Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, July 19, 1995 TAG: 9507190029
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: DANVILLE LENGTH: Medium
U.S. District Judge Jackson L. Kiser wrote in his opinion that the bank had no financial responsibility to the employees.
About 90 employees of Register Publishing Co. Inc. filed the suit March 17 against American National Bank & Trust Co., executor of the estate of E. Stuart James Grant. A charitable trust administered by the bank has owned the newspaper since Grant died in 1990.
The employees accused the bank of a breach of financial duty, a breach of contract and fraud under the Employee Retirement Income Security Act of 1974, which oversees retirement and pension plans.
An Employee Stock Ownership Plan wanted to buy the newspaper, but the bank made arrangements instead to sell the paper to Charles Womack Jr., a publisher of weekly newspapers in Virginia and North Carolina.
Womack had an agreement with the bank when state Attorney General Jim Gilmore stepped in to stop the process. Gilmore questioned whether the bank acted in the best interest of the beneficiaries. Shortly thereafter, American National terminated its agreement with Womack.
Bank President and Chief Executive Officer Charles Majors said Monday that the bank plans to proceed with the sale of the paper. He said 40 to 50 potential buyers have expressed an interest.
``What we would like to do is proceed ahead with our plan,'' Majors said. ``We'd like to reassess where we are and move as quickly as possible.''
``We felt like we were doing what was right,'' Majors said of the bank's work as trustee and executor. ``We have to do our job as we see it. We were trying to carry out a fiduciary obligation - Mrs. Grant's wishes.''
An attorney for the employees said the ruling does not mark the end of their battle.
``This ruling does not resolve the issue of the sale and ownership of the newspaper,'' William Rakes said.
by CNB