Texans CU Hit With Another Lawsuit by Former Exec
A little over a year after Texans Credit Union settled a contentious wrongful termination case with the former president of its insurance CUSO, the cooperative has been hit with yet another suit with strikingly similar details.
Gary Kirkindoll, the former CEO of Texans Insurance Group, is suing the $1.6 billion Texans CU to collect $1.89 million through a deferred compensation plan. According to Kirkindoll’s lawsuit filed June 30 in the 191st State District Court in Dallas, he has not received funds from the plan since leaving Texans CU on May 23, according to a July 6 Dallas Business Journal article.
In addition to an alleged breach of contract, Kirkindoll is suing for negligent misrepresentation, fraudulent misrepresentation, breach of fiduciary duty and fraudulent inducement, the publication reported.
Kirkindoll had been the CEO of Texans Insurance Group from January 2007 to May 2011, according to his LinkedIn profile. During his tenure at Texans CU, he has served in several capacities, including president of Texans Financial.
Kirkindoll could not be reached for comment.
Texans Insurance Group was previously involved in a separate wrongful termination dispute involving its former president, Kevin Curley. In June 2010, Texans CU, without providing any details of the amount, said it had settled a three-year long dispute with Curley.
Ironically, Curley named Kirkindoll in his suit, claiming he was one of the key persons involved in his termination from the insurance CUSO. At an arbitration hearing, Kirkindoll said Curley was fired for insubordination among other reasons, according to the testimony provided by Curley.
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.
In March 2010, the U.S. Bankruptcy Court for the Northern District of Texas said Curley had a claim of $21 million, which included $347,699 for back pay, benefits and prejudgment interest, $441,000 for attorneys’ fees and employment arbitration and $156,909 for post-arbitration fees.
At the time of the settlement, Texans CU said that “the matters in dispute between the parties have been confidentially settled.”
Kirkindoll’s latest filing is one of several suits levied by former executives against Texans CU. Three former executives with the previously named Texans Commercial Capital filed a case in 2006 for unpaid compensation packages and defamation among other alleged claims.
A jury would later rule that each were entitled to receive $1 million in damages. Meanwhile, Kirkindoll’s case comes as Texans CU continues to operate in NCUA conservatorship, a status it has been in since April 15.