Jerry "Trey" Falwell III has filed a lawsuit against Liberty University in the Circuit Court for the City of Lynchburg, Virginia, seeking $1.75 million in damages.
The suit alleges the university breached his 15-year employment contract.
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Falwell was terminated in April 2021, roughly ten months after his father, former university president Jerry Falwell Jr., resigned amid a personal scandal.
According to court documents, Falwell entered a personal services agreement in January 2016 that guaranteed his salary, annual 5% raises, and benefits through June 2030 unless terminated for cause.
His initial salary of $88,000 grew to $220,000 by 2017.
The lawsuit claims that university administrators terminated his employment during an in-person meeting without providing any written explanation or prior notice, later asserting he was an at-will employee.
The complaint details specific financial obligations the institution allegedly failed to honor after his dismissal. "Defendant has refused to pay these amounts to Plaintiff," the suit alleges.
"This refusal constitutes a breach of Plaintiff's employment agreement and a violation of the Virginia Wage Payment Act."
Falwell's legal team notes that the university has not formalized the termination in writing since the initial meeting.
"At the time of his termination, Liberty did not provide Plaintiff with a reason for his termination," the lawsuit claims.
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"Since his termination, Liberty has not provided Plaintiff with any written notice of his termination or any alleged cause for his termination."
The filings contend that the sudden separation triggered immediate financial protections embedded within the long-term contract.
"When Defendant terminated Plaintiff's employment in April 2021, he immediately became contractually entitled to continued payments of his then-current salary and other amounts, totaling $1,750,000," the complaint alleges.
Liberty University has rejected the claims and expressed its intent to challenge the legal action.
"Liberty University disputes the allegations about Trey Falwell's termination without cause and that he is entitled to compensation," a university spokesperson stated.
"The lawsuit is without merit, and the University will vigorously defend this case."
The ongoing litigation follows a confidential 2024 settlement between Liberty University and Jerry Falwell Jr., which resolved prior mutual lawsuits concerning retirement benefits, defamation, and breach of contract.
An independent analysis revealed that the university agreed to pay Falwell Jr. approximately $5.5 million for litigation settlement alongside a $9.7 million retirement package, while Falwell Jr. returned $440,000 for disputed expenses.
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The university continues operations under Chancellor Jonathan Falwell, reporting a fiscal year 2024 surplus of $345 million and total assets of $4.3 billion.
