A former president and CEO of a regional broadband authority has found himself at the center of a legal battle, claiming that a board member’s actions led to his resignation. Frank Marshall Smith, II, filed a complaint against Gary Larrowe in the Circuit Court of the City of Roanoke on September 24, 2024. Smith accused Larrowe, who is also a board member of the Roanoke Valley Broadband Authority (RVBA), of tortiously interfering with his employment contract and retaliating against him under Virginia’s Fraud and Abuse Whistle Blower Protection Act.
The case stems from a fee dispute between RVBA and Botetourt County, where Larrowe serves as County Administrator. According to Smith’s complaint, Botetourt County refused to pay annual participation fees to RVBA and sought reimbursement from the Commonwealth for project-related management fees. This led to tensions between Smith and Larrowe, which escalated when state agencies denied reimbursement claims. Smith alleged that Larrowe reacted angrily and took every opportunity to criticize him publicly. The complaint detailed various derogatory remarks made by Larrowe towards Smith during phone calls in 2021, including threats to implicate him in wrongdoing.
Smith further claimed that Larrowe falsely accused him of mismanaging funds and breaking laws related to transparency. These accusations were allegedly shared with other board members and third parties, damaging Smith’s reputation. Additionally, an online post managed by Botetourt County under Larrowe’s direction implied mismanagement by RVBA during pandemic-related projects. Despite settling the initial fee dispute in June 2022, tensions persisted, leading Smith to resign due to what he described as an “intolerable” work environment.
In response to the lawsuit, Larrowe filed a demurrer arguing that as a board member of RVBA, he could not interfere with his own contract with Smith. He also claimed immunity under Code § 15.2-5431.36 because he was acting within his official capacity as an officer of Botetourt County. The circuit court agreed with Larrowe’s plea in bar of immunity and dismissed Smith’s suit on these grounds.
Smith appealed the decision but faced challenges proving that Larrowe acted outside his scope of authority or violated any laws under FAWPA. The appellate court upheld the circuit court’s ruling based on statutory immunity provided by Virginia law for actions taken within an official capacity while carrying out duties related to broadband services.
Representing Frank Marshall Smith was Thomas E. Strelka from Virginia Employment Law along with L. Leigh Rhoads; Gary Larrowe was represented by Johneal M. White from Glenn Robinson Cathey Skaff & White PLC. The case was presided over by Judge David B. Carson at the Circuit Court level before being reviewed by Judges Malveaux, Athey, and Senior Judge Humphreys at the Court of Appeals under Case ID Record No. 1722-24-3.
Source: 1722243_Smith_II_v_Larrowe_Opinion_Virginia_Court_of_Appeals.pdf