Ex-Acting General Counsel's Use of Alleged Privileged Information in Complaint Doesn't Bar Sex Discrimination Suit
Jennifer Fischman's gender discrimination claim against her former employer, Mitsubishi Chemical Holdings America Inc., may proceed after a federal judge rejected the New York-based company's argument that the complaint should be tossed because it uses alleged privileged and confidential information learned during the job.
July 16, 2019 at 02:26 PM
4 minute read
The former acting general counsel and chief compliance officer at New York-based Mitsubishi Chemical Holdings America Inc. may proceed with her gender discrimination lawsuit against the company following a federal judge's recent ruling.
But Jennifer Fischman's tort claims of intentional infliction of emotional distress and negligent destruction of employment opportunity, as well as her state law claim of retaliation, were slashed from the suit by Judge Jesse Furman of the U.S. District Court for the Southern District of New York.
In denying Mitsubishi's motion to dismiss the sex discrimination claim, however, Furman rejected its argument that the 2018 complaint should be tossed because it uses alleged privileged and confidential information learned during the job in the pleading.
“Defendants' primary argument—that the case must be dismissed because Fischman relies in the Complaint, and is likely to rely in the future, on privileged or confidential information—fails for three independent reasons,” according to Furman's order. “First, Defendants waived any privilege with respect to the contents of the Complaint by failing to take immediate steps to remedy any misuse by Fischman. Second, the Complaint does not actually include any privileged or confidential information. And third, even if it did and Defendants had not waived the issue, dismissal would not be the appropriate remedy at this stage of the proceedings.”
Fischman accuses Mitsubishi of passing her over for the permanent role of GC and chief compliance officer in favor of a less qualified, younger and less experienced male attorney. The suit also alleges that Fischman was illegally fired after speaking out against wrongful discrimination against her and other female employees. Mitsubishi's current GC and president are also named defendants.
In his ruling, Furman noted that all but three of the statements at issue involved narratives of recent events, rather than communications, and thus are not subject to the attorney-client privilege.
“The three redactions that do involve communications recount informal conversations between employees about sexism in the company; those communications are not comments made for the purpose of obtaining or providing legal advice. Accordingly, none of the redacted information is actually protected by attorney-client privilege,” he wrote.
He continued: “Indeed, the argument that the Complaint includes privileged information is so weak that Defendants shift in their motion to dismiss to focus instead on the argument that the obligation to protect client confidences 'goes far beyond protecting communications that are subject to the attorney-client privilege.'”
In a statement emailed to Corporate Counsel, Mitsubishi, represented by Francis Giambalvo of the New York office of Gordon Rees Scully Mansukhani, said it continues to believe that Fischman's “improper reliance on confidential information learned as former in-house counsel justified pre-answer dismissal of the remaining causes of action for gender discrimination and retaliation.”
The company “remains confident that once the facts of this case are presented, it will be wholly vindicated in its position that the remaining allegations in the Complaint are meritless,” according to the statement.
Matthew Berman, who along with Sara Wyn Kane and Robert Valli Jr. of Valli Kane & Vagnini, is representing Fischman said they are “thrilled” that the gender discrimination claim is moving forward.
“There are not too many cases that discuss the use of privileged information” in-house, Berman said in an interview. “This judge really laid out good law: Only communications that are seeking or rendering legal advice are privileged. It clarifies something that all lawyers should know but [about which] there is very little case law.”
In addition to finding that the privilege was not applicable, Furman also ruled that even if Fischman's complaint did include privileged or confidential information, and defendants had not waived the issue, dismissal would be inappropriate at this stage of the proceedings.
“Here, Fischman alleges behavior that, if true (and the Court must assume that it is true at this stage of the litigation), could form the basis of meritorious litigation,” the judge wrote. “Thus, even if the allegations rely in part on improperly disclosed client information—or Fischman is likely to rely on such information to prove her case—it would be 'to the detriment of the justice system' to dismiss the Complaint.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllNew Mexico Levies Record $48M Emissions Fine Against Natural Gas Giant
CSX Joins Rest of Big Four Railroad Companies in Installing New Generation of Legal Leadership
Lockmaker's Veteran GC Takes Old Job Back After Successor Lasts Just 3 Months
2 minute readKristin Coleman Out as GC of Albemarle Amid Leadership Reshuffle
Trending Stories
- 1The Key Moves in the Reshuffling German Legal Market as 2025 Dawns
- 2Social Media Celebrities Clash in $100M Lawsuit
- 3Federal Judge Sets 2026 Admiralty Bench Trial in Baltimore Bridge Collapse Litigation
- 4Trump Media Accuses Purchaser Rep of Extortion, Harassment After Merger
- 5Judge Slashes $2M in Punitive Damages in Sober-Living Harassment Case
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250