Justia Alabama Supreme Court Opinion Summaries

Joyce Pates filed a medical malpractice lawsuit against Community Health Systems, Inc. (CHSI), Affinity Hospital, LLC, d/b/a Grandview Medical Center, Dr. John Kirchner, and Southlake Orthopaedics Sports Medicine and Spine Center, P.C. Pates alleged that after injuring her ankle and undergoing surgery performed by Dr. Kirchner at Grandview Medical Center, she experienced complications leading to an infection and ultimately the amputation of her right leg.The Jefferson Circuit Court denied the defendants' motions to dismiss, which argued that Pates's claims were barred by the two-year statute of limitations under the Alabama Medical Liability Act (AMLA). The court reasoned that Pates's injury began when she was informed of the need for amputation, thus starting the statute of limitations from that point.The Supreme Court of Alabama reviewed the case and determined that Pates's claims were indeed barred by the AMLA's statute of limitations. The court found that Pates's injuries, including signs of infection and the need for hardware removal, were evident by November 2020. Therefore, the statute of limitations began at that time, and Pates's complaint filed in February 2023 was outside the two-year limit. The court granted the petitions for writs of mandamus, directing the trial court to dismiss Pates's claims against the defendants. View "Ex parte Affinity Hospital, LLC" on Justia Law

Piedmont Comprehensive Pain Management Group, LLC ("Piedmont") provides pain-management care and had a business arrangement with DocRx Dispensing, Inc. ("DRD") for billing and collection services. DRD collected payments from insurance companies for medications dispensed by Piedmont and kept a portion as compensation. In 2022, Piedmont sued DRD and other related entities and individuals, alleging breach of contract, unjust enrichment, and various tort-based claims, accusing them of improperly depriving Piedmont of funds owed for dispensing medications.The Mobile Circuit Court initially granted the defendants' motion to compel arbitration based on an April 2017 agreement between Piedmont and DRD, which included an arbitration clause. The court stayed the action pending arbitration. During arbitration, the defendants produced a later August 2017 agreement, which also contained an arbitration clause and was signed by both parties. Piedmont then requested the trial court to lift the stay, arguing that the defendants could not insist on arbitration while denying the existence of the April 2017 agreement. The trial court lifted the stay, and the defendants appealed.The Supreme Court of Alabama reviewed the case de novo. The court held that claims based on the August 2017 agreement, which was signed by both parties, must be arbitrated. The court also noted that the trial court's initial order compelling arbitration of claims based on the April 2017 agreement was a final judgment, and Piedmont's failure to appeal within the required time frame meant the trial court had no jurisdiction to set aside that order. Consequently, the Supreme Court of Alabama reversed the trial court's order lifting the stay and remanded the case for further proceedings consistent with its opinion. View "DocRx, Inc. v. Piedmont Comprehensive Pain Management Group, LLC" on Justia Law

John Cassimus, Jason T. Carrick, and Ryan McAllister were members of several limited-liability companies operating retail-liquidation stores, which have since closed. Carrick and McAllister alleged that Cassimus misused corporate assets for personal gain, while Cassimus claimed that Carrick and McAllister enriched their own company, Xcess Limited, at the expense of the stores. Carrick and McAllister sued Cassimus and his associates in the Shelby Circuit Court, asserting various claims including breach of fiduciary duty and fraud.The Shelby Circuit Court denied the Cassimus defendants' motion to dismiss the derivative claims, appointed a special master to oversee discovery, and dismissed claims against East Hampton Advisors, LLC, based on the abatement statute. The Cassimus defendants and Carrick and McAllister sought mandamus review of these orders in the Supreme Court of Alabama.The Supreme Court of Alabama reviewed the petitions. In case no. SC-2024-0284, the court denied the Cassimus defendants' petition, holding that the question of whether Carrick and McAllister could fairly and adequately represent the companies was a fact-intensive inquiry not suitable for mandamus review at the pleading stage. In case no. SC-2024-0318, the court dismissed the Cassimus defendants' petition as untimely because it was filed outside the presumptively reasonable time without a statement of good cause. In case no. SC-2024-0349, the court denied Carrick and McAllister's petition, holding that they had another adequate remedy through a Rule 54(b) appeal, which they did not pursue.The court lifted the stay previously entered and directed the trial court to resume proceedings. View "Ex parte Cassimus" on Justia Law

OptumRx, Inc. ("OptumRx"), a national pharmacy-benefits manager, entered into contracts with Dalton Drug Co., Inc., and Hartford Pharmacy, LLC ("the Pharmacies") in 2015. These contracts included an arbitration provision for resolving disputes. In December 2021, the Pharmacies notified OptumRx of disputes regarding alleged fraudulent pricing and reimbursement schemes. After a failed resolution attempt via a telephone call in March 2022, OptumRx filed complaints in the Geneva Circuit Court seeking a declaratory judgment to enforce the arbitration provision.The Geneva Circuit Court consolidated the actions and denied the Pharmacies' motion to dismiss, which argued that no justiciable controversy existed. OptumRx then moved for summary judgment, asserting that the Pharmacies' refusal to arbitrate created a justiciable controversy. The Pharmacies opposed, denying refusal to arbitrate and reiterating the lack of a justiciable controversy. The trial court granted summary judgment in favor of OptumRx, ordering arbitration.The Supreme Court of Alabama reviewed the case and determined that no justiciable controversy existed when OptumRx filed its actions. The court noted that the Pharmacies had up to a year to decide whether to pursue arbitration, and OptumRx's rights had not been "frustrated or affected" at the time of filing. Consequently, the trial court lacked subject-matter jurisdiction, rendering its summary judgment void. The Supreme Court of Alabama reversed the trial court's judgment and remanded the case with instructions to dismiss the actions without prejudice. View "Dalton Drug Co., Inc. v. OptumRx, Inc." on Justia Law

Francine Pickett sued American Bankers Insurance Company of Florida, American Modern Property and Casualty Insurance Company, Davison Insurance Agency, and various fictitiously named defendants. Pickett alleged that she sought to replace her existing mobile home insurance policy with American Bankers for a lower premium through Davison. She claimed that Davison advised her to purchase a policy from American Modern, which she did. However, American Bankers canceled her previous policy for nonpayment without her knowledge. When her mobile home was damaged by fire, American Modern refused to pay the claim, alleging fraud due to non-disclosure of the previous policy's cancellation. Pickett alleged bad faith, breach of contract, negligent procurement of insurance, civil conspiracy, and negligence against the defendants.The Wilcox Circuit Court denied American Bankers' motion to compel arbitration and stay litigation. American Bankers argued that Pickett had agreed to arbitration through a binder and previous insurance applications. The trial court found that Pickett never received a policy or arbitration agreement in 2022 and thus could not have accepted or rejected the arbitration clause. The court also found that previous policies or arbitration agreements were irrelevant to the current matter.The Supreme Court of Alabama reviewed the case and reversed the trial court's decision. The court held that the binder, which included an arbitration agreement, was a contract that Pickett relied upon for her claims. Therefore, she could not seek the benefits of the binder while avoiding its arbitration provision. The court concluded that Pickett's claims against American Bankers arose from and relied on the binder, making her bound by its terms, including the arbitration agreement. The case was remanded for further proceedings consistent with this opinion. View "American Bankers Insurance Co. of Florida v. Pickett" on Justia Law

In 2020, Sarah E. Martin was injured in a car accident involving an 18-wheel tractor-trailer driven by Charles Streeter, an employee of Al-Amin Brothers Transportation, LLC. Martin sued the LLC, several individuals, and 18 fictitiously named defendants. In January 2023, Martin settled with the original defendants, agreeing to release them and related parties from any claims arising from the accident. Subsequently, Martin amended her complaint to add PEI Ohio, Inc. and Premium Transportation Group, Inc. (the corporations) as defendants, alleging various negligence and breach of contract claims.The Jefferson Circuit Court enforced the settlement agreement in favor of the corporations, dismissed Martin's third amended complaint, and awarded attorney fees to the corporations. Martin filed a fourth amended complaint, which remains pending. The circuit court certified its orders as final under Rule 54(b), Ala. R. Civ. P., and Martin appealed both the enforcement of the settlement and the attorney fee award.The Supreme Court of Alabama reviewed the case and determined that the circuit court exceeded its discretion in certifying the orders as final under Rule 54(b). The court found that the adjudicated and unadjudicated claims were closely related, the need for review might be mooted by future developments in the circuit court, and there was a possibility of having to consider the same issue again, particularly regarding attorney fees. Consequently, the Supreme Court of Alabama dismissed Martin's appeals, emphasizing the preference to avoid piecemeal litigation and the need for a final judgment on all pending claims before appellate review. View "Martin v. PEI Ohio, Inc." on Justia Law

Willie C. Scott signed a promissory note on May 22, 2018, promising to pay $67,000 to Jimmy C. Scott by March 24, 2020. The note detailed amounts borrowed on three separate dates. Willie passed away on November 20, 2019, and Jeanetta C. Scott, as administratrix of his estate, denied the allegations in Jimmy's complaint, asserting that Willie had fulfilled his obligations under the note.Jimmy filed a complaint in the Pike Circuit Court on October 13, 2021, seeking repayment. Jeanetta contested the claim, and the case was consolidated with another related to the administration of Willie's estate. Jimmy moved for summary judgment, supported by affidavits from himself and two witnesses who attested to witnessing Willie sign the note. Jeanetta opposed the motion, providing affidavits from herself and another individual, both asserting that the signature on the note was not Willie's.The Pike Circuit Court initially denied Jimmy's motion for summary judgment but later granted it after a renewed motion and hearing. Jeanetta's subsequent motion to set aside the summary judgment was denied, leading to this appeal.The Supreme Court of Alabama reviewed the case and found that the circuit court had improperly made credibility assessments in granting summary judgment. The court noted that there was a genuine issue of material fact regarding the authenticity of Willie's signature on the promissory note, which should be resolved by a jury. Consequently, the Supreme Court of Alabama reversed the circuit court's summary judgment in favor of Jimmy and remanded the case for further proceedings. View "Scott v. Scott" on Justia Law

Irva E. Reed sought to run for a seat on the Montgomery County Commission in 2024. She submitted her qualifying papers to the Montgomery County Democratic Party in November 2023 and confirmed she would submit a "Statement of Economic Interests" (SEI) to the Alabama Ethics Commission within five days, as required by Alabama law. However, she filed her SEI 41 days late. The Director of the Commission informed the Party that Reed was not qualified to appear on the ballot. Reed requested a five-day extension due to illness, but the Commission denied her request.Reed then sued the Director, the Chairman of the Commission, and the Secretary of State in their official capacities in the Montgomery Circuit Court, seeking a judgment declaring her illness as a valid reason for the delay and an injunction to place her name on the ballot. The trial court granted her request for a preliminary injunction, ordering the Commission and the Party to certify Reed as a candidate. The defendants appealed the trial court's order, and the Supreme Court of Alabama stayed the injunction while addressing the appeal.The Supreme Court of Alabama reviewed the case de novo and found that Reed's claim was moot because the election had already occurred. The court held that a judgment in Reed's favor would not affect the rights of the parties. The court also determined that none of the exceptions to mootness cited by Reed—capable of repetition but evading review, public interest, and collateral rights—applied in this case. Consequently, the Supreme Court of Alabama dismissed the appeal and instructed the trial court to dissolve the injunction and dismiss Reed's complaint. View "Plunk v. Reed" on Justia Law

The case involves a dispute between Hyundai Construction Equipment North America, Inc. and Hyundai Heavy Industries Co., Ltd. (collectively "Hyundai") and Southern Lift Trucks, LLC ("Southern"). Southern sued Hyundai after Hyundai terminated one of their agreements and appointed another dealer in Southern's sales territory. Southern's claims included breach of contract, tort claims, and claims under the Alabama Heavy Equipment Dealer Act (AHEDA). The agreements between the parties included an arbitration clause for resolving disputes.The Washington Circuit Court initially denied Hyundai's motion to compel arbitration. Hyundai appealed, and the Supreme Court of Alabama held that all of Southern's claims, except for portions of the declaratory-judgment claim relating to the enforceability of the dealer agreements, should be sent to arbitration. The trial court then entered an order compelling arbitration for all claims except the declaratory-judgment claim. Southern did not initiate arbitration and instead filed a motion to enjoin or stay the arbitration proceedings initiated by Hyundai.The Supreme Court of Alabama reviewed the trial court's order enjoining the arbitration. The court held that the arbitration provision required all disputes to be resolved by arbitration, except for declaratory judgments on the enforceability of any provision of the agreements. The court found that the trial court erred in enjoining the arbitration, as the arbitration provision did not prevent arbitrators from adjudicating disputes over the agreements' enforceability. The court emphasized that the Federal Arbitration Act requires arbitration of all claims except for the non-arbitrable portions of the declaratory-judgment claim and that judicial economy or the possibility of inconsistent results does not justify staying arbitration.The Supreme Court of Alabama reversed the trial court's order enjoining the arbitration and remanded the case for further proceedings consistent with its opinion. View "HD Hyundai Construction Equipment North America, Inc. v. Southern Lift Trucks, LLC" on Justia Law

Digital Forensics Corporation, LLC ("DFC") was retained by King Machine, Inc. and Hartford Fire Insurance Company to perform electronic-discovery services related to a discovery order in litigation in the Etowah Circuit Court. The plaintiffs alleged that DFC misrepresented its capabilities on its website and through its representatives, leading them to believe DFC could perform the required services. Despite paying DFC $35,291.93, the plaintiffs claimed DFC failed to deliver the data in a usable format, resulting in additional costs and sanctions totaling $50,291.93, plus $107,430.44 in attorneys' fees and expenses.The plaintiffs filed a lawsuit in the Jefferson Circuit Court, alleging breach of contract and fraud in the inducement. DFC removed the case to federal court, which later remanded it back to the circuit court. DFC then filed a motion to compel arbitration based on a clause in their agreement, which included a multi-step dispute resolution process culminating in binding arbitration. The plaintiffs opposed the motion, arguing that the arbitration clause was fraudulently induced.The Jefferson Circuit Court denied DFC's motion to compel arbitration. DFC appealed to the Supreme Court of Alabama, arguing that the arbitration provision should be enforced. The Supreme Court of Alabama reviewed the case de novo and determined that the plaintiffs' fraud claims were directed at the entire agreement, not solely the arbitration clause. Therefore, the allegations of fraud in the inducement did not provide a basis to avoid arbitration.The Supreme Court of Alabama reversed the circuit court's order denying DFC's motion to compel arbitration and remanded the case for further proceedings consistent with its opinion. View "Digital Forensics Corporation, LLC v. King Machine, Inc." on Justia Law