Two disgruntled employees of a fallen Richmond financial firm want another round in mediation with their former bosses.
Kerrie Borboa and Timothy O’Grady will take a second turn later this month at negotiating a settlement with 15 former executives and directors of LandAmerica, the local title insurance giant that collapsed in 2008.
The negotiations stem from separate class action suits filed by O’Grady and Borboa in Richmond’s U.S. District Court seeking to blame LandAmerica’s former top executives, including CEO Ted Chandler, for allegedly mishandling the company’s pension fund as the firm faltered and failed.
All sides met in an initial mediation session in New York City on June 5 but could not reach a resolution, according to court records filed June 25.
“Despite the full day of negotiations, no agreement in principle was reached regarding the litigation,” court records stated.
The parties have asked for an extension from the court to keep a freeze on the litigation process while another mediation session is set up. The extension was granted by the court through July 25. The parties may meet again for negotiations on July 16, records show.
If the parties can’t reach an agreement, the case will be heard in federal court. Photo by Michael Schwartz.
“The parties … wish to continue their settlement discussions in order to explore whether an amicable resolution to the action can be reached before delving back into litigation,” court documents said.
The two cases seek to force the 15 defendants to foot the bill for millions of dollars of losses to the LandAmerica pension fund. The suit could also trigger insurance policies that the company would have had to potentially cover the executives and directors.
A case against LandAmerica with a similar goal succeeded in 2012 when it sought to blame the board members and executives for the company’s collapse. That case won a settlement of $36 million paid for by an insurance policy.
Borboa filed her case in December, and O’Grady filed his in March. The suits were melded into one mediation session because of the similarity of their claims.
In addition to Chandler, the defendants in the cases include former LandAmerica chief administrative officer Ross W. Dorneman, former CFO G. William Evans, and former directors Janet A. Alpert, Gale K. Caruso, Michael Dinkins, Charles H. Foster Jr., John P. McCann, Dianne M. Neal, Robert F. Norfleet Jr., Robert T. Skunda, Julious P. Smith Jr., Eugene Trani, Thomas G. Snead Jr. and Marshall B. Wishnack.
Attorneys in Washington, D.C. with Foley & Lardner are representing Chandler, Dorneman and Evans.
Attorneys from Skadden, Arps, Slate, Meagher & Flom are representing the 12 former directors.
Borboa is represented by Kessler, Topaz, Meltzer & Check in Pennsylvania.
Northern Virginia law firm Cuneo Gilbert & LaDuca, and Gainey McKenna & Egleston in New York are representing O’Grady.
Details of mediation sessions are kept confidential from the court record.
If a resolution is not reached in mediation, the cases will head back to be tried in court.
Two disgruntled employees of a fallen Richmond financial firm want another round in mediation with their former bosses.
Kerrie Borboa and Timothy O’Grady will take a second turn later this month at negotiating a settlement with 15 former executives and directors of LandAmerica, the local title insurance giant that collapsed in 2008.
The negotiations stem from separate class action suits filed by O’Grady and Borboa in Richmond’s U.S. District Court seeking to blame LandAmerica’s former top executives, including CEO Ted Chandler, for allegedly mishandling the company’s pension fund as the firm faltered and failed.
All sides met in an initial mediation session in New York City on June 5 but could not reach a resolution, according to court records filed June 25.
“Despite the full day of negotiations, no agreement in principle was reached regarding the litigation,” court records stated.
The parties have asked for an extension from the court to keep a freeze on the litigation process while another mediation session is set up. The extension was granted by the court through July 25. The parties may meet again for negotiations on July 16, records show.
If the parties can’t reach an agreement, the case will be heard in federal court. Photo by Michael Schwartz.
“The parties … wish to continue their settlement discussions in order to explore whether an amicable resolution to the action can be reached before delving back into litigation,” court documents said.
The two cases seek to force the 15 defendants to foot the bill for millions of dollars of losses to the LandAmerica pension fund. The suit could also trigger insurance policies that the company would have had to potentially cover the executives and directors.
A case against LandAmerica with a similar goal succeeded in 2012 when it sought to blame the board members and executives for the company’s collapse. That case won a settlement of $36 million paid for by an insurance policy.
Borboa filed her case in December, and O’Grady filed his in March. The suits were melded into one mediation session because of the similarity of their claims.
In addition to Chandler, the defendants in the cases include former LandAmerica chief administrative officer Ross W. Dorneman, former CFO G. William Evans, and former directors Janet A. Alpert, Gale K. Caruso, Michael Dinkins, Charles H. Foster Jr., John P. McCann, Dianne M. Neal, Robert F. Norfleet Jr., Robert T. Skunda, Julious P. Smith Jr., Eugene Trani, Thomas G. Snead Jr. and Marshall B. Wishnack.
Attorneys in Washington, D.C. with Foley & Lardner are representing Chandler, Dorneman and Evans.
Attorneys from Skadden, Arps, Slate, Meagher & Flom are representing the 12 former directors.
Borboa is represented by Kessler, Topaz, Meltzer & Check in Pennsylvania.
Northern Virginia law firm Cuneo Gilbert & LaDuca, and Gainey McKenna & Egleston in New York are representing O’Grady.
Details of mediation sessions are kept confidential from the court record.
If a resolution is not reached in mediation, the cases will head back to be tried in court.