Legal Dispute Over Termination and Contract Breach
A former attorney for the Birmingham Water Works Board (BWWB) has filed a lawsuit against the utility company and several individuals, alleging breach of contract, wrongful termination, and other legal violations. The case centers around Mark Parnell, a licensed attorney in Alabama who had served as the primary legal representative for the BWWB since 1988.
Parnell’s role with the BWWB extended far beyond that of a typical outside counsel. Over his more than three decades of service, he was involved in every major legal issue affecting the utility. His deep institutional knowledge and experience were critical to the organization’s operations and management. According to the lawsuit, Parnell’s contributions were instrumental in ensuring the effective functioning of the BWWB, particularly during periods of leadership changes and organizational restructuring.
The legal dispute appears to have been influenced by significant changes in the governance of the BWWB. In 2017, the board expanded from five to nine members, leading to internal conflicts and controversies. One director was convicted of ethics violations, and the board decided not to renew the employment agreement of Mac Underwood, the General Manager at the time. Underwood’s departure in 2018 resulted in the retirement of several other managers, creating a leadership vacuum across multiple divisions of the water system.
This void led to years of customer and billing problems, according to the lawsuit. In 2021, a new nine-member board was appointed, which inherited an executive team including a General Manager and three Assistant General Managers. However, the lawsuit claims that even under this leadership, the BWWB continued to face operational challenges, culminating in a vote of “no confidence” by employees.
In spring 2024, the board developed a plan to restructure the utility’s operations and improve management. During this period, Parnell played a key role in overseeing the day-to-day affairs of the BWWB. The lawsuit states that without his leadership, the availability of water could have been disrupted for hundreds of thousands of residents in Central Alabama.
In January 2025, a new nine-member board was appointed, consisting of four new directors and five returning members from the previous board. Shortly after, concerns arose about potential structural changes to the BWWB, prompting the board to enter into agreements and authorize employment contracts or amendments. Parnell, as the primary attorney, had represented the BWWB through various transitions and corporate changes.
Following these developments, a Deputy General Manager position was created, and the 2025 Board asked Parnell to take on this role in addition to his position as General Counsel. He accepted and signed his employment agreement on May 6, 2025. The next day, Governor Kay Ivey signed SB 220 into law, altering the composition of the BWWB board to seven members, with most appointed by entities outside of Birmingham.
The lawsuit claims that the January 2025 Board was concerned that future boards might lack the expertise and knowledge necessary to manage the BWWB effectively. Parnell’s institutional knowledge was seen as essential to the utility’s continued operations. However, just days later, the board scheduled an agenda item to “immediately VOID and/or Terminate all contracts with Parnell and Parnell and Thompson.”
On June 2, 2025, the defendants voted to terminate Parnell’s contract and employment with the BWWB. The lawsuit alleges that prior to this decision, Parnell had offered to meet with the board but was ignored. None of the defendants had discussed his agreement with any members of the executive management or the 2025 Board.
Parnell is now seeking compensation for breach of contract, wrongful termination, and other damages. He is asking the court to declare that his agreement with the BWWB is still valid and that he remains employed. Additionally, he seeks back pay, interest, and punitive damages. The lawsuit also claims that the BWWB and regional defendants are estopped from questioning the validity of his agreement.
Those named in the suit include the utility company, Jeffrey Brumlow, Bill Morris, Thomas Hudson Jr., Phillip Wiedmeyer, and David Standridge. Parnell is demanding a jury trial to resolve the matter.
