St. Paul Mercury Ins. Co. v. Meeks
Decision Date | 09 November 1998 |
Docket Number | No. S98A1121.,S98A1121. |
Citation | 508 S.E.2d 646,270 Ga. 136 |
Parties | ST. PAUL MERCURY INSURANCE CO. v. MEEKS, et al. |
Court | Georgia Supreme Court |
OPINION TEXT STARTS HERE
Linda A. Klein, Irwin W. Stolz, Jr., Leo Joseph Fogarty, Seaton D. Purdom, Gambrell & Stolz, LLP, Atlanta, for St. Paul Mercury Insurance Company.
Jimmy Jacob Boatright, Alma, for Cona Britt Meeks et al.
St. Paul Mercury Insurance Company (St. Paul) appeals the denials of its motions for directed verdict and for judgment notwithstanding the verdict on its claims of unjust enrichment and constructive trust in its suit against A.P. Meeks, Jr. For the reasons that follow, we affirm.
A.P. Meeks, Jr. is the husband of Cona Meeks, who was employed by Alma Exchange Bank. After certain credit card accounts in her control were discovered to be out of balance, the bank arranged for an independent audit which concluded that Ms. Meeks had embezzled over $372,000.00 between 1988 and 1991. She pled guilty to 273 counts of embezzlement and three counts of income tax evasion. At her plea hearing, Ms. Meeks stated that she embezzled $272,000.00, and restitution was ordered in the amount of $272,838.35.
St. Paul insured the bank against losses from embezzlement and, as the bank's assignee, brought an action against the Meeks to recover the loss. The court granted St. Paul partial summary judgment against Ms. Meeks for $272,000.00, based on her guilty plea. The case was tried on St. Paul's claim for $100,000.00 from Ms. Meeks, the amount it contended was embezzled beyond that for which summary judgment was granted. St. Paul also sought a judgment against Mr. Meeks for unjust enrichment, contending that $138,000.00 of the embezzled funds inured to his benefit, and sought the imposition of a constructive trust. Using a special verdict form, the jury found that Ms. Meeks was not liable to St. Paul for any sum beyond the $272,000 for which the court had already granted summary judgment, and that Mr. Meeks was not liable at all. The court entered judgment on the verdicts.1
1. St. Paul contends that the evidence demanded the finding that Mr. Meeks was unjustly enriched at the expense of the bank, and hence St. Paul, because the proceeds of his wife's embezzlement were used to pay debts for which Mr. Meeks would otherwise have been liable. However, a directed verdict is appropriate only if there is no conflict in the evidence as to any material issue and the evidence introduced, construed most favorably to the party opposing the motion, demands a particular verdict. OCGA § 9-11-50(a); Norfolk Southern Corp. v. Smith, 262 Ga. 80, 82(2), 414 S.E.2d 485 (1992). The same standard applies to a motion for judgment notwithstanding the verdict. See Goggin v. Goldman, 209 Ga.App. 251, 252, 433 S.E.2d 85 (1993). The evidence did not demand a verdict in favor of St. Paul.
Unjust enrichment is an equitable concept and "applies when as a matter of fact there is no legal contract ..., but when the party sought to be charged has been conferred a benefit by the party contending an unjust enrichment which the benefitted party equitably ought to return or compensate for." (Citations omitted.) Engram v. Engram, 265 Ga. 804, 807(2), 463 S.E.2d 12 (1995). Ms. Meeks testified that she did not embezzle any money and that she lied when she pled guilty to the criminal charges of embezzlement. Mr. Meeks testified that the couple had sources of income other than their salaries, that the debts in question were not paid with embezzled funds,...
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