News -> INDReporter TUE, MAY 10 10:52AM by Heather Miller

Karen Hail suing MidSouth

Former MidSouth Bank exec Karen Hail is suing MidSouth for what she claims is gender discrimination after being passed over for the bank’s president position without ever being granted an interview.

Hail, 57, was a 25-year employee of MidSouth, having held the positions of executive vice president, senior executive vice president, chief operating officer and secretary of the bank’s board of directors.

Hail had applied for medical leave in October 2009, but according to the lawsuit was placed on administrative leave before her medical leave paperwork was even complete.

“She was also blocked from her email accounts and told that she was required to leave the business premises,” the lawsuit states. “Plaintiff requested to speak with Rusty Cloutier, who was CEO of MidSouth Bank, regarding the adverse treatment she was experiencing, but Mr. Cloutier denied her request and failed to provide relief, instead engaging in a pattern of retaliation.”

According to the lawsuit, Hail’s relationship with the bank worsened after her return from medical leave, peaking in June 2010 when William Charbonnet, chairman of MidSouth Bancorp’s board of directors, told Hail she would not be nominated to serve on the board of directors, a position she had held for 25 years.

“When plaintiff inquired as to the reasons underlying the decision ... she was told by Mr. Charbonnet that her leave had been disruptive and that he had prayed about the meeting notifying her that she would not be renominated in hopes that she would not become emotional because she was a woman,” the lawsuit states.

From 2002 to 2004, Hail served as acting president of MidSouth while Cloutier was serving as president of the Independent Community Bankers of America, according to the lawsuit.

Performance reviews were outstanding, according to the lawsuit, including statements like “No worries when Rusty is away. They know Karen is there and the store is in safe hands.”

Yet when Hail applied for the president position in September 2010, she was never interviewed, the lawsuit says. When she asked why only male candidates were interviewed for the spot, she received a letter saying she would be terminated effective March 2011.

Hail has hired Allison Jones of Shreveport as her attorney and is seeking unspecified compensation, punitive damages and legal fees.

Cloutier was unavailable for comment this morning.

MidSouth Chief Operating Officer Jerry Reaux is named in the lawsuit as the person hired to the bank president position under a new position title. The lawsuit states that Reaux has significantly less experience than Hail but is receiving a much higher salary.

[Full Disclosure: Jerry Reaux is chairman of the board of The Independent Weekly LLC.]

 


Comments (17)add
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written by yesidoknow , May 10, 2011 - 04:11 pm
Another "unavailable for comment" guy. It seems these guys are always available for comment when they get to puff about something that illustrates their depth of knowledge and authority. I'm sure he's meeting with his attorney right now figuring out how to silence this woman.
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written by GraysonL , May 10, 2011 - 04:29 pm
You go girl, in this day and time you would think "the good ole boys club" would know we are not putting up with this type of behavior anymore. You stand up to them toe to toe and i'll be cheering you on all the way!!!
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written by dangling participle , May 10, 2011 - 04:45 pm
Mr. Clotier without comment?Has this EVER happened before?
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written by familiar , May 10, 2011 - 04:51 pm
I worked under Karen Hail and she was the most respectable executive in the institution. She was one of the founding members and dedicated her life to Midsouth Bank. It does not suprise me that she was treated in such a manner. Disappointed but not suprised.
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written by Speth , May 10, 2011 - 04:57 pm
If these charges are found to be true, I hope those who committed these misdeeds are held accountable by the shareholders.
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written by companyoutsiderthankgod , May 10, 2011 - 05:07 pm
I'm sure Mr. Reaux regrets leaving Tri Parish Bank and walking into this hornets nest. And of coarse, Donny Landry has to be laughing his ass off.
The mass exodus of executive management should give you some clue as to how Cloutier operates.
I can't believe Hail doesn't even mention the promotion of Cloutiers uneducated son to a senior management position in her suit.
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written by Bankpast , May 10, 2011 - 07:42 pm
Banks are notorious for taking advantage of women. I hope we score a big one on this. Thank you Karen for your courage for all of us!
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written by Georgia Girl , May 10, 2011 - 07:46 pm
Karen, you are my all time HERO!! I am so very proud of you, girl, I will be thinking, praying & cheering you on! It's high time someone with 'Executive Guts' stops this 'Boy Network' in the financial industry, especially in Louisiana!!
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written by dixie , May 10, 2011 - 08:15 pm
Wow, finally the good ole boy banking industry is in the limelight. Someone needs to check out the small privately owned banks surrounding acadiana to understand how discrimination is deeply rooted in the banking industry. Ms. Hail, I don't know you, but for our future daughters and granddaughters, thank you.
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written by The Original Northsidian , May 11, 2011 - 12:03 am
companyoutsiderthankgod: you hit the nail on the head. Nepotism is ALIVE AND WELL at MidSouth!! Qualification: be a member of the LSC (lucky sperm club)
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written by canjun transplant , May 11, 2011 - 03:46 am
I know Rusty Cloutier and Karen Hail. Karen is an outstanding banker. Rusty (like his name) is a rusted nail; times have changed, but that rust bucket has not. For all his pronouncements, his bank is one of the worst.
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written by NORTHSIDIAN SHOTGUN , May 11, 2011 - 03:49 am
Clouthier has suddenkly lost his gift of gab
He now is found sidling like a crab
Askant, as not his normal mode
His underlying tactics have been unfold
This ditty now sung of a cad so bold
For a golden nugget his soul he sold
But, in the end, righteous always wins
The shark can't swim, without his balls and fins
Unknown Author
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written by NORTHSIDIAN SHOTGUN , May 11, 2011 - 03:51 am
Ms. Hail "DO NOT HIRE A LOCAL ATTORNEY !
Bust their Little teeny balls.
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written by swampthang , May 11, 2011 - 10:46 pm
Ms. Hail certainly has every right to expect better treatment for all her years of dedicated service to the banking industry. It's a shame she didn't get it. The bad-old-boy network should shudder that "what goes around always comes around."
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written by NORTHSIDIAN SHOTGUN , May 12, 2011 - 01:41 am
Tie em to the stake and burn em, flog em, and when he begins drooling, and ohing and ahing, cut him loose he'll beg for more, punish him Karen.
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written by BoFred , May 12, 2011 - 09:29 am
This legal action should put all banks and financial institutions on notice that discrimination is a dangerous proposition. As much as women have been the backbone of the banking industry, I thought the neanderthals has evolved. As if the financial industry didn't already have such a bad reputation... This woman is entitled to a very large financial settlement. I'm all for "make the bast...s pay". I have girls who want careers & if the threat of a lawsuit is what it takes to make sure they get what they deserve, then so be it.
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written by Rush to Judgment , May 13, 2011 - 07:17 pm
Geez. Seems like everyone has already assumed Midsouth's guilty. I sure as heck hope the jury withholds judgment until the case is actually heard. Come on folks... there's another side of this story that we won't hear because Midsouth would violate privacy laws by revealing its reasons for letting Ms. Hale go.
Perhaps, just perhaps, there were legitimate reasons for her dismissal. Let's remember the basic American principle of innocent until proven guilty.
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