The Philadelphia District Office of the EEOC filed two Title VII suits against defendant, an Allentown, Pennsylvania business unit of International Paper Company that distributes lumber and provides related services. In one case, Philadelphia alleged that defendant subjected charging party (the Vice President of Sales (VP)) to same-sex sexual harassment, retaliated against him for opposing the harassment, and constructively discharged him due to the retaliation. In the other case, the district office claimed that defendant discharged a second CP (the President) in retaliation for opposing harassment of the VP.

Beginning in 2000, one of defendant's co-owners (two brothers) subjected the VP to unwelcome sexual conduct, including kissing, inappropriate touching, sexual comments, and requests for sexual favors. In December 2003, the co-owner offered to make the VP an officer and to structure a bonus program to reward CP's success in turning the company around, but demanded a sexual act in return. The VP refused and complained in writing to the President, who promptly commenced an investigation which substantiated the allegations.

The company's attorney recommended remedial measures and the co-owner apologized to the VP by letter. After the internal investigation began, both co-owners berated the CPs in front of staff and questioned their loyalty, and the President was told he would not receive his expected 2003 bonus (over $500,000) because of anticipated litigation over the VP's sexual harassment complaint. Defendant suspended both CPs in early March 2004, the President for disloyalty and the VP for refusing to turn over his laptop computer as "forensic evidence." Defendant fired the President on March 12 and the VP resigned several days later.

Under the 2-year consent decree resolving both suits, the CPs will receive $3.1 million in monetary relief ($1.9 million for the President and $1.2 million for the VP).

EEOC v. Eastern Engineered Wood Products, Inc.
Nos. 04-4490 and 05-4786 (E.D. Pa. June 13, 2006)