This week the Connecticut Supreme Court issued a decision in Trusz v. UBS Realty Investors which expanded employees’ free speech rights. Mr. Trusz worked for UBS as a managing director and the head of its valuation unit. In this role, Mr. Trusz managed UBS’s process for deciding the value of its real estate investment funds. In connection with his job, Mr. Trusz informed UBS that it had made errors in its valuation of certain properties that UBS held in some of its investment funds. He told UBS, among other things, that he thought UBS had an obligation to inform investors of the errors and to return excessive fees to investors that UBS had collected because of the errors. When UBS refused to take the steps Mr. Trusz said were necessary, Mr. Trusz told UBS that he thought it was violating legal and ethical obligations to investors. UBS subsequently fired Mr. Trusz and he sued claiming, among other things, that UBS fired him in retaliation for the concerns he raised about UBS’s handling of the valuation errors.
Mr. Trusz’s case required the Connecticut Supreme Court to decide whether it would follow the decision of the U.S. Supreme Court in Garcetti v. Ceballos (2006). In Garcetti, the Supreme Court held that an employer could legally retaliate against an employee who exercised her free speech rights if the employee engaged in free speech as part of her official job duties.
Garcetti only applies to public employees and employers, like public school teachers and police officers, because the First Amendment only restricts the activities of governments. However, in Connecticut, there is a law that prohibits both public and private employers from retaliating against an employee because he exercised his free speech rights under the U.S. or Connecticut Constitutions. This is why constitutional issues came into play in Mr. Trusz’s case even though it involved a private employer.
Maine Employment Lawyer Blog

