Bankruptcy Court Rules Former Texans CUSO Exec Owed $21 Million
After nearly three years of legal wrangling, former Texans Insurance Group President Kevin Curley may be able to recoup $21 million in back pay and benefits in a wrongful termination case.
The March 2 U.S. Bankruptcy Court for the Northern District of Texas ruling confirmed what Curley told Credit Union Times in August 2009 when he said a trial was set for that September to determine whether he is entitled to compensation. The court said Curley shall have a claim of $21 million which includes $347,699 for back pay, benefits and pre-judgment interest, $441,000 for attorneys' fees and employment arbitration and $156,909 for post-arbitration fees.
However, Texans Credit Union disputes how the $21 million is defined. In a March 4 statement to Credit Union Times, the credit union wrote "This is an unsecured claim and is not a judgment. It is an estimation of Mr. Curley's claims for purposes of allowance and voting on Texans Insurance Group's plan of reorganization. Other secured creditors, including Credit Union Liquidity Services LLC are also part of the Chapter 11 process that continues for TIG."
Texans said a hearing was held in January in bankruptcy court for the purpose of estimating Curley's claims against Texans Insurance Group. On March 2, Judge Houser issued her order on the estimation of claims and determined that Curley's claim should include lost profits, attorney's fees and back pay. She estimated the amount of the claim to be approximately $21 million.
In February, a federal bankruptcy court ruled that a realty firm owed Credit Union Liquidity Services more than $40 million in a suit involving a defaulted Illinois property loan.