Judge Approves Settlement Ending Four Years of Litigation Over Mabel Amos Scholarship Trust

MONTGOMERY, Ala. — A judge has approved a settlement ending four years of litigation over the Mabel Amos Memorial Fund, a scholarship trust, according to the court’s order.

Fiduciaries Released From Liability

Under the order, “The Trust fiduciaries, including Regions Bank, John Bell, Drew McNees, and Thomas Albritton, will be absolved and held harmless from all liability, known or later discovered, that resulted from, or arose out of, their administration of the Trust from the date of its inception in 2002 to the date of the Final Order.” Albritton is the director of the Alabama Ethics Commission.

Petitioners’ Proposal

Petitioners Carmack, Manning and Lindsey had proposed that the defendants, Regions, Albritton, Bell and McNees, who replaced Bell as Regions’ representative in 2020, pay $1.325 million back to the fund. The petitioners said that amount would make the fund whole for money they said was improperly distributed to individuals and institutions, and would account for fees they believe Regions overcharged the fund. The proposal did not specify how the repayment would be divided among the defendants.

The petitioners’ proposal also called for the defendants to pay $300,000 in attorneys’ fees for the plaintiffs and would have allowed Regions to remain as trustee if it adjusted its fee calculations.

The Court’s Reasoning

“The Court has carefully reviewed the parties’ positions as well as the audit report of the Special Fiduciary. The Court has considered facts and arguments proffered by counsel, and the cost of further discovery in this case if this case is to proceed to a trial. The Court concludes that ending this litigation pursuant to a settlement would best serve the interests of the Trust and its beneficiaries and the interest of justice,” Judge Griffin wrote in the order.

“This litigation has been pending for four years. Litigation costs incurred by the parties and the expending of judicial resources have been extensive. Finally, the cost to the Trust for the work performed by the Special Fiduciary, although necessary and reasonable, has drained the Trust of such assets that could have been used to award scholarships to deserving students within the State. The Trust needs to return to its normal administration,” the order states.

Reaction

Byron Mathews, an attorney representing petitioner Tyra Lindsey, said the petitioners believe the decision was fair and equitable.

“Settlements always involve compromises, and the judge did his best to balance the equities of the various positions by the parties,” Mathews said. “This litigation needs to end, and the Trust returns to its normal administration. We hope that Regions Bank and the other fiduciaries agree.”

Special Fiduciary’s Report

A report by the special fiduciary in the civil case stated that board members engaged in self-dealing by awarding scholarships to relatives and friends. The list of scholarship recipients, which had not been publicly available for the previous 12 years, included many prominent Andalusia residents. The settlement order releases the fiduciaries from liability, and no court has found them liable.