Koster v. Trans World
Case Date: 06/21/1999
Court: United States Court of Appeals
Docket No: 98-1757
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For the First Circuit ____________________ No. 98-1757 RICHARD KOSTER, Plaintiff, Appellee, v. TRANS WORLD AIRLINES, INC., Defendant, Appellant. ____________________ APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS [Hon. Joseph L. Tauro, U.S. District Judge] ____________________ Before Boudin, Circuit Judge, John R. Gibson, Senior Circuit Judge, and Lynch, Circuit Judge. _____________________ Joseph Baumgarten, with whom Proskauer, Rose, LLP, James R. DeGiacomo, Judith K. Wyman and Roche, Carens & DeGiacomo, P.C. were on brief, for appellant. Michael M. McArdle, with whom Earl D. Munroe and Munroe & McArdle were on brief, for appellee. ____________________ June 21, 1999 ____________________ JOHN R. GIBSON, Senior Circuit Judge. Trans World Airlines furloughed forty-seven year old Richard Koster as part of a 1994 work force reduction. Koster brought suit, invoking diversity jurisdiction, and a jury determined that TWA had engaged in illegal age discrimination under Massachusetts law, and awarded Koster $1,000,000 in damages. The district court doubled the damages pursuant to a Massachusetts statute and awarded prejudgment interest and attorneys' fees. TWA argues the district court erred in these latter rulings and (1) by denying its motion for a directed verdict and for judgment as a matter of law; (2) in the admission of evidence; and (3) by refusing a requested supplemental jury instruction. We affirm the jury's verdict and award of attorneys' fees, but reverse the award of damages and remand the case for further proceedings on the issue of damages. TWA hired Koster in 1965, and he initially worked at John F. Kennedy Airport in New York. He was reassigned to Logan Airport in Boston in 1977, and employed in various supervisory positions until his furlough in August 1994. Koster's last position was Supervisor, Ground Operations. He was responsible for Logan's garage, mail, air freight, dining, commissary and store areas. He earned $40,000 per year. TWA consistently promoted Koster and also asked him to take on special assignments when problems arose. Koster's performance evaluations consistently described him as an excellent employee. In response to TWA's financial difficulties over the last decade, TWA has instituted pay cuts, reductions in force, and restructurings. In August 1994, TWA's senior management asked Gordon Humpherys, the station manager for Logan Airport, to implement a reduction in force. Humpherys was responsible for TWA's entire station operations at Logan, and Koster reported directly to him. Specifically, TWA management told Humpherys to reduce six supervisor positions to four. At trial, Humpherys explained that the reduction in force would require the remaining four supervisors to do the work formerly done by six. Thus, his "foremost concern" was to retain those supervisors "who would provide the most productivity" and be best able to run the operation with a minimum of supervision and direction. Humpherys ultimately elected to keep Kathy Hobbs (age 44), Glenn Hutmire (age 56), Henry Sledz (age 49), and Robinanne Stancavage (age 25). He selected Koster (age 49) and Robert Spencer (age 48) for furlough. Under TWA's Policies and Procedures, a management employee selected for furlough remains eligible for recall for a five-year period. The employee may also elect to take a position equivalent to the last position he or she held before entering management. Koster was entitled to take a position as a transportation agent, which would have paid $26,000 per year. He elected, however, to take the furlough, hoping he would be recalled. Koster unsuccessfully applied for several openings at TWA, but in the spring of 1995, Koster elected early retirement in order to obtain his retirement benefits. Following his decision to retire, Koster opened up a Minuteman printing franchise. At the time of trial, Koster had yet to take a salary. Koster estimated his back-pay damages at $159,175, and total losses for future pay at $120,819. After the furlough, Koster suffered from anxiety and had trouble sleeping at night. He suffered from heartburn and had to take antacid pills on a regular basis. Koster filed suit against TWA alleging age discrimination in violation of the Massachusetts Fair Employment Practices Act, Mass. Gen. Laws ch. 151B, and breach of contract. The district court dismissed the contract claim at the close of Koster's evidence, and submitted the age claim to the jury. The jury returned a verdict for Koster, awarding $1,000,000. The court awarded $155,807.50 in attorneys' fees, prejudgment interest on all but the front-pay portion of the damage award, and an additional $1,000,000 pursuant to Mass. Gen. Laws ch. 151B, 9, finding that TWA acted with knowledge or reason to know that it violated the provisions of Mass. Gen. Laws ch. 151B, 4. TWA appeals. I. TWA first argues that the district court erred by denying its motion for judgment as a matter of law because Koster failed to: (1) establish a prima facie case of age discrimination; and (2)show that TWA's articulated non-discriminatory reasons for his furlough were pretextual. We review de novo the trial court's decision to deny a motion for judgment as a matter of law. We view the evidence in the light most favorable to Koster, drawing all reasonable inferences in his favor. See S |