HOUSTON – A former executive for Houston-based Cornerstone Capital Bank capitulated during a Harris County trial and agreed to take nothing on his $140 million demand for payment of frivolous discrimination claims.
Manuel Valdes was terminated in January 2023 for various breaches of his fiduciary duties to Cornerstone. Cornerstone filed a lawsuit to enforce the terms of his employment contract, and the court issued an agreed order enforcing the agreement. But Mr. Valdes then filed a counterclaim alleging discrimination, retaliation, harassment and breach of contract.
The original counterclaim sought more than $140 million and was filed against the bank and company heads Marc and Adam Laird. Finally, once the trial was started, Mr. Valdes agreed to take nothing and walked away.
“We were prepared to show the jury in open court the evidence that led to his firing and to recover damages the bank suffered as a result thereof,” said AZA partner Kevin Leyendecker. “But the fired executive dropped his entire case, and our client walked away happily vindicated of these ridiculous accusations.”
AZA co-founder Joe Ahmad, who represents executives in litigation, noted that many companies would prefer to settle nuisance cases like this, even if they are false. But not the folks at Cornerstone, a premier national provider of residential mortgage finance, loan servicing and consumer, commercial and institutional banking services that prides itself on how it treats its customers and team members. “We were confident in our case and unwilling to settle for anything other than a walk away,” said Mr. Ahmad. “AZA was proud to help the bank fight this to the end.”
Also on the AZA team were partners Kyle Poelker, Kelsi Stayart White and associates Emily Adler and Jarmonique Smith.
The case is Cornerstone Capital Ban SSB v. Manual Valdes in Harris County District Court case number 2023-01256.
AZA, or Ahmad, Zavitsanos & Mensing, is a Houston-based law firm that is home to true courtroom lawyers with a formidable track record in complex commercial litigation, including energy, healthcare, intellectual property and business dispute cases. AZA was recognized again by Chambers USA 2025 as among the best in Texas in commercial law and intellectual property; the firm has been listed by Best Lawyers’ Best Law Firms as one of the country’s best commercial litigation firms for 13 years; has been named Litigation Department of the Year by Texas Lawyer three times; and was previously dubbed a Texas Powerhouse law firm by Law360.