PHOTO: Shauncy Claud, a former real estate agent, sued Brown Harris Stevens of the Hamptons for terminating her contract after she reported racial discrimination at the firm. THE REAL DEAL
A federal judge recently ruled that Brown Harris Stevens of the Hamptons, a branch of one of New York City’s oldest and most prestigious real estate firms, wrongfully terminated the contract of a Black real estate agent who had raised concerns about racial discrimination within the company.
The judge, Nina R. Morrison of the U.S. District Court for the Eastern District of New York, awarded Shauncy Claud, an independent contractor who had worked for the firm for eight months, $788,000 in back pay, punitive damages against the firm, and damages for emotional distress. Claud had informed a senior managing director that her direct supervisor was not providing her with the same level of support and mentoring as her white colleagues.
According to court documents, Claud, who was 35 years old at the time, was the only Black agent and one of just two Black employees across the firm’s six offices, which employed around 130 to 140 real estate agents.
Brown Harris Stevens of the Hamptons has stated that it will appeal the judge’s decision. The company’s spokesperson mentioned that a previous ruling had dismissed Claud’s discrimination claim, and they expressed disappointment with the current ruling, emphasizing the firm’s commitment to non-discrimination.
During the trial, Brown Harris Stevens’ lawyer argued that Claud saw things through a racial lens. The firm claimed that it terminated her contract due to a client’s daughter complaining about Claud’s “rudeness” during a phone call. Initially, the firm believed the daughter was a client.
However, Judge Morrison found Claud’s version of events credible and stated that the awarded damages would serve as a deterrent against retaliation by firms like Brown Harris Stevens, urging employees to raise good-faith claims of racial discrimination with management.
Claud expressed her encouragement and relief with the judge’s decision, stating that it validated her long-held thoughts and feelings. She recounted how the firm had abruptly terminated her contract while she was relaxing at a friend’s pool, leaving her stunned and disheartened.
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Having grown up in Southampton, Claud had aspired to succeed in the real estate industry in her local community. However, after joining Brown Harris Stevens of the Hamptons, she struggled to receive the necessary support to thrive as a new agent. The lack of diversity within the company was not a new issue, as testified by Vanessa Leggard, a Black social media strategist who worked at the firm simultaneously with Claud.
Claud’s legal team successfully argued against the firm’s claim that her alleged “rudeness” justified her termination, highlighting the differential treatment of a white agent who had faced charges of endangerment and harassment but was retained by the company.
While Brown Harris Stevens plans to appeal the ruling, the decision brings vindication to Claud, who faced numerous rejections from attorneys before finding representation. Although discrimination cases involving independent contractors are rare, federal civil rights law offered protection in Claud’s case, supported by substantial evidence presented by her legal team.