Jury Duty, Trials

Breaking: Verdict In Alexandra Marchuk v. Faruqi & Faruqi

What did the jury decide in this high-profile and salacious case?

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We’ve been eagerly awaiting the verdict in Marchuk v. Faruqi & Faruqi, the high-profile sexual harassment lawsuit filed by Alexandra Marchuk against her former firm and one of its most prominent partners, Juan Monteverde. Trial started on January 12. The jury got the case on Tuesday and deliberated for about eight hours over three days.

And now the jury has spoken. Here’s a report from Law360 (sub. req.):

A New York federal jury on Thursday found Faruqi & Faruqi LLP and partner Juan Monteverde partially liable for creating a hostile work environment in a closely watched sexual assault case that has cast a harsh spotlight on the securities boutique.

An eight-member jury found Faruqi and Monteverde liable on former associate Alexandra Marchuk’s New York City law hostile work environment claims and partially granted her request for damages. She sought $2 million in damages. She was awarded $90,000 plus punitive damages to be determined later.

The economic damages — back pay, front pay, compensatory damages — are probably disappointing for Marchuk. But who knows what the punitive-damages award might bring?

On the bright side for the defendants, Monteverde and Faruqi were cleared of federal and state law claims of creating a hostile work environment. Recall also that Judge Alvin Hellerstein narrowed the case by dismissing various other claims, including Marchuk’s defamation and retaliation claims.

As of now, until we get the punitives, the outcome can’t be called as a huge win (or loss) for either side. This makes some sense given that both sides had their strengths and weaknesses at trial. But if the punitives turn out to be modest, then chalk this up as a defense victory — big headlines, small damages.

We will update this post as additional information comes in; refresh for the latest.

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UPDATE (4:35 p.m.): Per Max Stendahl of Law360, who has been doing a great job covering the trial, the jury has reached a verdict on punitive damages. We’ll update as soon as it’s announced.

UPDATE (4:45 p.m.): From Max Stendahl: “Jury awards $45,000 against partner Juan Monteverde, $5,000 against Faruqi [as a firm].”

Condolences to Alexandra Marchuk and congratulations to the defendants. This is a clear defense win. Lubna, let your ponytail fly high!

UPDATE (4:55 p.m.): Said one observer to me just now, “So all of that, and she ends up with $140k? But at least she destroyed the Faruqis’ firm. So there’s that.”

As we’ve discussed in these pages, the case did take a toll on the Faruqi firm, in terms of publicity, client development, lawyer defections, and recruitment of new partners. And having to pay out $140,000 isn’t exactly a ratification of the Faruqis’ and Monteverde’s theory of the case; the jury agrees with Marchuk that something improper happened. But still, considering all the ink (or pixels) spilled over this matter, $140,000 seems… low, doesn’t it? And the Faruqi firm isn’t “destroyed”; it’s damaged, yes, but the Faruqis will live to fight another day. Defense lawyers, you’ll see them around the courthouse.

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UPDATE (5:05 p.m.): Not everyone views this as a defense win. Here’s employment lawyer Kevin Mintzer, on Twitter: “A jury finding of a hostile work environment and $140k in damages + a huge attorney fee award TK is not a “clear defense win.”

UPDATE (5:17 p.m.): I just got off the phone with Scott Bursor, counsel to the defendants, and Lubna Faruqi. More to come as I write up the interview. I’ve also contacted Harry Lipman, counsel to the plaintiff, with an interview request.

UPDATE (6:28 p.m.): Here’s my interview with Scott Bursor and Lubna Faruqi. They are very, very happy with the jury verdict, which they believe does vindicate their theory of the case.

Faruqi, Monteverde Partially Liable In Sex Assault Case [Law360 (sub. req.)]
Judge Narrows Bias Suit Against Faruqi & Faruqi [New York Law Journal (sub. req.)]
Feb. 3 At Faruqi Sex Harassment Trial: It’s Up To The Jury Now [JD Supra]

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