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American Apparel: The National Law Journal
 
Is it creative style, or harassment?
Employment lawyers watch for outcome in 'American Apparel' case.
 
Amanda Bronstad
 
LOS ANGELES - Dov Charney, the founder and chief executive of clothing
manufacturer American Apparel Inc., holds meetings in his underwear and
regularly refers to women using words like sluts, whores and other
socially unacceptable epithets.

But that's just creative expression, said Charney's lawyer.

Charney is facing a sexual harassment case filed by Mary Nelson, a
former sales manager at Los Angeles-based American Apparel. Mary Nelson
v. American Apparel Inc., No. BC333028 (Los Angeles Co., Super. Ct.).
Last week, at the start of trial, both parties agreed to arbitrate the
case rather than face a jury.

About five months ago, Charney recruited as lead counsel Adam Levin, a
partner at Los Angeles-based Mitchell Silberberg & Knupp, who
represented a division of Warner Bros. and other producers in a
California Supreme Court case involving a sexual harassment claim
against the writers of the television show Friends.

Employment lawyers in California are closely monitoring the outcome of
the American Apparel case, which is the first to rely significantly on
the Friends decision. Many have praised the Friends decision for
protecting employers against a host of new litigation involving vulgar
language in the workplace. Lawyers for employees have sought to
distinguish the Friends case from most sexual harassment claims.

In defending Charney, Levin frequently cites the decision, which stated
that certain sexually offensive statements and behavior were permissible
in a workplace in which writers exchanged ideas for an adult television
show. Lyle v. Warner Bros. Television Productions, 132 P.3d 211 (Calif.
2006).

Levin said Charney's workplace is no different.

"Lyle is front and center in this litigation," Levin said. "Like in the
Lyle case . . . this is not about sexual harassment. This is about the
First Amendment rights of American Apparel and its founder."

Nelson began working in sales for American Apparel in September 2003,
according to court papers. Once, Charney asked Nelson to come to his
home to discuss work. When she arrived, he showed up in his underwear.
At another meeting, Charney wore a more revealing outfit.

Charney distributed magazines with images of himself in the nude and
articles describing his sexual exploits with American Apparel employees.
He also frequently has sex with his employees and openly talks about
masturbation, said Keith Fink of Los Angeles-based Keith A. Fink &
Associates, who represents Nelson.


"If ever there was a hostile work environment, this is the one," he
said.

After Nelson contacted an attorney, Charney fired her in January 2005.

In court papers, Charney disputes Nelson's statements as "outlandish and
exaggerated accusations." He said Nelson had trouble at her job and was
being transitioned from her position.

In court papers, Levin relies heavily on the Lyle decision, in which the
court found that the plaintiff, Amaani Lyle, a former assistant to the
writers of Friends, failed to prove that the sexual comments and
gestures of some of the male writers were "severe and pervasive" enough
to warrant harassment.

"The court held that vulgarity can, in some circumstances, be a
necessary part of a creative workplace environment," said Michael E.
Brewer, managing shareholder of the Walnut Creek, Calif., office of San
Francisco's Littler Mendelson. "And it noted that the language in this
case didn't involve and wasn't aimed at the plaintiff, or at women in
general."

Levin said that Charney's comments, and the magazine images and
articles, were not directed toward Nelson, nor at women, but are part of
American Apparel's marketing and advertising campaigns, he said.

Further, Nelson never complained about being sexually propositioned or
touched.