E-Trails Special Edition

TLBAA Arbitration Final Award Information

Click on the link below for a letter from TLBAA Attorney Richard Wiseman that outlines the outcome of the King/Spindor arbitration, along with the Final Award document.

Arbitration Award Letter and Arbitration Final Award Document (392 kb PDF)

On October 17, 2007, Trails Editor Brenda Cantrell interviewed, via telephone, TLBAA attorney Richard Wiseman about the outcome of the arbitration against former TLBAA employees Don L. King and SuzAnn Spindor. TLBAA Board Chairman Dr. Fritz Moeller and TLBAA Treasurer Ty Wehring were in attendance during this interview.

Trails Editor Brenda Cantrell: In your opinion, did the TLBAA win the arbitration against Don King and SuzAnn Spindor?

TLBAA Attorney Richard Wiseman: Absolutely!

Cantrell: Why do you call this a victory?

Wiseman: Because they filed counter claims against the TLBAA. In Spindor’s instance, we would not have recovered anything from her because she was claiming that the TLBAA owed her money and she wanted her legal fees to be paid as well. The Arbitrator denied her counterclaim. She was seeking approximately $13,000.00 from the TLBAA, plus her attorney’s fees.

And the same for King. He also brought a counterclaim against the TLBAA that sought to offset the TLBAA’s claims against him by more than $85,000.00, plus his attorney’s fees. That counterclaim was also denied.

Cantrell: As we look at the amount of damages owed by King and Spindor, it is considerably less than what the forensic auditor reported as misappropriated from the TLBAA. Based on these awarded figures, how can you call this a victory?

Wiseman: Just by an example, our forensic auditor Bill Brown reported one of the major amounts against King and Spindor had to do with $66,000 on sponsorship commissions paid to Spindor. Based upon his findings, Mr. Brown claimed that King and Spindor had not received approval from the Board of Directors for her to receive those commissions.

The board set King’s salary and King set Spindor’s salary. I think what the arbitrator stated in his response was, more likely than not, there was Board approval. Opposing counsel argued that King was allowed to set Spindor’s salary. The only issue is that we felt that all of the Board, not just a few insiders, should have known Spindor was receiving commissions on sponsorships.

Cantrell: Who were the TLBAA board members who testified on behalf of King and Spindor?

Wiseman: They had three at the hearing: Tim Miller, Tom Claassen, and Sherman Boyles. Bob Moore was deposed at an earlier time on their behalf. However, I felt Bob Moore was a very good witness for us.

Cantrell: Were other Board Members there to testify on behalf of the TLBAA?

Wiseman: Yes, there were Board Members testifying on our behalf. They were Carla Payne and Dr. Bob Kropp. They testified that they didn’t know about the sponsorship commissions to Spindor. The auditor Bill Brown also testified on our behalf.

We had Joel Lemley lined up for testimony, but decided that it would be repetitive, so we did not call him. We ended on a good strong note.

We did not call Larry Barker to testify. The opposition subpoenaed him, so he became a King/Spindor witness. However, on cross-examination I brought out that Barker paid rent to Don King and Barker was unaware that King was having the TLBAA pay King’s home lease payments.

Cantrell: It states in the Final Award that the funds must be paid by November 12, 2007, what if the funds are not paid?

Wiseman: If it is not paid by November 12th, the TLBAA has the right to go to court and have the Award confirmed as a final judgment against them. If we are forced to do that, then the TLBAA will get an additional $5,000 in attorney’s fees. Once a final judgment is entered by the court, that judgment can be abstracted in the Deed Records to attach to any real property that King and Spindor own. Further, a writ of execution can be issued on the judgment, which authorizes a constable to seize cash in their bank accounts and all non-exempt personal property they own.

Cantrell: There has been considerable interest in what the Tarrant County District Attorney’s role will be in our case. Have you been notified by them?

Wiseman: First of all, I met with the District Attorney’s office early on in this proceeding, just as we got agreement among counsel that we were going to arbitration. I told the prosecutor that King and Spindor had retained counsel and agreed to go to binding arbitration with the TLBAA.

Cantrell: Have we notified the District Attorney’s office since we received the arbitrator’s Award?

Wiseman: I have not notified the District Attorney’s office yet. I wanted to first discuss the issue with Dr. Moeller and ask him how he would like for me to proceed. I have seen the Assistant District Attorneys who are handling the case on a couple of social occasions and they have asked me to let them know the outcome of the arbitration.

Chairman Moeller: Richard, this is Dr. Moeller and you have my permission to proceed.

Wiseman: Then I will contact them and let them know what happened. In my experience, the DA’s office will take my evidence and use it as their case.

Moeller: How will they go about paying the award?

Wiseman: They will, more than likely, make the payment through me. If they do not pay by November 12th, the TLBAA has the right to file a lawsuit in district court for the court to enter a final judgment on the Award. That is a very quick proceeding that can be heard in as little as 30 or 45 days after service of the suit.

Cantrell: May we publish your letter and the arbitration Award in the November issue of the Trails magazine and on E-Trails?

Wiseman: I don’t have a problem with that. The arbitration proceedings are private from the standpoint that the public can’t attend, and witnesses, attorneys and other attendees were prohibited by the arbitrator from discussing the case while it was pending. However, the arbitrator released everyone from that gag order once the Award was issued.