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| A former executive has won an $894,000 judgment against a Florida-based mortgage firm. The man alleged his former employer wrote to him that his salary would be cut by two-thirds, then later — in an effort to avoid severance liabilities — claimed it was all a mistake.Arguing that the company wanted him to leave on his own in order to avoid its responsibilities for severance pay and other damages under an employment agreement, Robert McBride filed a lawsuit in the United States District Court for the District of Wyoming against Market Street Mortgage. Siding with the former employee, a jury gave him $894,000.
A Market Street Mortgage spokeswoman said the Clearwater-based company does not agree with the court’s decision and will appeal the case. She also said the company regretted that the matter had gone to litigation. McBride was hired by Market Street’s predecessor, Major Mortgage, in 1996. He was put in charge of organizing and supervising a business which, he said, grew to 35 branches covering 10 states that handled about $800 billion in mortgage business a year. Major Mortgage later decided to sell the company to Market Street Mortgage. Market Street asked McBride and several others to stay on. McBride signed a three-year employment agreement in July 2005 that provided for a signing bonus, a base annual salary and additional incentives. But, according to the 10-page complaint, in an attempt to force McBride to resign, Market sent McBride a letter in February 2006 signed by the company’s executive vice president notifying McBride that his salary would be reduced from $230,000 to $85,000, effective the next month. The letter also changed the incentive plan outlined in the employment agreement. McBride also claimed that he discovered that a Market Street executive had asked another employee if he would be willing to step into McBride’s shoes if McBride left the company. McBride reportedly resigned several days later, explaining by fax and letter to the company that it had terminated the employment agreement. McBride said a clause in the agreement defined termination of his employment as including a reduction in his base annual salary. McBride said in court documents that Market Street then sent him a letter explaining that the earlier letter outlining the salary reduction had been sent by mistake. McBride filed the lawsuit after Market Street refused to pay the severance and liquidated damages he said he was owed under the employment agreement. Market Street claimed in suit papers that McBride had resigned without cause and, as a result, it was not required to pay him any further compensation. The company also asserted restrictions on McBride’s ability to work in the mortgage banking business under the agreement. Last month, a federal jury said McBride was entitled to $242,000 in damages for termination for cause and $652,000 in damages for breach of contract. |
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