Koons v. Aventis Pharmaceuticals, Inc.
| Decision Date | 07 May 2004 |
| Docket Number | No. 03-2165.,03-2165. |
| Parties | Randy E. KOONS, Appellant, v. AVENTIS PHARMACEUTICALS, INC., Aventis Integration Separation Plan, for HRM Associates, Appellees. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Mark A. Buchanan, argued, Kansas City, Missouri, for appellant.
Michael J. Gallagher, argued, Kansas City, Missouri, for appellee.
Before MELLOY, BEAM, and COLLOTON, Circuit Judges.
This case comes to us following a bench trial of Randall Koons' claims for ERISA-protected severance benefits under 29 U.S.C. § 1132(a)(1)(B) and for interference with his ability to attain such benefits under 29 U.S.C. § 1140. The trial court1 found for the defendants, the Aventis Integration Separation Plan for HMR Associates (the Plan) and Aventis Pharmaceuticals, Inc. (Aventis), on both claims and entered judgment accordingly. Koons appeals, claiming the trial court erred in finding that he was not entitled to severance benefits and that he was not terminated by Aventis with the intent to interfere with his ability to claim severance benefits. We have jurisdiction under 28 U.S.C. § 1291 and affirm.
Randall Koons had worked for Aventis and its predecessor companies since 1985. He was terminated on October 14, 2000, from his position as Head of U.S. Security. Aventis was in the midst of reorganizing its corporate structure and operations as part of a merger, which included moving Koons' Kansas City office to New Jersey. As part of the reorganization, it provided a severance plan2 to associates, including Koons, whom the move affected. After Koons' termination, Aventis refused to pay Koons any severance benefits. The reasons cited by Aventis for Koons' termination and its refusal to pay severance benefits under the Plan were violations of company policy that Koons committed in the months preceding the termination.
By all indications, Koons' performance had been generally positive until near the end of his employment. The record is replete with praise and favorable performance evaluations. In October 1999, Koons first learned that his Kansas City office was going to be moved to New Jersey. Because Koons did not want to relocate to New Jersey, he and Mark Shaw, his supervisor at the time, established his end date as December 31, 2000. Koons was made aware of the severance benefits that were available.
Jan Kneib and Kurt Waier worked in the security division of Aventis under Koons' supervision. Kneib was also unwilling to locate to New Jersey and established an end date of December 31, 2000. However, in March 2000, because the transition budget was running $14 million per month in the red, Shaw moved Kneib's end date up to April 30, 2000. Koons objected3 and voiced his concerns not only to Shaw, but also to () Jerry Belle, the President of North American Operations for Aventis. This upset Shaw, who felt Koons had departed from protocol and gone over his head. Notwithstanding Koons' objection, Shaw ended Kneib's employment on April 30, 2000. After her termination, Koons allowed Kneib to retain her company-paid cell phone. Waier remained in Aventis' employ.
In May 2000, Shaw hired Brian Keller as Koons' replacement. Keller's immediate supervisor was Shaw. After Keller was hired, Koons' responsibilities were limited to security at the soon-to-be-closed Kansas City site.
In June 2000, Keller met with Koons and urged Koons to retire because there was nothing left for him to do. Koons refused, but the two agreed on a new end date — November 15, 2000. Keller and Koons also agreed that Koons would work from home, rather than coming into the office. Keller sent a letter to Koons, dated July 17, 2000, memorializing this agreement and reminding Koons to contact Jerry Johnson, the Human Resources Manager, in early November regarding his severance pay. This letter also advised Koons that he should continue to be available through his company-paid cell phone. A memorandum sent from Human Resources to Koons one week later confirmed the changed end date and outlined Koons' anticipated severance benefits.
Through July and August, Koons worked from home and came into the office on a regular basis. Koons was pursuing a real-estate career while still on Aventis' payroll. Shaw, Johnson and Keller were all aware of this and approved. In August, Koons' charged 3,321 minutes to his cell phone despite the fact he was doing little Aventis work. Waier received the August invoice and noticed the high number of minutes attributed to Koons' phone and that Kneib was also using a company-issued phone post-termination. He forwarded the invoice to Keller, noting his observations. Around this time, Johnson also notified Keller of complaints he had received from individuals who had gotten notices in the mail of Koons' status as a real-estate agent. Koons had used a list of associate addresses, which Aventis had marked as confidential, to mail out these advertisements.
Keller contacted Shaw regarding Koons' cell-phone use when he received the invoice. He later went to see Shaw and told him of the Kneib situation, showing him the invoice. Shaw had also received a complaint from an employee who received one of Koons' mailings.
At some point, Johnson investigated the propriety of using cell phones for personal use within the security division. He contacted Steve Krohne, who was Koons' supervisor and the head of security until early 1999, and Waier. Each stated that the personal use of cell phones was permissible, so long as within reason. According to Johnson, he kept notes of the investigation on his computer and forwarded them to New Jersey in paper form. Aventis was unable to locate this document and the electronic media upon which it was stored was destroyed.
Keller and Johnson met with Koons in early October 2000 and questioned Koons about what they had discovered. Koons offered no explanation and contended that all of his actions were allowed under company policy.
Johnson, Keller, Shaw, and Kathleen Clever (Aventis' corporate counsel) met on October 9, 2000, and discussed the Koons situation. By all indications, those at the meeting understood that Koons would not be entitled to severance benefits if he was terminated. The decision to terminate Koons was made and his employment ended October 14, 2000, approximately one month before his November end date.
Aventis cited three instances of misconduct in a "service letter" to Koons explaining why he was terminated. This letter is required at the employee's request under Missouri law. See Mo.Rev.Stat. § 290.140 (West 1993). Koons later requested his severance benefits. Aventis responded in a letter from Clever stating that Aventis would not pay severance benefits given the circumstances of Koons' termination.
At trial, Aventis adduced evidence concerning the various policies that it thought Koons had violated. First, there was an unwritten policy concerning "reasonable" personal use of cell phones. And there was a written "Business Conduct Policy" which addressed the permissible use of Aventis' communications systems. The written policy stated, "While it is recognized that associates will occasionally use the systems for personal communications, it is expected that such exceptions will be kept to a minimum...." Aventis concluded Koons' personal cell-phone use violated these policies. And, by allowing Kneib to retain her cell phone and make excessive personal calls, Aventis concluded Koons had further violated company policy. Second, the Business Conduct Policy admonished employees to avoid conflicts of interest and stated "A conflict may exist if ...[y]ou use the Company's confidential information for your personal benefit." Aventis concluded Koons' use of the confidential associate address list violated this policy. Shaw also cited written policies concerning standards of business conduct and recordkeeping and data integrity, and an unwritten policy prohibiting acts of dishonesty or falsification, as having been violated by Koons' conduct.
The trial court found Koons had been terminated for violating company policy, which, under the terms of the Plan, made him ineligible for benefits. The trial court also concluded that Koons' termination for misconduct was a legitimate, nondiscriminatory reason for his discharge, and, because Koons had not shown that this reason was a pretext for an intent to interfere with Koons' severance benefits, his claim under 29 U.S.C. § 1140 also failed.
The trial court conducted a de novo review of Koons' claim for severance benefits. That standard of review is unchallenged here and we express no opinion on its use. After a bench trial in an ERISA case in which the trial court conducts a de novo review, we review the trial court's factfinding for clear error and its legal conclusions de novo. Donatelli v. Home Ins. Co., 992 F.2d 763, 765 (8th Cir.1993); Fed.R.Civ.P. 52(a).
Koons' entitlement to severance benefits turns on both questions of fact and of law. The trial court found that Koons was terminated for violating company policy. Under the terms of the Plan, as construed by the trial court, those who were terminated for violating company policy were ineligible for severance benefits. Koons challenges the trial court's finding that he violated company policy and its construction of the Plan's terms.
We review the trial court's interpretation of the Plan de novo. Melvin v. Yale Indus. Prods., Inc., 197 F.3d 944, 947 (8th Cir.1999). The Plan's description states:
A participant is eligible for a Separation Package if ... the participant's employment is terminated by the Company as a direct result of the elimination of his or her position due to the Company's reorganization and such termination is not a direct result of the associate's...
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