Ex-Energy Chief Sues AIG For Breach Of Contract

11-14-2003 | Source: Power Finance & Risk

Robert Feilbogen, former co-head of Greenwich, Conn.-based AIG Trading's AIG Energy unit, has filed a lawsuit against the firm for breach of contract. The lawsuit, which was filed with the U.S. District Court of the District of Connecticut, claims AIG terminated Feilbogen's employment contract in July and that the firm failed to honor a guarantee to pay a bonus of $1.3 million, which Feilbogen claims had been promised for this year. In the lawsuit, a copy of which was obtained by PFR sister publication Derivatives Week, Feilbogen is seeking lost remuneration in addition to legal costs.

Anne Vladeck, attorney at Vladeck, Waldman, Elias & Engelhard in New York, which is representing Feilbogen, declined to comment further than what is stated in the suit. Feilbogen could not be reached for comment. Joe Norton, spokesman at AIG Trading's parent, American International Group, in New York, declined comment.

The dispute follows AIG's decision early this summer to merge AIG Trading with AIG Financial Products (PFR, 6/2). The lawsuit claims Marty Wayne, managing director at AIG FP, sent Feilbogen a letter in June informing him that his employment was moving to AIG FP, and that he would work as a managing director, reporting to Wayne. In the letter Feilbogen was promised a base salary of $250,000 and told he would be eligible for additional discretionary compensation, it added.

The lawsuit continues that the letter also stated that it "superseded all prior discussions, agreements and understandings of any kind and nature between [Feilbogen] and AIG-TG or AIG-FP regarding the terms of [his] employment." Wayne was on vacation last week and could not be reached for comment.

Feilbogen then wrote to Joseph Cassano, president of AIG FP, stating that he would sign the letter if the "superceded" quote were removed and AIG agreed to honor the previously promised $1.3 million bonus for 2003, according to the lawsuit. It said that Cassano replied on July 9 that Feilbogen could choose to sign the letter as written, or resign from his post. Feilbogen did not sign the letter and was informed by Douglas Poling, general counsel at AIG FP, on the same day that his employment with the firm had been terminated "as a result of his decision to resign."

Poling did not return calls.