$125,000 paid to office manager who was fired the day he turned a certain age

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In the media:

Facts of the case:

Approximately thirty years ago, Plaintiff, Bill Walter’s father, Dr. Dan Walter, started a medical practice in Davison, Michigan. Dr. Dan Walter wanted to do something to secure the future financial security of his non-doctor son, Plaintiff, Bill Walter, and created a unique job for Bill by contractually promising Bill that he could work at the Family Practice as long as he wanted to, so long as he did the job (eventually that of “Office Manger”).

Defendants, with knowledge of the contractual promise of job security made by Dr. Dan Walter to Bill Walter, nevertheless decided to renege on the contractual promise/obligation so that each Defendant could keep an aliquot share of the salary otherwise payable to Bill Walter, Plaintiff. They made this decision within months of each Defendant Doctor receiving substantial sums of money for selling his/her shares of the Family Practice to Defendant Hospital Group. It was Bill Walter’s position that Defendants plotted and schemed to “get rid of” him behind his back. Unfortunately for Defendants, they used an unlawful factor/means to “get rid of” Bill Walter – his age. Despite the fact that it is unlawful under Michigan Law to use age as a factor in making employment decisions, Defendants did just that! Specifically, at a meeting in May of 2017, Defendants got together with Defendant Hospital Group’s CEO and agreed that, because Bill Walter would turn 59 ½ years of age in July of 2018 – a year and one month later – they would get rid of him. Apparently, Defendants and mastermind Defendant Hospital Group’s CEO decided Bill Walter could retire at 59 ½ years of age and “cannibalize” his 401K retirement plan to live on that until his social security could be collected years later! This shocked Bill Walter and he told them he had no intention of retiring. On the contrary, Bill Walter made it very clear that he intended to work until he was 65 years old.

During depositions, Defendants acknowledged that they knew of Plaintiff’s lifetime contract, and that they “accelerated” his retirement anyways – and admitted and conceded that they used his age as a factor in coming to their decision.

Although Bill’s case was potentially worth many hundreds of thousands of dollars, the case settled for $125,000 through the Court’s ADR process due to the real fear of sanctions.

Summary of the case:

Type of Action: ELCRA Discrimination/Age, Wrongful Discharge, Tortious Interference with Contractual Relations and/or Business Expectancy 
Injuries Alleged:    Loss of job, lost wages, breach of contractual obligations, outrage/emotional distress/mental anguish
Name of Case:    Bill Walter v GIGP, et al.
Court:    Genesee County Circuit Court
Name of Judge:    Judge Behm
Settlement:    $125,000
Key To Winning:   Plaintiff’s counsel reported obtaining confirmation under oath that defendants tortiously interfered with plaintiff’s lifetime employment contract when defendants fired him the day he turned 59 ½ years old.
Attorney for Plaintiff:    Tom R. Pabst