Judge Dismisses Third-Party Demand From Sexual Harassment Lawsuit Against CEOs

A Louisiana federal judge dismissed a credit union’s third-party demand last week against one of its two former CEOs who allegedly subjected a former executive to numerous incidents of sexual harassment, discrimination and retaliation that created a hostile work environment, leading to his termination.

In court documents, the $406 million OnPath Federal Credit Union in Harahan, La., has repeatedly denied the allegations made by Matt Harney in his federal lawsuit. He alleged two former OnPath CEOs, Mignhon Tourné and Sonya Jarvis Lawler, sexually harassed him while he worked as the credit union’s director of operations from 2010 to 2019.

However, when OnPath filed an answer to Harney’s lawsuit that denied his allegations, the credit union made a third-party plaintiff demand against Lawler alleging that her actions were intentional and reckless, which breached her executive duties, damaging the credit union’s reputation that caused revenue losses and the lack of confidence among its 137 employees. This third-party demand was not made against Tourné.

Last month, Lawler’s lawyer asked a federal judge to dismiss the credit union’s third-party action, arguing that it was legally improper and that the credit union’s third-party action failed to contain sufficient facts to raise a reasonable expectation that would reveal evidence of Harney’s claims.

“Despite the fact that Ms. Lawler steadfastly denies that she harassed or retaliated against Plaintiff in any way, in an unprecedented (and legally improper move) OnPath filed a third-party demand against Ms. Lawler claiming that she violated her alleged fiduciary duty to OnPath,” her lawyer wrote in court documents.

On Nov. 3, OnPath agreed to dismiss its third-party demand, which means she’s off the hook for any compensatory or punitive damages. The dismissal of the third-party demand was approved by a federal judge last week.

Harney’s lawsuit has not been dismissed.

The lawsuit alleged Tourné sexually harassed him, and included claims that she repeatedly told him the sexual acts she would do to him and that they should run away together even though she knew he was married. In addition to the sexual harassment, Harney also alleged that many times over several years, Tourné allegedly forced him to take vacation days to work on her properties at Covington and Metairie.

Tourné stepped down in 2016. There was no specific reason given for her resignation, though she continued as CEO until her replacement was found and had planned to serve as a consultant for the credit union.

In May 2016, Lawler was appointed CEO.

Harney claimed she set up private Gmail accounts for him and her, which she allegedly used to send him sexually explicit emails and texts. Court documents also revealed that during an after-work hours dinner with Lawler, Harney and another executive, the former OnPath CEO placed her hand on Harney’s leg and crotch.

In January 2019, Harney was contacted by a lawyer for the credit union’s supervisory committee. During their three-hour meeting, the lawyer questioned whether Harney had an improper relationship with Lawler and about sexual harassment.

He claimed to have denied having a sexual relationship with Lawler, but confirmed the alleged sexual harassment incidents.

Harney said he was unlawfully terminated in June. Sometime after that, Lawler was named CEO at the $367 million Navigator Credit Union in Pascagoula, Miss.