Ponzoni v. Kraft General Foods, Inc.

• Decision Date: 19 September 1991
• Docket Number: Civ. A. No. 90-3890.
• Citation: Ponzoni v. Kraft General Foods, Inc., 774 F.Supp. 299 (D. N.J. 1991)
• Parties: George B. PONZONI, Plaintiff, v. KRAFT GENERAL FOODS, INC., Defendant.
• Court: U.S. District Court — District of New Jersey

774 F. Supp. 299

George B. PONZONI, Plaintiff, v. KRAFT GENERAL FOODS, INC., Defendant.

Civ. A. No. 90-3890.

United States District Court, D. New Jersey.

September 19, 1991.

COPYRIGHT MATERIAL OMITTED

Clifford A. Herrington, Margulies, Wind, Herrington & Katz, Jersey City, N.J., for plaintiff.

Christopher H. Mills and Alan G. Lesnewich, Collier, Jacob & Sweet, Somerset, N.J., for defendant.

OPINION

LECHNER, District Judge.

This is an employment discrimination suit brought by plaintiff George B. Ponzoni ("Ponzoni") against defendant Kraft General Foods, Inc. ("Kraft"). Jurisdiction is alleged pursuant to the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 626, et seq. ("ADEA"), and 28 U.S.C. § 1331 and 1337.

Kraft now moves for summary judgment pursuant to Fed.R.Civ.P. 56 on the grounds that Ponzoni signed a valid and enforceable release and subsequently ratified the release by his conduct.¹ For the reasons set out below, summary judgment is granted.

Facts

Ponzoni was hired in December, 1954 by Maxwell House Coffee Company ("Maxwell House"), which is now a wholly-owned subsidiary of Kraft. Moving Brief, ¶ 1. During the term of his employment, Ponzoni served as a research scientist at various Maxwell House facilities involved in research and product development in the areas of food-product development, cryogenic technology, freeze drying and evaporation technology and logistics and technical applications. 1st Ponzoni Dep. 78:20-22; 2nd Ponzoni Dep. 19:5-10. As a result of Ponzoni's work, Kraft was awarded eleven patents. One patent application was pending at the time of his termination. 2nd Ponzoni Dep. 19:15-20:15.

On 31 March 1990, Ponzoni's employment at Kraft was terminated. At the time of Ponzoni's termination he was employed at the Maxwell House facility in Hoboken, New Jersey (the "Hoboken Facility"). Ponzoni Aff., ¶ 2. During the course of Ponzoni's employment with Kraft, he received a Bachelor's degree of science in chemistry, a Masters degree and Ph.D. in business administration. App. Vol. III, D-46-47, Lesnewich Aff., ¶ 9. In addition, Ponzoni is a member of professional organizations and the American Association of Retired Persons (the "AARP"). App. Vol. III, D-45; 1st Ponzoni Dep. 22:25-23:7.

Prior to June 1989, Ponzoni and other employees of Kraft became interested in issues regarding aging and the work force. In an attempt to learn about older employees' rights, Ponzoni contacted the AARP. The AARP referred Ponzoni to Kenneth I. Nowak, Esq. ("Nowak"), an attorney with a Newark, New Jersey law firm, because he is knowledgeable in the field of the rights of older employees. 1st Ponzoni Dep. 93-97.

Ponzoni first met with Nowak in June 1989. Ponzoni was a representative and Chairman of the Hoboken Facility's Committee of Aging. The purpose of the meeting was to discuss issues relating to an anticipated work force reduction at the Hoboken Facility. Id. 97:3-99:11. This meeting was primarily educational; Ponzoni was informed in general terms about rights under the ADEA and the New Jersey Law Against Discrimination (the "NJLAD"), N.J.S.A. 10:5-12 et seq.. Ponzoni also received from Nowak or from the AARP two pamphlets concerning legal rights as a senior citizen.²

Kraft Work Reduction Program

In late 1989, Kraft began to undergo a massive restructuring of its world-wide coffee research and development organizations. Ruff Aff., ¶ 3. As a result of the restructuring, Kraft formed two "centers of expertise" for all coffee research: the North American COE (the "NACOE") to be located in Tarrytown, New York and the European COE (the "ECOE") to be located in Banbury, England. Id. NACOE was designed to support the United States and Canadian coffee businesses as well as to conduct product research for all world-wide Kraft roast and ground coffee businesses. ECOE was designed to support the European market and take over research of soluble coffees. Id., ¶ 4.

NACOE was formed by consolidating two research groups based in Hoboken, New Jersey — The Maxwell House Coffee Technical Research group and the Kraft International research group. Id., ¶ 3. By consolidating these two groups, Kraft created greater efficiency by decreasing the number of employees performing the same managerial and administrative functions and by reducing the number of technical specialists and levels of technicians. Id., ¶ 5.

In late 1989, as a result of the restructuring plans, Kraft began plans to implement a work force reduction program (the "WRP"). Id., ¶ 6. Although Kraft lacked a standard plan regarding reductions in the work force, it was the practice of Kraft to adopt a program as each occasion required. Helm Aff., ¶ 10. Despite slight variations in the wording and terms, every WRP had a two-phase implementation of voluntary and involuntary terminations. In addition every WRP offered an enhanced severance pay package to those terminated employees who executed a release waiving the right to raise any claims against Kraft. The WRP offered to the Hoboken Facility employees in February 1990 was implemented under the foregoing two phases.

On 20 February 1990, then Director of Research of the Hoboken facility, John Ruff ("Ruff") distributed an all-employee bulletin (the "20 February Bulletin") informing employees of the Kraft reorganization, the reasons for the reduction in work force and an indication of the support Kraft would offer. Ruff Aff., ¶ 7. The Bulletin stated, in pertinent part:

The consolidation is part of a restructuring of our worldwide coffee research which we recommended following extensive study by a team of research managers from around the world.

* * * * * *

Most of the research jobs at Hoboken will be transferred to Tarrytown, with relocation assistance available to eligible employees. About 20 jobs will be discontinued. We will attempt to achieve the reduction with voluntary retirements. Anyone whose employment is terminated will be provided with a broad array of support including job-hunting assistance, various counseling programs and severance payments.

20 February Bulletin.

On that same date, Ruff and Dr. Paul Jackson, Group Director of the Kraft International research group, held a meeting with affected employees. (the "20 February Meeting") Ruff Aff., ¶ 8. During the 20 February Meeting, Ruff explained the reasons for the restructuring and the effect on the Hoboken facility employees. In addition, he explained the two-phase voluntary and possibly involuntary WRP. Id. He stated that employees at least fifty years old with a minimum of ten years of service (the "50/10 Employees") could voluntarily terminate their employment and be eligible for enhanced severance pay benefits. Id. Ruff stated the 50/10 Employees would receive a package setting forth the details of the WRP immediately after the meeting. Id.

Ruff instructed the affected employees that they must inform payroll of their decision to participate in the voluntary phase no later than 8 March 1990. Id. Lastly, Ruff stated Kraft would make its decisions to offer new employment positions and whether to invoke the involuntary phase during the week of 12 March 1990. Id. At the close of the meeting, Ruff distributed the packages along with individualized letters to the 50/10 Employees. Id., ¶ 9.

It is uncontroverted that Ponzoni received and read the 20 February Bulletin, 1st Ponzoni Dep. 50:18-20, attended the 20 February Meeting and received the 20 February package.³ The package Ponzoni received contained a cover letter from Henry Helm, Human Resources Director-Eastern Region, to George Ponzoni (the "20 February Letter"). Ponzoni contends he did not read the 20 February letter at the time of receipt it; he merely glanced at it. Ponzoni Aff., ¶ 4. The 20 February Letter invited the addressee to participate in the voluntary phase of the WRP. The 20 February Letter outlined the details of the WRP, including the types of enhanced severance benefits available, time restrictions and the requirement for employees to sign a release to be eligible for the enhanced severance pay program. 20 February Letter.⁴

In addition, the package contained information on insurance, tax matters, pension benefits, special separation pay and a "Release of Claims/Designation of Beneficiary" form (the "Release").⁵ Helm Aff., ¶¶ 8-9; App.Vol. III, D-7A-7T. The Release provided that the signatory relinquished all rights to raise any claims or demands that he or she may have against Kraft for any known or unknown, past, present or future acts or inactions of Kraft. Release. Such claims explicitly included ADEA claims and civil rights claims on whatever statutory basis against Kraft.⁶ Release.

Ponzoni stated that after attending the meeting and receiving the package he had no intention of participating in the voluntary phase of the WRP. Ponzoni Aff., ¶ 4. Because of lack of interest in the voluntary termination phase, Ponzoni contends he only "looked at but did not review carefully" the 20 February Letter or package or any previous enhanced severance program. Id.; 2nd Ponzoni Dep. 43:17-44:7.

On or about 8 March 1990, Ponzoni met with Nowak⁷ allegedly to discuss possible employment discrimination claims (the "8 March Meeting"). Ponzoni Aff., ¶ 5. Nowak testified at his deposition that prior to the 8 March Meeting, Ponzoni telephoned him and "indicated that, in fact, some of the concerns that had been raised several months before were, in fact, occurring." Nowak Dep. 21:20-23. Kraft argues, therefore, based on the deposition of Nowak and timing of the meeting, that Ponzoni met to discuss the ramifications of the Kraft reorganization. Moving Brief, ¶¶ 10-12.

It is unclear whether releases were discussed at the 8 March Meeting. Although Ponzoni does not recall discussing or receiving advice on releases during his meeting with Nowak, Ponzoni Aff., ¶ 6, he does not deny this. Nowak acknowledged that he had seen the 20 February Letter during the 8...