Chris Johnson, the former president/CEO of the Idaho Credit Union League, sued the trade organization, its board members and the directors of another cooperative for $2.4 million.
In the lawsuit filed in U.S. District Court in Pocatello, Idaho, in June 2015, Johnson claimed he was defamed when written allegations surfaced stating he was biased against non-Mormons and Democrats.
Johnson told CU Times Tuesday that while he is a practicing Mormon, he does not hold bias against any religion or political party.
Johnson also alleged the events leading up to his termination nearly two years ago were intentionally inflicted by league board members and caused him “severe, adverse, emotional, physiological and physical harm.”
Idaho League Chair Shane Berger, who is also president/CEO of the $201 million Beehive Federal Credit Union in Rexburg, denied all of the lawsuit’s allegations.
“On the advice of legal counsel, the Idaho Credit Union League and the other defendants named in Chris Johnson’s complaint do not believe that it is appropriate to comment on the litigation,” Berger said Tuesday. “However, I can say that we deny Mr. Johnson’s allegations in their entirety and intend to vigorously defend against the claims made in his lawsuit.”
According to the lawsuit, Berger told Johnson on Nov. 7, 2013, just five months into Johnson’s CEO job, that the board was dissatisfied with his work.
However, Berger did not inform Johnson of his termination until Nov. 22.
According to the lawsuit, Berger allegedly told Johnson that the board planned to evaluate his performance, but that it would not be completed until after Berger returned from a Hawaii honeymoon trip.
Berger returned from his trip on Nov. 20 and two days later met with Johnson to inform him that he was being terminated because the board was dissatisfied with Johnson’s job performance, according to the lawsuit.
“As a result of Defendant Berger’s actions, including his tortuously and cruelly leaving (Johnson) to twist in the wind for two weeks, (Johnson) suffered severe adverse emotional, physiological and physical harm,” Johnson wrote in the lawsuit.
The former Idaho league CEO also alleged he was defamed by some league board members and directors of the $478 million Capital Educators Federal Credit Union in Meridian, which reflected negatively on his character and ability to lead the league and its for-profit subsidiary, League Services, Inc.
According to Johnson, his problems began on the same day he was offered the league’s top job in April 2013, when Berger allegedly told Johnson the board was split into two factions.
Board members of the Mormon faith favored Johnson as CEO, he said. However, the other faction of board members, who were not Mormons, favored another candidate, according to Johnson’s lawsuit.
Johnson also claimed he was defamed when Idaho League Board Member Robert Taylor, who is president/CEO of the $153 million Idaho State University Federal Credit Union in Pocatello, allegedly told Johnson on Sept. 2, 2013, that several of the league board members held the belief that Johnson was biased against non-Mormons. The claim was related to Johnson's decision to dismiss a league employee who was not Mormon, the lawsuit read.
Idaho State University FCU did not respond to a CU Times request for comment about the allegation.
According to the lawsuit, Johnson also claimed he was defamed when on Oct. 1, 2013, Dr. Larry Neznanski, a board member for Capital Educators FCU, wrote in a letter to Berger that Johnson was, in his representation of Idaho credit unions’ political interest, politically biased against Democrats and favored Republicans.
Johnson also alleged other Capital Educators FCU board members Dr. Jane Clark, Dennis Luvaas, Jane Kinn Buser and Barbara Olic-Hamilton published their statements about Johnson’s purported political bias without any basis for believing them to be true.
Mark Prusynski, a Boise-based lawyer representing Capital Educators FCU, did not respond to a request for comment on the lawsuit’s allegations made against his clients.
Boise-based lawyer Patricia M. Olsson, who also represents Capital Educators FCU, did not respond a request seeking comment.
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