RIDLEY PARK, Penn. — A pair of former Boeing Helicopters Credit Union executives, including the recently dismissed CEO, are suing the credit union alleging breach of contract.
Former COO Walter Blewitt and former CEO John Galante filed the lawsuits nearly one year apart, alleging their dismissals violated the terms of their employment. According to documents obtained from the Delaware County court, the men contend the CU failed to provide written notice of "willful neglect" of their duties, nor give them an opportunity to redress the alleged neglect as required by their contracts before they can be dismissed with cause by the board.
They are asking the court to force the credit union to live up to the terms of the contract under the dismissal not for cause - each demanding hundreds of thousands of dollars in lost wages and benefits. Galante is also demanding the credit union forgive the balance of a $39,000 car loan and an $880,000 mortgage.
Galante is insisting that the BHCU's denial of a $45,000 unsecured line of credit constituted breach of contract as was the credit union's demand that the former CEO refinance his mortgage and automobile loans at a higher interest rate than the employee discount rate he received. Galante was removed from his CEO spot in late January, less than a month after his application for an unsecured loan was rejected.
Though Galante had more than $900,000 in outstanding loans with BHCU, he was earning just a $69,000 salary in his third year as chief executive. In his complaint he is asking to be paid $7,500 in performance-based bonuses.
Calls to attorneys representing Galante and Blewitt were not returned. BHCU did not respond to a request for comment.
