Meinecke v. H & R Block of Houston

• Decision Date: 05 October 1995
• Docket Number: No. 95-20273,95-20273
• Citation: 66 F.3d 77
• Parties: Jeannene MEINECKE, Plaintiff-Appellant, v. H & R BLOCK OF HOUSTON, A General Partnership, and Administaff, Inc., Defendants-Appellees. Summary Calendar.
• Court: U.S. Court of Appeals — Fifth Circuit

Page 77

66 F.3d 77

32 Fed.R.Serv.3d 1453

Jeannene MEINECKE, Plaintiff-Appellant, v. H & R BLOCK OF HOUSTON, A General Partnership, and Administaff, Inc., Defendants-Appellees.

No. 95-20273

Summary Calendar.

United States Court of Appeals Fifth Circuit.

Oct. 5, 1995.

Rehearing Denied Nov. 9, 1995.

Patrick M. Flynn, Houston, TX, for plaintiff-appellant.

John Howard Spurgin, II, Olive Penelope Hobbs, McGinnis, Lochridge & Kilgore, Austin, TX, for defendants-appellees.

Appeal from the United States District Court for the Southern District of Texas.

Before KING, SMITH and BENAVIDES, Circuit Judges.

PER CURIAM:

Plaintiff-Appellant Jeannene Meinecke ("Meinecke") brought this action against her former employers H & R Block of Houston ("H & R Block") and Administaff, Inc. ("Administaff"), alleging that they had discriminated against her on the basis of her age and sex and that they had breached contracts to employ her and to pay her a retirement bonus. The district court entered summary judgment for H & R Block and Administaff on all claims, and Meinecke appeals. We affirm in part and reverse in part the judgment of the district court.

I. FACTUAL AND PROCEDURAL BACKGROUND

H & R Block hired Meinecke in 1980. At that time, H & R Block was owned by Ilah Merriman and her two children's trusts as general partners. Ilah Merriman also had the title of Managing Partner and actively managed the business. Meinecke advanced through various positions in the company, eventually being promoted to General Manager of the Houston region in 1989. In that same year, H & R Block entered into a staff leasing agreement with Administaff, whereby Administaff hired some H & R Block employees and assigned them to H & R Block. Administaff hired Meinecke and assigned her to H & R Block as its General Manager. As a result, Meinecke effectively became a joint employee of Administaff and H & R Block. ¹

During the spring and summer of 1993, Ilah Merriman negotiated an agreement to sell her interest in H & R Block to her son Michael's trust. Under this agreement, Michael Merriman would become the President and Managing Partner of H & R Block. On or about March 31, 1993, Ilah Merriman informed Meinecke that after the sale of the business, Meinecke's services would no longer be needed and that Ilah Merriman and Meinecke would retire at the same time. When Meinecke made further inquiries about this arrangement, Ilah Merriman allegedly responded that there was "no way" Meinecke could stay, and that Michael Merriman "wanted a male in the position that was closer to his age that he could relate to and communicate with." Meinecke was fifty-six years old at the time. On April 16, 1993, Ilah Merriman notified the employees of H & R Block and Administaff that she and Meinecke would retire on May 1, 1994, and that Michael Merriman would become President and Managing Partner.

During the summer of 1993, the sale of the business proceeded more quickly than had been anticipated, and on August 25, 1993 Meinecke was informed that she would retire on September 1. Between August and October 1993, H & R Block closed the Houston headquarters office where Meinecke was employed and terminated all Administaff and H & R Block employees who worked in that office, including Meinecke. Of the eight employees who were discharged, one was male and six were younger than Meinecke. At the same time, H & R Block executed a management agreement with H & R Block of South Texas, Inc. ("HRB/STI"), whereby HRB/STI would assist H & R Block in carrying out the management and administrative functions formerly performed by the Houston headquarters office. Pursuant to this agreement, Ken Treat, Jr., who was a vice-president of HRB/STI and thirty-six years old at the time, performed some portion of Meinecke's duties.

On January 5, 1994, Meinecke filed this action against H & R Block and Administaff, alleging that she had been discriminated against on the basis of her sex and age in violation of Title VII of the Civil Rights Act of 1964 ("Title VII"), 42 U.S.C. Sec. 2000e-2(a)(1), and the Age Discrimination in Employment Act of 1967 ("ADEA"), 29 U.S.C. Sec. 623(a)(1). She also alleged that H & R Block and Administaff had breached contracts to employ her and to pay her a severance package. On November 15, 1994, H & R Block and Administaff filed a joint motion for summary judgment.

On March 13, 1994, the parties filed a stipulation that all claims against Administaff and the breach of contract claims against H & R Block would be dismissed. The district court entered an order approving the dismissal on March 16. On the same day, however, the district court also entered an order granting summary judgment to Administaff and H & R Block on all claims, including those that the parties had stipulated would be dismissed. Meinecke now appeals the district court's order of summary judgment.

II. DISCUSSION

A. Standard of Review

We review the granting of summary judgment de novo, applying the same criteria used by the district court in the first instance. Norman v. Apache Corp., 19 F.3d 1017, 1021 (5th Cir.1994); Conkling v. Turner, 18 F.3d 1285, 1295 (5th Cir.1994). First, we consult the applicable law to ascertain the material factual issues. King v. Chide, 974 F.2d 653, 655-56 (5th Cir.1992). We then review the evidence bearing on those issues, viewing the facts and inferences to be drawn therefrom in the light most favorable to the nonmoving party. Lemelle v. Universal Mfg. Corp., 18 F.3d 1268, 1272 (5th Cir.1994); FDIC v. Dawson, 4 F.3d 1303, 1306 (5th Cir.1993), cert. denied, --- U.S. ----, 114 S.Ct. 2673, 129 L.Ed.2d 809 (1994). Summary judgment is proper "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c).

Under Rule 56(c), the party moving for summary judgment bears the initial burden of informing the district court of the basis for its motion and identifying the portions of the record that it believes demonstrate the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986); Norman, 19 F.3d at 1023. If the moving party meets its burden, the burden shifts to the non-moving party to establish the existence of a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 585-87, 106 S.Ct. 1348, 1355-56, 89 L.Ed.2d 538 (1986); Norman, 19 F.3d at 1023. The burden on the non-moving party is to do more than simply show that there is some metaphysical doubt as to the material facts. Matsushita, 475 U.S. at 586, 106 S.Ct. at 1355-56.

B. Claims Against Administaff and Contract Claims Against H & R Block

We first address the district court's grant of summary judgment on Meinecke's claims against Administaff and her contract claims against H & R Block. Meinecke contends that summary judgment on these claims was inappropriate because all parties had filed a stipulation that these claims would be dismissed and because the court entered an order approving the dismissal on the same day it entered the order granting summary judgment. H & R Block and Administaff counter that this court does not have jurisdiction to review the summary judgment on these claims because the dismissal rendered the issues moot. ²

We begin our analysis, as we must, with the question of mootness. The parties' stipulation to the dismissal of these claims and the district court's order granting summary judgment on the same claims are contradictory and irreconcilable. Only one of these actions can be valid. H & R Block and Administaff, however, would like to give effect to both. In particular, they would like to use the action that is less favorable to them, the dismissal, to deny this court jurisdiction to review the action that is more favorable, the summary judgment, thereby insulating it from reversal. ³ The logical fallacy in the appellees' mootness argument is that it presupposes the validity of the dismissal; however, where the issue before us is whether we should give effect to the dismissal or the contradictory order of summary judgment, we cannot make such a supposition. ⁴ The conflict between the dismissal and the summary judgment presents us with a live controversy. Furthermore, even if the dismissal rendered moot the claims in question, the conflicting order granting summary judgment on these claims effectively resurrected the controversy. Accordingly, we find the appellees' mootness argument to be without merit.

We now turn to the question of whether summary judgment on the claims against Administaff and the contract claims against H & R Block was appropriate in light of the stipulation of dismissal. Administaff and H & R Block point out in their brief that the parties voluntarily dismissed these claims by filing a stipulation for dismissal pursuant to Rule 41(a)(1)(ii) of the Federal Rules of Civil Procedure. According to this Rule, such stipulations take effect when filed and do not require an order of the court. Fed.R.Civ.P. 41(a)(1)(ii). Therefore, the district court's order approving the dismissal is of no consequence. This distinction should eliminate any confusion created by the fact that the district court entered the order approving the dismissal and the order granting summary judgment on the same day. The claims were dismissed when the parties filed the stipulation, which was three days before the court entered the order granting summary judgment. We have held that, when the parties file a stipulation of voluntary dismissal pursuant to Rule 41(a)(1)(ii), "any further actions by the court [are] superfluous." United States v. Kellogg (Matter of West Texas Mktg. Corp.), 12 F.3d 497, 501 (5th Cir.1994); see also Williams v. Ezell, 531 F.2d 1261, 1264 (5th Cir.1976). Thus,...