Former Daleville chamber director sued for breach of contract, misuse of $15,000-plus in funds

A breach of contract lawsuit was filed by the Daleville Chamber of Commerce against its former executive director Oct. 30 in Dale County Circuit Court.

The suit seeks recovery of  $10,800.60, including interest and court costs, from Deanna Carmichael of Enterprise. Carmichael was employed as the executive director of the chamber from Feb. 1, 2014 until Oct. 9, 2015.

The breach of contract complaint states the defendant “had an absolute duty to perform as fiduciary and this absolute duty has not been discharged” and that such action led to “a material breach of contract.”

According to the suit and Chamber President Stephen Drown, who filed the complaint, discrepancies in the chamber financial records and/or banking records were discovered in early June 2015 indicating intentional and improper usage of a chamber-supplied credit or debit card used by Carmichael. Further investigation by Drown and other chamber board members determined that chamber credit/debit cards had been used for personal use beginning “on or about Aug. 18, 2014 and continuing through Oct. 21, 2015.”

The suit states that Carmichael, “obligated the chamber for payment of unauthorized charges and/or purchases totaling $15,304.58,” and that said obligations for payment were “made soley for her personal use only and not for chamber business.”

Drown said that Carmichael was confronted, as the suit also states, and she fully admitted her “misrepresentation and deception.” She did, at that time, he said, repay the chamber $5,463.89.

The legal complaint states, “that defendant has been unwilling or unable to repay plaintiffs any further reimbursement for monetary losses incurred by her misrepresentation and deception” and the chamber demands judgment against Carmichael for the sum of $9,849.69, an amount representing non-reimbursed compensatory damages, plus interest and costs of the legal action.

Drown and Board Treasurer Nancy Garner said they felt somewhat responsible because they had not checked the records more closely. They also said the Chamber chose not to pursue criminal charges since Carmichael admitted to the theft, agreeing to repay the monies and because doing the civil action route would cost everyone involved less money and recover the Chamber’s funds quicker.

Since the Oct. 30 complaint was filed, the parties have appeared before Dale County Circuit Court Judge Kimberly Clark. A judgment of consent was signed Nov. 2, 2015 by Drown, Carmichael and the judge.

The consent judgment states, that Drown, Carmichael—via their attorneys— agreed to the entry of the consent judgment “without trial or adjudication of any issue of fact or law, as evidence by their signature.” It goes on to say, “This consent judgment shall be no evidence or admission by any party with respect to any issue of fact or law. Therefore, before any testimony is taken, and without trial or adjudication of any fact or law, and upon consent of the parties, it is hereby ordered, adjudged and adjudicated” that judgment is rendered in favor of the plaintiff and against defendant for the sum of $9,840.60 principal,” plus future interest accruing at a rate of 8 percent per annum, as allowed by law. The judgment also assigns all court and attorney fees associated with the case be borne soley by the defendant. Court costs include $260 for court fees and plaintiff litigation fees of $700, making a grand total of 10,800.60 still owed to the Chamber.

A payment agreement was approved for in the consent judgment. Carmichael will be allowed to make payments monthly, beginning Nov. 15 in the amount of $225. Should she be more than three days late with payment or not make a payment, the chamber will garnish any wages to recover the money.

A message sent to Carmichael was unanswered.