applies only to cases where there has been no fraud, misconduct, or abuse of discretion by the officers and directors”).
Even though an employer may have grounds to discharge an employee, it “may not decide which employees to lay off on the basis of considerations that are prohibited by law, such as race, gender, or age.” See Featherly, n 10 supra at 355, citing King v Michigan Consolidated Gas Co, 177 Mich App 531; 442 NW2d 714 (1989), and Schipani v Ford Motor Co, 102 Mch App 606; 302 NW2d 307 (1981) (“Both cases taken together implicitly stand for the proposition that where an employer has a legitimate reason to terminate [e.g., economic necessity or a contract for employment at will], it may not do so for illegal reasons such as unlawful discrimination”).
The Court of Appeals incorrectly cites McCart, supra, for the proposition that “an employer may not use economic necessity as a pretext for unlawful discrimination.” However, in McCart, supra at 115, we merely noted that “[t]he objective circumstances, as presented by defendant’s proofs, indicate[d] no more than a termination resulting from an economically motivated work-force reduction.” As such, we concluded that the plaintiff failed to present evidence sufficient to establish that the defendant’s rif was not bona fide. We stated that in order to establish an issue of fact, the plaintiff had to “ ‘establish that he has a case on the law and that there are some evidentiary proofs to support his allegations as to any material fact.’ ” Id., quoting Durant, supra at 638. We continued by observing:
This case thus stands in marked contrast to . . . Ewers . . ■, where “plaintiff relied on deposition and documentary evidence which he argued indicated that defendant was experiencing substantial economic growth and operating at a substantial profit before and after his discharge.” Id. at 375. [McCart, supra at 115-116.]
In this case, the Legislature has provided plaintiff recourse under the Civil Rights Act. MCL 37.2202; MSA 3.548(202).
Furnco Construction Corp v Waters, 438 US 567, 577; 98 S Ct 2943; 57 L Ed 2d 957 (1978).
La Montague v American Convenience Products, Inc, 750 F2d 1405, 1409 (CA 7, 1984) (“The defendant’s burden is only one of production; the burden of persuasion rests at all times on the plaintiff”).
McDonnell Douglas, supra at 802. See also, e.g., Parnell v West, unpublished opinion, 1997 WL 271751 *2; 114 F3d 1188 (CA 6, 1997), citing Christopher v Stouder Memorial Hosp, 936 F2d 870, 877 (CA 6, 1991); Robinson v Overseas Military Sales Corp, 21 F3d 502, 508 (CA 2, 1994).
Because the Civil Rights Act places no lower or upper limit on a plaintiff’s age, we conclude that this requirement is relative and must be determined on a case-by-case basis in accordance with the dictates of this opinion.
The Circuit Court of Appeals for the First Circuit in Woods v Friction Materials, Inc, 30 F3d 255, 260 (CA 1, 1994), succinctly set forth the plaintiff’s burden:
To meet this burden, the [plaintiff] must prove both that the employer’s articulated reason is false, and that discrimination was the actual reason for its employment action. See Hicks, supra at [511] n 4. If [the] plaintiff “fails to show ‘pretext,’ [for discrimination] the challenged employment action ‘must stand.’ ” Id. at [516], n 6 (quoting McDonnell Douglas, [supra] at 807).
See Essary, The dismantling of McDonnell Douglas v Green: The high court muddies the evidentiary waters in circumstantial discrimination cases, 21 Pepp L R 385, 386 (1994).
This is the law in the Second, Third, Fourth, Sixth, Seventh, Eighth, Ninth, Eleventh, and District of Columbia Circuits. See, e.g., EEOC v Ethan Allen, Inc, 44 F3d 116, 120 (CA 2, 1994), Sheridan v El DuPont de Nemours & Co, 100 F3d 1061, 1066-1067 (CA 3, 1996) (en banc), Mitchell v Data General Corp, 12 F3d 1310, 1316 (CA 4, 1993), Manzer v Diamond Shamrock Chemicals Co, 29 F3d 1078, 1083 (CA 6, 1994), Perdomo v Browner, 67 F3d 140, 146 (CA 7, 1995), Gaworski v ITT Commercial Finance Corp, 17 F3d 1104, 1110 (CA 8, 1994), Washington v Garrett, 10 F3d 1421, 1433 (CA 9, 1993), Combs, supra, and Barbour v Merrill, 310 US App DC 419, 426; 48 F3d 1270 (1995).
For example, when an employee is discharged because of an rif, he necessarily established a prima facie case, the first stage of McDonnell Douglas-. (1) he is in the protected class; (2) he suffered an adverse employment action when he was let go by the company, (3) he was qualified for the position because he had retained the position for many years, and (4) younger employees who were similarly situated were retained. Similarly, the employer necessarily met its burden of production, i.e., it let the employee go because of a reduction in its work force.
36 See also LeBlanc v Great American Ins Co, 6 F3d 836, 843 (CA 1, 1993).
In accord with the intermediate position we previously adopted, “evidence sufficient to discredit a defendant’s proffered nondiscriminatory reasons for its actions, taken together with the plaintiffs prima facie case, [may be] sufficient to support [but not compel] a finding of discrimination,” i.e., it may be sufficient to support the “two findings.” Combs, supra at 1535.
In part n of this opinion, we held that defendant’s rif was bona fide. However, as to plaintiff, we still must determine in her particular situation whether defendant considered an unlawful discriminatory criterion in its decision to discharge her.
The dissent’s analysis is fundamentally flawed because it consistently fails to apply the well-accepted rule that the benefit of every reasonable doubt must be given to the nonmoving party and the reviewing court only is to determine whether the record might be developed that would leave open an issue upon which reasonable minds could differ. Skinner v Square D Co, 445 Mich 153, 162; 516 NW2d 475 (1994). The dissent also consistently violates the principle that the reviewing court is not to make findings of fact or weigh credibility in deciding a motion for summary disposition. See Featherly, n 10 supra; Paul v US Mut Financial Corp, 150 Mich App 773, 779; 389 NW2d 487 (1986), citing Durant, supra.
The dissenting justices improperly analyze plaintiffs proofs by asserting that “Achterhoff took a newly created position,” and, therefore, plaintiff failed to present evidence of age discrimination. Post, p 70. However, whether Achterhoff replaced plaintiff is of no consequence. Instead, our concern centers on whether others similarly situated to plaintiff were not affected by defendant’s adverse employment action.
Justice Boyle notes that “with regard to the personnel decision itself, the decision to eliminate plaintiff’s position was not made by Mr. Malady . . . .” Post, p 65. We disagree. Malady made the original adverse employment decision, i.e., his inexplicable evaluations led to plaintiff’s demotion. Roof admitted that plaintiff was never considered for the position Achterhoff ultimately assumed. It was Roof who had to eliminate fifteen percent of his 1992 fiscal budget. It was Roof who decided to eliminate plaintiff’s position, along with three other positions, i.e., two plant medical staff and the employee assistance program assistant.
The dissent places great weight on the fact that plaintiff was not formally “terminated” until November. Still, the dissent admits that the decision to discharge plaintiff had already been made the previous September, the same time defendant corporation hired Achterhoff. Hence, that plaintiff was not formally released until the following November is of no consequence.
The dissent, quoting the United States District Court for the Southern District of Alabama in Martin v Teledyne Brown Engineering, 924 F Supp 1131, 1138, n 4 (SD Ala, 1996), concludes that “[t]he fact that Ms. Achterhoff’s salary was not paid from the human resources department’s budget is consistent with the employer’s stated business reason . . . .” Brickley, J., post, p 72, n 8. We disagree. Defendant stated that it eliminated plaintiffs position. Thus, Achterhoffs salary necessarily was going to be paid from a different budget. Given that “everything depends on the individual facts,” Woods v Friction Materials, supra at 260, n 3, the record now before us persuades us to believe a genuine question of fact exists regarding whether defendant decided to discharge plaintiff on the basis of considerations that are prohibited by law.
The dissent claims that we overlooked the fact that “Billingsley was only five years younger than the plaintiff.” Post, p 73. Even though we conclude that in the instant case that this is not a clear indication of age discrimination, we cannot say that this “evidence of age differential is not relevant.” Matras, supra at 708, n 10 (Riley, J., dissenting). Each case must be decided on its own particular circumstances. Id. at 707 (Riley, J., dissenting) quoting McDonnell Douglas, supra at 802. Further, the reviewing court must view all admissible evidence in a light most favorable to the nonmoving party. Durant, supra.
The dissent argues that “[t]his type of personnel change is inherent in corporate restructuring and does not constitute evidence of discrimination.” Post, p 74. We disagree if the true reason for the retention of one employee over another is discriminatory.
Justice Boyle observes that “the statistical evidence established that between 1987 and 1992, the number of employees in Whitehall declined almost fifty percent, from 4,100 to 2,450, and the rif resulted in termination of ninety-one employees in 1991, fifty-four of whom were under the age of forty and sixty-eight of whom were men.” Post, p 65. We agree that defendant’s rif was bona fide with respect to it having just-cause to discharge plaintiff under her contract. However, “[e]ven though an employer may have grounds to discharge an employee, it may not proceed to unlawfully act against a particular employee.” See Featherly, n 10 supra. Accordingly, merely because defendant’s rif was found to be bona fide, the Court must still determine whether plaintiff established that she was treated differently than “persons situated similarly” to her. Smith, supra at 16.
In this case, the record evidences that plaintiff was not situated similarly to all ninety-one employees.
Justice Boyle asserts that “[c]ertainly, if Justice Riley believed that the evidence produced by the plaintiff in Matras [supra], was insufficient to show ‘age was a determining factor in [the plaintiffs] discharge,’ id. at 715 (Riley, J., dissenting), the considerably weaker evidence in this case could not support a finding of discriminatory animus.” Post, pp 65-66. We disagree. First, each case is factually different from the other and must be decided on the basis of its own particular circumstances. See Matras, supra at 707 (Riley, J., dissenting), quoting McDonnell Douglas, supra at 802. Second, the evidence produced by the plaintiff in Matras, supra, was weaker, not stronger, than the evidence produced by plaintiff Lytle. For example, in Matras, supra at 713 (Riley, J., dissenting), “[w]hat the record [did] show [was] that two younger people whose performance was rated the same as plaintiff’s were also discharged.” Accordingly, as compared to plaintiff Lytle, plaintiff Matras presented considerably weaker proof establishing that he was treated differently than others situated similarly to him.
We must remember that the issue we now decide is not whether plaintiff was in fact discharged because of her age, that remains to be determined at trial. Instead, we only have to determine whether plaintiff’s evidence would allow a jury to find that defendant’s proffered explanation was a pretext to discrimination.
The dissent questions why we ignore Achterhoff’s hiring in our analysis. The dissent itself ignores the fact that sex discrimination centers on whether one sex has been treated differently than a similarly situated individual from the opposite sex. Hence, because Achterhoff is female, we briefly reference that she was the individual eventually hired for the new human resources position at defendant Operhall Research Center. Because Malady and Boezkaja are male, they are more significant to our discussion. Roof testified that Malady and Boezkaja were the only ones considered from a list he compiled of potential candidates for the position. Moreover, in compiling the list, Roof admitted that plaintiff was not even considered. Thus, when Malady and Boezkaja were selected as possible candidates by Operhall management, plaintiff’s name was nowhere to be found. Notwithstanding, the dissent contends that because “several of [plaintiff’s] former duties were assigned to female employees,” that this “is inconsistent with sex discrimination.” Post, p 75. On the basis of the dissent’s reasoning, plaintiff could only establish her claim if defendant corporation had discharged all its female employees. Such reasoning is misplaced.
Plaintiff’s responsibility as “Employment Manager” was to administer defendant corporation’s affirmative action program. In September 1987, Malady, without conferring with plaintiff, made a hiring for a job opening that was to be filled by plaintiff from her affirmative action/EEO file. She confronted Malady by telling him that he was undermining her affirmative action responsibilities. When Malady did not respond, plaintiff went to Roof and complained. Roof issued a memorandum objecting to his interference with plaintiff’s responsibilities. Shortly thereafter, Malady published another negative written evaluation of plaintiff’s performance.
See, e.g., Jameson v Arrow Co, 75 F3d 1528, 1532-1533 (CA 11, 1996). Although the plaintiff in Jameson, applied for the position available before her discharge, it is clear plaintiff here wanted to be fairly considered for the position Achterhoff eventually assumed. Hence, “where a job for which the plaintiff is qualified, and for which the plaintiff applies, is available at the time of termination, and the employer offers the job to an individual outside the protected age group, an inference of intentional discrimination is [sometimes] permissible.” Id. at 1532. It all depends on the particular facts before the reviewing court.
Roof indicated that he was directed by Operhall management to compile a list of employees from the human resources department to head an independent department. From that list, someone was to be selected to oversee the development of defendant corporation’s new work-cell proj
Justice Boyle states that “[gjiven the fact that Justice Riley concluded in Matras that the civil rights laws were ‘ “not intended as a vehicle for judicial review of business decisions,” ’ id. at 715, I am unable to understand how she can find this plaintiff’s evidence sufficient to survive summary disposition under the articulated standard.” Post, p 66.
We agree that the civil rights laws were not “ ‘intended as a vehicle for judicial review of business decisions.’ ” Id. However, we also conclude that an employer “may not proceed to unlawfully act against a particular employee,” although the employer may have been conducting a generally bona fide rif. See Featherly, n 10 supra.
Justice Boyle herself concludes that “[s]tripped to its essentials, plaintiff’s proofs, when viewed in a light most favorable to her, consist of evidence that she was replaced during a reduction in force by employees who were younger and possibly less qualified than she was.” Post, p 67.
Justice Boyle fails to appreciate her own conclusion. She agrees that plaintiff sustained her burden, yet concludes that summary disposition
Concurring in Part
(concurring in part and dissenting in part). I agree with the lead opinion with respect to all sections except parts n(B) and n(c). Because discov
As to section n(B), the lead opinion claims that certain allegations plaintiff makes regarding whether defendant’s RIF was bona fide are “not part of the record” or had not been presented by the date of the hearing on defendant’s motion for summary disposition. See ante at 22. Furthermore, the lead opinion holds that plaintiff’s “allegations are based solely on ‘information and belief’ or inadmissible evidence” and “we are given nothing to view that would permit us to conclude that the record before us could be developed at trial . . . "Id. at 23.
I respectfully disagree. In a similar case against the same defendant, plaintiff was allowed to proceed to the jury regarding whether defendant’s RIF was bona fide. In Krantz v Howmet Coup (Circuit Court No. 90-026815-CK; Court of Appeals No. 159045), defendant Howmet was sued under a wrongful discharge theory. Defendant maintained the same arguments and presented the same evidentiary material regarding the RIF as it has done here. However, plaintiff here has not had the same opportunity to present her evidence that the RIF was not bona fide.
Economic expert William King, Ph.D., provided key testimony in Krantz that, in his opinion, the RIF was not bona fide. However, before Dr. King had the opportunity to be deposed in this case, the court prematurely granted defendants’ motion for summary disposition. Dr. King’s discovery deposition was scheduled for October 10, 1992, but was canceled in conjunction with the trial court’s decision on summary disposition, received by plaintiff on October 7,
It is premature for this Court to decide whether defendants’ alleged rif was bona fide because it is clear that discoveiy in this matter was not complete, and, as indicated by the jury verdict in plaintiff’s favor in Krantz, it is certainly possible that a record may have been developed so that summary disposition for defendants should have been precluded. Therefore, I would remand this issue to the trial court for the completion of discovery so that plaintiff can have an equal opportunity to present evidence that defendants’ alleged RIF was not bona fide.
I also respectfully dissent from portion n(c) of the lead opinion, which states that “the Court of Appeals erred by confusing just-cause analysis with discrimination analysis under the Civil Rights Act.” Ante at 25. The Court of Appeals stated that “an employer may not use economic necessity as a pretext for unlawful discrimination. [McCart v J Walter Thompson USA, Inc, 437 Mich 109, 115; 469 NW2d 284 (1991).] When the parties dispute the genuineness of the economic necessity, the question of just cause is one for the trier of fact.” 209 Mich App 179, 198; 530 NW2d 135 (1995).
In McCart, we stated that in order for a defendant to show that it discharged plaintiff for bona fide economic reasons, it must demonstrate two things: that “adverse business conditions existed and that the elimination of plaintiff’s position was necessitated by those conditions.” Id. at 115 (emphasis added). Therefore, where a plaintiff’s proofs show that the elimination of his position was not motivated by the alleged
My position has been supported by two state supreme courts. In Coelho v Posi-Seal Int’l, Inc, 208 Conn 106, 122; 544 A2d 170 (1988), the Connecticut Supreme Court stated:
We conclude that the question of whether an employer has terminated an employee because of a legitimate reduction in force or for other reasons is an issue to be determined by the trier of fact. An employer’s contention that some employees were terminated as a result of a legitimate reduction in force does not necessarily establish that all employees were discharged for the same reason. An employer may not use a reduction in force as a pretext to terminate other employees in violation of contractual obligations, public policy or statutory rights. [Emphasis added.]
Further, in Flanigan v Prudential Federal Savings & Loan Ass’n, 221 Mont 419, 426; 720 P2d 257 (1986), the Montana Supreme Court held that it was a matter for the trier of fact to determine whether an employee had been terminated as a result of a legitimate reduction in force or because of other factors.
Therefore, even if under the lead opinion’s reasoning that the RIF was bona fide, where plaintiff has presented sufficient facts to show that she was not fired because of a legitimate RIF, but, rather, she was fired because of other illegal reasons, her claim for wrongful discharge should go to the jury.
Concurring in Part
(concurring in part and dissenting in part). I write separately because I agree that plaintiff’s wrongful-discharge claim fails, but disagree with
i
The lead opinion concludes that plaintiff had a legitimate expectation of just-cause employment on the basis of a statement in the employee handbook, that stated, “No employee will be terminated without proper cause or reason and not until management has made a careful review of all facts.” Absent any qualifying language, this language would be sufficient to raise a legitimate expectation that employees would not be terminated without good cause. However, in an equally conspicuous segment, the final page of the handbook stated:
The contents of this booklet are not intended to establish, and should not be interpreted to constitute any con*53 tract between the Misco Whitehall Division, Product Support Operations, Reactive Metal Operations or the Technical Center of Howmet Turbine Components Corporation and any employee, or group of employees.
The lead opinion apparently concludes that the disclaimer of contractual obligation was ineffective with respect to plaintiff because she was employed by Howmet in the human resources department, which is not specifically mentioned in the disclaimer. I disagree.
The handbook’s title appeared on the cover substantially as follows:
YOUR FUTURE WITH HOWMET
MISCO WHITEHALL DIVISION PRODUCT SUPPORT OPERATIONS REACTIVE METAL OPERATIONS TECHNICAL CENTER
These are the same divisions mentioned in the disclaimer. It is true that plaintiff’s department is not specifically mentioned in the disclaimer. However, plaintiffs department is also not mentioned anywhere else in the handbook. In short, plaintiff cannot have it both ways. Either the handbook applied to her employment relationship, in which case the just-cause language and the disclaimer must be read together, or it did not apply to her because the handbook was only intended to apply to those divisions specifically mentioned on the cover and in the disclaimer. In the latter case, of course, plaintiff could not assert the handbook as evidence of a just-cause policy for
A
Viewing the evidence in a light most favorable to the plaintiff, plaintiff has not created a reasonable question of fact that the handbook was intended to
The handbook’s language indicates that it was intended to apply to plaintiff’s employment relationship with her employer, just as it was intended to cover defendant’s relationship with all employees to whom the handbook was distributed out of plaintiff’s human resources department. On page 4 the handbook states:
Welcome!
We are pleased to have you with Howmet Turbine Components Corporation. [Emphasis added.]
On page 5 the handbook states:
Our Pledge
We believe Howmet is a good place to work. We pledge that we will honor the following principles in our relations with you .... [Emphasis added.]
Throughout this handbook we have outlined Howmet’s obligations to you and the methods by which the Company will fulfill these obligations. . . .
There axe regulations which govern our conduct as employees while on Company property, just as there are regulations governing us as citizens in the community in which we live or as members of clubs to which we belong. . . . [Emphasis added.]
Later, on page 24, the handbook states:
Your badge identifies you as an employee of Howmet and serves as your pass in and out of the plant. It must be worn in a visible position at all times while you are on Company property. [Emphasis added.]
Finally, just before the contractual disclaimer on page 25, the handbook states:
This handbook briefly outlines your privileges, benefits and responsibilities as an employee of Howmet. . . .
It is not possible in any one booklet to list all the benefits and mutually helpful regulations, which come to or govern all types of employees. If any portion of the information given is not completely clear to you, tell your foreman or supervisor what further information you want. [Emphasis added.]
Throughout the handbook, the terms “Howmet,” “the Company,” and “Howmet Turbine Components Corporation” are used interchangeably, indicating an intent to describe Howmet’s relationship with the industry, its neighbors, and its employees, without differentiating among the various divisions or depart-
B
I would conclude that the relevant statements in the handbook, the just-cause language and the disclaimer of contractual obligation, when read together, do not (1) “justify [an employee] in understanding that a commitment ha[d] been made,” and (2) “instill[] a legitimate expectation of just cause employment . . . .” Rood v General Dynamics Corp, 444 Mich 107, 139; 507 NW2d 591 (1993). In Rood we stated, “[W]e need not reach the question whether a disclaimer of intent to create contractual liability contained in an employee handbook is sufficient to disclaim liability under the legitimate expectations theory of Toussaint.” Id. at 142. See Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579; 292 NW2d 880 (1980). I would reach the question here and conclude that the disclaimer was effective to protect defendant from this type of liability.
[W]e therefore hold that, in all claims brought under the legitimate expectations theory of Toussaint, the trial court should examine employer policy statements, concerning employee discharge, if any, to determine, as a threshold matter, whether such policies are reasonably capable of being interpreted as promises of just-cause employment. If the employer policies are incapable of such interpretation, then the court should dismiss .... If, however, the employer’s policies relating to employee discharge are capable of two reasonable interpretations, the issue is for the jury. [Id. at 140-141.]
In this case, the employer’s relevant manifestations amounted to two separate representations. One demonstrated its termination policy; the other demonstrated that it intended no expression of a binding obligation to adhere to any stated policy. Thus, it cannot be said that the employer’s actions were sufficient to justify an “ ‘understanding that a commitment ha[d] been made.’ ”
In Heurtebise v Reliable Business Computers, Inc, 452 Mich 405; 550 NW2d 243 (1996), we held that an arbitration clause in an employee handbook was unenforceable where the handbook also included a disclaimer of contractual intent. A conclusion that similar language does not protect a defendant from a just-cause claim would be logically inconsistent. In Edwards v Whirlpool Corp, 678 F Supp 1284, 1291 (WD Mich, 1987), relying on Dell v Montgomery Ward & Co, Inc, 811 F2d 970 (CA 6, 1987) (holding that a disclaimer of contractual intent and reservation of right to terminate at will is sufficient to overcome
The Toussaint holding created an exception to the general rule that employment relationships are terminable at the will of either party .... The Michigan Supreme Court suggested that a company could protect itself from liability by expressly disclaiming its intent to create anything but an at-will employment relationship. It did not find, however, that a company creates a just cause contract if it issues an employee handbook without including the magical phrase that the employment relationship remains an “at will” relationship. In this case, I find that defendant adequately protected itself by stating that it did not intend for the employee handbook to create a contract of employment.
Additionally, in Rowe v Montgomery Ward & Co, Inc, 437 Mich 627, 649-650; 473 NW2d 268 (1991), this Court approved the reasoning offered by the United States Court of Appeals for the Sixth Circuit in Dell, while holding that a reservation of at-will termination is sufficient to defeat any language that might give rise to an expectation of just-cause termination. In Dell, the employer disclaimed contractual intent regarding a progressive discipline process, stating that “[t]his procedure does not form an employment contract.” Id. at 972. The employer’s clear disclaimer of contractual intent here, as in Edwards and Dell, was sufficient to defeat any expectation of just-cause termination arising out of other language in the handbook.
In In re Certified Question (Bankey v Storer Broadcasting Co), 432 Mich 438, 441; 443 NW2d 112 (1989), “this Court held that a company’s written policy statements, which created legitimate expectations in the employee of discharge for cause only, could be
Thus, I would conclude plaintiff is not entitled to assert a legitimate expectation of just-cause employment where the handbook on which she relies disclaims any intent on the part of the employer to bind itself to the contents of the handbook. In conjunction with the disclaimer of contractual obligation, the policy language is insufficient to overcome the presumption of at-will termination. Finally, I note again that if the disclaimer were found to be inapplicable because it does not expressly mention plaintiff’s department, then the entire handbook must be found inapplicable for the same reason.
I concur with part in of Justice Riley’s opinion to the extent that she adopts the “intermediate position” set forth in St Mary’s Honor Center v Hicks, 509 US 502, 510-511; 113 S Ct 2742; 125 L Ed 2d 407 (1993), and explained in the excerpts she references from 1 Lindemann & Grossman, Employment Discrimination (3d ed), ante at 30-33. I also concur with Justice Brickley’s analysis of the civil rights claims. As noted by Justice Riley, the intermediate position we adopt today is the majority rule in the circuit courts of appeal. In Hicks, the Court stated:
The factfinder’s disbelief of the reasons put forward by the defendant (particularly if disbelief is accompanied by a suspicion of mendacity) may, together with the elements of the prima facie case, suffice to show intentional discrimination. Thus, rejection of the defendant’s proffered reasons will permit the trier of fact to infer the ultimate fact of intentional discrimination, and the Court of Appeals was correct when it noted that, upon such rejection, “[n]o additional proof of discrimination is required” .... [Id. at 511.]
I understand this language, especially the reference to “suspicion of mendacity,” and its application by both Justice Riley and Justice Brickley, to refer to the
While I generally concur with Justice Riley’s statement of the law, I dissent from her application of the law in this case. For unknown reasons, her opinion eschews any analysis of plaintiff’s proofs regarding pretext in the context of the civil rights claim. Ante at 28. The plaintiff’s evidence rebutting defendant’s presentation of its reasons for eliminating plaintiff’s position was the overall profitability of the parent organization. As the majority recognizes, it was insufficient, standing alone, to raise a triable issue of falsity. At this point in the analysis, the question becomes whether a reasonable trier of fact could find from plaintiff’s remaining proofs that, more likely than not, plaintiff’s age or gender was a reason for the elimination of her position, i.e., that defendant’s reduction in force was a pretext for discrimination.
Plaintiff’s proofs consisted at best of equivocal evidence that she was more qualified than younger persons who were paid from different budgets. While an employer may not hide behind a termination by parceling out plaintiff’s jobs, there is no dispute that defendant engaged in a work force reduction. Although some of plaintiff’s duties were reassigned among other employees, the younger persons she points to also performed some different tasks from those involved in the eliminated position. Some of plaintiff’s duties appear to have been assigned to persons other than those she references as evidence of discrimination, and some of plaintiff’s duties, for example, hourly training, appear to have been elimi
Certainly, if Justice Riley believed that the evidence produced by the plaintiff in Matras v Amoco Oil Co, 424 Mich 675; 385 NW2d 586 (1986), was insufficient to show “age was a determining factor in [the plaintiff’s] discharge,” id. at 715 (Riley, J., dissenting), the
I fail to understand how plaintiff’s evidence here shows discriminatory animus. Rather, because the evidence of the RIF proves “the discharge . . . would have taken place without regard to age [or gender] discrimination, age [and gender were] not . . . determining factor[s] in [plaintiff’s] discharge.” Matras at 691. Given the fact that Justice Riley concluded in Matras that the civil rights laws were “ ‘not intended as a vehicle for judicial review of business decisions,’ ” id. at 715, I am unable to understand how she can find this plaintiff’s evidence sufficient to survive summary disposition under the articulated standard. In short, plaintiff’s evidence does not create “a genuine dispute about [defendant’s] intent or motive . . . sufficient ... to permit a jury to find that the defendant’s proffered reason [the RIF] is
If the plaintiff chooses to rebut defendant’s offer of a legitimate business reason with evidence of falsity, she must do more than create a triable question of falsity. Stripped to its essentials, plaintiff’s proofs, when viewed in a light most favorable to her, consist of evidence that she was replaced during a reduction in force by employees who were younger and possibly less qualified than she was.
The lead opinion erroneously relies on the rule of contract analysis that requires that ambiguous terms be construed against the drafter to find a question of fact regarding legitimate expectation. Ante at 18, n 17. The lead opinion thus unfortunately confuses the contract prong of Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579; 292 NW2d 880 (1980), with the pure legitimate-expectations public policy theory, impermissibly fusing two approaches which this Court so long sought to independently identify. In Rood v General Dynamics Corp, 444 Mich 107, 118; 507 NW2d 591 (1993), Chief Justice Cavanagh observed that legitimate-expectation analysis is not a contract analysis:
In other words, there are two alternative theories of enforceability that may support a claim of wrongful discharge in Michigan. While the first theory is grounded solely on contract principles “relative to the employment setting,” Rowe [v Montgomery Ward & Co, Inc, 437 Mich 627, 632; 473 NW2d 268 (1991)], the second theory is grounded solely on public policy considerations. As Justice Boyle noted in her concurring opinion in In re Certified Question (Bankey v Storer Broadcasting Co), 432 Mich 438, 458; 443 NW2d 112 (1989), “the pure legitimate expectations leg of Toussaint was founded on the Court’s common-law authority to recognize” enforceable obligations that arise “ ‘outside the operation of normal contract principles.’ ”
Whether a legitimate expectation arises is an equitable issue that inquires into whether it is unjust to allow the defendant to deny the existence of just-cause employment. The issue is whether the language of the handbook would permit reasonable jurors to find that the employer created an expectation that employees would not be discharged except for cause. By its own terms the handbook expressly stated that no binding obligation was created by any statement therein. Thus, since the defendant did not manifest a clear intent, the plaintiff could not have had a legitimate expectation on the basis of statements in the handbook.
The handbook describes how Howmet relates to the industry at large, how its divisions are broken down, its relationship with the neighboring community, its equal opportunity/affirmative action program, and its policies and procedures as they relate to employees of Howmet. Nothing in the handbook indicates that terms apply to anything other than the corporation at large. Moreover, the handbook observes that the corporation was founded in 1950 in Whitehall, where plaintiff worked. I fail to understand how, when reading the handbook as a whole, the handbook or its various parts could be understood to apply to some employees and not to others. However, as noted above, if that were the case, plaintiff could not reasonably rely on one part of the handbook while ignoring another.
Nor may it be said that a question of fact is created as to “what, if anything, the employer has promised.” Rood at 138. The unambiguous expression of intent manifested by the defendant in the disclaimer of contractual obligation was designed to prevent any statement in the handbook from being interpreted as a promise. The disclaimer of obligation
I also disagree with the lead opinion’s treatment of the defendant’s
Assuming arguendo the plaintiff had a legitimate expectation that she would be discharged only for cause, in my view the proofs were insufficient to permit a rational juror to conclude that the defendant’s proffered reason for the discharge was false. Therefore, if I were to reach the issue, I would concur with the lead opinion.
Although Justice Riley states that Justice Brickley’s evaluation of the evidence “violates the principle that the reviewing court is not to . . . weigh credibility in deciding a motion for summary disposition,” ante at 38, n 39, I believe the intermediate approach adopted today requires the court, in employment discrimination cases, to fairly inquire into the sufficiency of the evidence, i.e., its probative strength.
This evidence not only establishes that defendant’s rif was bona fide with regard to the plaintiff’s just-cause claim, but also considerably weakens the probative strength of the evidence plaintiff claims would establish discriminatory animus.
While such evidence might be enough to raise the prima facie elements under McDonnell Douglas Corp v Green, 411 US 792; 93 S Ct 1817; 36 L Ed 2d 668 (1973), in the presence of defendant’s legitimate nondiscriminatory defense, the rif, such evidence does not raise a question of fact with regard to discriminatory animus.
Concurring in Part
(concurring in part and dissenting in part).
I. WRONGFUL TERMINATION
I agree with the lead opinion’s resolution of the plaintiff’s wrongful termination claim. The plaintiff created a question of fact whether she was a just-cause employee because she had a legitimate expectation of just-cause employment under Rood v General Dynamics Corp, 444 Mich 107; 507 NW2d 591 (1993). However, the plaintiff failed to raise a question of material fact that the defendant had just cause
H. DISCRIMINATION
I am unable to agree with the lead opinion’s disposition of the plaintiff’s claims of age and sex discrimination. As an initial matter, I do agree with the lead opinion’s adoption of the intermediate approach. Ante at 32-33. I also agree that “ ‘[t]he plaintiff must then introduce sufficient evidence to support two additional findings: (1) that the employer’s articulated reason for [laying off the plaintiff] is a pretext, and (2) that the true reason is discriminatory.’ Smith v Stratus Computer, Inc, 40 F3d 11, 16 (CA 1, 1994).” Ante at 36.
Though I agree with the lead opinion’s statement of the law, I disagree with its application of the law to the facts of this case. The lead opinion finds that the plaintiff presented sufficient evidence of both age and sex discrimination to survive the defendant’s summary disposition motion. Although I agree with the lead opinion’s conclusion that this plaintiff has stated a prima facie case, she has offered little evidence which shows that the defendant’s proffered business reason is false. Rather, she must rely on her evidence of the prima facie elements to prove that the defendant’s proffered reason was a pretext for discrimination. I would find that this evidence was not enough to survive the motion.
The lead opinion bases its holding on findings that the defendant hired two “substantially younger persons,” Ms. Achterhoff and Mr. Billingsley, at higher rates of pay at the same time that it terminated plaintiff. Ante at 42. The lead opinion concludes that this “anomaly in defendant’s assertion that it was conducting an RIF” provided sufficient evidence that the plaintiff was terminated as a result of age discrimination. Id. However, this finding greatly oversimplifies the facts and ignores the defendant’s evidence.
As the lead opinion points out, the plaintiff has stated a prima facie case, and the defendant has met its burden of production by stating a nondiscriminatory business reason for the plaintiff’s termination. Thus, all presumptions have “dropp[ed] out of the picture.” St Mary’s Honor Center v Hicks, 509 US 502, 511; 113 S Ct 2742; 125 L Ed 2d 407 (1993). At this point, the plaintiff must show discrimination in one of two ways. First, she may offer direct or circumstantial evidence showing that the defendant was motivated by discriminatory animus. If persuasive, this will show that the employer’s real reason was discrimination, thus disproving the proffered nondiscriminatoiy reason. Second, the plaintiff may also meet this burden by presenting evidence of falsity sufficient to show that the employer possessed a discriminatory intent. 1 Lindemann & Grossman, Employment Discrimination Law (3d ed), pp 26-27. However, because this defendant has stated a nondiscriminatory business justification for its actions, the plaintiff will only survive summary disposition if there is sufficient evidence to create a question of material fact that the defendant acted out of a discriminatory
1) THE HIRING OF ANDREA ACHTERHOFF
The hiring of Ms. Achterhoff does not provide evidence of age discrimination. Indeed, it is irrelevant for several reasons. First, Ms. Achterhoff took a newly created position as human resources representative for the Operhall Research Center.
Second, crucial decisions regarding the hiring of Ms. Achterhoff were made by people other than those who terminated the plaintiff. The plaintiff does not contest Mr. Roofs narration of the events surrounding this decision. Accordingly, it is undisputed that Operhall was not interested in any of the human resources staff, save Mr. Malady and Mr. Boczkaja. Thus, the decision not to consider Ms. Lytle for this position was made by individuals at Operhall, not Mr. Roof. Therefore, any discrimination was not committed by the person who terminated the plaintiff, and is not relevant to this case. McDonald v Union Camp Corp, 898 F2d 1155, 1161 (CA 6, 1990).
Even if Ms. Achterhoff’s hiring was relevant to the plaintiffs claims, the lead opinion oversimplifies the facts and ignores crucial evidence that removes any suggestion of age discrimination. The lead opinion rests its conclusion on the fact that Ms. Achterhoff was less qualified than the plaintiff. However, this conclusion is based solely on the fact that Ms. Lytle had been with the defendant for a longer period. This ignores the fact that Ms. Achterhoff had ten years of supervisory human resources experience with other firms. The plaintiff had a similar number of years in a supervisory capacity with the defendant. Thus, the record actually shows that Ms. Achterhoff and the plaintiff had very similar employment histories. Moreover, Ms. Achterhoff received a degree in a human resources related field. The plaintiff had no such degree and had only partially completed a steno
Finally, the lead opinion also focuses on the fact Ms. Achterhoff received greater pay than the plaintiff. However, Ms. Achterhoff was compensated from the Operhall budget, whereas Ms. Lytle was paid from the human resources budget.
2) THE HIRING OF JEFF BILLINGSLEY
Similarly, the assignment of the training responsibilities at the Whitehall Division to Mr. Billingsley does not constitute evidence of discrimination. The lead opinion finds discrimination in the retention of Mr. Billingsley. Ante at 41, 47. However, this ignores several crucial facts. First, Mr. Billingsley was only five years younger than the plaintiff. I fail to see how this difference provides evidence of age discrimination.
Second, Mr. Billingsley had been working with a different department of the corporation since 1986. Thus, he was not hired into the corporation as Ms. Lytle left. Rather, he was merely given a new position as head of training as an expansion of his existing duties. While the lead opinion is correct that Mr. Billingsley had production experience, he had been training and development manager for the year preceding his promotion. Even the plaintiff acknowledged that Mr. Billingsley’s previous job had been in training and that the new position focused on training as well. Further, the lead opinion ignores testimony that the defendant was changing its production methods, and that this process was going to require exten
The lead opinion also finds evidence of discrimination in the fact that Mr. Billingsley earned a greater rate of pay. However, this ignores the fact that only a part of Mr. Billingsley’s salary came from the human resources budget. In contrast, the plaintiff’s salary was paid entirely out of that budget, and she was terminated in an effort to reduce the costs of the human resources department. Thus, despite the lead opinion’s description of events, Mr. Billingsley was given a newly created post that consolidated functions previously held by different departments. This type of personnel change is inherent in corporate restructuring and does not constitute evidence of discrimination.
I cannot agree that the defendant’s treatment of Ms. Achterhoff and Mr. Billingsley evidences age discrimination. This defendant was reducing its work force— a process that involved the elimination of jobs and the reassignment of employees. The mere fact that two of the people retained happened to be younger than the plaintiff should not allow the plaintiff to raise a material question of fact concerning age discrimination. Matras, supra at 688.
I also disagree that the record reveals evidence of sex discrimination. I agree with the lead opinion that the isolated confrontations with Mr. Malady are insufficient to constitute evidence of discrimination. However, for the same reasons as discussed abové, I do not feel that the hiring of Mr. Billingsley shows evidence of sex discrimination. Further, I fail to understand why the lead opinion ignores the employer’s evidence that six of the eight people who took over the plaintiff’s job duties were women. The plaintiff does not dispute this. Indeed, she testified that she was uncertain who had taken over her job duties and acknowledged that several of her former duties were assigned to female employees. This distribution of the plaintiff’s job duties is inconsistent with sex discrimination. Rather, it is consistent with the employer’s desire to reduce its payroll by eliminating the number of people working in its human resources department.
While I agree that summary disposition of the wrongful-termination claim was properly awarded to the defendant, I disagree with the lead opinion’s finding on the discrimination claims. That finding misapplies the governing law and oversimplifies the facts of this complex case. Essentially, it allows a plaintiff to overcome summary disposition if the plaintiff can identify anyone who: 1) has less seniority, 2) receives greater compensation, and 3) does not share in the plaintiff’s characteristics. Apparently, it is irrelevant if the retained individual’s job was different than that held by the plaintiff or if that individual was qualified for the job. Rather, the lead opinion second-guesses the employer’s decisions on the basis of its assumptions concerning which employee was more qualified. Under this holding, I fail to see how any employer could conduct a reduction in force without facing an employment discrimination trial for each and every individual it terminates. I cannot agree that this is the correct application of current employment discrimination law.
The lead opinion asserts that I have improperly engaged in fact finding and credibility determinations. Ante at 38, n 39. However, a court must consider “affidavits, together with the pleadings, depositions, admissions, and documentary evidence” when examining a motion made under MCR 2.116(0)(10). MCR 2.116(G)(5). Citing unrefuted deposition testimony does not constitute an impermissible credibility determination.
The plaintiff has failed to offer any evidence that this position was created as a pretext for her termination. Rather, it is undisputed that the position was created to serve legitimate business purposes.
Though there was testimony that the decision to terminate plaintiff had been made in September, plaintiff was not terminated until November.
Indeed, had the plaintiff been given Ms. Achterhoff’s job because of her age, Ms. Achterhoff would have been entitled to sue because Michigan’s anti-age discrimination laws do not define a protected class as does federal law. Once Ms. Achterhoff was hired, the defendant was required to make its decision on the basis of neutral criteria. Mr. Roof testified at length that the decision was based on the decreased need for the position held by the plaintiff. The plaintiff fails to offer any evidence that rebuts this analysis.
The lead opinion apparently reads this phrase to mean comparable qualifications. Ante at 39-40, 46. However, I do not mean that the qualifications of the plaintiff and Ms. Achterhoff were similar. Rather, when compared, their qualifications reveal no evidence that discrimination motivated the decision to retain Ms. Achterhoff. See Webster’s New World Dictionary (3d college ed), p 283.
It is not sufficient for the employee to merely show a question of fact concerning qualifications. Rather, a plaintiff must offer proof that she was more qualified than the employee who received the position in order to present evidence of intentional discrimination at this stage of the analysis.
Again, the plaintiff has not presented any proof suggesting that this arrangement was fraudulent. Rather, it is uncontroverted that this arrangement was a legitimate effort to reduce the human resources budget.
The fact that Ms. Achterhoff’s salary was not paid from the human resources department’s budget is consistent with the employer’s stated business reason that it terminated Ms. Lytle as part of a reduction in the human resources budget. Rather than show evidence of falsity, this supports the employer’s proffered explanation. Thus, the lead opinion’s reliance on the retention of Ms. Achterhoff as evidence of falsity and discrimination is misplaced.
Martin v Teledyne Brown Engineering, 924 F Supp 1131, 1138, n 4 (SD Ala, 1996) (finding that only employees within the plaintiff’s department
I also question the lack of importance that the lead opinion gives to Ms. Achterhoffs hiring in its discussion of the sex discrimination claim after finding it relevant on the question of age discrimination. The lead opinion also misinterprets my reference to the number of females who assumed the plaintiff’s job duties. I do not feel that the “plaintiff could only establish her claim if defendant corporation had discharged all its female employees.” Ante at 43, n 49. Rather, I simply would not ignore the fact that the plaintiff’s job responsibilities were awarded to mostly female employees. This evidence mitigates against a finding that “one sex has been treated differently.” Id. Indeed, the lead opinion’s reliance on the retention of one male employee amounts to a finding of discriminatory animus because the defendant did not fire all its male employees.
The lead opinion repeatedly refers to the need to review all the circumstances of the plaintiff’s discharge. I am well aware of the requirement that the facts of a case must not be viewed “in a vacuum.” See ante
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