A racial controversy that for months has enveloped Papa John's and his founder has raised allegations of harassment Monday against several members of his management team.

John Schnatter acknowledged in a Delaware courtroom that he had been party to confidentiality agreements with at least two women – one of whom had sued society two decades ago, alleging that the chain's founder had sexually harass her.

Although few specific details emerge from the evidence, Schnatter stated that the agreements existed.

He made these comments while being questioned by a lawyer from the opposing company who carefully examined his request for internal documents to the board of directors.

Schnatter sued the Delaware Chancery Court over the summer, forcing Papa John's to release documents that might explain why he was forced to resign from his position at the company's head office.

He wants to see internal emails and meeting reports about his banishment.

It's a battle that can ultimately decide who controls the Louisville business. Schnatter owns 30% of the company and remains a member of the board of directors.

This is the last contentious case in Delaware involving the expulsion of a longtime officer from a senior position. Papa John's, like two-thirds of Fortune 500 companies, is incorporated in Delaware.

After the proceedings Monday afternoon, Schnatter's lawyer, Garland Kelley, defended his client in statements outside the courtroom.

He stated that the company's lawyers had entered into confidentiality agreements to divert attention from "well-documented" allegations of sexual misconduct by other board members and senior management.

"In July or August, various employees of the company came to see John and he reported, as a member of the board of directors, this type of misconduct, it was quite serious," he declared.

Kelley claimed that one of Schnatter's confidential agreements concerned a woman who had embezzled funds. He did not specify why Schnatter would sign such an agreement with a person who allegedly committed this kind of act.

"John was the victim," said Kelley. "Report that sexual misconduct on behalf of John is completely inaccurate."

The other deal involved a cell phone service saleswoman who sued Schnatter and the company in 1999, claiming that he had sexually harassed her for months after their meeting.

She said that he had sent her some roses, had stopped several times at her house, had thrown stones at her window and had kissed her and touched her breasts while she was in bed. they were in his pool and hot tub.

Schnatter filed a counterclaim alleging that the 29-year-old woman, Lesli Workman, was suing him by calling him and phoning him dozens of times, asking for a loan and paying him credit card bills. .

The prosecution was dismissed, and at that time neither party said there was a settlement.

Schnatter's testimony on Monday seems to throw light on the question.

When asked if he had a confidentiality agreement with Workman, Schnatter replied, "I do it."

Earlier in the day, during his direct interrogation by his lawyer, Schnatter spoke of his most recent controversy. He said he had never criticized the protesters against the NFL players in an investor call in 2017, and had never made any racist remarks against anyone this past spring.

"But the press quickly made me a racist," Schnatter said.

During cross-examination, the company's lawyers broadcast a video clip of a 4-second deposition, in which Schnatter stated that he had used the keyword "in reference to Kanye West" .

A spokesman for Schnatter said in a statement to The News Journal that his client regretted having said that word, but that he "never used the n-word in" reference " to Kanye West. "

He added that the testimony was about a PR and media consultant's proposal to use "Kanye West as spokesperson for Papa John despite Mr. West's use of the word" N "in his words. "

"Mr Schnatter insisted that it was totally wrong and inappropriate for anyone to use that word," spokesman Terry Fahn said. "What happened here is the opposite of how it was originally described." The truth here, and John's constant point, was that he quoted the word and did not use the word. "

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Monday's debate follows a July controversy that shook the company's leadership and finances. According to a Forbes report, Schnatter reportedly resorted to racial speech last spring during a conference call with a consultant.

In this report, he stated that KFC had never faced a rejection reaction, even though "Colonel Sanders called Blacks". [the n word]. "

"I used the n-word … because I was trying to make it clear that I was not going to do that, that's not what we're doing," he said. said Schnatter Monday. "My comments were anti-racist."

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The Forbes report caused Schnatter to step down as president, he said. His leasing contract to keep an office at the company's headquarters in Louisville was also canceled.

Schnatter resigned, he said, as the board of directors would have voted otherwise.

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He claimed that his claims had been rejected by Papa John's lawyers and by the Trust Corporation, Papa John's registered agent in Delaware.

Papa John's denies his rights "virtually unhindered", according to the lawsuit, as a member of the board of directors charged with inspecting the books and records of the company.

"Mr. Schnatter sought to inspect documents because of the unexplained and cumbersome manner in which society treated him since the publication of a story that wrongly accused him of using a racial insult," says the trial.

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He also asserted in the lawsuit that Forbes' story was inaccurate and stated that the other members of the board of directors had excluded him from the company at least in November 2017 when he had criticized the NFL for its behavior.

He made these remarks amidst an intense national conversation about the race, following the demonstrations of white nationalists in Virginia.

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Papa John's founder, John Schnatter, is interviewed by a media outlet as he enters the New Castle courthouse Monday morning to testify as part of a lawsuit to obtain essential documents. from the pizza chain that had ousted him. (Photo: Jennifer Corbett, The News Journal)

Papa John's lawyers also discussed the personal nature of the lawsuit on Monday, questioning whether Schnatter had filed a lawsuit to improve his reputation, rather than prove a breach of fiduciary duty by the board, as he claimed .

"You are looking for documents because the company has dumped you without ceremony," said the company's lawyer.

No, replied Schnatter.

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Contact Karl Baker at [email protected] or (302) 324-2329. Follow him on Twitter @ kbaker6.

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