## Facts

- Richard E. Wilson was hired by Monarch Paper Company in 1970 at age 48 and rose to senior roles, including vice president and assistant to the president; he consistently received merit raises and bonuses and was not disciplined for performance.
- In 1981 Wilson successfully managed Monarch’s largest construction project, completing it under budget.
- After new leadership took over (including a younger president), senior management discussed that company leadership was “too old” and that “younger people” were needed.
- Wilson was marginalized: his responsibilities were reassigned and the president refused to speak to or acknowledge him.
- In mid-1982 Wilson was given three options: (1) termination with three months’ severance; (2) a sales job at roughly half pay; or (3) a Houston “warehouse supervisor” job at the same salary but with loss of significant benefits.
- Wilson accepted the warehouse position believing it was managerial, but the job functioned as entry-level work inconsistent with his experience and status.
- At the warehouse, Wilson faced age-based insults and postings, and he spent most of his time on “housekeeping,” including sweeping and cleaning without staff support.
- Wilson developed respiratory problems and was diagnosed with reactive depression attributed to workplace stress; he later suffered a severe psychological episode, involuntary hospitalization, and additional treatment including electroconvulsive therapy.
- Wilson filed an EEOC age-discrimination charge in January 1983; he later sued in federal court alleging ADEA discrimination and retaliation and Texas intentional infliction of emotional distress.

## Issues

1. Whether substantial evidence supported the jury’s findings of age discrimination and retaliation under the ADEA.
2. Whether the evidence was sufficient under Texas law to prove intentional infliction of emotional distress, including “extreme and outrageous” conduct and severe distress.
3. Whether the $3.4 million verdict (including economic loss, ADEA liquidated damages, and emotional-distress damages) was supported by the record and not excessive.

## Decision

- The Fifth Circuit affirmed the judgment for Wilson in full.
- The court held substantial evidence supported the jury’s findings that Monarch discriminated against Wilson because of age and retaliated after protected activity.
- The court held the evidence met Texas’s stringent standard for intentional infliction of emotional distress based on sustained humiliation and harassment causing severe psychological injury.
- The court upheld the damages award, including liquidated damages based on a finding of willfulness, and rejected arguments for JNOV, new trial, or remittitur.

## Legal Principles

- On appellate review of denials of directed verdict/JNOV, the evidence is viewed in the light most favorable to the verdict; the question is whether substantial evidence supports the jury’s findings.
- ADEA liability may be proven by circumstantial evidence showing age-related animus and pretext, including age-focused leadership remarks, adverse restructuring, and a drastic mismatch between an employee’s qualifications and reassigned duties.
- Employer actions that effectively force an employee out—through severe demotion, stripping responsibilities, and degrading conditions—can support findings of constructive discharge and retaliation.
- Under Texas law, intentional infliction of emotional distress requires conduct that is extreme and outrageous and causes severe emotional distress; sustained workplace humiliation and targeted harassment may satisfy the standard when supported by medical evidence of serious psychological harm.
- ADEA liquidated damages require willfulness; a jury may find willfulness where management knowingly targets an employee because of age and persists in harmful treatment.

## Conclusion

The Fifth Circuit upheld a jury verdict finding that an employer violated the ADEA and committed intentional infliction of emotional distress by systematically humiliating an older executive through an effective demotion to menial work, coupled with age-based harassment, and affirmed the resulting $3.4 million damages award, including liquidated damages for willful discrimination.


Wilson v. Monarch Paper Co., 939 F.2d 1138 (5th Cir. 1991)