Arnell v. Pan American World Airways, Inc., 84 Civ. 595 (WK).

Decision Date25 June 1985
Docket NumberNo. 84 Civ. 595 (WK).,84 Civ. 595 (WK).
PartiesGratien ARNELL, George Arnold, Charles Borger, Louis Boynton, James Finnen, Arthur Kneale, James Magill, Benjamin Romanowski, Joseph Triolo, Anthony Triolo and Flor Yglesias, as Administratrix of the Estate of Rodrigo R. Yglesias, Plaintiffs, v. PAN AMERICAN WORLD AIRWAYS, INC., Defendant.
CourtU.S. District Court — Southern District of New York

Ira Raab, Woodmere, N.Y., for plaintiff Yglesias.

Ormsten & Evangelist by Frank J. Evangelist, New York City, for remaining plaintiffs.

Townley & Updike by Kenneth McCulloch, New York City, for defendant.

MEMORANDUM & ORDER

WHITMAN KNAPP, District Judge.

This is a consolidated action by several plaintiffs against their former employer, Pan American World Airways, Inc. ("Pan Am"), for age discrimination, breach of an employment contract, breach of a covenant of good faith and fair dealing, intentional fraud and deceit, and negligent misrepresentations.1 Only the first cause of action, discrimination on the basis of age in violation of the Age Discrimination In Employment Act of 1967, 29 U.S.C. § 621 et seq. (ADEA), states a federal claim. The remaining four involve questions of New York State law only. The case is before us on defendant's motions (1) to strike plaintiffs' prayer for relief with respect to the first cause of action insofar as it asks for compensatory damages based on violation of the ADEA; (2) to decline jurisdiction over the four claims brought under state common law; and (3) in the alternative to dismiss, with prejudice, the four asserted state law claims.

As a preliminary matter we grant defendant's motion to dismiss plaintiffs' request for compensatory damages under the ADEA. Every Circuit, including recently our own, has held that recovery for compensatory damages is not permissible under the ADEA. Johnson v. Al Tech Specialities Steel Corp. (2d Cir.1984) 731 F.2d 143, 147.

To address defendant's motion to decline pendent jurisdiction, we think it helpful first to summarize the entire complaint. Plaintiffs allege, essentially, that each of them was terminated by defendant in connection with a reduction in force, and that these terminations were wrongful on several grounds. With respect to the age discrimination claim, plaintiffs allege that defendant discriminated against them by firing highly competent, but more costly, older workers while retaining less qualified and less costly younger workers. To present a prima facie case on that claim plaintiffs must establish (1) that they were members of the protected group; (2) that they were adversely affected by an employment decision; (3) that they were qualified to do the job; and (4) either that they were replaced by younger persons or, in a reduction-in-force case, some evidence that the employer's conduct was based on age. See McDonnell Douglas Corp. v. Green (1973) 411 U.S. 792, 802, 93 S.Ct. 1817, 1824, 36 L.Ed.2d 668; Stanojev v. Ebasco Services, Inc. (2d Cir.1981) 643 F.2d 914, 920-21; Deutsch v. Carl Zeiss, Inc. (S.D.N.Y.1981) 529 F.Supp. 215, 217-18. Once plaintiff has established a prima facie case, defendant must articulate some non-discriminatory reason for the employment decision. Plaintiff then has the opportunity to discredit the evidence by showing that the reason is pretextual. Thus, the critical evidence which plaintiffs will have to present in the instant action will include either evidence of direct discriminatory conduct, or evidence that defendant's employment policies were applied differently to older workers than to younger workers.

In contrast, plaintiffs' state claims raise different issues and require different kinds of proof. Plaintiffs' second cause of action alleges a breach of an express agreement not to terminate without cause. Although it appears to us that plaintiffs' employment could be characterized as employment-at-will, plaintiffs, to establish their claim, might present evidence that defendant's personnel policy manual and other documents, together with any statements made by defendant, created such an express agreement. The kinds of issues created by this particular claim include whether the documents created a contract, whether defendant made oral statements and, if so, whether any such statements, together with the documents, created a contract; and the effect of a "reservation of management rights" clause such as that which defendant had in its manual. With respect to these issues, each of the eleven plaintiffs was hired at a different time and each will have to present evidence to show that under the circumstances of his own hiring, an enforceable contract was created.

Not only does this claim require different proof for each plaintiff, and raise issues different from those of the federal claim, thus requiring different evidence, but is also raises legal issues peculiarly suited for the New York courts. The circumstances under which policy manuals, or policy manuals in conjunction with statements and behavior, can create an enforceable contract is a developing area of New York law. See Murphy v. American Home Products Corp. (1983) 58 N.Y.2d 293, 304-05, 307-15, 461 N.Y.S.2d 232, 237, 239-43, 448 N.E.2d 86, 88-92; Weiner v. McGraw-Hill, Inc. (1982) 57 N.Y.2d 458, 457 N.Y.S.2d 193, 443 N.E.2d...

To continue reading

Request your trial
11 cases
  • Burger v. Health Ins. Plan of Greater New York
    • United States
    • U.S. District Court — Southern District of New York
    • April 15, 1988
    ...could lead to jury confusion on the damages issue.4See McLaurin v. Fischer, 768 F.2d 98, 105 (6th Cir.1985); Arnell v. Pan Am. World Airways, 611 F.Supp. 908, 910 (S.D.N.Y.1985); Malarkey v. Texaco, 559 F.Supp. 117, 123 (S.D.N.Y.1982), aff'd per curiam, 704 F.2d 674 (2d Cir.1983). Viewed in......
  • Medwid v. Baker
    • United States
    • U.S. District Court — Southern District of New York
    • November 26, 1990
    ...to an inference of age discrimination. Pena v. Brattleboro Retreat, 702 F.2d 322, 324 (2d Cir.1983), Arnell v. Pan American World Airways, Inc., 611 F.Supp. 908, 909 (S.D.N.Y.1985). 1. Internal Counseling, Sixty-Day Monitoring, Buffalo Detail and Los Angeles The Secretary argues that Medwid......
  • Patel v. Lutheran Medical Center, Inc.
    • United States
    • U.S. District Court — Eastern District of New York
    • January 29, 1991
    ...proofs, many courts have rejected pendent jurisdiction over state law claims in discrimination suits. In Arnell v. Pan American World Airways, 611 F.Supp. 908, 909 (S.D.N.Y.1985), the court in an ADEA suit rejected pendent jurisdiction over state law claims for breach of employment contract......
  • Pfeiffer v. William Wrigley Jr. Co.
    • United States
    • United States Appellate Court of Illinois
    • October 21, 1985
    ...have litigated his State law claim in Federal court by invoking that court's pendent jurisdiction. (See Arnell v. Pan American World Airways, Inc. (S.D.N.Y.1985), 611 F.Supp. 908, 910.) But even if plaintiff could have brought his State law claim with his Federal law claim, he was not requi......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT