Hite v. Biomet, Inc.

• Decision Date: 03 March 1999
• Docket Number: No. 1:98-CV-0022.,1:98-CV-0022.
• Citation: 38 F.Supp.2d 720
• Parties: Sherri E. HITE Plaintiff, v. BIOMET, INC., Defendant.
• Court: U.S. District Court — Northern District of Indiana

38 F.Supp.2d 720

Sherri E. HITE Plaintiff, v. BIOMET, INC., Defendant.

No. 1:98-CV-0022.

United States District Court, N.D. Indiana, Fort Wayne Division.

March 3, 1999.

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C. Erik Chickedantz, Hawk, Haynie, Gallmeyer and Chickedantz, Fort Wayne, IN, for C. Erik Chickedantz, mediator.

Cynthia Rockwell, Haller and Colvin, Fort Wayne, IN, for Sherri E. Hite, plaintiff.

Thomas M. Kimbrough, Barrett and McNagny, Fort Wayne, IN, for Biomet, Inc., defendant.

MEMORANDUM OF DECISION AND ORDER

WILLIAM C. LEE, Chief Judge.

On January 16, 1998, plaintiff, Sherri E. Hite ("Hite") filed her complaint against Defendant Biomet, Inc. ("Biomet") alleging violations of the Family and Medical Leave Act of 1993 ("FMLA"), 29 U.S.C. § 2617, the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12111, et seq., and the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. § 1132. Hite contends that Biomet retaliated against her after she took medical leave under the FMLA by subjecting her to a hostile work environment and terminating her employment; retaliated against her on the basis of her disability; intentionally interfered with her right to certain short term and long term disability benefits; and wrongfully denied her claims for medical and disability benefits. Biomet denies discriminating against or interfering with Hite's rights and contends that it properly denied Hite the benefits she seeks to recover in this lawsuit.

Presently before the court is Biomet's Motion for Summary Judgment together with its Brief in Support and accompanying appendices, filed on October 21, 1998. On November 20, 1998, Hite responded by filing her Brief in Opposition to the Motion for Summary Judgment and appropriate supporting materials to which Biomet replied on December 14, 1998.

After reviewing the parties' briefs, this court entered an Order dated February 16, 1999 requesting further briefing by the parties regarding plaintiff's claim that she was subjected to a hostile work environment following her return to work after taking FMLA leave. In particular, the court requested additional briefs on whether the instances of alleged retaliation creating the hostile environment, as alleged by Hite, were sufficient to state a claim for FMLA retaliation. Thereafter, on February 25, 1999, Hite filed her supplemental cross-brief on this issue. One day later, on February 26, 1999, Biomet filed its supplemental brief addressing this issue.

For the following reasons, Biomet's Motion for Summary Judgment will be DENIED as to Hite's FMLA retaliation claim arising out of her first FMLA leave and GRANTED with respect to all remaining claims.

FACTUAL BACKGROUND

Hite commenced her employment with Biomet on August 16, 1982 and was continuously employed by Biomet until her termination in August, 1996. Immediately preceding Hite's termination she worked as a "return goods clerk." The events giving rise to the present action involve Hite's pregnancy and her decision to take medical leave after terminating the pregnancy in January, 1996.

Hite learned she was pregnant during the fall of 1995. Due to her age, plaintiff's OB/GYN, Dr. Keith Davis, ("Dr.Davis") advised Hite to undergo genetic testing of her fetus. Hite agreed to undergo the genetic testing and an ultrasound. The tests revealed that the fetus suffered from a chromosomal disorder, Trisomy 18, which causes Edwards Syndrome.¹ According to Hite, Dr. Davis informed her that this chromosomal disorder would likely result in death to her child, either before birth or shortly thereafter. Further, Dr. Davis told Hite that if she carried the baby to term, it would be unable to swallow or eat. As a result of this diagnosis, Dr. Davis advised Hite that in his medical opinion she should have an elective delivery of a nonviable fetus rather than continue the pregnancy to term. (Davis Aff., ¶ 3).

After consulting with the child's father and with Dr. Davis, Hite decided to electively terminate her pregnancy. On January 23, 1996, Hite delivered a still born baby boy at Lutheran Hospital. Thereafter, Dr. Davis placed Hite on medical leave from Biomet. As a result of the medical procedure and corresponding leave, Hite submitted a claim for health and disability benefits to Biomet. Biomet denied both claims.

Jack Heeter ("Heeter"), Biomet's benefits manager, is the individual responsible for making decisions and interpreting plan provisions relating to Biomet's health and short term disability plans. (Heeter Dep. p. 74). According to Heeter, he denied coverage for Hite's medical procedure pursuant to the terms of the health plan which specifically excludes from coverage "[s]ervices for an abortion and any complications therefrom, except in cases of rape, incest, or if it is medically determined that the life of the mother would be threatened by carrying the child to term." (Summary Plan Description, Appendix to Plaintiff's Response 9 ("Appendix"), Exh. 8). Heeter testified that he made the decision to deny coverage after reviewing the insurance claim form submitted by Dr. Davis which indicated that the services provided were services for an "induced abortion."² In addition, Heeter testified that he reviewed Hite's medical records, the diagnosis codes, and Hite's pregnancy chart before concluding that the procedure was not covered under the plan. (Heeter Dep. pp. 43-44, 50-51). Heeter stated that although the summary plan description provides no definition of "abortion," he utilized his own experience and interpretation of the term when denying the claim.³ After reviewing all of this information and interpreting the appropriate plan provisions, Heeter concluded that Hite's life was not threatened by a continuation of the pregnancy to term and denied coverage. Following his conclusion, Heeter sent Hite a letter, dated March 19, 1996, indicating that he had denied coverage for both her short term disability and medical benefit claims pursuant to the terms of the Biomet Health Plan. (Appendix, Exh. 9).

Thereafter, on April 2, 1996, Heeter received a letter from Dr. Davis regarding the denial of Hite's benefit claims. In this letter Dr. Davis indicated that "I suppose a continuation of the pregnancy would have been possible, but this would have placed the mother at increased risk for several complications of pregnancy, including pre-eclampsia, toxemia, diabetes, and macrosomia, and possibly Cesarean section." Heeter testified that he received this letter but did not interpret the above passage as an indication that Hite's life was at risk if she continued the pregnancy. (Heeter Dep. p. 117; Dep. of Darlene Whaley, p. 30, hereafter "Whaley Dep. p. —"). Accordingly, he did not alter his decision to deny benefits.

On February 23, 1996, Hite returned to work following her medical leave of absence. It appears that Biomet designated this leave time as FMLA leave, although neither parties' statement of genuine issues refers to it as such. Prior to having the medical procedure and taking the leave of absence, Hite stated that she discussed her pregnancy with co-workers and her supervisor. Hite testified that her supervisor, Herschel Walters ("Walters") commented negatively to her about the fact that she was pregnant at her age and not married. Hite also indicated that she told a co-worker, Susan Freedle ("Freedle") in confidence about the complications she was having with the pregnancy. According to Hite, Freedle did not keep her confidence and told others at Biomet about these complications.

Upon her return to work after the medical leave, Hite testified that she encountered a hostile working environment. Hite stated that she returned to find a co-worker sitting at her desk. Hite testified that Walters moved her into a smaller space that had no space for her to hang her coat or purse. She testified, "I didn't have my job; I didn't have my desk; I was pushed into a cubbyhole." In addition to her change in location, Hite testified that her job responsibilities changed in that Walters assigned her the hardest and most time consuming credits. Hite also testified that Walters treated her rudely and coldly as did her other co-workers. Specifically, Hite stated that Walters would give her directives such as "get over there and sit down" and would answer Hite's questions rudely by telling her to "shut up and do her job." Hite testified that she spoke to Walters about his treatment of her following her leave, but the situation did not improve. Hite did not further report these events to Walters' supervisor.

Three weeks into Hite's return from the original medical leave, Hite's family practitioner, Dr. Strycker, placed her on a second medical leave of absence due to the stress and anxiety created at work. Dr. Strycker released Hite to return to work in April, 1996. However, upon her return to work, Hite testified that Walters continued his rude behavior. As a result, Hite worked only one day before Dr. Strycker placed her back on a medical leave of absence.

During these latter two leaves of absence, Hite applied for short-term disability benefits offered by Biomet. The Biomet Short Term Disability plan offers employees short term disability income of 60% of the employee's average weekly earnings for up to 26 weeks. Hite sought medical care for depression and received short term disability leave continually throughout both of these leaves of absence. Further, during these leaves Biomet considered Hite to be on an excused leave of absence. Heeter did not make any decisions regarding Hite's employment status with Biomet, rather, Darlene Whaley ("Whaley"), from the human resources department, was responsible for making decisions regarding Hite's employment status. However, Heeter and Whaley interacted regularly concerning Hite's status since Hite would only receive an excused absence for the time she was under a physician's care for her disability.

On May 30, 1996,...