Opinion ID: 2995222
Heading Depth: 2
Heading Rank: 2

Heading: The Diminution Trigger

Text: We must first consider whether the district court erred in awarding Dr. Bowles severance benefits under the diminution trigger. Quantum argues that, as a matter of law, it is inherent in the diminution trigger that trivial changes in an employee’s job do not obligate Quantum to pay severance benefits. Quantum believes that the severance plan makes little practical sense without such a qualification. Dr. Bowles, on the other hand, argues that the severance plan itself does not quantify or qualify the degree of diminution necessary to trigger an award of benefits. Alternatively, Dr. Bowles argues that the district court found that the changes in his job were significant. Even if we accept Quantum’s suggestion that trivial changes in an employee’s job are insufficient to trigger an award of benefits, we agree with Dr. Bowles that the district court considered the diminution in his authority, duties, responsibilities, and status to be significant. Although the district court stated in its opinion that the severance plan does not contain any express language to qualify or quantify the degree of diminution required to establish the trigger, R.129 at 6, the language the court used in discussing the changes in Dr. Bowles’ job belies Quantum’s assertion that the court thought these changes were trivial. In particular, the court found that (1) Dr. Bowles’ budget was reduced by seven- figure amounts; (2) the Q Technology project, a major research initiative that [Dr.] Bowles was instrumental in, was terminated; (3) Dr. Bowles’ authority to approve expenditures was reduced substantially; and (4) Dr. Bowles’ supervisory position with respect to process modeling was eliminated. Id. at 2-3 (emphasis added). These emphasized words indicate to us that the district court considered the degree to which the changes affected Dr. Bowles’ position and believed that those changes had a meaningful impact. Moreover, the court also found that (1) the expenditure authority of employees below Dr. Bowles was reduced, which required Dr. Bowles to monitor their spending more closely; (2) an extra layer of management was added between Dr. Bowles and President Yocum; and (3) employees who worked for Dr. Bowles left and were not replaced. Our review of the record and the trial testimony reveals that there is evidentiary support for each of the court’s factual findings. Thus, we are unable to conclude that any of these determinations are clearly erroneous. Quantum offers numerous reasons why the changes we have just detailed were not true diminutions in Dr. Bowles’ job. We are unpersuaded by these explanations. The district court specifically found that the changes were diminutions. It has been clear throughout this litigation that Quantum, and those of its employees responsible for administering the severance plan, disagreed with Dr. Bowles’ perception of the impact these changes had on his job. However, the district court stated explicitly that it found Dr. Bowles’ testimony credible-- more credible than that of the severance plan’s administrators--and we are not in a position to ignore or second-guess that finding. See United States v. Childs, 256 F.3d 559, 562 (7th Cir. 2001) (If, in making factual determinations, the district court deems the testimony of one witness more credible than that of another witness and that testimony is supported by the record, there can be no clear error.). As a result, Quantum’s attempt to explain away the district court’s findings cannot succeed. It is clear to us that the district court believed that the changes in Dr. Bowles’ authority, duties, responsibilities, and status were meaningful diminutions. Because we find no clear error in the district court’s findings, we uphold its award of severance benefits to Dr. Bowles under the diminution trigger./9