Mihalik V. Credit Agricole Cheuvreux: Second Circuit Clarifies Standard Of Review Of New York City Human Rights Law Claims

Client Alert

On April 26, 2013, the Second Circuit held that New York City Human Rights Law ("NYCHRL") claims must be analyzed separately from federal and state discrimination claims and that the severe or pervasive standard of liability no longer applies to NYCHRL claims. Mihalik v. Credit Agricole Cheuvreux N. Am., Inc., No. 11-3361-cv (2d Cir. Apr. 26, 2013).

Background

In July 2007, Credit Agricole Cheuvreux North America, Inc. ("Cheuvreux") hired plaintiff-appellant Renee Mihalik into a position that reported to Cheuvreux's Chief Executive Officer, Ian Peacock. Mihalik alleged that Peacock encouraged a "boys['] club" atmosphere in the office and subjected her to sexually suggestive conduct, including commenting on her appearance, telling her that she looked "sexy," showing her pornography "once or twice a month," and twice propositioning her for sex. When Mihalik rejected his advances, Peacock allegedly stopped sitting next to her at the trading desk and began treating her differently, including yelling at her in front of her colleagues. Mihalik allegedly first complained about this behavior at the end of 2007, and again at the beginning of 2008.

In April 2008, after months of unsatisfactory performance, Mihalik was discharged for failing to complete an assignment for Peacock. The day of her dismissal, Peacock met with Mihalik to discuss the assignment. Peacock entered the meeting intending to only give her a performance warning but ended up discharging her. The parties dispute what happened during the meeting, but Mihalik testified that she was fired only after she asked, "What's not working out[?] Me and you or me at the company?"

The District Court Action

Mihalik filed a lawsuit asserting claims of gender discrimination and retaliation under the New York City Human Rights Law, Administrative Code of the City of New York § 8-107 et seq. Cheuvreux moved for summary judgment at the close of discovery. Relying on the federal standards for evaluating such claims, yet noting that it was "incorporat[ing] the special considerations" for NYCHRL claims under Williams v. New York City Housing Authority, 872 N.Y.S.2d 27 (1st Dep't 2009), the district court granted summary judgment to Cheuvreux.

The Second Circuit's Decision

The Second Circuit, rejecting the district court's focus on the traditional quid pro quo and hostile work environment analyses, concluded that the federal standards no longer may direct a review of discrimination and...