Suntrust Bank v. Angie Denton

CourtCourt of Appeals of Georgia
DecidedJuly 16, 2013
DocketA13A0133
StatusPublished

This text of Suntrust Bank v. Angie Denton (Suntrust Bank v. Angie Denton) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suntrust Bank v. Angie Denton, (Ga. Ct. App. 2013).

Opinion

FIRST DIVISION PHIPPS, C. J., ELLINGTON, P. J., and BRANCH, J.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. http://www.gaappeals.us/rules/

July 16, 2013

In the Court of Appeals of Georgia A13A0132. WYLIE v. DENTON, et al. A13A0133. SUNTRUST BANK v. DENTON, et al.

B RANCH, Judge.

These related appeals arise out of the termination of Angie Denton, Lynette

Kearney, Donna O’Berry, Krystal Sikes, and Terri Smith (collectively “plaintiffs”)

from their employment with SunTrust Bank. After they were fired, the plaintiffs filed

the current action against several defendants, including Samuel Wylie, their supervisor

at SunTrust, and the bank. Both their original and amended complaints assert claims

against Wylie and SunTrust for violations of the Georgia’s Racketeer Influenced and

Corrupt Organizations Act (RICO)1, conspiracy to violate the Georgia RICO statute,

common law fraud, and defamation. SunTrust filed a motion to dismiss the complaint

1 OCGA § 16-14-1, et seq. in its entirety or, in the alternative, for a more definite statement, asserting that the

facts alleged in the original complaint were insufficient to support the plaintiffs’

claims. The bank also filed a separate motion to dismiss under OCGA § 9-11-12 (b)

(6), on the grounds that the plaintiffs’ RICO and common law fraud claims failed as

a matter of law. Wylie filed a motion to dismiss the complaint in its entirety or, in the

alternative, for a more definite statement. Additionally, he joined SunTrust’s motion

under OCGA § 9-11-12 (b) (6) to dismiss the plaintiffs’ RICO and fraud claims. The

trial court entered a series of orders in which it granted Wylie’s motion for a more

definite statement, 2 denied Wylie’s motion to dismiss the complaint for insufficient

pleadings, denied the parties’ joint motion to dismiss the RICO and fraud claims, , and

denied SunTrust’s motion to dismiss the complaint or, in the alternative, for a more

definite statement. The trial court certified its orders for immediate review, Wylie and

SunTrust each filed an application for an interlocutory appeal, and we granted both

applications. These appeals followed.

In Case No. A13A0132, Wylie appeals from the orders of the trial court

denying his motion to dismiss the complaint in its entirety because of insufficient

2 It was after the entry of this order that the plaintiffs filed their amended complaint.

2 pleadings and denying the joint motion to dismiss plaintiffs’ RICO and common law

fraud claims. In Case No. A13A0133, SunTrust appeals from the orders of the trial

court denying its motion to dismiss the complaint or, in the alternative, for a more

definite statement, and the joint motion to dismiss the RICO and common law fraud

claims asserted by the plaintiffs. For reasons explained below, we find that the

plaintiffs cannot state a claim under the Georgia RICO statute or for common law

fraud. We therefore reverse the orders of the trial court, entered in both Case No.

A13A0132 and Case No. A13A0133, denying Wylie’s and SunTrust’s joint motion

to dismiss those claims. Additionally, in Case No. A13A0132 we vacate the order of

the trial court denying Wylie’s motion to dismiss the plaintiffs’ remaining claim, for

defamation, and remand with direction. And in Case No. A13A0133 we vacate the

order denying SunTrust’s motion to dismiss or, in the alternative, for a more definite

statement of plaintiffs’ defamation claim and remand with direction.

The standard of review for a trial court’s order on a motion to dismiss is de

novo, and “we treat all well-pled material allegations by the nonmovant as true and

all denials by the movant as false. Only if the pleadings and exhibits incorporated into

the pleadings show a complete failure by the plaintiff to state a cause of action, is the

3 defendant entitled to judgment as a matter of law.” (Citation, punctuation and footnote

omitted.) Crosby v. Pittman, 305 Ga. App. 639 (700 SE2d 629) (2010).

According to the complaint, the plaintiffs were all employed as tellers at a

SunTrust branch in Waycross during the relevant time period. They allege that some

time in the mid to late 2000’s, Sandy Ursery, an employee of SunTrust client Clayton

Homes, Inc., began to embezzle money from the Clayton Homes account. Ursery

allegedly accomplished this embezzlement by presenting checks made payable to

fictitious Clayton Homes employees or former employees, who no longer worked for

the company.3 SunTrust cashed the checks without requiring Ursery to present a valid

form of identification for the people to whom the checks were made out.

According to the plaintiffs, when Ursery first began presenting checks made out

to third parties and for whom she could present no valid form of identification, they

refused to cash them. Ursery then contacted Wylie, who directed each of the plaintiffs

“not to question Ursery when she presented checks, but instead to cash the checks for

Ursery as presented without [requiring identification].” The plaintiffs contend that

they periodically questioned Wylie about this practice, and “[h]e consistently and

3 In their original complaint, the plaintiffs alleged that these employees were supposedly illegal, undocumented workers, who lacked the identification necessary to cash their own paychecks.

4 repeatedly told [them] to forget banking practices and laws as they understood them,

and insisted that they continue to cash the checks” presented by Ursery without

requiring proper identification. Additionally, when SunTrust began to impose a $5 fee

for cashing the check of any person who did not maintain a SunTrust account, Wylie

directed the plaintiffs to waive the fee for any Clayton Homes checks made payable

to third parties and presented by Ursery.

Clayton Homes discovered Ursery’s long-term embezzlement in November

2010 and at that time it contacted SunTrust regarding the money stolen by Ursery.

SunTrust then conducted an internal investigation, during which it interviewed each

of the plaintiffs. Following their interviews, each plaintiff was instructed “to comply

with the bank’s written policy [regarding the identification required to cash a check]

going forward, and to talk to no one, including each other,” about the embezzlement.

SunTrust eventually reimbursed Clayton Homes the money Ursery embezzled

from its account, after allegedly securing a confidentiality agreement with the

company. According to the complaint, SunTrust then filed a report with bank

regulators and/or the United States Department of Justice (“DOJ”) that failed to reveal

that SunTrust management had ordered the plaintiffs to cash the checks presented by

Ursery without requiring proper identification.

5 On April 20, 2011, approximately five months after Clayton Homes first

reported Ursery’s embezzlement, the plaintiffs’ employment with SunTrust was

terminated. The reason given for the plaintiffs’ firing was their violations of “bank

policy in the cashing of . . . checks” on the Clayton Homes account.

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