Shareholder Lacked Standing to Assert Discrimination Claim Under the New York State Human Rights Law, Court Holds

In Spinosa v The Interpublic Group of Companies, Inc., No. 150110/2019, 2019 WL 3815279, at *3 (N.Y. Sup Ct, New York County Aug. 14, 2019), the court dismissed plaintiff’s discrimination claim under the New York State Human Rights Law.

Here, the plaintiff is the owner and CEO of a company called Spin.

After explaining the dismissal of plaintiff’s breach of contract claim (on a third-party-beneficiary theory), the court turned to plaintiff’s Human Rights Law claim.

It explained:

Spinosa lacks standing to allege that IPG violated the New York Human Rights Law. A plaintiff that alleges discrimination in employment “has the initial burden to establish a prima facie case of discrimination.” Forrest v. Jewish Guild for the Blind, 3 N.Y.3d 295, 305 (2004). To have standing, plaintiffs must have more than an interest in whether parties are being discriminated against; they must have also alleged injuries as a result of the discriminatory conduct. See Village of Chestnut Ridge v. Town of Ramapo, 45 A.D.3d 74, 89 (2d Dep’t 2007). As with her claim for breach of contract, Spinosa alleges harm to Spin, not to herself (other than as a shareholder of Spin). Accordingly, she cannot bring this claim in her individual capacity.

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