Paul Ratchford, former president of The Greenbrier, located here, filed a $50 million lawsuit against the resort owners CSX Corporation and other Greenbrier executives alleging wrongful discharge and causing post-traumatic stress disorder, among other allegations.
According to a copy of the lawsuit supplied by Ratchford’s lawyer, Barry L. Bruce, the former executive was working as general manager of The Ritz-Carlton, Half Moon Bay, located south of San Francisco, in summer 2006, when he was offered the position at The Greenbrier.
Ratchford declined the offer at first, but ended up accepting it Sept. 5, 2006 with instructions to help the resort recover from losses estimated at $15 million per year, reclaim its Mobile Five-Star rating and attract a younger clientele.
Prior to accepting the position, the lawsuit alleges Greenbrier officials “emphasized the fact that this was a job that Plaintiff [Ratchford] would have for the remainder of his working career, he was the man for the job”…and “there were no down sides to the acceptance.”
The lawsuit claims that upon arriving at The Greenbrier, Ratchford began an investigation into why the resort was losing money and allegedly found that “the executives of CSX and/or CSX Corporation were receiving an enormous amount of free benefits for themselves, their families, and their friends all at great expense to the Greenbrier.”
In addition, the suit alleges that none of the benefits were being reported as income.
Ratchford then allegedly reported his findings to Michael Ward, CEO of CSX, who agreed to a 25 percent employee discount instead, according to the suit.
In response to some of Ratchford’s new business procedures, the suit claims that two of his colleagues “contacted CSX Corporation and/or Michael Ward without Plaintiff’s [Ratchford’s] knowledge or consent with the intent and purpose to interfere with the employment contract between Plaintiff and CSX and/or CSX Corporation and in retaliation for the Plaintiff’s new business practices.”
According to the lawsuit, after several positive performance reviews, Ward terminated Ratchford Sept. 18, 2007, “without cause or explanation and within a 45-second conversation.”
Ratchford’s lawsuit claims he was offered $700,000 in severance benefits as well as 1,200 shares of stock upon his termination. The lawsuit also alleges his accrued wages as well as severance were to be paid to him within 72 hours, but instead Ratchford did not see the monies until weeks and months later.
The lawsuit claims Ratchford “suffered severe emotional distress, has come under a physician’s care and has been diagnosed with Post Traumatic Stress Disorder.” It also alleges Ratchford has suffered “the equivalent of a career death sentence in the resort industry” as a result of the ordeal.
In all, Ratchford is alleging seven counts in the lawsuit: violation of the Wage Payment and Collection Act, breach of contract, wrongful discharge, tortious interference with contractual relationship, intentional infliction of emotional distress, California labor statute violation, and fraud.
At press time, Bruce, Ratchford’s lawyer, was unavailable for comment.
In response, CSX’s spokesperson Gary Sease said, “The allegations are without merit and the company will defend its position vigorously in court.”
Lynn Swann, director of public relations for The Greenbrier, said that as part of its policy, the resort would not comment on any pending litigation.
