The chairman of the board of directors for $1.1 billion CoastHills Credit Union, Lompoc, Calif., on Wednesday responded to a lawsuit by former CEO Jeff York, saying York is asserting “false allegations” in his wrongful termination suit.
As reported by Credit Union Journal earlier this week, York
The 102-page lawsuit includes 16 claims of misconduct against the credit union, including wrongful termination, retaliation, labor code violations, defamation, false light and breach of contract. According to York, the complaint “chronicles a year-long series of events and conduct against York by the credit union and its board of directors.”
On Wednesday, Bill Anders, chairman of the board for CoastHills CU, responded to a request for comment by Credit Union Journal by e-mailing a written statement:
“CoastHills Credit Union wishes to speak to its members and the community at large regarding the lawsuit filed by its former CEO Jeff York against the credit union, two employees, and eight of its current and former volunteer directors,” the statement begins. “The lawsuit claims that Mr. York was discriminated against, including because of his gender, and that he was wrongfully terminated. His claims single out a couple of the directors, and make offensive allegations against them in what appears to be an attempt to destroy their reputations in the community. His motives may be further revealed by the fact that his legal counsel recently sent out a press release reminding people that he filed this lawsuit more than a month ago, and repeating the false allegations he is asserting against the credit union and some of its directors.
“We wish that Mr. York had confined his claims to suing the credit union, but he is free to sue whomever he wanted for whatever reason he wanted,” Anders' statement continues. “Importantly, because Mr. York makes his allegations in a lawsuit does not mean those allegations are true. CoastHills disputes the claims of Mr. York and is vigorously defending the reputation of our members, staff and volunteers. In terminating Mr. York, as well as in all other personnel decisions, the credit union and its volunteer directors are acting in the best interests of its members and to preserve CoastHills Credit Union as a premier financial institution of which we can all be proud. The credit union is confident that the true facts will eventually come out and the credit union, its directors and its employees are fully and completely vindicated.”
York is represented by Irvine, Calif.-based law firm Kring & Chung, which put out a press release Monday. CoastHills Credit Union is represented by Jeff Dinkin, attorney with Stradling Yocca Carlson & Rauth in Santa Barbara, Calif.
As reported by Credit Union Journal on March 26, York previously alleged several top executives at CoastHills CU either were
“Additionally, Dave Upham, executive vice president, Rob Covarrubias, senior vice president, and Linda Van Dyke, administrative assistant, are no longer employed by the credit union and have all made similar complaints against CoastHills with the NCUA and DBO,” the law firm said Monday.
Conflict began during strategic planning session
According to York, in August 2017, during strategic planning sessions, one of CoastHills CU’s board members, Kate Griffith, introduced a proposal to the board that York’s annual bonus should be linked to a weight loss goal. In September 2017, York filed a harassment complaint after, he said, there were “repeated attempts by Ms. Griffith to make the illegal weight loss proposition part of his 2018 goals.”
“It is hard to believe that any intelligent business person could think that such a proposal would be appropriate,” York said to CU Journal in a March interview. “Can you imagine if I was a woman and she was a man?”
According to York, the board discussion of the weight loss clause was preceded by a “reprimand” from the board to Griffith following “disparaging comments she made about York at a public event in Lompoc.”
York said when he filed the harassment complaint, he expected support from other board members.
“Instead, several board members – specifically Kris Andrews, Chuck Scheithauer and Bill Anders, became irate when I consulted with my personal attorney,” York told CU Journal. “I do not know why they became angry, or why they called it ‘lawyering up.’ I do not know what is in the minds of the board members because I have not been able to talk to them since January. Their attorney put them in lockdown.”
In a statement released in March, York said: “The board created a hostile work environment and began a series of retaliatory actions against Mr. York. Part of the retaliation included an investigation of an alleged anonymous complaint sent to federal and state regulators. To date, Mr. York has never seen the alleged complaint, and does not know what it entails or who it involves. Mr. York was placed on paid administrative leave on February 6, after months of investigations, and his contract was terminated ‘without cause’ on March 16.”
York has noted during his 14 years as president and CEO, CoastHills grew from $350 million to $1.1 billion in assets, changed from a federal charter to a state charter, expanded its territory to include the five counties along California’s Central Coast, conducted a merger, expanded its branch network, launched a community foundation and business services program, and helped hundreds of members keep their homes during the recession.
