Thompson v. Chrysler Corp., s. 76-1542
| Decision Date | 26 January 1978 |
| Docket Number | 76-1543,Nos. 76-1542,s. 76-1542 |
| Parties | 16 Fair Empl.Prac.Cas. 832, 15 Empl. Prac. Dec. P 8073, 1 Employee Benefits Ca 1545 Annie THOMPSON, on her own behalf and all others similarly situated, Plaintiff- Appellant, v. CHRYSLER CORPORATION and J. J. Ricardo et al., Defendants-Appellees (two cases). |
| Court | U.S. Court of Appeals — Sixth Circuit |
Judith D. Doran, Birmingham, Mich., for plaintiff-appellant.
Carin Ann Clauss, Associate Sol., U. S. Dept. of Labor, Jacob I. Karro, Washington, D. C., for amicus curiae.
Thomas G. Kienbaum, Dickinson, Wright, McKean, Cudlip & Moon, John A. Stevens, Detroit, Mich., for defendants-appellees.
Before EDWARDS, CELEBREZZE and LIVELY, Circuit Judges.
The narrow question in this consolidated appeal is whether Chrysler violated the Age Discrimination in Employment Act of 1967 (the Act), 29 U.S.C. §§ 621-634, and a comparable Michigan statute by requiring the plaintiff to retire before her 65th birthday.
The plaintiff Annie Thompson was involuntarily retired by Chrysler at age 55, after 31 years as an employee. This action was based on "special early" provisions of a pension agreement between Chrysler and the union which represented its employees. The relevant provision states that:
If an employee, who is over 55 years of age with 10 or more years pension credited service, suffers from a condition or disease which is deemed to be permanent and which partially disables that employee, and if that permanent partial disability results in excessive absenteeism, decreased production, and frequent application for and receipt of sickness and accident payments, then the employee may be retired "special early", in accordance with procedures which are hereafter set forth.
Ms. Thompson brought suit in the Circuit Court of Wayne County, Michigan, charging Chrysler with violation of the Michigan Fair Employment Practices Act (M.C.L.A. § 423.303). Discrimination on the basis of race and sex, as well as age, was alleged. The action was removed to the United States District Court for the Eastern District of Michigan. The claim of age discrimination was dismissed following a hearing on Chrysler's motion for partial summary judgment. Thompson v. Chrysler, 382 F.Supp. 1317 (1974). The district court determined that there was no reason for delay, thus permitting an appeal from its order. Rule 54(b), Fed.R.Civ.P.
Before appealing from the judgment in the removed action plaintiff filed a second action in the district court charging violation of the federal Act. In addition to denying discrimination as charged in the complaint Chrysler pled as an affirmative defense, "Plaintiff was retired pursuant to a bona fide pension plan which was not established as a subterfuge to evade the purposes of the law." This pleading put directly into issue the question of whether an involuntary retirement under the "special early" provisions of the pension agreement is exempt from the operative provisions of the Act by virtue of § 623(f)(2) which provides:
(f) It shall not be unlawful for an employer . . .
(2) to observe the terms of a bona fide seniority system or any bona fide employee benefit plan such as a retirement, pension, or insurance plan, which is not a subterfuge to evade the purposes of this chapter, except that no such employee benefit plan shall excuse the failure to hire any individual;
Both parties filed motions for summary judgment. Upon finding that plaintiff was retired pursuant to a bona fide pension plan which was not a subterfuge the district court granted summary judgment for Chrysler in the second action. Thompson v. Chrysler, 406 F.Supp. 1216 (1976).
The federal Act and the Michigan statute have many similarities, and the parties have directed most of their arguments to the federal Act. We will deal specifically only with the provisions of the federal Act since we conclude that a decision under that law will be dispositive as well of the claims asserted under the State statute.
The purpose of the Act is stated in § 621(b) as follows:
(b) It is therefore the purpose of this chapter to promote employment of older persons based on their ability rather than age; to prohibit arbitrary age discrimination in employment; to help employers and workers find ways of meeting problems arising from the impact of age on employment.
The scope of the Act, insofar as it affects employers, is stated in § 623(a)
(a) It shall be unlawful for an employer
(1) to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's age;
(2) to limit, segregate, or classify his employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's age; or
(3) to reduce the wage rate of any employee in order to comply with this chapter.
On appeal the plaintiff contends that the district court erroneously held that "nominal" rather than actual observance by Chrysler of the terms of the pension agreement was sufficient to render her termination legal. She argues that since age is clearly one requisite for "special early" retirement, Chrysler was required to show that the other requirements a condition or disease which is permanent and partially disabling, resulting in excessive absenteeism, decreased production and frequent application for and receipt of sickness payments actually existed.
Chrysler admitted that it never caused plaintiff to be examined by physicians to determine whether she actually suffered from a permanent and partially disabling disease or condition. However, among the exhibits filed with its affidavits in support of summary judgment, Chrysler included a number of statements from plaintiff's attending physician. These statements had been filed with plaintiff's applications for sickness and accident benefits between November 1971 and December 1973. In these reports the doctor stated that plaintiff was unable to work for various periods because of congestive heart failure, gouty arthritis and hypertensive heart disease. The last report contained the same description of plaintiff's problem as the one submitted two years earlier: congestive heart failure and hypertension. An affidavit also listed plaintiff's numerous absences during the three-year period immediately preceding her retirement, all accompanied by applications for sickness benefits. Plaintiff's work was characterized as "fair," and adequate "when present," but generally below normal. Following the procedures required by the pension agreement, after her selection for consideration for early retirement the plaintiff was interviewed by a...
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