Prout v. Vladeck

371 F. Supp. 3d 150
CourtDistrict Court, S.D. Illinois
DecidedApril 12, 2019
Docket18 Civ. 260 (JSR)
StatusPublished
Cited by2 cases

This text of 371 F. Supp. 3d 150 (Prout v. Vladeck) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prout v. Vladeck, 371 F. Supp. 3d 150 (S.D. Ill. 2019).

Opinion

JED S. RAKOFF, U.S.D.J.

Before the Court is the motion of defendants Anne C. Vladeck and Vladeck, Raskin & Clark, P.C. ("VRC"). for summary judgment on the legal malpractice claim of plaintiff Alexander Prout. ECF No. 118. After receiving full briefing from each side, the Court held oral argument on March 19, 2019. In a "bottom-line" Order issued on March 26, 2019, ECF No. 140, the Court denied defendants' motion in its entirety. This Opinion sets forth the reasons for the Court's ruling.

Factual Background

Except where otherwise noted, the following facts, either undisputed or, where disputed, taken most favorably to the non-movant plaintiff, are taken from the parties' Rule 56.1 Statements and Counterstatements:

From 2003 to 2012, plaintiff Alexander Prout served as CEO of Invesco Japan. Plaintiff's Response to Defendants' Local Rule 56.1 Statement of Material and Undisputed Facts ¶ 2 ("Prout 56.1 Counterstatement"), ECF No. 130. In September 2012, Prout was succeeded by Alexander Sato, and from September 2012 to August 2013, Prout served as Chairman of Invesco Japan. Id. ¶¶ 3, 6. Thereafter, Prout served as Managing Director and Regional Head of Business for Invesco Asia-Pacific. Id. ¶ 9.

During his time at Invesco, Prout reported to Andrew Lo, Invesco's Senior Managing Director of Asia Pacific. Id. ¶ 11. Lo had a reputation for creating a hostile work environment, and Prout testified that Lo once yelled at him on a telephone call prior to the events described below. Id. ¶¶ 13-15. Lo also conducted Prout's annual performance review, and in 2013, Lo gave Prout a performance rating of "Needs Improvement/Developing" in the "Overall Performance Category," as well as in several other categories. See ECF No. 119, Ex. K, at 3-6, 8-10. Lo also made positive comments, however, including that Prout "has strong competencies," "is a senior executive with substantial regional & global experience," and "is a strong business driver." Id. at 9.

In April 2014, Prout heard a rumor that Sato had purchased a $ 4,000 bottle of *153wine for a senior executive at a Japanese Bank. Prout 56.1 Counterstatement ¶ 28. Concerned that Sato's conduct may have violated various laws and internal rules, Prout reported the rumor to Asha Balachandra, Head of Legal for Invesco Asia Pacific. Id. ¶¶ 29-31. Balachandra advised Prout to report the rumor through Invesco's anonymous whistleblower hotline because otherwise "Lo would s[---] on [Prout's] head." Prout Dep. 43:22-25, ECF No. 119, Ex. C. Prout did not use the hotline but instead told Lo and warned Lo about the consequences of Sato's gift. Prout 56.1 Counterstatement ¶¶ 35-40. Prout testified that Lo's response was, in substance, "so what." Prout Dep. 46:11-13. On May 2, 2014, Balachandra followed up with Prout, and Invesco initiated an internal investigation into Sato. Prout 56.1 Counterstatement ¶¶ 42, 45-46.

Soon after, on May 13, 2014, Prout introduced himself via email to defendant Anne Vladeck. ECF No. 119, Ex. P, at 3. Prout informed Vladeck that he was "currently considering career options" and "would like to discuss my current circumstances/situation and understand my options." Id. Vladeck responded on May 15 that she "would be happy to talk to" Prout. Id. at 2. Prout replied on May 26 that he was "in active consideration of leaving Invesco" and had "had an ethical disagreement with my boss and no longer feel comfortable working at the firm."Id. Prout also said he was "in discussions with another firm." Id.

Toward the end of May 2014, Prout's daughter Chessy was sexually assaulted at the St. Paul's School in New Hampshire. Prout 56.1 Counterstatement ¶ 60. Prout stayed in the United States through the end of June 2014 to take care of his family, id. ¶ 61, and at the end of June, he traveled to Hong Kong at Lo's request for an internal meeting, id. ¶ 65. Once Prout arrived in Hong Kong, however, Lo canceled the meeting, ostensibly because the report that Prout had prepared for the meeting contained formatting errors. Id. ¶ 69. Prout testified that Lo yelled at him and that when Prout updated Lo on his family situation, Lo responded: "I certainly hope Chessy learns better judgment in the future." Prout Dep. 114:18-20.

Shortly thereafter, Prout emailed Vladeck: "SOS from HK. Need your advice.... Pls also send retainer agreement." ECF No. 119, Ex. Q, at 2. On July 3, 2014, Prout executed an engagement letter with Vladeck "regarding an exit strategy with Invesco." ECF No. 119, Ex. T. After Prout attempted unsuccessfully to personally negotiate a severance package with Invesco, Prout 56.1 Counterstatement ¶ 83, Vladeck, on August 4, 2014, emailed individuals at Invesco to advise them that VRC represented Prout regarding "his claims of, inter alia, retaliation for raising concerns about potentially unlawful conduct; retaliation for taking family leave; and claims relating to the inappropriate conduct of his immediate supervisor," id. ¶ 84.

In mid-August 2014, Prout requested Family and Medical Leave Act ("FMLA") leave to take care of his family, which Invesco approved through October 31, 2014. Id. ¶¶ 94-96. A few weeks before Prout was scheduled to come back to work, he was notified that he should report to Invesco's Atlanta headquarters when he returned. Id. ¶ 99. When Prout reported on November 3, 2014, however, he was informed by Invesco that he had "two options: (1) resign and receive approximately $ 1.13 million in compensation, stock vesting, and dividends; or (2) be fired for cause and receive approximately $ 71,000 in compensation." Id. ¶¶ 100-01. After consulting with Vladeck, Prout chose to let Invesco's offer expire, and he was terminated *154effective November 20, 2014. Id. ¶¶ 107-08. Prout testified that Vladeck told him, in substance: "Alex, don't settle. I'll get you everything that Invesco owes you and in addition Invesco will pay my legal fees." Prout Dep. 167:4-6.

On December 2, 2014, Prout met with attorneys at VRC to discuss potential claims against Invesco. Prout 56.1 Counterstatement ¶ 109. Vladeck's notes from the meeting contain references to the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"), the Sarbanes-Oxley Act ("SOX"), and the Foreign Corrupt Practices Act ("FCPA"), ECF No. 131, Ex. 14, at 5, and VRC's billing records from that day indicate that one of the firm's clerks "researched venue issues under FCPA, Dodd Frank, and Sarbanes Oxley," ECF No. 119, Ex. EE, at 3. VRC did not file a SOX claim on behalf of Prout, and on May 2, 2015, 180 days after Prout's termination, any SOX claim that Prout might have had expired. Plaintiff's Local Rule 56.1(b) Statement of Additional Material Facts ¶ 80 ("Prout 56.1 Statement"), ECF No. 129; 29 C.F.R. § 1980.103(d).

In the fall of 2015, Prout started a new job with Morgan Stanley ("MS"). Prout 56.1 Counterstatement ¶ 142. On October 24, 2016, Prout informed VRC that MS had initiated an investigation into whether Prout had improperly retained proprietary documents from Invesco.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
371 F. Supp. 3d 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prout-v-vladeck-ilsd-2019.