A $1.3-million lawsuit against Toronto employment law firm Mathews, Dinsdale & Clark LLP filed by its former associate Adrian Jakibchuk was quietly settled out of court last month. The suit was part of a series of allegations, investigations, resignations and lawsuits stemming from alleged sexual misconduct at a firm event in January 2009. The case was dismissed without costs on consent on June 7.
Jakibchuk sued his former firm over wrongful dismissal in March 2011, claiming the firm had become “a hostile and poisoned work environment” for him after a then-partner at the firm, David Cowling, filed a $2.3-million defamation suit against him and an ex-junior associate at MDC, Sarah Diebel. That lawsuit, filed in March 2010, claimed that Jakibchuk and Diebel had made false allegations accusing Cowling of sexual misconduct at a firm-sponsored party, with the intention to malign him. The defamation suit was settled out of court just days after Jakibchuk launched his wrongful dismissal case against his former firm.
Pleadings obtained by Precedent in the Jakibchuk lawsuit indicate that MDC paid an undisclosed sum of money to Cowling in order for him to drop his lawsuit and leave the firm. In MDC’s statement of defence, dated May 10, 2011, it says the settlement between Cowling and Jakibchuk “was only possible because MDC, as a condition of payment of monies to Cowling in connection with Cowling’s departure from the firm, insisted that Cowling discontinue the Defamation Action.”
The statement of defence also reveals that Cowling settled with Jakibchuk for $20,000 of Jakibchuk’s legal costs. According to the documents, MDC covered half of those costs.
Jakibchuk resigned from MDC two months after being served a statement of claim at the firm’s reception desk with the lawsuit from Cowling. The then-fourth-year associate had cooperated with investigations looking into Cowling’s conduct at the party celebrating a moot competition sponsored by the firm, and believed his responses were told in confidence. He alleged in his defence that he had seen Cowling dancing very closely with a young female law student and that Cowling had grabbed her breast. Cowling claimed in his pleading that the allegation was false. He claims the confidential report resulting from an independent firm investigation exonerated him of the accusations. A letter issued from the firm to Cowling more than six months after the report’s completion states that he acted appropriately and professionally throughout the weekend of the moot competition.
In Jakibchuk’s claim, MDC is accused of violating the Human Rights Code due to his suffering reprisals for participating in a workplace investigation of sexual harassment. The reprisals listed in the claim include the firm’s unwillingness to support Jakibchuk in his defence against the libel suit launched by one of its partners, as well as a noticeable decline in work assigned to him by partners after he was served. The claim says, “his prospects for future career advancement at MDC were destroyed” as he felt he would no longer be on track for partnership and he was compelled to leave the firm.
Jakibchuk is now an employment and labour law lawyer at Sherrard Kuzz LLP. The details of the settlement between him and MDC remain confidential. His lawyer, Paul Schabas, speaking on behalf of his client, says Jakibchuk is “pleased to finally have this whole matter behind him and he’s moving on with his life and his legal career.”