Alabama Mutual Insurance Corporation v. City of Vernon et al.

Alabama Mutual Insurance Corporation ("AMIC"), the defendant in an action pending at the Lamar Circuit Court filed by the City of Vernon on behalf of itself and other similarly situated entities, appealed the court's order that certified a class in that action. Vernon stated that it had reached an agreement with AMIC regarding individual claims and therefore no longer wished to pursue them. AMIC filed a response to Vernon's motion in which it argued that the Supreme Court should remand the case to the trial court with instructions to dismiss it because now the case was missing its named representative, and therefore the requirements for a class action could not be met. Vernon argued it had the right to withdraw from the pending litigation, but because the trial court certified the class, the litigation remains viable. Vernon requested time in which to allow the class to name a new representative. The Supreme Court agreed with Vernon that the trial court should have the opportunity to determine whether a new named plaintiff should be certified. "The trial court is the proper entity to decide whether to allow the class members to amend their complaint to substitute a new named plaintiff and to determine whether that plaintiff meets the adequacy requirements in Rule 23(a), Ala. R. Civ. P., so as to represent the class." As such, AMIC's appeal was dismissed, and the case remanded to the trial court for further proceedings. View "Alabama Mutual Insurance Corporation v. City of Vernon et al. " on Justia Law