Huske v. Honeywell Intern., Inc.

298 F.Supp.2d 1222

Diane HUSKE, Plaintiff, v. HONEYWELL INTERNATIONAL INC., Defendant.

No. CIV.A.03-2003-KHV.

United States District Court, D. Kansas.

January 14, 2004.

Bradley Rob Finkeldei, Christopher F. Burger, Stevens & Brand, L.L.P., Lawrence, KS, for Plaintiff.

Nick Badgerow, Katherine Miller, Spencer, Fane, Britt & Browne, Overland Park, KS, for Defendant.

MEMORANDUM AND ORDER

VRATIL, District Judge.

Diane Huske brings claims under the Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 621 et seq., and Section 510 of the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. § 1140, against Honeywell International Inc. ("Honeywell"). The matter is before the Court on defendant's Motion For Summary Judgment (Doc. # 32) filed October 3, 2003. For reasons stated below, the Court sustains defendant's motion in part.

Summary Judgment Standards

Summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. Fed.R.Civ.P. 56(c); accord Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Vitkus v. Beatrice Co., 11 F.3d 1535, 1538-39 (10th Cir.1993). A factual dispute is "material" only if it "might affect the outcome of the suit under the governing law." Anderson, 477 U.S. at 248, 106 S.Ct. 2505. A "genuine" factual dispute requires more than a mere scintilla of evidence. Id. at 252, 106 S.Ct. 2505.

The moving party bears the initial burden of showing the absence of any genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Hicks v. City of Watonga, Okla., 942 F.2d 737, 743 (10th Cir.1991). Once the moving party meets its burden, the burden shifts to the nonmoving party to demonstrate that genuine issues remain for trial "as to those dispositive matters for which it carries the burden of proof." Applied Genetics Int'l, Inc. v. First Affiliated Secs., Inc., 912 F.2d 1238, 1241 (10th Cir.1990); see also Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Bacchus Indus., Inc. v. Arvin Indus., Inc., 939 F.2d 887, 891 (10th Cir.1991). The non-moving party may not rest on her pleadings but must set forth specific facts. Applied Genetics, 912 F.2d at 1241.

The Court must view the record in a light most favorable to the party opposing summary judgment. See Deepwater Invs., Ltd. v. Jackson Hole Ski Corp., 938 F.2d 1105, 1110 (10th Cir.1991). Summary judgment may be granted if the non-moving party's evidence is merely colorable or is not significantly probative. See Anderson, 477 U.S. at 250-51, 106 S.Ct. 2505. "In a response to a motion for summary judgment, a party cannot rely on ignorance of facts, on speculation, or on suspicion, and may not escape summary judgment in the mere hope that something will turn up at trial." Conaway v. Smith, 853 F.2d 789, 794 (10th Cir.1988). Essentially, the inquiry is "whether the evidence presents a sufficient disagreement to require submission to the jury or whether it is so one-sided that one party must prevail as a matter of law." Anderson, 477 U.S. at 251-52, 106 S.Ct. 2505.

Factual Background

The following facts are either undisputed or, where disputed, construed in the light most favorable to plaintiff.

Plaintiff worked for Honeywell from roughly December of 1971 to October 26, 2001. At the time of her termination, plaintiff worked as the Six Sigma Plus Process Improvement Lead at the so-called BRGA facility in Olathe, Kansas. Plaintiff was 47 years old at the time of her termination.

I. Honeywell Corporate American Express Cards

In the mid-1990s, plaintiff applied for and received a Honeywell Corporate American Express Travel and Expense credit card. Plaintiff was eligible to apply for the card solely because of her employment with Honeywell. Although the card was a corporate account, plaintiff applied for the card based on her own credit rating and she received a card holder agreement. American Express sent statements to plaintiff's home and plaintiff was responsible for paying all balances. The corporate card holder agreement stated that the holder agreed to use the card for business purposes in accordance with company policy and was responsible for all charges to the account. The agreement did not state the consequence of an employee's failure to pay those charges, but it stated that the employee must abide by company policies.

Honeywell's travel and expense policy was available to all employees on the company intranet. The policy stated that (1) cards could not be used for personal or vacation travel or other personal expenses, (2) the card holder was responsible for paying the bill in full each month,¹ and (3) employees could be subject to disciplinary action for violating the policy.² Notwithstanding this policy, plaintiff assumed that she could use her card for personal expenses.

Honeywell's Travel and Expense Office does not take enforcement action for corporate credit card policies. Each facility, including the BRGA facility, is responsible for enforcement. Before October 26, 2001, the BRGA facility had terminated at least one employee for misusing his corporate credit card. Specifically, on January 17, 2000, it had terminated Thomas Greeley for using his corporate credit card to purchase trips, clothes, toys, gas, food and other personal items. The BRGA facility also terminated Claude Peoples for misusing his corporate credit card.³

II. Plaintiff's Misuse Of The Card

As early as 1998, plaintiff used her card for personal purchases. By May of 2001, plaintiff had an outstanding balance of $1,641.21 for personal purchases in March and April of 2001 (including concert tickets and a vacation to Reno, Nevada). Plaintiff did not pay that bill because her husband was working only on and off and in June and July of 2001, his paychecks bounced. Plaintiff's father also died and plaintiff was providing financial support to her daughter, who was going through a divorce. By memorandum dated June 4, 2001, Honeywell notified plaintiff of the delinquency and suspended her travel privileges.⁴ After she received that memorandum, plaintiff mailed American Express a payment of $897.84. American Express received the payment on June 25, 2001, but plaintiff still owed $808.94 plus delinquency charges.

On October 8, 2001, Cheryl McQueen at Honeywell's Travel and Expense Office sent plaintiff an email which informed her that she had a seriously delinquent balance of $870.26 on her account. After receiving that email, plaintiff made a payment of $808.94, which American Express received on October 11, 2001. On October 14, 2001, American Express cancelled plaintiff's account. On October 16, 2001, McQueen informed plaintiff that she still owed $61.32 on her account. Plaintiff sent $61.32 to American Express, which received the payment on October 22, 2001.

On October 22, 2001, Dori Canady, Honeywell's human resources manager, and Dan Putney, plaintiff's supervisor, met with plaintiff to discuss her use of the card. Four days later, on October 26, 2001, Honeywell terminated plaintiff's employment.

III. Reduction In Force In November, 2001

In September of 2001, Honeywell notified the BRGA facility that it had to lay off 69 employees. In considering which employees to lay off, Honeywell identified which areas, based on future workload, it could reduce. It classified plaintiff and two other Six Sigma Plus Process Improvement Leads as a target group and decided to eliminate one position.⁵ Dori Canady Deposition at 11-12, Exhibit 2 to Plaintiff's Response To Defendant's Motion For Summary Judgment (Doc. # 35) filed October 20, 2003. Honeywell then looked at which individual to target for reduction. Generally, in deciding whose position to eliminate, Honeywell used a matrix which listed skills and abilities needed for a particular job; rated the employees within the target group based on their skills and abilities; and laid off the employee or employees with the lowest scores. Id. at 17. Other than the reference to this matrix, the record does not reveal the specific criteria that the BRGA facility used to target employees for the reduction in force ("RIF"). Nor does it explain how this process worked with regard to plaintiff's target group.

On a date which does not appear in the record, but before the meeting between plaintiff, Canady and Putney on October 22, Honeywell selected one of the leads in plaintiff's group—Evelyn Dennis—for the RIF.⁶ Honeywell did not select plaintiff for the RIF, but because it had terminated her, it only had to lay off 68 employees.⁷ Under Honeywell's severance pay plan, those 68 employees were eligible for severance benefits, including one week of pay for every year of employment plus accrued vacation pay. Only 67 of those employees received severance benefits.⁸ If Honeywell had eliminated plaintiff's job instead of firing her, she would have been eligible for severance benefits.

Even if Honeywell had targeted plaintiff for the RIF, it still would have fired her for credit card abuse.

Plaintiff claims that (1) Honeywell terminated her to avoid paying severance benefits, in violation of ERISA, and (2) Honeywell discriminated against her on the basis of age by terminating her employment, in violation of the ADEA. Pretrial Order (Doc. # 36) at 8-9. Honeywell argues that it is entitled summary judgment on both claims. Specifically, Honeywell argues that (1) plaintiff cannot establish a prima facie case under ERISA and even if she could, its decisions were legitimate and nondiscriminatory; and (2) plaintiff cannot establish a prima facie case of age discrimination. Plaintiff concedes that she cannot establish a prima facie case of age discrimination. Plaintiff's Response...