Safe Building Compliance & Technology
v.
Michelle Bernholtz, n/k/a Michelle Naughton
Appellee
Safe Building Compliance & Technology
Appellant
Michelle Bernholtz, n/k/a Michelle Naughton
Attorney for the Appellee
Billy J. Mallory and Trevor A. Jordison
Attorney for the Appellant
Theodore W. Craig, David M. Repp, and Rachel L. Soderstrum
Court of Appeals
Court of Appeals Opinion
Opinion Number:
Date Published:
Summary
Appeal from the Iowa District Court for Polk County, Lawrence P. McLellan, Judge. AFFIRMED. Heard by Greer, P.J., and Chicchelly and Buller, JJ. Opinion by Greer, P.J. (27 pages)
Safe Building Compliance & Technology (SBCT), a nonprofit corporation, sought to hold former director Michelle Naughton (formerly Bernholtz) liable for misappropriated funds in the amount of $481,481. Naughton admitted liability for some corporate funds that were improperly used on personal expenses but challenged others as expenses that were approved by the board of directors or spent after she resigned her position as director. Following a trial to the bench, the district court ordered Naughton to reimburse SBCT a total of $269,290.94. On appeal, Naughton disputes her liability for $78,425.38 spent on disability- and life-insurance policies for herself and her husband; $19,900 for excessive lease payments to a limited liability company owned by Naughton and Bernholtz; and $144,077 for construction and renovation expenses for the property owned by the limited liability company. OPINION HOLDS: Having interpreted and applied Iowa Code section 504.832 (2020), we agree with the district court that Naughton is liable for each of the challenged amounts. We affirm.
