Schuster: Brown’s consulting wasn’t OK
by Kim Isaza
newseditor@mdjonline.com
April 04, 2012 12:25 AM | 3805 views | 15 15 comments | 23 23 recommendations | email to a friend | print
Former Cobb EMC CEO Dwight Brown.
Former Cobb EMC CEO Dwight Brown.
slideshow
MARIETTA — Tuesday’s hearing before Judge Steven Schuster regarding Dwight Brown’s consulting contract with Cobb EMC was unlike any previous hearings involving the utility and a handful of members who sued the utility in 2007.

This time, the plaintiffs and the utility were on the same side in opposing efforts by Brown, the former chief executive of the member-owned electric cooperative, to be paid the $1.8 million left on a consulting contract. He and then-EMC board chairman Larry Chadwick signed the contract on March 1, 2011, the day after Brown retired as ordered in the settlement of the 2007 lawsuit.

Judge Schuster listened to about an hour’s worth of arguments in Cobb Superior Court on Tuesday before telling Brown’s lawyers that he would rule that the settlement barred the former CEO from working with the EMC in any capacity after Feb. 28, 2011.

“I’m not flip-flopping on this,” Schuster said.

One of Brown’s attorneys, David J. Larson, a partner in the Atlanta and Las Vegas offices of Weinberg, Wheeler Hudgins Gunn and Dial, earlier acknowledged to the court that he would likely appeal Schuster’s ruling.

“If you rule against us, we will appeal,” Larson said.

Brown did not attend the hearing, a fact that caught the judge’s attention.

“Mr. Brown was always invited,” Schuster said. “From the beginning of this litigation, I don’t recall him being in court.”

At issue Tuesday was the question of whether the settlement agreement left any room for Brown to continue working at the company after his required retirement.

Dwight Davis, a partner in the law firm of King & Spalding, argued that it did not and that the $13,800-per-week contract was “illegal.” The company also wants Brown to pay back the money he’s already received under the deal before it was canceled in July 2011.

Regarding the 2007 settlement agreement, Davis asked, “Was it the parties’ intention that Cobb EMC could have Dwight Brown continue at the company in some capacity? We believe your answer to that is no. The consulting agreement says Mr. Brown will get his (contract value) if he is wrongfully terminated for cause. We’re not terminating this for cause. We terminated it because it violates your order.”

Larson, though, insisted nothing in the settlement prohibited the consulting contract.

“The plaintiffs may not like this, you may not like it, the members may not like it, but is it barred by the settlement agreement?” Larson asked. “One thing we honor in this country is contracts.”

The dispute between Brown and the utility had been scheduled for arbitration in January when the utility asked Judge Schuster to decide on the validity of the consulting contract.

Three of the plaintiffs to the 2007 lawsuit attended the hearing with their lawyer, Pitts Carr.

“We urge that you protect the members from having to again compensate Mr. Brown,” Carr told the court.

Early in the hearing, when Larson mentioned a meeting in the judge’s chambers last July that Brown did not attend, Schuster said: “The court’s frustration all along is that Feb. 28 came and went and Mr. Brown never left. And then even after I ruled (June 24) that he couldn’t stay, nobody was listening to me! I made myself clear. He’s done!”

As for whether the company and Brown might settle the dispute, Davis said the chances of that were “zero.”

“The company feels Mr. Brown was fairly compensated for the time he was at the company,” Davis said. “He can’t now be a consultant, and therefore they aren’t going to pay him.”

Larson refused to comment to the Journal.
Comments
(15)
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Cobb Rate Payer
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April 05, 2012
The sole reason there is a "possibility" for Brown winning in this case is the direct result of sloppy work by the Judge and the Plaintiff's lawyers - in concert with the conniving of the Cobb EMC Board, pretty clear ! And there sits Mr Chip Nelson ? Bring on the forensic audit !
Dan Davis
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April 05, 2012
First, I find it incredibly ironic that Mr. Brown's current legal firm is from Las Vegas. He's been gambling with Other People's Money for years.

Second, this pathetic litigation at EMC members' expense, more than anything in recent memory, demonstrates with absolute clarity where Mr. Brown's true interests lie -- and have always lain: "Show me the money!"
PhilinWestCobb
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April 04, 2012
It's obvious that the contract was between Chadwick and Brown. It looks like a personal obligation between those two, Let Larry pay Dwight. CEMC has no obligation in this personal contract.
anonymous
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April 04, 2012
Dwight Brown let it go. You have lost!!! Allow the co-op, the members, and employees to continue the healing process. You have tarnished the Cobb EMC name long enough. The co-op has a name, that in the past, many of the other EMC's across the state recognize and could only dream about having a system so well designed as Cobb's. Now they are glad they have a different name. Now for the members we do have the right to know what and how the co-op is being run. You tried to hide things and not let the members know the truth about things for way to long. For the employees, they are a good hard working bunch of people. They go to work everyday and have had to listen to the members put them down for not reporting you. When all they are trying to do is keep the lights on at everyone's house and provide for their own families. I imagine you lied to them as well. So with all this being said. Dwight, you have caused enough problems for our co-op, members, and employees that is going to take years to undo. It is time for you to give it up.
EMC member
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April 04, 2012
One day - this dragged out rip-off by Brown will be "gone with the wind". Then, what are we going to work on? Getting rid off our do-nothing legislators?
SG68
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April 04, 2012
Sounds like we are back to debating issues like what the meaning of is, is.

Unfortunarely plain english, common sense and basic integrity have no standing when it comes to the legal system being manipulated by shysters.
anonymous
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April 04, 2012
Arrogant doesn't even begin to describe Dwight Brown.
TIC
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April 04, 2012
How about arrogant, ugly, fat, crooked and unfortunately rich?
No Show
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April 04, 2012
Judge Schuster,

Things aren't going Dwight Brown's way lately, so he is not going to show up, strut around and sit on a throne unless he is ordered to appear.
ol' retired doc
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April 04, 2012
I'd much rather see him ordered to disappear!
Detail Oriented
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April 04, 2012
Here are the actions that should be taken next:

1. Brown needs to pay back all the money paid to him for his contract work.

2. Brown needs to pay back Cobb EMC for all lawyer's fees pertaining to the contract dispute.

3. Larry Chadwick and other EMC Board members need to be indicted for offering such a contract.

4. The trial needs to proceed soon for the 34 indictments against Brown.

5. A forensic audit of Cobb EMC needs to take place as soon as the remaining EMC Board members are decided.

Stayed tuned. There should be more needed actions added to this list.

Thank you Judge Schuster and I hope you have learned that when it comes to sneaky people with high paid attorneys, you need to spell out every tiny, tiny detail.

EMC Owner
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April 04, 2012
Brown needs to get ready to pay back all the compensation he received since he was hired in 1993 as CEO. The forensic audit is going to probably uncover more misdeeds. Stand by for more!
Harry A
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April 04, 2012
Refreshing to see Judge Schuster categorically state that Mr. Brown was to be out on Feb. 28th.

And likewise to hear him note to Brown's attorney that this has "always been about the co-op members." I know because I was there.
Pat H
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April 04, 2012
Mr. Larson criticized the MDJ and people who blog unflattering remarks about Dwight Brown.

Here's your sign Mr. Larson. It is truly unfair that Cobb EMC owners are paying for you and your associate to go to court to try to fleece us once more.
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