Court TV Casefiles

Mackenzie v. Miller Brewing Co. (7/97)

Jerold J. Mackenzie was fired from his job with the Miller Brewing Co. in March 1993 for "poor managerial judgment" triggered by allegations that he sexually harassed a coworker by discussing an episode of Seinfeld, the popular TV sitcom, with a female coworker. In the episode, Seinfeld tries to guess the name of his date, which he knows rhymes with a part of the female anatomy (her name was Delores).

Mackenzie alleged that his firing was improper, the coworker was not harassed and the company was looking for an excuse to terminate him. He sued Miller Brewing Co., Patricia Best, the alleged harassed coworker, and Robert Smith, former Vice President of Miller Brewing Co. and Mackenzie's former supervisor.

Climbing the Ladder
Mackenzie joined Miller in 1974 when he was about 31 years old. He started in what is referred to as a "grade level 7" job and was first assigned to Montana. Mackenzie uprooted his family in six moves around the country. He moved up the corporate ladder fairly quickly, jumping from grade level 7 in 1974 to grade level 14 by 1982. (By comparison, grade levels 15, 16 and 17 were director-level positions; grade level 18 was vice president. The Chairman's position is a grade level 27.)

As a grade level 14, Mackenzie was assigned to corporate headquarters in Milwaukee. His job was to keep the company's distributors happy. Distributors are not employees of Miller; rather, they purchase beer from the company.

Downsizing and Mergers
In 1984, about two years after Mackenzie was promoted to grade level 14, Miller apparently started to downsize. Mackenzie had been managing three departments: distributor services, field sales services and sales development. The 1984 reorganization merged two of Mackenzie's departments, field sales services and distributor services.

In 1987, the company restructured the sales administration department again. Mackenzie continued to manage distributor and field sales services.
Sales development, however, was assigned to a new person, William Glickert, the market development manager. Mackenzie claims that Smith, his boss, told him that his grade level 14 position was not affected by the 1987 reorganization.

There were three additional reorganizations of the sales administration department in 1988, 1989 and 1990. By 1990, Mackenzie continued to manage distributor and field sales services but now reported to Paul Zielinski, director of the new distribution management department. As it turned out, in 1989, Mackenzie's position was downgraded to a grade level 13 but Mackenzie was not told about it at the time.

A Memo, A Revelation
On August 17, 1992, Mackenzie was advised for the first time his grade level 14 position had become a grade level 13 under a reorganization three years earlier. He also learned that his position was "grandfathered" in 1989 -- in other words, although Mackenzie continued to receive the benefits of a level 14 employee, his successor would rank grade level 13. Mackenzie was advised in a memo that as of January 1, 1993, all positions that had been "grandfathered" in 1989 would no longer receive the perks of the higher level. For Mackenzie, that meant he would lose such perks as first class travel, executive dining and special events tickets.

This also did not bode well for Mackenzie's future at Miller -- it was virtually impossible to jump from a level 13 to a level 15 position. Mackenzie had been striving for a director position at level 15.

When Mackenzie confronted Smith about the change, Smith said he thought he had told Mackenzie years earlier that his position was "grandfathered" in 1989. Mackenzie claims that Smith assured him the position was not affected by the 1987 reorganization.

A New Opportunity
Also, in 1992, as a result of a project Mackenzie worked on, the Boston Consulting Group, hired by Miller, recommended that a new department be established and that Mackenzie be appointed director. On October 16, 1992, the president of Miller and a steering committee agreed to the recommendation.

However, Mackenzie claims that Smith strongly objected to the recommendation. As a result, the president of Miller requested additional time to consider the matter. Eleven days later, Mackenzie was placed on special assignment and relieved of management responsibilities for distributor and field sales services. In January 1993, Mackenzie was assigned to report to David Goulet, the sales administration and analysis director.

The Seinfeld Conversation
On the morning of March 19, 1993, Mackenzie was talking to coworker Patricia Best, the distributor services manager, about a Seinfeld episode that aired the night before. Mackenzie asked her if she saw it; she did not.

The thrust of Mackenzie's conversation with Best was that he was incredulous and outraged that the show had passed the censors. He told Best that Seinfeld's date had a name that rhymed with a part of a woman's anatomy and asked her to guess what rhymed with Delores. Best could not. About an hour after the conversation, Mackenzie, Best and another coworker, Robert Davies, discussed the show again. All expressed surprise that the show was not censored.

Mackenzie apparently did not want to use the term "clitoris," so he copied the page from the dictionary with the definition and showed it to Best. Upon seeing the term, Best said she did not want to discuss it further.

Confrontation
That night, Best got married and was out of work for a long weekend. When she returned to work on Tuesday, March, 23, she reported the conversation she had had with Mackenzie to Goulet. Goulet said that she had three options: confront Mackenzie herself about her discomfort, let Goulet confront Mackenzie, or report it to Personnel. Best opted to confront Mackenzie.

On March 24, 1993, Best told Mackenzie he had stepped over the line with the Seinfeld discussion. Mackenzie apologized but expressed disbelief that someone who uses the vulgar language Best does would be offended. Best reported the conversation to Goulet and Goulet chose to go to Personnel immediately.

The following day, Mackenzie was "invited" to Miller's law library. Goulet was there along with someone from Personnel and two attorneys -- George Whyte (of the firm that represents Miller) and Albert Butler (in-house counsel). Mackenzie claims that he had no idea why he was there. Whyte questioned Mackenzie and asked whether his conversation with Best about the Seinfeld episode was appropriate in the workplace. An hour later, he was escorted by his supervisor, Goulet, out of the building and told never to return.

A Short-Lived Consultant
About a month and a half after he was fired, Mackenzie started to work indirectly for Miller via a corporate organization consultant, Michael J. Mazzoni, who was retained by Miller. Apparently Miller wanted Mackenzie to continue a project that was ongoing at the time of the firing. Miller, however, preferred that Mackenzie have no direct contact with the company. Mackenzie accepted the consulting role for six to seven months.

Meanwhile, Mackenzie contacted an attorney about filing suit against Miller. Once Miller learned that Mackenzie was contemplating a suit, Mackenzie was let go from the consulting contract.

According to Mackenzie's attorney, Mackenzie has applied for work at 71 places throughout the U.S. but has failed to get work and has been labeled a "pervert."

Causes of Action
Mackenzie sued two people and one entity. The defendants were Robert Smith, Patricia Best and the Miller Brewing Co. There were three causes of action to this complaint:

Damages
Mackenzie sought damages for lost salary and benefits as well as for the salary he would have received had he become a director. He asked for $9.2 million in compensatory damages.

The Verdict
Jurors awarded Mackenzie $26.6 million on July 15, 1997. Mackenzie was awarded $24.5 million from Miller Brewing Co., $1.5 from former co-worker Best and $601,500 from former supervisor Smith.


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