Legal News for Credit Union Managers Since 1990

Archive for Employees


03
Apr
2026

Member Disability Insurance Coverage Denied

In this case, the credit union brought an action alleging the defendant borrowed $6,000 and failed to repay the same. The credit union also produced a promissory note signed by the defendant (Shaham). Defendant purchased disability insurance at the inception of this loan and thereafter became disabled. The insurance company did not honor his claim […]

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03
Apr
2026

Board Member Loses Suit Against Credit Union

In this case, John Heller was a member of the Board of Directors of CACL Federal Credit Union.    CUMIS Insurance Society informed CACL that the bond for Heller had been revoked.   Despite the loss of his bond and inability to find a replacement bond (as required by the NCUA), Heller ran for reelection […]

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02
Apr
2026

Member Loan Disability Insurance

In this case, Textron Lycoming Federal Credit Union brought an action alleging the defendant borrowed $6,000 and failed to repay the same. The credit union also produced a promissory Note signed by the borrower-defendant. Defendant purchased disability insurance at the inception of this loan and thereafter became disabled. The insurance company did not honor his […]

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02
Apr
2026

Age Discrimination Award: $165,000.00

Here, a jury verdict was entered in favor of Barbara Carle (Carle), a former manager of McChord Credit Union, for wrongful discharge based upon age discrimination. The jury awarded the former manager $100,000.00 for age discrimination, another $18,000.00 for negligent infliction of mental distress and more than $47,000.00 in attorney fees. Barbara Carle was a […]

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02
Jan
2026

$100,000.00 Award to Employee

Here, the court addressed the issue as to whether a job applicant was discriminated against due to the applicant’s obesity. In this case, the job applicant applied for a position with the employer and was rejected due to her obese weight.   The medical profession considers a person morbidly obese if the individual weighs either more […]

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06
Aug
2025

Employee Discrimination: Failure to Promote

Discrimination Suit awards five-years wages to employee for wrongful discrimination against employee. Here, an employee of  Peoples National Bank of Washington prevailed in a discrimination action against the bank for failure to promote the employee. The employee was a Cambodian born and highly educated individual. The employee had special training in speaking English, served in the U.S. […]

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22
Jul
2025

Constructive Discharge: Credit Union Violates Employee’s Rights

Minneapolis Telco Credit Union violated employee rights with “constructive discharge” in violation of Credit Union Employee’s Civil Rights.   In this case the appellate court affirmed a determination of the Commission of Civil Rights, finding that Minneapolis Telco Credit Union [Telco] violated its employee’s civil rights. Here, Deborah Witherspoon was employed at Telco when she learned that she had […]

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17
Apr
2025

Credit Union Board-Member Suit Dismissed

Court dismissed a suit brought in this action against a credit union for discharging its President and CEO. In this case, Nevada Federal Credit Union held a regularly scheduled meeting and voted 5-2 not to renew the employment contract of Robert Street, its then President and CEO. After obtaining legal advice, a second meeting was […]

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15
Apr
2025

Garnishment & Wage Assignment

An Illinois Court held wage assignment, unlike a garnishment on debtor’s wages, unconditionally vested creditor’s rights. In this case, the debtor sought a return of $546.93 that had been withheld from his wages pursuant to a voluntary wage assignment and paid to Mercury Finance Co. (“creditor”) prior to his filing a Chapter 13 bankruptcy. Here, debtor’s […]

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12
Mar
2025

College Graduate Age Discrimination Suit

In this case, the court addressed the issue as to whether a bank’s policy of refusing to hire college graduates violated the law prohibiting discrimination based on age. Here, Sol Stein was 58 years old and a college graduate. The bank had a policy not to hire college graduates for certain positions. Mr. Stein applied […]

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« Previous Entries
  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Member Disability Insurance Coverage Denied
    • Board Member Loses Suit Against Credit Union
    • Member Loan Disability Insurance
    • Age Discrimination Award: $165,000.00
    • Credit Union Taking Possession Must Evict Occupants
    • Bank Recovers from Depositor: Stop Payment
    • Cram-Down Plan Amendment Denied
    • Nondischargeable State-Court Judgment
    • Debtor Denied Right of Rescission By Court
    • Bankruptcy Charitable Contributions Disallowed
    • Chapter 13 Confirmation Denied

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