Federal Circuits, 6th Cir. (June 14, 1994)
Docket number: 93-5110
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Anita B. Hardeman (briefed), Harry F. Burnette (argued), Michael S. Pineda, Brown, Dobson, Burnette & Kesler, Chattanooga, TN, for plaintiff-appellee.
Sam C. Elliott (briefed), Gearhiser, Peters & Horton, Chattanooga, TN, Daniel S. Reinhardt (briefed), William N. Withrow (argued and briefed), Jana E. Hubbard (briefed), Troutman Sanders, Atlanta, GA, for defendant-appellant.Before: BOGGS and NORRIS, Circuit Judges; and BELL, District Judge.*BOGGS, Circuit Judge.This appeal stems from an action claiming wrongful termination, brought under the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S.C. Secs . 621-634, and the Tennessee Human Rights Act (THRA), Tenn.Code Ann. Secs. 4-21-101 to -806 (1991 & Supp.1993). A jury returned a verdict for the terminated employee of about $500,000, and the employer appeals. For the reasons set forth below, we affirm.* Aaron Cooley had worked for the same theater chain since 1953, working his way up from "popcorn man" to Chattanooga city manager, when the chain came under new management in 1982. The new owner, Carmike Cinemas ("Carmike"), was headed by Michael Patrick, the president, chief executive officer, and principal stockholder.1 Cooley continued in his job, supervising eighty-five employees, and handling everything from auditing ticket sales to advertising to maintenance. In his trial court testimony, Cooley spoke proudly of his 80-hour work week and of his devotion to his job. He testified that he had even changed his planned wedding date in 1956 to accommodate a prior board chairman's request that he relocate from Florida to Georgia by a certain date. As Carmike's Chattanooga city manager, Cooley answered to Lloyd Reddish, the district manager. Reddish's direct superior in 1988 was Buren ("Tiny") Eidson, the division manager.In December 1988, in the face of competition from other movie theaters in the Chattanooga area, Eidson ordered Cooley to run a full daily schedule of five shows, consisting of three matinees and two evening screenings, through the Christmas season. Cooley passed along the information to Reddish, his district manager. Eidson wanted the first matinee to be shown on Christmas Day, too, but Reddish, who had decided in previous years not to screen the early show on Christmas, indicated to Cooley that, despite the new directive, the Chattanooga district would continue to drop the early Christmas matinee, just as it had done in the past. Based on his immediate superior's decision, Cooley placed advertising in the local newspaper that omitted the early matinee from the Christmas Day schedule.On Wednesday, December 21, Reddish reversed himself and told Cooley that Carmike management was insistent that the fifth showing be screened on Christmas Day; therefore, the local theater would indeed have to run the full schedule. Cooley tried to reach his account representative at the newspaper in which he advertised to insert the extra showing time. He phoned a number of times. Unfortunately, the receptionist who answered his calls insisted that no one but Cooley's direct sales representative had the authority to change an advertisement that he had already placed, and that representative could not be reached. When Cooley explained the logistical problem to his district manager, Reddish decided to leave the advertisement as it was and to drop the first show, after all.The early matinee was not screened on Christmas Day. Eidson fired Cooley.At trial, Eidson testified that he investigated the entire incident, calling the newspaper and also talking to Cooley. As a result, he testified that he decided on January 2 to fire Cooley, and he hired the new city manager only after reaching that determination. However, Reddish testified at deposition2 that he had already been told on December 31 to fire Cooley, even though he responded that management was "firing the wrong person. I'm the person that you should be firing because I made the decision not to run the first show." Moreover, Melvin Cates testified that he was hired on December 31 to replace Cooley and that he arrived in Chattanooga on January 1, all before Cooley's January 2 dismissal.Carmike maintains that it fired Cooley primarily for three manifestations of "insubordination": (1) he failed to change the newspaper advertisement; (2) he did not screen the first Christmas show; and (3) he ran ads on AM radio despite clear instructions that he was to purchase FM radio time only. However, the jury believed Cooley's version of events, supported by testimony that he tried to change the display ad and that he merely followed Reddish's directions. Moreover, Cooley showed that he had complied with corporate policy and had purchased FM time exclusively; the FM station, for its own promotional reasons, "threw in" additional advertising on its AM station as part of a "package" that it offered all its advertisers.The jury believed Cooley's contention that Carmike's Christmas story was humbug and that he was really fired as part of a corporate effort to clear out older employees. In the course of proving his contention, Cooley testified that Patrick despised older people. For example, he related that Reddish, who had previously held the higher corporate position of vice president and general manager in Columbus, Georgia, had once told him of a strange conversation with Patrick that had taken place on a Thanksgiving Day. As Cooley remembered it, Reddish said to him:"[On] Thanksgiving [Patrick] made the statement, 'I got to go over to my mom's and dad's and have lunch today with them.... I don't want to go.' "[Reddish] said, "Well, Mike, why? This is Thanksgiving."And [Patrick's] words were, " 'Well, my grandmother is over there, and I just don't want to be--I don't like to be around old people.' "Cooley further testified that, back in 1968, when Patrick was eighteen-years-old, he had come out of the movie theater after seeing "Wild in the Streets"3 and said to Cooley, "Yeah, I believe that. Everybody over 30 years old needs to be put in a pen. Yeah, if they don't want to be put in a pen, they should be confined to a concentration camp."The jury, persuaded that Cooley was fired because of his age, found that Patrick and Carmike had violated the ADEA and awarded Cooley $116,363 in back pay, $249,741 in front pay, $85,000 for mental distress, plus interest and costs. The district judge later assessed Carmike an additional $65,837 in attorney's fees and costs. Carmike appeals from certain evidentiary rulings made by the district judge; from a portion of the jury instructions; and from the jury award, which it characterizes as "excessive."IIIn evaluating age-discrimination claims, this court applies the four-step "McDonnell Douglas Test." McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802, 93 S.Ct. 1817, 1824, 36 L.Ed.2d 668 (1973); Ang v. Procter & Gamble Co., 932 F.2d 540, 548 (6th Cir.1991); McDonald v. Union Camp Corp., 898 F.2d 1155, 1160 (6th Cir.1990). Under this test, to establish a prima facie case of age discrimination, the plaintiff bears the initial burden to prove by a preponderance of the evidence that: (1) he was at least 40 years of age at the time of the alleged discrimination ("a member of a protected class"); (2) he was subjected to adverse employment action; (3) he was qualified for the position; and (4) he was replaced by a younger person. Lilley v. BTM Corp., 958 F.2d 746, 752 (6th Cir.), cert. denied, --- U.S. ----, 113 S.Ct. 376, 121 L.Ed.2d 287 (1992).Once the plaintiff proves his prima facie case, the burden shifts to the employer to "articulate some legitimate non-discriminatory reason for the employee's discharge." The employer need not persuade the court that it was actually motivated by the proffered reasons. West v. Wright Constr. Co., 756 F.2d 31, 33 (6th Cir.1985). It is sufficient if the employer raises a genuine issue of fact as to whether or not it discriminated. The explanation must be legally sufficient to justify a judgment for the defendant. Ibid. "Where two or more alternative and independent legitimate, nondiscriminatory reasons are articulated by the defendant employer, the falsity or incorrectness of one may not impeach the credibility of the remaining articulated reason(s)." Sims v. Cleland, 813 F.2d 790, 793 (6th Cir.1987). If the employer meets the burden of articulation, then the burden shifts back to the plaintiff to prove by a preponderance of the evidence that the reason proffered by the employer was not its true reason but merely a pretext for discrimination. Ang, 932 F.2d at 548.A plaintiff can prove pretext "by showing that the Company's reasons have no basis in fact, or if they have a basis in fact, by showing that they were not really factors motivating the discharge, or, if they were factors, by showing that they were jointly insufficient to motivate the discharge." Ridenour v. Lawson Co., 791 F.2d 52, 56 (6th Cir.1986) (quoting La Montagne v. American Convenience Prods., Inc., 750 F.2d 1405, 1414-15 (7th Cir.1984)). "The trier of fact may rely on the evidence introduced to establish the prima facie case and any inferences properly drawn therefrom." Ibid.In this case, Carmike claims that it more than met its burden of articulation, presenting at least three legitimate non-discriminatory reasons for Cooley's discharge. Although the jury found those reasons to be pretextual, Carmike contends that the weight of the admissible evidence did not support the jury's finding that the company had discriminated. Rather, Carmike maintains, the court abused its discretion under Federal Rule of Evidence 403 and committed reversible error by allowing the jury to hear highly inflammatory testimony about Patrick's concentration-camp remark during his teens and about his later comments concerning spending Thanksgiving with his grandmother ("the grandmother comment"). The defendants argue that those statements prejudiced the jury, resulting in an irrational verdict. In addition, Carmike appeals from the court's decision to admit statements that it believes were inadmissible under the hearsay rules. Fed.R.Evid. 801 et seq.After the jury verdict, Carmike moved the district court for a new trial. The district judge, reflecting on his admission of the challenged testimony, wrote in his memorandum denying the motion:If the Court had it to do over again, it would have ruled out, on Fed.R.Evid. 403 grounds, the "concentration camp" statement allegedly made by Mr. Patrick when he was a young man. However, in view of evidence of other statements made by Mr. Patrick ... this ruling had no bearing on the outcome of the case and, if error, it is harmless error.Carmike responds that the quotation was too inflammatory to be "harmless."We review the district court's evidentiary decisions for abuse of discretion, and we will reverse only when we find that such abuse of discretion has caused more than harmless error. United States v. Markarian, 967 F.2d 1098, 1103 (6th Cir.1992), cert. denied, --- U.S. ----, 113 S.Ct. 1344, 122 L.Ed.2d 726 (1993); Fed.R.Civ.P. 61.Although relevant, evidence may be excluded if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury....Fed.R.Evid. 403. "Situations in this area call for balancing the probative value of and need for the evidence against the harm likely to result from its admission." Ibid. advisory committee's note. In age discrimination cases, this court has examined statements allegedly showing employer bias by considering whether the comments were made by a decision maker or by an agent within the scope of his employment; whether they were related to the decision-making process; whether they were more than merely vague, ambiguous, or isolated remarks; and whether they were proximate in time to the act of termination. However, this court has not previously expressly spelled out these considerations as a formal standard. We do so today.Recently, in Phelps v. Yale Security, Inc., 986 F.2d 1020 (6th Cir.), cert. denied, --- U.S. ----, 114 S.Ct. 175, 126 L.Ed.2d 135 (1993), the plaintiff employee produced evidence that, eight months before her layoff, her employer had told her that she had been transferred from a more responsible position because she was too old to continue at that prior secretarial position. A month later that same employer told her that her fifty-fifth birthday was a cause for concern. Nevertheless, this court upheld a district judge's judgment for the defendant employer, notwithstanding the jury verdict for plaintiff, because the plaintiff's evidence consisted only of such isolated and ambiguous comments by the employer. We held them to be "too abstract, in addition to being irrelevant and prejudicial, to support a finding of age discrimination" because the comments had been made nearly a year before the layoff, too long before the layoff to have influenced the termination decision. In addition, we regarded the comment about the birthday to be too ambiguous to establish any conclusive inferences. Id. at 1025-26.In Mitroff v. Xomox Corp., 797 F.2d 271 (6th Cir.1986), the plaintiff and another witness testified that one of the employer's assistant personnel managers had told them that the company practiced age discrimination. This court held that the district court had abused its discretion by admitting such hearsay testimony. Even if the assistant personnel manager himself had been proffered as a witness to testify first-hand, this court held that he could not have qualified as an expert eligible to present his opinions to the jury under Rules 701-705. He was merely an assistant personnel manager who dealt with hourly employees, not someone with the expertise to evaluate whether the company's salaried personnel faced age discrimination. Because the fact pattern in Mitroff was very close, and the hearsay testimony was the strongest evidence presented by the plaintiff, this court remanded for a new trial. Id. at 277.In Gagne v. Northwestern National Insurance Co., 881 F.2d 309 (6th Cir.1989), this court affirmed summary judgment for the defendant employer in a case where the plaintiff had based her claim of age discrimination on one isolated comment by her boss that he "needed younger blood" and on affidavits from three co-workers, all of whom were based in different departments and work areas from where the plaintiff worked, that she performed her assignments satisfactorily. Id. at 315-16.On the other hand, in Rose v. National Cash Register Corp., 703 F.2d 225 (6th Cir.), cert. denied,Try vLex for FREE for 3 days
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