Herbst v. System One Information Management, LLC, 1:96CV2094.
| Citation | 31 F.Supp.2d 1025 |
| Decision Date | 22 September 1998 |
| Docket Number | No. 1:96CV2094.,1:96CV2094. |
| Parties | Randee HERBST, Plaintiff, v. SYSTEM ONE INFORMATION MANAGEMENT, L.L.C., d/b/a System One Company, Defendant. |
| Court | U.S. District Court — Northern District of Ohio |
Ellen Sacks Simon, Christopher P. Thorman, Lancione & Simon, Cleveland, OH, for Randee Herbst, plaintiff.
William J. O'Neill, McDonald, Hopkins, Burke & Haber, Cleveland, OH, Michael C. Towers, David R. Kresser, Jason J. Stout, Fisher & Phillips, Atlanta, GA, F. Kytle Frye, III, Fisher & Phillips, Atlanta, GA, for Defendant.
Plaintiff, Randee Herbst, initiated this action in the Common Pleas Court of Cuyahoga County, from which it was removed to this federal court by the defendant, System One Amadeus, L.L.C. (formerly known as System One Information Management, L.L.C.) (hereinafter "System One"), alleging that in 1996 she was terminated from employment and denied rehire by reason of her age, in violation of the federal Age Discrimination In Employment Act of 1967 (ADEA), 29 U.S.C. § 621 et seq., and the Ohio Civil Rights Act (OCRA), Ohio Revised Code §§ 4112.99 and 4101.17. The complaint also asserts causes of action under the common law of Ohio, including claims for breach of contract and promissory estoppel.
System One markets and provides travelrelated services to travel agencies, airlines, cruise lines and hotels through an automated computer reservations system. Plaintiff was employed by System One and its predecessor companies for 41 years, starting her career in 1956 at Eastern Airlines as a reservation agent and flight attendant.1 During her employment with System One plaintiff held the positions of Product Manager (1986-1989); District Manager (1989-1991); Corporate Account Executive (1991-1992); and National Sales Manager (1992-1996).
Evidence of plaintiff's on-the-job performance is found in an affidavit of Mr. Bill Nelson, plaintiff's immediate supervisor for several years prior to his departure from the company in 1995,2 who described her as "an outstanding performer," "the best of any National Sales Manager that proceeded her" and "one of the most productive and versatile of all of the National Sales Managers." Additional evidence is found in a letter of reference provided by Mr. Nelson in which he stated in pertinent part:
I would like to offer this recommendation to anyone considering offering employment to Randee Herbst. As her supervisor for the last three years I can recommend Randee as one of my best employees. Randee has been a dedicated and solid performer in her position as National Sales Manager. She was the only manager that I was able to identify that was able to effectively manage our second largest customer, Uniglobe International Travel. She is a very hard worker that throws herself at her work. She is extremely proficient at relationship selling, and wrapping her arms around the customer. She is also very skilled at working customer meetings and conventions and representing System One in the best possible light.
I can only provide my highest recommendation to anyone considering employing Randee. She will be an asset to any organization.
Concurring in the foregoing was Mr. John Dean, Vice President of Uniglobe International Travel, who wrote in his letter of reference:
During the time that Randee has managed the Uniglobe account for System One, our business has increased significantly. Randee has been very adept at managing the needs of a large and very demanding organization such as UNIGLOBE. She has displayed excellent sales leadership in motivating her field sales people responsible for managing our account on a local basis. She has shown that she can "get things done" despite any obstacles that might come her way. In a business that relies heavily on good relationships, Randee has patiently built excellent relationships at all levels of our organization.
In late 1995 to early 1996, upon undergoing a review of business initiatives and strategy, System One projected losses in revenue in fiscal year 1996. Consequently, System One underwent a reorganization which included a reduction in force (hereinafter "RIF"). Specifically, effective March 1, 1996 certain positions were eliminated and 163 employees, including plaintiff, were terminated. Overall, there was a 16% reduction in the total pre-RIF workforce of 1006 employees. Of the 163 employees terminated 62 were younger than age 40 and 37 were between the ages of 40 and 45.
At the time of plaintiff's termination she was 61 years of age and one of four National Sales Managers, the others being Ms. June Belsanti, then age 40, who was based in the Chicago area; Ms. Valerie Gibson, then age 40, who was based in the Charlotte area; and Ms. Kate Farrell, then age 45, who was based in the New York area. The National Sales Managers were part of the company's Sales and Marketing Division.
Mr. James Davidson was the Vice President of the Sales and Marketing Division at the time of the RIF. Answering to him were four Sales Directors: Mr. Charles Gallina in the northeast region; Mr. Dick Schmidt in the southern region; Mr. Chris Gruenwald in the central region; and Mr. Ron Hale in the western region. Each had sales representatives and other sales staff who reported to him.
As a consequence of the RIF came restructuring of the Sales and Marketing Division which resulted in termination of 60 employees within that division, including three of the four National Sales Managers, those being Ms. Belsanti, Ms. Gibson and plaintiff. Mr. Davidson, who made the personnel decisions, testified during his deposition that Ms. Farrell was retained "because of her expertise in Max," which is "a back office accounting product that [System One] sold to large customers as well" which the others lacked. Ms. Farrell, who had at one time been a Max sales manager, had American Express as one of her Max system accounts.
As part of the restructuring Mr. Schmidt was moved from his position as Sales Director of the southern region to the position of Multi-National Sales Director. In that position he serviced some customers which had been assigned to the four National Sales Managers, although other of their customers were dropped. Sometime after he began working in that position Mr. Schmidt realized that he needed additional support in order to fulfill his obligations, and turned to Mr. Davidson with a request for assistance. They decided to hire Ms. Mayre Veite, a 63-year-old employee of the Sales and Marketing Division,3 to assist Mr. Schmidt in his duties. Ms. Veite's responsibilities included some that had been performed by plaintiff.
In a letter to Mr. Davidson dated March 12, 1996 the plaintiff reviewed the highlights of her tenure with the company and discussed her assets, stating in pertinent part:
On February 26, 1996 1 was advised that I would be terminated from System One effective March 1, 1996. I was given the reason that my department was dissolved due to restructuring of the company.
I understand the reason for cutbacks in any company is to focus on the bottom line — "PROFIT." I always had that in mind during my tenure with Eastern Airlines and System One and realize these things have to be done no matter how unpleasant the task.
* * * * * *
In closing I an asking for an equal position in the company and feel there is a mutual advantage for me to be reinstated. I appreciate your consideration and look forward to your reply.
In mid-April of 1996 System One posted 16 positions identified as Regional Consolidation Coordinators (hereinafter "RCC"), which were new to the company. These positions were intended to be temporary, and designed to assist System One clients in converting from one computer system to another. Unlike the positions held by the plaintiff these were not sales positions, and required a great deal of technical expertise in the computer systems.
In a letter dated May 2, 1996 directed to Ms. Maritza Ortiz plaintiff asked to be considered for the position of Regional Consolidation Coordinator in Cleveland. On or about May 21, 1996 Mr. Kent Chamberlain, the hiring manager for the RCC position, interviewed plaintiff. At that time she was the only interviewee. While he ultimately decided that he would like to offer plaintiff the position, and made such a recommendation to Mr. Davidson, the following deposition testimony reflects that he had some degree of concern as to her technical qualifications:
Mr. Chamberlain further testified that when he recommended to Mr. Davidson, who was two levels higher in the company hierarchy, that the plaintiff be hired for the Cleveland RCC position Mr. Davidson instructed him, without...
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