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Corporate credit cards. REUTERS Jim Bourg

Court faults attorney who billed clients for escort services

1/5/2012 COMMENTS (0)

NEW YORK, Jan 5 (Reuters) - An appeals court Thursday tossed out a $600,000 discrimination judgment against a law firm that fired an attorney claiming to have bipolar disorder who billed clients for personal expenses, including hotel rooms, pornographic movies, and escort services.

The Appellate Division, First Department, criticized an administrative law judge at the State Division of Human Rights for "incomprehensibly" finding in favor of James Hazen and awarding him $50,000 for mental anguish. A subsequent order from the departmental commissioner -- after Hazen appealed, seeking lost wages -- had granted an additional $550,000 in lost pay.

The court found that the law firm, Hill Betts & Nash, had no indication that Hazen suffered from bipolar disorder at the time it terminated him in 2006, since he refused to give them any details about a "mood" problem he claimed was the cause of his actions.

"All that was before HBN when it terminated the petitioner on February 3 was that he had charged more than $21,000 in hotels and other personal expenses to the corporate credit card and tried to bill HBN's clients for personal expenses," Justice James Catterson wrote for the unanimous panel.

The court also faulted Hazen for claiming that he turned to hotel rooms and escorts only when he suffered from bouts with his mental illness, since he also acknowledged booking the rooms weeks in advance and admitted he had done the same thing in 2001, when he tried to list an escort as a client expense.

"The only way to credit the testimony that his disorder caused him to engage in such behavior, is to accept the preposterous notion that he was able to predict his mental state weeks in advance and plan accordingly," Catterson wrote.

Moreover, even if his mental illness led to his actions, "a petitioner's disability does not shield him from the consequences of workplace misconduct," according to the ruling.

Thus, even if there were evidence that his behavior was attributable to his disorder -- which, the court emphasized, it did not believe -- "the firm was not required to excuse that misconduct as an accommodation," Catterson wrote.

William Roth, Hazen's attorney, said his client had not yet decided whether to appeal.

Diane Windholz, the lawyer for Hill Betts & Nash, said she and the firm were "very pleased" with the decision.

"They clearly found that the firm at all times acted appropriately with regard to Mr. Hazen," she said.

The case is Hazen v. Hill Betts & Nash et al, Appellate Division, First Department, New York State Supreme Court, New York County, No. 5517.

For Hazen: William H. Roth

For Hill Betts & Nash: Diane Windholz of Jackson Lewis

(Reporting by Joseph Ax; additional reporting by Leigh Jones)

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