Wells Fargo Bank has formally dropped two lawsuits filed earlier this year against Augusta Mayor Garnett Johnson, his wife, and businesses they own, after reaching a settlement in principle, according to court filings.
In March, the bank filed two civil lawsuits in Richmond County Superior Court against Johnson, his wife Toni Seals-Johnson and their companies: Modern Business Workplace Solutions, Augusta Office Solutions and G&T Johnson Properties.
Wells Fargo sought repayment of more than $880,000 in outstanding debt. This was the amount the lawsuits said defendants owed on a $1 million Small Business Administration loan issued in 2020 and a $150,000 line of credit extended in 2019, plus interest and legal fees.
Johnson and his businesses took out the loans prior to his taking office in 2023. In a statement, he has said the lawsuits have no bearing on his duties and responsibilities as mayor.
“Being a small business owner always presents numerous challenges,” he said in a prior statement.
According to court filings, Wells Fargo issued notices of default on both loans in August and December of last year. Receiving no response, the bank filed the lawsuits March 10 and 11. In May, receiving no acknowledgement of the suits, Wells Fargo filed a motion for judgment by default.
Then on June 10, the parties had reached some sort of settlements “in principle,” according to a notice filed with the court. On June 11, the judges of the Augusta Judicial Circuit recused themselves, but the cases didn’t go much further.
On July 28, Wells Fargo announced it was dismissing both lawsuits “with prejudice,” meaning it cannot attempt to collect on the debts again. Terms of the settlements have not been disclosed.
