EMC fights disclosure of Brown’s pay
by Kim Isaza
newseditor@mdjonline.com
September 21, 2011 12:23 AM | 3750 views | 19 19 comments | 18 18 recommendations | email to a friend | print
MARIETTA — Lawyers for Cobb EMC have asked Judge Stephen Schuster to reconsider his order requiring them to disclose how much Dwight Brown was paid between December 2008, when the lawsuit was settled, and Feb. 28 of this year, when he retired as head of the nonprofit electric membership cooperative.

In their motion, filed with the court late Monday afternoon, attorney Dwight Davis argues that the salary information is not part of the matter raised in the underlying lawsuit, nor part of enforcing the settlement that was to resolve the suit.

“The compensation is irrelevant to enforcing the agreement settling the lawsuit because that agreement contains no provision relating to Mr. Brown’s employment … before February 28, 2011,” according to the motion. Further, Judge Schuster apparently acted on his own accord in demanding the information.

In a telephone interview, Davis said, “At some point you have to ask: Is there any authority for the judge to be running this company? What is the authority for some of these disclosures? We’ve tried to be good citizens about this. He ordered all 10 directors to his courtroom, even though not all 10 directors are defendants in the lawsuit.

“By taking the dates he has picked, it is terribly misleading. He was an employee there for 37 years, and as part of the settlement, his retirement plan was bought out. … This is unnecessary, trying to dredge up all the things that came out of the settlement, and things that were fully vetted in ’08. … To now, on the eve of these elections, order regurgitation of all that seems unfair to me,” Davis said.

In 2008, before the settlement was reached, the plaintiffs estimated that Brown, who was then president and CEO of both Cobb EMC and the for-profit Cobb Energy, earned $1.6 million annually in salary, stock dividends, retirement and other benefits.

Pitts Carr, the lead attorney for the plaintiffs who brought suit in October 2007, said he disagrees that the salary information is outside the court’s jurisdiction. He plans to file a response today.

“An important part of the (settlement) agreement was that they were to provide to the court information on the details of the implementations of the various provisions of Dwight Brown’s employment contract on a monthly basis. They have never provided any data at all on the resolution of his contract claims, and clearly the court is entitled to see that under the agreed provision,” Carr said.

Bo Pounds, one of the six plaintiffs, said the EMC doesn’t want to disclose Brown’s compensation because “it’s sizable.”

“Why shouldn’t we know? They don’t want anybody to know anything,” Pounds said. “The EMC is owned by the people, and we should know what they make, no matter what.”

Judge Schuster’s office has not said when he will rule on the motion, though the sides are due in his chambers on Sept. 28 to discuss the salary issue and to update the judge on the status of dissolving spin-off companies created under the for-profit Cobb Energy.

Judge Schuster also ordered Cobb EMC to disclose how much Brown was paid as a consultant after he retired on Feb. 28, and Davis said he intends to provide that information, though he declined to divulge that figure just yet.

“It is what it is,” he said.
Comments
(19)
Comments-icon Post a Comment
watcherofyou
|
September 26, 2011
Mr. Broadwell



I'm sorry it has taken me this time to get back to you I had to take care of some off shore business.What I'm saying is that working with Ga Power could sway some of your votes if elected to the board.maybe,and yes your community service is noted.If you were elected to the board would you think of it as community service and work for free.that would be nice.As for understanding each other, I'm A concerned cobb county home owner,and your wanting on the board of the 2nd largest emc in georgia.thats the understanding I/WE need for the time.Wrong again on who I work for.WATCHEROFYOU

Eric Broadwell
|
September 22, 2011
In response to watcherofyou:

My consulting at Ga Power was on how they could update an aging system to handle the new Smart Meters and Update the GIS system to better serve their customers. If I was in this for the money I wouldn't run for this board. Look at the community service I have done (all for free) and the results it has brought to East Cobb and Roswell. I was aksed by Mayor Wood (who is a Cobb EMC member) to look into running because of my integrity. Ask anyoen who has met with me and got to know me. I can gladly meet with you to understand you and for you to understand me. Posting gossip doesn't help anyone. Maybe you work for Cookerly & Associates?
Why Are We Alone?
|
September 22, 2011
Why are there no rules and regulations from state and federal agencies to guard against the actions of corrupt board members? Why are we virtually alone in trying to fight a sophisticated, politically entrenched scheme to use "OUR" money for their own personal gain?

How have the other board members been able to hide from public scrutiny for so long? It's time we made it very public with names, pictures, length of service and how much they've been paid since serving on the board. What other ties do they have to the business and political community?

It's time Brock and Clay where put under the spotlight too. A connected firm that is not only costing the EMC owners (us) millions, but also costing the county millions representing the school board. Were they involved in the backroom dealings and legal maneuvers to aid the Brown and the board in their apparent scheme? A reasonable person would have to think it bears looking into. Maybe the State Bar Assoc needs to look into it also.

Then again we've elected by all accounts one of the most corrupt politicians in the history of state politics (and that's saying something) in Nathan Deal. If you don't want to bother with being investigated for corruption, just strip the agency that is in charge of it. So to say the system is corrupt and merely there to enrich the connected few is an understatement.
Blowin Steam
|
September 21, 2011
I think Take Back Cobb EMC is correct. If a report is released detailing everything Dwight Brown has been paid, it will really, really infuriate Cobb EMC customers, if that is really possible to infuriate us anymore. And that will further jeopardize the reelction of any of the present Board members. I know it is all I can do not to go right through this computer every time I read about another delay tactic by the Board and their million dollar attorneys.

Besides electing ALL new Board members, it will be imperative that the Bylaws of our EMC are checked and possibly amended to try and stay ahead of sneaky, greedy, crooked Board members, CEOs and their high paid attorneys.

Members- the days of keeping decent, honest people decent & honest and the days of finding decent, honest people are fading quickly.
Time 4 Change
|
September 21, 2011
I was at the Sept 17 meeting from 8:45 to 1:00. I do want change and that includes going so far as to completely removing the existing Board and selling the EMC to Georgia Power. I never want to be at the mercy of people like Dwight Brown again for any of my utilities. If Cobb EMC employees loose their jobs, then so be it.
watcherofyou
|
September 21, 2011
@ceoamember no lies about the canidates for board.those are statements off there profiles on facebook.You maybe right about the ceoa not endorsing anyone now,but you will.will there be qualifying for the election in november.if so when will that be or is vote for the same people that qualifed in 2008.As for you comment of discipleofdwight.I have never met the man.all I learn is on the internet about him and the ceoa.when will be your next meeting and is it open to the public.WATCHOFYOU
CEOA Member
|
September 21, 2011
CEOA has not endorsed any candidates for the Cobb EMC board yet. Cobb EMC members are welcome to participate in the vetting process of the candidates once the qualifying period ends for each election. This will be done at an open meeting and will be transparent. You will have the opportunity at the vetting meeting to get answers to your questions directly from the candidates. @watcherofyou - sounds more like discipleofdwight - Get your facts straight and stop making up LIES about people.
imeanwhatever
|
September 21, 2011
@union_man,

I like your sentiment but I want to clarify some of the legal errors in your comment. First, on the federal level, an open records request under the Freedom of Information Act only applies to governmental agencies under the executive branch. So, even if the EMC got federal funding, it wouldnt apply to them. On the state level, a request is called an Open Records Request, but, like on the Federal level, the law does not apply to the EMC.

So, unless there is a change in the bylaws, salaries and other financial information does not have to be disclosed in order to meet any legal requirements.

But, again, good sentiment.
troothtella
|
September 21, 2011
“Oh what a tangled web we weave, When first we practice to deceive”. Sir Walter

Scott

Judge Schuster, heed the words of your peer, Justice Lewis Brandeis, "Sunshine is the best disinfectant." Disinfect the EMC and shed some light (no pun intended) on the underground activities of those who are resisting your efforts and questioning your motives!! Stay strong and firm!!!
watcherofyou
|
September 21, 2011
Does any of this really matter.The vote is over a new board is on the way.that is good.now lets look at ceoa[COBB EMC OWNERS ASSOCIATION].who do they want as board members only 2 right now.lets take a look.DAVID LOMBROZO he said restore cobbs reputation so homes will bring a premium price.sounds like he's init for the money.A storm hits is our power not back on fast theres your reputation.that has nothing to do with the board.ERIC BROADWELL he's done alot,but the big thing that raised a flag to me is he consulted for GEORGIA POWER!!! thats not good GA POWER has wanted cobb for a long time.he's init for the money.watch out for CEOA looks like a sell out to me. sounds like the old board.
EMC owner/customer
|
September 21, 2011
Can't wait for all the so called "directors" to be kicked out of office. Replaced by decent and honest people, concerned about what will be best for the members/customers. So next Summer, be ready for a big party, paid for by Brown and the FORMER directors.
anonymous
|
September 21, 2011
At the 2007 annual meeting when Dwight Brown was questioned about Cobb Energy, he told members that they were "getting a deal". If so, why don't they prove this "deal" and disclose everything, including Brown's salary.
union_man
|
September 21, 2011
At each meeting for EMC the total expenditures should be disclosed just as any union hall has to and the budget should be voted on and moved forward. As for salary any member as a right or any citizen of Georgia has the right to know the salaries’, this EMC does receive federal funds and has to give full discloser, an open records request will take care of that. if you made it past the eighth grade you know that from common law in junior high school. As company that has taken federal funds these guys are violating EEOC rules all over the place; vote rigging and racketeering I’m sure Rico Act was used on Brown. All these benefits were illegal because of the vote fraud and packing the ballots, if a labor union was trying this it would be national news and this should be!! Does EMC have to file LM-2’s for taxes or they shielded so they can steal even more money.
Take Back Cobb EMC
|
September 21, 2011
There is only one reason behind this action: the current board doesn't want the members to see how much Brown was paid, especially while he was a "consultant." If they thought the membership was outraged when they voted down mail-in ballots last weekend, all it would take is disclosing this dollar amount and we could see twice as many irate members voting in November.

I hope Judge Schuster denies the request and demands that the EMC disclose Brown's pay and disclose the liquidation of the subsidiaries. Going to be quite interesting what happens at next week's hearing.
EMC Hostage
|
September 21, 2011
So much for the EMC claims of being transparent. These guys are always trying to hide and deflect. This is just another reason we need to boot these crooks out of office. I'm waiting for Patel to ask again "I don't know why they are judging me". I just don't understand why this board continues to inflict wounds upon themselves. It's obvious that they are so clueless to what is really going on. No wonder Dwight Brown was able to rape the EMC of ten of millions of dollars.
Bill Clements
|
September 21, 2011
Disclosure and transparency are two concepts that Cobb EMC leadership are horrified by - could it be that they suffer from shame and embarrassment caused by their greedy actions over the years ? Seems like reveiling Cobb EMC operational facts and unjust self-enrichment, that they created, to their Cobb Co-Op neighbors, work colleagues, fellow church and club members and circle of friends is more than they can stomach. My suggestion is fess-up, man-up and move-out !
Old Marietta
|
September 21, 2011
Why not just tell the TRUTH? This whole embarassing mess would have been over and done with three years ago if the people in positions of Accountability to the membership would have just stood up and told the Truth.

The Truth will set you free. At least that is what Jesus taught.
Pat H
|
September 21, 2011
As an EMC owner, I demand to know how much Davis was paid, how much all of the other lawyers were paid, how much the PR people were paid, and how much the lawyers and executives of Cobb EMC were paid and are still being paid.
imeanwhatever
|
September 21, 2011
one of the very first, and i mean very first, actions the new board members should take is to amend the bylaws to require annual disclosures of two things: unedited financials and salaries. this latest fight is disgusting and shows that the board is scared of what may be shown. if it was not a big deal, then it wouldnt be a big deal. pathetic.
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides