Vesprini v. Shaw Contract Flooring Services, Inc.

          United States Court of Appeals
                       For the First Circuit

No. 02-1693

                          ARMANDO VESPRINI,
                        Plaintiff, Appellant,

                                 v.

               SHAW CONTRACT FLOORING SERVICES, INC.,
                     AND SHAW INDUSTRIES, INC.,
                       Defendants, Appellees.




          APPEAL FROM THE UNITED STATES DISTRICT COURT

                 FOR THE DISTRICT OF MASSACHUSETTS

              [Hon. Nancy Gertner, U.S. District Judge]



                               Before

                        Lynch, Circuit Judge,

                     Cyr, Senior Circuit Judge,

                      and Lipez, Circuit Judge.




     Richard L. Yospin for appellant.
     Allison K. Romantz, with whom Robert P. Joy, Maura D.
McLaughlin, and Morgan, Brown & Joy, LLP, were on brief for
appellees.




                         December 30, 2002
               CYR, Senior Circuit Judge.               Appellant Armando Vesprini

challenges various summary judgment rulings which led to the

dismissal       of    his    age-discrimination,            breach-of-contract,          and

constructive-discharge claims against his former employers, Shaw

Contract Flooring Services, Inc. ("SCFSI") and Shaw Industries,

Inc. ("Shaw").

                                             I

                                     BACKGROUND

               Circle    Floors,     Inc.,       a    Massachusetts-based         flooring

retailer and installer, was founded by Vesprini in 1960.1                         In April

1997, after serving as its president for thirty-seven years, the

seventy-one-year-old Vesprini, as well as his son Michael, sold

their     Circle      Floors,      Inc.    stock       to   Shaw,     a    Georgia-based

corporation.          In addition, Vesprini entered into a three-year

contract to remain on as the president of Circle Floors.                          At about

the     same    time,       Shaw   acquired          Continental    Carpets,       another

Massachusetts flooring company, which directly competed with Circle

Floors.

               A few months later, in October 1997, Vesprini executed a

"Standards       of     Ethical     Conduct          Agreement."          The    agreement

specifically         prescribed     that     Vesprini's        "use       of    vulgar    or


      1
      Summary judgment rulings are reviewed de novo, after
assessing all the competent evidence and its attendant reasonable
inferences in the light most favorable to the nonmoving party,
viz., Vesprini. Gonzalez v. El Dia, Inc., 304 F.3d 63, 68 (1st
Cir. 2002).

                                             2
unprofessional language on company premises or at any time while

engaged in the performance of company duties [was to be] strictly

prohibited," and that "failure to abide by this Agreement may be

grounds for . . . termination . . . without any further notice and

without any requirement of progressive discipline."

           Thereafter, Shaw hired forty-one-year-old Scott Mahan to

investigate whether Circle Floors and Continental Carpets were

continuing to compete for the same clientele. In due course, Mahan

reported that there remained a significant overlap.                Whereupon,

after consulting with Vesprini, Shaw decided to consolidate its

Massachusetts operations, including Circle Floors and Continental

Carpets, into a single corporate entity (viz., "SCFSI").               Scott

Mahan was named as its president.

           Vesprini suspected that Shaw was replacing him as the

Circle Floors president, due to his age.        Additionally, Vesprini's

immediate supervisor, Jay Houston, advised Vesprini that he was

"not going to be [with Shaw] much longer," that the time had come

to "step back and let the young stallions run the [day-to-day]

business," but that Vesprini nevertheless would serve as Circle

Floors' "chief executive officer" and as a "mentor" to both Mahan

and Vesprini's son, Michael.

           Shortly   thereafter,    upon   being    pressed   by   Vesprini,

Houston gave Vesprini assurances that he remained "the boss."             In

reliance   upon   the   Houston    assurance,      Vesprini   withheld   any


                                    3
objection to Mahan's appointment as the president of SCFSI, because

he believed that he was to retain the ultimate decisionmaking

authority as to all business decisions relating to the "Circle

Floors" division of SCFSI.

            By December 1997, however, after Vesprini had come to the

realization that Mahan had taken over virtually all the day-to-day

operations    of   the   merged   companies,   Vesprini    transmitted   a

memorandum to Mahan requesting that he be copied on all important

correspondence.    Mahan simply ignored the request.       Instead, Mahan

informed Vesprini:       "[Y]ou don't know how to run the business."

and "[You are not] going to be here much longer."         Mahan added that

Vesprini should go play golf in Florida. Finally, Mahan maintained

that Houston was not telling the truth when he gave the assurance

that Vesprini would remain the "boss."

             At a January 1998 meeting, Hal Long, Shaw's executive

vice president, unequivocally advised Vesprini that Mahan was now

his boss.      Vesprini in turn advised Long that he intended to

consult an attorney.        In a follow-up letter, Houston informed

Vesprini that Shaw intended to "relieve[] [Vesprini] of some of the

more mundane operational responsibilities [in order that] [Vesprini

would] have the time to become a needed mentor to both Scott

[Mahan] and Michael [Vesprini]."

             SCFSI moved into new and more spacious corporate office

quarters in June 1999.       Vesprini regarded the small, windowless


                                    4
office assigned to him "[in]consistent with an office for a chief

executive officer."    Moreover, every employee except Vesprini was

issued a new company business card.

          On October 27, 1999, while Mahan was absent on extended

sick leave, Paul Ritzel, director of operations, and Suzanne

Grubis, a sales manager, overheard a conversation between Vesprini

and his son, during which the senior Vesprini loudly proclaimed

that "Suzanne Grubis is going to f--- you," apparently referring to

a reassignment of an important sales account from Vesprini's son to

Grubis.    Ritzel     and   Grubis   immediately   confronted   Vesprini

regarding this crude remark, at which point Vesprini admittedly

"lost his cool," and once again resorted to profanity.2

          The October 1997 Standards of Ethical Conduct Agreement

empowered Shaw immediately to terminate Vesprini's employment due

to these profane outbursts.      Shaw nevertheless permitted Vesprini

to remain until his three-year employment contract expired in April

2000, with full salary and benefits, on the condition that Vesprini

not enter the corporate offices without prior permission from

Houston, and that Vesprini remain available to provide business

advice to Shaw as required.

          After submitting, then withdrawing, his complaint before


     2
      Ritzell asserted that Vesprini stated, among other things:
"[G]et off your f---ing ass"; Ritzell "should be in that f---ing
estimating department" drumming up business, instead of planning
his office decor; Ritzell is "full of bull----," and Mahan is a "f-
--ing ---hole."

                                     5
the   Massachusetts     Commission       Against    Discrimination         (MCAD),

Vesprini   proceeded    to   lodge   a    three-count      complaint       in   the

Commonwealth courts, which Shaw subsequently removed to the United

States District Court for the District of Massachusetts.                        The

complaint alleged that the above-described actions taken by Shaw

(i) violated the Age Discrimination in Employment Act (ADEA), 29

U.S.C. § 621 et seq., as well as its Commonwealth counterpart,

Mass. Gen. Laws ch. 151B, § 1 et seq.; (ii) breached the employment

contract; and (iii) constituted a constructive discharge, all of

which resulted   in    emotional     distress      and   the   loss   of   annual

incentive bonuses.

           The district court ruled that even though Vesprini had

adduced “direct evidence” of Shaw’s age-based animus, no rational

factfinder could determine either that any such animus constituted

a precipitating factor in Shaw's employment decisions, or that

Shaw’s alleged breach of the employment contract had occasioned the

loss of any bonuses to Vesprini.           Vesprini v. Shaw Indus., Inc.,

221 F. Supp. 2d 44, 60, 61-62 (D. Mass. 2002).

                                     II

                               DISCUSSION

A.    “Mixed Motives”

           Vesprini contends on appeal that the summary judgment

ruling was unwarranted, since he generated a trialworthy factual

dispute — as to whether the defendants had discriminated on the


                                      6
basis of his age — simply by establishing, inter alia, the remarks

made by Houston and Mahan in 1997 regarding his age pursuant to the

“mixed-motive” standard of proof, see Price Waterhouse v. Hopkins,

490 U.S. 228, 266-67 (1989) (O’Connor, J., concurring). Under this

standard:

            When a[n] [employee] presents direct evidence
            of age discrimination, the [employer] must
            then either "deny the validity or the
            sufficiency of the [employee’s] evidence," and
            "[have] the jury . . . decide[] whether the
            [employee] has proved discrimination by a
            preponderance of the evidence," or "prove that
            it would have made the same decision even if
            it had not taken the protected characteristic
            into account."

Dominguez-Cruz v. Suttle Caribe, Inc., 202 F.3d 424, 429 (1st Cir.

2000) (emphasis added; citations omitted).3

            As Vesprini adduced no competent “direct evidence” of

Shaw’s   age-based    animus,    however,   he   failed    to   generate   any

trialworthy   issue    of    fact   enabling   him   to   invoke   the   Price

Waterhouse paradigm.        Although its exact contours remain somewhat

murky, the term “direct evidence” normally contemplates only those

"‘statements by a decisionmaker that directly reflect the alleged

animus and bear squarely on the contested employment decision.’"



     3
      In the district court, Vesprini engaged both the Price
Waterhouse and McDonnell Douglas standards of proof. See infra
Section II.B; Fernandes v. Costa Bros. Masonry, Inc., 199 F.3d 572,
581 (1st Cir. 1999) (noting that plaintiff "may elect to proceed
simultaneously on both fronts” and "the trial court, at an
appropriate stage of the litigation, will channel the case into one
format or the other”).

                                      7
Melendez-Arroyo v. Cutler-Hammer de P.R. Co., 273 F.3d 30, 35 (1st

Cir. 2001) (quoting Febres v. Challenger Caribbean Corp., 214 F.3d

57, 60-61 (1st Cir. 2000)) (emphasis added).       There were nonesuch

in the present case.

           First, the remarks by Houston and Mahan were made some

one and one-half to two years before Shaw’s November 1999 decision

to exclude Vesprini from its business premises.4          The lack of

temporal   proximity   between   these   remarks    and   the   ensuing

disciplinary action by Shaw severely undermines the reasonableness

of any inference that there existed a causal relationship between



     4
      Vesprini further contends that the district court should have
permitted him to recover for all the allegedly discriminatory acts,
see Vesprini, 221 F. Supp. 2d at 53-54, even those which occurred
more than 300 days prior to the MCAD discrimination charge (e.g.,
Mahan’s appointment as Circle Floor’s de facto president). On the
contrary, such “discrete discriminatory acts are not actionable if
time barred, even when they are related to acts alleged in timely
filed charges. Each discrete discriminatory act starts a new clock
for filing charges alleging that act.” Nat’l R.R. Passenger Corp.
v. Morgan, 122 S. Ct. 2061, 2072 (2002). Nevertheless, Vesprini
may use "the[se] prior [time-barred] acts as background evidence in
support of [any] timely claim.” Id. (emphasis added).
     Furthermore, we must reject Vesprini's contention that the
June 1999 actions, assigning him to a “small” office and failing to
order new business cards for him — though within the 300-day
limitations period — were discrete, actionable “adverse employment
actions” under the ADEA. Vesprini admitted that (i) Shaw consulted
him, prior to relocating SCFSI’s corporate headquarters, to
determine whether he wished to prescribe any specifications in
regard to his new office assignment, (ii) he elected to state no
preferences, and (iii) he never complained afterwards. Moreover,
deeming the “business card” matter a mere “oversight,” Vesprini
lodged no complaint with Shaw. See, e.g., Marrero v. Goya of P.R.,
Inc., 304 F.3d 7, 25 (1st Cir. 2002) (noting that minor changes in
employment conditions are not materially adverse where, inter alia,
employee never saw fit to complain to employer).

                                  8
the remarks and the subsequent decisionmaking by Shaw.       See Ayala-

Gerena v. Bristol Myers-Squibb Co., 95 F.3d 86, 97 (1st Cir.

1996).5

          Second,   the    comments    made   by   Houston    did   not

unambiguously display an age-based animus. Instead, Houston simply

observed a fact of life:   since Vesprini was “not going to be [with

Shaw] much longer,” the time had come for Vesprini (i) to "step

back and let the young stallions run the [day-to-day] business,”

and (ii) to mentor Scott Mahan and Michael Vesprini as the next

generation of Shaw executives.        See, e.g., Birkbeck v. Marvel

Lighting Corp., 30 F.3d 507, 511-12 (4th Cir. 1994) (holding that

the statement, made two years prior to adverse employment action,

that “there comes a time when we all have to make way for younger

people,” did not create an inference of age discrimination, given

that it was stated as a “‘truism’ with no disparaging overtones”)


     5
      See, e.g., Kirk v. Hitchcock Clinic, 261 F.3d 75, 78 (1st
Cir. 2001) (finding that employer’s 1996 remarks, made in
connection with earlier time-barred discriminatory decision, were
not “direct evidence” relevant to a 1997 employment decision); see
also, e.g., Armbruster v. Unisys Corp., 32 F.3d 768, 779 (3d Cir.
1994) (finding remarks “too remote in time” to constitute “direct
evidence”); Oest v. Ill. Dep’t of Corr., 240 F.3d 605, 611 (7th
Cir. 2001) (noting that “temporal proximity is often crucial to the
[direct-evidence] inquiry,” and that two-year lapse between remark
and employment decision “defeat[s] the inference of a ‘causal nexus
between the remark and decision to discharge’”)(citations omitted);
Robin v. Espo Eng’g Corp., 200 F.3d 1081, 1089 (7th Cir. 2000)
(same, remarks “two years prior to [employee’s] discharge”); Yates
v. Douglas, 255 F.3d 546, 549 (8th Cir. 2001) (same, remarks “one
to two years” before termination); Scott v. Suncoast Beverage Sales
Ltd., PMBA, 295 F.3d 1223, 1227-28 (11th Cir. 2002) (same, remarks
“two and one-half years before the termination”).

                                  9
(citation omitted); see also EEOC v. Tex. Instruments, Inc., 100

F.3d 1173, 1181-82 (5th Cir. 1996) (same).          As Houston himself was

fifty-seven years of age at the time he made these remarks, see 29

U.S.C. § 631(a) (defining the ADEA protected class as persons over

forty years of age), it is just as likely that his commiserative

statements    to   Vesprini   simply    reflected    his    “non-actionable

reflection on generational passage.”         Birkbeck, 30 F.3d at 512

(discounting comparable remarks by fifty-two-year-old supervisor).

Thus, the remarks made by Houston are reasonably susceptible to an

entirely      benign    connotation,      neither       implausible     nor

discriminatory.    Such inherently ambiguous assertions normally do

not constitute “direct evidence” of an age-based animus.                See

Fernandes v. Costa Bros. Masonry, Inc., 199 F.3d 572, 583 (1st Cir.

1999).

             Third, although the Mahan comments, arguably at least,

may imply something more in the way of an age-based antagonism than

do the statements made by Houston, see supra Section I (e.g.,

suggesting that Vesprini was incompetent at business and should

play golf instead), Vesprini adduced no evidence that Mahan was

involved in the November 1999 decision by Shaw to exclude Vesprini

from its workplace. At that time Mahan was on administrative leave

and Houston was the decisionmaker of record.               Comments by non-

decisionmakers, such as Mahan, normally are not “direct evidence”

of age-based animus.     See Melendez-Arroyo, 273 F.3d at 35.


                                   10
B.    Pretext

           As    the    remarks    made      by   Houston    and   Mahan   are

insufficiently probative to constitute “direct evidence” of any

age-based animus on the part of Shaw, we need not consider whether

or not their remarks established a prima facie case for purposes of

the alternative evidentiary model outlined in McDonnell Douglas

Corp. v. Green, 411 U.S. 792, 802-04 (1973).                See supra note 3.

Even assuming, arguendo, that the Rule 56 proffer by Vesprini

contained sufficient circumstantial evidence to establish a prima

facie case of age discrimination, the burden of production simply

shifted to Shaw to articulate a nondiscriminatory reason for its

November 1999 employment decision.           See Melendez-Arroyo, 273 F.3d

at 33.    Shaw abundantly met its limited burden of production with

its explanation that Vesprini’s repeated use of profanity on

October 27, 1999, not only warranted expulsion from the workplace,

but   directly   contravened      the    "Standards    of    Ethical   Conduct

Agreement” signed by Vesprini, thus explicitly empowering Shaw to

terminate Vesprini on the spot, without first resorting to any form

of progressive discipline.        At that juncture, of course, it became

incumbent upon Vesprini to bear the burden of establishing that the

nondiscriminatory reason relied upon by Shaw was pretextual and

that the challenged employment action was motivated by an age-based

animus.    See id.     Vesprini failed to meet the burden of proof.

            The Rule 56 proffer by Shaw describes, in lurid detail,


                                        11
the profane language used by Vesprini in the workplace.   See supra

note 2.   Although Vesprini assertedly recalls using much milder

epithets (e.g., "son of a gun” and "God damn”), he nevertheless

concedes that he very well may have used the harsher and more

offensive profanities ascribed to him. Consequently, he has failed

to establish that the asserted basis for Shaw's decision to bar him

from its workplace was pretextual.6

          Accordingly, the district court judgment is AFFIRMED.




     6
      Similarly, the district court orders dismissing the breach-
of-contract and constructive-discharge claims must be affirmed as
well. Not only did the expulsion of Vesprini from the workplace
offend no provision in the Employment Agreement, but the parties
explicitly contemplated that very prospect in the Standards of
Ethical Conduct Agreement.    Moreover, given that Vesprini never
resigned, but instead fulfilled the remaining term of the three-
year employment contract, no constructive-discharge claim survived.
See Nereida-Gonzalez v. Tirado-Delgado, 990 F.2d 701, 704 (1st Cir.
1993).

                                12