Alabama One Must Show Cause in Suit
Alabama One Credit Union has until Thursday to show cause as to why its complaint should not be dismissed in regard to at least one of the three defendants named in it.
David Byrne, chief legal advisor for Alabama Governor Robert Bentley, was the latest to file a motion to dismiss the complaint. Alabama Credit Union Administration Administrator Sarah Moore and former interim Alabama One president/CEO Doug Key also filed motions to dismiss.
The $600 million, Tuscaloosa, Ala.-based Alabama One and its president/CEO John Dee Carruth filed a federal lawsuit after discovering dozens of emails written by Alabama attorney Justice D. “Jay” Smyth III. The credit union alleged the emails proved state officials and Smyth conspired to oust Carruth and three other employees with the intention of forcing the credit union to settle millions of dollars in civil suits filed against the financial institution by Smyth’s clients. Smyth has denied the claims.
In Byrne’s motion, filed on Aug. 21, he asked the court for a dismissal, stating that the plaintiff “failed to state any claim upon which relief can be granted,” that he is immune to the claims, and that the law “shields Byrne from even having to go through the indignities and distractions that discovery would entail.”
Byrne also called the claims irresponsible, adding that two disgruntled plaintiffs, “having been found by the Alabama Credit Union Administration to have committed serious violations of state law, have launched an attack.”
Moore filed a motion to dismiss the complaint on Aug. 12 on the grounds that the plaintiff failed to state a claim against her upon which relief can be granted, and that “no construction of the factual allegations will support the cause of action.” Her motion continued to state that the claims are barred by the doctrine of absolute immunity.
“In the caption of this proceeding, plaintiffs purport to sue Moore as ‘an individual,’ plainly for the purpose of short circuiting Moore’s immunity from their claims; however, each allegation against Moore is in fact pleaded in her official capacity as an executive officer of the State of Alabama,” her dismissal motion read. The motion also said Moore’s actions against Alabama One were made based on her findings of wrongdoing at the financial institution in her official capacity, and that she is now being retaliated against.
Key, president/CEO of the $140 million Mutual Savings in Hoover, Ala., an Alabama One competitor, was chosen to fill in during Carruth’s short suspension in 2014. Key filed a motion to dismiss the complaint on July 28 on the grounds that after Carruth and his colleagues had their suspensions revoked, they signed a waiver releasing the ACUA, the acting chief executive officer of Alabama One (Key), all employees and officials of the State of Alabama, and their attorneys from every claim and liability related to the suspensions.