Local contractor HP Civil (HPC) has denied wrongdoing in a $15 million lawsuit filed by its former CEO, claiming the plaintiff is blaming the company for adverse circumstances he created.
On Aug. 12, the business as well as President Larry Gescher and Vice-President Josh Smith denied wrongfully terminating former CEO Roger Silbernagel, who claims he was forced out while investigating complaints of racial discrimination within the company.
A status check hearing is scheduled for Oct. 4 in Marion County Circuit Court before Judge Lindsay Partridge. Defendants are represented by Portland attorney Scott William Oborne, while Silbernagel is represented by Portland firm Chenoweth Law Group.
Silbernagel filed suit June 28 after he was fired as CEO May 31 and told he would have to sell his stake in the company. He claims this was retaliation after he objected to a lax response by Gescher and Smith when Silbernagel’s son, Zach Silbernagel, an HPC employee who identifies as Black, complained last year of racially insensitive behavior in the workplace.
The complaint was made against co-worker Jake Gescher, nephew of Larry Gescher and personal friend of Smith. Silbernagel claimed the company failed to investigate properly, then retaliated against himself and Zach through harassment and ultimately a forced buyout.
However, defendants said Silbernagel was terminated as CEO with cause and his claims of retaliation are made in bad faith.
“Defendants deny that plaintiff Silbernagel’s employment was terminated for any unlawful reason, and that the adjusted book value purchase structure set forth in the agreed-upon Buy-Sell agreement represents an undervaluation,” said the Aug. 12 court filing.
Defendants admitted they received a complaint in 2021 against Jake for inappropriate language at a worksite, and that Zach was not interviewed when Gescher investigated the matter. But they denied failing to appropriately respond to the complaint and said, though Jake was not formally disciplined for the incident, employees generally were reminded by Gescher of HPC’s prohibition against offensive remarks.
Defendants also denied Silbernagel’s claims that Smith retaliated against Zach after the investigation by becoming overly-critical of his work. Defendants said, as early as 2015, Zach’s job performance was questionable, and rather than work with direct supervisors to resolve a problem Zach allegedly reached out to his father.
The Aug. 12 filing also claimed Silbernagel himself had been critical of Zach’s job performance, citing a conversation with Smith on April 19 when Silbernagel allegedly said Zach’s work was deficient and his attitude
was poor.
Additionally, defendants agreed that Silbernagel accused Smith of racial discrimination during a meeting, but claimed Silbernagel backed off of the accusations when Smith denied racial bias. The Aug. 12 filing admitted Smith became upset after being accused of racism, but said this was in response to Silbernagel’s allegedly vague claims and lack of direct evidence.
It was because of the growing intensity of interpersonal conflicts that Gescher and Smith used their combined-majority stake in the company to force Silbernagel out. Though Silbernagel claims he was forced to unfairly sell his shares below market rate, defendants argued he had agreed as an owner to sell at book rate in such a circumstance.
Defendants have asked for the suit to be dismissed in its entirety and no penalties be awarded to the plaintiff. They also asked for reimbursement of reasonable attorneys fees and any other compensation deemed appropriate by the court.
