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Summary: IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT No. 95-60006 Summary Calendar CHARLES D. KELLY; THOMAS C. BABB Plaintiffs-Appellees, MARSHALL DURBIN FARMS, INC. versus Defendant-Appellant. Appeal from the United States District Court For the Southern District of Mississippi (93-CV-45) March 1, 1996 Before HIGGINBOTHAM, DUHÉ, and EMILIO M. GARZA, Circuit Judges. PER CURIAM:* Charles Kelly and Thomas Babb claimed that their employer, Marshall Durbin, Inc., terminated them because of th
Summary: IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT No. 95-60006 Summary Calendar CHARLES D. KELLY; THOMAS C. BABB Plaintiffs-Appellees, MARSHALL DURBIN FARMS, INC. versus Defendant-Appellant. Appeal from the United States District Court For the Southern District of Mississippi (93-CV-45) March 1, 1996 Before HIGGINBOTHAM, DUHÉ, and EMILIO M. GARZA, Circuit Judges. PER CURIAM:* Charles Kelly and Thomas Babb claimed that their employer, Marshall Durbin, Inc., terminated them because of the..
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IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
No. 95-60006
Summary Calendar
CHARLES D. KELLY; THOMAS C. BABB
Plaintiffs-Appellees,
MARSHALL DURBIN FARMS, INC.
versus
Defendant-Appellant.
Appeal from the United States District Court
For the Southern District of Mississippi
(93-CV-45)
March 1, 1996
Before HIGGINBOTHAM, DUHÉ, and EMILIO M. GARZA, Circuit Judges.
PER CURIAM:*
Charles Kelly and Thomas Babb claimed that their employer,
Marshall Durbin, Inc., terminated them because of their age in
violation of the Age Discrimination in Employment Act. After a
three-and-one-half day trial, a jury agreed, but found that no
willful violation of the ADEA occurred. The sole issue on this
appeal by Marshall Durbin is whether the evidence was sufficient to
*
Pursuant to Local Rule 47.5, the court has determined
that this opinion should not be published and is not precedent
except under the limited circumstances set forth in Local Rule
47.5.4.
support the jury's verdict. Having reviewed the entirety of the
trial testimony in this case, we find that the evidence was
sufficient as to both Mr. Kelly and Mr. Babb. We therefore affirm.
We have recently outlined the approach proper approach to a
challenge to the sufficiency of the evidence to support a
plaintiff's verdict in an employment discrimination suit. Under
Rhodes v. Guiberson Oil Tools, No. 95-60006, “a plaintiff can avoid
summary judgment and judgment as a matter of law if the evidence
taken as a whole (1) creates a fact issue as to whether each of the
employer’s stated reasons was what actually motivated the employer
and (2) creates a reasonable inference that age was a determinative
factor in the actions of which plaintiff complains.” In addition,
and of special significance to this case, Rhodes teaches that “[a]
jury may be able to infer discriminatory intent in an appropriate
case from substantial evidence that the employer’s reasons are
false. The evidence may, for example, strongly indicate that the
employer has introduced fabricated justifications for an employee’s
discharge, and not otherwise suggest a credible nondiscriminatory
explanation.”
Because of the complicated nature of the facts surrounding the
discharges and the nature of the industry in which the plaintiffs
labored, we provide only a brief summary of the background facts in
this case, and discuss further relevant facts in the context of our
legal analysis.
I
2
Marshall Durbin is a manufacturer of poultry products. The
business proceeded in part via an independent contractor
relationship between Marshall Durbin and growers working on farms.
Marshall Durbin in essence sold baby chicks, feed, vaccine, and
other necessities to growers. The growers raised the chicks to a
certain level of maturity. Throughout this time, "servicemen" paid
by Marshall Durbin visited the farms frequently to assure that all
was well with the chickens. Once the chickens reached a certain
age, Marshall Durbin bought them back; it hired "catching crews,"
working under "live haul supervisors," to catch hundreds of
chickens per night and haul them in trucks to plants for processing
and eventual slaughter.
At the time of his termination, Mr. Kelly was a "broiler
serviceman." A broiler is a certain type of chicken. At the time
of his termination, Mr. Babb was a live haul supervisor.
II
We emphasize at the outset that when the jury hears
conflicting versions of events via oral testimony, its finding as
to credibility, made in this case in the form of a plaintiff's
verdict, is final. We pause to note this point because, despite
the fact that we articulate it with a certain regularity, we
receive with equal regularity appellants’ briefs illustrating an
inability to grasp its importance.
As is often the case in employment discrimination cases, the
plaintiffs were able to provide little in the way of direct
evidence of prohibited intent. The direct evidence that did exist
3
in this case came in the form of a comment by Mr. Charles McGee,
head broiler serviceman and Mr. Kelly's immediate supervisor.
McGee commented to another employee shortly after Mr. Kelly's
termination that "older employees were less efficient that the
younger men were." McGee had some role in Mr. Kelly's termination,
although McGee's immediate superior made the ultimate decision.
The focus of this case, then, was on the plaintiff's attempt
to prove pretext. We hold that the evidence in this case allowed
the jury to conclude that the reasons Marshall Durbin asserted for
the challenged discharges were pretexts for discrimination.
A. Mr. Kelly
The evidence with regard to Mr. Kelly's case allowed the
jury to infer only one legitimate, nondiscriminatory reason for Mr.
Kelly's discharge, namely, that a measure of performance called
“formula costs” showed that Mr. Kelly was an ineffective employee.1
Marshall Durbin's evidence tended to show that the cost per pound
of chicken of Mr. Kelly's growers, the “formula cost,” was among
the highest in Marshall Durbin's business. Marshall Durbin
calculated formula costs with statistical analyses of data tracking
the amount of chicken produced by each grower against the costs
associated with that grower's operations. To place the formula
costs data in context, Marshall Durbin introduced unrebutted
evidence that the regional operation at which both plaintiffs
worked was losing money, that Marshall Durbin had brought in new
1
Mr. Kelly proved a prima facie case. He was fired at age
59. His replacement was 26 years old.
4
upper level management in attempt to change the operation into a
profitable one, and that this new management fired Mr. Kelly on the
stated grounds of "poor performance" after giving him a single
warning three weeks prior to his discharge that his performance had
to improve in days, not weeks.
The jury could deem Marshall Durbin's formula costs rationale
a pretext for discrimination for several reasons. First, the jury
could find that formula costs were not an accurate measurement of
broiler serviceman's job performance. Mr. Kelly's prior
supervisor, Mr. Mullen, testified that different ingredients beyond
the control of a serviceman determined the formula costs. These
factors included grower pay (which depended on the nature of the
contract between an Employer and a grower), the age of a grower's
physical plant, and the type of equipment it used (especially the
machinery used to control temperature). This testimony dovetailed
with that of Mr. Kelly, who told the jury that many of his growers
used less advanced equipment than that used by other growers. We
note that allowing the jury to consider this evidence does not
constitute judicial punishment for an irrational business decision.
While an employer does not violate the ADEA by irrationally firing
a productive worker, evidence establishing the irrationality of an
employer’s business decision may rebut an employer’s business
defense.
Second, the jury could find that Marshall Durbin itself did
not measure the performance of broiler servicemen according to
formula costs, at least not prior to the litigation. Mr. Mullen
5
testified that on numerous occasions the owner of Marshall Durbin
told him not "to worry about [formula costs]" because "[t]hat is my
problem. You just worry about doing a good job. Don't be
concerned about that." Moreover, Mr. Kelly stated that, prior to
his termination, his supervisors never discussed formula costs with
him or informed him of their supposed importance. Even during the
single warning occurring three weeks before Mr. Kelly's
termination, Mr. Kelly's supervisor did not mention formula costs,
and in fact gave him no indication at all as to the nature of his
deficient performance.
Third, to the extent that formula costs were designed to be
indicators of aspects of a grower's production that were in Mr.
Kelly's control, testimony at trial showed that Mr. Kelly was a
solid performer. Testimony at the trial, primarily from Mr. Kelly,
contradicted Marshall Durbin's witnesses that dead birds, wet
spots, and poor health practices abounded on Mr. Kelly's farms.
Mr. Kelly testified on the basis of over twenty years experience in
the poultry business, including many in which operations ran at a
profit, that some of these difficulties simply did not exist, those
that did were nothing unusual, and that he reported the existing
problems to his supervisor in writing. Moreover, Mr. Mullen, Mr.
Kelly's prior supervisor, described Mr. Kelly as an astonishingly
dedicated performer willing to do any task at all, including those
that could not possibly have been in his job description, in order
to make the overall operation succeed. Mr. Kelly worked hours long
enough to cause his wife to complain; he roused himself at odd
6
hours of the morning in order to repair broken down trucks; and he
got the vote out on a bond issue important to Marshall Durbin's
operation. In his twenty years of employment in the poultry
business, he rarely if ever took a vacation.
The above evidence tended to rebut Marshall Durbin's formula
costs rationale for Kelly's termination. But Kelly provided
additional evidence supporting the jury's conclusion that something
was amiss. The jury heard of the remark of Mr. Kelly's supervisor
discussed above, as well as the flattering evaluation of Mr.
Kelly's prior supervisor. Chief among the additional evidence,
however, was testimony allowing the jury to conclude that Marshall
Durbin falsified documents in an attempt to build a fake record of
Mr. Kelly's poor performance. The clerical employee in charge of
filing employment evaluations testified that several hand-written
writings critical of Mr. Kelly found in his personnel file at the
time of litigation were not present at the time of his termination,
that she knew nothing of the existence of these writings at the
time, and that she would have known had they in fact existed then.2
2
Marshall Durbin asks us to disregard this evidence
because, it alleges, the plaintiff made no argument to the jury
regarding falsification of documents. St. Mary's Honor Center v.
Hicks,
113 S. Ct. 2742 (1993), forecloses this argument. The
lesson of Hicks was that a finder of fact may conclude that a
nondiscriminatory reason other than that given at the time of the
challenged employment decision or during argument to the jury in
fact motivated an employer. In other words, a jury may conclude
whatever the evidence allows it to conclude, in spite of the
arguments of counsel. We believe that the Hicks court did not
intend to limit the application of this principle to cases in
which it would benefit employment discrimination defendants.
We note also that defense counsel's statements to the trial
judge at sidebar illustrated that he understood at the time what
the clerical worker's testimony tended to prove.
7
Moreover, Mr. Kelly's former supervisor testified that Mr. Kelly's
record should have contained several positive evaluations of his
performance written during the several years he served Marshall
Durbin as a broiler serviceman. Some of these records were missing
from Marshall Durbin's files. Such evidence, if credited, allowed
the jury to disregard Marshall Durbin's records. But it also
provided evidence of Marshal Durbin’s "mendacity" and allowed an
inference that the defendant’s falsification was designed to
conceal prohibited intent.
Under such circumstances, we believe that a jury could infer
that Marshall Durbin's formula costs rationale was a pretext for
discrimination on the basis of Mr. Kelly's age.
B. Mr. Thomas Babb
Regarding the portion of the case relating to Mr. Babb, the
evidence required the jury to decide two disputed issues of fact:
first, whether Mr. Babb quit or was discharged; and second, whether
Marshall Durbin fired Mr. Babb because of a reduction in force. To
the extent that Mr. Babb’s discharge took place as a result of a
reduction in force, Marshall Durbin sought to justify the choice to
terminate Mr. Babb, as opposed to either of two other live haul
supervisors, on the grounds that Mr. Babb could not complete the
required paperwork and that his crew-members lived the farthest
away from the complex.
Regarding the first issue, the evidence was sufficient to
allow the jury to conclude that Marshall Durbin fired Mr. Babb.
The relevant discussion between Mr. Babb ended with Mr. Babb
8
stating, “James, don’t lie to me. If you are firing me, tell me
I’m fired,” and the supervisor responding, “That’s the way it is.”
Moreover, Mr. Babb’s wife, upon a return to Marshall Durbin’s
office some three weeks after this conversation, asked the
supervisor why Mr. Babb had been fired. The supervisor responded
that he could not tell her the reason, not that he had never
discharged Mr. Babb. No other conversations regarding Mr. Babb’s
continued employment took place. Under such circumstances, the
jury could conclude that Marshall Durbin fired Mr. Babb.
The resolution of the second issue, whether Mr. Babb was fired
as a result of a reduction in force, is more complicated and in
some part dependant on our conclusion that Mr. Babb was in fact
fired. In order to aid in our understanding of the conflicting
testimony in this case, we summarize the relevant testimony in some
detail.
The jury heard Marshall Durbin’s version of the events
surrounding Mr. Babb’s termination primarily via the testimony of
James McNally, who at the relevant time supervised Marshall
Durbin’s live haul supervisors. According to McNally, Marshall
Durbin lost a buyer shortly before Mr. Babb and Marshall Durbin
parted ways. At that time, Marshall Durbin operated three catching
crews, one supervised by McNally himself, one by Babb, and one by
a Mr. Sherrill Moore. Because of this loss, and as part of a more
general and ongoing effort to make the business more efficient,
Marshall Durbin restructured its operations. Under the new
structure, one supervisor would oversee all catching crews; McNally
9
himself supervised during the day, and Moore took the night shift.
The restructuring also reduced the number of catching crews from
three to two. But, according to McNally and the other Marshall
Durbin witnesses, no one was fired during this restructuring. The
crew members that had operated under Mr. Babb’s now dissolved crew
remained on the crew list,3 and McNally also offered Mr. Babb other
jobs, including one as a dispatcher. Mr. Babb took a dim view of
this offer and stormed out of the office.
Mr. Babb, however, testified that he received no offer of a
different position from McNally. Rather, McNally fired him with
little or no warning after the short conversation described above.
We must, of course, accept Mr. Babb’s testimony that McNally
never offered him a second job and that the termination was in fact
rather abrupt. The more difficult question is whether the jury
could also disregard the rest of McNally’s testimony regarding the
reorganization of the supervisor positions. In essence, Marshall
Durbin asks us to find that no rational jury could refuse to
believe an argument that was not its first defense at trial,
namely, that a RIF, not a reorganization, took place. Under this
story, Marshall Durbin’s reorganization resulted in the elimination
of one live haul supervisor position, and as a result, Marshall
Durbin fired Mr. Babb. By casting this suit as a RIF case,
3
Although no testimony at trial addressed directly the
nature of the relationship between Marshall Durbin and the
catching crews, it appears that Marshall Durbin kept a list of
potential catching crew members, called them when there was
catching to be done, and paid them according to how often they
worked.
10
Marshall Durbin seeks to take advantage cases it claims require a
plaintiff discharged as a result of a RIF to prove that she was
clearly better qualified than those employees that remained. See,
e.g., Bodenheimer v. PPG Industries, Inc.,
5 F.3d 955 (5th Cir.
1993); Walther v. Lone Star Gas Co.,
952 F.2d 119 (5th Cir. 1993).
The lynchpin of this argument is Marshall Durbin’s
interpretation of Bodenheimer and Walther. We find Marshall
Durbin’s reading of these case rather creative. Nothing in these
cases requires every employment discrimination plaintiff terminated
as a result of a RIF to prove that she was clearly better qualified
than younger employees not fired in the RIF. Walther upheld a jury
verdict for an ADEA plaintiff on the grounds that evidence of his
superior qualifications, together the employer’s concessions that
it did not release less qualified and more youthful employees
previously occupying comparable positions, rebutted the employer’s
RIF defense. Our observation that “the issue is not whether [the
plaintiff] or the retained employees were better
qualified,” 952
F.2d at 123, merely pointed out that an employer firing an ADEA
plaintiff because of an erroneous belief that the plaintiff’s
qualifications were inferior has made a bad business decision, not
violated the ADEA. Similarly, in Bodenheimer, we held only that
the plaintiff’s failure to present any evidence comparing his own
qualifications to that of a retained employee allowed the district
court to enter summary judgment for the defendant in the specific
context of that case. Nothing in that case established the
inflexible rule that Marshall Durbin espouses in this appeal.
11
Most importantly, however, after our decision in Rhodes, we
must maintain our focus only upon the ultimate issue: whether the
evidence was sufficient to allow the jury to find that Marshall
Durbin discharged Mr. Babb because of his age. In such a context,
continuing to think in terms of the McDonnell Douglas-Burdine
minuet after the defendant has danced the second step clouds,
rather than clarifies, the analysis.
With these principles firmly in mind, we find that the
evidence was sufficient to allow the jury to infer that age
motivated Mr. Babb’s discharge. Viewing the case in the light most
favorable to Mr. Babb, the evidence confronting the jury was as
follows.
First, Marshall Durbin retained Sherrill Moore, who was 39,
and fired Mr. Babb, who was in his late fifties, in spite of the
fact that Marshall Durbin’s witnesses testified that no RIF
occurred.
Second, Marshall Durbin’s stated reasons for this decision
were suspiciously attenuated. Its first justification was a single
comment, a stray remark that was never documented,4 that Mr. Babb
supposedly made to his superior to the effect that Mr. Babb could
not complete new paperwork requirements. In contrast, both Mr.
Babb and his prior superior testified that Mr. Babb had no
difficulties with paperwork at all. In addition, no one disputed
4
We note that many of the reasons Marshall Durbin provides
to minimize the importance of the McGee stray remark on the
inefficiency of older workers, which we have largely accepted in
this opinion, apply equally to Mr. Babb’s alleged remark.
12
that Mr. Babb’s written evaluations, while identifying other
weaknesses in his work skills, never criticized his paperwork, and
no one testified that Mr. Babb received oral criticism of his
paperwork skills. Marshall Durbin’s second justification was that
Mr. Babb’s catching crews were located at a greater distance from
the complex. But this justification conflicted with the way
catching crews operated. Testimony from several witnesses
established that catching crew members worked for whatever
supervisor happened to be available at the time, and that turnover
and exchange among groups was rapid. To classify certain catching
crew members as belong to Mr. Babb was misleading.
Third, in articulating its justifications for terminating Mr.
Babb, Marshall Durbin ignored factors that most rational business
entities would consider, such as Mr. Babb’s lengthy experience in
several aspects of the poultry business and his equally lengthy
term of service to Marshall Durbin and its predecessor company.
Again, allowing the jury to consider this evidence does not
constitute judicial punishment for an irrational business decision.
It merely suggests that Marshall Durbin’s stated justifications
were so thin as to give rise to an inference that post hoc coverup
was in place.
Fourth, further evidence allowed the jury to infer that a
coverup had taken place at the time of Mr. Babb’s termination.
When Mr. Babb returned to Marshall Durbin shortly after his
discharge and asked for his personnel file, the documents he was
given were decidedly incomplete. When Mr. Babb’s wife asked the
13
supervisor why the termination had taken place, the supervisor said
that he could not tell her. In short, the jury could conclude from
this evidence that Marshall Durbin was hiding something, and the
remainder of the evidence allowed the jury to find that the
“something” was age discrimination. Under such circumstances, we
hold that a rational jury could find that Marshall Durbin’s RIF
defense, a defense its own witnesses undermined by stating that no
RIF ever occurred, was a pretext for age discrimination. For these
reasons, we AFFIRM.
Regarding the request of attorneys for appellees for fees in
defending the judgment below on appeal, we REMAND to the district
court for factual findings and conclusions of law on this issue.
AFFIRMED on merits, attorneys fees issue REMANDED.
14