Hudson v. Lands' End Inc.

• Decision Date: 06 March 2013
• Docket Number: No. 12–cv–64–bbc.,12–cv–64–bbc.
• Citation: 928 F.Supp.2d 1045
• Parties: Joseph L. HUDSON IV, Plaintiff, v. LANDS' END INC., Defendant.
• Court: U.S. District Court — Western District of Wisconsin

928 F.Supp.2d 1045

Joseph L. HUDSON IV, Plaintiff,

v.LANDS' END INC., Defendant.

No. 12–cv–64–bbc.

United States District Court,

W.D. Wisconsin.

March 6, 2013.

Mary E. Kennelly, Fox & Fox, S.C., Monona, WI, for Plaintiff.

Mark A. Johnson, Timothy G. Costello, Krukowski & Costello, S.C., Milwaukee, WI, for Defendant.

OPINION AND ORDER

BARBARA B. CRABB, District Judge.

The question in this case is whether defendant Lands' End Inc. fired plaintiff Joseph Hudson IV from his job as general merchandising manager of the Men's Division because of his age, in violation of the Age Discrimination in Employment Act. 29 U.S.C. § 623. Defendant has filed a motion for summary judgment under Fed.R.Civ.P. 56, in which it contends that no reasonable jury could find in plaintiff's favor. Dkt. # 20. Because I conclude that genuine issues of material fact remain about defendant's decision to terminate plaintiff, I am denying defendant's motion for summary judgment.

From the parties' proposed findings of fact and the record, I find the following facts to be material and undisputed.

UNDISPUTED FACTS

A. The Parties

Defendant Lands' End is a direct merchant of apparel, swimwear and outerwear for women, men and kids, as well as a line of home products, luggage and seasonal gifts. It offers these products to customers worldwide through catalogs and the internet. Plaintiff Joseph Hudson began working for defendant in May 1988 as a product manager in the Men's Division.

B. Plaintiff's Promotion to General Merchandise Manager of the Men's Division

In 2006, defendant terminated the general merchandise manager for the Men's Division and began searching for a new manager. Generally, defendant filled general merchandise manager positions from outside the company rather than promoting internally. However, defendant did not find a outside candidate to fill the position and in September 2007, it offered the position to plaintiff. Plaintiff was 53 years old at the time.

Three people participated in the decision to promote plaintiff: David McCreight, President and CEO of defendant at the time; Lisa Fitzgerald, Executive Vice President of Merchandising, Design and Creative; and Kelly Ritchie, Senior Vice President of Employee Services. McCreight thought plaintiff had knowledge of defendant's customers, products and how to create a catalog page. He also enjoyed listening to plaintiff's presentations and thought plaintiff was articulate. Fitzgerald made the ultimate decision to promote plaintiff and discussed the promotion with him. She told plaintiff that she and McCreight believed he had earned the promotion and that they were pleased to recognize his efforts. Plaintiff accepted the promotion and Fitzgerald issued an announcement, praising plaintiff's teamwork, merchandising skills, financial acumen and “incredible knowledge” of defendant and its customers. Dkt. # 29–1.

As general merchandise manager for the Men's Division, plaintiff was accountable for the merchandising strategy and financial plan for the division. He was expected to have a strong knowledge of the industry and marketplace and the ability to translate that knowledge to the building of a product assortment that was appropriate and profitable. He performed and supervised the key functions related to merchandising, sales and inventory planning, design, sourcing, quality, catalog, creative planning and communications. From September 2007 until February 2008, plaintiff reported to Stephanie Pugliese, Senior Vice President of the Men's and Women's Divisions. From February 2008 to March 2009, plaintiff reported to Tara Ellef, Senior Vice President of Merchandising. After Ellef left the company in March 2009, plaintiff reported to Fitzgerald.

In 2008, Pugliese evaluated plaintiff's performance for his first four months as general merchandise manager. She gave him an overall rating of “effective,” noting that plaintiff was “extremely thoughtful, communicative, and assertive” in his approach to building the business, “very astute at creating profitable alternatives and opportunities,” “an effective communicator [who] keeps all parties well-informed of strategies and execution plans” and “well spoken and articulate” in his presentations. Dkt. # 29–2.

C. Decline of Sales and Promotional Activity

From about the year 2000 onward, the sales volume of the Men's Division had been declining while sales in the Women's Division had increased. By 2008 or 2009, the Women's business was larger than the Men's business. Additionally, since about the year 2000, the Women's Division received a greater share of the catalog investment than the Men's Division.

In 2008, Men's net sales declined by approximately $15,000,000. Net sales also declined for the Women's, Kids and Home divisions that year. This was partly anticipated, as the financial goal for the Men's Division in 2008 was lower than both the 2007 goal and actual sales. Despite the lower net sales, the Men's Division ended 2008 with higher “initial and final fill,” lower returns, 16% lower inventory and 14% “lower sku's,” none of which occurred in other business divisions.

Defendant used company-wide promotions in 2008 and 2009 to increase sales. Plaintiff was not involved in the decision to use promotions and the Men's Division did not use any promotions that were specific to Men's.

D. Creation of the “New Traditionalist” Line

As general merchandise manager, one of plaintiff's primary roles was to add revenue and profit through product development and new marketing strategies. Plaintiff initiated a new style of presentation that grouped products by design theme and connected products with marketing ideas. Plaintiff's new presentation style allowed management and other departments to understand the visual message that Men's was seeking to impart.

In November 2007, plaintiff suggested a new approach to revitalizing defendant's image with its traditional customers. The approach, called the “essentials project,” was intended to “refresh” product assortment without adopting product that was too young-looking, young-fitting or trendy for defendant's “traditional” customer. Plaintiff asked senior designer Ernesto Ramirez to select ten of defendant's garments that he thought were essentials for every “traditional” customer. Plaintiff and Ramirez then created a pin-up wall to display the essential products. Plaintiff also asked Ramirez to select magazine photographs that best depicted how the traditional customer would like to see his merchandise presented in an advertisement. This exercise, which was done in concert with the Merchandising and Design teams, took several weeks and served to refine the company's understanding of the traditional Men's customer. As a result of this effort, the Men's Division offered a new product called “Paintbrush shirts” that generated $849,000 in new revenue in the Spring and Summer 2009 season.

Around the same time that plaintiff was working on the “essentials project” with Ramirez, plaintiff and Ramirez initiated a new concept for the Men's Division that targeted a younger market and those with a different style from that of the “traditional” Men's customer. Plaintiff organized a buying trip to Manhattan to visit men's shops and department stores and evaluate current and future competitors, investigate fit, design and presentation trends and to buy samples. In February 2008, plaintiff asked Ramirez to create a pin-up wall that exhibited the clothing products that would be appealing to a demographic distinctly different from plaintiff's traditional customer. This led to the designation of “Classic,” which referred to the traditional customer and the “New Traditionalist,” which referred to the new customer.

In June 2008, a business review meeting was held for the “Classic” products that would be marketed for Spring and Summer 2009. Plaintiff made a presentation to McCreight and Fitzgerald and the leaders of the Finance, Inventory, Design, Creative and International divisions that summarized the forecasts, potential projects and critical needs for the Men's Division. The entire Spring and Summer 2009 line was developed around the “classic” customer and McCreight and Fitzgerald approved the Men's merchandising approach without changes. Immediately following the business review meeting, plaintiff and Ramirez showed McCreight, Fitzgerald and others the New Traditionalist concept display wall for the first time, presenting it as a possible new Men's apparel line. Everyone present was positive and enthusiastic.

E. Nick Coe becomes President of Defendant

In July 2008, McCreight left the company. In December 2008, Nick Coe joined the company as the new president. Shortly after he joined the company, Coe started asking Kelly Ritchie, Senior Vice President of Employee Services, whether plaintiff was the “right person” to fill the position of Men's general merchandise manager. In early 2009, Coe told Fitzgerald that plaintiff appeared to be struggling to run his business. He told her that plaintiff was incapable of answering questions of “what was wrong with his business” and “what he was going to do about it.” Coe asked Fitzgerald what she was going to do about it.

Coe testified at his deposition that plaintiff was not capable of doing his job and that he struggled to answer questions at business review meetings about what was wrong within the business and what he was going to do about it. Coe Dep., dkt. # 14, at 6–7. (Coe could not recall any specific questions that he asked plaintiff that plaintiff was not able to answer.) Coe also testified that he believed the Men's Division under plaintiff was not meeting its financial goals. Id. at 8. (This was incorrect.)

By the time Coe joined the company, the Men's team was preparing to launch the New Traditionalist line. In January 2009, Ellef, plaintiff's supervisor at the time, decided to present the “mock up” display to Coe at a business meeting. Ellef directed then 38–year...