Trey Falwell files $1.75M lawsuit against Liberty University, claims breach of contract
Trey Falwell has filed a lawsuit against Liberty University, the Virginia-based Evangelical Christian higher education institution that his grandfather, the Rev. Jerry Falwell, founded, claiming breach of contract.
In a lawsuit filed with the Circuit Court for the City of Lynchburg in April, Trey Falwell accused Liberty of breaching his contract when it dismissed him in 2021. Months earlier, his father, Jerry Falwell Jr., resigned as president and chancellor of Liberty following a highly-publicized sex scandal regarding his wife and former pool boy.
According to the complaint, when Trey Falwell’s employment with Liberty was terminated, he “immediately became contractually entitled to continued payments of his then-current salary and other amounts, totaling $1,750,000.”
“Defendant has refused to pay these amounts to Plaintiff,” alleges the suit. “This refusal constitutes a breach of Plaintiff's employment agreement and a violation of the Virginia Wage Payment Act. Plaintiff is entitled to compensatory damages, liquidated damages, and reimbursement of his attorneys' fees and costs.”
The filing alleges that Liberty terminated Trey Falwell's employment in an "in-person meeting, without providing him any written notification," and the school has taken the position that he was an "at-will employee" at the time of his termination.
"At the time of his termination, Liberty did not provide Plaintiff with a reason for
his termination," the lawsuit claims. "Since his termination, Liberty has not provided Plaintiff with any written notice of his termination or any alleged cause for his termination."
The university has denied any wrongdoing, with a spokesperson telling The Christian Post on Tuesday that it intends to fight the lawsuit.
"Liberty University disputes the allegations about Trey Falwell’s termination without cause and that he is entitled to compensation," the university spokesperson stated. "The lawsuit is without merit, and the University will vigorously defend this case. It will state its position in filings with the court."
In late 2020, Jerry Falwell Jr. sued Liberty leadership, alleging that they had accepted inaccurate claims against his moral character without proper research and forced him to resign. Months later, in April 2021, his son, Trey Falwell, who had worked at the university for years while his father served as president, had his employment terminated by school leaders.
In July 2024, Falwell Jr. and the university reached a resolution agreement "settling all outstanding disputes on both legal and personal matters.”
“This agreement is grounded in a firm commitment to protecting and preserving Liberty’s original mission of developing Christ-centered men and women with the values, knowledge, and skills essential to impact the world,” they stated at the time.
“It is based on a mutual understanding regarding the amount Liberty University will pay its former president in authorized retirement and severance under the various disputed agreements and in keeping with the law; and the conditions under which the University will make use of Dr. Jerry Falwell Sr.’s name, image, and likeness.”
Although the details of the settlement had remained confidential at the time, a report last year by USA Today found that Liberty would pay Jerry Falwell Jr. around $5.5 million to settle the litigation and approximately $9.7 million for his retirement package, while the former president agreed to pay the university $440,000 to settle "disputed expenses" between him and the academic institution.
