Former JP Morgan Chase CEO Rob Lewis’ $498,000 claim alleging injurious falsehood and negligent misstatement was dismissed by the High Court.
Mr Lewis claimed JP Morgan misrepresented his employment history, prejudicing efforts to get work in the banking sector. He left JP Morgan in 2010, twenty months after appointment as chief executive officer. His negotiated departure was publicly described as being the result of JP Morgan shifting local operations from Auckland to Wellington. Each agreed not to make any disparaging comments about the other. Job applications at Westpac came to nothing; because JP Morgan misrepresented his employment history and his job title, Mr Lewis said.
The court was told of JP Morgan with its 250,000 staff worldwide giving employees a functional title (describing actual job responsibilities) and an officer title (describing rank within the organisation). Mr Lewis’ functional title was Treasury Sales Team Leader; his officer title Vice President. Mr Lewis was also given a ‘regulatory title’ of chief executive officer to satisfy Reserve Bank requirements that overseas incorporated banks operating in New Zealand must have a New Zealand-domiciled CEO. There was no record on JP Morgan’s employee database of his ‘regulatory title;’ with only two fields available, there was no space.
Justice Powell dismissed complaints of misrepresentation by JP Morgan. The employee database is a JP Morgan internal record. Information is released only with employee approval. There was no evidence that Westpac obtained any erroneous information from JP Morgan. It did not ask for database information. Westpac senior staff had previous business dealings with Mr Lewis and knew his status and standing within JP Morgan. It was clear Westpac chose to promote an internal candidate in preference to employing Mr Lewis, Justice Powell said. This decision was independent of any previous job designation Mr Lewis previously held.
Mr Lewis alleged the ‘Statement of Service’ made available to prospective employers by JP Morgan was incorrect and misleading; it itemised his term as CEO whilst also mentioning his functional and officer titles. Reference to his role as CEO alone would itself be misleading, Justice Powell ruled.
Lewis v. JP Morgan Chase Bank N.A. – High Court (31.07.19)
19.142