Lawsuit Alleges Sexual Harassment and Governance Failures at Appraisal Institute
A recently filed lawsuit against the Appraisal Institute, a leading organization in the appraisal industry, has brought to light serious allegations of sexual harassment and administrative malfeasance. The suit, initiated by Cindy Chance, the organization’s former CEO, claims that the Institute ignored multiple complaints regarding inappropriate behavior from Craig Steinley, a senior executive who previously served as president.
Background on the Allegations
According to the lawsuit, Chance asserts that she was subjected to sexual harassment by Steinley shortly after joining the organization. She alleges that her attempts to address these concerns with the board were dismissed. During a board meeting in May 2024, Chance claims to have raised the issue of sexual harassment without naming Steinley, who was present. Following the meeting, she alleges that Steinley groped her in a hallway, an incident that she describes as emblematic of the power dynamics at play.
“Sexual harassment is not about anything to do with sex,” Chance noted in a recent interview. “It’s about power and control, making people feel uncomfortable and undermining their authority.”
Reactions and Other Allegations
Chance’s lawsuit has garnered attention not only for its sexual harassment claims but also for related allegations of governance failures at the Institute. She contends that the organization has created a culture where such behaviors are normalized and that individuals who attempt to confront these issues risk retaliation.
In a statement, Anita Mazumdar Chambers, Chance’s attorney, emphasized the pervasive issue: “Sexual harassment and retaliation have become normalized at AI, and anyone who tries to address the issue is forced out.”
Financial Settlements and Additional Claims
The lawsuit comes at a time when the Wall Street Journal has reported the Appraisal Institute settling a separate harassment claim involving its former Chief Financial Officer, Beata Swacha, for $412,000. Swacha detailed experiences of unwanted touching and an alleged hostile work environment, further substantiating Chance’s claims about the organization’s culture.
Investigation and Governance Critiques
The Appraisal Institute has announced that it will investigate the allegations made in the lawsuit, although they declined to comment on Steinley’s current employment status. A spokesperson for the organization asserted its commitment to maintaining a safe environment and addressing any claims of harassment or discrimination.
Broader Implications of the Lawsuit
Chance’s lawsuit not only addresses the complaints against Steinley but also highlights other serious concerns regarding the Institute’s operational practices. These include accusations of inflating membership figures and allegations of nepotism in contract awards, suggesting a broader pattern of misconduct.
Throughout her tenure, Chance raised these issues with the board. However, she claims her warnings went unheeded, contributing to an overarching atmosphere of mismanagement. This culminated in her removal from her position, which she contends was orchestrated by Steinley alongside a board evaluation of her performance.
Conclusion
The Appraisal Institute faces significant scrutiny following these allegations, and the pending investigation will be critical to determining the veracity of Chance’s claims. The outcomes may have lasting implications for the organization’s governance and its commitment to creating a respectful workplace.