Trey Falwell sues Liberty for $1.75M

Liberty University is once again facing legal action from a member of the Falwell family.

Jerry “Trey” Falwell III, the son of former Liberty President and Chancellor Jerry Falwell Jr. and grandson of the private Christian university’s late founder, is suing the school for $1.75 million. He alleges that Liberty breached his employment contract by failing to pay salary and benefits he says he was owed after the university terminated him in 2021. The lawsuit was filed April 10 at Lynchburg Circuit Court.

The lawsuit comes about two years after Liberty and Falwell Jr. settled three lawsuits following Falwell’s 2020 resignation amid a sex scandal involving his wife and a former pool boy.

According to the complaint, Trey Falwell graduated from Liberty in 2011 and joined the university as a full-time employee in 2013.

In 2015, he entered into a contract to work as an assistant to the president, with the agreement giving him a starting salary of $88,000, as well as annual raises, health insurance, an automobile allowance of $600 per month and tuition for him and his immediate family members. The agreement allegedly began on July 1, 2015, and was not originally scheduled to expire until June 30, 2030.

The lawsuit says Trey Falwell was promoted to vice president of operations in January 2017 and that his salary was later increased to $220,000 annually. Then-Chief Operating Officer Randy Smith allegedly emailed human resources, saying the salary increase was to bring Falwell’s compensation “more in line with other senior executives.”

The complaint says Trey Falwell continued to work at Liberty after his father’s resignation in August 2020, working alongside the then-acting president, Jerry Prevo. In response to the circumstances precipitating Falwell Jr.’s resignation, Liberty launched an independent investigation, and in December 2020, Trey Falwell voluntarily participated in an interview to assist, according to the lawsuit. He claims the investigation did not uncover any wrongdoing on his part.

However, in April 2021, Politico reported that Jerry Falwell Jr. appeared to be reasserting his presence at Liberty University less than a year after resigning, which some in the Liberty community speculated was part of an attempted comeback to leadership. The article noted factions on Liberty’s board that were still sympathetic to Falwell and cited Trey as one of Falwell Jr.’s allies within Liberty.

“The article implied that Jerry Jr. was still a major figure at Liberty and that he was still effectively running things,” Trey Falwell’s complaint said. “In doing so, the article drew press attention to the fact [the] plaintiff was still employed with Liberty.”

The complaint alleges that on April 12, 2021, Liberty terminated Trey Falwell’s employment without cause and that Prevo had security escort him from campus.

“Liberty has taken the position that at the time of his termination, plaintiff was an at-will employee and that the employment contract did not govern his employment,” the complaint says. “Liberty, consistent with its position that the employment contract was void, did not act in accordance with the agreement.”

Jerry Falwell Jr.’s departure came after his relationship with the university deteriorated amid a sex scandal involving his wife, Becki Falwell, and Giancarlo Granda, a former Miami hotel pool attendant and business partner of the Falwell family.

Granda alleged he had a years-long sexual relationship with Becki Falwell, with Falwell Jr.’s knowledge, and that Falwell Jr. had sometimes watched the two have sex. Falwell Jr. acknowledged that his wife had an affair with Granda, but denied participating in any way, including watching the two have sex.

Becki and Jerry Falwell Jr. and Granda also were involved in a business partnership in which Granda ran a Miami Beach hostel that was in the name of Trey Falwell, although his parents financially backed the property’s purchase.

According to the complaint, the employment agreement allowed Liberty to terminate Trey Falwell “for cause” upon written notice. The agreement defines cause as significant misconduct, including refusal to follow lawful directives, unethical or fraudulent conduct, or serious criminal acts.

However, Falwell alleges Liberty never provided a reason for his termination. Instead, the lawsuit says he was terminated during an in-person meeting and was not given written notice explaining the decision.

Citing the employment agreement, the complaint says that if Liberty terminated Falwell without cause, the university was required to continue providing his salary, health insurance and retirement benefits for the remainder of the contract term through 2030.

“At all relevant times, Liberty has had actual knowledge that it owes Plaintiff these amounts but has deliberately and recklessly ignored its obligation to pay Plaintiff,” the complaint said.

The lawsuit alleges that Liberty breached the employment contract and violated the Virginia Wage Payment Act, and Trey Falwell claims to have incurred at least $1.75 million in damages. Falwell also believes he is entitled to recover attorneys’ fees and costs incurred in connection with the case.

Falwell is demanding a jury trial.

Neither Liberty nor Falwell’s attorney, Courtney Moates Paulk of Hirschler, immediately returned requests for comment.