JLL agent at centre of scandal admitted to ‘dangerous and unacceptable’ conduct
Court documents reveal the shocking confession that sparked JLL’s leadership meltdown, with a senior agent admitting his behaviour was ‘morally unacceptable as a man’.
The JLL real estate agent whose actions kicked off the scandal that engulfed the firm’s local leadership admitted to the company that he had used alcohol to cope with stress and had engaged in dangerous and unacceptable conduct, according to court documents.
The real estate agency’s defence of its sacking of former chief executive Dan Kernaghan in late August this year said that senior agent James Jorgensen, who headed the firm’s logistics and industrial arm in Victoria, had made the concession as he tried to keep his job.
While Mr Jorgensen was also ultimately fired after JLL’s global executives intervened to reverse Mr Kernaghan’s decision to retain him in a lesser role, he had been fighting for his professional life in the wake of an investigation into allegations of sexual harassment.
Mr Jorgensen had been suspended from his job in late June while the firm undertook the investigation into his conduct following a complaint from a female colleague. The complaints of sexual harassment were partly substantiated.
JLL’s former human resources head Julie Skinner had recommended his sacking to former CEO Mr Kernaghan, but he instead imposed sanctions on Mr Jorgensen, including losing his lucrative leadership status. External law firm K&L Gates also provided advice.
JLL said that Mr Jorgensen’s response to a notice from the firm to show cause why he should not be terminated had stated that “he had used alcohol as a dysfunctional coping mechanism to deal with stress” and that “his conduct was a huge failure on his behalf as a leader”.
He also said that the “pattern of behaviour he engaged in” with a female employee “was dangerous and completely unacceptable as a leader and morally as a man”. Mr Kernaghan’s resolve to keep him on backfired when he was overruled after another colleague tipped off global executives of the decision, subsequently reversed by the firm’s top leaders. The company told The Australian afterwards that it had taken action against Mr Kernaghan over his “poor judgement” in the “initial handling” of the Jorgensen matter.
JLL then commissioned a still secret workplace review by law firm Clyde & Co, which made several recommendations on reforming the company.
The agency’s moves to regain industry confidence have been partly hampered by legal actions by Mr Kernaghan and Ms Skinner. His legal action is also against JLL global executives, including head of HR Laura Adams, CEO of capital markets Richard Bloxam, and global chief legal officer and corporate secretary Alan Tse.
Despite the tumultuous events, the company is still involved in negotiating large-scale commercial property transactions. JLL in October tapped long-time capital markets executive Luke Billiau as interim chief executive for Australia and New Zealand as it looked to stabilise its operations.
The firm’s defence filing came as Mr Kernaghan continues his suit against the firm for around $14m in lost earnings.
His action disclosed that Mr Jorgensen, in responding to the show cause letter sent by the company, acknowledged some inappropriate behaviour and expressed remorse, and asserted, by inference, that he may sue the female complainant because he disputed her version of events.
Mr Kernaghan is claiming that his sacking breached Australian employment law and deprived him of millions of dollars in compensation. He was on about $2.8m per year made up of salary, bonuses and long-term incentives. He had planned on being at the firm for a decade and is claiming around five years of lost earnings.
JLL has declined to comment.
Originally published as JLL agent at centre of scandal admitted to ‘dangerous and unacceptable’ conduct
