A shocking legal battle has erupted, with former top executives of Birmingham's regional water utility taking the board and its new CEO to court, demanding millions in damages. This comes as a double whammy for the utility, which is already facing a federal lawsuit.
The Fight for Fair Compensation
Three former senior leaders, General Manager Mac Underwood and his assistants, Barry Williams and Michael Parker, have filed lawsuits alleging breach of contract, wrongful termination, conspiracy, and fraudulent representation. They claim that the utility's actions are a clear violation of their employment agreements.
Underwood, with a yearly salary of $446,118, had a five-year contract approved just months before the board's replacement. His payout alone could exceed $2.2 million, excluding benefits. The assistant managers, earning an average of $334,000 each, also have agreements guaranteeing a year's salary if terminated.
But here's where it gets controversial: the utility placed these executives on administrative leave, effectively terminating them without providing the compensation outlined in their contracts. Attorney John Q. Somerville argues, "It's just like a football coach getting fired; they pay out the contract and severance."
A Wave of Litigation
This legal action is part of a broader wave targeting Central Alabama Water's leadership. On the same day, a federal case was filed, challenging the state's decision to transform the Birmingham Water Works Board into a regional authority, giving suburban board members a supermajority over Birmingham.
Somerville doesn't hold back, criticizing the board's actions and the secrecy surrounding the CEO selection process. He claims the board had been working for months to hire Jeffrey Thompson as CEO, unfairly targeting senior staff members hired to reform the utility.
"Mac Underwood has served Jefferson County and Central Alabama for years. His reputation is unmatched, and the board's treatment of him and his team is unacceptable," Somerville said.
And this is the part most people miss: the previous board, just before its dissolution, approved the contracts of Underwood and his assistants. This was done in response to customer service and billing complaints, and to bring much-needed reforms to the utility.
"The utility's treatment of its employees is shameful. I was taught that a rising tide lifts all boats, and it's sickening to see how these dedicated individuals, who have served the ratepayers of Central Alabama, are being treated," Somerville added.
The legal battles are far from over, and the future of Birmingham's regional water utility hangs in the balance. What do you think about this complex situation? Is this a case of justified legal action, or is there more to the story? Share your thoughts in the comments below!
