OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR JUDGMENT AS A MATTER OF LAW
After Plaintiff rested her case, Defendants moved for judgment as a matter of law (“JMOL”) as to all Defendants on all claims. For the following reasons, and the reasons stated on the record during the oral argument on January 23, 2015, Defendants’ motion is granted in part and denied in part,
LEGAL STANDARD
Fed.R.Civ.P. 50 permits a court to “enter judgment as a matter of law when a party has been fully heard on an issue during a jury trial and the court finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue.” Newton v. City of New York,
DISCUSSION
1. Title VII Hostile Work Environment Claim
Plaintiff alleges Title VII violations against Plaintiffs employer, Faruqi and Faruqi. Defendants argue that Plaintiffs hostile work environment claim should be dismissed on two grounds.
First, Defendants argue that she has failed to introduce evidence establishing a prima facie case of hostile work environment. But Plaintiff has offered sufficient proof for a reasonable juror to conclude that she was (1) subjected to sufficiently severe or pervasive conduct that a reasonable person would find her work environment hostile or abusive; (2) Plaintiff herself perceived her work environment hostile or abusive; and (3) she was subjected to that conduct at least in part due to her sex. See Patane v. Clark,
Defendants also argue that the federal claim must be dismissed because Title VII does not impose individual liability and Plaintiff has not offered sufficient evidence to impute Mr. Monteverde’s conduct to Faruqi & Faruqi. Defendants are wrong. When harassment by a supervisor culminates in tangible employment action, an employer is strictly liable. Vance v. Ball State Univ., — U.S.-,
Defendants’ invocation of the Faragher/Ellerth doctrine is misguided. Together, Faragher v. Boca Raton,
The motion for JMOL on Plaintiffs Title VII discrimination claim (Count Three of the Complaint), is denied.
2. NYSHRL Hostile Work Environment Claims (Complaint, Count Two)
“Hostile work environment claims under both Title VII and the [New York State Human Rights Law (“NYSHRL”) ] are governed by the same standard.” Summa v. Hofstra Univ.,
In this case, Plaintiff has introduced sufficient evidence for a jury to find that Mr. Monteverde created a hostile work environment. ■ However, she has failed to present any evidence to allow a reasonable jury to conclude that Faruqi & Faruqi or its principals, Nadeem and Lubna Faruqi, encouraged, condoned, or approved of the alleged discriminatory
It is undisputed that this was the extent of either Faruqi’s alleged' knowledge of the subject until Plaintiff filed her lawsuit. Based on this evidence, no reasonable juror could find that Mr. or Ms. Faruqi, or the Faruqi & Faruqi law firm, encouraged, condoned or approved of Mr. Monteverde’s alleged conduct. Accordingly JMOL is granted with respect to the Faruqi & Fa-ruqi law firm, and with respect to Nadeem and Lubna Faruqi in their individual capacities. JMOL is denied with respect to Mr. Monteverde.
3. NYCHRL Hostile Work Environment Claims (Complaint, Count One)
The New York City Human Rights Law (“NYCHRL”) is somewhat more complicated, as its legislative history indicates that it was intended to be construed liberally, and in some cases more broadly, than Title VII or state law. See Mihalik v. Credit Agricole Cheuvreux N. Am., Inc.,
But the law is not so broad that it imposes strict liability on an individual for simply holding an ownership stake in a liable employer. None of the cases cited by Plaintiff, nor any cases that this Court is aware of, go that far. Generally, when courts permit cases to proceed against- individuals under the NYCHRL, it is because “they participate in the conduct giving rise to a discrimination claim.” See Feingold v. New York,
The case law addressing individual liability under the NYCHRL is undeveloped. However, it cannot be the case, as Plaintiff argues based on the naked text of the statute, that liability attaches to a company’s shareholder in his individual capacity without any inquiry into his personal culpability, as such a reading would be inconsistent with state corporate law. “The law permits the incorporation of a business for the very purpose of enabling its proprietors to escape personal liability.” Walkovszky v. Carlton,
JMOL is granted on Count One with respect to Mr. and Ms. Faruqi in their individual capacities. JMOL is denied with respect to Mr. Monteverde and the Faruqi & Faruqi law firm.
4. Front Pay
Front pay damages “cannot be unduly speculative.” Dunlap-McCuller v. Riese Org.,
In this case, Plaintiffs primary evidence to support front pay damages is the testimony of a legal recruiter who attempted to estimate how much a fourth-year associate from a top 20 law school would earn in the lateral market. The evidence has some glaring holes in it. For example, the expert made no inquiry into Faruqi & Faruqi’s pay structure, so he had no foundation for estimating how much she might expect to earn had she stayed at Faruqi & Faruqi. Nor, without a salary history, could he form a reliable upon what she might expect from another firm upon exiting Faruqi & Faruqi. The recruiter also did not inquire into the turnover rate of Faruqi associates, nor any reasonable expectation of tenure, which renders Plaintiffs claim for four years of front pay speculative. The expert had no knowledge about the careers that outgoing Faruqi & Faruqi attorneys were able to secure. He made no inquiry into the types of jobs Plaintiff was seeking, which is particularly problematic because he based his calculation on Plaintiff transitioning to another firm that does similar work, despite Plaintiffs own admission that she had no desire to work in that practice area. Trial Tr. at 271:8-21. And the variance in his projected salary range is nearly 100 percent ($85,-000 to $160,000). Id at 1140:17.
Plaintiff has offered little evidence apart from the legal recruiter that would allow a jury to calculate front pay, either. For example, she has offered no evidence that she would have earned a raise at Faruqi & Faruqi where, as a plaintiffs class action firm, compensation is largely based on the firm’s performance, which had become unprofitable. She has offered no evidence that she would have even continued working at Faruqi & Faruqi had the alleged sexual harassment not occurred, nor has she offered any evidence about the average length of associate tenure. The only tangible evidence she has offered is the salary of an associate four years her senior in the firm’s Delaware office, who performed specialized work as a Delaware
I fear that, without tangible evidence in the record, there is significant risk that any front pay award will be largely speculative. However, rather than dismiss Plaintiffs claim for front pay damages at this stage, a better course is to defer determination of the issue until after verdict, and to require the jury to identify in their verdict the portion of any damages award attributed to Plaintiffs front pay claim. Accordingly, the determination of this aspect of Defendants’ motion is reserved.
5. Back Pay
A plaintiff may recover for lost salary between the date of the alleged discrimination and the date of judgment if her working conditions were so intolerable that a reasonable person would have felt compelled to resign. Pennsylvania State Police v. Suders,
6. Retaliation under Title VII and NYSHRL (Complaint, Count Four)
Plaintiff has alleged that, as a result of her lawsuit, Defendants unlawfully retaliated against her by filing defamation and tortious interference counterclaims and issuing a press release about those counterclaims. In order to prove unlawful retaliation under Title VII and the NYSHRL,
1)Plaintiff engaged in a protected activity to oppose an unlawful discriminatory practice;
2) Plaintiff suffered an adverse employment action; and
3) Plaintiffs protected activity was the but-for cause of the alleged adverse action by the employer.
See Lore v. City of Syracuse,
First, although it is true that a Title VII lawsuit ordinarily qualifies as a protected activity if the plaintiff has a good faith, reasonable belief that the defendants’ actions violated the law, Kelly v. Howard I. Shapiro & Assocs. Consulting Eng’rs, P.C.,
The text of Title VII’s antiretaliation provision says that ,“[i]t shall be an unlawful employment practice for an employer to discriminate against any of his employees or applicants for employment ... because he has opposed any practice made an unlawful employment practice by this chapter.” 42 U.S.C. § 2000e-3(a). In this case, Ms. Marchuk had not been Defendants’ employee for more than a year by the time the counterclaims were filed. By then, she was working at a different job in a different field in a different state. Defendants lacked control over any aspect of Ms. Marchuk’s working conditions, and indeed Ms. Marchuk does not identify any aspect of her working conditions that changed after the counterclaim was filed. The counterclaims thus did not constitute adverse employment action under Title VII.
But even if post-resignation counterclaims could form the basis for a Title VII retaliation claim, they would not in this case because no reasonable juror could find that Defendants’ counterclaims were completely baseless given the facts in the record. The evidence indicates that a copy of the complaint was scanned approximately 45 minutes after being filed with the court on a scanner that did not belong to Defendants, by someone who knew the email addresses of Faruqi & Faruqi clients, opposing counsel, and Mr.- Monteverde’s wife. Trial Tr. at 960:18-961:12. The universe of individuals with such knowledge, who would also have been aware of the complaint’s existence so soon after its filing, is small. Regardless of whether Plaintiff or her agent in fact sent the emails that precipitated the counterclaims, Defendants clearly had a good faith basis for believing that they did. Plaintiffs Title VII and NYSHRL retaliation claims therefore fail as a matter of law. See
JMOL is granted with respect to the Title VII and NYSHRL retaliation claims.
7. Retaliation under NYCHRL (Complaint, Count Four)
As with discrimination, the NYCHRL’s protections against retaliation are intended to be broader than its federal and state counterparts. See Mihalik v. Credit Agricole Cheuvreux N. Am., Inc.,
As explained in Part 6, supra, Defendants had a rational basis for bringing their defamation and tortious interference counterclaims against Ms. Marchuk because they believed in good faith that that Ms. Marchuk had disseminated her complaint outside the judicial process. Plaintiff argues in response that the claims were nevertheless motivated in part by an impermissible motive because they made Plaintiff less likely to pursue her counterclaims and were likely to discourage others from bringing similar lawsuits in the future. See Williams v. New York City Housing Auth.,
“At some level of generality, any action taken by an employer for the purpose of defending against the employee’s charge can be characterized as adverse to the employee.” United States v. New York City Transit Auth.,
Apart from those legal shortcomings, important practical complications preclude Plaintiff from proving damages here. The crux of Plaintiffs retaliation theory is that Defendants’ counterclaims and corresponding press release exposed her and her lawsuit to unwelcome attention that has hurt her employment prospects in order to
JMOL is granted as to Plaintiffs retaliation claim under NYCHRL.
8. Defamation (Complaint, Count Five)
In order to recover for defamation in New York, Ms. Marchuk must prove five elements by a preponderance of the evidence:
1) Defendants made a statement that tends to expose Ms. Marchuk to public hatred, contempt, ridicule, or disgrace. A statement that is merely unpleasant, offensive, embarrassing, or hurts Ms. Marchuk’s feelings is not necessarily defamatory.
2) Defendants published the statements to somebody other than Ms. Mar-chuk.
3) The statements were false.
4) Defendants were at least negligent in determining whether the statements were, in fact, true.
5)Ms. Marchuk suffered “special damages,” meaning specific, quantifiable harm, or else the statements constituted defamation per se, meaning, in this case, that they tended to injure Ms. Marchuk in her profession.
See Thai v. Cayre Grp. Ltd.,
Per se damages with respect to professional reputation are limited to statements that describe the plaintiff as unfit for “the proper conduct of the business, trade profession or office itself. The statement must be made with reference to a matter of significance and importance for that purpose, rather than a more general reflection upon the plaintiffs character or qualities.” Liberman v. Gelstein,
Neither has Plaintiff proven special damages. “Special damages consist of the loss of something having economic or pecuniary value which must flow directly from the injury to reputation caused by the defamation.” Celle,
For these reasons, JMOL is granted with respect to Plaintiffs defamation claim.
CONCLUSION
Defendants’ motion for judgment as a matter of law is granted as to all Defendants on Plaintiffs claims for retaliation and defamation, as to Lubna Faruqi, Na-deem Faruqi, and Faruqi & Faruqi LLP on Plaintiffs NYSHRL hostile work environment claim, and as to Lubna Faruqi and Nadeem Faruqi on Plaintiffs NYCHRL hostile work environment claim. Defendants’ motion is denied with respect to Plaintiffs Title VII hostile work environment claim, Plaintiffs request for back-pay, Plaintiffs NYSHRL hostile work environment claim as to Juan Monteverde only, and Plaintiffs NYCHRL hostile work environment claim as to Juan Monteverde and Faruqi & Faruqi LLP only. Decision is reserved with respect to Plaintiffs request for front-pay damages.
As a result, the case will proceed against Defendant Monteverde and Defendant Fa-ruqi & Faruqi, LLP only, limited to Plaintiffs claim of a hostile work environment.
The Clerk shall mark the motion (Doc. No. 141) terminated.
SO ORDERED.
Notes
. Especially because the alleged conduct occurred in the office itself, and as an outgrowth of the annual firm party.
. The text of the statute classifies individuals with power to make personnel decisions as employers in addition to those who have an ownership stake in the business.
. Retaliation under NYSHRL tracks the requirements of Title VII. See Giudice v. Red Robin Int'l, Inc.,
. The Second Circuit has not expressly decided the issue.
. In Robinson v. Shell Oil Co.,
. News outlets were reporting on Plaintiffs lawsuit within hours of its filing, weeks before Defendants filed their counterclaims. See David Lat, Lawsuit of the Day: A Super-Salacious Suit against a ‘Legend’ of the Bar, Above the Law (Max. 13, 2013), http://abovethelaw. com/2013/03Aawsuit-of-the-day-a-super-salacious-suit-against-a-legend-of-the-bar/; Martha Neil, Ex-associate Files Sexual Harassment Suit against Faruqi & Faruqi Firm and Prominent Partner, ABA Journal (Mar. 14, 2013), http://www.abajournal.com/ news/article/ex-associate_files_sexual_ harassment_suit_against_faruqi_firm_and_ prominent/.
