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Sun Belt wins dismissal of claim brought by former chief compliance officer

LEGAL NEWSLINE

Saturday, November 23, 2024

Sun Belt wins dismissal of claim brought by former chief compliance officer

Federal Court
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NEW ORLEANS (Legal Newsline) – The Sun Belt Conference has successfully defended itself in federal court from certain claims advanced by its former its former chief compliance officer.

New Orleans federal court chief judge Nannette Jolivette Brown on July 20 dismissed claims made under the Louisiana Unfair Trade Practices Act by Patrick Hairston, who sued the conference last year after asking for a $1 million settlement.

Brown’s previous ruling rejected Hairston’s call to have the case heard in state court. This one shuts off one of the avenues for compensation, leaving claims for breach of contract, race discrimination and failure to pay vacation time.

Hairston argued his LUPTA claim could move forward because his losses stemmed from the Sun Belt’s actions, such as discrimination, ignoring handbook procedures and misrepresenting the reasons for his employment. They were unfair methods or deceptive acts or practice in the conduct of trade of commerce, he said.

“None of these allegations show how Defendant was advertising, offering for sale, selling, or distributing any services or any property,” Brown wrote.

“Defendant was not engaged in trade or commerce when Plaintiff’s employment was terminated.”

According to the complaint, Hairston was fired on April 30, 2020, by the Sun Belt and was told his position was "shut down" due to the COVID-19 pandemic and budget cuts. Hairston alleges suspecting that his termination was due to a toxic workplace that included racial discrimination against him due to his race being African American.

Prior to his termination, Hairston held the position of associate commissioner and chief compliance 0fficer. Hairston alleges that prior to his termination, he received exemplary performance reviews from former Commissioner Karl Benson.

After Benson's tenure was done, Keith Gill took the commissioner position and Kathy Keene remained deputy commissioner. Hairston alleges that after Gill and Keene's takeover, Keene began firing minority employees hired by Benson and favored white employees she had recommended for hire.

Hairston alleges that during a Zoom meeting, Keene presented compliance information that was Hairston's area of expertise, and when asked why she was doing his job, Keene alleged that Gill was not happy with Hairston's performance. Hairston alleges that his termination was in retaliation to voicing his concerns as his work became increasingly scrutinized and micromanaged by Keene.

Hairston seeks 90 days of wages at a rate of $263.01 per day, vacation pay, penalties, cost of suit and attorney fees. Hairston is represented by Mark F. Montiel.

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