Axed golf course executive wins Howard Hughes Corp. severance

William Langley was facing a court order to reimburse his former employer, Dallas-based Howard Hughes Corp., for $144,000 in legal fees the company spent fighting over whether he was entitled to severance pay after his termination in 2013.

But a ruling last week by the U.S. Court of Appeals for the Fifth Circuit not only wiped out Langley’s obligation to pay the legal bills of the company, but also awarded him $255,000 in severance pay.

Langley was vice president of club operations for The Woodlands Operating Co., a unit of the Howard Hughes Corp. company, which oversees the management of the Club at Carlton Woods. When he was let go, he submitted a claim for $255,000 in severance benefits, citing the company’s benefit plan and formula for termination pay.

The plan administrator — the director of human resources for Howard Hughes Corp. — rejected Langley’s request, saying he was not an “employee” as defined by the plan, according to court documents.

The company contended that Langley was compensated by special fees, according to court records. Six years earlier Langley received a 1 percent commission when another club he managed, The Woodlands County Club, was sold for $34 million, court records show.

Langley sued for severance benefits, and U.S. District Judge Lynn Hughes agreed he was not eligible. Hughes also ruled Langley must pay Howard Hughes Corp.’s $144,000 legal tab.

Langley can afford it, Hughes wrote in his opinion last year, noting the county club manager earned more than $200,000 a year since 2006 plus an annual performance bonus. Awarding of attorney fees would also deter others, Hughes said, who know they don’t qualify for benefits yet pursue lawsuits anyway.

The Fifth Circuit reversed Hughes’ ruling, saying the company administrator’s interpretation of the severance plan was an abuse of discretion because it directly contradicted the plain meaning of the plan’s language.

The plan did not bar Langley, an ordinary employee compensated by salary and bonus, from receiving severance benefits, the court found. The appeals court also ordered the Howard Hughes Corp. to pay Langley’s legal fees of $19,000.

Howard Hughes Corp. did not return a call for comment.

The company has 30 days to pay unless it appeals to the U.S. Supreme Court, said Mark Oberti, an employment lawyer in Houston who represents Langley. Oberti said it’s been a tough four years.

“I told him, ‘Hang in there, dude,’ ” said Oberti, who said he was “pretty confident” Hughes’ ruling would be eventually reversed.

Langley now manages a private golf club community in Florida.

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