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It may be very difficult to prove in court that she was clearly more qualified then the other person although she may believe that. We all like to believe that we are most qualified. To me it seems the demotion may have been a blunder by the defendents. I would think you would need documentation of sub par performance to support that. The story indicates she got good ratings which makes the demotion suspect. They might have saved a lot of court costs by not cutting her salary. The initial bypass of the promotion probably would not have triggered a suit. Piling on with the demotion certainly did. She might have had more early success with an age descriminatio action if the people promoted are significantly younger.