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26
Jul
2009

CEO/Credit Union Manager Loses Wrongful Termination & Age Discrimination Suit

Former Credit Union CEO/Manager loses suit for wrongful termination of employment, breach of contract and for age discrimination.  A jury did, however, award the plaintiff for accumulated “compensatory time.”
 
In this case, Sue Adams was employed at the credit union as the manager and CEO. Adams began having heart problems and underwent balloon angioplasty surgery. Shortly thereafter, Adams had chest pains and was required to undergo quadruple bypass surgery. After the bypass surgery, the credit union terminated her employment.
Adams brought this action against the credit union based upon a breach of contract claim and for age discrimination. Adams’ claim for age discrimination was found to be without merit; Adams did not meet the burden of proof by establishing that, at the time of discharge, she was qualified for the position, that she was replaced by someone outside the protected class (under 40 years of age), or by someone younger, or otherwise show that she was discharged because of age.

VFCU argued that Adams was an employee “at will” and that she could be terminated at any time for any or no reason at all. Adams argued that even if she was an employee at will, she was entitled to compensation for more than 600 hours of “compensatory time” that accumulated prior to her discharge.

The credit union had a policy to pay the management for “compensatory time” (similar to overtime), but the Board of Directors retroactively eliminated that benefit while Adams was having her operations.

The jury found that Adams did not have a contract for continued employment, but should receive damages for her accumulated “compensatory time.”

On appeal, the jury award against the credit union was affirmed.

Sue Adams v. Valley Federal Credit Union, Texas Court of Appeals, No. 13-91-350-CV.

Author: Charles R. Harroun, Attorney at Law

 

 



This entry was posted on Sunday, July 26th, 2009 at 4:34 am and is filed under Employees, National. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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