Justia Alabama Supreme Court Opinion Summaries

The University of South Alabama Medical Center and the University of South Alabama Children's and Women's Hospital appealed the grant of summary judgment in favor of Mobile County. The County filed a complaint seeking a judgment to interpret Act 83-501. In its complaint, the County asserted that the Act was indefinite and unclear as to which hospitals qualify for reimbursements and the amount of those reimbursements. The County named several hospitals as defendants, including the University of Southern Alabama Children's and Women's Hospital. The Hospitals answered the complaint asserting that the Act is not indefinite, and that Mobile County previously provided reimbursement for providing indigent care and that it could continue to do so "based on established procedures and precedence and the plain meaning of the Act." In its review, the Supreme Court concluded that there was no justiciable controversy; Mobile County only sought an advisory opinion in its declaratory-judgment complaint. The trial court therefore lacked subject-matter jurisdiction over this action. The Court vacated the trial court's order and dismissed the case. View "Univ. of So. Alabama Med. Ctr. v. Mobile Infirmary Association" on Justia Law

The Travelers Indemnity Company of Connecticut appealed a judgment in which it was ordered to pay $251,913.91 to Willie A. Miller. Smith House Movers, Inc. (Smith), was hired was hired to move houses located in the path of road construction to be performed. Miller entered into a contract with Smith to purchase one of the houses and to move it from Red Bay to Vina. The contract provided that Smith was to move the house, pour a foundation, and place the house on the new foundation. Smith cut the house into two pieces and delivered the first piece. However, the foundation was improperly poured and did not fit, and the house had been damaged in the move. Ultimately Miller had to hire another company to complete the move and repair the damage. Miller then sued Smith alleging breach of contract, negligence and wantonness. Smith did not answer or appear, and Miller moved to a default judgment against Smith. In an attempt to collect the amount of the default judgment, Miller sent a copy to Smith's general liability insurer, Travelers. As Miller tried to get Travelers to respond to its demand, Miller learned that Smith had declared bankruptcy. Two years following the default judgment, the bankruptcy trustee lifted its stay on Smith's affairs to allow him to collect on the default judgment to the extent that the insurance coverage would allow. Travelers subsequently denied the claim. Miller then sued Travelers for payment. Travelers moved for summary judgment to dismiss Miller's claim, arguing that the general liability policy did not provide coverage based on the terms in the policies. The trial court denied the motion, and eventually entered judgment against the company. Travelers then appealed to the Supreme Court. The issue before the Court was whether the notice of the original lawsuit was timely. The Court found that because Miller's knowledge of Smith's certificate of insurance from the underlying lawsuit put Miller on notice that he should have notified Travelers of the default judgment. As such, the Court concluded that Miller was barred from recovering under Smith's policies. The Court reversed the trial court and remanded the case for further proceedings. View "Travelers Indemnity Company of Connecticut v. Miller" on Justia Law

This appeal arose from a dispute between the Alabama Commercial Mobile Radio Services ("CMRS") Board (CMRS Board) and T-Mobile South, LLC and PowerTel Memphis, Inc. (collectively, T-Mobile) two providers of wireless telephone services, regarding emergency "911" service charges for purchasers of prepaid wireless service. From May 2003 through May 2005, T-Mobile paid the 911 service charge on behalf of its prepaid CMRS connections. In June 2005, T-Mobile ceased paying the 911 service charge for its prepaid connections. but resumed paying the service charge in 2007. T-Mobile never collected the service charge from any of its prepaid customers. T-Mobile requested a refund of CMRS service charges it had paid the CMRS Board from May 2003 through May 2005. The CMRS Board denied the request. T-Mobile then filed a declaratory judgment action against the CMRS Board and the members of the CMRS Board individually and in their official capacities, seeking a judgment declaring that the service charge did not apply to prepaid wireless service. The Board filed a motion to dismiss, which the trial court subsequently denied. The trial court eventually entered an order denying T-Mobile's summary judgment motion and granting the Board's motion. Upon review, the Supreme Court found that the legislature's intent was to impose the service charge on all CMRS connections, including those provided by T-Mobile to its prepaid customers. And under Alabama law, T-Mobile was not excused from paying the service charges. Accordingly, the Court affirmed the trial court's judgment. View "T-Mobile South, LLC v. Bonet" on Justia Law

Plaintiffs Ronald Browning and Susan Browning, Bubba Beck and Debbie Beck, Allen Caprara and Pam Caprara, Bobby Fayet and Cindy Fayet, David Kennamer and Brad Kennamer, Steve Russell and Melinda Russell, and Gary Strickland and Jennifer Strickland sued Jeff Cornelius, among others, alleging various claims related to investments they made in corporations in which Cornelius was allegedly a principal. The trial court entered a default judgment against Cornelius based upon his purported failure to appear for his deposition, awarding the plaintiffs a total of $975,000 in damages. Cornelius moved the trial court pursuant to Ala. R. Civ. P. Rule 60(b) to set aside the default judgment, arguing that he had not received notice that the motion for a default judgment had been filed. After a hearing, the trial court denied Cornelius's motion to set aside the default judgment, and Cornelius appealed. Upon review, the Supreme Court concluded that the trial court's judgment was inconsistent with due process and was therefore void. Cornelius was entitled to have the default judgment set aside, and accordingly, the Court reversed the trial court and remanded the case for further proceedings. View "Cornelius v. Browning" on Justia Law

GE Capital Aviation Services, Inc., (now known as GE Capital Aviation Services, LLC), Pemco World Air Services, Inc., and Alabama Aircraft Industries, Inc. have fiercely litigated a commercial-contract dispute since 2004 in which each party alleged breach-of-contract and fraud claims against the other. The parties entered an agreement for the conversion, maintenance and inspection of aircraft leased through GE Capital. GE Capital and Pemco each sought punitive damages in addition to compensatory damages. The litigation culminated in a jury trial that lasted approximately three weeks. The jury returned a verdict in favor of Pemco on all of its claims, awarded Pemco $2,147,129 in compensatory damages and $6,500,000 in punitive damages, and returned a verdict in favor of Pemco on all of GE Capital's counterclaims. GE Capital appealed the jury verdict and the trial court's order denying GE Capital's postjudgment motions. GE Capital did not appeal the judgment in favor of Pemco on its counterclaims. Upon review, the Supreme Court reversed the trial court's order denying GE Capital's motion for a JML as to Pemco's fraud claims and its breach-of-an-implied-contract claim. The Court also reversed the trial court's order denying GE Capital's motion for a new trial. The case was remanded for further proceedings. View "GE Capital Aviation Services, LLC v. Pemco World Air Services, Inc." on Justia Law

The issue before the Supreme Court pertained to the admissibility into evidence a child witness's prior inconsistent out-of-court statements. The Court granted certiorari to address this as an issue of first impression: whether a part of the Child Physical and Sexual Abuse Victim Protection Act conflicted with the Alabama Rules of Evidence. The Court of Criminal Appeals held that an "inherent tension" existed between the Act and the Rules of Evidence insofar as it permitted a prior inconsistent out-of-court statement of a child witness to be considered substantive evidence of asserted facts when the rules considered those statements as hearsay. "M.L.H." was adjudicated a youthful offender based on the trial court's finding that he was guilty of first-degree sodomy, and he was sentenced accordingly. M.L.H. appealed, and the Court of Criminal Appeals determined that M.L.H.'s prior out-of-court statements, although admissible as substantive evidence under the Act, were inadmissible as substantive evidence under the rules of evidence. The court reversed the trial court's judgment and remanded the case for a new trial. The State appealed. Upon review, the Supreme Court reversed the Court of Criminal Appeals, finding no conflict between the Act and the rules of evidence. The case was remanded for reassessment of the substantive admissibility of M.L.H.'s prior inconsistent out-of-court statements. View "M. L. H. v. Alabama" on Justia Law

Novus Utilities, Inc. sought a writ of mandamus from the Supreme Court to direct the Cullman Circuit Court to dismiss negligence and private-nuisance claims against it as time-barred. Eleven property owners residing in Cullman County sued Defendants the Hanceville Water Works & Sewer Board and Southwest Water Company, alleging that the defendants had allowed approximately two million gallons of untreated raw sewage from the sewage-treatment facility operated by the Board to be discharged into waterways in Cullman County. They alleged that on January 21, 30, and 31, 2008, the sewage treatment facility released the untreated raw sewage, and that release created a health hazard and damaged and devalued their property. Novus was added as a defendant to the suit as a subsidiary of Southwest. Novus moved to dismiss claims against it. After careful consideration, the Supreme Court concluded the trial court was correct in denying Novus' motion to dismiss, and denied its petition for a writ of mandamus to quash the trial court's judgment. View "Roberts v. Hanceville Water Works & Sewer Board" on Justia Law

Defendant National Security Fire & Casualty Company appealed a circuit court order that certified a class for a class action lawsuit. Plaintiff Maurice DeWitt's mobile home was damaged by Hurricane Katrina, and at the time of his loss, Plaintiff was insured by National Security. In 2007, Plaintiff filed suit in circuit court against National Security and other insurance companies alleging that the Defendants breached his insurance policy when they did not include a 20% "general contractor overhead and profit" (GCOP) amount in its loss payment. Specifically, Plaintiff alleged the insurance companies did not take into account Plaintiff's loss and the need for additional general contractor services in rebuilding his home. Plaintiff sought to represent similarly situated policyholders whose claims were allegedly miscalculated in the same fashion. Upon review, the Supreme Court concluded that Plaintiff did not satisfy his burden of establishing the predominance and superiority requirements to certify his class action. Accordingly, the Court held that the trial court exceeded its discretion in cerfifying the class. View "National Security Fire & Casualty Company v. Maurice DeWitt " on Justia Law

Defendants Springhill Hospitals, Inc., Dennis Rushing, Ashley Flemming and Janel Ostriehmerer appealed a judgment entered in favor of Plaintiff Dimitrios Critopoulos. Plaintiff was admitted to the hospital for a heart catheterization. While in the hospital's cardiac-intervention unit, Defendant Rushing noticed discoloration and blisters on Plaintiff's neck and spine. Nineteen days after he was admitted for cardiac care, Plaintiff was released from the hospital. Plaintiff was subsequently admitted to a different infirmary and treated for the discoloration and blisters, which were found to be ulcers. He filed a medical-malpractice action against Defendants for failing to treat the ulcers when he was under their care for the catheterization. Defendants alleged on appeal to the Supreme Court that errors at trial warranted a reversal of the outcome. The Supreme Court reviewed the trial court record and applicable authority, and concluded that the trial court exceeded its discretion when it ruled in favor of Plaintiff. The Court reversed the trial court's judgment and remanded the case for the entry of a judgment as a matter of law in favor of Defendants. View "Springhill Hospitals, Inc. v. Critopoulos " on Justia Law

In separate petitions, the Hampton Insurance Agency and Ginger Spencer, Acceptance Indemnity Insurance Company and Ashland General Agency all defendants in an action filed by Mary Alice Patton, d/b/a Hole in the Wall Lounge, petitioned the Supreme Court for a writ of mandamus to direct the trial court to transfer the action to the Tuscaloosa Circuit Court. Ms. Patton purchased insurance for her lounge from Ms. Spencer, an independent insurance agent for Hampton. At issue was the nature and extent of the coverage Ms. Patton sought. The lounge was destroyed by fire in 2009. Upon filing her insurance claim, Ms. Patton was informed that her policy did not include coverage for property damage. Accordingly, Ms. Patton sued because "defendants were negligent and/or wanton in their procurement of full coverage insurance for [Patton] on her lounge building and its contents." Hampton responded with a motion to dismiss or in the alternative, to transfer the case on grounds that the case was filed in an improper venue. Upon review, the Supreme Court found that the defendant insurance companies met the requirements for the writ of mandamus. The Court directed the trial court to vacate its order denying defendants' motions to transfer, and to enter orders granting those motions to transfer to the Tuscaloosa Circuit Court. View "Patton v. Hampton Insurance Agency" on Justia Law