JOAN N. ERICKSEN, District Judge.
On September 16, 2011, a jury found Defendant Minco Products, Inc. ("Minco") not liable to Plaintiff Douglas Milhauser on Milhauser's claims under the Uniformed Services Employment and Reemployment Rights Act ("USERRA"), 38 U.S.C. § 4312 (2006). Milhauser claimed that Minco violated USERRA by discriminating against him and by failing to properly reemploy him after he returned from military leave. The case is now before the Court on Milhauser's post-trial Motion for Judgment as a Matter of Law (JMOL) or, alternatively, for a New Trial on the claim that Minco failed to reemploy Milhauser in the appropriate position in June 2009.
Minco manufactures flexible circuits, sensors and heaters for use in the automotive, telecommunications, medical and defense industries. In 2006, Minco hired Milhauser to work as a Maintenance Technician in Minco's Maintenance Department. At the time Minco hired Milhauser,
Milhauser asserted four claims in this case. First, he claimed that Minco discriminated against him after his second military leave in January 2009, when he supposedly returned to a position with lesser job duties and status. Second, he claimed that Minco discriminated against him after his third military leave, when he returned in June 2009 and was terminated.
A jury trial began on September 12, 2011. Minco presented evidence that during Milhauser's employment, his supervisors received several complaints about his performance. Some of these complaints related to Milhauser's ability to perform his job; other complaints related to Milhauser's attitude and behavior. Minco also presented evidence that in 2008-2009, it experienced a severe decline in customer orders. This decline led Minco to take several steps to reduce its expenses and maintain its economic viability, including cost-cutting measures, a hiring freeze, a salary freeze, pay cuts, mandatory reduction of hours, and eventually terminations. In March 2009, Minco terminated eighteen employees. In June 2009, Minco terminated an additional thirty-two employees. Milhauser was one of those employees.
John Toohey, Minco's Plant Services Manager, testified that in the spring of 2009, he was told to identify four employees who would be removed from Minco's Maintenance Department as part of the reduction in force. He explained that he selected the four employees based solely on their abilities, skill sets, and versatility. Mr. Toohey testified that he initially believed that he was prohibited from considering Milhauser as a candidate for termination because of Milhauser's military status. However, Human Resources then advised him that Milhauser could be considered for termination just like any other maintenance employee. Mr. Toohey testified that because of Milhauser's limited skills and lack of unique expertise, Milhauser should be one of the four employees removed from the Maintenance Department.
Minco also presented evidence that it did not choose to offer Milhauser a position in a different department — the Production Department — because of Milhauser's performance and behavior problems. Sherri Himmelgarn, a manager in the Production Department, testified that Milhauser often took too long to complete a task, stating that "[s]omething that should have been done in ten minutes probably took more like an hour to be done." She stated that Milhauser often spent more time talking than working. She also testified that on several occasions, Milhauser's "repairs" resulted in the equipment becoming completely unusable. Moreover, Ms. Himmelgarn was displeased by Milhauser's apathetic response when confronted with his
At the close of Minco's case, Milhauser moved for JMOL on his claim that Minco failed to reemploy him upon his return from military leave in June 2009, in violation of 38 U.S.C. § 4312.
On September 16, 2011, the jury asked the following question regarding Jury Instruction number 8:
The Court provided the jury with the following response:
Jury Instruction Number 8 read as follows:
On September 16, 2011, the jury returned a verdict finding that Milhauser failed to prove by a preponderance of his evidence either of his discrimination claims. The jury also found that Milhauser did not prove by a preponderance of the evidence that Minco failed to reemploy him in the appropriate position as required by USERRA after his returns from leave in both January 2009 and June 2009. Finally, the jury found that Minco failed to prove by a preponderance of the evidence that its circumstances had so changed as to make Milhauser's reemployment impossible or unreasonable. Milhauser's now moves for JMOL, or alternatively, for a new trial, regarding his claim that Minco violated USERRA by failing to reemploy him after he returned in June 2009. Milhauser contends that the jury was improperly instructed on the law. Specifically, Milhauser argues that termination cannot be a legitimate "position of employment" under USERRA and that Jury Instruction No. 8 incorrectly allowed the jury to believe that termination was a possible reemployment position.
Rule 50(a)(1) provides:
A party may renew a Rule 50 motion after trial. Fed.R.Civ.P. 50(b). In ruling on a renewed motion when a verdict has been returned, the court may allow the judgment to stand, order a new trial, or direct entry of judgment as a matter of law. Fed.R.Civ.P. 50(b)(1)-(3). When considering a post-trial motion for judgment as a matter of law, the court determines "whether the record contains sufficient evidence to support the jury's verdict." Bass v. Gen. Motors Corp., 150 F.3d 842, 845 (8th Cir.1998). The court views the evidence in the light most favorable to the non-moving party and grants the non-moving party the benefit of all reasonable inferences. Canny v. Dr. Pepper/Seven-Up Bottling Group, Inc., 439 F.3d 894, 899-900 (8th Cir.2006). A judgment as a matter of law is appropriate when "there is no legally sufficient evidentiary basis for a reasonable jury to find for the party on
Under Rule 59(a), "[t]he court may, on motion, grant a new trial on all or some of the issues — and to any party — ... for any reason for which a new trial has heretofore been granted in an action at law in federal court." Fed.R.Civ.P. 59(a). "The decision whether to grant a new trial lies within the sound discretion of the district court." Brown v. Cox, 286 F.3d 1040, 1046 (8th Cir.2002). A new trial is justified if the verdict is "against the great weight of the evidence," Butler v. French, 83 F.3d 942, 944 (8th Cir.1996), and a new trial should be granted only where it is necessary to prevent a miscarriage of justice. Bass, 150 F.3d at 845; McKnight v. Johnson Controls, Inc., 36 F.3d 1396, 1400 (8th Cir.1994). "In determining whether a verdict is against the weight of the evidence, the trial court can ... weigh the evidence, disbelieve witnesses, and grant a new trial even where there is substantial evidence to sustain the verdict." White v. Pence, 961 F.2d 776, 780 (8th Cir.1992) (quotation marks omitted). "The court should reject a jury's verdict only where, after a review of all the evidence giving full respect to the jury's verdict, the court is left with a definite and firm conviction that the jury has erred." Ryan v. McDonough Power Equip., Inc., 734 F.2d 385, 387 (8th Cir.1984). A new trial may also be ordered if the court erred in instructing the jury on the applicable law. T.H.S. Northstar Assocs. v. W.R. Grace & Co.-Conn., 860 F.Supp. 640, 650 (D.Minn. 1994), vacated on other grounds, 66 F.3d 173 (8th Cir.1995). The jury instructions are to be considered in their entirety to determine whether the charge fairly and adequately submits the issues to the jury. Laubach v. Otis Elevator Co., 37 F.3d 427, 429 (8th Cir.1994). Erroneous jury instructions may be grounds for a new trial if "the errors misled the jury or had a probable effect on the jury's verdict." Goss Int'l Corp. v. Man Roland Druckmaschinen Aktiengesellschaft, 434 F.3d 1081, 1093 (8th Cir.2006) (internal quotation marks omitted).
USERRA entitles returning servicemembers to certain reemployment rights, to ensure that they are not penalized for their military service. Under USERRA, "any person whose absence from a position of employment is necessitated by a reason of service in the uniformed services shall be entitled to the reemployment rights and benefits ... of this chapter" if the person meets certain eligibility requirements.
If an employer fails to prove impossibility or unreasonableness, then USERRA requires that the returning employee be "promptly reemployed in a position of employment." Id. § 4313(a). The appropriate reemployment position depends on the length of the employee's service. Where
The escalator position is the job position the employee "would have attained with reasonable certainty if not for the absence due to uniformed service." 20 C.F.R. § 1002.191. "Reasonable certainty" is a "high probability," not an absolute certainty. Id. § 1002.213. "The principle behind the escalator position is that, if not for the period of uniformed service, the employee could have been promoted (or, alternatively, demoted, transferred, or laid off) due to intervening events." Id. § 1002.191. In some cases, application of the escalator principle may result in adverse consequences when the employee is reemployed.
20 C.F.R. § 1002.194.
Minco has never claimed that Milhauser was not qualified for the escalator position. Rather, Minco asserted at trial, and continues to argue now, that because it was undergoing a company-wide reduction in force, and because of Milhauser's relative lack of skills, previous poor work performance and behavior issues, Milhauser would have been included in that reduction even had he remained continuously employed. Thus, Minco argues, the escalator position in this case was termination — and Minco properly "reemployed" Milhauser in that position. Milhauser, however, claims that "termination is not, under any logical analysis, a `position of employment,'" but is instead "a position of non-employment." Pl.'s Reply Mem. 2. He believes that he was absolutely entitled to be rehired as a Maintenance Technician when he returned from leave.
Further, as Minco notes in its brief, Milhauser's interpretation requires the Court to read the statute as saying that the returning employee must be reemployed "in the position of employment in which the person would have been employed if the continuous employment ... had not been interrupted, unless that position would be discharge." Courts must "refrain from embellishing statutes by inserting language that Congress has opted to omit." SEC v. Zahareas, 272 F.3d 1102, 1106-07 (8th Cir.2001) (internal quotation marks omitted). The plain language of the statute does not indicate that the employee cannot be demoted, laid off, or terminated — it only requires that the returning servicemember be reemployed in the same position he would have been in had he not taken military leave. See 38 U.S.C. § 4313(a)(1)(A); Clegg v. Ark. Dep't of Correction, 496 F.3d 922, 930 (8th Cir. 2007) (stating that USERRA "is violated only if [the employee] was not reemployed in the position []he would have been in had []he not taken military leave").
Not only is termination a possible position of reemployment, it can sometimes be a required position of reemployment. For example, in Derepkowski v. Smith-Lee Co., Inc., 371 F.Supp. 1071 (E.D.Wis.1974), the court found that an employer may not place a returning servicemember in an available employment position when the escalator position was termination. In that case, during the plaintiff employee's military leave, the defendant employer transferred its operations from Milwaukee to New York. Id. at 1071. Some employees were terminated at the time of the transfer and were paid severance benefits. Id. Upon the employee's return, he was offered a position in the New York operation, but was not offered termination with severance benefits. Id. The court concluded
Contrary to Milhauser's argument, it is clear that in some cases, termination is a possible reemployment position. Milhauser appears to concede this point by arguing that termination is only appropriate in cases involving seniority ladders. Therefore, the question remains as to under what circumstances can termination be a possible position of employment under USERRA. Milhauser argues that the only situation in which application of the escalator principle may result in an adverse consequence upon reemployment is when a seniority ladder is implicated; no such seniority ladder was involved here. Because Milhauser was not restored on a seniority ladder, he asserts that he had an absolute right to reemployment in some position, regardless of whether or in which position he would have been employed but for his military leave. Minco contends that adverse consequences may occur even in the absence of a seniority ladder.
Looking first at the plain language of the statute, section 4313(a)(1)(A) requires that the returning employee be placed "in the position of employment in which the person would have been employed if the continuous employment of such person with the employer had not been interrupted by such service." See 38 U.S.C. § 4313(a)(1)(A). The position must be determined with "reasonable certainty." 20 C.F.R. § 1002.191; Id. § 1002.213 (explaining that "reasonable certainty" is a "high probability," not an absolute certainty). The statutory provision makes no reference to seniority, nor does it explain what factors a jury can or cannot consider when determining in which position it is reasonably certain the returning veteran would have been employed had he not taken leave.
Milhauser relies heavily on 20 C.F.R. § 1002.194, which provides, in part:
This regulation does not say that restoration on a seniority ladder is the only situation in which adverse consequences
Further, the Department of Labor specifically addressed section 1002.194 and concluded that factors other than seniority can also adversely affect the reemployment position. See Uniformed Services Employment and Reemployment Rights Act of 1994, as Amended, 70 Fed.Reg. 75246, 75273 (Dec. 19, 2005). The initial proposed regulation stated,
Regulations Under the Uniformed Services Employment and Reemployment Rights Act of 1994, as Amended, 69 Fed. Reg. 56266, 56296 (proposed Sept. 20, 2004) (emphasis added). In response to a commenter, who suggested that there are "escalator-based" factors other than seniority, such as job location, job classification, or shift assignment, which may affect the reemployment position, the Department revised the section so that these two sentences were not "too narrowly drawn." 70 Fed.Reg. 75273. Thus, contrary to Milhauser's argument, section 1002.194 was specifically revised so as to not be limited only to situations involving seniority ladders.
Neither the statute itself nor the regulations lead to the conclusion that adverse
Although Milhauser's only argument has been that seniority status is the sole factor that may result in adverse consequences — an argument which the regulations squarely reject — the Court nevertheless explored beyond the arguments made and case law provided by the parties.
In McKinney v. Missouri-Kansas-Texas Railroad Co., 357 U.S. 265, 78 S.Ct. 1222, 2 L.Ed.2d 1305 (1958), the Court interpreted the Universal Military Training and Service Act and held that the employee is entitled only to any automatic promotions or benefits he would have received.
McKinney, 357 U.S. at 271-72, 78 S.Ct. 1222.
The Eighth Circuit has stated:
Goggin v. Lincoln St. Louis, 702 F.2d 698, 701 (8th Cir.1983) (citing McKinney, 357 U.S. at 272, 78 S.Ct. 1222). Similarly, the district court in Lapine v. Town of Wellesley, 167 F.Supp.2d. 132, 141 (D.Mass.2001), when interpreting the Veterans' Reemployment Rights Act, stated, "[Plaintiff] is entitled to any promotions that would have occurred automatically but is not entitled to promotions that rely `on the exercise of discretion' on the part of the [defendant].'" See also Rivera-Melendez v. Pfizer Pharm., Inc., Civil No. 10-1012(MEL), 2011 WL 5442370 (D.P.R. Nov. 9, 2011) ("Plaintiff was not entitled to be reinstated as an API Team Leader because it was a position for which employees were selected based on managerial discretion and thus not an escalator position, which is an automatic promotion based on employee seniority.").
When drafting the final regulations, the Department of Labor received several comments regarding application of the escalator principle, including questions regarding discretionary promotions. 70 Fed. Reg. 75271. One commenter suggested that "[t]he escalator principle is appropriate only in workforces where pay increases and promotions occur automatically (e.g.
The case law appears to suggest that an employee may only be entitled to benefits that would have automatically accrued without any discretion on the part of the employer — the Department of Labor's refusal to include such explicit language, however, suggests that no bright-line rule was intended. If it is ultimately determined that the escalator principle only applies to automatically-accrued benefits, then it is possible that in the future a court might decide that the escalator principle applies in a consistent fashion when adverse consequences are involved: an employee may only be subject to adverse consequences that would have been automatically imposed without any employer discretion. The consequence may be due to application of a seniority ladder, or it may be due to across-the-board changes that automatically affect all employees with the same job title or responsibilities. See, e.g., Levine, 178 F.2d 440.
If a court were to find that that the escalator principle can only result in a change in position when the change occurs automatically, then arguably the escalator principle should not have applied to Milhauser. It was undisputed that Minco did not eliminate its entire Maintenance Department, but instead exercised discretion when deciding which four Maintenance Department employees to terminate as part of the reduction in force. However, Milhauser has never argued that he could only be subjected to automatic changes in his position, nor has he cited any of the case law discussed above. His argument has consistently been that he was absolutely entitled to a job, regardless of what happened to his former position or why. Had the entire Maintenance Department been eliminated, and all maintenance employees terminated without any discretion by Minco, Milhauser asserts that because a seniority system was not involved, he was still entitled to a job, even if it meant one in an entirely different department. The Court will not grant JMOL in favor of Milhauser based on an argument Milhauser did not make. Milhauser argues instead that seniority is the only factor that may result in an adverse consequence, and that does not appear to be the law. The Court only raises this question now because it appears to be an unclear area of law worthy of exploration.
It is evident that under some circumstances, termination may be an appropriate "position of employment" under USERRA. But there is little, if any, guidance as to which circumstances those might be. The statute itself, the implementing regulations, and the scarce case law provide little assistance. For purposes of this motion, however, it is unnecessary to resolve this issue. Even if termination was not an appropriate position of reemployment in Milhauser's situation under section 4313, based on the facts presented at trial, as discussed below, Minco was nevertheless permitted to terminate Milhauser's employment.
Throughout trial until now, Milhauser has argued that under no circumstances could Minco terminate his employment. He argued that because he was a member of the uniformed services, he was absolutely entitled to a job, regardless of Minco's changed circumstances. He repeatedly asserted that Minco's financial problems and resulting reductions in force could not make reemployment "impossible or unreasonable" because Minco did make its termination decisions based on seniority. Thus, according to Milhauser, Minco was not excused from its reemployment obligations. Following Milhauser's reasoning, Minco would have had to first terminate all other employees in the Maintenance Department, and perhaps even all other employees in the Production Department, before it could even consider terminating Milhauser. And even then it might have not been impossible or unreasonable to rehire Milhauser. Milhauser asserted during closing arguments that because Minco "is an $80 million company," it had to find a job for Milhauser somewhere. This is simply not the law.
USERRA is not a veteran's preference statute. While the statute is to be "broadly construed in favor of its military beneficiaries," Rademacher v. HBE Corp., 645 F.3d 1005, 1010 (8th Cir.2011), it was not intended to give returning servicemembers special benefits not provided to other employees. See Monroe v. Standard Oil Co., 452 U.S. 549, 561, 101 S.Ct. 2510, 69 L.Ed.2d 226 (1981) (explaining that the legislative history of USERRA's predecessor "strongly suggests that Congress did not intend employers to provide special benefits to employee-reservists not generally made available to other employees"). "Reemployment rights under USERRA cannot put the employee in a better position than if he or she had remained in the civilian employment position." 20 C.F.R. § 1002.42. In Fishgold v. Sullivan Drydock & Repair Corp., 328 U.S. 275, 286, 66 S.Ct. 1105, 90 L.Ed. 1230 (1946), the United States Supreme Court explained that the escalator principle "made the restoration as nearly a complete substitute for the original job as was possible. No step-up or gain in priority can be fairly implied." If the employee had been demoted during his military leave, then upon his return, he would have lost his old position and would be entitled to only the inferior one. Id. The statute was meant to "guarantee the veteran against loss of position or loss of seniority by reason of his absence." Id. at 285, 66 S.Ct. 1105 (emphasis added). The Court explained that had Congress intended to absolutely prohibit employers from laying off returning veterans where there was still work that could be performed, Congress could have used language making that intent clear.
USERRA allows an at-will employer to terminate a returning servicemember for a number of reasons. For example, USERRA allows an employer to refuse to rehire an employee who had been fired for cause based on actions taken before reemployment. Hays v. Commc'n Techs., Inc., 753 F.Supp.2d 891, 899 (S.D.Iowa 2010). In Hays, the court found reemployment to be unreasonable because the employee had engaged in insubordinate behavior that would have been cause for dismissal at any other time. Id. at 899-900.
USERRA also provides that when the returning servicemember's position has been eliminated as part of a reduction in force, the employer is excused from its reemployment obligation. See, e.g., Davis v. Halifax County School System, 508 F.Supp. 966, 968 (E.D.N.C.1981) (explaining that an employer is excused from reemploying a veteran "only where reinstatement would require creation of a useless job or where there has been a reduction in the work force that would reasonable have included the veteran"); Cole v. Swint, 961 F.2d 58, 60 (5th Cir.1992) ("The purpose of the exemption is to allow employers who have eliminated a reservist's position or otherwise drastically changed their business to avoid rehiring someone for a job that no longer exists."); Kay v. Gen. Cable Corp., 144 F.2d 653, 655-56 (1944) (stating that the exemption "was intended to provide for cases where necessary reduction of an employer's operating force or discontinuance of some particular department or activity would mean simply creating a useless job in order to reemploy the plaintiff," but that more than just "some loss of efficiency and possibly some additional expense" is needed).
And despite the protections afforded by section 4316(c), which provides that a person who is reemployed under USERRA cannot be discharged without cause, an employer is still allowed to terminate a rehired employee as part of a reduction in force. See Johnson v. Mich. Claim Serv., Inc., 471 F.Supp.2d 967, 974 (D.Minn.2007) (citing numerous cases and explaining that "when an employer has demonstrated a genuine financial need, which prompts a reduction-in-force, the termination of an USERRA-protected employee can be `for cause'"); Ferguson v. Walker, 397 F.Supp.2d 964, 974 (C.D.Ill. 2005) (granting defendants' motion for summary judgment and concluding that the employer's "decision to terminate Plaintiff's employment because of budgetary concerns was `a reasonable one under the circumstances'"); Michell v. Cont'l Loss Adjusting Servs., Inc., No. 93-0219-BH-M, 1994 WL 761962, at *7 (S.D.Ala. May 25, 1994) (finding that the termination of one employee was for "cause" when there was insufficient work volume to justify retaining two employees in the same position); Ruesterholtz v. Titeflex, Inc., 166 F.2d 335, 336 (3d Cir.1948) (rejecting the petitioner's argument that adverse economic conditions do not constitute a legitimate basis for discharge and stating that "[w]e are hardly inclined to assert that an employer is required to continue the job of a restored veteran purely because the employee is a veteran").
USERRA does not require that an employer give preference to the returning servicemember over a more desirable employee. Cf. Madden v. Rolls-Royce Corp., No. 1:06-cv-0584, 2008 WL
Milhauser notes that "[e]very case that addresses an employer's financial condition as a reason to excuse reemployment analyzes the issue under the `impossible or unreasonable' standard currently found in § 4312(d)." Pl.'s Reply Mem. 5. The affirmative defense provision of USERRA provides that "[a]n employer is not required to reemploy a person under this chapter if... the employer's circumstances have so changed as to make such reemployment impossible or unreasonable." Id. § 4312(d)(1)(A). "For example, an employer may be excused from reemploying the employee where there has been an intervening reduction in force that would have included that employee." 20 C.F.R. § 1002.139. The employer has the burden of proving impossibility or unreasonableness. 38 U.S.C. § 4312(d)(2). The jury found that Minco did not prove its affirmative defense.
Milhauser now argues that an interpretation that allows termination to be a possible reemployment position under section 4313 of USERRA renders the affirmative defense provision under section 4212(d) superfluous. He contends that Minco cannot rely on the same evidence — that Milhauser would have been terminated as part of a reduction in force due to poor economic conditions — when arguing that Milhauser's reemployment position was termination. Instead, any consideration of the employer's economic conditions must be limited to the "impossible or unreasonable" analysis.
Later, during jury instruction discussions, Milhauser insisted that the jury not be informed that Minco's economic condition and resulting reduction in force could be considered as part of the affirmative defense analysis. The draft instruction on the affirmative defense was as follows:
Milhauser argued that the last sentence of the instruction was improper. The instruction was based on 20 C.F.R. § 1002.139, which explains that "an employer
Thus, while Milhauser now argues that an employer cannot make the same economic argument under section 4313 as it did under its section 4312(d) affirmative defense, Milhauser seemingly ignores the fact that he previously argued that Minco could not make that economic argument under section 4312(d) either. The case law is clear that the employer's economic condition is a relevant factor to be considered somewhere in the USERRA analysis. And despite finding that Minco did not prove its affirmative defense, it is apparent that the jury, in reaching its verdict, did consider Minco's economic problems and resulting reduction in force. The jury found that Milhauser did not prove that Minco failed to reemploy him in the appropriate position. Since it was undisputed that Minco terminated Milhauser, the jury could have reached its conclusion only by first finding that the "appropriate reemployment position" in this case was termination. The only evidence Minco presented related to Milhauser's termination was that he was terminated as part of a reduction in force. Thus, the jury necessarily found that it was reasonably certain that Milhauser would have been terminated as part of Minco's reduction in force.
Based on the jury instructions as a whole, the jury understood that at some point in the USERRA analysis it was to consider Minco's economic problems and resulting reductions in force. The jury obviously considered these factors when finding that Milhauser would have been terminated had he not taken military leave. The fact that the jury concluded that it was reasonably certain that Milhauser would have been terminated as part of Minco's reduction in force, yet found that Minco did not prove its affirmative defense of impossibility or unreasonableness, indicates to the Court that the jury may not have understood that Minco's economic conditions and reduction
The overall purpose of USERRA is to put a returning servicemember back in the position he would have been in had he not taken military leave. He is not to be made worse off. But "[r]eemployment rights under USERRA cannot put the employee in a better position than if he or she had remained in the civilian employment position." 20 C.F.R. § 1002.42. Yet that is precisely what Milhauser urges the Court to do. Despite the overwhelming evidence that Milhauser lacked the skills, expertise, or versatility of other Maintenance Technicians, and despite the undisputed evidence that there had been numerous complaints about the quality of Milhauser's work, he asserts that he should have been given preference over these other more experienced, more versatile, or more competent employees who were not terminated. Because of the fortunate happenstance that he went on military leave at a time when his employer was suffering from a major economic downturn and severe decline in business, Milhauser believes that he should have been secure in his job while other, better employees were let go. His interpretation of USERRA effectively renders it a veterans' preference statute — something that it simply is not.
The jury determined that Milhauser was not made worse off by his military leave — he would have been terminated even had he remained continuously employed. Despite any possible misunderstanding by the jury regarding the analysis of the appropriate reemployment position and analysis of the affirmative defense, the jury instructions as a whole fairly and adequately stated the substantive law, as demonstrated by the jury's ultimate arrival at a verdict that appropriately considered all the relevant factors under USERRA. Thus, Milhauser is not entitled to JMOL or a new trial.
Moreover, based on the evidence presented at trial, it would have been against the great weight of the evidence for the jury to find that Milhauser would not have reasonably been included in Minco's reduction in force. A defendant proves its affirmative defense if it shows that reemploying the returning servicemember was impossible or unreasonable, and this can be shown by a reduction in force that reasonably would have included the returning servicemember. 38 U.S.C. § 4312(d); 20 C.F.R. § 1002.139. The evidence adduced at trial overwhelmingly supported Minco's affirmative defense. It was undisputed that in 2008 and 2009, Minco suffered from a severe decline in business as part of the nation-wide economic downturn. It was undisputed that Minco took a number of cost-cutting measures, including two company-wide reductions in force. It was also undisputed that as part of the second reduction in force, four employees from the Maintenance Department were to be terminated. Mr. Toohey testified that he based his termination decisions on two factors: the employees' versatility and knowledge — employees who he retained either had to be so versatile that they could work on a
Minco also presented compelling evidence that Milhauser was not selected for a job in the Production Department because of previous complaints regarding his work performance, attitude, and behavior. Ms. Himmelgarn testified about complaints she had received regarding Milhauser's inability to service or repair the equipment in her department. She testified that Milhauser's "repairs" sometimes led to the equipment becoming completely inoperable. In fact, some employees in her department specifically requested that Milhauser not work on their equipment and asked engineers from other departments to help them instead. Ms. Himmelgarn explained these issues to other Production Managers, who relied on her advice when deciding not to offer Milhauser one of the open positions in the Production Department. Milhauser presented no evidence to rebut this testimony, nor were there similar complaints or issues regarding the employees to whom such production job offers were made.
If the Court were to retry this case, it would have to find as a matter of law that Minco proved its affirmative defense that it would have terminated Milhauser as part of its reduction in force. There was no evidence, not even a scintilla, to the contrary. Thus, even if Jury Instruction No. 8 was misleading, the jury came to the correct conclusion based on the evidence presented. In fact, it came to the only conclusion that the evidence permitted. If retried, the outcome would remain unchanged. Based on the evidence presented at trial, judgment in favor of Milhauser is entirely inappropriate. The Court therefore denies Plaintiff's Motion for Judgment as a Matter of Law. Further, Milhauser was not prejudiced by any possible jury confusion regarding the escalator position instruction, so a new trial is not necessary to prevent injustice. See Bening v. Muegler, 67 F.3d 691, 696 (8th Cir.1995) ("If the objecting party can ... demonstrate that it was prejudiced, a new trial is necessary."). If anything, a new trial would be a pointless exercise in judicial futility.
Based on the files, records, and proceedings herein, and for the reasons stated above, IT IS ORDERED THAT:
1. Plaintiff's Motion for Judgment as a Matter of Law, or in the alternative, for New Trial [Docket No. 81] is DENIED.