Adams Stirling PLC


QUESTION: We have a female director who is sleeping with our manager. She goes on weekend jaunts and vacations with him. Our board president allows her to remain in executive sessions when we discuss problems with the manager. This has caused problems between the manager and board members who have been critical of the manager. How do we handle this?

ANSWER: The situation you described exposes your association to significant potential liability. If you were to terminate the manager's services, he might sue claiming sexual harassment. Right now he probably considers sex with a director to be a perk of the job. Once he is terminated, he might claim that he "had to" sleep with the director because she was his employer. Employment litigation is quite costly. To avoid such problems, your amorous director should immediately resign from the board. Then she can spend as much time as she wants with the manager without jeopardizing the association. You should also check with the association's insurance broker to make sure you have employment practices liability coverage.

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Adams Stirling PLC