Houston and Salt Lake City Partner William S. Helfand, along with Houston Partner David J. Hargis and Associate Andrew W. Gray, recently secured a take nothing judgment on behalf of Lewis Brisbois' healthcare center client following an arbitration hearing in a sexual harassment matter. In the underlying case, the plaintiff, a former executive of the healthcare center, filed suit in the U.S. District Court for the Eastern District of Texas, alleging a sexually hostile work environment and retaliation, in violation of Title VII. Shortly thereafter, the center moved to compel arbitration in accordance with the parties' arbitration agreement. The court granted that motion. Later, the center filed counterclaims for fraud, breach of fiduciary duty, theft, and conversion. Additionally, before the arbitration hearing, the center filed a motion for summary judgment, which the arbitrator granted in part and dismissed the plaintiff's hostile work environment claim. Although Mr. Helfand had deposed the plaintiff before the arbitration, Messrs. Hargis and Gray conducted the final hearing as Mr. Helfand had a previously-scheduled, two-week federal jury trial at the same time as the arbitration.
During the hearing, the plaintiff alleged a number of bases for retaliation, including the plaintiff's alleged opposition to the CEO's improper relationship with a co-worker. Through cross-examination of the plaintiff and the nine other witnesses whom the plaintiff called to testify, Messrs. Hargis and Gray disproved the plaintiff's allegations. They ultimately established that the plaintiff voluntary resigned from his position after the center initiated an investigation into his use of company funds to purchase personal items with his work credit card at two major retailers. In fact, the plaintiff was using company funds to furnish his new home and spent hundreds of thousands of the center's funds to do so. As the evidence showed, the plaintiff used a Microsoft Word template to alter the receipts to appear as if the purchases were for company-authorized purchases. The plaintiff also altered the receipts to show that the purchased items were sent to the center's place of business when, in fact, those items were delivered directly to the plaintiff's residence.
After Mr. Hargis poked several holes through the plaintiff's web of lies, the arbitrator determined not only that the plaintiff's claims had no merit, but that the plaintiff had clearly misappropriated large amounts of the center's funds. Accordingly, the arbitrator entered a take nothing judgment as to the plaintiff's claims and awarded the center over six figures in damages.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
