|
|
 |
|
END DISCRIMINATION NOW NEWSLETTER For Immediate Release February 6th,
2009 BREAKING STORY: E.N.D. CONDEMNS PATTERSON APPOINTMENT OF
JUDGE LIPPMAN AS CHIEF JURIST FOR COURT OF APPEALS; CITES “CASE FIXING” E.N.D. (www.EndDiscriminationNow.com) has publicly condemned Governor Patterson’s appointment of Judge Jonathon Lippman to head the Court
of Appeals as a blatantly political maneuver aimed at gutting the state’s anti-discrimination laws and making it easier
for employers to justify discriminatory acts at a time when the governor admits the York Courts desperately need “judicial
reform”. Passing over another eminently qualified female jurist, acting Chief Judge Carmen
Cirpatrick, a female Hispanic jurist whom Patterson characterized as a “trailblazer for women” along with outgoing
Chief Judge Judith Kaye, Governor Patterson appointed Judge Lippman under the usual cloak of expediency and secrecy that has
accompanied virtually all of his appointments. The appointment follows Caroline Kennedy’s abrupt
and mysterious withdrawal after meeting with the Governor. E.N.D.
President, Kathryn Jordan, stated that she personally is personally familiar with the politics of Judge Lippman who
she has claimed has frequently “legislated from the bench” when it suited his purpose. “Lippman
represents everything that we don’t want in jurists at this critical time when politics, corruption and cronyism are
finally being vetted from our government. He personally has rendered decisions that have weakened the
Anti Discrimination laws in this state and fixed jury cases on appeal legislating changes to the law from the bench .”
Further Jordan claimed, Judge Lippman “puts politics over justice” and has “outrageously
abused his authority to legislate unfavorable changes to our ADA and Title VII laws that are clearly intended to undermine
the equal rights agenda of these statutes”. Lippman
was part of a panel of First Department judges who reversed a jury verdict that Jordan won in April 2005 in her case of disability
discrimination against WPP Group’s Bates Advertising AC&R in December of 2007. Although
the evidence of discrimination was indisputable, with senior senior executives at AC&R and Bates admitting in sworn depositions
to knowing about the discrimination and failing to take any remedial action, WPP, which publishes an Code of Conduct that
precludes discrimination, decided to “appeal” the case “on the law” even though
Drinker Biddle, WPP’s attorneys, had agreed to the jury instructions. Customarily this kind
of frivolous appeal by a defendant employer would be dismissed as legally deficient. The First Department
panel including Judge Lippman not only granted the appeal but vocalized a clear bias about the case. Under
New York Law jurists are required to recuse themselves if they have a bias about a case. Lippman
and his fellow jurists refused to recuse themselves and instead manipulated facts and law to conform with their biases and
“legislate from the bench” adverse changes to the legal standard for proving pretext
in discrimination cases. On appeal by WPP, Judge Lippman issued a decision attacking Jordan,
a disabled litigant with Multiple Sclerosis, for complaining about the conduct of the trial judge who upheld
the jury verdict, Honorable Rolando Acosta, presumptively characterizing her complaints as “baseless allegations”.
Jordan has consistently denied that her allegations were baseless and asserted that they were directed at her to divert
attention from judicial misconduct. Jordan, who took a voluntary polygraph, complained that Acosta
held “ex parte” meetings with Jordan’s discharged counsel and threatened her with sanctions if she did not
concede to his demands regarding her former attorney. Jordan has repeatedly asserted that Acosta abused
his authority by allowing her discharged attorney access to influence him and acting to intimidate her into conceding to his
demands regarding her discharged attorney’s demands for over a million dollars in legal fees. After
Judge Acosta attacked her in his Final Judgment as “contemptuous” for making the same “baseless” allegations,
he finally recused himself but not before damaging Jordan’s credibility. There is an ongoing
debate as to whether Acosta’s ruthless actions were simply lack of judicial restraint or whether he was signaling a
change of allegiance to his new First Department colleagues. Acosta, who rose through the ranks of the
Human Rights Division, was promoted shortly after the attack on Jordan to the First Department. During Jordan’s case on appeal by WPP to the First
Department Appellate Division, Judge Lippman and the panel made no attempt to investigate the veracity of Acosta’s attacks
or his motivation (after upholding the jury verdict) and adopted Judge Acosta’s position as fact.
They then wrote a decision that “read like something out of a 1960’s employment manual” Jordan said,
and which criticized Jordan for “not telling anyone” she was disabled at the time of her hire or during the period
she claimed she was being harassed about being “a cripple” by her supervisors. They also paraphrased
her testimony and manipulated the facts to support their operative bias. Lippman’s
Decision completely disregarded all of the evidence of discrimination, including sworn admissions from senior management that
they knew Jordan was being harassed based on the perception of her being disabled, but took no remedial action, sworn admissions
by the Decision Maker that he “did not know if it was more cost effective” to fire Jordan or not, and completely
disregarded Jordan’s own testimony that there was no EEO department to “complain to”.
Instead, they focused on the admissibility of a minor document attesting to Jordan’s non disabled
replacement’s compensation, paraphrased Jordan’s testimony, blamed her for not reporting the discrimination to
her harassers, and hung their legal argument on the fact that the employer claimed they had “financial problems”
and that it was more “cost effective” to fire Jordan, a “fact” that was never proven.
Jordan, an EVP and the only disabled executive at the time at AC&R (the sister agency for Estee
Lauder and Foot Locker at the time), was also passed over for the top Bates Planning job, although she
was proven to be qualified. Jordan was not able to prove the “failure to promote”
claim after WPP’s lawyers at Drinker Biddle suppressed evidence and lied about
the relationship between the agencies during discovery. “The case was fixed”, Jordan
claims. WPP’s decision to try the case, knowing
that executives had admitted wrongdoing in sworn depositions, was considered frivolous at the time. In
April 2005, after an 11 day jury trial, a verdict was rendered against WPP/Bates for the “wrongful
discharge” cause of action and a $2.5M award rendered. The damages were 60% reduced
from the “make whole” expert report. However,
it was the decision to appeal the verdict, knowing that WPP’s attorneys at Drinker Biddle had agreed
to the jury instructions, or the law of the case that raised eyebrows. Under the law,
if a party agrees to the jury instructions they cannot then go back and contest the outcome based on “legal error”
as WPP did. Normally a case like this would be rejected as frivolous and WPP would have
been sanctioned. Instead, Lippman and the rest of the First Department panel, reversed the
jury verdict and effectively legislated new law that significantly weakened the ADA and Title VII by allowing
employers to simply assert a “legitimate reason” (like financial reasons) as pretext to dispose of allegations
of discrimination.
Under Lippman’s order, all an employer has to do to dismiss a charge of discrimination is to proffer, but not
prove, a “legitimate reason” and this rebuts any evidence of discriminatory acts or motivation.
Jordan and her appellate attorney Robert Meister have repeatedly argued that this is a misinterpretation and misapplication
of the McDonnell Douglas standard and argued in their briefs to the New York Court of Appeals that the Decision by the First
Department Appellate Division to reverse the jury verdict was“legal error” and intended to
undermine the ADA and Title Vll. The New York Court of Appeals refused to hear Jordan’s
appeal even though she and Meister proved that “courts outside New York” have aligned around a more fair and meaningful
standard, the “real reason” standard for proving pretext, which requires that the employer’s motivation
be considered in assessing discrimination. The same week NYCOA rejected Jordan’s petition
it heard the Bianca Jagger eviction case.
To add more intrigue and suspicion to the judicial appointment process, Jordan’s trial judge Honorable Rolando
Acosta was appointed by Elliot Spitzer to the First Department during the period when he attacked her complaints about
him, unbeknownst to Jordan at the time. Acosta, like Lippman, had violated several of the Codes of
Conduct that judges are required to adhere to. The First Department panel which included Lippman
ignored these Codes when they refused to recuse themselves but then openly attacked Jordan in their Opinion.
“There is no mechanism for checking the authority of the judiciary”, Jordan has argued, “Judges
basically have limitless authority. This by definition encourages and enables corruption and abuse
of power”.
The only regulatory body overseeing the judicial system is the Commission on Judicial Conduct, a body whose lead investigator
interviews judges and attorneys on cable television, a clear conflict of interest.
E.N.D. plans to publish all of the Decisions by Lippman and all of the facts upon which he “relied”.
“Now the jury will be the Court of Public Opinion”, Jordan asserted. Jordan, who has been relentlessly attacked by these jurists over the last 13 years, is
actually a high profile socially and politically connected individual who has repeatedly asserted that she is “not
anti employer, just anti-discrimination. There’s a world of difference”.
She also cautions that in these challenging economic times that “discrimination will be on the rise and employers
need to be especially alert and learn from history, not repeat it”. Jordan, who has been
a high level exec herself, does not propose that employers replace highly qualified employees with disabled applicants, but
that the Disabled are given an “equal opportunity” for consideration. “That is the
Law”, Jordan said, “and it is not being enforced.” Jordan believes that
the actions of the First Department are inconsistent with the intentions of the Supreme Court especially with respect to “legislating
from the bench”. Studies show disabled workers are more productive and more loyal than non disabled
workers, Jordan said.
Governor Patterson’s decision to appoint Judge Lippman as the highest judge in New York is clearly intended to
send a message that he will oppose President Obama’s “change” agenda on the judicial front.
“Judge Lippman is obviously an intelligent jurist, but intelligence alone is not the criteria.
We need judges who have integrity and respect for the Law”, Jordan stated. “The
problem is the judicial selection process itself which is inherently flawed, and smacks of cronyism, sexism and corruption.
As long as it justice is in jeopardy, E.N.D. will continue to fight for change”.
**** FLORIDA SUPREME COURT SURVEY FINDS GENDER BIAS "PERVASIVE" IN COURT SYSTEM www.floridasupremecourt.org/pub_info/documents/bias.pdf -
|
 |
Winter 2001 Membership Newsletter PRESS RELEASE Top NY Court Blinks in 'First Department'
WPP Discrimination Power Play Last update: 4:57 p.m. EST Nov.
13, 2008 NEW YORK, Nov 13, 2008 /PRNewswire-USNewswire via COMTEX/ -- In a regular session
of the New York Court of Appeals on October 23rd 2008, and under the cover of a contentious election year and an economic
tsunami, this state's top court, the New York Court of Appeals (NYCOA) declined to hear the appeal of Kathryn Jordan v.
Bates Advertising 118785-99, an important "perceived disability" case filed by a woman with Multiple Sclerosis.
The appeal was filed by Jordan after the First Department Appellate Division reversed the May 2005 jury verdict and the Final
Judgment of the trial judge, Honorable Rolando T. Acosta, entered in November 2007 to uphold the jury verdict and adopted
the arguments of WPP's appellate and trial attorneys that victims of discrimination must always disprove the "legitimate
reasons" proffered by the employer in order to prove discrimination. In a week that that the
state's top appeals court chose to hear the Bianca Jagger eviction case, NYCOA appeared to be dodging an overt power play
by the Appellate Division, to legislate "from the bench" new case law that will now make proving discrimination
by plaintiffs in disability and Title VII cases extremely more difficult, as well as avoiding a politically charged situation
involved the trial judge's appointment to the higher court in the middle of a judicial investigation. The decision will
also open the door for employers to get a "second bite at the apple" when they lose cases for legal reasons after
agreeing to the jury instructions. The hearing of the Jordan appeal would have allowed the top
court to resolve an important issue of law, specifically the legal burden for proving "pretext" in discrimination
cases, a matter that has been inconsistently adjudicated by lower New York courts. Jordan's appellate attorney Robert
Meister argued in their briefs that while the First Department held, as WPP's attorneys had argued, that a victim of discrimination
must always disprove the "legitimate reason" for the adverse employment action, courts outside New York had aligned
around the "real reason" standard, which requires that the analysis advance to a third level where the motivations
of the employer are considered. Meister argued in their briefs that while disproving the "legitimate reason" can
be helpful to proving discrimination, it is not necessary to do so. "It's the 'blue
eyes defense,' Meister argued. "It's like saying we fired her because she had blue eyes...and then proving that
her eyes are blue, and suggesting that this disposes of the fact that the employer was motivated by discrimination."
Under McDonnell Douglas, the standard for proving discrimination established by the United States
Supreme Court, a plaintiff seeking to prove discrimination must proffer a "prima facie" case, while the employer
must only produce a "legitimate reason" that it does not have to prove, while the plaintiff ultimately bearing the
burden of proving that the employer was motivated by discrimination and that the "real reason" was discrimination.
In finding that Jordan "presented no evidence of pretext" to rebut the "legitimate reasons" offered by
WPP's attorneys, and therefore the jury verdict was "against the weight of the evidence", the First Department
chose to ignore all of the evidence of discrimination that Jordan produced at trial, including testimony by her and top executives
that she was openly referred to as "a cripple", hazed about her need to use a cane to ambulate, and treated differently
by her supervisors than her non disabled peers, including being paid half what non-disabled EVP's were compensated. The
First Department also ignored evidence that decision maker Doug Fidoten, who fired Jordan, "could not say" whether
it was more cost effective to terminate her or not, evidence that her termination as the agency's top Planning executive
was not part of the mid 1994 merger layoffs which targeted non-client staff positions, and evidence that the defendants were
hiring planners at the very time that they claimed "financial problems" were the reason for terminating Jordan.
Instead, the First Department, incensed about Jordan's criticisms about the trial Judge's "ex parte" communications,
allegations which they deemed "baseless" instead of investigating, focused on the omission from evidence of a document
that proved one of her non disabled replacements' compensation, as the basis for finding that there was "no evidence"
to "rebut the legitimate reason". The reason for the First Department's decision
was clearly political. The First Department, in ignoring the high hurdle for disturbing jury verdicts in this state, as well
as the fact that WPP waived the right to appeal when it agreed to the jury instructions, deployed the artifice of outrage
about a dispute between the trial judge and the plaintiff to divert attention from the fact that they were "legislating
from the bench" changes to the state's anti-discrimination laws that would make it harder to prove discrimination.
The Appellate panel expressed outrage about Jordan's allegation of misconduct by the trial judge, Honorable Judge Rolando
T. Acosta, and her allegations of improper "ex parte" communications with her discharged attorney, Laurence Lebowitz.
Jordan complained that the trial judge had pressured her to agree to pay Lebowitz over $1 million in legal fees, despite his
negligence in documenting Jordan's economic damages and evidence on the case. Acosta had also sanctioned Jordan calling
her "contemptuous" after reporting Lebowitz' improper filing of pleadings on the case after his discharge as
counsel of record, and after his attempts to censure her complaints failed. Acosta eventually recused himself from the case.
The Kathryn Jordan v. Bates Advertising et al case was tried in Supreme Court before Judge Acosta,
a jurist ironically once appointed by Judge Judith Kaye, Chief Judge of the NYCOA, to oversee the commission to Promote Public
Confidence in the Justice System. Acosta, who rose through the ranks of the Human Rights Division, published a lengthy opinion
in February 2007 endorsing the jury verdict of April 2005 in favor of Jordan and affirming the finding that defendants Bates/AC&R
Advertising had "discriminated against Jordan on the basis of 'perceived disability'". This finding necessitated
accepting the jury's credibility determinations of Jordan as a witness. The Court also affirmed the damages award, including
$2.0M in economic damages, declining to adjust the 60% reduction in "make whole" damages proven by Jordan's
unrebutted expert. WPP's attorneys refused to settle the case over the decade leading up to the 11 day jury trial, insisting
on trying the case before a jury, knowing that fatal admissions by Bates/AC&R management made it virtually impossible
for WPP to win. Consequently, Jordan, who suffers from Multiple Sclerosis, and who has been recognized for her contributions
to the advancement of women and the disabled in the workplace, had to finance, and endure, 13 years of litigation. "It
has been an incredible ordeal," Jordan admitted. "No intelligent person one files a discrimination case as a profit
making venture. Nor does any sane person accuse a judge of misconduct without reason." Jordan
who was criticized by the First Department for masking her disability at the time of her hire as EVP Planning, a $250,000
base salary position, for not reporting the harassment to her supervisors who testified that they knew at the time that she
was openly referred to as "a cripple" by colleagues but failed to take remedial action, for Jordan's not complaining
about her supervisor's interrogations about her need to ambulate with a cane, and for negotiating a "reason for leaving"
that would not reveal the fact that she had been fired for discriminatory reasons to future employers. Bates senior management
admitted that there was no enforcement of EEO policy. The jury was outraged and awarded $500,000 in punitive damages to Jordan.
"The (First Department) decision (to reverse the verdict) read like something out of a 1950's
'blame the victim' employer manual," Jordan said. "We obviously still have a long way to go."
Details about this case will be posted on EndDiscriminationNow.com beginning December 1st, 2008.
SOURCE EndDiscriminationNow.com Copyright (C) 2008 PR Newswire. All rights
reserved   First Department Appellate Division, aided by Drinker Biddle, fix
case for errant Supreme Court jurist For Immediate Release: November 24th, 2008, New York, N.
Y.: An Appellate Division First Department panel, including Judges Jonathon
Lippman, David Friedman, Luis Gonzales and two now retired jurists, Judge Sullivan and Patterson, operated in concert to cover
up misconduct by a judicial candidate, Honorable Judge Rolando T. Acosta. Judge Acosta, a Supreme
Court jurist, appointed by Elliot Spitzer as a candidate for the higher court in the fall of 2007, had overseen a jury trial
in the case of Kathryn Jordan v. Bates Advertising et al, #118785-99, and had issued an Opinion in February
2006 affirming the jury’s verdict in favor of the Plaintiff. However, during the legal fee
hearing portion of the litigation, Jordan fired her trial attorney, explaining to the court that Mr. Lebowitz’ numerous
errors in handling of evidence and preparation and examination of experts had led to the 60% reduction in damages on the case,
a decision that Judge Acosta was incensed with. Consequently, on April
3rd, 2006, almost one year after the jury voted in Jordan’s favor, Judge
Acosta entertained an “ex parte” meeting with Lebowitz where he presented “evidence” supporting his
claim for over $1 million in legal fees. Neither Jordan or her adversary, Drinker Biddle attorneys
Gregory Homer and Donald Beshada, were present during the meeting because Homer had conveniently waved his right to attend.
Shortly after the Lebowitz discussion, Jordan was called in by Judge Acosta and advised that Judge Acosta would “act
as a fact witness” against her if she proceeded with her plans to file a malpractice case against Lebowitz.
Jordan said she was undeterred. Acosta then began entertaining
“ex parte” pleadings from Lebowitz, at a time when he had been clearly discharged as “Counsel of Record”
for Jordan. This led to two sets of pleadings being filed for Plaintiff during this period.
After a number of attempts by Jordan to secure the court’s agreement to cease the “ex parte” misconduct,
Jordan filed a complaint with the Commission on Judicial Misconduct.
Jordan then asked for Judge Acosta’s recusal. His initial reaction was to sanction
Jordan for allegedly violating a gag order he put into the case at this time, an order that all of the attorneys technically
violated on the case. Jordan was the only party sanctioned. Then Judge Acosta’s
chambers leaked a biased story about the case to the Law Journal, spinning the “facts” to make Jordan appear to
be an out of control Pro Se litigant.(The Law Journal confirmed this report a few months later). Finally
in November 2006, Judge Acosta issued his “Final Judgment”. While he upheld the jury
verdict and the law upon which the case was tried, Judge Acosta then issued a 7 page vitriolic attack on the disabled Jordan,
calling her “contemptuous” and “contumacious” for making the “baseless” allegations.
In his Judgment, though, he never directly denied making the threats to Jordan nor having the “ex parte”
meetings with Lebwitz. He simply characterized the complaints as “baseless”.
A subsequent investigation by the Commission on Misconduct cited “insufficient evidence”
of misconduct. During
the period, September to December 2007, Judge Acosta was being vetted for the position on the Appellate
Division Court. Having courted the legal community for decades with his activist views on attorney
compensation, Acosta was able to easily secure references from the attorneys involved in many of the cases he adjudicated.
One source cited Drinker Biddle as a reference source.
.Here is where the timing of the events gets very interesting.
On December 27th,, 2007, less than a month prior to Acosta’s appointment, the Appellate Division panel
issued its decision to reverse Acosta’s Judgment based largely on their ostensible outrage that Jordan had made “baseless”
allegations about their newly appointed colleague. This Decision openly attacked Jordan’s
credibility and adopted verbatim Drinker Biddle’s paraphrasing of evidence and misquoting of Jordan’s testimony.
They clearly second guessed the jury’s decision to believe Jordan and disbelieve the numerous pretextual excuses
that employer Bates Advertising provided at the time. In doing so, though, they applied standards
for evaluating discrimination that were outmoded and inappropriate. For example, they criticized Jordan
for not disclosing her disability at hire, or report the harassment to “others”, when it was known that her supervisors
were her harassers. They also reached far into other litigations where an off handed comment by Jordan
that Bates “had financial problems, they lost big accounts”, was interpreted as an “admission” that
it was not discrimination but finances that caused her termination. They also focused on the omission
of a document that proved her non disabled replacements’ compensation as dispositive of the case “as a matter
of law” because the absence of this was tantamount to “insufficiency of evidence” in terms of disproving
Bates’s pretext of “financial reasons” or cost efficiency. This document could
only have supported a “matter of law” issue if the Appellate panel also disregarded the admission of decision
maker Fidoten who stated that he “did not know” if it was more cost effective to fire Jordan or not.
There was
also a completely misapplied argument that Jordan was obligated to disprove the “legitimate reason” of the employer
in order to prove discrimination, proffered by defense counsel for WPP, Drinker Biddle, which was incredibly adopted by the
Appellate Division as the law of the case. This was despite the fact that Drinker had already waived
any right to dispute the law of the case when they agreed to the jury instructions.
All of these deviant factoids were then used to justify reversing the jury verdict and dismissing the case.
Normally the standard for reversing jury verdicts is extremely high: the judge would have to have
made an error of law or the jury misinterpreted the facts of the case. Neither was applicable here.
However, in instances where these types of decisions are rendered by appellate courts, the remedy is re-trial of the
case, not reversal. Behind
the scenes, Washington based Drinker Biddle, attorneys for WPP as defendants in this case, pulled the strings.
It is apparent that a deal was struck whereby the case would be thrown out, despite the abundant evidence that the
employer had discriminated. Drinker Biddle had refused to settle the case over the decade preceding
trial. Instead they deployed a series of hard ball tactics to wear Jordan, a disabled woman with Multiple
Sclerosis, down. The Record shows that Drinker refused to conduct discovery with Jordan and incited
trouble with her attorneys. Pre trial judge York was pre-occupied with his Times Square pornography
case at the time and never once even met with Jordan. The case was tried like a rape trial,
with Jordan’s sanity and integrity assaulted by innuendo. Drinker’s attorneys agreed
to the jury instructions or the law of the case. The case was tried over 11 days.
Drinker lost. They did secure a 60% reduction in Jordan’s damages prove by her unrebutted
expert. Drinker then filed post trial motions in May 2006 which they also lost.
In January 2007 Drinker Biddle filed what should have been a frivolous appeal. They had agreed
to the jury instructions, so there was no bona fide mechanism for claiming the law of the case was not correct.
However, they saw in the Acosta-Lebowitz drama an opportunity to change the cast of the die. Inciting
the Lebowitz “ex parte” misconduct from behind the scenes, and failing to report Lebowitz improper role in the
case at that time, Drinker orchestrated a situation where Jordan was targeted for the judge’s scathing attack.
Drinker had a political motive however. The DC law firm knew that the Appellate Division would
“play ball” once the case was keyed up to challenge the jury. They also knew that Acosta
was a candidate for appellate panel at that time. When Acosta attacked Jordan’s allegations as “baseless”,
Drinker remained silent even though they knew that Jordan had been unfairly attacked and despite their first hand knowledge
that Acosta was manipulating the proceeding so that Lebowitz would continue to have a “role”.
Despite the cloud of misconduct, and the Spitzer debacle, Judge
Acosta was quickly appointed in January 2008 to the Appellate Division as one of the new judges
In the end the inconceivable occurred: a bona fide jury verdict was reversed, a judge who should
have been censured was promoted and rewarded for his misconduct, and Drinker Biddle not only won
hundreds of thousands more in legal fees, they “saved” their client WPP over three million dollars in damages.
Jordan, who endured
13 years of litigation in her pursuit of justice, then filed the malpractice cases against Lebowitz that Judge Acosta had
threatened to “act as a fact witness” against her on. Colleague Supreme Court Jurist
Marcy Friedman dismissed the case before discovery, disregarding all of the allegations and facts.
Jordan is appealing
before none other than….the Appellate Division. Dated:
November 24th, 2008
| |
| | | window.google_render_ad(); window.google_render_ad();
| 2132 118785 Jordan v Bates Adv. Holdings, Inc. | Citation: 2132 118785 |      | | Neutral
citation: 2007 NY App Div (1st Dept) 2229 | 0 votes | | Legal status: Opinion
| 10
visits | | Jurisdiction:
New York Appellate Division First Department |
|
| Decision date: Thursday, 27
December 2007 |
| | Tags
related to the opinion: no Tags | | | | |
Page 1, 2132 118785/99, 1 Jordan v Bates Adv. Holdings, Inc. 2007 NY Slip Op 10465 [46 AD3d 440] December 27, 2007 Appellate Division, First
Department Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. As corrected through
Wednesday, February 13, 2008 Kathryn Jordan, Respondent-Appellant, v Bates Advertising Holdings, Inc., Formerly Known as
AC & R Advertising, Inc., Appellant-Respondent, et al., Defendant. Klein Zelman Rothermel LLP, Nonparty Intervenor-Respondent.
- [*1] Drinker Biddle & Reath, LLP, Washington,
D.C. (Gregory W. Homer, of the District of Columbia bar, admitted pro hac vice, of counsel), for appellant-respondent.
Pedowitz & Meister LLP, New York City
(Robert A. Meister of counsel), for respondent-appellant. Klein Zelman Rothermel LLP, New York City (Laurence J. Lebowitz of counsel), for respondent.
Amended judgment, Supreme Court, New York
County (Rolando T. Acosta, J.), entered January 10, 2007, inter alia, awarding plaintiff damages, after jury trial, on
her cause of action for disability discrimination, in the principal amounts of $2,000,000 compensatory and $500,000 punitive,
plus attorneys' fees in the principal total of $257,428.71, and imposing a $5,000 sanction against her, and bringing
up for review an order, same court and Justice, entered February 27, 2006, which denied the motion by defendant Bates
Advertising Holdings, formerly known as AC & R Advertising for judgment notwithstanding the verdict, unanimously modified,
on the law, the motion granted, the verdict set aside, and the judgment insofar as it awarded damages and attorneys'
fees vacated, and otherwise affirmed, without costs. The Clerk is directed to enter an amended judgment imposing the sanction
and dismissing the complaint. In
this disability discrimination action, plaintiff was hired as a senior vice president by a small New York City advertising
agency, AC & R Advertising (AC & R) in January 1994 after working as a consultant for the company since November
of the preceding year. Plaintiff's responsibilities included providing strategic planning on AC & R's accounts,
in particular on the Foot Locker and Estee Lauder accounts. During the summer of 1994, the company merged with Bates Advertising
Holdings, USA, Inc (Bates USA) and changed its name to Bates Advertising [*2] Holdings, Inc.Footnote 1 [FN1] Plaintiff was terminated less than a year later in March 1995. In January 1996, plaintiff brought disability, sex and age discrimination charges before the New
York State Division of Human Rights and the Equal Employment Opportunity Commission. Plaintiff then brought a federal action
against AC & R and Bates USA, alleging discharge in violation of title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and the New York State and
City Human Rights Laws. On August
9, 1999, the District Court (Rakoff, J.) granted both defendants summary dismissal of the federal claims with prejudice
and dismissed the state claims without prejudice. On February 16, 2001, the judgment was affirmed. Meanwhile, on September
8, 1999, plaintiff commenced this action under the State and City Human Rights Laws (Executive Law § 296; Administrative
Code of City of NY § 8-107) claiming, inter alia, termination of her employment because she was perceived to be disabled.
Plaintiff sought damages for lost wages and emotional distress, punitive damages and attorneys' fees. Defendants moved
to dismiss on statute of limitations and collateral estoppel grounds, relying on the federal holding that plaintiff had
not presented sufficient evidence to discredit their stated reason for her termination. By decision dated January 8, 2001, Supreme Court (Louis York, J.)
dismissed the action, holding, inter alia, the disability claim untimely. On appeal, this Court reinstated the claim for
disability discrimination ( Jordan v Bates Adv. Holdings , 292 AD2d 205 [2002]). Subsequently, after a jury trial, the plaintiff was awarded $2 million in economic
damages for termination by AC & R on the basis of disability. Defendant AC & R moved for judgment notwithstanding
the verdict, remittitur or a new trial. The court denied defendant's motion, rejecting defendant's sufficiency
argument. The court found that plaintiff had proved a prima facie case of termination based on perceived disability, and
noted that the jury's rejection of the employer's stated legitimate reasons permits an inference of discrimination.
On appeal, defendant does not raise any issue
with plaintiff's prima facie case, but maintains that she did not prove that defendant's proffered legitimate
reasons were pretextual. For the
reasons set forth below, this Court agrees. In order to recover under section 296 of the Executive Law, a three part analysis is required to determine whether
a plaintiff has met his/her burden in establishing a discrimination claim ( see Stephenson v Hotel Empls. & Rest.
Empls. Union Local 100 of AFL-CIO , 6 NY3d 265 , 270 [2006]). A plaintiff in a discriminatory termination action has the
initial burden of establishing a prima facie case of discrimination, the burden then shifts to the defendant to rebut the
prima facie case with a legitimate reason, and then again shifts to the plaintiff to show that defendant's reasons
are pretextual. The burden of persuasion of the ultimate issue of discrimination always remains with the plaintiff ( id.
at 270-271). At trial, plaintiff
established that she was diagnosed with multiple sclerosis (MS) in 1992. She further testified that she was using a cane
as a result of her MS when she was hired by AC & R's executive vice president Douglas Fidoten as a consultant
in November 1993. When she was asked about the cane, she said it was due to a skiing injury. In December 1993, she met with
AC & R president Steve Bennett and chief operating officer Harry Koenig, who both asked about her use of a cane and
again she gave the skiing injury lie. Bennett offered plaintiff a permanent job [*3] which included working on the Foot
Locker account. She was subsequently made an executive vice president at an annual salary of $125,000. According to plaintiff, in February-March 1994, Bennett, Koenig and
Fidoten repeatedly questioned her about her use of the cane and inquiries about the cane were still being made after August
1994. She felt that they believed she had a disability, and that if she revealed the truth she would be fired. However,
she did not complain to anyone at AC & R about the inquiries as to her use of the cane. Plaintiff further testified
that, at a rehearsal for a client presentation, Fidoten knocked over her cane which was leaning on her chair, and laughed
with another executive, while commenting sarcastically "we've got a cripple." Plaintiff also did not mention
this comment to anyone at the company. In the summer of 1994, AC & R merged with Bates, its parent company. Plaintiff testified that, in December
1994 Fidoten told her that AC & R cannot "afford everyone." She was never reviewed or evaluated, but by
the beginning of 1995, plaintiff had been relieved of her responsibilities on the Estee Lauder account. She was subsequently
told that she was being terminated effective March 1995. Both Bennett and Fidoten, as well as other agency executives, testified that plaintiff's termination
was financially motivated, and that a merger and the loss of major clients had precipitated layoffs of a large portion of
the workforce, including executives more highly placed than plaintiff. Bates's former chief financial officer, Art D'Angelo testified that as a result of the Bates-AC
& R merger, approximately half of the staff at AC & R was terminated. D'Angelo believed that Fidoten had terminated
plaintiff as a cost cutting measure since account planning activities at Bates and AC & R were duplicative. He testified
that in late 1994-early 1995, the parent of both Bates and AC & R, Saatchi & Saatchi, had lost major accounts
when Saatchi's founders left. This required restructuring the Bates worldwide network and making personnel cuts as a
way of cutting costs. Bates's
personnel manager, Anne Melanson, testified that there were many layoffs for budget reasons. While it was customary to
try to transfer people to related entities, this was not possible because during 1994 both of AC & R's corporate
parents (Saatchi and Bates) were losing business. Fidoten testified that around the time plaintiff was terminated one of AC & R's biggest accounts, Estee
Lauder, was looking at other agencies, an action which threatened AC & R's viability. He further testified that
many jobs were eliminated to avoid duplication when AC & R was merged with Bates. They included senior executives
at AC & R such as Koenig, a vice chairman and its chief operating officer, and an executive vice president, Shelly
Marks. Fidoten acknowledged that he had decided to terminate plaintiff on the grounds that she was one of the most expensive
employees and Bates already had many others performing her planning function. Fidoten further testified that plaintiff
was not replaced. Instead, AC & R provided services to Footlocker by using Bates's staff. The defendant's overwhelming and consistent evidence of financial
reasons for layoffs in the light of the merger and the loss of major client accounts was undisputed. Thus, the finding
that defendant failed to demonstrate a legitimate reason for terminating plaintiff was against the weight of the evidence.
Moreover, plaintiff presented no evidence
of pretext, and so failed to controvert defendant's evidence of a legitimate nondiscriminatory reason for her termination.
On the [*4] contrary, plaintiff acknowledged that the merger in 1994 caused many layoffs for economic reasons. She admitted
that when she was terminated, Estee Lauder, a major account she worked on, was considering taking its business elsewhere,
and that AC & R was facing financial pressures.Footnote 2 [FN2] Further, in plaintiff's
separation memo in February 1995 in which she sought references and help with networking, she wrote: "For the purposes
of outside communication, I think the elimination of my position as part of the Bates USA AC & R integration would
be sufficient." Additionally,
while plaintiff elicited evidence from Fidoten that a nondisabled woman in her late 20s to mid 30s, Jill Kosoff, was hired
in November 1994 and put to work on the Footlocker account, performing the planning function that plaintiff had performed,
there was no testimony as to the employee's salary. By failing to come forth with any evidence that hiring Ms. Kosoff
was just as expensive, or that hiring her and also using Bates' personnel was just as expensive as keeping plaintiff
employed, plaintiff failed to meet her burden as a matter of law. Thus, because there was no evidence to rebut defendant's showing of a legitimate reason for the
termination, we find that no jury could have reached the verdict in this case on any fair interpretation of the evidence.
Therefore, the verdict was against the weight of the evidence (see White v New York City Tr. Auth. , 40 AD3d 297 [2007]).
Since it was plaintiff's ultimate burden to prove discrimination and also her burden to prove that the proffered legitimate
reason for her termination was pretextual, we find that the motion to set aside the verdict should have been granted. Further,
inasmuch as plaintiff, as a result of our decision, is no longer the prevailing party, she is not entitled to any award
of attorneys' fees ( see McGrath v Toys "R" Us, Inc. , 3 NY3d 421 , 429 [2004]). It is thus unnecessary to
reach plaintiff's contentions regarding such fees. Finally, the imposition of a sanction of $5,000 on the plaintiff was a proper exercise of discretion.
Plaintiff's conduct after the court directed a hearing to determine the amount of attorneys' fees was egregious
and repeated. The record shows that plaintiff pro se relentlessly bombarded the court with letters and faxes accusing
the court of ex parte communications, declaring her intention to depose the court, and claiming that her now-former trial
attorney had committed serious errors costing her millions in damages.Footnote 3 [FN3] Although the court recognized that [*5] plaintiff was proceeding pro se after trial, it properly observed that
she was nevertheless obliged to comply with court orders and not make baseless accusations regarding the court's integrity.
Concur-Lippman, P.J., Friedman, Sullivan, Gonzalez and Catterson, JJ. Footnotes [Footnote 1] [Footnote 2] [Footnote 3] | |

As soon as the Winter 2001 issue of our newsletter is complete, it will be added to this section here. Each month the
newsletter will include latest news, interesting facts, upcoming events, and member names. We are always looking
for new ideas and topics for the monthly newsletter. If you have an idea or would be interested in writing an article, please
let us know. FLORIDA SUPREME COURT FINDS GENDER BIAS "PERVASIVE" IN COURT
SYSTEM www.floridasupremecourt.org/pub_info/documents/bias.pdf
|
 |
|
|
 |
|
|
 |
|
|
|
|
We may make past editions of the newsletter available for download.
JUDICIAL REFORM NOW @ E.N.D. GLBOAL HQ
954 Lexington Avenue Suite 502 New York NY 10021 917 596 2319 212 535 3369 Fax
Want to do something about discrimination?
Visit our Blog and report what you know in confidence:
enddiscriminationnow.wordpress.com
|
|
|
 |