Question

I am an HR Manager and I had an employee come to me regarding another employee talking on the phone sexually. They are both in cubicals. I had to take this to the CEO since the department that the girl that was talking sexually is off bounds to me, apparently it seems the CEO does not want any conflict in that department. I wanted to send out an e-mail addressing that when on the phone since others can hear you, if you wish to say something that might offend others take it outside away from your desk. He has been sitting on this, I also wrote him an e-mail stating that I could not do my job to protect us from liability and that I did everyting to try and prevent a possible lawsuit. Since I am not able to do my job, do I have justification to quit and sue? I probably won't but just curious. Thak You