By THOMAS HARTLEY
Business First

Kathleen Flemming, the ousted president of Waterford Village Bank, has filed a lawsuit charging unlawful termination in 2008.

The suit, filed Feb. 11 in state Supreme Court in Buffalo, seeks unpaid lost income and unspecified punitive damages. Among those named as defendants in the court filings were the bank's chairman, Lisa Wardynski, President and CEO Orrin Tobbe and chief financial officer Kim Destro.

Flemming, who was receiving an annual base salary of $200,000, said in court filings that she is owed at least $400,000 in income.

She claims that she was not paid $60,000 in addition to a sum, not disclosed, that she received for rights to the Waterford Village Bank name, which she owned.

The claim alleges that she was entitled to the extra sum if the bank reached its goal in a capital campaign that began under her tenure last summer.

"Once the bank had the naming rights, it virtually shut down all efforts to attract investors to that capital campaign, including all those made by Ms. Flemming, as set out in the complaint," Roberts said.

"They (the bank) agreed to pay her for it and never have," said Joseph Manna, who with Diane Roberts - both are lawyers with the Lipsitz Green Scime Cambria LLP law firm - represents Flemming.

Manna said Flemming's lawsuit charges that she was a victim of "a retaliatory discharge" when she was dismissed Aug. 13, 2008, one week after reporting a complaint to bank Chairman Lisa Wardynski involving Wardynski's husband.

Flemming alleges in the lawsuit that she was removed as CEO at the board chairman's direction after reporting complaints of sexual harassment allegedly involving some bank employees and committed by Wardynski's husband, Raymond "Skip" Wardynski.

Manna said an employee cannot be legally fired for reporting allegations of illegal behavior.

In her lawsuit, Flemming also accused the defendants of violating terms of a mutual nondisparagement agreement signed Oct. 1, 2008, and making false and slanderous statements about her.

Tobbe said Thursday that although he had seen a copy of the papers, he had not yet been served and would have no comment.

"When I do get served, I will speak to my counsel," he said.

Attempts to reach the other defendants for comment were not successful.

When Flemming's dismissal was announced last August, no reason was given other than that it was implemented by the Clarence bank's board of directors.

Flemming was the founder and driving force behind the commercial bank, which opened in February 2007.

The bank has one office, 8411 Main St., Clarence.