Messy Divorce, Lawsuit Cause Stanford Dean’s Resignation

A messy divorce and an accompanying lawsuit have forced the dean of Stanford University’s Graduate School of Business to step down from his post. Garth Saloner announced that he would resign from his leadership position at the end of the Spring 2016 semester. He also stated that he would continue as a teacher and researcher at the prestigious California institution, despite the press he and the school have received due to his relationship with a fellow professor during her messy divorce

Details of the Messy Divorce

The controversy began with a messy divorce between former Stanford faculty member James Phills and current professor Deborah Gruenfeld. Both of these professors had worked under Dean Saloner at one time. During the messy divorce proceedings, and while the couple was separated, Professor Gruenfeld began a relationship with Dean Saloner. When the relationship began, Dean Saloner informed university officials and allowed other administrators to attend to matters related to Professor Phills’ employment.

Professor Files Lawsuit Regarding Messy Divorce

As a result of the Gruenfeld/Saloner relationship during the messy divorce, Professor Phills filed a lawsuit against Dean Saloner and the university. The lawsuit claimed that Dean Saloner did not recuse himself from decisions regarding the professor’s employment. The Phills lawsuit claims that Dean Saloner harassed him while he was on leave at Apple Computers’ nearby campus. The suit also alleges that Dean Saloner had him dismissed from the Stanford faculty due to the messy divorce and his growing relationship with Professor Gruenfeld.

Messy Divorce Accusations End Prestigious Career

Since taking over the leadership role in 2009, Dean Saloner raised the prestige level of Stanford’s Graduate School of Business to unprecedented heights. The school consistently ranked higher than rivals Harvard and Wharton, winning over top students who had earned admission to the Ivy League institutions. Dean Saloner also pioneered many programs that brought business knowledge and entrepreneurship skills to underprivileged countries. The school had also received more than $500 million in private donations in those six years.

Messy Divorce Leads to Dispute Over Employment, Home Loans

The Phills lawsuit claims that Dean Saloner terminated his employment with the university as a direct result of the messy divorce and the subsequent Gruenfeld/Saloner relationship. He also alleges that Dean Saloner “was making decisions about Phills’ employment and home loans” during the messy divorce. He claims that Dean Saloner and Stanford officials “acted maliciously, fraudulently, despicably, and oppressively.” The suit seeks general damages related to his lost employment, as well as punitive damages and attorneys’ fees.

Sources: Stanford University,
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