The opinion of the court was delivered by PAYNE, J.A.D.
Plaintiff, Sharon Kelly O'Brien, has appealed from an order of summary judgment entered in favor of her employer, Telcordia Technologies, Inc., in an action instituted by plaintiff alleging age discrimination in employment in violation of the New Jersey Law Against Discrimination (NJLAD),
The record discloses that plaintiff was a long-term employee of Telcordia, occupying, since 1998, a position as a managing director in the company's Customer Service and Care Center (CSCC). In that capacity, she oversaw technical support to customers utilizing Telcordia's software systems, launched new products and managed her unit's yearly budget. Her supervisor was Executive Director Anita Amin.
As the result of an economic downturn in the telecommunications industry, commencing in 2001, Telcordia began a process of reducing its workforce from a peak of 8,000 employees to less than 2,600 in 2007. In 2002, Telcordia reduced its workforce by 787 employees, including plaintiff, who was laid off on October 30, 2002 at the age of fifty-one after employment by Telcordia and its predecessors of more than twenty-nine years.
In June 2002, the managing directors of the CSCC were reassigned to report either to a business unit denominated Strategic Business Management Systems (SBMS) or to a unit called Operation Support Systems (OSS). Managing directors Demetra Agelopoulos, Guidon Sorbo and Monica Brown were assigned to SBMS. Also, one of the products for which plaintiff had been responsible was transferred to Sorbo in SBMS. The remaining managing directors, including plaintiff, were reassigned to the OSS business. They continued to report, as previously, to Anita Amin in the CSCC.
In the Fall, a further reorganization occurred. At that time, Agelopoulos and the products for which she was responsible were returned to Amin's supervision in the CSCC. Amin was also made responsible for the supervision of an employee named Michael Allen. Additionally, the CSCC was merged into a unit called Software Systems, and it was determined that it would be led by five executive directors. Because eight CSCC directors had skills that qualified them for those five positions, lay-offs, or "force adjustments" as Telcordia termed it, were required. The eight director candidates for the five positions were plaintiff, Agelopoulos, Patrick Liang, James Galiardi, John Stallone, John Sullivan, Joseph Lamendella and Michael Allen. Additionally, the following four additional employees were considered: Stuart Lieberman, Joyce Coker, Jeffrey Campbell and John Szebo. Each was interviewed by Amin. She chose Galiardi, Agelopoulos, Stallone, Liang, and Allen. At the time, Galiardi was approximately fifty-seven years of age; Agelopoulos was twenty-nine. The ages of the other retained employees is not stated in the record. Six of the non-selected candidates, including plaintiff, were laid off.
Following her lay-off, on July 24, 2003, plaintiff filed suit, alleging both age discrimination and "sex-plus" discrimination, based on her status as a mother of two small children. Following extensive discovery, Telcordia successfully moved for summary judgment. A subsequent motion by plaintiff for reconsideration of the dismissal of her age discrimination claim was denied. Plaintiff has appealed only the judgment dismissing that claim.
On appeal, plaintiff argues that summary judgment was improperly granted and that the motion judge overlooked direct evidence of discrimination and numerous genuine issues of fact regarding pretext. In reviewing her arguments, we apply the same standard that governed the trial court under
To prevail at trial, plaintiff must present either circumstantial or direct evidence of age discrimination. A case based on circumstantial evidence is generally governed by the burden-shifting procedures established in a Title VII context in
Although disputed by plaintiff, we find as a matter of law in this case that Telcordia's demonstrated financial difficulties, arising from a downturn in the telecommunications market, provided a legitimate non-discriminatory reason for its massive force reductions, including plaintiff's lay-off.
In this matter, plaintiff relies as well on "mixed-motive" precedent, first articulated by the United States Supreme Court in a Title VII context in
In
We discussed
Prior to the Supreme Court's decision in
We also note as significant to this appeal the United States Supreme Court's decision in
The Court noted that the ADEA provides that "[i]t shall be unlawful for an employer . . . to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment,
With these principles and decisions in mind, we turn to the evidence that plaintiff claims supports her case.
First, plaintiff relies on the certification of Stephen Sperman, who attested to first-hand knowledge of discriminatory practices used in connection with Telcordia's 2002 force reduction process. Sperman, who brought his own wrongful discharge action against Telcordia, which was dismissed following an arbitration hearing, stated that he was hired at age fifty-eight by Telcordia in 1999 as a director responsible for the company's network monitoring assurance and element communicator products, as well as its installation and deployment group and the CSCC department. His supervisor in 2002 was John Musumeci.
Sperman stated that, at a August or September 2002 staff meeting, Musumeci advised that force reductions would be implemented pursuant to a "going forward" policy that took an employee's age and pension eligibility into account. At the meeting, Musumeci reviewed an employee list and asked about the age and pension eligibility of the employees listed on it. Although Sperman objected to the policy in a conversation with Linda Apgar, a member of the company's human resources department, she advised that the policy as articulated by Musumeci would be followed.
Additionally, Sperman stated that he was directed by Musumeci to provide him with a list of employees who could be terminated, which he did. However, he refused to take subordinates' age and pension eligibility into consideration, despite Musumeci's instruction that he do so. Sperman also stated that he had interviewed for a job with Bill Zimlinghaus and, after doing so, was approached by Pinki Patel, "who was apparently working with Zimlinghaus," and asked what his age was and whether he was pension-eligible. Sperman refused to answer these questions.
Plaintiff contends that the statements by what she claims to be upper management set forth in Sperman's certification provide direct evidence of discrimination on the basis of age that is sufficient to shift the burden, pursuant to a mixed-motive analysis, to Telcordia to demonstrate that, even if age had not been considered a factor in its decision to terminate her employment, termination would nonetheless have occurred. However, the motion judge overlooked the evidence and did not engage in a mixed-motive analysis. In the alternative, plaintiff contends that the evidence should have been considered in connection with a
Telcordia argues in response that the reasoning set forth in the United States Supreme Court's decision in
Telcordia argues additionally that plaintiff is barred by issue preclusion from arguing that Spearman's certification constitutes direct evidence of age discrimination, from claiming that the statements were made by Musumeci and Apgar, and from contending that Telcordia had a policy to discriminate against older workers. In this regard, Telcordia notes that, in dismissing Sperman's own claim of age discrimination, the arbitrator chose not to credit Sperman's evidence, stating that "[t]he evidence convinces me that . . . Respondent had a non-pretextual legitimate, non-age related reason to retain Peterson over Claimant," and then continuing:
Telcordia claims additionally that Sperman "effectively recanted" the statements in his certification, and in any case, those statements are inadmissible because neither Musumeci nor Apgar was involved in the selection of plaintiff for lay-off.
As an initial matter, we reject Telcordia's position that plaintiff is collaterally estopped by the arbitrator's dismissal of Sperman's case from utilizing the evidence produced by him in that proceeding in her own action. Among other requirements that must be fulfilled in order to invoke the doctrine, Telcordia must demonstrate that "the party against whom the doctrine is asserted was a party to or in privity with a party to the earlier proceeding."
We do not find that the relationship between Sperman and plaintiff, which was premised only upon a commonality of interest in seeking recovery from Telcordia as the result of alleged age discrimination, to have been sufficiently close that privity could be found.
However, that conclusion does not end our analysis of the issues raised by plaintiff in connection with the Sperman certification. In our view, the principal consideration in connection with this appeal is whether the hearsay contained in the Sperman certification would be found admissible if a trial were held in plaintiff's case. If it would not, then any discongruence between Sperman's account and Telcordia's position on the method employed in its force reductions would be immaterial to plaintiff's position.
In this matter, as in
Further, we lack evidence that would permit us to determine that Musumeci, Apgar and Patel were employed at a level that would permit their alleged comments to be attributed to Telcordia, or that their comments were reflective of an approach that was employed in plaintiff's case. In the circumstances presented, we conclude that a remand is required for a determination of the admissibility of the statements set forth in the Sperman certification as an exception to the hearsay rule and pursuant to
By adopting this alternative, we defer a decision on the thorny issue of the continued viability of the use of a
Plaintiff has additionally claimed that other evidence and factual issues that the motion judge failed to recognize precluded summary judgment. In this respect, plaintiff alleges that Telcordia violated the force adjustment policy that was in effect at the time of plaintiff's termination, and instead relied on a superseded version of that policy to justify the retention of Agelopoulos and the lay-off of plaintiff. It is plaintiff's claim that Telcordia relied on an August 2001 policy, rather than its February 2002 policy. The February 2002 policy provided:
Under the February 2002 policy, plaintiff would have been retained and Agelopoulos would have been laid off because plaintiff was regarded as a good performer and she had vastly greater seniority in comparison to Agelopoulos.
Telcordia contends that, in laying-off plaintiff, it relied on a September 27, 2002 policy, which provided:
Contrary to plaintiff's allegations, we find no evidence of post hoc fabrication in Telcordia's claim. The September 2002 policy was attached to the certification of William Wanke, President, Service Delivery Solutions at Telcordia and identified as that in effect at the time of plaintiff's lay-off. Further, in deposition testimony, Wanke identified the policy attached to his certification as the one applicable in October 2002. As Wanke described the October 2002 force reduction process:
Company practice coincided with the September 2002 policy in subordinating seniority to considerations related to an employee's ability to meet present and future business needs. VanDuyne, a Human Resources Department member, employed in a position denominated as "Partner," confirmed that such a focus was utilized at the time, stating that Amin had interviewed director candidates and that she and others "were looking for the people with the most and best experience . . . in that particular function that would be suitable candidates." Carol Cole, a former Vice-President of Human Relations, testified that for a considerable period of time, Telcordia followed the last-in-first-out rule. However, "at some point, again, we were left with, by and large, good people, and we had to look at other factors in addition to the most recently hired and performance." The company was "now looking more closely at work skills, technical knowledge, knowledge of the customer, domain knowledge, adaptability became very important, openness to change."
Even plaintiff admitted to knowledge of the change in policy from a seniority-based system to one based on qualifications, testifying in her deposition that Amin announced the new procedures in the September 23, 2002 meeting. Under these circumstances, we do not find valid the issue that plaintiff seeks to raise concerning the use of the wrong termination policy in connection with the October 2002 force reduction.
Further, we find nothing discriminatory in Telcordia's decreased consideration of seniority and increased focus on ability to meet business needs. Indeed, in her deposition, plaintiff stated that, if left to her, she would have adopted a similar focus. The following exchange occurred:
Tellingly, plaintiff was unable to determine, if she had been in that employee pool, whether a director given lay-off responsibility would have retained her under these criteria.
Plaintiff, relying on
At the time of the October 2002 lay-offs, Agelopoulos was twenty-nine years of age, with seven years of service with the company. She graduated from Columbia University School of Engineering with a B.S. degree in computer science. She was employed by Bellcore, a predecessor to Telcordia, in 1995 as a product tester, testing software, and writing scripts to help automate the testing of the software and eliminate the need for human involvement. Thereafter, she became a tester team leader and a test coordinator. She testified:
After service in another department as a release manager, Agelopoulos was transferred to the CSCC, and was later promoted to a director position under the supervision of Amin. In that position, Agelopoulos often traveled to her clients' sites to address technical issues regarding the products that Telcordia leased to them, sometimes remaining for considerable periods of time.
The April 18, 2002 performance review and management plan for Agelopoulos indicated that she had spent six months in Kansas City supporting "Sprint ION solution on a Tiger team and additional on-site support of the Retrofit procedures above and beyond the normal CSCC functions" while still managing her team remotely and "managing CTC and Cisco." She picked up three products as part of cost-cutting efforts, and utilized her expertise within the group to support multiple products. She implemented cost-cutting, as well as implementing and sustaining a comprehensive training program for new and existing products. The review described Agelopoulos in the following terms:
Additionally, she
In ranking from one to ten over six performance categories, Agelopoulos ranked 8 (customer satisfaction), 9 (cross organizations), 8 (cost cutting), 9 (training), 9 (interaction with customer) and 8 (team management).
Among Agelopoulos's "pluses" were:
A performance appraisal for plaintiff, issued for the same period, although certainly favorable, illustrated the differences in technical skills and methods of responding to customers between the two women. Instead of providing substantial on-site support, plaintiff instituted semi-monthly, or, with one customer, daily conference calls with customers, and she "[e]stablished a single point of contact for customers — SBC, NYCT, Telmex, BellSouth, Verizon, Sprint, QWEST — to ensure their special concerns were handled efficiently." Performance ratings included one 9, one 8 and four 7s. Among her strengths, plaintiff was described as "a mature manager, seasoned professional and experienced supervisor of people" who could "diplomatically deal with personal conflicts and problems if and when they arise" and as a "quick study" who could "quickly grasp what is important." However, the review additionally stated that plaintiff "needs to develop more understanding of her customers' business needs."
In her deposition, Amin was asked questions regarding the qualifications of plaintiff and Agelopoulos. With respect to plaintiff, Amin testified:
Amin testified that plaintiff "didn't get involved hands-on in some of the crisis that her folks were managing for her."
In contrast, Amin testified that Agelopoulos actually understood
In general, plaintiff was relying on her staff to supply technical knowledge regarding the products, whereas Agelopoulos was solving "a lot of the technical problems herself" as were, according to Amin, "some of my other Directors." In terms of managing crises, Amin testified that plaintiff was capable of pulling together a technical team to do the job. In contrast, Agelopoulos often managed the crisis herself. "That was part of the reason at the request of the product Executive Directors she was sent to the customer site which was not that normal for the CSC Directors to do." According to Amin, directors like Agelopoulos who had technical experience and knowledge of the customers had "an edge" over those who did not.
However, Amin testified that her decision-making process was not premised on a direct comparison between the two women. She said:
Plaintiff has offered substantial evidence of her general experience and competence. However, she has not offered any specific evidence that would suggest that, in connection with Telcordia's future operations, her qualifications exceeded those of Agelopoulos or any of the other directors that Amin determined to retain.
Nor is pretext established by the fact that, in her 2003 performance review, Agelopoulos received lower performance ratings than either she or plaintiff did in the previous year. Amin's decision was based on her evaluation of skills and performance in 2001 to 2002, not 2003. As a consequence, we find that no cognizable factual issue exists with respect to whether, in light of Telcordia's criteria, plaintiff's qualifications were superior to the directors who were retained in their positions, including Angelopoulos.
Plaintiff claims additionally that Agelopoulos should not have been interviewed by Amin because she was no longer reporting to her, and that Amin manipulated the interview process when she interviewed Agelopoulos, but not others outside Amin's group. In support of this contention, plaintiff relies on a certification by Guidon Sorbo that he was denied an interview by Amin because he was not in her group, and that he believed that Agelopoulos, like him, was not in Amin's group but was nonetheless offered an interview.
The record reflects that, for a short period, Agelopoulos reported to Sheila Ruegger, while retaining the same title and job duties. However, Agelopoulos had returned to Amin's group by the September 2002 meeting at which the need for further lay-offs was announced. Even plaintiff concedes that "she thought" Agelopoulos had returned by October of that year. Thus, we decline to credit Sorbo's statement to the contrary, for which no evidential foundation can be discerned.
Plaintiff also claims that the fact that Agelopoulos replaced plaintiff cannot be reasonably disputed, and that Telcordia's attempt to obfuscate this point demonstrates the bad faith of its lay-off decision in plaintiff's case. In that regard, the record contains undisputed testimony that the five remaining directors met with Amin and decided as a group how the work would be distributed. The group assigned plaintiff's products — NMA, ELCOM, INTAS, and Surveillance Manager — to Galiardi. However, the record also reflects that the group's tentative product assignment was not approved, and that Amin's superiors, Zimlinghaus and Smerling, reassigned those products to Agelopoulos. Thus, Galiardi never had actual responsibility for them. Telcordia justifies the reassignment on the basis of
Zimlinghaus's familiarity with the work of Agelopoulos and his confidence in her. There is no evidence to the contrary.
Further, we deem the fact that plaintiff's products came under Agelopoulos's supervision to be immaterial to plaintiff's claim, since, as we have previously demonstrated, there is no issue of fact that, under the criteria adopted in furtherance of Telcordia's force reduction, substantial reasons existed for Agelopoulos's retention and the lay-off of plaintiff.
We find plaintiff's claim that there was insufficient evidence presented of the precipitous decline in Telcordia's business to warrant her lay-off to lack sufficient merit to warrant discussion in a written opinion. R. 2:11-3(e)(1)(A) and (E).
As a consequence of the foregoing analysis, we find that the motion judge correctly ruled that plaintiff demonstrated no issue of material fact and no substantial evidence of pretext with respect to the issues that we have discussed in parts IIB through E of this opinion. In that regard, we conclude that judgment was properly granted dismissing plaintiff's claim as failing to rebut evidence that Telcordia had a legitimate business basis for dramatically reducing its work force and that it implemented that process, including the lay-off of plaintiff, in a legal manner. We remand for further consideration of the admissibility of the evidence presented by means of the Sperman certification.
As a final argument, plaintiff contends "as a matter of first impression" that the NJLAD provides a distinct affirmative defense to a claim of age discrimination that Telcordia did not satisfy. In making this argument, plaintiff focuses on the emphasized portions of
It is plaintiff's position that this statutory provision requires Telcordia to establish, as an affirmative defense, that "lawful considerations other than age" motivated its force reduction decision in plaintiff's case. Plaintiff analogizes the underscored language to the ADEA's provision that "it shall not be unlawful for an employer" to take action otherwise prohibited by the ADEA when the action "is based on reasonable factors other than age." 29
We disagree, accepting instead Telcordia's view that the emphasized language in the NJLAD qualifies the conditions under which forced retirements can occur. In support of that position, Telcordia notes that in 1998, the Legislature amended the NJLAD to prohibit forced retirements on the basis of age. When doing so, the Legislature amended
In summary, we find that plaintiff's cause is hanging by the slender thread offered by the evidence contained in the Sperman certification. If that evidence is found, on remand, to be inadmissible, summary judgment will have been properly granted. Otherwise, plaintiff has set forth sufficient evidence to reach a jury, either under a
Affirmed in part; remanded in part. Jurisdiction is not retained.