Brubaker sues the Generals and Art Donaldson January 29, 2002

by D. K. Williams
ESP Magazine - January 30, 2002

In a move that threatens the existence of the franchise, the Greensboro Generals have been sued for breach of contract and fraud by their former head coach, Jeff Brubaker.

The lawsuit, filed in Guilford County Superior Court, alleges that Greensboro Professional Sports, LLC, the parent company of the Generals, fired Brubaker without cause and made fraudulent claims to induce Brubaker to enter into an employment agreement.

The complaint seeks, among other things, the $98,000 Brubaker would have been paid during the final year of the contract, and punitive damages.

In addition to Greensboro Professional Sports, the complaint names Art Donaldson as a defendant. Donaldson, an attorney and former FBI agent, is the man behind the existence of the Generals and the arenafootball2 Greensboro Prowlers. Brubaker alleges that GPS is undercapitalized, and that he should be able to recover directly from Donaldson's personal assets.

THE BREACH OF CONTRACT COUNT

The initial employment agreement was signed on June 23, 1999. A copy of the contract is included with the complaint on file at the Guilford County Clerk of Court's office.

According to the document, Brubaker was paid $90,000 during the 1999-2000 season, his first year as coach, and $94,000 during his second year. He was to be paid $98,000 during the final year of the deal.

The original contract states that Brubaker could only be fired "if Brubaker or his coaching staff willfully violates the salary cap rules and regulations of the East Coast Hockey League which violation results in a monetary fine in excess of $5,000.00 being levied against GPS."

However, the complaint includes a modification of the original employment agreement that prohibited Brubaker from incurring any expense "on behalf of the team without the express written consent of" Donaldson or from making "any player move, including, but not limited to, by way of trade, waiver, releasing, acquisition, or other, without the express written consent" of Donaldson.

These limitations were placed on Brubaker during the middle of the 2000-2001 season, and were valid "for the period of November 29, 2000, through December 29, 2000." The parties agreed to this modification so that they could discuss Brubaker's future with the organization.

The modification also required Brubaker to "use his best efforts to promote GPS and the team, both on and off the ice."

According to the lawsuit, Donaldson fired Brubaker "early in the second season." It was at this time that the parties entered into the "modification" that restricted Brubaker's authority with the team.

The complaint alleges that Brubaker's dismissal was ultimately withdrawn, and that the parties reverted to the original agreement after December 29, 2000.

Brubaker was fired for good at the end of the second season.

THE FRAUD COUNT

Brubaker alleges that GPS intentionally misrepresented its ability to fund the operating expenses of the hockey team, that GPS purposefully misled him in an effort to sign him as a coach, and that he, in fact, was misled, and that he suffered damage as a result.

The complaint alleges that during the first year of the Generals' existence, GPS "deferred payment to suppliers who extended credit to the company because there was no monetary reserve to run the company and insufficient receipts to pay debts out of receipts."

Brubaker alleges that Donaldson "acknowledged" that GPS was "undercapitalized from the beginning," but does not allege when or how the “acknowledgment” took place.

The complaint states that "suppliers who had extended credit to (GPS) put a hold on their accounts with (GPS) and refused to further extend credit” and that “as a result, players were reduced to having to pay for their own equipment, and several threatened to quit the team."

Brubaker alleges that Donaldson formed a new corporation, Piedmont Professional Sports, LLC, in April 2001, and "that the sole substantial reason for the formation of the new company is to evade the obligations of the old, including the obligations to (Brubaker)."

DONALDSON'S RESPONSE

The defendants' answer to the complaint is not due until 5:00 p.m. Monday, January 28, after this edition went to press. However, Art Donaldson gave the following statement:

Rocco Scarfone (President and co-owner of the Generals as of the current hockey season) and I are working very hard and exploring all possibilities for ensuring that ECHL hockey and the Generals will remain in Greensboro. I made a commitment that we would have the Generals for three years and that commitment has been fulfilled. But, that does not mean that there might not be a commitment for future years and we are trying to find a way that is financially viable.

"The Brubaker lawsuit and the (as of yet unfiled) answer and counterclaims speak for themselves. I intend to fight Brubaker's claims to the fullest extent possible. I doubt if he will be successful, but if he is it spells doom for the Generals, and that is reason enough to fight. He already injured us on and off the ice when he was coach and GM, and any monetary judgment he might receive would probably result in the team shutting down because the well is running dry."