Ms. Pao (kpcb.com)

When VC firm Kleiner Perkins filed its response to partner Ellen Pao's gender discrimination suit (nearly a month ago now), included in the flurry of legal documents were requests to require Ms. Pao to submit to binding arbitration.

Now the Mercury News reports that the presiding judge has spoken--tentatively, at least--and she'll be required to do no such thing. Kleiner argued that partners signed arbitration agreements with each of the firm's new funds; Ms. Pao's lawyer rejoined that only an umbrella agreement would do, and his logic apparently carried the day.

Of course, we should also note that lawyers for both sides are still due at a hearing today, where Kleiner has a chance to try talking the judge into reversing his ruling. Maybe somebody's got an ace up his sleeve?

It wasn't all bad news for Kleiner Perkins, however, as the judge did grant the firm's request to keep partner compensation information--which is, of course, crucial to Ms. Pao's allegations--quiet. And here we were getting so excited about poring over those spreadsheets and figuring out who had the most pocket money.

Anyone hoping for courtroom dramatics may still be disappointed, though, as this makes an out-of-court settlement a distinct possibility. And if the VC firm has any inclination to keep things quiet, that might be its last option.

Ms. Tilenius (Photo: LinkedIn)

The latest addition to the Kleiner Perkins team, according to AllThingsD: Google's Stephanie Tilenius, who'll be a new executive-in-residence. And we can't help but notice that she's the second splashy female hire since Ellen Pao filed her molotov cocktail of a discrimination suit. Last month, the firm poached Square's head of product, Megan Quinn.

We're obviously in the tank for XX in tech, and it's especially nice to see more women in venture capital, considering the dismal numbers we found in our firm-by-firm breakdown. AllThingsD is also careful to point out that "the firm has been talking about bringing her in for months." Ms. Tilenius comes with bona fides, too, leaving behind a gig where she spearheaded the creation of the Google Wallet. She told the site, “I wanted the ability to help scale a few start-ups, instead of building products in a large company.”

But we do hope that no one over at Sand Hill Road HQ thinks boosting their (already comparatively high) number of women on staff absolves the firm of dealing with that unpleasant little lawsuit. The brass at Kleiner Perkins would be wise to remember that "I've got lots of friends who are [X]" is perhaps the least-solid strategy for fending off claims of discrimination. Nor does it even entitle them to any cookies, considering that the firm's population of female partners still stands below 30 percent. You know what they say about the king selection process in the land of the blind.

Ms. Tilenius, for her part, didn't touch the lawsuit with so much as a ten-foot pole, apparently declining to comment on the matter.

Ms. Pao (kpcb.com)

Kleiner Perkins Caufield & Byers has filed a response to partner Ellen Pao's allegations of gender discrimination and boy howdy, they did not hold back. We've obtained a copy, and here's the meat and potatoes:

"KPCB generally denies each and every material allegation of the Complaint and further denies that Plaintiff has been damaged in the manner alleged, or in any manner or amount."

The firm also "vigorously denies" that it discriminated or retaliated against Ms. Pao, as well as claiming that Ms. Pao never reported anything prior to 2011, and they also deny that she complained in 2007.

The response goes into great detail, refuting many of Ms. Pao's accusations point-by-point:

• When she did complain in late 2011/early 2012, Ms. Pao was already represented by a lawyer, the filing claims.
• KP retained an outside investigator, who interviewed 17 partners, including every then-current KPCB female partner. The independent investigator concluded that her discrimination and retaliation complaints were without merit.
• KPCB denies that Raymond Lane pressured Ms. Pao to marry Mr. Nazre.
• She told Mr. Lane that she was putting the relationship with Mr. Nazre behind her, says the filing.
• That was in late 2011/early 2012, and that was the last any of the senior partners claim to have heard of the incident.
• In regards to the racy book she originally claimed to have received from Mr. Komisar, the response claims--well, it's worth quoting in full: "That book [which the response identifies as The Book of Longing] was reviewed by the New York Times as 'profound'  and having 'exceptional range.'" The document also claims it was purchased as a gift for Ms. Pao by Mr. Komisar's wife, and that Ms. Pao "never returned or objected to the gift in the many years after receiving it.

Regarding her performance reviews:

• In her 2009 self evaluation, she singled out the help she'd received from Komisar and other partners, saying that they are "supportive mentors and advisors." She also "specifically requested Komisar review her performance after the incidents she alleges as harassment," according to the filing.
• Initially, according to the filing, her reviews were encouraging: "Plaintiff's 2009 review encouraged Plaintiff to speak up more effectively and influentially, step out more in a leading role, present more new investment ideas, and take more risks by incubating a high potential venture and owning it--hardly retaliatory input." But it also "encouraged her to focus on her interpersonal and 'EQ' skills to more effectively direct and motivate teams." Then, in 2010, her review "advised Plaintiff that she was too 'territorial', that others did not 'trust her motivations'  and that she had a 'sense of  entitlement rather than earning her position via contribution, expertise, and making her fellow partners successful.'"

Regarding the party Ms. Pao alleges she was not invited to, lest she kill the buzz:

• KPCB denies that Ms. Pao was ever excluded from any company activities based on her gender.
• The dinner Ms. Pao alleges she was not invited to because she was a woman did in fact have female partners in attendance.
• KPCB also denies that it "excluded women from two dinners in San Francisco in 2011 or that any KPCB event was marred or motivated by gender animus or discrimination."

The also firm asserts that Ms. Pao was contractually obligated to seek third-party arbitration, and that by lodging a public suit, she has breached her contract. KPCB also claims that Ms. Pao was failed to competently perform the duties of her job.

KPCB is requesting "the Complaint be dismissed with prejudice and that Plaintiff take nothing," "That judgment be entered in favor of KPCB on all claims; That KPCB be awarded its attorneys' fees and costs of suit."

Besides the answer to Ms. Pao's complaint, documents filed include a motion to compel arbitration and a motion "to seal records lodged with the court filed by the defendant Kleiner Perkins." There's a hearing set for both issues on July 10.

Today was the deadline for KPCB to file a response, but they could have responded with a request for an extension. Instead, they've chosen to answer Ms. Pao's allegations. Until now, the storied VC firm had been largely silent, except for a strongly worded (though largely detail-free) statement from John Doerr, which called Ms. Pao's allegations false. Now we have a lot more details.

As of last week, Ms. Pao was still working at Kleiner Perkins.

Here's the full document:

Ms. Quinn. (Twitter)

XY breakdown be damned, looks like one more woman is headed into the VC business, starting next month. Dan Primack reports that Megan Quinn is leaving her gig as head of products at Square for Kleiner Perkins Caufield & Byers, where she'll be focusing on consumer Internet. Yes, she will be a partner.

Said Ms. Quinn in a statement:

 "Joining Kleiner Perkins is an incredible opportunity at such an exciting time for the firm and technology industry. I look forward to working with the talented team of investment professionals and entrepreneurs to identify and nurture the next generation of consumer Internet companies."

Before her turn at Square, Ms. Quinn spent seven years at Google.

Just yesterday, John Doerr released a statement denying partner Ellen Pao's accusations of gender discrimination. He wrote: "We have long believed the best thinking comes from a diverse set of minds and have highly valued diversity in our partnership and ventures. " And yes, Kleiner Perkins does rank number 5 in our survey of women in VC. But it's also true the firm will be operating under something of a gender-related gloom cloud for the next few weeks at the very least.