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October 29, 2008
Charney Fakes an Arbitration
OnPoint Legal News reports that the arbitration of a sexual harassment claim filed against fashion mogul Dov Charney, CEO of American Apparel, was a complete fabrication.
The claimant, Mary Nelson, alleged in her suit that Charney conducted a "reign of sexual terror", parading around the office in his underwear and showing up for one meeting in his home wearing a "sock" where a sock shouldn't be.
Shortly before the case was to be tried, the parties publicly announced that they had agreed that the case would be decided in arbitration. In actuality, they had settled: Charney would pay Nelson $1.3 million, and Nelson would agree to let Charney unilaterally pick an arbitrator who would rule in Charney's favor. Charney would then publicly proclaim that he had won the case. It all unraveled and went back to court; California's Second District Court of Appeals now has ordered the case to be arbitrated, this time presumably for real.
The case is Nelson v. American Apparel, Inc.
Hat tip: Dana Nguyen.
rb
October 29, 2008 in Arbitration | Permalink
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Comments
a convoluted follow-up, throwing this story into doubt:
http://jezebel.com/5071232/dov-charneys-court-case-is-totally-complicated
Posted by: eli | Oct 31, 2008 5:39:30 PM
The facts are not quite what you have stated. Here's a link to the opinion:
http://www.onpointnews.com/docs/charney2.pdf
Posted by: Marilyn Mann | Nov 4, 2008 12:58:50 PM
another interesting link that may beg a follow up story or investigation from you.
http://keithfinkfiles.blogspot.com/2008/11/keith-fink-files.html
nelson's attorney made her lie, got caught and was fined thousands of dollars earlier in this case.
Posted by: dom | Nov 24, 2008 4:26:00 AM
