A CBS executive who was sacked after the network accused him of calling an anchor “too gay”, has won a pay out of nearly £10 million.
Peter Dunn was suspended by CBS in 2021 amid allegations the television executive had made racist, sexist and homophobic remarks at work.
However, an appeals panel has found that the former executive was fired before an investigation into his conduct was complete, thereby breaching his terms of termination.
The network’s actions have “destroyed” Mr Dunn’s life and kept him from getting any other jobs as a result, his lawyers said.
“This was never about Peter’s conduct — it was to appease the woke mob,” his lawyer, Larry Hutcher, told The New York Post. “It was like the Red Scare, and it was very shortsighted and unfair.”
It is the latest blow to the network after it was accused of political bias in the lead up to the election.
Dunn accused of racist comments
Mr Dunn was placed on leave in 2021 after an article in the Los Angeles Times accused him of fostering a hostile work environment.
One former employee claimed the executive, who had worked at the network for 20 years, had made “racist, sexist, homophobic and discriminatory comments,” including calling an anchor “too gay”.
Another said he had called a black presenter at a Philadelphia affiliate a “jive guy”.
Before finishing its investigation, CBS fired Mr Dunn, writing in his termination letter that he would continue to be paid “as though your termination is without cause,” and it could alter the termination terms once the investigation ended, according to court filings.
But when the investigation was finalised four months later, the network changed his termination to “for cause” – denoting serious misconduct that justifies dismissal – thereby stripping him of millions in payouts owed in equity and back pay.
“The proper and prudent response would have been to suspend him, continue to pay him, wait for the investigation to be completed, and then fire him,” Mr Dunn’s lawyer said.
When the case moved to arbitration last year, a panel of retired judges ruled that CBS had to determine at the time of Mr Dunn’s sacking if it was “for cause” or “without cause”.
The employment contract did not allow for “a new and nebulous third option” a judge wrote last year.
CBS strongly disagrees with appeal win
After CBS appealed the decision, a second arbitration board ruled in Mr Dunn’s favour last week, ordering the network to pay him $7 million plus interest, equating to a total of $9.78 million.
“This case was always about Peter Dunn trying to restore his otherwise impeccable reputation that he spent over 20 years at CBS developing,” Mr Hutcher said.
“We are grateful that the original arbitrator and that the appeals panel agreed with Mr Dunn that he had been wrongfully terminated, and that we look forward to the award being confirmed in [court] so that we can enforce this judgment.”
A CBS spokesman told The Post that a “procedural issue” led to the arbitration ruling in his favour, and that it “strongly” disagrees with the decision.
“Four years ago, we removed Peter Dunn as head of the CBS Television Stations for reasons that have been well documented and reported publicly,” the spokesman said. “This decision was not based on the substance of the allegations against Mr Dunn.”
CBS has been rocked by a series of resignations in recent months after Donald Trump sued the news outlet amid claims it doctored an interview with Kamala Harris to make her appear more coherent.
Wendy McMahon, the CBS president, resigned this week, following hot on the heels of 60 Minutes executive producer Bill Owens, who left amid claims of encroachment on journalistic independence.
The departures have fuelled speculation that the network’s corporate parent will soon settle its lawsuit with Mr Trump.