Miller v. Beneficial Management Corp.

Decision Date18 October 1991
Docket NumberCiv. A. No. 89-3089 (AJL).
Citation776 F. Supp. 936
PartiesElizabeth G. MILLER, Plaintiff, v. BENEFICIAL MANAGEMENT CORPORATION, Beneficial Management Corporation of America and Beneficial Corporation, Defendants.
CourtU.S. District Court — District of New Jersey

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Aron M. Schwartz, Vogel, Chait, Schwartz and Collins, Morristown, N.J., for plaintiff.

S. Joseph Fortunato, Pitney, Hardin, Kipp & Szuch, Morristown, N.J., for defendants.

OPINION

LECHNER, District Judge.

This is an employment discrimination suit brought by plaintiff Elizabeth G. Miller ("Miller") against defendants Beneficial Management Corporation ("Beneficial Management"), Beneficial Management Corporation of America ("Beneficial of America") and Beneficial Corporation. ("Beneficial Corp.") (collectively, "Beneficial"). Jurisdiction is alleged pursuant to the Equal Pay Act, as amended, 29 U.S.C. § 216 et seq. ("EPA"), the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621, et seq. ("ADEA"); Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000, et seq. ("Title VII") and 28 U.S.C. § 1331.

Beneficial now moves for dismissal pursuant to Fed.R.Civ.P. 12(b) on the ground that Miller's claims are barred by the applicable statute of limitations. In addition, Beneficial moves for summary judgment pursuant to Fed.R.Civ.P. 56 on the ground there is no genuine issue of material fact regarding the alleged discrimination against Miller.1 Miller has filed a cross motion appealing three orders of Ronald J. Hedges, United States Magistrate Judge, to compel discovery.2 For the reasons set out below, the 12(b)(6) motion to dismiss is converted to a Rule 56 motion for summary judgment. The motion for summary judgment is granted. The cross-motion to compel discovery is denied.

Facts

Beneficial is incorporated in the State of Delaware and has its principal place of business in Peapack, New Jersey. Complaint, filed 20 July 1989 ("Complaint"), ¶ 2. Beneficial is in the business of providing management services. The Government Relations Department ("Government Relations") is involved in lobbying, organizing political action committees ("PACs") and collecting political contributions. Id., ¶ 3; Moving Brief, 6.

Miller graduated from law school in the Spring of 1980. Defs.' 12G Statement, ¶ 2. Prior to attending law school, Miller was employed as a teacher. Id. Miller's first job as an attorney occurred when she was hired by Beneficial Management on 2 September 1980. Defs.' 12G Statement, ¶ 2. Miller's resume indicated she was born in 1931; however, Miller was actually born in 1927 or 1928. 1st Ward Aff., Ex. 14. Miller held the starting position of Associate Counsel in the Legal Department of Beneficial. Id. As Associate Counsel, Miller's starting annual base salary was $25,000. Miller Aff., ¶ 1.

Miller's duties in the Legal Department included the following:

cross state lending; Canadian operations; bankruptcy; antitrust; loan production offices for Beneficial's national bank subsidiary; Equal Credit Opportunity Act audits; Truth-in-Lending audits; writing statutory amendments concerning state and federal insolvency and bankruptcy laws for the Government Relations Department; usuary laws; disclosure laws; credit insurance laws; business registration laws; consumer credit laws; interest rate regulation; small loan laws; installment sales laws; and fair credit laws.

Miller Aff., ¶ 2. During Miller's employment in the Legal Department she received the following compensation:

                               Year     Base Salary      Year-End Compensation
                               1980       $25,000               $1,000
                               1981       $27,000               $2,000
                               1982       $29,000               $3,000
                               1983       $31,000               $3,000
                

Id., ¶ 4. The above increases in annual base salary and additional year-end compensation were based on merit. Id.; Schwartz Certif., Ex. 11.

In the Legal Department, Miller reported to Charles Hance, Esq., Senior Vice President and General Counsel, Legal Department ("Hance"). Hance Aff., ¶ 2. In 1983 Hance prepared a formal review of Miller's performance in the Legal Department (the "1983 Bentrak"). Id., ¶ 4. Miller was ranked eighth out of eight attorneys who reported to Hance. Id., ¶ 3. The 1983 Bentrak gave Miller good remarks with respect to her organizational and planning skills, motivation, initiative and energy. Id., Ex. 2. The 1983 Bentrak, however, rated Miller's overall performance as below expectations. It noted a difficulty in providing practical advice satisfactory to senior personnel. Additionally, the 1983 Bentrak stated Miller's personal impact must be improved to be effective in her position. Id.

As an Associate Counsel in the Legal Department Miller became acquainted with David B. Ward, Senior-Vice President of Government Relations ("Ward"), Charles Walsh, Vice President and Counsel of Government Relations ("Walsh") and Kenneth Raatz, a corporate attorney in Government Relations ("Raatz"). Miller Aff., ¶ 6. Through her contact with these individuals, Miller learned about the function of Government Relations.

Government Relations develops and presents Beneficial's views relating to legislative and regulatory groups at the federal and state levels. Moving Brief, 6. In addition, Government Relations handles PACs and corporate sources. Ward Aff., ¶ 3. Employees in Government Relations must ensure the appropriate disclosure and filing requirements are followed with respect to lobbying and political contributions. Id., ¶ 4.

Walsh was hired by Beneficial on 30 October 1966. 1st Walsh Dep., 7. Walsh graduated law school in 1954 at which point he worked at a Philadelphia law firm for two years. Id., 4-5. In 1956 Walsh joined the Attorney General's Office in Pennsylvania as an associate counsel for the Insurance Commission. Id., 5. At the Attorney General's Office, Walsh was promoted to general counsel and subsequently deputy insurance commissioner for Pennsylvania. Id. Walsh's duties at the Attorney General's Office included reviewing proposed legislation which had an impact on insurance laws or industry, advising the governor's office and leaders of both political parties of the Attorney General's position on such legislation and conducting and adjudicating hearings involving the insurance industry. Id.

In 1963, Walsh left the Attorney General's Office and became the executive vice president of Reliable Insurance Company where he reported directly to the Chairman of the Board of Reliable Insurance Company. Id., 6. Around 1 May 1966, Walsh became deputy insurance commissioner for the Commonwealth of Kentucky. Id., 7. As deputy insurance commissioner in Kentucky, Walsh was involved in setting rates, policy filings and endorsements as well as conducting hearings and advising the insurance commissioner. Id. Walsh held the position as deputy insurance commissioner until 30 October 1966 when he accepted employment with Beneficial. Id.

Walsh began his employment at Beneficial as Director of Insurance Relations. Id. In that position, Walsh reviewed legislation and insurance offered by Beneficial and testified at hearings on legislation at the federal and state level. Id. In 1968 Walsh was promoted to Assistant Vice President, Beneficial Management.3Id., 8. In 1973 Walsh was asked to join the Legal Department of Beneficial Management as Assistant Vice President, Associate Counsel. Id., 10. Walsh also represented Beneficial in various trade associations and became the Chairman of the Board of the Consumer Credit Insurance Association.4Id., 9.

In the Legal Department, Walsh reported directly to Helmuth Miller, who was at that time the Vice President of Government Relations.5 Id., 10. In 1976 or 1977 Walsh was promoted to Vice President of Government Relations. Id. In this position, Walsh advised Helmuth Miller, consulted with other employees of the Government Relations on areas concerning legislation, reviewed laws relating to PACs, set up the Beneficial Political Action Committee ("Ben-Pac"), made decisions as to who should receive contributions from Ben-Pac and reviewed material disseminated by Beneficial for legal compliance. Id., 10-12.

In 1975 Raatz was hired as Associate Counsel in the Legal Department. Raatz was assigned to work for Helmuth Miller and Walsh in Government Relations where he assisted Walsh with the review of legislation. Id., 18.

In 1979 or 1980 Helmuth Miller retired and was replaced by Ward. Id., 17. Ward assumed Helmuth Miller's responsibilities as Senior Vice President. Ward did, however, become more involved and took over tasks that Helmuth Miller had allowed Walsh to handle. Id., 25. In addition, after Ward took over, Walsh had less contact with the Chairman of the Board. Id., 28. Walsh testified he had "less authority and independence" under Ward. Id., 29. As Walsh stated, by the time he left Beneficial "men who had been with the company for a period of time became more familiar with Mr. Ward and would call him on matters that they previously might have called me on." Id., 31.

Throughout Walsh's employment in Government Relations with Ward as his supervisor, his duties can be paraphrased to include the following: as secretary of Ben-Pac, preparing the forms necessary for contributions, filing reports required by the Federal Election Commission on a monthly or quarterly basis, preparing, for signature of the Chairman of the Board, letters to those employees eligible to participate in Ben-Pac, preparing and disseminating detailed itemizations of contributions, requisitioning checks signed by the Ben-Pac treasurer and determining who would receive contributions and the amounts of the contributions; with respect to corporate contributions, reviewing state laws to determine the legality of corporate contributions — to whom corporate contributions may be made, the dollar...

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