CIBC faces lawsuit in Britain by ex-employee

Canadian Imperial Bank of Commerce is being sued in Britain by a former employee who says the bank favoured those who had connections to Canada when deciding who to keep and who to let go. The unusual claim hit the spotlight yesterday after being highlighted in a Financial Times article. Achim Beck, whose nationality is German, took a job in London as head of marketing for CIBC's commodity structured products division at the beginning of 2007. The bank has since closed down its structured credit derivatives business in London, and Mr. Beck lost his job in May, 2008. He took legal action under the Race Relations Act, claiming he was discriminated against on the basis of his nationality. As his claim was proceeding, Mr. Beck became aware of an e-mail and other documents - unearthed in a different employee's grievance - that he claimed demonstrated that CIBC favoured Canadian employees, and that it was more disposed to find them another position at the company. Earlier this month, a judge at the Employment Appeal Tribunal ruled that CIBC should turn over the so-called "smoking gun" documents. Yesterday, the bank said it is not its practice to comment in detail on matters that are before the courts. "An appeal of this decision is scheduled in the U.K. Appeal Court in June. We believe the underlying claim is without merit and we intend to defend the matter vigorously," a spokesman for the bank said in an e-mailed statement.