SETTLED: Rumoured Six-Figure Deal Ends ClizzoBridgetz as Manwhore Email Surfaces

Ms Styles & fiancee Nick... WINNING
Australia’s most rotten legal sex affair – ClizzoBridgetz -  has finally drawn to a close. Last week’s settlement will mark an end to a chapter that has staggered even the most veteran legal commentators  and gossipmongerers. On the other hand, there’s a sense of satisfaction that the legal cowboys who walk the corridors of Clayton Utz have finally had the courage to take a deep breath, swallow some pride, and walk away.

ClizzoBridgetz amply demonstrates that the truth is sometimes much, much stranger than fiction.  We could write a thrilling novel about this saga, we seriously could. But instead, we’ve spent the weekend whittling it down to 2,428 words. We hope you’ll enjoy.

The Scoop

Late Thursday we received an email the text of which stated “Styles has settled. Stay tuned.” And tuned we stayed only to receive, in 24 hours, a dozen or so additional notifications of substantially the same kind. Thanks everyone for keeping us informed. We were also sent the Official Media Release, which, apparently, was the final bone of contention between the parties and over which much wrangling was fought.

Ex-HCA Justice Michael McHugh held a mediation between the parties last Tuesday. If one of Australia’s pre-eminent legal minds couldn’t bring an end to this dispute, who could?

Congratulations to The Hon. McHugh (and to Darryl McDonough himself) for eliciting the following comment from Clutz’s CEP in the official media release:

I am pleased we were able to reach a settlement with Ms Styles. During her time at the firm, Ms Styles demonstrated that she has very good legal skills. We wish her well in her legal career.

“Well” is precisely how Ms Styles appears to be going: she missed the making of final orders in both the defamation proceeding (297774 of 2009) and the sexual harassment/victimisation/intentional tort proceeding (66430 of 2011) because she was appearing as a barrister in another case. Ms Styles completed the NSW Bar Association Bar Practice Course in October 2011.

So how was agreement reached? We think the eminent mediator would have drawn the parties’ attention to a few things in particular.

The Cases For & Against – How Mediation Occurred

The ClizzoBridgetz Burrito Dick Montage, exclusively revealed by Firm Spy a couple of weeks ago, was cause of some hardline legal wrangling in the months prior to the settlement. The Montage ultimately led to the publication of some highly interesting judicial reasons, in the process exposing some even murkier (if that’s possible) allegations between Bridgette Styles and her former firm. We thought that, given the finalisation of the dispute, an analysis of Justice McCallum’s decision was warranted. It offers a painfully candid insight into what life might be like at Clayton Utz if Bridgette Styles’ allegations had ultimately been proven, but also shows the arguably tough stance Justice McCallum was taking to Ms Styles’ interlocutory applications.

The Manwhore Email

According to the reasons published in Styles v Clayton Utz (No 2) [2011] NSWSC 1219, Ms Styles sought to amend her Amended Statement of Claim to include, inter alia, reference to an email sent from Clayton Utz Senior Associate Luis Izzo’s email account. The email allegedly stated:

a. / have an intranet photograph to die for;

b. / am THE Italian Stallion:

c. / have the best hair in all of Sydney;

d. if I see you in the lift, I’ll grace you with a head nod…But please don’t come up to me at work drinks – I’ll just pretend I don’t know you;

e. in metro-manwhoreness, Luis “Greasy” Izzo, Solicitor/ Workplace Relations/Clayton Utz.

And with the context in mind, let’s move onto Ms Styles’ lost applications.

The Lost Applications

Firstly, a short update regarding a decision published by Justice McCallum, but inexplicably unavailable to be viewed via regular search engines: Styles v Clayton Utz [2011] NSWSC 1022. It appears Justice McCallum granted leave in that application for Ms Styles to amend her pleadings and to file an Amended & Consolidated Statement of Claim in the sexual harassment proceedings. Having been granted leave, Ms Styles filed the amended and consolidated pleading, but at the same time sought leave to again amend it, a move that was hotly contested by Clutz and led to Styles v Clayton Utz (No 2) [2011] NSWSC 1219.

Counsel Styles leaving court

Ms Styles’ sexual harassment claim was founded, in part, on the display in her former Clutz office of (1) a montage of photographs of Clutz lawyer Mr Luis Izzo containing various captions (referred to by us as “The Burrito Dick Montage”): and (2) a framed photograph of the same fellow. What became clear as a result of Justice McCallum’s decision is that it was previously uncertain whether, in relation to (1) The Burrito Dick Montage, Ms Styles was alleging:

  1. it was so intrinsically offensive in its own right to amount to amount to sexual harassment; or
  2. it formed part of a broader context within which the sexual harassment took place.

That question appears to have been complicated by Ms Styles’ Counsel who confirmed when questioned by Justice McCallum on the issue that The Burrito Dick Montage was intrinsically sexualised, capable of grounding a claim of sexual harassment in its own right. However, Ms Styles’ new application sought to amend her pleading so as to allege that The Burrito Dick Montage formed part of a broader context within which sexual harassment took place (ie No. 2 above) but nevertheless that, of itself, and with the benefit of particulars to be inserted into her pleading, it was in any event sufficiently offensive of itself to base the sexual harassment allegations (ie attempting to plead (1) and (2) in the proposed amendment).

Justice McCallum stated in her Honour’s reasons:

[11] “Paragraph 25 of the proposed amended pleading addressed the montage, providing a series of contentions as to ways in which it was alleged to be a sexualised portrayal of Mr Izzo.”

Ms Styles sought to amend the pleading through the insertion of the following new paragraph:

25A The Montage appeared to the plaintiff to be a joke lampooning Izzo’s reputation within the Sydney Office as a man who had slept with a number of colleagues.

Particulars

The plaintiff drew this conclusion based on her observations that:

(i) Izzo’s reputation, as a Casanova, was based on his conduct in boasting about having slept with colleagues including her:

(ii) the Montage was located outside her office:

(iii) the Montage contained no apparent reference to Izzo’s work as a solicitor;

(iv) the Montage contained, instead, a text bubble stating: “[We're] pretty sure there’s a lot more to life than being really, really, ridiculously good looking [Luis] We hope you plan on figuring out what that is”; and

(v) the Montage contained a photograph of Izzo making what the plaintiff understood to be a sexualised hand gesture:

Particulars

The hand gesture is formed by extending the index and little fingers while holding the middle and ring fingers down with the thumb.

The Rock Horns? Of course, Gene Simmons’ outstretched hand on the cover of Love Gun!! That cheeky rock-devil! But what did Clutz have to say about the rock-horns grounding a claim for sexual harrassment?

Well, Counsel for Clayton Utz contended that an essential element of the claim being brought by Ms Styles is the need to establish that the conduct complained of (ie the creation of The Burrito Dick Montage) “in fact be conduct of a sexual nature in relation to [Ms Styles] [19]” (our emphasis). Justice McCallum eventually agreed with Counsel for Clutz that Ms Styles had failed to adequately plead that The Burrito Dick Montage, of itself and without the surrounding context, was ”conduct of a sexual nature”. Said her Honour:

[27] “that allegation [as pleaded] imports matters extrinsic to the montage and is not based on the appearance of the montage itself.”

Bad news for Ms Styles, but … here is where things got juicy, juicy like a sopping wet burrito!

You see, leave was also sought by Ms Styles to insert another paragraph into her amended pleading in relation to the (2) framed photograph of Luis Izzo. Said her Honour:

[11] “The framed photograph was addressed in paragraph 27(h) of the proposed amended pleading, which alleged that the photograph “was understood to have sexual connotations within the Workplace Relations Group” of Clayton Utz.

That contention was, in turn, sought to be sustained by reference to two emails circulated within that group. Specifically, Ms Styles sought leave to insert the following paragraph into her amended pleading:

The framed photograph:

(ff) was perceived by the plaintiff to be a joke of a sexual nature, implying she was “in love” with Izzo, because people generally only keep, in expensive looking photograph frames in their offices, flattering portraits of adults whom they “love,” namely their romantic partners or spouses.

Justice McCallum refused to accept [30] that the display of an “anodyne photograph” could amount to conduct of a sexual nature. Having failed to satisfy this gateway provision, Justice McCallum nevertheless took a walk through the prayer for relief which included reference to the “Manwhore Email” extracted above. We’re hosting a full copy of the amended pleading here.

Judicial Intervention & The Narrowing Dispute

For what it’s worth, we found it interesting that Justice McCallum took the stance above with respect to Ms Styles’ application to amend her pleading. It is notorious that some barristers face difficulty in attempting to state each material fact that, if proven, will make out the claim for which they seek redress. Here we see an attempt by Counsel for Ms Styles which failed.

Consistent with recent trends, Justice McCallum took a relatively interventionalist approach in refusing to accept that the “material fact” of a photograph in a frame of an individual Ms Styles had sex with could, of itself, amount to conduct of a sexual nature. Likewise, the Montage of Mr Izzo, which, by the sounds of it, contained at least one arguably graphic image, was dismissed by her Honour as incapable of supporting an assertion that it was sexual conduct in relation to Ms Styles.

Having lost the application, Ms Styles had a considerably narrower scope to argue in respect of the 64430/11 dispute. As we’ve already written at length, her intentional tort claim would probably have been a test case, leaving just the victimisation limb and the separate defamation proceeding (297774/09). Both of these latter causes of action would have required the testimony of many of Ms Styles’ former colleagues who, presumably, would have had ample motivation to testify in a manner that coalesced with the designs of their employer.

We imagine The Hon. McHugh would have clarified these issues with Ms Styles at length last Tuesday, perhaps partially explaining how settlement was eventually reached.

The Public Shame, The Young Gun & The Early Christmas

an early xmas for Ms Styles
So the settlment deal is obviously confidential, however we have heard from numerous sources over the weekend that it was a six-figure deal. That’s a November Christmas for Bridgette Styles, alright!

But let’s not forget the bargain from the Clayton Utz perspective. Certainly, there is enough in the deal to warrant a six-figure payment. In the first place, there is a full stop on a saga that was listed for a six week trial early next year. The firm was being represented by Freehills, so, even to the exclusion of resources being utilised within the firm, by settling the dispute now we are looking at a saving that we conservatively estimate would exceed seven figures. But if we include resources within Clayton Utz itself, remembering of course that the entire partnership were named as defendants in one of the proceedings, we’re looking (we think) at several million bucks. Just to let it go away.

In monetary terms, by settling, Clutz will probably net a saving of a few million in unrecoverable legal expenses. Not a bad deal, by any stretch.

It will also retain the services of Luis Izzo, who, despite his alleged intra-office promiscuity (and in the man’s defence – let’s face it, there are cavalier pantsmen in all corporate offices), is undoubtedly regarded by his superiors as a high-achieving young lawyer. Indeed, Mr Izzo was elevated to Senior Associate despite the allegations associated with ClizzoBridgetz. Not to mention, again in spite of ClizzoBridgetz, his very recent hosting of a CLE seminar held by the Blue Mountains Regional Law Society on – of all the possible topics – “Misbehaving or Poorly Performing Employees”. So, in arresting the dispute at this arguably belated stage, Clayton Utz has been able to quarantine a clearly valued employee from any further public scrutiny and save a few million to boot!

Of course, it also goes without saying, that by settling Clizzobridgetz Clayton Utz is bringing to an end a PR Nightmare of epic proportions. Indeed, on both sides of the dispute, there were clearly compelling reasons to cave.

Final Thoughts

So where does this leave us? Well, we’ve got two individuals whose careers are at least partially restored. We’ve got Bridgette Styles who is commencing work as a barrister and Luis Izzo who will continue to work as a Senior Associate at Clutz. We sincerely wish them both the best of luck as they move forward.

Less clear is where this leaves Clayton Utz. We have remained baffled that the firm allowed this dispute to continue for as long as it did. On the one hand, there is the business imperative to ensure the firm isn’t recklessly paying out on unmeritorious legal claims – a flood of similar claims could be instituted by other disaffected employees. On the other hand, there is the enduring legacy that is left when a firm is embroiled in proceedings. Law firms should be representing parties in proceedings, not appearing as a party. One would have thought this message was made plain by the McCabe document shredding incident.

As always, we invite your views below. This is your last chance.

Send the Firm Spy your news and views!

PS – if anyone has Ms Styles’ email address, please send it to us – news@firmspy.com

VN:F [1.9.13_1145]
Rating: 4.2/5 (9 votes cast)
VN:F [1.9.13_1145]
Rating: +3 (from 15 votes)
SETTLED: Rumoured Six-Figure Deal Ends ClizzoBridgetz as Manwhore Email Surfaces, 4.2 out of 5 based on 9 ratings