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Case Name United States v. First National Bank of Pontotoc FH-MS-0006
Docket / Court 3:06-cv-00061 ( N.D. Miss. )
State/Territory Mississippi
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On April 27, 2006, the United States government filed a lawsuit in the U.S. District Court for the Northern District of Mississippi against First National Bank of Pontotoc (the "Bank") and its former Vice-President, under Equal Credit Opportunity Act (ECOA). The U.S. sought damages, declaratory and ... read more >
On April 27, 2006, the United States government filed a lawsuit in the U.S. District Court for the Northern District of Mississippi against First National Bank of Pontotoc (the "Bank") and its former Vice-President, under Equal Credit Opportunity Act (ECOA). The U.S. sought damages, declaratory and injunctive relief, alleging that the defendants engaged in a practice or pattern of gender discrimination against female borrowers, female applicants for credit, and female account holders. Specifically, the U.S. alleged that the Vice-President sexually harassed the aforementioned women, and the Bank was liable for his actions. According to the DOJ press release, the Vice-President's actions included offensive comments, unwanted sexual touching, and demanding sexual favors from female customers over a period of years until his employment ended in May of 2004.

On July 6, 2006, the Vice-President filed a motion to dismiss. On November 3, 2006, the Court (Judge Glen H. Davidson) dismissed the motion.

On July 11, 2007, the U.S. filed an amended complaint, adding allegations of gender discrimination under the Fair Housing Act, 42 U.S.C. §§ 3601 et seq. In other respects, the complaint reiterated the original allegations. On July 25, 2007, the Bank filed a cross-claim against its former Vice-President, denying liability for the latter's actions and seeking compensation from him to the Bank for any liability imposed on the Bank.

The parties entered into settlement negotiations and reached an agreement. On November 7, 2007, the Court entered the parties' consent decree. The decree contained general injunctions on gender discrimination in: 1) application for credit: 2) residential real-estate related transaction; 3) terms or conditions of residential real-estate transactions. If the Vice-President resumed engagement in residential real-estate transaction, he had to provide notice to the plaintiff and go through a fair lending laws training, with focus on sex discrimination and harassment. The Bank agreed to institute anti-discrimination policies, including posting notices in media, and a complaints procedure for sexual harassment. The Bank also agreed to provide fair lending training to its present and future employees, focused on sexual harassment. The Bank agreed to pay $130,000.00 in damages to victims of sexual harassment and the Vice-President agreed to pay $120,000.00, with up to $50,000.00 for additional victims. The Bank had to pay $5,000.00 and the Vice-President $45,000.00 in civil penalty to the United States. The Bank also agreed to provide reports to the plaintiff pertaining to the consent decree. The decree remained in effect for five years and the Court retained jurisdiction over the decree for its duration.

On September 24, 2008, the Court (Judge Michael P. Mills) approved the joint stipulation of parties on disbursement of funds, and ordered payment of $50,000.00 by the Bank to 29 women with varying amounts.

Zhandos Kuderin - 07/31/2014


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Issues and Causes of Action
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Issues
Affected Gender
Female
Content of Injunction
Develop anti-discrimination policy
Discrimination Prohibition
Implement complaint/dispute resolution process
Provide antidiscrimination training
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Contracting
Lending
Discrimination-basis
Sex discrimination
General
Pattern or Practice
Plaintiff Type
U.S. Dept of Justice plaintiff
Causes of Action Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Defendant(s) First National Bank of Pontotoc
Plaintiff Description United States government on behalf of female victims of sexual harassment
Indexed Lawyer Organizations U.S. Dept. of Justice Civil Rights Division
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Damages
Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2007 - 2012
Case Closing Year 2012
Case Ongoing No
Docket(s)
3:06−cv−00061 (N.D. Miss.) 09/24/2008
FH-MS-0006-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Sexual Harassment of Costumers Alleged Against Mississippi Bank and Former Employee 04/27/2006
FH-MS-0006-0005.pdf | Detail
Complaint 04/27/2006
FH-MS-0006-0007.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order Denying Motion to Dismiss 11/02/2006 (N.D. Miss.)
FH-MS-0006-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
First National Bank of Pontooc's Answer to Amended Complaint and Cross-Claim 07/25/2007
FH-MS-0006-0008.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Decree 11/06/2007 (N.D. Miss.)
FH-MS-0006-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Justice Department Settles Sexual Harassment Lawsuit Against Mississippi Bank and Former Bank Vice President 11/06/2007
FH-MS-0006-0006.pdf | Detail
Proposed Order 09/19/2008 (N.D. Miss.)
FH-MS-0006-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Amended Complaint 07/11/2011
FH-MS-0006-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Davidson, Glen H. (N.D. Miss.)
FH-MS-0006-0001
Davis, Jerry A. (N.D. Miss.) [Magistrate]
FH-MS-0006-0004 | FH-MS-0006-9000
Mills, Michael P. (N.D. Miss.)
FH-MS-0006-0003 | FH-MS-0006-9000
Monitors/Masters None on record
Plaintiff's Lawyers Dougherty , Burtis M. (District of Columbia)
FH-MS-0006-0002 | FH-MS-0006-0007 | FH-MS-0006-9000
Kim, Wan J. (District of Columbia)
FH-MS-0006-0002 | FH-MS-0006-0007
Kirwan, Tanya Ilona (District of Columbia)
FH-MS-0006-0002 | FH-MS-0006-0007 | FH-MS-0006-9000
Murphy, Donna M. (District of Columbia)
FH-MS-0006-0002 | FH-MS-0006-0007 | FH-MS-0006-9000
Rosenbaum, Steven H. (District of Columbia)
FH-MS-0006-0002 | FH-MS-0006-0007
Defendant's Lawyers Abel, Cameron (Mississippi)
FH-MS-0006-9000
Frye, William Davis (Mississippi)
FH-MS-0006-0008 | FH-MS-0006-9000
Hauberg, Robert E. Jr. (Mississippi)
FH-MS-0006-9000
Malski, Michael C. (Mississippi)
FH-MS-0006-9000
Tollison, Grady F. Jr (Mississippi)
FH-MS-0006-9000
Other Lawyers None on record

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