A lawsuit alleging racial and national-origin discrimination and retaliation has officially been dismissed against the employment-law firm
Spiggle Law Firm P.C. in suburban Washington, D.C. Former attorney Francisco Mundaca filed the case in June 2025, but on November 18/19, 2025, the U.S. District Court for the District of Maryland entered an order dismissing the suit with prejudice.
Background of the Case
Mundaca’s complaint originally alleged that the firm engaged in unlawful discrimination and retaliation in violation of federal and Maryland state law. Among his claims:
- Race discrimination and retaliation under Section 1981 of the U.S. Code (which prohibits racial discrimination in the making of contracts).
- National-origin discrimination and breach of contract under Maryland law.
- The underlying factual allegation (as summarized in the complaint) is that after Mundaca raised concerns about unequal pay and disparate treatment based on race and national origin, the firm terminated his employment in retaliation for those complaints.
Dismissal and What “With Prejudice” Means
On Tuesday of this week, Judge George L. Russell III entered the dismissal, following Mundaca’s filing of a notice of voluntary dismissal. Because the dismissal was entered with prejudice, the claims cannot be re-filed. It’s important to emphasize: a voluntary dismissal doesn’t equate to a court finding in favor of the defendant or a judicial determination of whether the allegations are true or false it simply ends the litigation.
No additional public explanation was given for Mundaca’s decision to withdraw the suit. Whether settlement discussions, cost-benefit analysis, evidentiary issues or other strategic factors drove the dismissal is not publicly detailed.
Context & Significance
The
Spiggle Law Firm focuses on representing employees in discrimination and retaliation cases, among other workplace-law matters. The fact that one of its former attorneys filed a suit raising precisely the type of claims the firm ordinarily pursues adds a layer of interest.
The case underscores several broader lessons for employers, law-firms, and practising attorneys:
- Internal Consistency Matters. Even firms specialising in employment law are not immune to claims of discriminatory treatment from their own ranks. This highlights the importance of consistent internal practices that reflect the standards the firm applies externally.
- Retaliation Claims Are High-Risk. Allegations that raising concerns about discrimination led to termination or adverse treatment raise retaliation risk, in addition to the underlying discrimination claim.
- Voluntary Dismissals Provide Closure, but Not Clarity. Because the case was dismissed with prejudice without a ruling on the merits, neither party achieved a public adjudication of the underlying claims. This leaves open questions for internal governance, culture and risk-management.
- Documenting Decision-Making is Critical. When an employee raises concerns about pay, treatment or discrimination, the subsequent employer/firm response will be scrutinized making well-documented, uniform processes all the more important.
Practical Takeaways for Employers & Law Firms
For employers and
law-firms of all types, the following steps are prudent:
- Review Compensation and Promotion Practices. Ensure pay and advancement processes are transparent, objective and free of unlawful bias.
- Respond Promptly to Internal Complaints. When an employee or attorney raises concerns about unequal treatment, retaliation risk rises. Thorough investigations and strong documentation reduce exposure.
- Train Supervisors and HR/firm-management on Retaliation Doctrine. Many employment laws protect not just against discrimination but against taking adverse actions in response to protected-class complaints or internal whistleblowing.
- Audit Your Own Internal Workplace Culture. A firm whose external brand emphasises employee-rights work still must ensure that its own internal culture aligns with its public practice.
- When Litigation Arises: Consider Strategy Early. Withdrawal with prejudice may be the right strategic choice but it also leaves unanswered questions for the organization’s internal governance and public perception.
Guidance for Attorneys & Employees Considering Claims
If you are an attorney or employee contemplating a discrimination or retaliation claim:
- Seek Experienced Counsel Early. These claims involve complex federal and state statutes (such as § 1981), procedural deadlines and nuanced burdens of proof.
- Preserve Evidence. Keep records of communications, performance evaluations, complaints and any adverse employment decisions that followed protected-class or internal-complaint activity.
- Understand the Endpoint. A voluntary dismissal with prejudice ends your ability to litigate the claims — so weigh whether settlement, withdrawal or full litigation is in your best interests.
- Recognise the Impact of Internal Firm Culture. The fact that the claimant here was an attorney at a firm specialising in discrimination matters may influence how such claims are viewed within the legal industry.
Why That Matters for You
Whether you are a managing partner, HR director, associate, or individual contributor:
- For firms and businesses: this case reinforces the importance of walking the talk — internal practices matter just as much as external ones.
- For attorneys and employees: the window to act is finite; understanding your rights and obligations early can be decisive.
- For legal-industry observers: seeing a discrimination claim against a firm whose practice is dedicated to those very issues drives home that risk is ever-present, even for defenders of employee-rights.
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Law Firm Cleared as Former Attorney Drops Bias Suit first appeared on
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