Blanchet v. First American Bank Group, No. C99-3070-MWB (N.D. Iowa 8/31/2001)
| Decision Date | 31 August 2001 |
| Docket Number | No. C99-3070-MWB.,C99-3070-MWB. |
| Parties | RONALD J. BLANCHET, Plaintiff, v. FIRST AMERICAN BANK GROUP, LTD, Defendant. |
| Court | U.S. District Court — Northern District of Iowa |
Following the termination of his employment, plaintiff Ronald J. Blanchet brought this action against his former employer, defendant First American Bank Group, Ltd., alleging age and gender discrimination in violation of state and federal law, and a state common-law claim of retaliatory discharge, in violation of Iowa public policy, for refusing to participate in defendant's filing of an allegedly fraudulent insurance claim. First American Bank Group, Ltd. seeks summary judgment on all of Blanchet's claims.
Plaintiff Ronald J. Blanchet ("Blanchet") filed his complaint in this employment discrimination and retaliatory discharge lawsuit on September 16, 1999, following his termination from his position as Chief Financial Officer ("CFO") with defendant First American Bank Group, Ltd. ("FABG") on December 31, 1998. Blanchet alleges his dismissal was in violation of both federal and Iowa law, and his complaint avers four causes of action. Specifically, Cause of Action A contends FABG terminated Blanchet because of his age and, consequently, in violation of the Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 623 et seq. Cause of Action B alleges sex discrimination in violation of Title VII, 42 U.S.C. § 2000e et seq. . Cause of Action C alleges Blanchet's treatment and termination because of his age and sex constituted an unfair employment practice under the Iowa Civil Rights Act ("ICRA"), Iowa Code Ch. 216. And finally, Cause of Action D alleges Blanchet's termination was retaliatory and in violation of Iowa public policy because it resulted from Blanchet's refusal to participate in the filing of an allegedly fraudulent disability insurance claim on behalf of FABG's former president and Chief Executive Officer (CEO), William Gibb.
On January 24, 2001, FABG moved for summary judgment on each of Blanchet's claims.1 FABG argues summary judgment is appropriate for several reasons, asserting primarily that Blanchet was terminated because he was not fulfilling his duties as CFO. More specifically, FABG contends Blanchet has failed to establish a prima facie case of age and sex discrimination because Blanchet cannot show that, at the time of his termination, he was performing his job at a level that met FABG's legitimate expectations. In addition, even if Blanchet could establish a prima facie case of discrimination, FABG argues Blanchet did not raise a question of fact as to whether FABG's stated legitimate justification for Blanchet's termination was pretextual and, consequently, did not create a reasonable inference that a protected characteristic was a determinative factor in his termination. Lastly, FABG argues that the Iowa public policy exception to the employment at will doctrine does not apply to the instant case because Blanchet's mere impression of a conversation, without more, does not rise to the level of a violation of public policy. And furthermore, because a discharge is not unlawful under this cause of action unless the public policy consideration is the determinative factor in a plaintiff's termination, FABG argues that its legitimate reasons for dismissinging Blanchet preclude a finding in his favor.
Blanchet opposed FABG's motion and filed a resistance on June 13, 2001.2 Blanchet asserts he generated genuine issues of material fact on all of his claims, particularly on the issues of whether he was qualified to perform his job and whether FABG's articulated legitimate reasons were pretextual. FABG filed a reply on July 16, 2001.
In its original motion, defendant requested, and the court granted, oral arguments on this motion for summary judgment, which took place telephonically on August 28, 2001. Plaintiff Blanchet was represented at these arguments by Michael J. Carroll of Coppola, Sandre, McConville & Carroll P.C., West Des Moines, Iowa. Defendant FABG was represented by Neven J. Mulholland of Johnson, Erb, Bice, Kramer, Good & Mulholland, P.C., Fort Dodge, Iowa.
The court will discuss here only the nucleus of undisputed facts and such of the disputed facts as are necessary to provide a factual background for the legal analysis of the defendant's motion for summary judgment rather than attempt to provide an exhaustive dissertation of the undisputed and disputed facts of this case. In its legal analysis, the court will address in greater detail, where necessary, Blanchet's assertions of genuine issues of material fact that may preclude summary judgment in the defendant's favor.
Blanchet began his career with the defendant in 1981. At that time, he was employed by the defendant's predecessor, The State Bank in Fort Dodge, Iowa as an auditor and accountant. In 1982, a one bank holding company was formed, and the bank's name was changed to First American Bank, Fort Dodge (hereinafter Fort Dodge bank). During his tenure with the Fort Dodge bank, Blanchet received good performance evaluations and ultimately progressed to the position of comptroller. When the holding company acquired four new banks in 1994, the name of the company was changed to First American Bank Group, Ltd. ("FABG"). In October of 1994, Blanchet left his employment at the Fort Dodge bank to become Vice President and Chief Financial Officer ("CFO") of FABG. Blanchet was the company's first CFO, and he held this position until he was terminated on December 31, 1998.
In May or June of 1995, FABG's president and Chief Executive Officer, William Gibb, was diagnosed with cancer. Mr. Gibb was covered by several disability insurance policies. Despite the existence of those policies, however, Mr. Gibb continued to receive his full annual salary and retained the title of CEO after his diagnosis even though his ability to work was, at best, sporadic because of the severity of his illness and the side-effects of his treatments. Mr. Gibb passed away on December 21, 1996. Sometime prior to Gibb's death, he allegedly had a conversation with Thomas Schnurr ("Schnurr"), the current president and CEO of FABG, in which Gibb told Schnurr that he (Gibb) had asked Blanchet to process Gibb's disability claims in order to reimburse the company for the salary he had been drawing while ill. Schnurr told Tom Kregel ("Kregel"), Gibb's immediate successor as president and CEO, about this conversation with Gibb. After Gibb's death, Kregel approached Blanchet and asked him whether Gibb had requested that he process Gibb's disability claims. The parties agree that this conversation took place and that Blanchet denied having been instructed by Gibb to file any insurance claims. The parties part ways, however, in their impression of the intent behind this questioning:
Blanchet claims Kregel approached him "with a wink and a nod" and that it was clear to Blanchet that Kregel was, in reality, asking Blanchet to falsify information in order to explain FABG's delayed filing of Gibb's disability claims and, consequently, in order recover under those policies. FABG asserts that no unlawful intent undergirded Kregel's questioning of Blanchet. Instead, FABG argues Kregel was merely asking Blanchet, in reliance on credible information from Schnurr, whether Blanchet had indeed been instructed to file Gibb's claims.
Until 1997, Blanchet was the sole employee in FABG's accounting department. In April of 1997, Cindy Burke ("Burke") was promoted to assistant vice president of FABG from her previous position as vice president of commercial lending at the Fort Dodge bank. She reported to both Blanchet and another executive vice president, Lois Pannkuk ("Pannkuk"). While FABG contends it informed Blanchet in October of 1997 that he would eventually be dismissed, Blanchet claims he did not ultimately learn of his termination until October of 1998. He was discharge on December 31, 1998, and in January of 1999, Burke replaced him as the CFO of FABG. At this time, Burke was thirty years old, and Blanchet was forty-seven.
The nucleus of the disputed facts in this case centers on whether FABG ever informed Blanchet of his alleged shortcomings and whether there existed any nefarious intent behind questioning Blanchet about filing Gibb's insurance claims. While FABG points to a management study conducted by an independent organization, namely McGladley & Pullen, as objective evidence that Blanchet was a poor communicator and mediocre manager with an inability to look at the "big picture," Blanchet cites his most recent performance evaluation in 1997, which was satisfactory, as evidence that he was adequately performing his job. In October of 1997, Blanchet was given a raise of $1700 for 1998. At this same time, his subordinate, Burke, was given a raise of $10,000. Blanchet claims this evidences age and sex discrimination, especially in light of Blanchet's satisfactory performance review only two months later in December of 1997.
In 1998, prior to Blanchet's dismissal but after Burke was promoted to the holding company, FABG initiated the Scout Talent Program. Whether this was intended to weed out older males, as Blanchet contends, or to identify potential employees for advancement within the company, as FABG contends, is unclear. However, the parties agree that this program was aimed at identifying non-officer employees, particularly women, for additional training. Blanchet argues that this program is evidence of a company-wide policy of replacing older male workers with younger females.
This court has considered in some detail the standards applicable to motions for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure in a number of...
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