A shocking legal battle has erupted, with former top executives of Birmingham's regional water utility taking the board and its new CEO to court. This comes as a double whammy, on the same day that Central Alabama Water found itself at the center of a federal lawsuit.
The lawsuits, filed by General Manager Mac Underwood and his trusted lieutenants, Barry Williams and Michael Parker, allege a conspiracy to breach their employment contracts and terminate their services. These former leaders are seeking millions in damages, claiming wrongful termination and fraudulent representation.
But here's where it gets controversial... Underwood's team was placed on administrative leave, with pay, just hours after the board's decision to hire Jeffrey Thompson as the new CEO. This move, according to their attorney, John Q. Somerville, is a clear breach of contract, akin to firing a football coach without paying out their contract and severance.
Underwood, with his $446,118 annual salary and five-year contract, stands to receive over $2.2 million in payouts, excluding benefits. The assistant general managers, with an average salary of $334,000, also have agreements for a year's salary if terminated.
Somerville argues that these workers were effectively fired without the compensation they are legally entitled to. He further alleges that the board had been planning this move for months, working behind the scenes to hire Thompson and remove senior staff members who were hired to bring much-needed reforms to the utility.
"Mac has dedicated his career to serving Jefferson County and the people of Central Alabama," Somerville stated. "His reputation is impeccable, and the way this board has treated him, along with Michael and Barry, is simply unacceptable."
The secrecy surrounding the CEO selection process has been a point of contention within the board, with only three out of seven members serving on the search committee. Underwood, who was rehired in 2025, had previously served as general manager from 2005 to 2018, and his team, including Williams and Parker, were brought on board to address customer service and billing issues.
"The treatment of these employees is shameful," Somerville added. "I was taught that a rising tide lifts all boats, and it's sickening to see how those who have served the ratepayers of Central Alabama are being treated."
This legal battle is just one part of a wave of litigation hitting Central Alabama Water, including the federal case alleging that state lawmakers illegally took over Birmingham's water utility.
And this is the part most people miss... the impact of these lawsuits extends beyond the boardroom. It raises questions about the treatment of employees, the role of leadership, and the future of a vital public utility.
What are your thoughts on this complex situation? Do you think the board's actions were justified, or do you side with the former executives? We'd love to hear your opinions in the comments below!
