SEPTEMBER 2006

JUDICIAL UPDATES

Employer Had Legitimate Business Reason, Based in
Part on Financial Problems, to Discharge Employee Who Had Disability

In Seever v. Copley Press, Inc., Michael Seever sued his former employer, Copley Press, Inc., alleging his 18-year employment relationship was terminated because of age and disability discrimination. Seever also claimed that his former employer failed to provide reasonable accommodations for his disability. The Employer argued that Seever was one of 18 people terminated as a business necessity, because of prior and projected financial losses.

Seever was the Employer’s maintenance superintendent. In 2000, he missed 16 weeks of work to care for his ailing wife. In February 2001, Seever injured his shoulder when he tripped over his cat and took more time off work. Seever was terminated in 2001.

Following a jury trial in which the jury found in favor of the Employer, Seever appealed, arguing that the verdict was not supported by substantial evidence. The Court of Appeal affirmed the jury verdict. In particular, the Court of Appeal held there was substantial evidence of a legitimate business reason for the termination, and also that there was no discrimination based upon disability. The Court relied upon evidence of the Employer’s financial problems, other lay-offs, and the fact that Seever received more leave (both paid and unpaid) than was required by either the Employer’s policy or federal law.

Moreover, the Court of Appeal found substantial evidence that no reasonable accommodation was necessary. This was true because there was evidence that Seever’s position was a sedentary one, and Seever never suggested to anyone that he had difficulty doing any aspect of his job.

It is important to note that this case followed a jury trial, and the Court of Appeal’s analysis was confined to determining whether there was evidence in the record to support the jury’s decision. Thus, employers should not assume that there will never be liability for discrimination if a termination is based upon economic factors. If there is other evidence which suggests a discriminatory motive, a jury could find in favor of the employee. When an employee comes back from disability leave, extra care should be taken to make sure that the employee can still perform the current position, or if reasonable accommodations are necessary.

If you would like to discuss these or any other employment law matters, please do not hesitate to contact any member of Klinedinst's Employment Law Department.