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Charney v. Sullivan & Cromwell: What Lessons Lie Here for Your Firm?
Unless you are a regular reader of legal Web sites, you might not have followed, or might not even be aware of, a suit by former Sullivan & Cromwell associate Aaron Charney against his firm, and the firm's subsequent suit against Charney. Gossip aside, the case, which settled on Oct. 25, 2007, should be noted by law firms, if for no other reason, than to learn how not to handle discrimination and retaliation complaints. This article reviews the Charney case and applicable federal cases that might apply in such situations, and points out the hidden dangers of local ordinances that attempt to regulate human behavior, and (arguably) even thought, in the workplace.
The Two Lawsuits
In January 2007, while still employed as an associate at Sullivan & Cromwell, Charney sued his employer for discrimination based upon his sexual orientation, and for retaliation in violation of Title 8 of the Administrative Code of the City of New York, the New York Human Rights Law. Sullivan & Cromwell then filed its own separate complaint (not a counterclaim) against Charney, alleging breach of fiduciary duty, breach of contract, and breach of client confidences. Both sides dug in their heels. How all of this public and embarrassing warfare might have been avoided is discussed below.
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