Justia Alabama Supreme Court Opinion Summaries

These consolidated appeals arose from the same facts: in 1990, Richard L. Parker applied to American Family Life Assurance Company of Columbus (Aflac) for a cancer-indemnity insurance policy. Aflac issued Parker a policy. The term of the 1990 policy was month-to-month; the monthly premium was $28.50. Aflac received payments for the 1990 policy from August 25, 1990, to August 17, 1996. Parker applied for a new policy in May 1996 for when the 1990 policy was set to terminate. The 1996 policy took effect August 16, 1996, and used the same number as the 1990 policy. Parker renewed the policy once again in 2009, but the 2009 policy contained an arbitration clause. By a special waiver, the 2009 policy's language stated that Parker would give up his "current" policy and its benefits for the benefits in the new one. Parker paid according to the term of the 2009 policy. But in 2010, Parker sued Aflac asserting a claim of bad faith for Aflac's alleged failing to pay policy benefits owed under the 1990 policy. Aflac responded by filing a motion to compel arbitration according to the terms of the 2009 policy. The circuit court conducted a hearing on the motion and denied it. Upon review, the Supreme Court concluded that Aflac satisfied its burden of proving that an arbitration agreement existed that applied to Parker's claims against it. Because there was no issue as to whether the contract containing the arbitration agreement affected interstate commerce, the burden then shifted to Parker to offer evidence refuting the evidence offered by Aflac and Hunter; Parker offered no evidence to refute that evidence and presented "no persuasive argument" that Aflac failed to meet its burden. The Court reversed the circuit court's decision and remanded the case for further proceedings. View "American Family Life Assurance Company of Columbus v. Parker " on Justia Law

Riverstone Development Co., Inc. and Southern Heritage, LLC appealed a judgment dismissing an action in which they had intervened as defendants. The dispute involved a number of individuals and entities who claimed some right or title in one or more parcels of land in Jackson County. Roy Nelson filed a "complaint for specific performance" against Fieldstone Land Company, LLC, averring that Nelson had been the high bidder for "Tract 10" at a public auction and sought a judgment to order Fieldstone to "execute a deed to [Nelson] conveying the real propert[y]." Riverstone and Heritage moved to intervene in the action "to join [Fieldstone] in their defense against [Nelson's] claim." Riverstone and Heritage alleged that they were the current and former owner of the subdivision in which Tract 10 was located. The trial court granted that motion, and Riverstone and Heritage filed an answer to the complaint. Ultimately the trial court entered its judgment denying Riverstone and Heritage's further participation in the case by dismissing it entirely. Upon review, the Supreme Court concluded that because the trial court erred in treating the motion to dismiss as a nondiscretionary dismissal, the Court reversed that judgment and remanded the case for the trial court to "exercise the discretion as is proper for consideration of a motion to dismiss under Rule 41(a)(2)." View "Riverstone Development Co., Inc. v. Nelson" on Justia Law

American Family Care, Inc. (AFC) petitioned the Supreme Court for a writ of mandamus to direct the Jefferson Circuit Court to vacate its order staying a civil action filed by AFC against Anita Salters. Salters was a former employee of AFC, acting as the director of the center from 2007 to June 2010 before her employment was terminated. As director, she was responsible for handling billing issues and claim audits performed by insurance companies and governmental agencies. In some instances, Salters had the only copies of communications related to billing inquiries and claim audits. In April 2011, the Federal Bureau of Investigation executed a search warrant at AFC's corporate office. The FBI removed mostly billing records. After the search warrant was executed, AFC determined that it was missing corporate records it would need to defend itself against any criminal charges that might be filed as a result of the FBI investigation. According to AFC, several of its employees reported that Salters had been seen removing files and records from the corporate offices shortly before she was fired. AFC made written demand upon Salters for the return of the records, but she did not respond. AFC then sued Salters seeking the return of any business records she might have. Salters answered the complaint, denying that she had removed any AFC records from its offices. The trial court, sua sponte, entered an order staying AFC's action "until further notice." The trial court expressed no reason for entering the indefinite stay. Upon review, the Supreme Court found that the indefinite stay ordered by the trial court, with no stated justification for it, was "immoderate" and beyond the scope of the trial court's discretion. For that reason, the Court granted AFC's petition and issued a writ of mandamus ordering the trial court to vacate its order staying AFC's action against Salters. View "American Family Care, Inc., v. Salters" on Justia Law

Plaintiffs Jacklyn and Donald McMahon sued Defendants Yamaha Motor Corporation, U.S.A.; Yamaha Motor Manufacturing Corporation of America; Yamaha Motor Co., LTD. ("the Yamaha defendants"); and Montgomery Outdoor Power Products, Inc., d/b/a Montgomery Yamaha-Honda. They asserted a products-liability claim under the Alabama Extended Manufacturer's Liability Doctrine ("AEMLD"), as well as negligence, wantonness, breach-of-warranty, and loss-of-consortium claims. Jacklyn was injured in July 2007 when the 2007 Yamaha Rhino 660, a two-passenger off-road utility vehicle that the McMahons had purchased from Montgomery Yamaha-Honda, rolled over while she was driving it, resulting in injuries to her arms and legs when she extended them out of the vehicle in an attempt to support herself and/or the vehicle during the rollover. At the close of evidence, the McMahons withdrew their breach-of-warranty claim and the Yamaha defendants moved for a judgment as a matter of law on the remaining claims. After the jury returned a verdict in favor of the Yamaha defendants, the McMahons appealed the judgment on the negligence and wantonness claims. Upon further review, the Supreme Court affirmed in part and reversed in part. The Court found that the McMahons produced substantial evidence to support their wantonness claim and that the trial court accordingly erred by entering a judgment as a matter of law in favor of the Yamaha defendants on that claim. However, any error the trial court may have committed in entering a judgment as a matter of law in favor of the Yamaha defendants on the McMahons' negligence claim was harmless because the jury's verdict on their AEMLD claim established that their negligence claim would have been unsuccessful. View "McMahon v. Yamaha Motor Corporation, U.S.A., et al. " on Justia Law

Auto Owners Insurance, Inc. (Auto Owners) appealed a circuit court's denial of its motion to dismiss or, in the alternative, to compel arbitration in an action against it filed by Blackmon Insurance Agency, Inc. Blackmon and Auto Owners entered into an "agency agreement" authorizing Blackmon to act as an agent for the sale of Auto Owners' insurance in Alabama (the 1995 agreement). A 2005 document entitled "Letter of Instructions" was alleged to be an independent document from the 1995 agreement. Auto Owners contended that the 2005 document was contemplated by and incorporated into the 1995 agreement. The 2005 document contained instructions governing the issuance of a variety of bonds by an agency of Auto Owners. In late 2010, Blackmon filed a complaint in the circuit court seeking a declaratory judgment as to the arbitrability of a dispute between Blackmon and Auto Owners as to which Auto Owners had already initiated arbitration proceedings in its home state of Michigan. Blackmon also alleged that in the Michigan arbitration proceeding Auto Owners based its claims on the 2005 document and a 2009 agreement. Upon review of the matter, the Alabama Supreme Court concluded that the circuit court erred in denying Auto Owners' motion to compel arbitration. The Court therefore reversed that order and remanded the case for the circuit court to grant the motion to compel arbitration and either issue a stay of these proceedings pending arbitration or dismiss the case. View "Auto Owners Insurance, Inc. v. Blackmon Insurance Agency, Inc. " on Justia Law

Sacred Heart Health System, Inc., the defendant in a declaratory-judgment action filed by Infirmary Health System, Inc. (IHS) and South Baldwin Regional Medical Center appealed to the Supreme Court from one aspect of a final judgment entered by a circuit court in favor of IHS and South Baldwin. IHS and South Baldwin cross-appealed from another aspect of the trial court's judgment held in favor of Sacred Heart. The Supreme Court transferred the appeal and cross-appeal to the Court of Civil Appeals, and that court reversed the judgment of the trial court. Sacred Heart owns "Sacred Heart Medical Group" (SHMG) which consists of 143 multi-specialty physicians who practice in the area served by Sacred Heart. All SHMG physicians have uniform employment contracts with SHMG. Six of those physicians practice in southern Baldwin County. When the Baldwin County practice saw an increase in patients, Sacred Heart sought to expand existing leased space for additional physicians and facilities. The contested issue between the parties was whether the portion of the medical-building project Sacred Heart leased for its Baldwin County physicians to use was subject to Sacred Heart's first obtaining a "Certificate of Need" to expand its facilities from the State Health Planning and Development Agency (SHPDA). Finding that the trial did not engage in a five-part inquiry (as expressed in 22-21-260(6) Ala. Code 1975) on whether the proposed expanded practice required a CON in order to proceed, the Supreme Court remanded the case back to the trial court for further proceedings. View "Infirmary Health System v. Sacred Heart Health System, Inc." on Justia Law

Following a 1987 conviction for first-degree theft of property and his unsuccessful direct appeal of that conviction, Defendant Joseph Pate filed a Rule 32, Ala. R. Crim P. petition (Rule 32) for relief. The circuit court summarily denied his petition. Defendant filed a second Rule 32 petition in 2010. In the petition, he asserted that: his sentence was illegal because the trial court improperly used two of his prior controlled-substance convictions as sentence enhancements; and, that the State failed to provide notice that it intended to proceed under the Habitual Felony Offender Act for sentence enhancement. The State moved to dismiss, asserting that the petition was barred because those claims could have been, but were not, raised at trial, and because those claims could have been, but were not, raised on appeal. The Court of Criminal Appeals affirmed the circuit court's denial of Defendant's Rule 32 petition without an opinion. On appeal, Defendant contended that in not addressing the denial of his motion for sentence reconsideration the Court of Criminal Appeals incorrectly applied the law to the facts of his case. Because the record supported Defendant's claim that his request for sentence modification was made in a separate motion, the Supreme Court found that the Court of Criminal Appeals erred in concluding that the claim was not proper for appellate review. Accordingly, the Supreme Court reversed the appellate court's judgment to the extent it held that the trial court's ruling on Defendant's request for sentence reconsideration was not properly before it, and remanded the case for the Court of Criminal Appeals to review the circuit court's denial of Defendant's motion for sentence modification. View "Pate v. Alabama" on Justia Law

Defendant Ralph Burnell petitioned the Supreme Court for a writ of mandamus to direct the Bibb Circuit Court to vacate its 2011 order that denied his motion to dismiss claims Plaintiff Christi Burry Kelley filed against him. In 2007 while she was an inmate at the Bibb County jail, Plaintiff slipped in the shower and was injured. Petitioner was the warden of the jail at the time. Plaintiff sued the warden, the jail, the sheriff's department, and the sheriff, alleging negligence and wantonness. Defendants moved to dismiss, arguing among other things that the trial court did not have jurisdiction to hear the claims against them under state immunity. The trial court dismissed as to the County, the jail and the sheriff's department and sheriff, but denied the motion as to Defendant. Defendant argued on appeal to the Supreme Court that he was entitled to State immunity because he was being sued for money damages for actions that arose out of his performance of his duties as a deputy sheriff. Finding that Defendant established a clear legal right to the dismissal of Plaintiff's claims against him, the Supreme Court issued the writ. View "Kelley v. Burnell" on Justia Law

Main & Associates, Inc., d/b/a Southern Springs Healthcare Facility, filed an action in the Bullock Circuit Court, on behalf of itself and a putative class of Alabama nursing homes, against Blue Cross and Blue Shield of Alabama (BCBS), asserting claims of breach of contract, intentional interference with business relations, negligence and/or wantonness, and unjust enrichment and seeking injunctive relief. BCBS removed the case to the the federal court, arguing among other things, that Southern Springs' claims arose under the Medicare Act and that the Medicare Act, as amended by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (the MMA) completely preempted Southern Springs' state-law claims. Southern Springs moved the federal court to remand the case to the circuit court, arguing that the federal court did not have jurisdiction over its claims. The federal court granted the motion and remanded the case to the Bullock Circuit Court. After remand, BCBS moved the circuit court for a judgment on the pleadings, arguing that Southern Springs had not exhausted its administrative remedies and that the circuit court did not have subject-matter jurisdiction over the case. The circuit court denied BCBS's motion, and BCBS petitioned the Supreme Court for a writ of mandamus to direct the circuit court to dismiss Southern Springs' claims. Upon review, the Court concluded that Southern Springs' claims were inextricably intertwined with claims for coverage and benefits under the Medicare Act and that they were subject to the Act's mandatory administrative procedures and limited judicial review. Southern Springs did not exhaust its administrative remedies, and the circuit court did not have jurisdiction over its claims. Therefore, the Court granted BCBS's petition and issue a writ of mandamus directing the circuit court to dismiss the claims against BCBS. View "Main & Associates, Inc. v. Blue Cross & Blue Shield of Alabama" on Justia Law

Husband and wife Emmett and Debra Jackson appealed the grant of summary judgment in favor of Wells Fargo Bank, N.A. in their action against the bank and trustee. The Jacksons challenged a foreclosure sale of their property. The Jacksons refinanced an existing home loan; in so doing, they gave a mortgage on the property which was subsequently assigned to Wells Fargo. Although the mortgage was, in turn, assigned to the trustee, the bank continued to function as the "servicer" of the loan. By 2007, the Jacksons were in arrears on their mortgage payments. While the Jacksons and the bank were engaged in negotiations for forbearance, the Jacksons did not make certain scheduled payments. During the negotiations, a debt-collection representative of the trustee sent the Jacksons a "NOTICE OF ACCELERATION OF PROMISSORY NOTE AND MORTGAGE." The house was put up for sale, and a foreclosure deed was issued to a third party. The Jacksons then sued the bank, the trustee, and the purchaser of the property alleging negligent or wanton foreclosure and breach of contract. The bank and trustee moved for summary judgment, contending that the Jacksons lacked any basis from which to contest the foreclosure sale. Upon review, the Supreme Court found that the Jacksons presented no basis on which to reverse the summary judgment as to their claim of negligent or wanton foreclosure, however, the Court agreed that the acceleration letter was fundamentally flawed. The Court reversed the grant of summary judgment on the breach of contract claim, and remanded the case for further proceedings. View "Jackson v. Wells Fargo Bank, N.A." on Justia Law