Shaheen v. B.F. Goodrich Co.
| Decision Date | 21 February 1989 |
| Docket Number | No. 88-3534,88-3534 |
| Citation | 873 F.2d 105 |
| Parties | 49 Fair Empl.Prac.Cas. 1060, 50 Empl. Prac. Dec. P 38,993, 10 Employee Benefits Ca 2706 Cecelia A. SHAHEEN, Plaintiff-Appellant, v. The B.F. GOODRICH CO., Defendant-Appellee. |
| Court | U.S. Court of Appeals — Sixth Circuit |
William R. Holland (argued), Akron, Ohio, for Cecelia A. Shaheen, plaintiff-appellant.
Norman S. Carr, Gary W. Spring (argued), and Roetzel & Andress, Akron, Ohio, for BF Goodrich Co. and Uniroyal-Goodrich Tire Co., defendants-appellees.
Before KENNEDY and JONES, Circuit Judges, and SILER, Chief District Judge. *
Plaintiff, Cecelia A. Shaheen, appeals the District Court's grant of summary judgment in favor of defendant-appellee, the B.F. Goodrich Company, in plaintiff's employment discrimination suit. The District Court found plaintiff's claims under the ADEA, an Ohio statute barring Age Discrimination, the Equal Pay Act, Title VII, and 42 U.S.C. Sec. 1981 barred by a release signed by plaintiff shortly after she left Goodrich's employ. Her claims under ERISA remain. Plaintiff maintains that waivers of employment-related discrimination claims are void as against public policy. She further asserts that the District Court erred in rendering judgment for Goodrich because a genuine issue of material fact remained as to the existence of consideration to support the release. We agree with the District Court that Goodrich was entitled to judgment as a matter of law. Accordingly, we affirm.
Plaintiff was a Goodrich employee from 1950 until 1985, when Goodrich terminated her as part of a reduction in force. Prior to plaintiff's termination, Goodrich informed plaintiff that as an employee eliminated pursuant to a reduction in force, she had the option of choosing between two severance pay plans: the Special Separation Supplement (SSS) or the Employee Assistance Program (EAP). Among other conditions, the SSS plan provided for a payment calculated according to the employee's length of service and salary, and required the employee to sign a release of all civil claims regarding the termination except those claims relating to unemployment, workers compensation and ERISA. The EAP allowed an employee to remain on Goodrich's salary rolls for several months while Goodrich provided assistance in helping the employee locate another position within the company. The EAP had no waiver requirement. Each of these severance plan options were offered in addition to pension benefits.
Initially, plaintiff had difficulty deciding which severance option she would choose. Goodrich gave plaintiff three months to make a decision, during which time plaintiff was enrolled in the EAP. In November of 1985, plaintiff selected the SSS option. Before signing a release of her rights, plaintiff consulted with an attorney as to whether she should accept the SSS option in exchange for a waiver of her rights. On November 27, 1985, plaintiff chose to sign a waiver and accordingly received her SSS payment of approximately $22,000.00 on that date. 1 In addition to its SSS payment, Goodrich paid plaintiff approximately $42,000.00 under the Goodrich pension plan in a lump sum pursuant to plaintiff's pension payment election.
Plaintiff subsequently filed a discrimination suit in the District Court. Goodrich contended that it was entitled to the judgment because plaintiff signed the SSS release agreeing to forego recourse to civil actions. Plaintiff attempted to avoid the effect of the release by arguing that the release was void because it lacked consideration and was against public policy. The District Court granted Goodrich's motion for summary judgment finding no bar to a release of this kind, and finding no lack of consideration because plaintiff accepted the SSS payment in exchange for her execution of the release. Plaintiff appealed.
Plaintiff first claims that the District Court erred in granting summary judgment for Goodrich because the release is invalid as against public policy. According to plaintiff, enforcement of such waivers will impermissibly infringe upon the ability of individuals to cooperate with governmental agencies in "enforcement of antidiscrimination and civil rights employment laws." We disagree.
Ordinarily, public policy does not prohibit an otherwise valid release from acting as a waiver of a federal statutory cause of action. See, e.g., Rogers v. General Elec. Co., 781 F.2d 452, 454 (5th Cir.1986). Accordingly, waivers of federal statutory rights have been upheld in numerous contexts. See, e.g., Town of Newton v. Rumery, 480 U.S. 386, 107 S.Ct. 1187, 94 L.Ed.2d 405 (1987) (section 1983 claim); EEOC v. Cosmair, Inc., 821 F.2d 1085, 1091 (5th Cir.1987) (Title VII claim); Runyan v. National Cash Register Corp., 787 F.2d 1039, 1045 (6th Cir.), cert. denied, 479 U.S. 850, 107 S.Ct. 178, 93 L.Ed.2d 114 (1986) (ADEA claim). In fact, public policy weighs in favor of allowing voluntary settlement of Title VII disputes and releases of private rights under the ADEA. See, e.g., Rogers, 781 F.2d at 454; Runyan, 787 F.2d at 1045. If " 'overreaching or exploitation is not inherent in the situation,' " Runyan, 787 F.2d at 1045 (quoting Schulte, Inc. v. Gangi, 328 U.S. 108, 121-22, 66 S.Ct. 925, 931-32, 90 L.Ed. 1114 (1946) (Frankfurter, J., dissenting)), we will examine waivers of employee rights under normal contract principles. Properly executed waivers of possible employment-related discrimination claims knowingly and voluntarily made between an employee and his employer will be enforced absent the typical exceptions for fraud, duress, lack of consideration or mutual mistake.
In the case at bar, plaintiff executed a valid waiver both knowingly and intelligently. Plaintiff was given three months to make her decision and during that time she consulted with an attorney. Plaintiff does not contend that fraud, duress, or mutual mistake surrounded the execution of the waiver and presents no evidence...
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