Posted On: June 23, 2009 by Peter M. LaSorsa

Hickory Hills Country Club To Pay $690,000 To Settle EEOC Sexual Harassment, Retaliation and Racial Discrimination Lawsuit

Federal District Judge Rebecca Pallmeyer entered a consent decree resolving two lawsuits against Chateau Del Mar, Inc. and Hickory Properties, Inc., known as Hickory Hills Country Club. Under the decree, the defendants are required pay $590,000, including attorneys’ fees, to a class of women who endured a sexually hostile work environment and retaliation, and, in addition, up to another $100,000 to African American applicants who were denied hire because of their race, also known as racial discrimination.

The Equal Employment Opportunity Commission ("EEOC") lawsuit, filed on March 25, 2008 under Title VII of the Civil Rights Act of 1964 alleged that the principal and manager of the facility sexually harassed a class of women employees over a period of years and refused to hire African American applicants. Female employees were called derogatory names and belittled as well as enduring sexual advances and, in some instances, physical assaults.

Shortly after three of the women filed their own private federal lawsuit for sexual harassment on October 24, 2007 (captioned Curry, Knable, & Raddatz v. Chateau Del Mar, Inc., Steven Gianakas, and Hickory Properties, Inc., No. 07 C 6021), Chateau Del Mar and Steven Gianakas sued them in Illinois state court. Their seven-count complaint alleged a wide variety of claimed wrongs, including, but not limited to, physical and mental injuries, “tripping and pushing Gianakas,” breach of fiduciary duty, and destroying property. (Chateau Del Mar and Steven P. Gianakas v. Knable, et al, Circuit Court of Cook County No. 2007L012463.)

“This serious and ongoing harassment of women was unconscionable enough. Then these defendants made a bad situation worse by punishing the victims for engaging in protected activity,” said EEOC Acting Chairman Stuart J. Ishimaru. “This kind of retaliation is plainly illegal, even if it is cleverly disguised as a supposedly legitimate lawsuit.”

An EEOC investigation determined that there was reasonable cause to believe that the women were sued because they exercised their federally protected rights to protest discrimination. The circuit court of Cook County dismissed the lawsuit Chateau Del Mar and Gianakas had filed. Thereafter, the EEOC filed a second lawsuit on September 22, 2008 against Chateau Del Mar for retaliation. The three individual private plaintiffs intervened in the EEOC’s retaliation case, and all three suits were docketed as related cases before U.S. District Judge Rebecca Pallmeyer.

Both of the federal suits were resolved by a consent decree signed June 16, 2009 by Judge Pallmeyer. In addition to providing for monetary relief to victims, the decree will enjoin Chateau Del Mar and Hickory Hills from engaging in sex or race discrimination or retaliation, and require that they hire an independent monitor to accept and investigate charges of discrimination and train all of their employees on federal anti-discrimination laws. Further, Chateau Del Mar and Hickory Hills will be required to place an advertisement in the Southtown Star newspaper seeking job applicants who were rejected based on their race from March 6, 2005 to the present. EEOC will determine who is eligible for relief.

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