The $18.6 million Wallingford Municipal Federal Credit Union has appealed a statecourt decision to award Naomi Odell more than $200,505 after thejudge ruled that the Wallingford, Conn., cooperative committed“statutory theft” in seizing the woman's $13,801 Social Securitydisability benefit and using it to repay a loan her husbanddefaulted loan.

After a three-year court battle, Connecticut Superior CourtJudge Robin L. Wilson in a 72-page ruling released Aug. 8 said thecredit union's move against Odell's benefits were illegal becauseSocial Security is exempt from debt collection

Wallingford Municipal's FCU's attorney, Michael T. McCormack ofHartford, Conn., filed a document in Connecticut's Appellate CourtTuesday that lists nine issues, claiming that the judge made“reversible errors” that were made by the state judge.

In at least two of the issues listed on the court document,Wallingford Municipal FCU's appeal argues that Judge Wilson made anerror in ruling against the cooperative from exercising its “rightof setoff funds” that allowed the credit union to use Odell'sSocial Security money to repay the loan.

The credit union also is asking the state appellate court toreverse the lower court's decision that awarded Odell $62,846 inthe statutory theft claim, the $41,403 in punitive damages and the$96,255 in attorney fees and costs.

A hearing before the Connecticut Appellate Court has not yetbeen scheduled.

“It seems like a misallocation of resources to devote so muchmoney to keep a small Social Security disability check,” Odell'sattorney, Joanne Faulkner of New Haven, said in reaction to thecredit union's appeal.

In 2005 Odell's husband, Nicholas, secured a loan fromWallingford Municipal FCU. Naomi, who was working at the creditunion, co-signed for the loan. Nicholas, however, later defaultedon the loan and the credit union successfully sued him for the$18,433 outstanding loan balance, according to court documents.

Odell was fired by the credit union in April 2007 after she hadbeen diagnosed with multiple sclerosis, according to courtdocuments and her lawyer. According to Faulkner, a doctor saidOdell would not be able to work full-time, so she lost herfull-time position.

In May 2007, Odell applied for Social Security disabilitybenefits. When she applied for those benefits, she provided heraccount information with Wallingford Municipal FCU because it wasthe only bank account she had at the time.

About a year later, Odell's Social Security benefits wereapproved and expected to receive a lump sum payment of $13,801,plus $1,300 a month.

Concerned that the Social Security funds would be sent to thecredit union, Odell contacted Manager/President Richard T.Cassello, asking him to return the funds to the Social SecurityAdministration. Odell had opened an account at another bank.

Odell informed Cassello that the Social Security funds wereexempt from debt collection. What's more, she also said that shewas going to lose her home to foreclosure and needed the money.

The credit union received Odell's Social Security paymentbenefit on June 2, 2008. Even though Odell's checking accounthad been closed, she still had a share account. The funds weredeposited in that account.

Odell has lost her home to foreclosure and lives in an apartmentin Middletown with her husband who also is also unable to work,according to her attorney.