Grady EMC attorneys file emergency motion to prevent release of bank information

Attorneys representing Grady Electric Membership Corporation, its board of directors as well as its current and former general managers, went to court last week in attempt to keep confidential information sought by plaintiffs who filed suit against the EMC last October.
An emergency motion to stay discovery was filed in Grady Superior Court last Thursday afternoon by attorneys representing the defendants in the case including Dewey Brock Jr., Caylor Outzs, Lamar Carlton, James Freeman, Lamar Strickland, Robert E. Lee, James Lewis, Thomas A. Rosser Sr., and Thomas A. Rosser Jr.
The emergency motion also seeks to protect United National Bank from releasing information requested of the bank by attorney’s for the plaintiffs.
United National Bank faced a deadline of June 1 to comply with the plaintiffs’ request for production of documents, according to court documents.
In the emergency motion filed last week, the defendants request Judge Loring Gray to rule on the motion to dismiss filed by the defendants’ legal counsel.
The defendants filed a motion in January seeking the appointment by the court of an independent litigation review committee to investigate the claims of the plaintiffs to determine whether it is in Grady EMC’s best interest for the claims to proceed.
Lawyers for the defendants claim that under Georgia law, the court may dismiss a derivative action proceeding if a panel of one or more independent examiners makes a good faith determination that “the maintenance of the derivative suit is not in the best interests of the corporation.”
The defendants also question the form of the complaint and issues of statute of limitations.
As of Tuesday, Judge Gray had not issued a ruling on any of the motions filed by the defendants.
Neither the attorneys for the plaintiffs nor the plaintiffs would discuss what information has been requested of the EMC or United National Bank.
When contacted this week by The Messenger, current EMC General Manager Thomas A. (Bo) Rosser Jr., stated, “As you know, this matter is in litigation and all of your questions relate to the pending litigation. Because the case is now in court, we have no comment.”
Plaintiffs Gordon Clyatt, Ronald Sellars, C. Seaborn Roddenbery, Jerome J. Ellis and Roy Brock are suing the EMC over the way it retains capital credits, then only disburses them to deceased members, and for business decisions made including using EMC funds to purchase stock in United National Bank and then selling the stock to Thomas A. Rosser Sr., while financing the purchase with a loan from the co-op, among other things.
Valdosta attorneys George T. Talley and Edward F. Preston are representing the plaintiffs in the suit.
According to court documents filed previously, the defendants admit that Thomas A. Rosser Sr., was a founding director of United National Bank prior to Grady EMC’s purchase of United National Bank stock. They also admit that the EMC sold Rosser Sr. the stock in 2004 and that he failed to make scheduled payments on the loan the EMC gave him to purchase the stock.
However, the defendants do not admit to declaring Rosser in default. They also admit they increased Rosser Sr.’s pay over the life of the loan.
Defendants also admit that Rosser Sr., kept his personal cars in Grady EMC’s heated shop from “time to time.” They also admit that EMC mechanics serviced and repaired his cars with parts paid for by Rosser Sr.
In the court documents, the defendants admit to spending $3.8 million on renovations of the EMC headquarters in Cairo, but they deny allegations of graft.
Defendants deny the directors and officers of Grady EMC have personally and unjustly enriched themselves as claimed by the plaintiffs.
Rosser Sr., is being represented in this matter by Greg Michell of Stanley, Esrey & Buckley of Atlanta. Other attorneys for the defendants include Hugh B. McNatt of Vidalia; T. Joshua, R. Archer, M. Anne Kaufold-Wiggins, and Matthew B. Ames of Balch & Bingham of Atlanta; M. Clair Chason of the Chason Law Firm in Cairo; V. Gail Lane of Altman & Lane in Thomasville; and Thomas Conger of Bainbridge.