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    Traci Ribeiro lawsuit against Sedgwick

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    Traci Ribeiro lawsuit against Sedgwick

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    Download as pdf
    133 views50 pages

    Redacted Plaintiff's Amended Class and Collective Action Counterclaims

    Uploaded by

    Scott Flaherty
    Traci Ribeiro lawsuit against Sedgwick

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    © All Rights Reserved
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    oe ke Bee xa David Sanford (DC 457933) (pending OSAAC approval) dsanford@sanfordheisler.com Aimee Krause Stewart (NY 5190319) (pending OSAAC approval) astewart@sanfordheisler.com SANFORD HuISLER, LLP 1666 Connecticut Ave NW, Suite 300 Washington, DC 20009 Telephone: (202) 499-5200 Facsimile: (202) 499-5199 Felicia Medina (CA 255804) finedina@sanfordheisler.com Xinying Valerian (CA 254890) xvalerian@sanfordheisler.com - Danielle Fuschetti (CA 294064) lfuschetti@sanfordheisler.com SANFORD HEASLER, LLP 111 Sutter Street, Suite 975 San Francisco, CA 94104 ‘Telephone: (415) 795-2020 Facsimile: (415) 795-2021 es J. Bryan Wood (IL 6270845) (pending OSAAC approval) bryan@jbryanwoodlaw.com ‘Tie Wood Law OFFICE, LLC 303 W, Madison St, Suite 2650 Chicago, linois 60606 Telephone: (312) 554-8600 Facsimile: (312) 577-0749 Attorneys for the Counter-Claimant, the Class, and the Collective SEDGWICK, LLP, JAMS Case No. 1100084095 Claimant and Counter- Respondent, AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS, gainst— ‘TRACI RIBEIRO, on behalf of herself and all others similarly situated, Respondent and Counter Claimants, AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS ‘CASE NO, 1100084095 Awe en Counter-Claimant Traci Ribeiro (“Counter-claimant” or “Ribeiro” by her altomneys at Sanford Heisler, LLLP, brings these counterclaims in her individual capacity and on behalf of a class of current and former female attorneys other than equity Partners (“the Class”) of Sedgwick, LLP (“Sedgwick” or “the Firm”) to redress the Firm's systematic gender discrimination. Ribeiro alleges upon knowledge as to herself and her own acts, and otherwise upon information and belief, as follows: IL INTRODUCTION lL Counter-claimant Traci Ribeiro has 21 years of experience and currently the 8 pra surance coverage field. In January 2011, Ribeiro joined Sedgwick, an international law ficm employing over 300 attorneys across 14 offices, as a contract Partner in Sedgwick’s Chicago office. American Lawyer now ranks Sedgwick as the 152nd largest revenue-grossing firm in the United States. 2. Ribeiro has demonstrated her outstanding value at Sedgwick. For the past four years, Ribeiro was one of the highest revenue generators for the Firm. In 2015, her total revenue execeded that of all but two other attorneys at the Firm. 3. ‘The demands of Ribeiro’s practice meant that she was working long hours to maintain her level of success at the Fitm, She has consistently exceeded the Firm’s expectations for billable hours, in addition to completing other responsibilities. For example, in 2015 alone, Ribeiro spent almost 200 hours on client development. She has also shown commitment to the Firm in other ways: she recruited five Associates to the Firm since 2012, served on the Firm’s pro bono committee as Sedgwick’s Chicago office representative, and utilized attorneys in multiple Sedgwick offices. 4, Although Ribeiro’s success outpaces her male colleagues’, she is not paid or promoted the same as they are. In her six-years of employment, Sedgwick has relied on Ribeito for revenue, but prevented her from sharing in the profits of her success. During that period, the Firm promoted to the equity Partnership men who were required to perform substantially similar work, but were not performing at the level Ribeiro was: they were AND COLLECTIVE ACTION COUNTERCLAIMS CASE NO, 1100084095 AMENDED Ci era nkern 10 MW R 13 14 15 16 7 18 19 20 a 22 23 24 25 26 27 28 bringing in significantly less business and revenue than she was, Denied promotion to the equity Partnership and therefore excluded from the possibility of moving into leadership positions in the Firm, Ribeiro and other female attorneys have been denied the prestige, higher compensation, and other benefits that men who obtain such status enjoy. ‘They have also been kept from changing the cycle of discrimination that persists at Sedgwick, Ribeiro has called out and opposed these gender- ased pay and promotion inequities at Sedgwick ‘and has asked the Firm's management, including former Cl ir Michael Tanenbaum and ‘current Chait Michael Healy, to rectify these issues, 5. In response to her complaints, Firm management stated that Ribeiro needs to learn to “behave,” recommended lowering her compensation, and repeatedly denied her promotion to equity partner. 6. Unsuccessful in making change from within the Firm, Ribeiro filed a class- wide charge of discrimination with the U.S. Equal Employment Opportunity Commission and parallel state agencies in Illinois and California, requesting an investigation of the deeply ingrained and systemic gender discrimination at Sedgwick. Sedgwick responded by filing suit against her in arbitration 7. Ribeiro brings these counterclaims to put an end to gender inequities at the n and seeks relief on behalf of herself and other attorneys who have been disparately underpaid and systematically denied promotions. A, Sedgwick Exemplifies Systemic Discrimination Against Female Partners in ‘Terms of Pay and Promotions to Positions of Authority 8 Women continue to encounter the “glass ceiling” at large Jaw firms. A recent American Bar Association study found that at law Firms nationwide, female attorneys comprise 44.7% of law firm associates, but only 21.5% of partners and 18% of equity partners.’ In the last decade, large law firms have made almost no progress towards ‘Comm'n on Women inthe Profession, Am. Bar Ass'n, 4 Current Glance at Women in the Law 2076 (May 2016), available at ttp:/www.americanbar.or@/groups/women/resouroes/tatstcs.html, 2 AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS CASE NO. 1100084095 Sow aanuna wn uw 12 13 14 16 v 18 19 20 21 22 23 24 25 26 27 28 increasing women’s paltry representation among the ranks of equity partners—the current 18% figure is only 2 percent higher than the 16% rate in 2006.” 9, ‘The small percentage of women who do advance to law firm partnership are often relegated to lower levels when compared to their male counterparts. A 2010 survey found that, for women partners who worked at firms with multi-tier partnership systems, ‘only 45% were equity partners. By comparison, 62% of men in those same firms were equity partners. 10. Women are also paid significantly less than their male counterparts, A 2015 survey by the National Association for Women Lawyers found that the typical female earns less than a typical male attorney at the same level, from lower ranks of associates up to equity partners." Another study confirmed these findings, noting that differences in pay are exacerbated as women lawyers advance in their careers.* Even taking into account revenue generated per lawyer, a 2010 statistical analysis of data from Am Law 200 firms found that “women partners are compensated less than male partners despite women being 6 More at least as productive as male pariners in generating revenue for the firm.’ sitikingly, 2 2016 study of partner compensation from Major, Lindsey & Africa found that the average compensation for male law partners is about 44% higher than that of female partners: $949,000 vs, $659,000." A big part of this differential was due to male partners 2 Na’l Ass'n of Women Lawyers, Women Lavyers Continue to Lag Behind Male Colleagues: Report of the ‘Ninth Annual NAWL Netional Survey on Retention and Promotion of Women in Law Firms (2015), available cat hsp/fwww.nawlorgip/omMdid=506. 3 Vivia Chen, Looking into the Equity Box: Women and Partnership Status, Aw. LAW. (Sept. 1, 2010}; see also Deborah L. Rhode, From Plaitudes to Priorities: Diversity and Gender Equity in Law Firms, 24 Geo. J. Legal Ethics 1041, 1043 (2011). Nav Ass'n of Women Lawyers, supra n.2. 5 Barbara Dona etal, Examining Pay Differentials inthe Legal Fleld, 3 Ind. J, of L. & Sov. Equality 216, 230 (2015). © Nfacina Angel etal, Statistical Evidence on the Gender Gap in Law Firm Compensation, at 22 Termple ‘University Legal Studies Research Paper No. 2010-24 (Sept. 9, 2010), Itps://papers.ssm.com/sol3/papers.cfm?abstract_id=1674630. 7 Jeftey A. Lowe, Esq., Major, Lindsey & Affica, 2016 Partner Compensation Survey (2016), available at Inps:/wivwranlaglobal conn/publications/research/compensation-survey-2016. 3 AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS CASE NO. 1100084095 25 26 27 28 receiving more credit for rainmaking than female partners did, a product of the old boys’ network that permeates many law firms.* 11. Yet even in a field where inequities between male and female attorneys persist, Sedgwick stands out for its culture of discrimination against female attorneys. While the Firm advertises a commitment to diversity, the reality is far different, Notably, ‘Sodgwick is conspicuously absent from the National Law Journal’ list of the top 100 law firms on its most recent “Women in Law Scorecard.” 12, Female attomeys at Sedgwick regularly receive less compensation than similarly situated male attorneys. It goes beyond Partners: Ribeito herself has advocated on behalf of two female Associ es who were paid less than their male counterparts. This pay disparity is the direct result of Sedgwick’s male-dominated Firm leadership, and its failure to promote women to the equity Partnership, Women at Sedgwick earn less than ‘men and are virtually shut out of these highly-paid, influential positions at the Firm, which perpetuates the gender pay and promotion divide. 13. Sedgwick’s gender disparities are neither coincidental nor limited to any one office. Nationwide, the Firm’s leadership is made up almost entirely of men. Only ‘one of the five members of the 83-year-old firm’s Executive Committee is a woman, and she was only recently appointed as the first female Executive Committee member in the Finns history, shortly after Ribeiro lodged complaints of gender discrimination. 14, The gender composition of Sedgwick Pariners mirrors this disparity. For ‘example, in Sedgwick’s San Francisco office, male Partners outnumber female Partners by a ratio of more than 3:1, even though there are more female Associates than male Associates in the San Francisco office. Of the eighteen equity Partners in San Francisco, only three are women, Men are not only promoted at higher rates, but the bar for promotion * Blizabeth Olson, 4 44% Pay Divide for Female and Male Law Partners, Survey Says, NYTIMES.COM, (Cet. 12, 2016), hitp:/www.nytimes.com/20 16/1011 3/business/dealbook/female-Iawpartners-earn-44-Less- thanthe-men-survey-shows.him!?_=0. The American Lawyer, The Best Firms in Big Law for Women, AMERICANLAWYER.COM (August 30, 2016, 7:58 PM), htip://www.americanlawyer.con/homelid=1202762963381 (iting the top 100 firms an the National Law Joumats Worwen in Law scorecard), 4 AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS CASENO, 1100084095 we wD See aa u 2 2B 4 15 16 7 18 19 20 21 2 23 24 25 26 7 28 is much lower: men are promoted when they have less experience and less business than ‘women do. Yet these men are Sedgwick’s core, a brotherhood with control over ‘compensation and promotion, They also have control over opportunities that lead to ‘greater advancement at the Firm, like marketing money, leadership and skills trainings, and mentoring time. 15. Sedgwick’s male-dominated inner ranks make their decisions regarding Fim Partnership and compensation in a black box. The Executive Committee makes recommendations pursuant to processes and methodology that are kept secret, and are jt ya ns for Ribeiro, for example, were made without Compensation and promotion deci ‘communicating to her the standards by which she was being evaluated, In fact, none of the members of the Executive Committee ever reviewed her performance with her, or provided her with any substantive feedback on her work. This secrecy about how pay and promotion decisions are made only reinforces the Fitm’s glass ceiling by giving these men dominion ‘over the compensation and promotion of attorneys. It also enables them to routinely disfavor female attorneys in favor of men who belong to and will perpetuate their bo club, 16, These counter-claims arise out of Sedgwick’s systematic, Firm-wide discriminatory treatment of its female attorneys on the basis of their gender. Sedgwick discriminates against female attorneys through ils policies, practices, and procedures with respect to the compensation and promotion of female attorneys, in violation of Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991 and the Lilly Ledbetter Fair Pay Act of 2009 (“Fair Pay Act”), 42 U.S.C. §§ 2000e, et seg. (“ the Equal Pay Act, 29 U.S.C. § 206(¢) (“EPA” Housing Act, Cal. Lab. Code § 12940 et seq. (“FEHA”); the California Equal Pay Act, Cal. itle VII"); the California Fair Employment and We 5 SOLLECTIVE ACTION COUNTERC CASE NO, 1100084095 ‘AMENDED CLASS Al IMS wb Soe ua anew u 12 1B 4 15 16 7 18 19 20 2 22 23 24 25 26 27 28 Lab. Code § 1197.5 (“CEPA”), the Illinois Equal Pay Act, 820 ILCS 112/1 et seq. IEPA”), and the Illinois Human Rights Act, 775 ILCS 5/1-L01 et seq. (“IHRA"). 17. On behalf of herself and the Class she seeks to represent, Ribeiro requests declaratory and injunctive relief to redress Sedgwick’s pervasive and discriminatory employment policies, practices, and procedures. Ribeiro and the Class further seck back pay; front pay; compensatory damages; nominal, liquidated and punitive damages; and attorneys’ fees and costs, 18, Ril iro also brings individual claims of retaliation under Title VIL, the EPA, the FEHA, the CEPA, the IHRA, and the IEPA. U. PARTIES 19. Traci Ribeiro has been aresident and citizen of Chicago, Illinois, at all times relevant to this action. Ribeiro began her employment at Sedgwick's Chicago Office as a contract Partner in January 2011. She continues to work for Sedgwick now as a non-eq) Partner. Atall relevant times, Ribeiro has been a female “employee” under Title VII, the EPA, the FEHA, the CEPA, the HRA, and the IEPA. 20. Sedgwick is an intemnational litigation and business law firm with offices nationwide, including in Chicago, Ilinois, and San Francisco, California. Sedgwick was founded in San Francisco, and its San Francisco office continues to be one of its largest offices. Firm Chairman Michael F. Healy and Partner Eugene Brown, a member of the five-person Executive Committee, both maintain their home office in San Francisco, Other Executive Committee Members Marilyn Klinger and Ralph A. Guirgis also maintain home offices in California, At all times relevant herein, Sedgwick has been an “employer” as defined by Title VII, the EPA, the CEPA, the FEHA, the IEPA, ai the IHRA. Ill, JURISDICTION AND VENUE 21. A court would have original subject matter jurisdiction over the claims for violations of Title VII, and the EPA pursuant to 28 U.S.C. § 1331 and 1343 and 42 U.S.C. § 2000e-5(1)(3). These claims arise under the laws of the United States and are brought to 6 AMENDED CLASS AND COLLECTIVE ACTION COUNTERCL AIMS CASE NO. 1100084095 Ce aan een 10 12 13 4 15 16 7 18 19 20 21 22 23 24 25 26 27 28 recover damages for deprivation of equal rights. ‘The current Tribunal has determined it has jurisdiction to hear these claims. 22, A court in this district would have supplemental jurisdiction over Ribeito’s state law claims, including claims under the FEHA, the CEPA, the IHRA, and the IEPA. ‘These claims constitute the same case and controversy raised in the claims under federal Jaw, 23, The Northern District of California has personal jurisdiction over Sedgwick because Sedgwick transacts significant business in the State of California and in this District. Sedgwick has chosen this arbitral forum to pursue its own claims. 24, Venue in the Northern District of California would be proper pursuant to 28 USC. § 1391(6) and 42 U.S.C. § 2000e-5(1)(3), because Sedgwick conducts substantial business in the District. Sedgwick, through members of the equity Partnership and Executive Committee, also committed the alleged unlawful employment practices at issue in this case in this District. emmy a 25. — Counter-Claimant has standing to bring these claims and has exhausted her administrative remedies and complied with all statutory prerequisites to maintain Title VII and FEHA claims, On February 17, 2016, Counter-Claimant filed a charge of gender diserimination individually and on behalf of all similarly situated female attomeys ‘employed by Sedgwick with the Equal Employment Opportunity Commission (“EEOC”), ‘the Califomia Department of Fair Employment and Housing (“DFEH"), and the Illinois Department of Human Rights (*DHR"), and on April 19, 2016, she amended that charge She received a Notice of Right to Sue from the DFEH on September 21, 2016, which she served on opposing counsel. a a iit 1 "AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS CASE NO, 1100084095 wk ww ee ae 10 uv 2 1B 4 16 7 18 19 20 21 22 23 25 26 27 28 IV. FACTUAL ALLEGATIONS Background 26. Ribeiro is a graduate of Hofstra University, cum Jaude, and of American University, Washington College of Law. She is admitted to practice law in Arizona, Ilinois, New York, and Pennsylvania, 27. Ribeiro has 21 years of legal experience, and is currently practicing in the insurance coverage field, She joined Sedgwick’s Insurance Practices Division in Jenuary 2011, as a contract Partner. At hiring, she was informed that by the end of the year she would either end her employment with the Firm, be admitted to the Partnership, or enter into @ new contract as a contract Partner. 28, Ribeiro joined Sedgwick with the intention of advancing within the Firm, She hoped to be promoted from contract Partner to non-equity Partner, and from non-equity Partner to equity Partner. Her understanding was thet each of these promotions would be accompanied by increased career opportunities and the likelihood of increased earnings. ‘This is, in part, because equity Partners own a percentage interest in the Firm, while other attorneys do not, 29, Throughout her tenure at Sedgwick, Ribeiro has been a valuable employee. She has consistently generated INN in revenue for the Firm each year, and maintained hours well above Firm billing requirements, Although she is based in the Chicago office, she utilizes attorneys in several other Sedgwick offices. Additionally, in the past five years, Ribeiro recruited at least five new Associates to Sedgwick, mentored Associates, and participated in the Firm’s pro bono committee as the Chicago office’s representative 30. Ribeiro consistently outperforms her peers on objective criteria like bi ings revenues collected, billable hours, number of matters originated, fee realization, associate utilization, and other criteria. Indeed, in 2015, Ribeiro was the third highest revenne- generator for the entire Firm, based on her origination and collections. 8 AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS CASE NO, 1100084095 we wn ee ae 10 il 12 2B 4 15 16 7 18 19 20 2 2 23 24 25 26 27 28 B. The Male-Dominated Five-Member Executive Committee Exercises Near- Complete Control Over the Firm 31. Sedgwick has delegated near complete control over the Firm's operations and affairs to the five-member Executive Committee: a cadre of the Firm’s chair, the head of each of its three Divisions (Insurance, Commercial, and Complex Litigation), and one at-large member. Cucrently, its members are Firm Chair Michael Healy, at-large member Eugene Brown, Jr., Insurance Division Chair Ralph A. Guirgis, Complex Litigation Chair James Keale, and Commercial Division Chair Matilya Klinger. 32. Klinger, the first and only woman to sit on the Executive Committee, was appointed in early 2016, only after Ribeiro complained to Sedgwick about discrimination, Before she was appointed, all Executive Committee members had been male, 33, Prior to Healy's election to chairman in February 2015, Michael “Tanenbaum was Firm Chair for seven years. Bruce Celebrezze handed leadership of the Insurance Division to Ralph Guirgis around the same time. 34, The Executive Cont: | | NDED CLASS AND COLLECTIVE ACTION COUNTERCL AIMS: CASE NO. 1100084095 Ce rane 10 u 2 13 14 15 16 7 18 19 20 au 2 23 25 26 27 28 a | 36. The Executive Committee also has power over i SS , [a 30. z 2 g 5 g 5 a Sedgwick Fails to Promote Female Attorneys 39. During Ribeiro’s employment, male attorneys have been promoted to non- ‘equity and equity Partner at greater rates than women, Ribeito, in particular, has repeatedly been passed over for a promotion to equity Partner, even though she has outperformed her male colleagues in terms of revenues and collections. Despite this performance and her ‘commitment to and value for the Firm, she was denied the opportunity for advancement, ‘gceater business growth, and higher compensation that comes with equity Partnership, in favor of men who belong to Sedgwick’s boys’ club, 40, Though Sedgwick has no formal path that Ieads to elevation to equity Partner, it does set out some criteria for Partnership generally and for equity Partnership 10 AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLATMS CASE NO, 1100084095 Soea)d Mt 12 13 4 15 16 17 18 19 20 an 22 23 24 25 26 27 28 specifically in its Partner Handbook. A person must demons: |: i a A: ersocalatsbntes" to be a candidate for Partner, For equity Partnership, a person must demonstrate a ‘The Parte 1 NN. Aitonelly, the Partner must mM a LT 2! “persons! atrbutes.” This system for awarding promotions lacks sufficient quality controls, implementation guidelines, transparency, and oversight, and is being implemented in a way that disfavors women, 41. ‘Throughout her employment, Ribeiro made it known to the Executive ‘Committee that she wanted to become an equity Partner. She has repeatedly voiced this desire, and worked with Sedgwick’s leadership to prepare herself for it. Atthe end of 2011, Ribeiro was promoted to non-equity Partner from contract Partner, This promotion was effective in 2012, and contingent upon her signing the Firm’s Partnership Agreement 42, Despite Ribeiro’s objective qualifications and track record of suecess, her advancement at the Firm stopped there, She has not been promoted since then, and has not been able to achieve her ultimate goal: to make equity Partner. Although she should have been promoted to equity Partner in 2013 because of her success in generating business, developing client relationships, and obtaining results for her clients, she was passed over for a promotion that year and every year since. 43. In 2013, Ribeiro was denied a promotion to equity. Instead, Sedgwick promoted NN, «male Partner. Upo revenue generation had far exceeded gin that year and years before, and still does. formation and belief, Ribeiro’s annual ‘That year, she brought in J for the Fi u "AMENDED CLASS AND COLLECTIVE ACTION COUNTERCLAIMS CASE NO. 1100084095 ee a aeenn 10 i 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 44. In November 2014, Ribeiro was denied a promotion again. Instead, Sedgwick promoted JINN, « male Partner in the San Francisco office. Upon information and belief, Ribeiro’s annual revenue generation had far exceeded in that year and years before, and still does. ‘That yeat, she brought in mM for the Fier 45, In November 2015, Ribeiro was denied a promotion again. Instead, Sedgwick promoted JINN. a male Partner. Upon information and belief, Ribeiro’s annual revenue generation had far exceeded mmm in that year and years before, and still does. That year, she brought in Igual for the Firm, 46. In November 2016, Ribeiro was denied a promotion yet again, Instead, Sedgwick promoted two men to equity Partner, rere . Upon information and belief, Ribeiro’s annual revenue generation had far exceeded both NNN in that year and years before, and still does. ‘This past year, she brought in for the Firm. 47. EEE both are stationed out of the San Francisco Office, where Healy and Celebrezze are based and where both were close with Celebrezze. For years, MEN be! been given more opportunities for advancement than female attorneys. ‘They were provided with mentoring, mote committee assignments, more funds to market to existing and new clients, and more support than other female attomeys at their levels. Upon information and belief, one of the men was sent to trial academy earlier than any other associate and was elected to the Firm’s leadership acedemy before any other non- ‘equity Partner, and before female equity Partners, ‘These two progeams are important to the development of Partner-candidates. Despite being given all of these advantages, Ribeiro still outperformed them and Sedgwick still refused to recognize her success. a We ut 12 AMENDED CLASS AND COLLECTIVE ACTION COUNTERGLAIMS CASE NO. 1100084095 wR eD Sex ae u 12 B 4 16 7 18 19 20 ai 25 26 a7 28 D. Sedgwick Regularly Assigns Female Attorneys Lower Compensation than Similarly or Less Productive Male Attorneys 48, Female attorneys at Sedawick are paid less than male attorneys who ate required to perform substantially equal work as they are, even if they outperform men. In failing to promote female attorneys, Sedgwick prevents them from accessing the higher levels of pay that accompany promotions up to the equity Partnership, even though female and male attorneys perform equal work or females perform superior work. For example, Ribeiro has consistently been paid at a lower rate than male Partners who have substantially lower collections than she does. 49. Compensation is generally set by the Executive Committee. Like the promotion system, Sedgwick’s compensation system lacks sufficient quality controls, implementation mettics, transparency, and oversight, and is being implemented in a way that disfavors women 50. Non-equity Partners

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