Campbell Guin Obtains Historic Ruling Allowing Credit Union Members to Bring Derivative Suits
Campbell Guin attorneys Andy Campbell and John Guin represent Jerry Logan in a pending derivative action filed on behalf of Alabama One Credit Union. The lawsuit seeks damages from certain former officers and directors of Alabama One.
The lawsuit alleges these formers officers and directors improperly managed the credit union by, among other things, scheming to provide financing on favorable terms to Danny Ray Butler, a Tuscaloosa used-car salesman. Alabama One lost millions of dollars regarding the imprudent loans it made to Butler and related individuals and entities.
The Defendants moved to dismiss the case, arguing that credit union members lack standing to pursue derivative claims on behalf of the credit union. After extensive briefing and oral argument, the Tuscaloosa County Circuit Court denied the motions to dismiss. This ruling is the first time an Alabama court has recognized the derivative rights of credit unions members. Those members now know they can bring suit to redress mismanagement by credit union officers and directors.
Campbell Guin continues to represent Logan and fight vigorously to make the Defendants pay for the multi-million dollar losses they caused to Alabama One.