Archambault v. United Computing Systems, Inc.

Decision Date21 April 1986
Docket NumberNo. 85-3066,85-3066
Citation786 F.2d 1507
Parties40 Fair Empl.Prac.Cas. 1050, 40 Empl. Prac. Dec. P 36,305 Jerome L. ARCHAMBAULT, Plaintiff-Appellee, Cross-Appellant, v. UNITED COMPUTING SYSTEMS, INC., a foreign corporation, Defendant-Appellant, Cross-Appellee.
CourtU.S. Court of Appeals — Eleventh Circuit

Michael G. Williamson, Orlando, Fla., Byron J. Beck, Marc E. Elkins, Overland Park, Kan., for defendant-appellant, cross-appellee.

Joseph Egan, Jr., Orlando, Fla., for plaintiff-appellee, cross-appellant.

Appeals from the United States District Court for the Middle District of Florida.

Before HILL, Circuit Judge, and TUTTLE and HENDERSON, * Senior Circuit Judges.

HILL, Circuit Judge:

FACTS

Appellee Jerome Archambault brought the present action alleging that his dismissal by appellant United Computer Systems, Inc. [hereinafter "UCS"] violated the Age Discrimination in Employment Act, 29 U.S.C. Sec. 621 et seq. The district court referred the case to a United States magistrate pursuant to 28 U.S.C. Sec. 636(b)(2). After conducting an evidentiary hearing, the magistrate recommended that judgment be entered in favor of Archambault. The district court conducted a subsequent hearing on objections raised by UCS to the magistrate's report and recommendation and held that Archambault had failed to satisfy his burden of persuasion with respect to the age discrimination claim. In Archambault v. United Computer Systems, Inc., 695 F.2d 551 (11th Cir.1983), this court remanded the case on the ground that the district court, in refusing to adopt the magistrate's findings, had failed to apply the clearly erroneous standard appropriate for review of a magistrate's finding of discrimination. See Pullman-Standard v. Swint, 456 U.S. 273, 102 S.Ct. 1781, 72 L.Ed.2d 66 (1982). On remand, the district court ruled that it could not find the magistrate's findings clearly erroneous, but remanded the case to the magistrate for clarification of certain findings pertaining to damages. After a further remand for additional clarification as to the damages issue, the magistrate issued a report and recommendation regarding damages, concluding Archambault was entitled to $15,815 in actual damages. The district court approved the magistrate's assessment of actual damages, then independently determined that UCS' violation was "willful" as that term is defined by this circuit and awarded Archambault an additional $15,815 in liquidated damages.

The following facts are relevant to this case. On November 16, 1973, UCS hired Archambault for the position of sales representative in its Tampa office. Archambault enjoyed substantial success in this position. Early reviews by immediate supervisors were highly complimentary, although reservations were expressed about his management abilities. UCS subsequently promoted Archambault to branch manager of the Orlando office. Once again, his initial evaluation after assuming this new position was very good. The Orlando office remained a productive office throughout Archambault's direction of that office.

In the fall of 1976, Jim Smidt became regional sales manager for the Southern Region of UCS and thus assumed responsibility over the office Archambault managed. Smidt apparently was advised of a number of problems existing with the Orlando office when he assumed control, including a lack of new account acquisitions, inadequate control over office expenses, and difficulties in managing Archambault. Smidt had also witnessed Archambault's presentation at a June, 1976 sales meeting for managers in the Southern Region and, according to Smidt's testimony, developed from that presentation the opinion that no organized sales plan existed for the Orlando market.

Smidt and Archambault apparently experienced a clash of philosophies as to proper management of the Orlando office. The two men conducted a number of discussions in an effort to alleviate the concerns of which Smidt was advised when he assumed his position, though apparently Archambault's responses to these discussions were not to Smidt's satisfaction. In a January 1977 evaluation, Smidt gave Archambault his first and only negative evaluation, repeating the concerns mentioned previously. On February 21, 1977, Smidt notified Archambault that he was being dismissed. Archambault testified that Smidt informed The magistrate hearing the case determined that Smidt recommended and brought about Archambault's dismissal and was motivated in this action to a significant degree by the view that Archambault did not project the young image he considered appropriate for UCS. The magistrate further found that Archambault's age sufficiently tainted Smidt's view of Archambault and a possible replacement such that it was a basis in fact for the dismissal.

                him after the dismissal that the computer industry was a "young man's game" which had "outgrown him."    Archambault also introduced evidence that in response to inquiry about why Archambault had been dismissed, Smidt told Archambault's successor that Archambault was "too old" for the position.  The notice of termination stated the dismissal was the result of "[i]neffective management of their Orlando office ... [inability] to carry out UCS marketing objectives, that is new account acquisition."    Archambault subsequently instituted the present suit
                
DISCUSSION

UCS initially challenges the liability finding, asserting (1) certain findings of fact in the magistrate's report and recommendation are clearly erroneous; and (2) the magistrate misapplied Eleventh Circuit law as to the allocation of burden of proof in age discrimination cases. UCS also challenges the award of damages, contending the district court's determination that the violation was willful and its subsequent award of liquidated damages pursuant to that finding was error as (1) the district court employed an improper legal standard in making the "willful" determination; (2) even employing the standard used by the district court there was insufficient evidence to support the willfulness finding; and (3) the finding of willfulness was contrary to the magistrate's report and recommendation and thus may be sustained only if the magistrate's finding was clearly erroneous. Archambault cross-appeals with respect to the calculation of damages, contending that the magistrate and district court incorrectly ascertained the time at which damages stopped accruing by (1) erroneously imposing upon the victim of the discrimination, rather than the employer, the burden of proving that the victim is not entitled to reinstatement; and (2) holding that elimination of a plaintiff's job, standing alone, is sufficient to cut off his remedy.

Liability Finding

We first review UCS' allegations of error in the magistrate's findings of fact. UCS objects specifically to the following findings:

19. The conduct of the defendant's representative, Jim Smidt, in recommending and causing the discharge of the plaintiff was motivated in significant measure by Smidt's view of the plaintiff as not fitting the image he had in mind as appropriate and in the customer relations interest of the defendant.

20. The image was of a young man, of the age and appearance, to the extent age is a factor in appearance, of plaintiff's replacement.

21. The factor of plaintiff's age sufficiently tainted Smidt's view of plaintiff and whoever he had in mind in replacement that it was a basis in fact for the plaintiff's discharge.

UCS asserts that the record clearly establishes that Archambault's discharge resulted from shortcomings with respect to his job performance, particularly (1) his inability to acquire new accounts; (2) his continued lack of technical expertise, most importantly as to new UCS products; (3) his inability to improve management in his office; and (4) his inability to alter his methods of sales and marketing.

The district court originally referred this action to the magistrate as a special master pursuant to 28 U.S.C. Sec. 636(b)(2). Ordinarily, a district court may reverse the findings of a special master only if they are clearly erroneous. In re Multiplonics, Inc., 622 F.2d 709, 723 (5th Cir.1980). A finding of fact is clearly erroneous if, although there is evidence to support the finding, a review of the entire record leaves the court with a definite and firm conviction that a mistake has been made. Id. at 623. A review of the record here does not leave us with such a definite and firm conviction.

Archambault introduced evidence of a strong performance record with the company, supplemented by a number of outstanding reviews. Discrepancies existed in UCS' explanations of the dismissal. UCS responded to a Department of Labor investigation by stating that the dismissal was due in part to customer complaints from a Jim Pless, when in fact these complaints occurred after Archambault's dismissal and then only upon Smidt's solicitation. Archambault testified that Smidt stated after dismissing Archambault that the computer industry was a "young man's game" which had "outgrown him." Nicholas Mascia, who replaced Archambault as manager of the Orlando area, testified that when he inquired as to why his predecessor had been dismissed Smidt stated that Archambault was "too old" for the position. Evidence was also introduced that Smidt decided to fire Mascia, Archambault's replacement, but refrained from doing so until after completion of the Department of Labor investigation, which one could infer as an effort to keep Mascia quiet regarding Smidt's "too old" comment. We conclude that the sum total of this evidence demonstrates that these findings of fact were not clearly erroneous.

We now turn to the question of whether the magistrate applied the proper order and burden of proof for age discrimination cases. A plaintiff establishes a prima facie case of age discrimination by proving (1) his membership in a protected class; (2) his discharge; (3) his qualifications for the job;...

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