Bank, band boosters settle case
The Ironton Band Boosters and Liberty Federal Savings and Loan have reached an out-of-court settlement in the band booster's lawsuit against the financial institution.
The agreement was reached two weeks ago.
"It's not what we had hoped for, but I'm relieved it's done," former Ironton Band Boosters President Jeff Massie said. "We've been fighting for two years. This was better than winning some award in court and then having it tied up in appeals for years, and that was possible, too."
The club filed a lawsuit in June 2002, seeking $13,335. The suit also sought reimbursement for interest and attorney's costs and any punitive damages a jury would choose to give.
Massie did not give specifics about what the settlement entailed.
Liberty Federal Savings and Loan President and CEO Michael Stewart said he did not want to comment on the matter at this time.
Club officials contended that the financial institution allowed Elizabeth Keating, who was at that time the band boosters treasurer, to use club monies and take out loans against club funds when she was not authorized to do so. The band boosters alleged that on or about April 14, 1999, Keating borrowed $10,000 and pledged the band boosters certificate of deposit as security for the loan. Further, Keating took out a $2,500 loan in January of 2000, again pledging the club's CD as security. The suit also alleged that the bank allowed Keating to withdraw $835 from the club's savings account on or about August 24, 2000. The band boosters further contended that Liberty Federal did not have any written, express, or apparent permission on file giving Keating any authority to handle bank accounts and take out loans, except for one forged letter Keating sent to them.
The band boosters have also filed similar lawsuits against Firstar (now U.S. Bank), First Federal Savings Bank (now Classic Bank), and National City Bank.