PORTSMOUTH, N.H.–Court arguments are scheduled to be heard here today in a case involving a former credit union CEO and a CEO that says his alleged affair nullifies a contractual agreement.
Gordon Simmons, the former president and CEO of Service Credit Union, filed suit against the CU in March of 2017 alleging the credit union has failed to provide him lifetime health insurance coverage as per an agreement. Service Credit Union responded with a counterclaim that alleges Simmons breached his fiduciary duty by having an affair with a subordinate, which in turn led to another person being fired at the credit union, and that caused the credit union to settle legal claims. SCU’s counterclaim also alleges Simmons lied about the affair.
Today’s hearing in the U.S. District Court of New Hampshire is in response to a motion filed by Simmons’ lawyer, attorney Paul McEachern, who is arguing the case belongs in the Superior Court, not the federal court, Seacoastonline.com reported. McEachern is arguing SCU brought the case to the federal level based on its contention that the dispute falls under a federal law, the Employment Retirement Security Act of 1974 (ERISA). McEachern’s motion to remand the case to the Superior Court states Simmons was promised lifetime insurance for himself and his wife under a contractual agreement, not an “employee benefit plan” as defined for a case under ERISA, according to seacoastonline.com.
Service CU is being represented by attorney Debra Weiss Ford.
In its counterclaim, SCU alleges Simmons resigned “involuntarily” after lying about an affair with his administrative assistant, then later “fully admitted to the affair, to numerous violations of (SCU) policies, and to lying to the board of directors,” reported seacoastonline.com. SCU told the court Simmons “began a sexual relationship with his administrative assistant” in 2015 and “used SCU resources to further his extra-marital affair with his subordinate, including taking her on a business trip and charging the expenses to SCU.”
SCU is further alleging that when another employee “questioned the existence of the inappropriate relationship,” Simmons recommended to the board the employee be fired for lying, without disclosing his affair.
Simmons was with Service Credit Union for 41 years, the last 21 as president and CEO, before resigning in 2016. Court documents state that among Simmons’ benefits was living in a SCU-owned home in Portsmouth.
Both Simmons and his wife reportedly now live in Germany.