Former Employee Files $50 Million Suit against CSX

Lewisburg, WVThe former president of the Greenbrier, A CSX-owned resort, filed a $50 million lawsuit against the railroad company, alleging that he was unjustly fired by CSX President Michael J. Ward for revealing and trying to put a stop to unethical practices taking place within the company.

These unethical practices taking place allegedly involves former and current executives for CSX not accounting for certain fringe benefits that they received. The former employee, Paul Ratchford, who was head of the famous Greenbrier Resort between 2006 and 2007 claims that the executives received free medical examinations at the resort's clinic, received generously discounted merchandise at retail shops, received heavy discounts at food and drink outlets, and received free rooms.

While Ratchford was heading the Greenbrier, he oversaw the $50 million renovation project that took place. The Greenbrier is also known as the West Virginia-based CSX Hotels Inc. Named as defendants in the case in addition to CSX Hotels Inc. are the Georgia-based company Head Coach, Michael J. Ward, Howard Shapiro, and Bruce Rosenberger.

Ratchford alleges that the executives were benefiting from a luxurious lifestyle at the expense of the Greenbrier that was losing approximately $15 million per year. The 15-page lawsuit contains certain counts of wrongdoing, breach of contract, fraud, violation of California labor laws, wrongful discharge, West Virginia wage and payment act violation, and emotional distress.

In the lawsuit, it states that on September 18, 2007, Ward terminated Ratchford without any type of explanation. However, when Ratchford was allegedly fired, a news release told the public that Ratchford had left the Greenbrier to pursue other interests.

Before Ratchford became the president of the Greenbrier, he was the general manager of the Ritz Carlton at Half Moon Bay, California. He says in the suit that CSX had attempted to woo him away from his position at the Ritz Carlton. When the position at the Greenbrier became available in October 2006 due to the retiring of the previous president, Ted Kleisner, Rathford initially turned down the position because of the impact moving to the east coast would have on his family. However, Ratchford said that he was told that he could keep that position for the rest of his career if he desired. He decided to take the position because his contract offered him $350,000 per year as his annual base salary and he was also offered incentive pay and bonuses. Ratchford also bought a home at the Greenbrier Sporting Club worth millions of dollars. Ironically, he says that he found within months of former president Kleisner's retiring that he was holding a position running the Hershey Entertainment and Resorts in Pennsylvania.

No one from CSX has commented on the lawsuit.

By Ginger Gillenwater