Shawver v. RH Macy & Co., Inc.

• Decision Date: 19 October 1988
• Docket Number: 87-0554-CV-W-3-JWO and 87-1046-CV-W-JWO.,No. 87-0536-CV-W-JWO,87-0536-CV-W-JWO
• Citation: 697 F. Supp. 1515
• Parties: Maureen H. SHAWVER, et al., Plaintiffs, v. R.H. MACY & CO., INC., et al., Defendants. Carol L. HARPER, et al., Plaintiffs, v. R.H. MACY & COMPANY, INC., et al., Defendants. Billie GRADY, et al., Plaintiffs, v. DILLARD DEPARTMENT STORES, INC., et al., Defendants.
• Court: U.S. District Court — Western District of Missouri

697 F. Supp. 1515

Maureen H. SHAWVER, et al., Plaintiffs, v. R.H. MACY & CO., INC., et al., Defendants.

Carol L. HARPER, et al., Plaintiffs, v. R.H. MACY & COMPANY, INC., et al., Defendants.

Billie GRADY, et al., Plaintiffs, v. DILLARD DEPARTMENT STORES, INC., et al., Defendants.

Nos. 87-0536-CV-W-JWO, 87-0554-CV-W-3-JWO and 87-1046-CV-W-JWO.

United States District Court, W.D. Missouri, W.D.

October 19, 1988.

Herbert M. Rope, Edward J. Reitzes, Herbert M. Rope, P.C., Kansas City, Mo., for Shawver, et al.

Robert Ernest Gould, Thomas C. Simon, Gould and Moore, Kansas City, Mo., for Harper, et al.

Larry Delano Coleman, Kansas City, Mo., for Grady, et al.

E.J. Holland, Jr., Spencer, Fane, Britt & Browne, Kansas City, Mo., for defendants.

MEMORANDUM AND ORDERS ON MOTIONS FOR SUMMARY JUDGMENT

JOHN W. OLIVER, Senior District Judge.

I

The above-captioned cases pend on separate cross-motions for summary judgment limited to severance pay issues under the Employee Retirement Income Security Act of 1974 (ERISA) as amended, 29 U.S.C. § 1001, et seq.

Pursuant to discussion at a pre-trial conference held December 14, 1987, the parties in all three cases agreed, and the Court approved, that the severance pay issues would be separated for decision under Rule 42(b) of the Federal Rules of Civil Procedure. An order to that effect was issued March 16, 1988 and a schedule for the presentation of the ERISA claims to this Court for resolution was established. The three cases are:

(1) Maureen H. Shawver, et al., v. R.H. Macy & Co., et al (Shawver):

This case involves twenty-two plaintiffs who were employed by Macy's until February or March 1986. All plaintiffs except perhaps one were offered immediate employment by Dillard's Independence Center store until April 4, 1986, when that store was closed and all plaintiffs were terminated from their employment with Dillard's. All except three plaintiffs were subsequently employed by Jones when that company purchased the Dillard's Independence Center store in April 1986. Jones subsequently reopened that store in August 1986. Only three of the twenty-two plaintiffs fully exhausted their administrative remedies.

(2) Carol L. Harper, et al., v. R.H. Macy & Co., et al (Harper):

This case involves two plaintiffs who were employed by Macy's prior to March 3, 1986 at which time they began working for Dillard's. Both plaintiffs subsequently resigned from Dillard's after having worked for Dillard's for less than one month.

(3) Billie Grady, et al., v. Dillard Department Stores, Inc., et al (Grady):

This case involves three plaintiffs employed by Macy's until March 2, 1986 who were immediately employed by Dillard's. All plaintiffs were terminated from Dillard's employment when a corporate decision led to the elimination of their positions. This decision occurred 15-16 months after leaving Macy's employment.

II STIPULATED FACTS

All parties in all three cases have stipulated to the following relevant facts:¹ (1) by no later than January 21, 1986, R.H. Macy & Co., Inc. (Macy's) made a public announcement of the transfer of ownership of certain Macy's stores to Dillard Department Stores, Inc. (Dillard's); (2) on January 20, 1986 Macy's and Dillard's finalized and executed a written agreement memorializing the agreement they had reached for the sale and transfer of the properties involved. A copy of that agreement was filed under seal with the Court. (3) Ownership of certain Macy's stores including the Mission, Kansas store, the Independence Center store, the Landing store, and the Indian Springs store was transferred to Dillard's effective March 3, 1986; (4) Macy's maintained a Severance Allowance Plan (Plan)² which was in effect on March 2, 1986; (5) the Plan was administered by Macy's; (6) the Plan provided that active full-time and part-time employees of Macy's were covered by the Plan after completion of one-year continuous service; (7) all plaintiffs were active full-time or part-time employees on March 2, 1986 who had completed at least one-year continuous service; (8) none of the plaintiffs received the Severance Allowance; and (8) certain other employees covered by the Plan did receive the Severance Allowance.

Additional facts were either separately stipulated or are undisputed in each of the three cases.

A. Shawver

The following additional facts are undisputed by the parties in Shawver:

1. Each plaintiff was employed continuously by Macy's for at least one year prior to March 3, 1986. Parties cannot agree upon specific dates of employment. In the event of finding for the plaintiff on Count I, evidence may be required. Stip. ¶ 4.

2. All plaintiffs were last paid by Macy's for work periods ending either February 28, 1986 or March 2, 1986. Stip. ¶ 6.

3. All plaintiffs with the possible exception of L. Schroeder remained at or were transferred to the store at Independence Center and were there employed by Dillard's. L. Schroeder alleges she was not offered employment at the Independence Center store after March 3, 1986 but defendants were unable to verify that at the time of filing of this stipulation. Stip. ¶ 7.³

4. The following named former employees of Macy's (not plaintiffs herein) received severance allowance or an amount equivalent to what severance allowance would have been:

a. Dorothy Davis and Margaret Fraundorfer did not continue employment with either Macy's or Dillard's following the closing of the Macy's downtown store and the sale of the Macy's store at Independence Center. Ms. Davis and Ms. Fraundorfer elected to receive the pension benefits to which they were entitled.

b. The positions held by Dorothy Dodson and Norma Johnson in the Macy's Midwest Division were eliminated in an amalgamation which occurred in early 1985. Ms. Dodson and Ms. Johnson in 1985 elected to receive the retirement benefits to which they were entitled.

c. On or about February 28, 1986 Majorie Moyer was entitled to receive retirement benefits from R.H. Macy & Co., Inc.'s retirement program and elected to do so. Following the close of Macy's downtown store and the sale of the Macy's store at Independence, Ms. Moyer continued employment at the Dillard's store in Independence Center. When the Dillard's store at Independence Center was sold to The Jones Store Company, Jones did not offer employment to Ms. Moyer. Subsequently R.H. Macy & Co., Inc., voluntarily paid an amount to Ms. Moyer equivalent to what severance allowance would have been. Stip. ¶ 8.

5. Dillard's operated the Independence Center store until about April 4, 1986 at which time the Independence Center store was closed and all plaintiffs were terminated from Dillard's employment. Macy's name continued to appear on the side of the building. Stip. ¶ 9.

6. The Independence Center store was subsequently transferred to Jones Store Company (Jones). Stip. ¶ 10.

7. All plaintiffs with the possible exceptions of D. Rohrbach and L. Schroeder were invited by Jones on about April 1, 1986 to apply for employment with Jones to commence upon the store's reopening in August 1986. Stip. ¶ 11.

8. All plaintiffs with the possible exceptions of M. Krohn, D. Rohrbach, and L. Schroeder were subsequently employed by Jones.⁴ Stip. ¶ 12.

9. The following plaintiffs submitted to Macy's claims for severance allowance which were denied:

Maureen H. Shawver Nora Daugherty Prentice J. Hildebrand Linda M. Cain Patricia Harris Gloria F. Ramirez Donna Ritter.

Stip. ¶ 17.

10. The following plaintiffs did not submit a claim for severance allowance:

Marilyn J. Barbour Bonnie Beth Maxinne Briggs Anne C. Gooch Ila June Hayes Jeanette R. Holbert Marsha R. Holderness Patricia A. Kratz Marilyn Krohn G. Maxine Moenkhoff Eleanor L. Ninemire Dale Prewitt Donna S. Rohrbach Linda Schroeder

Stip. ¶ 18.

11. The following plaintiffs submitted to Macy's written requests for review of denial of severance allowance which were denied: Thus the following plaintiffs are the only Shawver plaintiffs who have fully exhausted their administrative remedies.

Nora Daugherty Patricia Harris Donna Ritter.

Stip. ¶ 19.

12. The following plaintiffs did not submit a written request for review of denial of severance allowance:

Maureen H. Shawver Linda M. Cain Prentice J. Hildebrand Marilyn J. Barbour Bonnie Beth Maxinne Briggs Anne C. Gooch Ila June Hayes Jeanette R. Holbert Marsha R. Holderness Patricia A. Kratz Marilyn Krohn G. Maxine Moenkhoff Eleanor L. Ninemire Dale Prewitt Gloria Ramirez Donna S. Rohrbach Linda Schroeder.

Stip. ¶ 20.

13. Macy's voluntarily paid an amount equivalent to what the Severance Allowance would have been to any employee who was not offered employment by Jones following the transfer of ownership of the Independence Center store to Jones. Stip. ¶ 21.

14. A list of employees covered by the Macy's Midwest Severance Plan receiving severance allowance or an amount equivalent to severance allowance following the transfer of Macy's stores in the Kansas/Missouri area to Dillards was attached as Exhibit D. Stip. ¶ 22. Exh. D includes the names of 194 employees.

B. Harper

The following facts are undisputed by the two plaintiffs Carol Harper and Jerre Sardou, and the defendants.

1. C. Harper and J. Sordou were employed continuously by Macy's for five years or more prior to March 3, 1986. Stip. ¶ 4.

2. C. Harper resigned from Dillard's employment on March 22, 1986. Plaintiff Sardou resigned March 28, 1986. Stip. ¶ 7.

3. Both plaintiffs submitted to Macy's a claim for Severance Allowance and a written request for review of the subsequent denial by Macy's. Stip. ¶¶ 11, 12.

4. Employees at the Independence Center who were offered employment by Dillard's but were not offered employment by Jones after the Independence Center store was sold by Dillard's to Jones were paid an amount equal to what their severance pay would have been if they had not been offered employment by Dillard's. Stip. ¶ 16.

5. Immediately prior to and until March 2, 1986, pl...