Ex-Penguin CEO had consensual relationship with employee: Lawyer (Second Lead)

TORONTO - India-born David Davidar, former chiefof Penguin-Canada, who was forced to leave his job following charges of sexual harassment, reportedly “had a consensual flirtatious relationship that grew out of a close friendship with a colleague Lisa Rundle”, said a statement released by Davidar’s counsel from Toronto Monday.

Davidar was forced to quit earlier this month following allegations of sexual harassment by Rundle who filed a $523,000 lawsuit against Penguin claiming she had been sexually harassed by Davidar for three years followed by an outright assault by the former CEO at the Frankfurt Book Fair.

“David Davidar has not sexually harassed anyone and has not assaulted anyone… He deeply regrets the hurt this has caused his wife,” said the statement by Peter A. Downard of Fasken Martineau DuMoulin LLP, a leading Toronto-based law firm that has been engaged as litigation counsel on behalf of Davidar.

Explaining the nature of the relationship, Downard said: “Commencing in late 2005, Davidar and Lisa Rundle (the former director of digital publishing and foreign rights at Penguin-Canada) had offices next to each other at Penguin. They became friends. At work, Davidar and Ms Rundle spent significant time in each other’s offices.

At Rundle’s invitation, Davidar played tennis with her at her tennis club. They went to a tennis tournament together. They attended the theatre together. They had lunches in restaurant together. Davidar came to think of Rundle as his closest friend and confidante at work.”

In 2007, their friendship became flirtatious, the statement said.

“Davidar suggested to Rundle that their relationship become more romantic. Rundle informed Davidar that she had more than one suitor - Davidar amongst them - and that it would be important to her that any such relationship not be secret, the statement said.

“Davidar accepted the situation and the flirtatious relationship continued. Davidar wrote Rundle personal emails, read poetry to her and they exchanged gifts from time to time. Throughout this friendship, Davidar would ask Rundle if she liked the attention he was paying her and she indicated she did,” it said.

Davidar’s counsel said “the former Penguin-Canada CEO and Davidar kissed on two occasions”.

“The first was in Rundle’s room during the October 2008 Frankfurt Book Fair referred to in Rundle’s claim. However, contrary to Rundle’s claim, Davidar did not bully his way into her room nor did he force himself upon her,” the statement said.

Davidar and Rundle spent two days in Frankfurt. Following the Frankfurt trip, Davidar travelled to India on business. “While Davidar was there (in India), his father became critically ill. Davidar extended his trip to be with his father in his final days. While away, Rundle sent an email to Davidar expressing her concerns and extending ‘her best thoughts’,” the statement said.

Davidar returned to Toronto after his father’s funeral before the Christmas of 2009.

Later in January 2010, Rundle requested a pay increase.

“Davidar reminded her that her salaries at Penguin were frozen. However, he offered her the role of director of digital publishing and foreign rights. This justified a pay increase of $10,000,” Downard’s statement said.

In February 2010, Davidar “took stock of his life”, saddened by his father’s death.

“He felt that he could no longer continue his personal friendship with Rundle,” the statement said.

He told Rundle that “their relationship should be confined to business”.

Davidar’s counsel said “throughout Rundle’s employment with Penguin from 2005 to 2010, she was treated fairly, receiving regular promotions, salary increases and successful assessment. Davidar was at pains to remind her from time to time that no matter what happened between them on the personal front, Rundle’s professional career with Penguin would never suffer.”

Davidar’s counsel said “in the wake of media publicity over Rundle’s claim, Rundle’s counsel had issued a media statement regarding Samantha Francis, a former Penguin employee, who had allegedly complained of similar harassment and withdrew it later”.

Downard said the “statement also required a clarification from Davidar”.

Samantha Francis was a Davidar’s executive assistant in 2006 and 2007. Davidar had allegedly engaged in flirtatious banter with her for a short period of time. He did not engage in conduct towards Francis that he knew or should have known was unwelcome, the statement said.

The communique ended saying “he was happily married”.

“He deeply regrets the trouble that has been visited on his wife in recent days. He apologises to her,” the statement said.