By Melanie Nathan 3-19-10. Breaking Story – Marti Smye was a partner at Korn/Ferry International, the world’s largest executive recruitment firm, until she was fired; and last year Dr. Smye, courageously filed a lawsuit against the Goliath, Korn /Ferry, for discrimination based on sexual orientation.
“I believe I was fired due to my sexual orientation. During my time at Korn/Ferry, I heard about senior managers cautioning employees from associating with gay workers. I was told of closeted employees allegedly ‘outed’ in the presence of their colleagues. I even learned later that an executive at Telus Corporation, a Canadian telecommunications firm, was told by a Korn/Ferry representative that if he could use the firm’s candidate assessment tool to screen out gay and lesbian job applicants, he would.”
In a 2009 Wall Street Journal report by BY SARAH E. NEEDLEMAN ; “ A former senior client partner for Korn/Ferry International Inc. is suing the executive-search and consulting firm for allegedly firing her because she is gay.
The lawsuit, filed in March by Marti Smye in Los Angeles County Superior Court, claims that Korn/Ferry breached her employment contract by dismissing her last year and not paying her nearly $4 million she earned in bonuses. The case is set for trial on March 1.
Korn/Ferry’s “workplace was permeated with antigay animus,” the lawsuit says, describing alleged anti-gay comments made by top Korn/Ferry executives.”
The lawsuit claims that Jeff Rosin, president of Korn/Ferry Canada, cautioned employees against associating with gay employees, including Ms. Smye, and that Mr. Rosin fired another Korn/Ferry employee, Denise Tobin-McCarthy, after learning that Tobin-McCarthy and Smye were dating.Today the Superior Court of California, Los Angeles, through a successful summary judgment proceeding, threw out Dr. Smye’s action, before she was even heard on the facts of her case, based on Korn Ferry’s assertion that the California Court does not have jurisdiction to hear the case; that the law of Florida applies, due to a choice of law clause that appears in the employment agreement between Korn/Ferry and Smye.
Gary Gorham, Counsel for Dr. Smye told me in an interview today that “The trial court dismissed Marti’s discrimination claim prior to trial, but its ruling has nothing to do with the veracity of Marti’s allegations of anti-gay discrimination by Korn/Ferry. The court’s ruling was based on her employment contract, which called for application of Florida law. Florida does not recognize the right of gays and lesbians to equal treatment in the workplace.”
It is my opinion that ‘winning’ on a summary Judgment motion is not really a win, because the Petitioner, Dr. Marti Smye, has not had an opportunity to have her case adjudicated. In fact Dr. Smye has a right to appeal this ruling and if she loses on appeal, then her case will never be heard.
While Korn/ Ferry may tout this case as a win; it is not – a win happens when allegations against the company are proved to be false or wrong. But Korn/Ferry has chosen not to vindicate itself, and have instead relied on a technicality to avoid the evidence being heard.
This case is of critical importance, highlighting the desperate need for legislation, such as ENDA, to protect the rights of LGBT employees. What we have in this case is a situation where if the Florida law may apply, instead of California law. On the face of it, Smye’s case could feasibly have no merit in Florida because that State has no laws to protect her against discrimination.
However in California Dr. Smye would have an excellent case with much applicable law and probably much needed exposure would befall a business which touts itself as preeminent and the largest in the world in its field, while its practices infringe the rights and disrespect the law where they are headquartered. This company headquartered in Beverly Hills and refuses to adjudicate a case that would otherwise consider their alleged behavior toward Smye reprehensible. Now they continue to do business in a State where they act in flagrant disregard of the anti-discrimination laws.
In essence Dr. Smye, unknowingly may have waived her rights to the California laws, by signing on to a contract that gave her residential state jurisdiction (choice of law.)
These types of clauses are usually designed as a matter of locale convenience and not as an agreement to give up one’s rights. Did Korn / Ferry know in advance to what extent it would work to their advantage? By the same token Dr. Smye had no idea it would result in her losing critical rights; and that she was actually making a contract where she was choosing a State that had no laws to protect her because of her sexual orientation. Make sense she would knowingly sign such? Of course not!
The Judge stated in her ruling, “While Plaintiff may have felt “pervasive anti-gay animus from upper management in Los Angeles, Chicago, and Toronto, among other places” (Plaintiff’s SSUMF, No. 14), Plaintiff was terminated while in Toronto, Canada based upon events that allegedly occurred in Toronto. As such, even if Florida law was not applicable, Plaintiff has not shown that California law would be the appropriate law.”
In her own words Dr. Smye, “In an effort to get my case dismissed, Korn/Ferry succeeded to exploit a legal loophole that undermines California’s anti-discrimination laws and jeopardize workplace protections for LGBT employees who work remotely for California corporations in 29 U.S. states. If Korn/Ferry succeeds, a legal precedent will be set allowing businesses headquartered in states where sexual orientation protections do exist to require its employees working in states without anti-discrimination laws to sign away those protections through “choice of law” provisions.”
Dr. Smye wants to share her story, an example of how difficult it is to be gay or lesbian (LGBT) in the workplace. Clearly protections must be extended across the Country so that other Businesses cannot wangle around the laws that do not suite them:
” Today was a loss for me and the GLBT community. On a technical point I will not be allowed to fight discrimination based on sexual orientation because California has refused to hear my case and Florida does not protect my rights.
The management of Korn/Ferry has not only ignored our rights but has promoted a manager to President of NA consulting in-spite of a signed client affidavit that this manager engaged in discriminatory behavior.
This is a firm that makes judgments that affect the careers of many people…….including the professionals of the LGBT community”.
Counsel for Smye, Gorham also stated that “We are absolutely going to appeal this ruling to the Court of Appeals. There is too much at stake, both for Marti Smye and for the LGBT community, for us to accept this result.
We are surprised and disappointed by the Court’s ruling, and deeply concerned about the impact it may have on LGBT employees who are not residents of California but who work for companies headquartered in this state. Under California law gays and lesbians have the right to be treated the same as everyone else in the workplace. If today’s ruling is upheld, California companies will be able to contract around their discriminatory conduct toward out-of-state employees, by requiring employees to sign contracts agreeing to application of the law of some other state. Because few states recognize claims for discrimination based on sexual orientation, this result disproportionately impacts the LGBT community.
It is shameful that Korn/Ferry, the leading executive recruiting company in the world, would use a contractual loophole to avoid a trial on the merits. This case is far from over. Marti has suffered too long, and fought far too hard to give up before she has a chance to be heard.”
© lezgetreal all rights reserved*
Korn Ferry Board of Directors:
| George T. Shaheen | Gerhard Schulmeyer | Edward D. Miller |
| Harry L. You | Gary D. Burnison | Ken Whipple |
| Debra J. Perry | Baroness Denise Kingsmill |
You, dear readers are the Court of Public Opinion and for as long as the case has yet to be adjudicated on the merits let us hear from you!
Stay tuned there will be more…. Please report any incidents of discrimination to us at LGR- Nathan@privatecourts.com
Thank you to our Editor Paula Brooks for her keen eye.
Here is the link to the Complaint by Plaintiff Marti Smye against https://docs.google.com/fileview?id=0B8w3tCuj6Z1xMGMxNWYwNjctZWViOS00MmU2LWIxMjgtM2Q5MDZiOWYxZmEz&hl=en
By Melanie Nathan, nathan@privatecourts.
Human Rights and Equality Activist/Advocate
© lezgetreal This Article is exclusive to Lezgetreal;
it can be republished with the following credit:
Quoted from: Article written by Melanie Nathan, at www.lezgetreal.com
http://lezgetreal.com/?p=28885
Editor Paula Brooks.
Suzanne
October 25, 2010 at 7:43 pm
There is an inaccurate presumption here. What about competencies, capabilities and bringing in revenue? Gay or straight, people in consulting have been getting canned because companies are just not buying consulting services. She apparently was not a rainmaker/producer or she would not have been let go. Korn Ferry is a business, and like other consulting companies, if you are a revenue generator they could care less whether you are male, female, gay, straight, black, white whatever. Smye got fired and she failed to read the employment contract before she agreed to venue (despite being a PhD, hmmm…). Give me a break – this is not a “discrimination” issue and trying to make it so denigrates the many genuine and truly legitimate cases that do exist.
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Melanie Nathan
March 21, 2010 at 1:55 am
Debra J. Perry Elected to Korn/Ferry International Board
LOS ANGELES, February 6, 2008 — Korn/Ferry International (NYSE:KFY), a premier global provider of talent management solutions, today announced that it has appointed Debra J. Perry to its Board of Directors.
Ms. Perry worked at Moody’s Corporation (NYSE: MCO) from 1992 to 2004. From 2001 to 2004, she was a senior managing director in the Global Ratings and Research Unit of Moody’s Investors Service, Inc. where she oversaw the Americas Corporate Finance, Leverage Finance and Public Finance departments. From 1999 to 2001, Ms. Perry served as chief administrative officer and chief credit officer of Moody’s Investors Service and later Moody’s Corporation and from 1996 to 1999, she was a group managing director for the Finance, Securities and Insurance Rating Groups of Moody’s Investors Service.
Ms. Perry is also currently a member of the board of directors of Conseco, Inc. (NYSE: CNO) and MBIA Inc. (NYSE: MBI) and is a frequent speaker on topics related to enterprise risk management and audit committee oversight in the new governance environment.
“With Debra’s deep knowledge of the financial and professional services industries, she will be a strong addition to our Board,” said Paul C. Reilly, Chairman of Korn/Ferry. “Her unique perspective on risk and corporate governance will benefit not only our boardroom but also our entire organization.”
Prior to joining Moody’s, Ms. Perry was a director in Fixed-Income Research at the First Boston Corporation. Earlier in her career she worked in a variety of banking and capital markets functions at Chemical Bank in New York, Paris and London.
Ms. Perry holds an undergraduate degree from the University of Wisconsin at Madison, and a master’s degree from Yale University.
About Korn/Ferry International
Korn/Ferry International, with more than 80 offices in 39 countries, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to identify, deploy, develop, retain and reward their talent. For more information on the Korn/Ferry International family of companies, visit http://www.kornferry.com.
Melanie Nathan
March 21, 2010 at 1:53 am
Thanks Sb – we may as well do all of the Board backgrounds here kinda interesting: Not sure they would have anything to do with this, but I imagine its a good idea that they do at least have an idea as to little itsy bitsy lawsuits such as this
George T. Shaheen (born July 11, 1944), an American businessman, was chief executive at management consulting firm Andersen Consulting from 1989 to 1999, before moving on to now-defunct online grocer Webvan. His Webvan employment agreement, signed September 19, 1999 was filed with the SEC.[1] By going to Webvan, Shaheen missed out on the windfall of the Accenture initial public offering.[2] He holds a master’s degree in finance from Bradley University.[3] Shaheen is an American of Lebanese descent.[4]
Shaheen was CEO of Siebel Systems, Inc.[5] and served as CEO when it merged with Oracle. He did not stay on with Oracle after the merger.
stella bean
March 20, 2010 at 11:50 pm
On the Board of Directors of Korn Ferry
Denise Patricia Byrne Kingsmill, Baroness Kingsmill CBE is a British Labour peer. She was appointed as a life peer to the House of Lords in 2006 after a career as a lawyer specialising in trade union and employment law. She was born in New Zealand and emigrated to Wales during her childhood.
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Melanie Nathan
March 20, 2010 at 2:02 am
http://www.ekornferry.com/Library/Process.asp?P=Opportunity&S=RM689 I noticed this Ad placement on Korn/ Ferry’s website. What an irony they are recruiting for California companies – this one happens to be Hewlett Packard what hypocrites
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