Robinson v. Bank of Heflin, Inc.

540 So. 2d 45, 1988 Ala. LEXIS 101, 1988 WL 21428
CourtSupreme Court of Alabama
DecidedFebruary 26, 1988
Docket85-1462
StatusPublished

This text of 540 So. 2d 45 (Robinson v. Bank of Heflin, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robinson v. Bank of Heflin, Inc., 540 So. 2d 45, 1988 Ala. LEXIS 101, 1988 WL 21428 (Ala. 1988).

Opinion

ADAMS, Justice.

This is an appeal by the defendants, Grover and Dorothy Marie Robinson (hereinafter “the Robinsons”) from a judgment requiring them to pay money on a promissory note executed in favor of the plaintiff, the Bank of Heflin (hereinafter “the bank”). On appeal, the Robinsons argue that the trial court committed error when it admitted certain evidence, when it excluded certain other evidence, and when it charged the jury. We disagree and affirm.

The problems concerning the Robinsons’ bank account and promissory note occurred as a result of embezzlement by one of the bank’s loan officers, William David Robinson (hereinafter “David Robinson”). David Robinson is a former football star who, because of an injury, returned to Heflin in 1972 to work for the Bank of Heflin in the area of public relations and marketing. The bank later trained him as a loan officer, and in 1976 he began making loans.

On August 6, 1982, one of David Robinson’s customers came to the bank to see him. David Robinson was on vacation, so another loan officer helped the customer. Because the loan officer was unfamiliar with the customer’s account, the loan officer checked the customer’s file in order to determine his present indebtedness. The loan officer noticed a discrepancy between [46]*46the file and what the customer said he actually owed. Because of this discrepancy, the bank authorized a special team to investigate the cause of the discrepancy. Prom their search, the investigators discovered that a number of David Robinson’s loans had discrepancies.

On August 9, 1982, the bank confronted David Robinson with its discoveries. He thereupon admitted embezzlement. It was estimated that he had embezzled between $800,000.00 and $450,000.00 from the bank. On August 24, 1982, representatives of the bank met with David Robinson and his attorney in order to determine the loans that were legitimate and the loans that were used to cover his embezzlement. It was at this meeting that David Robinson was first asked about the Robinsons’ account. He told the bank that all of the Robinsons’ notes were legitimate except one note for $1,500.00.

Because the bank was not completely sure of David Robinson’s veracity concerning the accounts, it conducted another meeting with him on September 2, 1982. However, at this meeting he became uncooperative. As a result of his uncoopera-tiveness, the bank conducted another investigation, which took about nine months.

From this investigation, the bank determined that David Robinson had manipulated 70 customers’ accounts in order to embezzle from the bank. During its investigation, the bank talked with each of the 70 customers in order to enlist their help with this matter. Sixty-eight of the 70 cooperated. The Robinsons did not.

Initially, however, Grover Robinson, who was a longtime customer of the bank, cooperated. On August 16,1982, Grover Robinson met with Wendell Gibbs, executive vice-president of the bank. Gibbs showed Grover Robinson his file and then had the investigative team make copies of Grover’s transactions. The bank claims that from the beginning of its meeting with Grover, it informed him that it only expected him to pay what he actually owed. However, the bank stated that because of David Robinson’s unreliability, it was unable to determine exactly the amount that the Robin-sons owed and, therefore, that it needed the Robinsons’ help.

Grover met with Gibbs again on August 26, 1982. Gibbs asked him to inspect all the notes bearing his name and asked if he could verify any of the signatures and if so, whether he had received any money represented by the notes. The bank told him that if he had not received some or all of the proceeds, he could sign an affidavit so stating and then his account would be reduced to the level of his actual indebtedness. However, Grover refused to verify whether he received any proceeds, and he refused to sign the affidavit.

On September 29, 1982, F. Timothy McA-bee, the bank’s counsel, wrote a letter to the Robinsons’ attorney, Ralph E. Coleman, requesting that Coleman furnish to the bank the amount actually owed by the Rob-insons. McAbee wrote three more letters to Coleman requesting this information, and he asked for a meeting between the bank and the Robinsons. Coleman wrote back to McAbee on December 22,1982. On December 28, 1982, McAbee acknowledged receipt of the letter and again asked for a meeting between the bank and the Robin-sons. McAbee wrote another letter to Coleman. On February 17, 1983, McAbee informed Coleman that the bank was unable to conclude its investigation until it met with the Robinsons. On March 10, 1983, McAbee again wrote Coleman, stating the same terms. McAbee wrote another letter on May 17,1983. On June 6,1983, Coleman wrote McAbee and apologized for not setting up a meeting. On October 26, 1983, McAbee wrote Coleman and informed him that the bank was filing suit against the Robinsons unless a meeting could be set up in order to determine the Robinsons’ true debt. Coleman wrote to McAbee on November 7 and 17, 1983, regarding a proposed meeting. On November 29, 1983, McAbee wrote Coleman and informed him that if the Robinsons desired, he would set a meeting in Heflin, Alabama. On January 5, 1984, McAbee wrote Coleman and informed him that the bank was filing suit.

From September 1982 until May 1985, the Robinsons attempted only once to talk [47]*47with someone from the bank. In November 1983, Grover Robinson went to Birmingham to see McAbee; however, he failed to notify McAbee of his plans and the meeting did not take place. Grover Robinson’s last payment on his notes was in July 1982.

The bank filed suit against the Robinsons on June 12, 1984. The case proceeded to trial on May 5-8, 1986. At trial, the bank, through its witnesses, demonstrated a “paper trail” showing how much the Robin-sons owed. The bank first demonstrated that the Robinsons received proceeds from a loan, showing that by deposit tickets evidencing the deposit of the funds in the Robinsons’ account. The bank’s only difficulty was the purported cash outlays from the loan proceeds. Unless Grover Robinson had acknowledged in his deposition that he did in fact receive the money, the bank assumed that David Robinson embezzled the money. From its approach, the bank gave the Robinsons a credit of $16,-000.00 in principal and $4,860.91 in interest paid on their notes. However, because the Robinsons refused to sign an affidavit and to cooperate, the bank asserts, it had to file a protective claim with its bonding company. The bank’s primary witness established that the Robinsons were in default on two notes: one for $24,484.02 and one for $918.67, totaling $25,402.69.

The Robinsons had filed a counterclaim against the bank, alleging a breach of fiduciary duty, damage to their reputation, negligence in the operation of the bank, abuse of process, and wantonness. At the end of the trial and after the trial court had instructed the jury, the jury returned a verdict in favor of the bank in the amount of $25,402.69. The jury also found in favor of the bank on the Robinsons' counterclaim.

I.

The Robinsons argue that the trial court erred when it excluded evidence pertaining to a mortgage executed by the Rob-insons to a third-party bank, Home Federal Savings Bank (hereinafter “Home Federal”). The Robinsons secured a loan from Home Federal in the amount of $40,000.00.

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Bluebook (online)
540 So. 2d 45, 1988 Ala. LEXIS 101, 1988 WL 21428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robinson-v-bank-of-heflin-inc-ala-1988.