Another former partner of Kasowitz Benson Torres is suing over partner compensation, this time in California, alleging that the firm was having cash flow issues in late 2017.

A representative for the firm has denied that it was having money problems.

David W. Fermino, a partner in San Francisco from June 2017 through August 2018, alleged in a complaint filed Thursday in Superior Court in San Francisco that the firm "refused" to pay him more than $190,000 in unpaid salary owed to him for 2017 and 2018.

Another former partner in Houston filed similar claims last week in Texas state court.

But Fermino also alleged the firm discriminated against him—the only openly gay African American partner in the San Francisco office—by failing to provide him with the same business opportunities as white, straight partners. And he has accused unidentified individuals at the firm of making defamatory statements about him after he raised questions about why he wasn't being paid the money the firm promised him in an offer letter he signed in June 2017.

"Plaintiff also overheard racist comments about African Americans on a number of occasions throughout his employment," the complaint alleged.

Fermino, now directing attorney of health at The Law Foundation of Silicon Valley, filed the complaint against Kasowitz Benson after the California Department of Fair Employment and Housing authorized him to sue.

The firm, in a written statement provided by a spokeswoman Monday, characterized Fermino's allegations as "outrageously false and completely contrary to the facts."

Fermino's attorney, Jennifer Schwartz, a partner in Outten & Golden in San Francisco, said Fermino is extremely disappointed in how Kasowitz Benson treated him. She said he asked her to comment on his behalf.

"Mr. Fermino is being forced—as apparently one other former partner is—to go to court to vindicate his rights and to ensure the Kasowitz firm honors the obligations he believe the firm undertook," Schwartz said.

Two days before Fermino filed his complaint, former Houston partner Kyung S. Lee sued the firm, alleging it failed to pay him all of the $550,000 it promised after he joined as a partner in Houston in 2018 and then fired him after he complained.

Lee, a bankruptcy lawyer who joined Kasowitz Benson in September 2018, alleged that the firm owes him at least $185,000 in unpaid compensation for his first year there, and also has failed to return his capital account to him.

A spokeswoman for Kasowitz Benson said in a statement last week: "Kyung Lee's allegations are false, and his claims are unfounded."

Schwartz said she is not aware of any other former Kasowitz Benson partners considering similar litigation against the New York-based firm.

According to the complaint, Fermino signed an offer letter in June 2017 to join the firm as a non-equity partner at an annual base salary of $400,000 for 2018 and prorated for 2017. The letter, attached to the complaint, also noted that he would be expected to make a $50,000 capital contribution in January 2019.

Almost immediately, the complaint said, Fermino realized he was being treated differently from white, straight partners, and the firm failed to provide him with the same business opportunities. For example, he alleged, he was excluded from attending a black-tie event celebrating African American in-house lawyers and partners. During 2018, he alleged, the firm "reneged" on numerous promises to assist him with developing business and to supply him with billable work.

The firm initially paid him $20,000 per month between his start date and December 2018, but later reduced it to about $10,000 per month in April 2018, and then to about $9,000, the complaint said.

In December 2017, Fermino alleged, he received an email addressed to all partners from executive director Alan Capilupi "stating that the firm was experiencing cash flow problems and that partners could expect to be 'trued up' (for amounts unpaid for 2017) on or before Jan. 31, 2018."

However, he alleged, the firm only paid him for a portion of the unpaid 2017 salary.

Responding to that specific allegation, Kasowitz Benson's spokesperson said: "The firm was not 'experiencing cash flow problems' in December 2017, as Mr. Fermino alleges, nor was any email ever sent that stated that the firm was 'experiencing cash flow problems' or that partners could expect to be 'trued up.'"

Fermino's complaint said most of the work he brought with him to the firm "disappeared" in 2018 because the client handled the matters without litigation. However, Fermino alleged that despite San Francisco managing partner Lyn Agre's assurance that there was plenty of work to keep him busy, she and others "intentionally blocked" his efforts to identify, obtain and take other work.

Fermino alleged the firm additionally began making false and defamatory statements about him "apparently in an attempt to justify his firing and with the intent to impugn his professional integrity."

In August 2018, Kasowitz Benson terminated Fermino's employment, with the firm maintaining he billed too few hours, the complaint said.

In a statement about the complaint, Kasowitz Benson said it did not breach any partnership obligations to Fermino, and said the former partner instead breached his obligations to the firm and its partners.

"During the 15 months he was at the firm, Mr. Fermino frequently did not even show up for work. He was regularly asked by firm partners in San Francisco and New York to work on client matters—including a major trial in northern California, but instead chose to take vacation," the firm wrote.

According to the firm, Fermino recorded 673 hours during his time at the firm, averaging about 10 hours a week, and also took about 11 weeks of vacation and personal leave during his year and a quarter at the firm.

The firm also stated that Fermino "completely misrepresented" the size and nature of the work he brought to the firm and "contrary to his promises, he had no client to speak of,"  and that any failure to attract clients was his own fault.

Additionally, the firm stated that it "in no way" discriminated against Fermino and it does not tolerate any kind of discrimination.

Fermino's complaint includes claims of breach of contract, breach of covenant of good faith and fair dealing, discrimination based upon sexual orientation, and failure to timely pay wages.

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