Case: Jaffe v. Morgan Stanley DW, Inc.

3:06-cv-03903 | U.S. District Court for the Northern District of California

Filed Date: June 22, 2006

Clearinghouse coding complete

Case Summary

On June 22, 2006, female financial advisors working for Morgan Stanley, a retail financial services firm, filed this lawsuit in the U.S. District Court for the District of Northern California against their employer. The plaintiffs, represented by private counsel, were female and minority financial advisors employed by the defendant. They claimed that the defendants' substantially male branch managers had near unfettered discretion over compensation and distributing business to the advisors. Fin…

On June 22, 2006, female financial advisors working for Morgan Stanley, a retail financial services firm, filed this lawsuit in the U.S. District Court for the District of Northern California against their employer.

The plaintiffs, represented by private counsel, were female and minority financial advisors employed by the defendant. They claimed that the defendants' substantially male branch managers had near unfettered discretion over compensation and distributing business to the advisors. Financial advisors earned a commission and obtained clients by referral. The complaint alleged branch managers gave more business, assistance, and opportunities to male advisors; this was a systemic, continuing pattern and practice at Morgan Stanley. The lead plaintiff also alleged she was terminated for being female and over the age of 40. The complaint sought to certify a class of all female advisors employed by the defendant from January 5, 2005 to the present and a subclass of advisors who had worked in California.

The first complaint contained the following claims: (1) intentional discrimination in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; (2) disparate impact discrimination under the same statute; (3) gender discrimination in violation of the California Fair Employment and Housing Act, Cal. Gov't. Code § 12940 et seq; (4) on behalf of the named plaintiff only, age discrimination in violation of the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq.; (5) on behalf of the named plaintiff only, age discrimination under the California Fair Employment and Housing Act, Cal. Gov't. Code §12940 et seq. The complaint sought: a declaratory judgment; preliminary and permanent injunctions ordering the defendant to cease discrimination; an order restoring class members to previous positions or, in lieu thereof, front pay; back pay and benefits; damages for emotional distress and punitive damages; and attorneys' fees and costs.

The first amended complaint, filed on October 12, 2006, added another named plaintiff, who was a black Michigan resident. It also added a claim of gender discrimination under Michigan's Elliot-Larsen Civil Rights Act, M.C.L.A. §§ 37.2101 et seq. and claims of race discrimination under: Title VII; 42 U.S.C. § 1981; and the Elliot-Larsen Civil Rights Act, M.C.L.A. §§ 37.2101 et seq. A final amended complaint, filed on August 17, 2007, added a third plaintiff, a black California resident. This complaint added claims for race and color discrimination under Title VII and 42 U.S.C. § 1981 on behalf of black and Latino subclasses.

Related Case & Gender Discrimination Claims

The defendant sought a stay of this action pending the outcome of settlement negotiations in a similar class action filed in the U.S. District Court for the District of Columbia. In Augst-Johnson v. Morgan Stanley DW, Inc., the plaintiffs also alleged gender discrimination. That case can be found at EE-DC-0033 in this Clearinghouse. On January 19, 2007, the district court ordered a stay of the gender discrimination claims, which were eventually resolved by the settlement in Augst-Johnson. 2007 WL 163196 (S.D.N.Y. Mar. 15 2007). Thus, the Jaffe settlement dealt only with race discrimination claims.

Settlement Agreement

On February 11, 2008, the parties filed a copy of the proposed settlement agreement. The district court granted final class certification, approval of the proposed settlement agreement, and entered final judgment on October 22, 2008. 2008 WL 4667090 (S.D.N.Y. Oct. 22, 2008). The parties reached the agreement with the assistance of mediator Hunter Hughes, Esq., who had also mediated the Augst-Johnson case. The settlements term was five years. The settlement class was defined as "All African Americans and Latinos who were employed as Financial Advisors or Registered Financial Advisor Trainees in the Global Wealth Management Group of Morgan Stanley & Co. Incorporated or its predecessor(s) at any time between October 12, 2002 and the date of preliminary approval."

The settlement agreement required the defendant to: distribute its anti-harassment policy to all employees; retain an employee dedicated to increasing African American and Latino presence in the defendant's work force; work only with recruiters who would provide a diverse slate of potential employees; post all job openings on an internal job website; provide diversity training; create a more transparent and objective career path; change a "power ranking' system that rated financial advisors' performance; and implement a revised complaint process. The parties also agreed to jointly appoint a diversity monitor, Fred W. Alvarez, Esq., and industrial psychologists Dr. Kathleen Lundquist and Dr. Irwin Goldstein to assist with implementation of the changes. Monitoring included semi-annual reports to class counsel.

The defendant agreed to pay $16,000,000 to a settlement trust. A trust administrator would allocate the money to class members according to a formula based on their seniority, business generated, and other factors. The District Court also awarded $25,000 to an individual plaintiff for her efforts representing the class and $950,000 in attorneys' fees and costs for litigation; $150,000 of which was to monitor and enforce the settlement. The last entry on the District Court docket, on May 24, 2010, records the objecting class members' notice of appeal.

Objecting Class Members

On December 10, 2007, several putative class members filed a notice of objection and a motion for discovery regarding a proposed class certification and settlement agreement. Nonetheless, on February 7, 2008, in an unpublished order, the District Court denied the objectors' motion. Jaffe v. Morgan Stanley DW, Inc., No. 06-3903, 2008 WL 346417 (S.D.N.Y. Feb. 7 2008). The objectors continued to argue against the settlement, asserting that the plaintiffs could not adequately represent Latino class members and that the provisions for monitoring and implementation were not strong enough. However, the Court disagreed and felt the settlement adequately protected the class.

On July 16, 2008, the District Court allowed one of the named plaintiffs to transfer her individual claims to the U.S. District Court for the Eastern District of Michigan. Jaffe v. Morgan Stanley DW, Inc., No. 06-3903, 2008 WL 2782713 (S.D.N.Y. Jul. 16 2008). Furthermore, several dozen plaintiffs opted out of the settlement. The objecting class members filed an appeal in the U.S. Court of Appeals for the Ninth Circuit. The case appeared on the docket as Jaffe v. Glover, No. 08-17599.

In July 2010, appellees filed motions to dismiss for failure to prosecute and failure to provide a timely brief, which the Ninth Circuit granted. On September 7, 2011, following the merger of Morgan Stanley's Global Wealth Management Group and Citigroup's Smith Barney, the District Court approved a joint motion to modify the settlement start date to October 1, 2010 and granted several more specific modifications in light of the merger. Litigation over settlement fund distribution followed. Right before the settlement was due to expire, the parties filed a motion for extension of the settlement by two years on September 29, 2015, which the Court granted. The order also granted several modifications to the settlement, including the appointment of a Diversity Monitor and the continuation of settlement programs related to increasing participation of female, African American, and Latino Financial Advisors in teams and partnerships for an additional year past the settlement's expiration.

As of December 2, 2018, there have been no further updates. The settlement term has presumably expired.

Summary Authors

Eric Weiler (7/3/2010)

Virginia Weeks (11/6/2016)

Eva Richardson (12/2/2018)

Related Cases

Augst-Johnson v. Morgan Stanley & Co., District of Columbia (2006)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/5765811/parties/jaffe-v-morgan-stanley-dw-inc/


Judge(s)

Henderson, Thelton Eugene (California)

Attorneys(s) for Plaintiff

Alexander, Elizabeth A. (Tennessee)

Bish, Suzanne Elaine (Illinois)

Cervantez, Eve Hedy (California)

Dermody, Kelly M. (California)

Finberg, James M. (California)

Hoffman, Piper (New York)

Klein, Adam T. (New York)

Lee, Bill Lann (California)

Pitts, P. Casey (California)

Judge(s)

Henderson, Thelton Eugene (California)

Attorneys(s) for Plaintiff

Alexander, Elizabeth A. (Tennessee)

Bish, Suzanne Elaine (Illinois)

Cervantez, Eve Hedy (California)

Dermody, Kelly M. (California)

Finberg, James M. (California)

Hoffman, Piper (New York)

Klein, Adam T. (New York)

Lee, Bill Lann (California)

Pitts, P. Casey (California)

Swartz, Justin (New York)

Wong, Heather H (California)

Attorneys(s) for Defendant

Dichter, Mark S. (Pennsylvania)

Eisen, Rebecca Dianne (California)

Friedman, Linda (Illinois)

Hutchinson, Daniel M. (California)

Landy, Daryl Steven (California)

Nelson, Robert S. (California)

Penrod, James Norman (California)

Peterson, Thomas M. (California)

Robinson, Bari Susan (California)

Roger, Kent Michael (California)

Smith, Philip James (California)

Stowell, Mary (Illinois)

Turman, L. Julius M. (California)

Turnbull, Kenneth J. (New York)

Yates, Gregg Paris (California)

Other Attorney(s)

Oto, Eric S. (California)

Documents in the Clearinghouse

Document

Docket - Court of Appeals

Jaffe v. Morgan Stanley

U. S. Court of Appeals for the Ninth Circuit

Dec. 1, 2009 Docket

Docket [PACER]

Jaffe v. Morgan Stanley

Nov. 5, 2015 Docket
1

Class Action Complaint For Injunctive And Declaratory Relief And Damages For Violations Of Title VII Of The Civil Rights Act Of 1964, 42 U.S.C. § 2000e et seq. And The California Fair Employment And Housing Act, Cal. Gov't Code § 12940 et seq.

Jaffe v. Morgan Stanley

2006 WL 5390674

June 22, 2006 Complaint
25-1

First Amended Class Action Complaint For Injunctive And Declaratory Relief And Damages For Violations Of Title VII Of The Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq., The California Fair Employment And Housing Act, Cal. Gov't Code §§ 12940,

Jaffe v. Morgan Stanley

2006 WL 3619873

Oct. 12, 2006 Complaint
37

Joint Case Management Conference Statement And Rule 26(f) Report

Jaffe v. Morgan Stanley

2006 WL 3619979

Oct. 24, 2006 Pleading / Motion / Brief
67

Order Granting Defendant's Motion To Stay Class And Subclass Gender Discrimination Claims

Jaffe v. Morgan Stanley

2007 WL 163196

Jan. 19, 2007 Order/Opinion
81

Second Amended Class Action Complaint For Injunctive And Declaratory Relief And Damages For Violations Of Title VII Of The Civil Rights Act Of 1964, 42 U.S.C. §§ 2000e et seq., 42 U.S.C. § 1981, The California Fair Employment And Housing Act . . .

Jaffe v. Morgan Stanley

2007 WL 2888752

Aug. 17, 2007 Complaint
88

Plaintiff's Separate Memorandum Of Points And Authorities In Support Of Joint Motion For: (1) Preliminary Approval Of Class Action Settlement; (2) Provisional Certification Of Settlement; (3) Approval And Distribution Of Notice Of Settlement . . .

Jaffe v. Morgan Stanley

2007 WL 4919793

Oct. 22, 2007 Pleading / Motion / Brief
95

Objections Of Putative Class Members To Motion For Class Certification & Preliminary Approval

Jaffe v. Morgan Stanley

2007 WL 4919794

Nov. 9, 2007 Pleading / Motion / Brief
106

Defendant's Response To Objections Of Putative Class Members To Motion For Class Certification & Preliminary Approval

Jaffe v. Morgan Stanley

2007 WL 4919786

Nov. 19, 2007 Pleading / Motion / Brief

Docket

See docket on RECAP: https://www.courtlistener.com/docket/5765811/jaffe-v-morgan-stanley-dw-inc/

Last updated May 11, 2022, 8 p.m.

ECF Number Description Date Link
24

STIPULATION AND ORDER: Initial Case Management Conference rescheduled to 10/30/2006 at 01:30 PM. Signed by Judge Thelton E. Henderson on 09/21/06. (rbe, COURT STAFF) (Filed on 9/21/2006)

Sept. 21, 2006 RECAP
33

ORDER DENYING 26 Ex Parte Application to Continue Case Management Conference filed by Morgan Stanley DW, Inc. Signed by Judge Thelton E. Henderson on October 19, 2006. (tehlc1, COURT STAFF) (Filed on 10/19/2006)

Oct. 19, 2006 RECAP
36

STIPULATION AND ORDER re: filing joint case management conference statement. Signed by Judge Thelton E. Henderson on 10/24/06. (rbe, COURT STAFF) (Filed on 10/24/2006)

Oct. 24, 2006 RECAP
53

STIPULATION AND ORDER re: defendant's motion to dismiss plaintiff Williams' claim for race discrimination and time for defendant to file a response. Signed by Judge Thelton E. Henderson on 11/14/06. (rbe, COURT STAFF) (Filed on 11/14/2006)

Nov. 14, 2006 RECAP
67

ORDER granting 49 Defendant's motion to stay class and subclass gender discrimination claims. Signed by Judge Thelton E. Henderson on 01/19/07. (tehlc3, COURT STAFF) (Filed on 1/19/2007)

Jan. 19, 2007 RECAP
70

STIPULATION AND ORDER re: defendant's time to respond to age and race claims. Signed by Judge Thelton E. Henderson on 02/20/07. (rbe, COURT STAFF) (Filed on 2/21/2007)

Feb. 21, 2007 RECAP
73

STIPULATION AND ORDER extending the stay of gender discrimination claims. Signed by Judge Thelton E. Henderson on 03/21/07. (rbe, COURT STAFF) (Filed on 3/21/2007)

March 21, 2007 RECAP
75

STIPULATION AND ORDER extending the stay of gender discrimination claimsThe Case Management Conference is continued to 6/25/2007 at 01:30 PM. Signed by Judge Thelton E. Henderson on 04/16/07. (rbe, COURT STAFF) (Filed on 4/17/2007)

April 17, 2007 RECAP
77

STIPULATION and ORDER continuing the Case Management Conference to 9/24/2007 01:30 PM. Signed by Judge Thelton E. Henderson on 06/25/07. (rbe, COURT STAFF) (Filed on 6/25/2007)

June 25, 2007 RECAP
80

STIPULATION AND ORDER GRANTING FILING OF SECOND AMENDED COMPLAINT re 79 filed by Daisy Jaffe, Denise Williams. Signed by Judge Thelton Henderson on 8/2/2007. (cgk, COURT STAFF) (Filed on 8/8/2007)

Aug. 8, 2007 RECAP
84

STIPULATION AND ORDER continuing the Case Management Conference to 11/26/2007 at 10:00 AM. The hearing on the Motion for Preliminary Approval of Settlement is set for 11/26/2007 at 10:00 AM in Courtroom 12, 19th Floor, San Francisco. Signed by Judge Thelton E. Henderson on 10/04/07. (rbe, COURT STAFF) (Filed on 10/5/2007)

Oct. 5, 2007 RECAP
86

STIPULATION AND ORDER continuing the CMC and motion hearing. Further Case Management Conference set for 11/26/2007 01:30 PM. Motion Hearing set for 11/26/2007 01:30 PM in Courtroom 12, 19th Floor, San Francisco. Signed by Judge Thelton E. Henderson on 10/16/07. (rbe, COURT STAFF) (Filed on 10/17/2007)

Oct. 17, 2007 RECAP
92

ORDER Continuing Hearing. Signed by Judge Thelton E. Henderson on 10/29/07. (tehlc4, COURT STAFF) (Filed on 10/29/2007)

Oct. 29, 2007 RECAP
118

ORDER granting motion for pro hac vice of Suzanne Bish. Signed by Judge Thelton E. Henderson on 12/05/07. (rbe, COURT STAFF) (Filed on 12/5/2007)

Dec. 5, 2007 RECAP
130

ORDER Seeking Further Briefing and Submissions on Joint Motion for Preliminary Approval of Class Action Settlement and Provisional Certification of Settlement Class, and Vacating Hearing Date, Signed by Judge Thelton E. Henderson on 12/12/07. (tehlc4, COURT STAFF) (Filed on 12/12/2007)

Dec. 12, 2007 RECAP
158

ORDER by Judge Thelton E. Henderson Preliminarily Approving Settlement; 87 141 ; denying 144 Motion for Leave to File; denying 152 Motion For Access to Sealed Documents (Attachments: # 1 Exhibit 1: Settlement Agreement, # 2 Exhibit 2: Notice, # 3 Exhibit 3: Claim Form) (tehlc4, COURT STAFF) (Filed on 2/7/2008)

1 Exhibit 1: Settlement Agreement

View on PACER

2 Exhibit Exhibit 2: Notice

View on PACER

3 Exhibit Exhibit 3: Claim Form

View on PACER

Feb. 7, 2008 RECAP
164

ORDER granting 163 Stipulation Re: Class Members Inadvertently Left Off Class List filed by Daisy Jaffe, Margaret Benay Curtis-Bauer, Denise Williams. Signed by Judge Thelton E. Henderson on 4/28/2008. (mat, COURT STAFF) (Filed on 4/28/2008)

April 28, 2008 RECAP
178

STIPULATION AND ORDER regarding expansion of page limitations. Signed by Judge Thelton E. Henderson on 05/13/08. (rbe, COURT STAFF) (Filed on 5/14/2008)

May 14, 2008 RECAP
180

STIPULATION AND ORDER for dismissal of plaintiff's individual claims with prejudice. Signed by Judge Thelton E. Henderson on 05/15/08. (rbe, COURT STAFF) (Filed on 5/16/2008)

May 16, 2008 RECAP
186

ORDER by Judge Thelton E. Henderson Denying 165 Motion for Leave to File; Denying 183 Ex Parte Application (tehlc4, COURT STAFF) (Filed on 6/2/2008)

June 2, 2008 RECAP
209

ORDER by Judge Thelton E. Henderson Granting Motion to Transfer Claims, Vacating Hearing, and Denying 208 Motion for Leave to File (tehlc4, COURT STAFF) (Filed on 7/16/2008)

July 16, 2008 RECAP
230

STIPULATION AND ORDER changing time for opposition to motion for reconsideration. Signed by Judge Thelton E. Henderson on 08/08/08. (rbe, COURT STAFF) (Filed on 8/11/2008)

Aug. 11, 2008 RECAP
237

ORDER GRANTING Denise Williams' motion to file documents under seal for in camera review. Signed by Judge Thelton E. Henderson on 08/18/08. (rbe, COURT STAFF) (Filed on 8/18/2008)

Aug. 18, 2008 RECAP
247

ORDER GRANTING application for approval of service payment. Signed by Judge Thelton E. Henderson on 10/21/08. (rbe, COURT STAFF) (Filed on 10/22/2008)

Oct. 22, 2008 RECAP
248

ORDER GRANTING application for attorneys fees and reimbursement of costs and expenses. Signed by Judge Thelton E. Henderson on 10/21/08. (rbe, COURT STAFF) (Filed on 10/22/2008)

Oct. 22, 2008 RECAP
250

ORDER GRANTING RECONSIDERATION OF COURT'S JULY 7, 2008 ORDER CONFIRMING FINAL CLASS CERTIFICATION AND GRANTING FINAL APPROVAL TO CLASS ACTION SETTLEMENT. Signed by Judge Thelton E. Henderson on 10/22/08. (Attachments: # 1 Exhibit Revised Settlement Agreement, # 2 Exhibit Exhibits to Revised Settlement Agreement)(tehlc4, COURT STAFF) (Filed on 10/22/2008)

1 Exhibit Revised Settlement Agreement

View on PACER

2 Exhibit Exhibits to Revised Settlement Agreement

View on PACER

Oct. 22, 2008 RECAP
252

STIPULATION AND ORDER re: Vincent Griffin. Signed by Judge Thelton E. Henderson on 11/04/08. (rbe, COURT STAFF) (Filed on 11/4/2008)

Nov. 4, 2008 RECAP
269

ORDER Signed by Judge Thelton E. Henderson Granting re 267 Joint Motion to rescind opt-outs and permit certain objectors and opt-outs to file claims forms. (tehlc3, COURT STAFF) (Filed on 8/19/2010)

Aug. 19, 2010 RECAP
282

JOINT STIPULATION AND ORDER Approving Modified Settlement Agreement. Signed by Judge Thelton E. Henderson on 09/07/2011. (tmi, COURT STAFF) (Filed on 9/7/2011)

Sept. 7, 2011 RECAP
287

ORDER APPROVING REPORT AND RECOMMENDATION OF SPECIAL MASTER AND AUTHORIZING DISTRIBUTION OF SETTLEMENT FUND. Signed by Judge Thelton E. Henderson on 5/17/2012. (tehlc2, COURT STAFF) (Filed on 5/17/2012)

May 17, 2012 RECAP
289

ORDER re. Special Master's October 2, 2012 Report & Recommendation.Signed by Judge Thelton E. Henderson on 10/11/2012. (tehlc2, COURT STAFF) (Filed on 10/11/2012)

Oct. 11, 2012 RECAP
296

ORDER by Judge Thelton E. Henderson granting 290 Motion for Leave to File Late Claim. (tehlc2, COURT STAFF) (Filed on 1/2/2013)

Jan. 2, 2013 RECAP
298

STIPULATION AND ORDER Authorizing Claims Administrator to Make Distribution to Class Member Arthur Villanueva re 297 . Signed by Judge Thelton E. Henderson on 02/19/2013. (tmi, COURT STAFF) (Filed on 2/20/2013)

Feb. 20, 2013 RECAP

State / Territory: California

Case Type(s):

Equal Employment

Special Collection(s):

IWPR/Wage Project Consent Decree Study

Private Employment Class Actions

Key Dates

Filing Date: June 22, 2006

Case Ongoing: No reason to think so

Plaintiffs

Plaintiff Description:

Female, black, and Latino employees of Morgan Stanley, a financial services firm.

Plaintiff Type(s):

Private Plaintiff

Attorney Organizations:

Outten & Golden

Public Interest Lawyer: No

Filed Pro Se: No

Class Action Sought: Yes

Class Action Outcome: Granted

Defendants

Morgan Stanley (New York City), Private Entity/Person

Case Details

Causes of Action:

42 U.S.C. § 1981

State law

Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621 et seq.

Title VII (including PDA), 42 U.S.C. § 2000e

Declaratory Judgment Act, 28 U.S.C. § 2201

State Anti-Discrimination Law

Availably Documents:

Trial Court Docket

Complaint (any)

Monetary Relief

Injunctive (or Injunctive-like) Relief

Any published opinion

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Attorneys fees

Damages

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: $17,000,000

Order Duration: 2010 - 2017

Content of Injunction:

Discrimination Prohibition

Retaliation Prohibition

Develop anti-discrimination policy

Utilize objective job description

Utilize objective hiring/promotion criteria

Follow recruitment, hiring, or promotion protocols

Comply with advertising/recruiting requirements

Other requirements regarding hiring, promotion, retention

Provide antidiscrimination training

Implement complaint/dispute resolution process

Reporting

Monitor/Master

Monitoring

Goals (e.g., for hiring, admissions)

Issues

General:

Disparate Impact

Disparate Treatment

Pattern or Practice

Discrimination-area:

Demotion

Discharge / Constructive Discharge / Layoff

Discipline

Harassment / Hostile Work Environment

Other Conditions of Employment (including assignment, transfer, hours, working conditions, etc)

Pay / Benefits

Promotion

Seniority

Training

Discrimination-basis:

Age discrimination

Race discrimination

Sex discrimination

Race:

Black

Affected Gender:

Female

National Origin/Ethnicity:

Hispanic