Without providing any details, the $1.6 billion Texans Credit Union said it has settled a three-year long dispute involving Kevin Curley, the former president of Texans Insurance Group.
Curley's case goes back to January 2007 when Texans CU bought the Curley Insurance Group LLC and six other companies from him for $19 million. Curley was also entitled to a $21 million contingent right to an earn-out paid by Texans Insurance. He later filed a wrongful termination suit after he alleged he was fired without cause.
On March 2, the U.S. Bankruptcy Court for the Northern District of Texas said Curley had a claim of $21 million, which includes $347,699 for back pay, benefits and prejudgment interest, $441,000 for attorneys' fees and employment arbitration and $156,909 for post-arbitration fees.
Texans CU had said the $21 million was an estimation of the value of the unsecured claim involving Curley as the insurance CUSO underwent restructuring after filing for Chapter 11 bankruptcy in September 2009. Creditors were to be paid first with Curley listed among unsecured creditors to be paid next. In March, Texans CU said Texans Insurance had filed a notice of appeal of the $21 million order.
However, it appears the dispute may have been resolved. Texans CU Spokesman Shalissa Clary told Credit Union Times today that "the matters in dispute between the parties have been confidentially settled." She did not provide a resolution date. Neither Curley nor Alan Busch, his attorney, could be reached to confirm if a settlement had been reached.