It wasn't your average poaching situation; it involved countersuits, glitter bombs and gorilla poop, and while it looked like an arbitrator had settled the matter, CrossCountry Mortgage is looking to vacate the $10.7 million arbitration award in favor of Guild Mortgage.
In October 2022, Christopher Jordan Flowers, previously managing Guild's Kirkland, Washington office, along with Senior Loan Officer Cory Flynn and former Guild Operations Manager Lisa Jolliffe, refuted accusations against them. At the time, Flowers lodged a countersuit alleging mistreatment and emotional distress. Guild, however, denied these claims.
About a year later, in September 2023, an arbitrator granted Guild a financial award. Despite this, the company reported non-compliance from the defendants, who showed no intent to comply. Consequently, on December 19, 2023, Guild initiated legal action in the U.S. District Court for the Western District of Washington in Seattle.
The award stemmed from the defendants' alleged breaches of employment contracts and other legal violations during their tenure in Washington.
In retaliation, the three ex-employees sought to overturn the arbitration decision in Washington and California courts, arguing that since the final decision was in San Diego, that should be the sole venue for the dispute.
They contended that the award calculation included hypothetical lost profits and excessive legal fees. Guild's arbitration award amounted to $7.4 million for lost profits, $500,000 in damages, $383,902 in disgorgement, and $2.4 million for legal fees and costs.
The former employees cited neglect by Guild's senior management towards the Kirkland branch and lack of competitive products as reasons for their move to CrossCountry. They claimed their attempts to address these issues were ignored.
CrossCountry is appealing the arbitration award.
"The Arbitrator exceeded his authority when he rendered the Final Award," attorneys for CrossCountry said in their petition to the court.
