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Evenson v. Colorado Farm Bureau Mutual Insurance Co.

Citations: 879 P.2d 402; 1993 WL 539940Docket: 92CA1297

Court: Colorado Court of Appeals; March 3, 1994; Colorado; State Appellate Court

Narrative Opinion Summary

In this case, the appellant, a former employee of a mutual insurance company, appealed a jury verdict regarding age discrimination and breach of implied contract claims following his resignation. The case pivoted on allegations under the Age Discrimination in Employment Act (ADEA) and procedural issues surrounding jury instructions and employment contract interpretations. Despite 25 years of service, the employee faced job elimination and a substantial pay cut, leading to resignation under duress, which he claimed amounted to constructive discharge. The trial court dismissed the implied contract claim, finding the employee failed to overcome the 'at-will' employment presumption, but this was reversed on appeal given potential jury questions about the employment manual's binding nature. The appeal court found errors in jury instructions regarding the ADEA claims, particularly the improper requirement to prove age as the predominant factor in willful discrimination, contrary to existing legal standards. Additionally, the trial court's decision on the statute of limitations for nonwillful claims was upheld. The appeals court remanded the case for a new trial, correcting instructional errors, and instructed a review of awarded costs. The decision highlights the complexity of employment law and procedural intricacies in discrimination cases.

Legal Issues Addressed

Age Discrimination under the Age Discrimination in Employment Act (ADEA)

Application: Evenson alleged age discrimination under ADEA, but the jury found no discrimination, influenced by incorrect jury instructions on willful violations that required proof of age as the predominant factor.

Reasoning: The trial court erred by instructing the jury that age had to be the predominant factor in Evenson's dismissal.

Awarding of Costs in Litigation

Application: The trial court must assess the reasonableness of costs awarded to Farm Bureau after Evenson rejected a settlement offer, should Farm Bureau prevail again.

Reasoning: Thus, if Farm Bureau prevails again, the trial court must evaluate the reasonableness of its costs incurred after Evenson rejected a settlement offer.

Breach of Implied Employment Contract

Application: Evenson's claim of breach of implied contract was dismissed prematurely, as the existence of a factual dispute regarding the binding nature of the employee manual necessitated jury resolution.

Reasoning: He contended that a factual dispute existed regarding whether Farm Bureau's actions indicated an intent to be bound by the employee manual, despite a disclaimer of 'at-will' employment.

Constructive Discharge in Employment Law

Application: The trial court's instruction on constructive discharge was inadequate, failing to properly address whether Evenson's resignation was due to intolerable conditions created by age discrimination.

Reasoning: To establish a prima facie case for age discrimination via constructive discharge, an employee must demonstrate that discriminatory actions by the employer created intolerable working conditions, compelling a reasonable person to resign.

Statute of Limitations under the Age Discrimination in Employment Act (ADEA)

Application: The court upheld the ruling that Evenson's nonwillful ADEA claim was barred by the two-year statute of limitations, as he failed to file within the appropriate timeline.

Reasoning: Regarding the ADEA's two-year statute of limitations, the court upheld the trial court's ruling that the statute had not been tolled.