By Lou Phelps, SBJ Staff

Jan 23, 2012 – Chatham County’s Live Oak Library foundation, which helps to raise funds for the library system that serves Chatham, Effingham and Liberty counties,  held the most successful fundraising gala in the 0foundation’s history with more than 320 donors attending a $100-a-ticket buffet and auction evening.

The Live Oak Library foundation’s board held the event at the library system’s newest branch, the Southwest branch at the Savannah Mall, with a heart theme for the Valentine’s Day season of “Roses are READ.”

The event’s co-chairs were Christopher H. “Smitty” Smith, attorney with Thomerson, Macchiaverna & Smith, PC and Brad Harmon of Hunter McLean, both members of the foundation’s Board of Directors.  They have also helped found The Wyeth Society, a group of young professionals in support of the public library system. 

Harmon congratulated the library’s staff and board members for their hard work, particularly Ed Fields who worked with Heather Harmon and the team that gathered the auction items.  Jeff Jepson was chair of the Auction.

Chatham County Commissioner Helen Stone and her mother Helen Lynah were in attendance, along with Russ Abolt and his wife Diane.

The principal sponsors of the events were The Bellwether Foundation, Inc. and Hunter Maclean. , along with a number of generous local companies and individuals who made contributions to the auction.

Christian Kruse is the Library’s Director, and Christy Divine is the Foundation’s Manager.   

The amount raised from the silent auction was not available at press deadline.

Tommy Chu of Bull River Beverage provided the cocktail hour, a long-time supporter of the Foundation.

by Lou Phelps, SBJ Staff

Jan 23, 2012 - As receiver for a failed financial institution, the Federal Deposit Insurance Corporation (FDIC) may sue professionals who played a role in the failure of the institution in order to maximize recoveries. Potential suits are hanging over the heads of a number of Georgia banking execs, with current suits against four in Georgia announced to date. 

But it can take the FDIC years to bring the suits against the bank executives who ran failed banks   So last week, the FDIC issued a report to explain the process of bringing the suits to recover taxpayers money.

These individuals can include officers and directors, attorneys, accountants, appraisers, brokers, or others. Professional liability claims also include direct claims against insurance carriers such as fidelity bond carriers and title insurance companies.

The FDIC Board must approve before actions are brought against directors and officers.

Professional liability suits are only pursued if they are both meritorious and cost-effective. Before seeking recoveries from professionals, the FDIC conducts a thorough investigation into the causes of the failure. Most investigations are completed within 18 months from the time the institution is closed. Prior to filing the claim, staff will attempt to settle with the responsible parties. If a settlement cannot be reached, however, a complaint will be filed, typically in federal court.

In other words, if a ‘settlement’ is reached, the public is not aware that it has taken place.

As receiver, the FDIC has actually has three years to bring a tort claim, and six years for breach-of-contract claims  - a lot of time to file suit from the time a bank is closed. If state law permits a longer time, the state statute of limitations is followed.

Professionals may be sued for either gross or simple negligence. The Supreme Court has ruled that the FDIC may pursue simple negligence claims against directors and officers if state law permits (Atherton v. FDIC). Federal law preempts state law that insulates directors and officers from gross negligence or worse conduct. Bank directors are allowed to exercise business judgment without incurring legal liability.

Not all bank failures result in Director and Officer (D&O) lawsuits. According to the FDIC, it  brought claims against directors and officers in 24 percent of the bank failures between 1985 and 1992.

From 1986 through 2009, the FDIC and Resolution Trust Corporation collected $6.2 billion from professional liability claims. Over that same time, they spent $1.5 billion to fund all professional liability claims and investigations. Early in the process of professional liability claims, expenses will often exceed recoveries due to the costs incurred in handling new investigations. Professional liability program recoveries lag expenses by several years until settlements occur and judgments are awarded.

As of January 18, 2012, the FDIC has authorized suits in connection with 44 failed institutions against 391 individuals for D&O liability with damage claims of at least $7.7 billion. This includes 19 filed D&O lawsuits (2 of which have been dismissed after settlement with the named directors and officers) naming 161 former directors and officers. The FDIC also has authorized 28 other lawsuits for fidelity bond, insurance, attorney malpractice, appraiser malpractice, and RMBS claims. In addition, 189 residential mortgage malpractice and fraud lawsuits are pending, consisting of lawsuits filed and inherited.

                                    Authorized D&O Defendants Damage Claims*   

Authorized in 2009     11        $   366,000,000

Authorized in 2010     98        $2,122,900,000

Authorized in 2011   264        $5,109,920,000

January 2012              18        $     85,800,000

Total                        391        $7,684,000,000

*Losses typically exceed these amounts and may result in higher damage claims in filed lawsuits. Recovery on these claims is dependent upon available recovery sources, such as insurance and personal assets, and competing claims.

Current D&O Suits Filed:

FDIC as Receiver of Integrity Bank of Alpharetta, GA v. Skow, et al., Case No. 1:11-cv-00111-JEC (U.S. District Court for the Northern District of Georgia Filed Jan. 14, 2011).  BANK WAS CLOSED: 

FDIC as Receiver of Haven Trust Bank v. Briscoe, Case No. 1:11-cv-02303-SCJ (U.S. District Court for the Northern District of Georgia Filed Jul. 14, 2011).  BANK WAS CLOSED: 

FDIC as Receiver for Silverton National Bank, N.A. v. Bryan, Case No. 1:11-cv-02790-JEC (U.S. District Court for the Northern District of Georgia Filed Aug. 22, 2011).   BANK WAS CLOSED: 

FDIC as Receiver for Alpha Bank v. Blackwell, Case No. 11-cv-03423 (U.S. District Court for the Northern District of Georgia Filed Oct. 7, 2011).  BANK WAS CLOSED: 

FDIC as Receiver of Corn Belt Bank and Trust Company v. Stark, et al., Case Number 3:11-cv-03060-SEM-BGC (U.S. District Court for the Central District of Illinois Filed Mar. 1, 2011).

FDIC as Receiver of IndyMac Bank, F.S.B. v. Van Dellen, et al., Case No. 2:10-cv-04915-DSF-CW (U.S. District Court for the Central District of California Filed Jul. 2, 2010).

FDIC as Receiver of Heritage Community Bank v. Saphir, et al., Case No. 1:10-cv-07009 (U.S. District Court for the Northern District of Illinois Filed Nov. 1, 2010).

FDIC as Receiver of 1st Centennial Bank v. Appleton, et al., Case No. 2:11-cv-00476-JAK-PLA (U.S. District Court for the Central District of California Filed Jan. 14, 2011).

FDIC as Receiver for Washington Mutual Bank v. Killinger, et al., Case No. 2:11-cv-00459-MJP (U.S. District Court for the Western District of Washington Filed Mar. 16, 2011).

FDIC as Receiver for Wheatland Bank v. Spangler, et al., Case No. 10-cv-04288 (U.S. District Court for the Northern District of Illinois Filed May 5, 2011).

FDIC as Receiver of IndyMac Bank, F.S.B. v. Perry, Case No. 11-cv-05561-ODW-MRW (U.S. District Court for the Central District of California Filed Jul. 6, 2011).

FDIC as Receiver of Michigan Heritage Bank v. Cuttle, Case No.2:11-cv-13422-BAF-MKM (U.S. District Court for the Eastern District of Michigan Filed Aug. 8, 2011).

FDIC as Receiver of The Columbian Bank and Trust Co. v. McCaffree, Case No. 2:11-cv-02447-JAR-KGS (U.S. District Court for the District of Kansas Filed Aug. 9, 2011).

FDIC as Receiver for Cooperative Bank v. Rippy, Case No. 7:11-cv-00165-BO (U.S. District Court for the Eastern District of North Carolina Filed Aug. 10, 2011).

FDIC as Receiver for First National Bank of Nevada v. Dorris, Case No. 11-cv-01652-GMS (U.S. District Court for the District of Arizona Filed Aug. 23, 2011).

FDIC as Receiver for Mutual Bank v. Mahajan, Case No: 1:11-cv-07590 (U.S. District Court for the Northern District of Illinois Filed Oct. 25, 2011).

FDIC as Receiver for Westsound Bank v. Johnson, Case No. 3:11-cv-05953-RBL (U.S. District Court for the Western District of Washington Filed Nov. 18, 2011).

FDIC as Receiver for Bank of Asheville v. Greenwood, Case No. 1:11-cv-00337-MR-DLH (U.S. District Court for the Western District of North Carolina Filed Dec. 29, 2011).

FDIC as Receiver for R-G Premier Bank of Puerto Rico v. Galán-Alvarez, Case No. 3:12-cv-01029-JAG (U.S. District Court for the District of Puerto Rico Filed Jan. 18, 2012).

The FDIC follows the policies adopted by the FDIC Board in 1992, ‘Statement Concerning the Responsibilities of Bank Directors and Officers,’ that can be found online at http://www.fdic.gov/regulations/laws/rules/5000-3300.html#fdic5000statementct.

By Lou Phelps, SBJ Staff

Jan 16, 2012 – Perhaps it’s a little ‘out of sight, out of mind’… a bit hidden away up on Chatham County’s far Northwest corner…and an exit or two up Interstate 95. 

But don’t let the location stop you from accessing the enormous resource Savannah has at the Georgia Tech Enterprise Innovation Institute, part of Georgia Tech’s Regional Engineering Program located on the Jimmy Deloach Parkway.   In ten locations in Georgia, including in Atlanta and Savannah, Georgia Tech offers an Advanced Technology Development Center, known as ‘ATDC’ that offers low cost start-up acceleration services to technology companies.

The ATDC initiative in Savannah was launched during the Spring of 2002, now approaching its 10-year anniversary here, assisting both new ventures arising from Savannah’s diverse technology community that includes the Savannah College of Art and Design, a growing community of technology startup companies and existing companies retooling their technology strategies.

In Savannah, Orjan Isacson, is the ‘Startup Catalyst’ and manager of the Savannah program. He was previously Managing Director of CONNECT Sweden, assisting entrepreneurs to start and develop technology companies. Under Orjan’s leadership, CONNECT grew to eight networks with 20 offices closely linked to the major universities in Sweden. His educational background includes a Masters Degree in Mechanical Engineering from Chalmers University of Technology.

Thanks to his wife’s position with Delta Airlines, he found himself moving to Georgia and helping to build ATDC programs across the state.

Savannah is one of 10 ATDC regional hubs that are part of Georgia Tech’s Georgia Manufacturing Extension Partnership.  That partnership program is led by Karen Fite, Manager, State Regional Network.   Isacson explains that he spend 50% of his time assisting the region’s 400 plus manufacturing companies, and 50% of time on ATDC entrepreneurs.

In 2012, a few minor changes have been announced in the ATDC strategy, including that there is now a $50 per quarter charge to be a member.  But that membership brings with it enormous support for entrepreneurs on building a business plan, and preparing to seek funding.  And, there is the possibility this year that the core ATDC programs offered up in Atlanta will be available in Savannah through video conferencing or Skype events.

ATDC offers its popular ‘StartupLounge Savannah’ here, which is an informal meeting between selected startups and investors in order for them to get to know each other, in partnership with the Creative Coast.

ATDC also offers mentorship, a Venture Atlanta Early Stage Showcase, Cap Venture – a training program designed to educate and equip early stage executives for capitalization of their businesses; SBIR grant assistance and other startup resources.

They also rent office space at the Savannah campus at low rates that includes use of their conference room and kitchen facilities.

As of this month, the Savannah ATDC members include Attrasoft, Code Grail, Tourbuddy, Evoca, Kin Valley, Maddog Environmental, LLC. Pixelphish Interactive, RappidApp, Storm Shelter Electronics, Twitch Technologies and Urban Planet Mobile.

“If you’ve got a technology idea, the ATDC program stands ready to help entrepreneurs and existing companies in the Coastal Georgia region,” according to Isacson.   

ATDC Savannah, and Orjan Isacson, can be reached at 912-963-2519, and by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

McDonalds Franchisee Nina Gombles Continues Savannah Investment While Protecting Employees

By Lou Phelps, SBJ Staff

Jan 16, 2012 - For Nina Gombels, owner of six of the Savannah area’s most successful McDonald’s franchises, the decision to tear down her restaurant at Waters Ave. and Eisenhower Dr. was significant. 

She bought the store from her Dad back in 2004, who has now passed way – he had been a 37-year McDonald’s franchisee, from whom she learned the business. 

”It’s really significant for us…and it’s a tremendous investment,” she explained, talking about the decision to level the Waters Avenue location.  “It was really something to see it gone yesterday.”  She also is losing three months-worth of sales, while increasing her payroll at other stores.   

She has managed to retain all of her employees from the Waters Avenue location during the shutdown.  “We transferred them to other locations; we maintained them and we found what would be the most convenient locations within our organization for them,” based on where they lived, Gombels explained.  “We worked to insure that they could maintain their positions.  No people were laid off.”

The new Waters Avenue store will seat 91 customers inside, feature an inside toddler’s play area – eliminating the outside playground – and maintain the same number of parking spaces.  Both an updated design and the double service lanes will be the most significant changes.  The old store actually had more parking spaces than were called for by local zoning, based on their prior seating capacity, so no additional parking needed to be included. 

The success of her woman-owned company over the past decade has allowed her to pay off the Water’s Avenue investment, and tear it down to bring in the updated generation of McDonald’s design. It’s one of several major investments she has made.    

Gombels converted her Derenne Ave. McDonalds to two lanes last May, and converted her store at Ogeechee Rd. and Berwick back in 2007.  At Derenne, they have achieved significant improvements in customer service, speed of delivery of food, and an increase in customer volume.  There has, however, been some conversion of in-store customers to drive-through, but overall sales are up.  With the Waters Ave. store closed, they are also seeing increased sales at Derenne Ave, as well.

Besides running clean stores, with a high level of customer service, Nina emphasizes that the changes in the McDonald’s menu have also had a very positive impact on her company, including the McCafe coffee line, the smoothies, lemonades and healthier food choices such as oatmeal cereal for breakfast - a healthier morning alternative.   

And the changes to the children’s Happy Meal by the McDonalds corporation has also been very positive for her local sales.  “Every Happy Meal now provides French fries and apples.  It used to be one or the other.  The price for a Happy Meal went up, at the most by 10 cents.  We reduced the size of the French fries just a little bit,” as well, she explains.     

The Water’s Avenue location will be back up no later than March 29, though perhaps a week or so earlier, based on her contractor’s estimates.