Gherardi v. Citigroup Global Markets Inc.

Christian S. Gherardi (plaintiff) was hired by Citigroup Global Markets Inc. (Citigroup) (defendant) as a financial advisor in 1996. Gherardi’s employment was governed by three documents: a dual-employment agreement, the Citigroup Handbook (handbook), and the employment arbitration policy in the handbook (the employment documents). The employment documents all unambiguously and repeatedly provided that Gherardi’s employment was at will, which was explained to mean that the employment could be terminated at any time by Gherardi or Citigroup, with or without notice, for no reason or for any reason. The handbook also contained a provision prohibiting Citigroup retaliation against any employee who filed any employment claim. The arbitration clause in the handbook required all disputes to be resolved in arbitration. Citigroup terminated Gherardi’s employment in 2015. Gherardi initiated arbitration proceedings against Citigroup for wrongful termination. Citigroup defended its decision, noting Gherardi’s employment was at will and therefore Citigroup could terminate Gherardi at any time for no reason or for any reason. Gherardi countered that the antiretaliation provision could be interpreted to be an exception to employment at will. Gherardi argued in the alternative that even if the documents unambiguously stated that Gherardi’s employment was at will, the documents were susceptible to interpretation because they could contain implied terms to negate his at-will status. After a hearing and post-hearing filings, the arbitration panel granted Gherardi’s wrongful-termination claim. Citigroup appealed on grounds the arbitration panel exceeded its authority by disregarding the plain “at will” language in the employment documents.