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First off, a little back story to this entire situation. Bobby Kotick, current president and CEO of Activision has lost a multi-year long legal battle against a flight attendant, Cynthia Madvig and with his own legal team that represented him in said lawsuit. Back in 2007 Madvig filed suit against Kotick, Andrew Gordon, the head of Goldman Sachs & Co.'s investment banking division in Los Angeles, and Cove Management, a company the two created to manage a Gulfstream III private jet. In addition, the pilot, Phil Berg, was also named in the suit.
The suit, which has its roots in sexual harassment was dragged out over a year from when it was first filed in January of 2007. During the course of the legal battle, it was said that the suit could be settled for as little as $200,000 but Kotick "believed no sexual harassment or retaliation had taken place and it was important to vindicate the principle even if it would be very expensive in terms of legal fees," according to court records. It was around this time that Kotick and the others hired Patricia Glaser from the firm of Christensen, Glaser, Fink, Jacobs, Weil & Shapiro to continue trying to fight and win their case for them.
The suit with the flight attendant was eventually settled in April of 2008 for $200,000, plus $475,000 in legal fees. However, another dispute arose when Glaser, the lead lawyer representing the trio, said that Kotick stiffed her and her firm on the bill. Glaser said that the legal fees were slightly less than $1 million but Kotick only cut the firm a check for $200,000.
On July 6, 2010 a three-panel judge sided with the lower court's ruling on the case. Thus the final amount owed is $1.42 million compared to the less than $1 million that could have been paid initially after the first suit was settled. Even more, less could have been paid if Kotick never hired Glaser's firm to continue the lawsuit in the first place and simply settled at the $200,000 with Madvig.
Madvig, who worked as a flight attendant on the jet, claimed that Berg had pressured her in 2006 to be his "arm candy" by accompanying him to dinners and outings during layovers. When she refused, Berg "set out to make life miserable for Madvig," she alleged. The lawsuit said that Berg compelled her to clean the plane's toilets repeatedly while "leering" at her.
Madvig claimed that she reported the incidents to Gordon, but did not get a response. Two months later, Kotick fired her. By way of explanation, Kotick allegedly told Madvig, "The guys are unhappy with the hostile environment."
Madvig claimed that she reported the incidents to Gordon, but did not get a response. Two months later, Kotick fired her. By way of explanation, Kotick allegedly told Madvig, "The guys are unhappy with the hostile environment."
The suit, which has its roots in sexual harassment was dragged out over a year from when it was first filed in January of 2007. During the course of the legal battle, it was said that the suit could be settled for as little as $200,000 but Kotick "believed no sexual harassment or retaliation had taken place and it was important to vindicate the principle even if it would be very expensive in terms of legal fees," according to court records. It was around this time that Kotick and the others hired Patricia Glaser from the firm of Christensen, Glaser, Fink, Jacobs, Weil & Shapiro to continue trying to fight and win their case for them.
The suit with the flight attendant was eventually settled in April of 2008 for $200,000, plus $475,000 in legal fees. However, another dispute arose when Glaser, the lead lawyer representing the trio, said that Kotick stiffed her and her firm on the bill. Glaser said that the legal fees were slightly less than $1 million but Kotick only cut the firm a check for $200,000.
The dispute over what Kotick and his fellow defendants owed Glaser's firm, meanwhile, went into arbitration. The arbitrator took testimony from 11 people, including Kotick, Gordon, Glaser, and her associate Nabil Abu-Assal, who also worked on the case.
In March 2009, the arbitrator issued a final award in Christensen, Glaser's favor. He awarded the firm $938,458, along with $479,898 in legal fees and costs incurred in the arbitration, for a total of $1.42 million. (plus 10% interest).
In March 2009, the arbitrator issued a final award in Christensen, Glaser's favor. He awarded the firm $938,458, along with $479,898 in legal fees and costs incurred in the arbitration, for a total of $1.42 million. (plus 10% interest).
On July 6, 2010 a three-panel judge sided with the lower court's ruling on the case. Thus the final amount owed is $1.42 million compared to the less than $1 million that could have been paid initially after the first suit was settled. Even more, less could have been paid if Kotick never hired Glaser's firm to continue the lawsuit in the first place and simply settled at the $200,000 with Madvig.
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