Powell v. Bob Downes Chrysler-Plymouth, Inc.

• Decision Date: 15 April 1994
• Docket Number: No. 90-226 C (2).,90-226 C (2).
• Citation: 865 F. Supp. 1340
• Parties: Barry W. POWELL, Plaintiff, v. BOB DOWNES CHRYSLER-PLYMOUTH, INC., Defendant.
• Court: U.S. District Court — Eastern District of Missouri

865 F. Supp. 1340

Barry W. POWELL, Plaintiff, v. BOB DOWNES CHRYSLER-PLYMOUTH, INC., Defendant.

No. 90-226 C (2).

United States District Court, E.D. Missouri, Eastern Division.

April 15, 1994.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Demester K. Holland, St. Louis, MO, for Barry W. Powell.

James N. Foster, Jr., Partner, John B. Renick, Associate, McMahon and Berger, St. Louis, MO, for Bob Downes Chrysler-Plymouth, Inc.

John P. Jacoby, John S. Sandberg, Sandberg and Phoenix, St. Louis, MO, for Group Health Plan, Inc.

MEMORANDUM

FILIPPINE, Chief Judge.

This matter is before the Court for a decision on the merits of plaintiff Barry W. Powell's employment discrimination claim against defendant Bob Downes Chrysler-Plymouth, Inc. ("Bob Downes") after trial to the Court.¹ The parties have filed post-trial briefs and responses thereto. The Court adopts this memorandum opinion as its findings of facts and conclusions of law, pursuant to Federal Rule of Civil Procedure 52.

In Count I of the second amended complaint, plaintiff seeks monetary relief for defendant's alleged violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq. ("Title VII").² Specifically, plaintiff contends that in discharging plaintiff from his position as a car salesperson on April 26, 1989, defendant discriminated against plaintiff on the basis of his religion (Judaism). Defendant argues that the discharge was based upon legitimate, non-discriminatory reasons due to plaintiff's performance and conduct; and the discharge would have occurred regardless of plaintiff's religion. The parties stipulated that (a) a total of $30,000.00 in backpay was owed plaintiff if liability was found against defendant and in favor of plaintiff; and (b) interest and attorney's fees need to be considered if defendant is found liable with respect to the sole remaining claim. The parties further agreed to resolve any question regarding attorney's fees after the Court determines the merits of the Title VII claim.

Mr. Robert Downes ("Robert") operated defendant Bob Downes car dealership in St. Charles, Missouri, from 1980 until June, 1992. He was the sole owner of the dealership although his wife, Kathy Downes ("Kathy"), may have co-signed the loan and contributed some of the cash needed to purchase the dealership.

Plaintiff Barry W. Powell was employed by defendant Bob Downes in March, 1988, to sell new and used cars. Plaintiff had been a car salesperson for more than ten years, at five car dealerships, before he began working for defendant. During his tenure at Bob Downes, plaintiff was one of the top salespersons. Robert discharged plaintiff on April 26, 1989.

During the period relevant to this case, the dealership had between thirty and thirty-five employees, including department managers for each of five departments. Three of the five departments were: administrative, new car sales, and used car sales. Robert Rich was manager of the new car sales department during plaintiff's tenure at the dealership;³ Kathy was responsible for the administrative department; and other individuals managed the remaining departments. Each manager, including Kathy, reported to Robert and was responsible for the profits and losses of the relevant department. Hiring, firing, and scheduling of personnel for a particular department were the responsibility of the manager of that department, subject to Robert's final decisionmaking authority.

Robert and Kathy shared an office at the dealership, but did not discuss dealership operations and personnel matters except with respect to the administrative department. Opinions expressed or comments made by Kathy with respect to operations or personnel of other departments at the dealership were considered by Robert to the same extent as any other employee's commentary about operations and personnel outside of the employee's department. In making decisions regarding the operations of and personnel at the dealership, Robert relied on the department managers as well as his personal observations and experiences.

Kathy engaged in numerous conversations with personnel at the dealership. Some of these conversations included the exchange of jokes and commentary pertaining to the Jewish religion and those who follow that religion. From these exchanges, Kathy understood that Rich and plaintiff were Jewish. Robert, who did not participate in these exchanges, knew Rich was Jewish but did not know plaintiff was Jewish.⁴

As new car sales manager, Rich hired several car salespersons, including: plaintiff, Ken McArthy, Steven Comensky, Corbett Mark McNail, Bruce Baum, Stuart Ziglin, and Joe Avenoli.⁵ Rich, plaintiff, Comensky, Baum, and Ziglin are Jewish. The record does not persuasively indicate that anyone else at the dealership during the relevant time period was Jewish.

High turnover in personnel at car dealerships is not unusual. During plaintiff's tenure, several employees left defendant. McArthy, Baum, and Ziglin left the dealership on their own accord. Robert terminated Rich just prior to plaintiff's discharge on April 26, 1989, reportedly due to Robert's perception that Rich had acted disloyally by not supporting Robert during and after a staff meeting that day. Additionally, Comensky was discharged several hours after plaintiff's discharge, due to Comensky's low sales record.

Some new car sales transactions include a "trade-in" where the customer trades in the customer's present vehicle for part of the actual price of the new vehicle. Appraisals⁶ of trade-in vehicles are usually provided by the used car manager at a car dealership. If that manager is unavailable to appraise a vehicle, another dealership manager, for instance, a general manager or a new car sales manager, is usually authorized to appraise trade-in vehicles. The appraisal amount is generally the amount given as the trade-in value for the customer's vehicle.

New car salespersons are paid by commission, rather than by salary. The commission is affected by the value given for a customer's trade-in vehicle. If the salesperson gives the customer the ACV as the value for the trade-in vehicle, then the salesperson gets the commission provided by the formula used at the dealership. If the salesperson gives the customer a trade-in value greater than the ACV for the trade-in vehicle, the amount above the ACV is deducted from the profit on which the salesperson's commission is based. If the salesperson gives the customer a trade-in value less than the ACV for the trade-in vehicle, the salesperson's commission is based on the usual profit plus the difference between the ACV and the amount actually given to the customer as trade-in.

If the trade-in value is too low, then the customer may complete the sales transaction at a different dealership. The higher the trade-in value, the greater the likelihood the sales transaction will be completed,⁷ because the customer pays less cash toward the sale price of the new vehicle. A higher trade-in value may, however, adversely affect the financial status of the used car department of the dealership. If the trade-in value is too high, that department may suffer a loss if the trade-in vehicle is not sold at retail and must be sold at wholesale for an amount less that the trade-in value given for the vehicle.

Therefore, it is not unusual for a new car sales manager or a new car salesperson to discuss an appraisal of a trade-in vehicle with the manager providing the appraisal. The new car sales department will attempt to obtain a high trade-in value and therefore a high appraisal, whereas the used car sales department will endeavor to keep the trade-in value at the ACV level. During these discussions the new car salesperson may endeavor to increase the appraisal by reporting on information about the customer's car that is not readily available to the appraiser through the usual means of ascertaining the ACV. For instance, the new car salesperson may learn of and relay information that the vehicle was kept in a garage rather than outside or that the vehicle was used by only one owner.

In February, 1989, Robert Chitwood became the used car sales manager at Bob Downes.⁸ Prior to this position he had been the new car sales manager at another St. Louis area car dealership. Chitwood was discharged by Robert in August, 1989, and is now working for another St. Louis area car dealership.

In addressing appraisals of trade-in vehicles, Chitwood consistently experienced difficulties with plaintiff and another salesperson, Ken McArthy.⁹ On several occasions, these salespersons sought trade-in vehicle appraisals from Rich instead of from Chitwood. When this resulted in an appraisal of a trade-in vehicle in an amount greater than the appraisal amount given by Chitwood for the same vehicle, this caused problems for Chitwood. Bypassing Chitwood for higher appraisals undermined Chitwood's authority, and the increased appraisals could adversely affect the bottom line for the used car sales department. On several occasions Chitwood discussed with Robert the appraisal disputes he had with plaintiff and Rich.

On the morning of April 26, 1989, Chitwood reported to Robert that two of his appraisals on April 25, 1989, had been increased by Rich. One involved a trade-in vehicle on a sale completed by plaintiff and resulted in an appraisal $500.00 greater than the amount given by Chitwood.¹⁰ Robert responded that no one had been authorized to change Chitwood's appraisals and that he would have a meeting with the sales staff to clarify Chitwood's responsibility for used car appraisals. Additionally, plaintiff's commission on that sale was reduced to reflect the lower appraisal provided by Chitwood.

During the sales staff meeting later that day, Robert reiterated his policy that no one had authority to change Chitwood's appraisals. Plaintiff was angered by the possibility a sales commission could...