Jordan v. Bates Advertising Holdings, Inc.

11 Misc. 3d 764
CourtNew York Supreme Court
DecidedFebruary 7, 2006
StatusPublished
Cited by14 cases

This text of 11 Misc. 3d 764 (Jordan v. Bates Advertising Holdings, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jordan v. Bates Advertising Holdings, Inc., 11 Misc. 3d 764 (N.Y. Super. Ct. 2006).

Opinion

OPINION OF THE COURT

Rolando T. Acosta, J.

Summary

Plaintiff sued Bates Advertising Holdings, Inc. for employment discrimination under both the New York State and New York City Human Rights laws. She claimed that she was denied a position because of her gender and perceived disability, and that she was ultimately terminated because of the perceived disability. Defendant asserted that plaintiff was terminated for economic reasons and because a major client had complained about her work. After a jury trial over a three-week period, the jury found that plaintiff had been terminated because she was perceived to be disabled and awarded her $2,000,000 in compensatory damages and an additional $500,000 in punitive damages. Defendant subsequently moved for judgment notwithstanding the verdict, a new trial or remittitur on damages, and plaintiff cross-moved for attorney’s fees.

Background

In September 1993, plaintiff, who had been diagnosed with multiple sclerosis (MS) a year earlier, was approached by a headhunter about a possible consulting position with AC&R Advertising, Inc., a division of Bates Advertising Holdings. The position entailed providing account planning services to Foot Locker, one of Bates’s clients. Plaintiff was interviewed for the position by Douglas Fidoten, the executive vice-president (EVP) [766]*766responsible for the Foot Locker account. According to plaintiff, during the interview, Fidoten asked her about her use of a cane (she used a cane as a result of her MS). Fearful of disclosing her disability, she answered that she had hurt her leg in a skiing accident. Plaintiff was hired as a consultant that October.

Several months later, in December 1993, the headhunter approached plaintiff again about a full-time head of planning position with AC&R. She was interviewed by Steven Bennett (AC&R’s then president) and Harry Koenig (AC&R’s chief financial officer [CFO]). As in the interview with Fidoten, plaintiff testified that both Bennett and Koenig inquired about her use of a cane. Again, she answered that she hurt herself skiing.

Plaintiff was hired and commenced her employment on January 4, 1994. Although she was to be hired as an EVP of account planning, initially she would be given the title of senior vice-president to avoid offending tenured EVPs. Her base salary was $125,000 plus a formulaic bonus for new business and consulting projects. Within a month, she was given the title of EVE According to plaintiff, it was her understanding, based on her conversations with Bennett and Koenig that after being appointed to EVP her salary would be consistent with the title of EVP Arthur D’Angelo, Bates USA’s CFO, testified that EVPs were paid between $150,000 and $300,000 per year in 1994, exclusive of bonuses and other benefits. Fidoten, an AC&R EVP was paid $250,000. Plaintiff never received any raises or any other benefits to bring her compensation commensurate with the other EVPs.

Plaintiffs job consisted of providing strategic planning for AC&R’s accounts, which included Foot Locker and Estee Lauder, AC&R’s two biggest clients, as well as a few other smaller clients. Foot Locker had been AC&R’s client for about 5 to 10 years and was described by Bennett as an aggressive client who, based on its work culture and image, wanted its team to be somewhat athletic and youthful.

Before plaintiff could hire the staff she had been promised, she was told by Bennett and Koenig that she would have to “fire [Nancy Israel] the woman with the club foot,” a directive that really scared her. Although plaintiff eventually terminated Israel for performance reasons, she was never allowed to build her department. Instead, within two months of being hired, Bennett began asking her why she still needed the cane. According to plaintiff, this escalated into a campaign by Bennett of [767]*767regularly “harassing” her about when she would “get rid of the cane” and culminated with his threat that she “better get better soon.”

Ironically, Bennett was not only the president, he was also the chief compliance officer for the equal employment opportunity (EEO) policy. Notwithstanding his position, he admitted that at least on two occasions he heard other individuals in supervisory positions call plaintiff a “cripple,” which he remembered because it personally offended him. Nevertheless, Bennett took no action against the individuals calling plaintiff a “cripple” even though there was an antidiscrimination policy in effect which prohibited discrimination on the basis of disability and which Bennett, as chief compliance officer, was personally responsible for implementing.

In the spring of 1994, Fidoten also began to inquire about plaintiffs continued use of her cane, a claim which Fidoten denied. Indeed, according to plaintiff, during a new business rehearsal in April 1994, Fidoten not only attempted to exclude her from the presentation but also intentionally knocked over her cane, which made a loud banging sound. Fidoten then sat down next to Jennifer Brooke, the creative director, and started laughing and joking. When plaintiff stood to make her presentation, she clearly heard Fidoten say in a sarcastic tone “and we’ve got a cripple,” after which Fidoten and Brooke started laughing. Fidoten also denied this claim, although during his direct testimony he stated that the presentation took place in a carpeted room. When asked by his counsel “what does this have to do with anything?” he responded, “Well, it [the cane] wasn’t rattling around.” Fidoten admitted that during the spring of 1994, he excluded plaintiff from key client meetings.

On June 10, 1994, plaintiff applied for the position of EVP/ director of account planning, a position similar to hers but larger in scope, with Bates USA (AC&R’s parent company) and was interviewed by Arthur D’Angelo (Bates USA’s CFO) and Michael Bungey (Bates Worldwide’s chief executive officer [CEO]). Bungey testified that he found plaintiff qualified for the position and forwarded her name to Frank Assuma (president of Bates USA). Assuma, however, never contacted plaintiff. Instead, the position was given to Jeff DeJoseph, a nondisabled external candidate, even though it was the company’s policy to hire first from within. According to D’Angelo, one of the reasons that plaintiff was not considered for the position related to plaintiffs importance to the Estee Lauder and Foot Locker ac[768]*768counts. In fact, he asserted, Foot Locker would have found it unsettling if plaintiff had been let go.

In the spring of 1994, AC&R began experiencing financial problems, which led to merger talks between AC&R and Bates USA. Despite her senior planning position and high level client relationship, she was not asked to participate in the merger talks between AC&R and Bates USA. Ultimately, AC&R split into two divisions, Bates Alliance to service Foot Locker and Bates Manhattan to service Estee Lauder, and the two divisions were moved into the building where Bates USA had its offices. The merger took place in August 1994, resulting in layoffs of predominantly “back office” personnel (personnel who did not deal directly with clients). In total, about 55 to 60 of AC&R’s employees were let go, including Koenig and EVP Shelly Marks, two nondisabled men.

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Bluebook (online)
11 Misc. 3d 764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jordan-v-bates-advertising-holdings-inc-nysupct-2006.