Jury Reaches Verdict on Faruqi Sexual Harassment Case Under New York City Ordinance

Author: Ashley Shaw, XpertHR Legal Editor

February 10, 2015

The jury in the highly publicized sexual harassment case, Marchuk v. Faruqi & Faruqi, has reached a verdict in favor of the plaintiff on her hostile work environment claim under the New York City Human Rights Law (NYCHRL). However, the jury did not side with the employee on her state and federal law claims. This case should serve as a reminder to an employer that it should remain compliant with municipal, state and federal antidiscrimination laws.

Law firm Faruqi & Faruqi hired Alexandra Marchuk in 2011 as an associate. During her short time there, Marchuk claimed that a partner at the firm, Juan Monteverde, made inappropriate sexual jokes at work, grabbed her breast outside of a bar without her consent and ultimately "quickly and forcefully had sex with her" in his office after a holiday party. Further, she alleged that the violent attack resulted in a bloody stain on Monteverde's office carpet that was subsequently removed by the firm in an attempt to cover up the act of workplace violence. The employee quit, through email, a week after the holiday party.

On the other hand, the employer claimed that the relationship appeared to be consensual, which was supported by testimony from other employees. Monteverde claimed that the alleged attack was in fact consensual conduct, which echoed what the employee told her doctor after the event. Finally, the employer claimed that the carpet was destroyed at the employee's request.

The employee filed sexual harassment claims under local, state and federal antidiscrimination laws against the firm and its partners for compensatory and punitive damages. The relevant federal and state laws prohibit "severe or pervasive" conduct that creates a hostile work environment. Although the employee did not prevail on her state and federal claims, she did prevail under her NYCHRL claim. The employee met the NYCHRL standard that she was subjected to a hostile work environment because she was treated "less well" based on her sex. The jury awarded $140,000 to the employee on her claim under the NYCHRL.

In addition to the loss in court, Faruqi & Faruqi also suffered a loss in reputation and business productivity as a result of the long trial. The resulting liability from this case could serve as a warning to other employers that choose to overlook a relationship between a supervisor and his or her direct report.