Churchill Mortgage and an ex-manager are sparring in a poaching case with accusations of unpaid severance, stolen customers, claims the lender is broke, and ChatGPT espionage.
The company sued Jeffrey Miller last summer, claiming the laid-off manager used internal compensation and performance data to lure his former colleagues to his new employer Supreme Lending. Miller, who left Churchill last May, solicited at least six workers to Supreme "as a way to inflict maximum harm against his former employer," according to the original complaint.
The former vice president of the Northwest region also allegedly told Churchill workers that the lender was out of money, or that its employee stock ownership plan was experiencing difficulties. The Tennessee-based retail lender last year
A judge issued a preliminary injunction for Miller last year to halt his alleged conduct. The sides have traded more punches since, including MIller claiming that Churchill owes him $92,805 in severance. Churchill also recently accused Miller of violating the injunction.
U.S. District Judge Aleta A. Trauger ordered the sides this week to schedule a mediation. Her order also put the most recent filings, including competing requests to hold the other party in contempt, in abeyance.
Attorneys for both parties declined to comment.
Supreme, which has faced
How the case started
Miller managed over 60 employees across 22 branches at Churchill, and was subject to non-solicitation and trade secrets agreements, according to the complaint. After he was allegedly terminated for performance and a company reorganization, the manager began to contact his former coworkers via text messages and met with them over lunches and drinks.
In one instance, Miller allegedly told two workers they were the lowest-paid processors at Churchill, and that another processor made $150,000 the year prior. In suggesting financial troubles at Churchill, the defendant also claimed the lender was up for sale. Employees told management of Miller's solicitation attempts.
The lender quickly secured a preliminary injunction against Miller last July, searching his electronic messages. His non-solicitation agreement was set to run through May 21, 2026.
Judge turns down the heat
Attorneys for Churchill last month accused Miller of violating the injunction as his new colleague, a past close associate, was soliciting more workers. Additionally, they claim Miller was helping a Churchill originator divert construction deals to Supreme.
A review of Miller's text messages also showed he was instructing that loan officer how to steal confidential information without detection, including suggesting not to run reports in Encompass, attorneys wrote.
"He directed her to photograph data and use ChatGPT to convert images into spreadsheets and contacts," they said in a filing last week.
That originator joined Supreme, but later used a former Churchill closing disclosure in a recent transaction and spooked a borrower, according to case filings.
Churchill recently asked the court to add the LO as a defendant, while the sides both accused each other of contempt over the proceedings. The judge set aside the latest filings, which included the ChatGPT claim, in calling for mediation.
A date for the meeting has not yet been scheduled.
Miller's employer, Supreme, settled a poaching lawsuit last year with Movement Mortgage. The competitor accused its former executive and other top performers of taking confidential company data to the rival.
