South Alabama Gas District v. Knight

South Alabama Gas District (SAG) appealed a circuit court order enjoining it from selling liquified petroleum ("LP") gas and related appliances outside its member cities. Four individual taxpayers and Fletcher Smith Butane Co., Inc., sued SAG seeking both an injunction and damages for SAG's alleged violation of 11-50-266, as made applicable to gas districts by 11-50-399. The trial court bifurcated the claim for injunctive relief and the damages claim, and held a bench trial on the claim for injunctive relief. SAG argued that the notice and buy-out provisions did not apply to it because LP gas is not a "manufactured gas" within the terms of the statute. The trial court found otherwise and enjoined SAG from selling LP gas if it did not comply with 11-50-266. The circuit court found that the taxpayers lacked standing to challenge SAG's appliance sales. With regard to Fletcher Smith, SAG argued (among other things), that Fletcher Smith lacked standing because it sold its assets and was no longer engaging in the LP gas business. As proof, SAG cited Fletcher Smith's to "Requests for Admissions of Fact." After review of the circuit court record and the admissions cited by SAG in its appeal brief, the Supreme Court found that Fletcher Smith's claims for prospective relief became moot. "Because mootness goes to justiciability, this Court will not consider the merits of a claim that is moot." View "South Alabama Gas District v. Knight" on Justia Law