Ravich v. TCW, LLC

CourtSuperior Court of Delaware
DecidedApril 30, 2024
DocketN23C-10-005 SKR
StatusPublished

This text of Ravich v. TCW, LLC (Ravich v. TCW, LLC) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ravich v. TCW, LLC, (Del. Ct. App. 2024).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

JESS RAVICH, ) ) Plaintiff, ) ) v. ) C.A. No. N23C-10-005 SKR ) TCW, LLC, ) ) Defendant. )

MEMORANDUM OPINION

Upon Consideration of Defendant’s Motion to Dismiss:

GRANTED.

Brian E. Farnan, Esquire, and Michael J. Farnan, Esquire, FARNAN LLP, Wilmington, Delaware, and Thomas A. Clare, P.C., Esquire, and Jered T. Ede, Esquire, CLARE LOCKE LLP, Alexandria, Virginia, Attorneys for Plaintiff Jess Ravich.

Rudolf Koch, Esquire, and Sara M. Metzler, Esquire, RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware, and John C. Hueston, Esquire, Alison L. Plessman, Esquire, Samantha Fidler, Esquire, Adam Minchew, Esquire, and Nicholas Kellum, Esquire, HUESTON HENNIGAN LLP, Los Angeles, California, and New York, New York, Attorneys for Defendant TCW, LLC.

RENNIE, J. INTRODUCTION

This memorandum opinion considers and grants Defendant TCW, LLC

(“TCW”)’s motion to dismiss the complaint. 1 In the underlying defamation action,

Plaintiff Jess Ravich (“Ravich”)2 alleges that his former employer, global asset

management firm TCW, intentionally damaged his reputation. The head of

marketing at TCW released a confidential internal memorandum to reporters at

various news publications. In the memorandum, the chief executive officer of TCW

stated that Ravich had engaged in unprofessional communications with a coworker.

Some of the contacted reporters subsequently published news articles based on this

memorandum.3

FACTUAL OVERVIEW4

In late 2010, Ravich met Sara Tirschwell (“Tirschwell”), his future TCW

colleague, at an industry event. Approximately two years later, between May 2012

and December 2012, Ravich and Tirschwell began a fifteen-month romantic

relationship.

In December 2012, Ravich began his term of employment with TCW. Around

this time, Ravich told David Lippman (“Lippman”), the chief executive officer of

1 TCW is a Delaware limited liability company with a principal place of business in California. Compl. 2 Ravich is an individual. Compl. 3 Compl. 4 These facts are largely drawn from Ravich’s complaint in this case.

2 TCW, about his romantic relationship with Tirschwell. In late 2013, Ravich and

Tirschwell ended their romantic relationship.

On July 31, 2014, Ravich and TCW entered into an amended employment

agreement (the “Employment Agreement”), which provided that Ravich would work

for TCW until December 31, 2019, unless his term of employment was otherwise

terminated or extended. 5

In March 2016, TCW hired Tirschwell to oversee a distressed fund program.

Ravich alleges that Lippman discussed Ravich and Tirschwell’s prior romantic

relationship with each of them prior to this hiring.

In the fall of 2016, TCW modified the terms of Tirschwell’s employment.

TCW and Tirschwell entered into a term employment contract that was scheduled to

end in February 2017. Later in 2016, TCW agreed to extend Tirschwell’s term of

employment to February 2018.

On December 1, 2017, TCW Owners LLC (the “LLC”), a limited liability

company affiliated with TCW, amended its LLC Agreement (the “LLC Agreement”)

to add Ravich as a member and manager.6

On December 5, 2017, Tirschwell raised a sexual harassment complaint

against Ravich with TCW. Ravich asserts that TCW conducted an internal

5 Def. TCW LLC’s Opening Br. Supp. Mot. to Dismiss Compl. Ex. A [hereinafter “Employment Agreement”]. 6 Aff. Jess Ravich Ex. D [hereinafter “LLC Agreement”].

3 investigation of Tirschwell’s allegations and, within a few days afterwards, found

that they lacked merit. On December 14, 2017, TCW terminated Tirschwell’s

employment. On December 15, 2017, TCW contracted with an outside workplace

investigator (“Investigator”) to conduct an investigation of Tirschwell’s sexual

harassment allegations.

In December 2017, Lippman appointed Ravich to the board of directors of

TCW and the LLC.

In January 2018, Tirschwell filed suit against TCW, Lippman, and Ravich for

gender discrimination and retaliation.

On August 29, 2018, Investigator presented a verbal interim report to TCW’s

board of directors on the investigation into Tirschwell’s sexual harassment

allegations. Investigator stated that Ravich had held business meetings with

Tirschwell at his apartment and over breakfast during her tenure with TCW.

Investigator noted that the investigation had produced insufficient information to

support a finding that the sexual harassment incidents alleged by Tirschwell had

occurred. Nonetheless, Investigator found that Ravich and Tirschwell had

exchanged flirtatious, personal text messages. In one message, Ravich offered to

pick up Tirschwell from the airport. In another, he signed off his message with

“Love u.”7

7 See Def. TCW LLC’s Opening Br. Supp. Mot. to Dismiss Compl. Ex. B.

4 By August 31, 2018, TCW had drafted an internal memorandum to employees

which described the disciplinary measures to be pursued against Ravich based on

Investigator’s report. Over the following weeks, TCW revised this draft. By

October 4, 2018, three investigations into Ravich’s conduct had occurred, and

Ravich had resigned from TCW’s board of directors.

On October 4, 2018, Lippman sent TCW employees a confidential internal

memorandum (the “Memo”). In the Memo, Lippman described the complaint filed

by Tirschwell, explained that he and TCW denied her allegations, and stated that

TCW had hired a law firm to investigate the facts. Lippman noted that TCW had

learned about “unprofessional communications” between Ravich and Tirschwell,

based on which TCW would be taking disciplinary measures against Ravich.

Lippman stated that Ravich had been on leave from the board of directors of TCW,

then had resigned. Lippman concluded the Memo by stating that TCW does not

tolerate harassment or discrimination and that employees should treat

communications on the matters referenced in the Memo with confidentiality.8

Later that day, TCW’s head of marketing and communications emailed copies

of the Memo to reporters from The New York Times, Bloomberg, and the Wall Street

Journal.9 Within a few hours afterwards, the Bloomberg reporter published an

8 Compl. Ex. 1. 9 Compl. Ex. 1, 2, 4.

5 article based on the Memo. On October 5, 2018, Bloomberg published an updated

version of another article to add Ravich’s name to a list of high-profile individuals

who had been accused of sexual misconduct.

On September 7, 2018, a law firm retained by TCW shared a report based on

the firm’s independent investigation of Tirschwell’s allegations against Ravich.10

On March 15, 2019, the chairman of TCW’s board of directors, Marc Stern

(“Stern”), met with Ravich. Stern told Ravich that if Ravich did not pay to settle the

sexual harassment litigation, TCW would terminate his employment.

On March 16, 2019, The New York Times published an article that described

Tirschwell’s sexual harassment allegations against Ravich. On March 21, 2019,

Stern told Ravich that TCW had located emails which created an appearance that

Ravich and Tirschwell had dated while Ravich’s now-deceased wife was alive.

Stern repeated his instruction that Ravich must settle the sexual harassment litigation

from his own funds or face firing. Ravich did not pay to settle the sexual harassment

litigation.

On June 10, 2019, TCW terminated Ravich’s employment. At the time of

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

Related

Ashall Homes Ltd. v. ROK Entertainment Group Inc.
992 A.2d 1239 (Court of Chancery of Delaware, 2010)
Ingres Corp. v. CA, INC.
8 A.3d 1143 (Supreme Court of Delaware, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
Ravich v. TCW, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ravich-v-tcw-llc-delsuperct-2024.