Nature of the Case
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Facts
Wilson (P), at 48, was hired by D. P served as manager and a Corporate Director and routinely received merit raises and performance bonuses. In 1980, P received the additional title of 'Vice President.' In 1981, P was given the additional title of 'Assistant to John Blankenship,' D's President at the time. In 1981, P saw a portion of D's long-range plans that indicated that D was presently advancing younger persons in all levels of management. The preference for youth was verified by the Employee Relations Manager of D. In October 1981, D brought in a new, 42-year-old president from outside the company, Hamilton Bisbee. When Bisbee arrived at Monarch in November 1981, P was still deeply involved in the Dallas construction project. Bisbee refused to speak to P or to 'interface' with him. Bisbee also made off-hand comments that could only result in intimidating P to 'voluntarily quit.' Once the Dallas building project was completed, Bisbee intensified an effort designed to get rid of P. Bisbee was preparing a long-range plan for D, in which he made numerous references to age and expressed his desire to bring in 'new blood' and to develop a 'young team.' Bisbee then began dismantling P's job by removing his responsibilities and assigning them to other employees. In March 1982, P was hospitalized for orthopedic surgery. In June 1982, Bisbee gave P three options: (1) he could take a sales job in Corpus Christi at half his pay; (2) he could be terminated with three months' severance pay; or (3) he could accept a job as warehouse supervisor in the Houston warehouse at the same salary but with a reduction in benefits. The benefits included participation in the management bonus plan, and the loss of the use of a company car, a company club membership, and a company expense account. P accepted the warehouse position. P was actually placed instead in the position of an entry level supervisor, a position that required no more than one year's experience in the paper business. P, with his thirty years of experience in the paper business and a college degree, was vastly overqualified and overpaid for that position. P was subjected to harassment and verbal abuse by his supervisor who referred to P as an 'old man' and who admitted posting a sign in the warehouse that said, 'Wilson is old.' P was placed under the supervision of a man in his twenties. P was also placed in charge of housekeeping but was not given any employees to assist him in the housekeeping duties. P, the former vice-president, and assistant to the president, was thus reduced finally to sweeping the floors and cleaning up the employees' cafeteria, duties which occupied 75 percent of his working time. P was diagnosed as suffering from reactive depression, possibly suicidal, because of on-the-job stress. The psychiatrist also advised that P should stay away from work indefinitely. P filed an age discrimination charge with the EEOC in January 1983. P was involuntarily hospitalized with a psychotic manic episode. Prior to the difficulties with his employer, P had no history of emotional illness. P fell into a deep depression. P alleged age discrimination and various state law tort and contract claims. Ds filed a counterclaim, seeking damages in excess of $10,000 for libel and slander, but later dismissed it. The case was tried before a jury on claims that Ds (1) reassigned him because of his age; (2) intentionally inflicted emotional distress; and (3) terminated his long-term disability benefits in retaliation for filing charges of age discrimination under the Age Discrimination in Employment Act (ADEA). The jury returned a special verdict awarding P $156,000 in damages, plus an equal amount in liquidated damages. The jury also found in favor of P on his claim for intentional infliction of emotional distress, awarding him past damages of $622,359.15, future damages of $225,000, and punitive damages of $2,250,000. The jury found in favor of the Ds on Ps retaliation claim. The district court entered judgment for $3,409,359.15 plus prejudgment interest. Ds appealed.
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