News Releases

Lawsuit by former Executive Director sent to arbitration

Contact: Laura Ernde

415-538-2283

barcomm@calbar.ca.gov

SAN FRANCISCO, June 15, 2015 — A Los Angeles County Superior Court judge has granted the State Bar’s request to send to arbitration a lawsuit filed by the bar’s former executive director.

The order, filed late Friday, is available on request. State Bar Acting Executive Director Robert Hawley commented:

“We are, of course, pleased with this result. The State Bar’s goal all along has been to resolve this issue, not grandstand. We are pleased that substance and merit prevailed."

The State Bar has maintained it could terminate Dunn with or without cause, and that the Nov. 13, 2014 whistleblower lawsuit filed by Dunn is baseless.

On July 31, 2014, the State Bar Board of Trustees received a complaint from a high-level employee raising serious, wide-ranging allegations about Executive Director Joseph Dunn and certain State Bar employees. Given the board’s fiduciary duty to protect the public, the board took the complaints seriously and hired the law firm of Munger Tolles & Olson to conduct an independent investigation into the complaints.

On Nov. 7, 2014, the board voted to end Dunn’s employment upon the expiration of a 30-day notice pursuant to his at-will employment contract. Dunn’s Employment Agreement states, “As Executive Director, Dunn serves at the pleasure and discretion of the Board and shall be terminable at will,” and “As Executive Director, Dunn serves at the pleasure and discretion of the Board and shall be terminable at will, The State Bar may unilaterally terminate this Agreement, with or without cause, effective upon 30 days prior written notice.”

Between Nov. 7 and Nov. 12, 2014, the State Bar attempted to informally negotiate a severance agreement with Dunn consistent with Dunn’s at-will employment agreement. On Dec. 4, 2014, the State Bar notified Dunn that it was invoking the mediation/arbitration provisions of the employment agreement. 

Dunn refused to participate in mediation and arbitration, the State Bar filed a motion to compel arbitration, and Los Angeles County Superior Court Judge Mitchell L Beckloff, granted the State Bar’s request to send Dunn’s issues to arbitration. In his order, Judge Beckloff stated: “The scope of the arbitration agreement is broad and covers ‘(a)ny controversy or claim arising out of or related to’ Plaintiff’s Employment Agreement. Given the expansive nature of the provision, there can be no dispute that this controversy or claim arises out of and is related to Plaintiff’s Employment Agreement.”