When a top executive leaves a company, it is not uncommon, if the departure is amicable, for the executive to agree to stick around in some capacity to help their replacement get up to speed. In exchange, the executive typically gets some kind of compensation.
When David Knill resigned last year as chief financial officer of Nashotah-based plastics manufacturer
Techniplas, he offered to help the company manage the transition to a new CFO and maintain consistency of reporting as it emerged from the bankruptcy process.
In exchange, Techniplas would continue to make the monthly lease payments on a 2019 Audi A7 the company provided Knill with for his personal use during his time as CFO. According to court documents, Techniplas would purchase the car at the end of 2020 and put it in Knill’s name if he provided the promised assistance.
However, it appears things did not go according to plan.
Knill, who had been with the company since 2015, submitted his resignation in June with his last day set for July 15.
Techniplas says, in a lawsuit filed in November, that an internal communication error at the company led to the vehicle purchase taking place on July 30 instead of Dec. 31. The 2019 Audi had around 32,000 miles on it when Techniplas paid almost $67,000 for it and put it in Knill’s name.
The lawsuit, initially filed in Waukesha County Circuit Court but removed to the U.S. District Court for Eastern Wisconsin this week by Knill, alleges that the former CFO did not help with the transition as promised.
Instead, the complaint says Knill used the time during the transition period to convince Techniplas’ consolidations manager, Chris Mieska, to join him at his new job as CFO of Neenah Enterprises.
“Knill knew Mieska was a highly valuable employee, essential to the ability of Techniplas to transition through bankruptcy and emerge from bankruptcy to return to operational success,” the complaint says.
Techniplas
filed for Chapter 11 bankruptcy in May after an investment by a private equity firm was derailed by the emergence of the COVID-19 pandemic. The company was
eventually sold to a group that included several of its existing investors.
The complaint says Knill’s alleged efforts to recruit Mieska were a “blatant breach” of his agreement to help the company. When Techniplas chief executive officer Ali El-Haj learned about those efforts, he demanded the return of the company vehicle on Sept. 23.
As of the November filing of the lawsuit, Knill had “steadfastly refused to comply,” with the demand, the complaint says.
Attorneys for both sides of the case did not return requests for comments.
Techniplas is alleging breach of contract and is seeking a monetary judgment for an amount to be proven at trial.
Knill is seeking to move the case to federal court, contending the controversy involves more than $75,000 and that there is diversity of citizenship since he lives in Michigan while Techniplas is based in Wisconsin.
