Reuben Raucher & Blum successfully defended a nonprofit foundation providing low-income housing to the elderly in a high-stakes employment dispute brought by a terminated Chief Operating Officer. The COO, who alleged racial discrimination as the reason for his dismissal, filed multiple claims under the Fair Employment and Housing Act (FEHA).
Given the sensitive nature of the allegations and the COO’s prominent role within the organization, the case presented significant reputational and legal risks for the client. Recognizing the advantages of arbitration for employers, RRB successfully obtained a court order compelling the matter to arbitration under the American Arbitration Association (AAA), despite the plaintiff’s initial filing in superior court.
In arbitration, RRB secured summary adjudication on the key claim of race discrimination, effectively establishing that the client’s termination decision was not racially motivated. This decisive finding absolved the foundation of the stain of a racism allegation, significantly reducing potential exposure and mitigating reputational harm. Following this critical victory, the remaining issues were resolved through a favorable settlement, bringing the matter to a successful conclusion.
