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Hanover Virginia holding company wins nearly $73,000 from SunTrust in lost-check case A small company took on a big bank and won. Yesterday, Omnia Corp. of Mechanicsville Virginia was awarded attorney fees of $72,998. The case involved a missing check for $160,699 that Omnia, the holding company for Glassmasters, deposited nearly two years ago. Glassmasters makes stained-glass products. SunTrust Banks Inc. was hit with the missing money in a jury trial in September and ordered yesterday by the Henrico County Circuit Court to pay attorney fees. Atlanta-based SunTrust Banks was not a party on the check. Nor was it Omnia's bank. But it was in charge of processing the check. And the check got lost in processing. "The whole reason I wanted to stay with this endeavor was to make sure justice was done," said Martha Gibby, chief executive officer of Omnia. "I did it to tell help others, too. If it could happen to me, it could happen to others." Omnia tried to collect $18,411 in interest that the $160,699 would have earned had it been invested in the time it took to take the case to trial. Judge Gary A. Hicks denied that request. He commended both parties on the legal arguments they brought to the table to argue a complex and unprecedented case. According to testimony during the trial, lost checks are not that unusual. Clones of lost checks are typically run back through the system. The clones clear and the customer has no idea there was ever a problem. In this case, the party that wrote the check - The Museum Co. - was about to file for bankruptcy protection. Its accounts were frozen the day the $160,699 clone was rerouted through the system. What's more, The Museum Co. had made two other payments to Omnia that sailed through the system soon after the problem check was deposited. Also unusual in the case was the time it took to reroute the cloned check. Glassmasters deposited the original on Feb. 27, 2003. It was notified of a problem May 13, 2003, long after it had used the money to make payroll and pay bills. Omnia was told then that its account would be debited for the full amount of the check, a big hit for a small company. It took out a loan to cover expenses. Omnia was out not only that amount, but Gibby faced the prospect of losing the case in court and owing even more money. Her attorney, Teddy J. Midkiff of Marvin Alan Rosman & Associates of Richmond, commended her for sticking through the ordeal and taking the case to a jury trial. Carol Hazard is a Staff Writer for the Atlanta-based SunTrust Banks was not a party on the check. Nor was it Omnia's bank. But it was in charge of processing the check. And the check got lost in processing. "The whole reason I wanted to stay with this endeavor was to make sure justice was done," said Martha Gibby, chief executive officer of Omnia. "I did it to tell help others, too. If it could happen to me, it could happen to others." Omnia tried to collect $18,411 in interest that the $160,699 would have earned had it been invested in the time it took to take the case to trial. Judge Gary A. Hicks denied that request. He commended both parties on the legal arguments they brought to the table to argue a complex and unprecedented case. According to testimony during the trial, lost checks are not that unusual. Clones of lost checks are typically run back through the system. The clones clear and the customer has no idea there was ever a problem. In this case, the party that wrote the check - The Museum Co. - was about to file for bankruptcy protection. Its accounts were frozen the day the $160,699 clone was rerouted through the system. What's more, The Museum Co. had made two other payments to Omnia that sailed through the system soon after the problem check was deposited. Also unusual in the case was the time it took to reroute the cloned check. Glassmasters deposited the original on Feb. 27, 2003. It was notified of a problem May 13, 2003, long after it had used the money to make payroll and pay bills. Omnia was told then that its account would be debited for the full amount of the check, a big hit for a small company. It took out a loan to cover expenses. Omnia was out not only that amount, but Gibby faced the prospect of losing the case in court and owing even more money. Her attorney, Teddy J. Midkiff of Marvin Alan Rosman & Associates of Richmond, commended her for sticking through the ordeal and taking the case to a jury trial. Carol Hazard is a staff writer for the Richmond Times Dispatch. |
