Opinion ID: 2168431
Heading Depth: 2
Heading Rank: 1

Heading: The OTS Report

Text: We first consider the report that Ms. Knowles made to the OTS following the bank's investigation of Ms. Ferguson's activities. The evidence shows that Ms. Knowles' primary motive in reporting the possible flim-flam to the Metropolitan Police and in filing the referral form with the OTS was to fulfill what she perceived to be her official duties. At trial she testified that she filed the report with the OTS because she understood that federal law required a bank to report all violations or suspected violations of any rule, regulation, or code of conduct governing bank employees. She also testified that she spent two days completing the form because she wanted it to be right. Contrary to Ferguson's argument, this report was not a case of pure `rumor' or `gossip' or `scuttlebutt' conveyed as fact, without any disclaimer or explanation, Sigal Construction Corp. v. Stanbury, 586 A.2d 1204, 1215 (D.C.1991); rather, it was based on a thorough investigation by several bank officials. The report recounted that (1) Ms. Ferguson and other bank employees had accompanied Ms. Osin on a trip to Atlantic City; (2) shortly after that trip, Ms. Osin made Ferguson an irrevocable beneficiary of two annuities valued at $70,000; (3) by her own admission, Ferguson knew of Ms. Osin's action, asked Ms. Osin to keep her status as a beneficiary quiet, and did not report the beneficiary change to the bank for fear of losing her job; (4) Ms. Osin did not intend to make Ms. Ferguson the beneficiary; (5) after she was fired, Ms. Ferguson accompanied Ms. Osin to the bank, where she made substantial withdrawals from her account and cashed some savings bonds; and (6) some of the checks from that transaction were reported missing, although they were later found. These facts, many of which were admitted by Ferguson, were also established by testimony at trial and were clearly sufficient to give rise to a suspicion of criminal activity warranting referral to the OTS pursuant to 12 C.F.R. § 563.180(d)(1). Ferguson points to the fact that Ms. Knowles checked boxes on the OTS form for self-dealing and restitution in the amount of $70,000, and argues that the checking of these boxes reflects Knowles' belief that Ferguson stole the money. Assuming that it does, we deem it insufficient to show that Ms. Knowles was motivated by malice. In the first place, Ms. Knowles was working within the limitations of a printed form. Although the checked boxes could possibly lead the reader to the mistaken understanding that Ferguson stole the money, the reader was also referred by asterisks to the four-page narrative which clearly described the events that had led to the investigation and the filing of the report. Cf. Ford Motor Credit Co., supra, 367 A.2d at 1315-1316 (where qualified privilege applies, evidence that defendant followed standard procedures undercuts finding of malice). Furthermore, Ferguson's claim that the bank was mistaken is insufficient to establish that the report was made with malice; indeed, such a mistake would be inconsistent with a finding of malice. See Curry v. Giant Food Co., supra, 522 A.2d at 1295. [A] mere characterization of certain conduct as malicious does not create a jury question unless there is evidence of actual malice. Id. (citation omitted). We conclude that Ms. Ferguson did not meet her burden of showing that Ms. Knowles acted with malice. When there is insufficient evidence of malice to go to the jury, it is the duty of the trial court to direct a verdict for the defendant. National Disabled Soldiers' League v. Haan, 55 App.D.C. 243, 248-249, 4 F.2d 436, 441-442 (1925) (citations omitted). Consequently, we hold that the trial court erred in failing to direct a verdict for the bank on the claim involving the referral to the OTS.