Justia Alabama Supreme Court Opinion Summaries

Aurora Healthcare, Inc., Aurora Cares, LLC, (d/b/a Tara Cares) and Birmingham Nursing and Rehabilitation Center East, LLC appealed a circuit court order that denied their motion to compel arbitration. Mary Pettway, then 75 years old, was discharged from the hospital at the University of Alabama at Birmingham and admitted to a nursing home in Birmingham owned and operated by the defendants. She was returned to the hospital and then readmitted to the nursing home twice in the weeks following her initial discharge. Upon Pettway's first readmission, an arbitration agreement was executed, along with the other admission documents, on her behalf. Pettway was finally returned to the hospital, where she died on December 10, 2003. Sharon Ramsey, in her capacity as administratrix of Pettway's estate, filed a complaint against the defendants. The complaint asserted a variety of statutory and common-law claims allegedly arising from Pettway's death, including a wrongful-death claim. The defendants filed a motion to dismiss or for a change of venue. The parties litigated the issue of venue vigorously until the Wilcox Circuit Court entered an order transferring the case to the Jefferson Circuit Court. The "Aurora" defendants filed a motion to dismiss on the ground that they did not own the nursing home at which Pettway resided during the relevant period. Because the Supreme Court concluded that there was insufficient evidence in the record to support a determination that Ramsey was substantially prejudiced by defendants' belated assertion of their right to arbitration, "the order of the circuit court denying the defendants' motion to compel arbitration must be reversed. We are unable to determine, however, whether this case is due to be arbitrated." Accordingly, the Court reversed the circuit court's order denying the defendants' motion to compel arbitration. The Court remanded the case for that court to consider the motion to compel arbitration in light of the issues associated with the validity and scope of the arbitration agreement proffered by the defendants. View "Aurora Healthcare, Inc. v. Ramsey" on Justia Law

Town & Country Property, L.L.C., and Town & Country Ford, L.L.C. (T&C), sued Amerisure Insurance Company and Amerisure Mutual Insurance Company (Amerisure) and its insured, Jones-Williams Construction Company, Inc., alleging that Amerisure was obligated to pay a $650,100 judgment entered in favor of T&C and against Jones-Williams in a separate action pursuant to a commercial general-liability insurance policy Amerisure had issued Jones-Williams. The trial court entered a summary judgment in favor of Amerisure, and T&C appealed. Specifically, the trial court held that Amerisure was not required to indemnify Jones-Williams because there had been no occurrence invoking coverage under the policy. Upon review, the Supreme Court affirmed the trial court's judgment to the extent the awarded damages represented the costs of repairing or replacing faulty work covered under the liability policy. The Court remanded the case to the trial court so that it could consider arguments from the parties to determine if any of the damages awarded represented compensation for damaged property. View "Town & Country Property, L.L.C.v. Amerisure Ins. Co." on Justia Law

In May 2008, seven-year-old Jordan Alexander Robertson was placed in foster care at the home of Verlin Spurgeon and Carol Spurgeon. In June 2008, Jordan drowned in the Spurgeons' swimming pool. James Brakefield, as administrator of Jordan's estate, sued the Spurgeons, among others, in circuit court alleging that they had negligently and/or wantonly caused Jordan's death. The Spurgeons moved the circuit court for a summary judgment, alleging, among other things, that the claims were barred by the doctrines of parental, State, and State-agent immunity. The circuit court denied the motion. The Spurgeons petitioned the Supreme Court for a writ of mandamus to direct the circuit court to dismiss the claims against them. Upon review, the Supreme Court granted their petition in part and issued the writ to direct the circuit court to dismiss the negligence claims against the Spurgeons. In all other respects, the Court denied the petition. View "Brakefield v. Alabama Dept. of Human Resources" on Justia Law

McNeese Title, LLC, a Florida limited liability company owned and operated by Richard McNeese, and Richard McNeese and Peggy Owens petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate its order denying their motions to dismiss the action filed against them by James Atchison, and to enter an order dismissing the action for lack of in personam jurisdiction. This dispute arose out of Atchison's purchase of two residential lots in the Villa Lago subdivision, which was originally a 14-acre tract of land in the Golf and Beach Resort of Sandestin, Florida. According to Atchison, purchase agreements were sent to him by the "developers," who, he says, "developed, marketed and sold the lots" in the subdivision. Mr. Atchison signed a "compliance agreement limited power of attorney," designating Richard McNeese or Ms. Owens as Atchison's "attorney in fact for [his] use and benefit, ... for the purpose of ... signing or initialing on [his] behalf, any and all documents affecting the closing or refinance of the [lots]." The closing was held in 2005, however, many of the other lots in the subdivision had not closed, contrary to the purchase agreements. Eventually, Atchison sued a number of individuals and entities, including C-D Jones, 331 Partners, McNeese, and Owens, alleging that he had suffered damage as a result of activities conducted by C-D Jones and 331 Partners after the closing. McNeese and Owens unsuccessfully moved to dismiss the action for lack of personal jurisdiction. Upon review, the Supreme Court concluded that the circuit court lacked jurisdiction over the McNeeses and Ms. Owens. Accordingly, the Court granted their petition and issued the writ. View "Atchison v. IPC Industries, Inc." on Justia Law

Smith's Sports Cycles, Inc. appealed the outcome of a nonjury trial that held in favor of American Suzuki Motor Corporation. Smith's claimed that Suzuki wrongfully terminated the parties' franchise agreement. The trial court conducted a 12-day bench trial. After hearing the evidence, the trial court entered a judgment in favor of Suzuki on Smith's breach-of-contract claim, concluding that there was not substantial evidence that Suzuki had breached any provision of the franchise agreement. The trial court also entered a judgment in favor of Suzuki on Smith's claim that Suzuki had violated the Franchise Act. Upon review, the Supreme Court concluded that "the judgment of the trial court terminating the parties' franchise relationship is due to be affirmed." View "Smith's Sports Cycles, Inc. v. American Suzuki Motor Corporation " on Justia Law

The United States District Court for the Northern District of Alabama, Southern Division sent a certified question to the Supreme Court. While the Court initially accepted the certified question; however upon review, the Court declined to answer it. The Court noted that the certified question was framed in the abstract, with no reference to any specific language in the title-insurance policy at the heart of the case (i.e., as an evidentiary issue with broad application). "The parties, in their briefs to this Court, do not address the construction of the policy at issue and instead refer this Court to various authorities discussing how valuation may be determined in various title-insurance contexts. Additionally, it is not apparent from the materials before us that the district court has had the opportunity to address whether the specific language of the policy would control the determination of the value of the property. Therefore, we see no grounds under Rule 18 [of the Rules of Alabama Civil Procedure] that will allow this Court to answer the question." View "Stewart Title Guaranty Company v. Shelby Realty Holdings, L.L.C." on Justia Law

The Boaz City Board of Education ("the Board") and its members Alan Perry, Fran Milwee, Roger Adams, Alan Davis, and Tony G. King (collectively "the Board members") petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate its order that denied their motion to dismiss claims filed against them by Lisa and Donnie Tarvin and to enter an order dismissing the claims with prejudice. According to the complaint, Leland Dishman, the superintendent for the Board, struck kindergarden teacher Lisa Tarvin with a paddle. Dishman read a statement at a press conference, denying that the incident occurred. The Tarvins sued the Board, the Board members in their official capacities, and Dishman in his individual capacity, alleging claims of assault and/or battery, defamation, libel, and slander and sought monetary damages. The Board and the Board members moved to dismiss the claims against them, arguing that they were immune from suit under the State immunity doctrine. Upon review, the Supreme Court found that the Board and its members demonstrated that under the Alabama Constitution, they had immunity from the claims asserted against them, and "a clear legal right to have the claims… dismissed with prejudice." The Court granted the petition and issued the writ. View "Tarvin v. Dishman" on Justia Law

Plaintiff Kenneth Jakeman appealed a trial court's dismissal of his claims against Defendants Alderwoods, Inc., Lawrence Group Management Company, LLC, Montgomery Memorial Cemetery, Inc. and Judy Jones. Plaintiff's father purchased a "family plot" in the cemetery in 1967 containing ten burial spaces. Pursuant to the terms of the purchase agreement for the family plot, burial was limited to members of the Jakeman family. The cemetery mistakenly conveyed two spaces in the Jakeman family plot to James Jones and his wife, Defendant Judy Jones. Mr. Jones died and was buried in one of the Jakeman spaces. Plaintiff learned of the mistake in 2006, and notified the the cemetery and Mrs. Jones. Mr. Jones was reinterred in another space, however, still within the Jakeman spaces. When Plaintiff's father died in 2008, Mr. Jones was still interred in one of the Jakeman spaces. Despite an offer to exchange burial spaces, and based on a purported refusal to again exhume Mr. Jones, Plaintiff filed suit alleging breach of contract, trespass, negligence, willfulness and/or wantonness, outrage and conversion. Mrs. Jones cross-claimed against Alderwoods, Lawrence and the cemetery based on their alleged error in conveying to her spaces already owned by the Jakemans. Upon review, the Supreme Court found that it did not have jurisdiction to hear the case: "Despite representations in [Plaintiff's] notice of appeal that the underlying matter has been disposed of in its entirety, we hold that, because Judy's cross-claim remains pending below, this appeal is from a nonfinal judgment, and we do not have subject-matter jurisdiction." Accordingly, the Court dismissed the appeal and remanded the case for further proceedings. View "Jakeman v. Lawrence Group Management Company, LLC" on Justia Law

Coosa Cable Company, Inc. (Coosa Cable), sued Sycamore Management Group, LLC (Sycamore), and DirecPath, LLC (DirecPath). Coosa Cable sought and obtained both a temporary restraining order (TRO) and a preliminary injunction barring DirecPath from providing video-programming services to the tenants of an apartment building owned by Sycamore. As a condition of the TRO, Coosa Cable provided a security bond of $250. As a condition of the preliminary injunction, the trial court required Coosa Cable to provide a security bond of $100,000. After a hearing, the trial court entered a permanent injunction against Sycamore and DirecPath and discharged Coosa Cable's security bond. Sycamore and DirecPath appealed; the Supreme Court reversed the trial court's order granting permanent injunctive relief to Coosa Cable. Sycamore and DirecPath then sought to recover costs, damages, and attorney fees caused by the wrongful injunction, but the trial court denied their motion. Upon review, the Supreme Court reversed and remanded the trial court's decision: "[the Court held] that after this Court held in [the first Sycamore case] that Sycamore and DirecPath had been wrongfully enjoined, they were entitled to seek an award from Coosa Cable of the damages caused by the wrongful injunction. Because the trial court erred in denying Sycamore and DirecPath damages for the wrongful injunction, we reverse the trial court's order denying their motion seeking those damages." View "Sycamore Management Group, LLC v. Coosa Cable Company, Inc. " on Justia Law

Turquoise Properties Gulf, Inc. (Turquoise) appealed a circuit court judgment that denied its motion to alter, amend or vacate an arbitration award in an action filed by Clark A. Cooper, David L. Faulkner, Jr., and Hugh and Adrienne Overmyer (collectively, Claimants). Claimants signed purchase and escrow agreements to purchase condominiums to be built as part of "phase I" of a complex Turquoise was developing in Orange Beach. In conjunction with the purchase, they each posted a letter of credit for 20% of the purchase price. When construction neared substantial completion, the Claimants declined to "close" on the purchases on their respective units, allegedly because Turquoise had failed to build an outdoor pool and sundeck area or to provide individual storage units and private cabanas which it had agreed to build and to provide. The purchase and escrow agreements contained an arbitration provision. Claimants' initial demands contained claims of breach of contract, fraud, and violations of the Interstate Land Sales Full Disclosure Act. The arbitrator entered a lengthy arbitration award containing findings of fact and conclusions of law, ultimately in favor of the Claimants. Turquoise filed a motion to modify the arbitration award on the ground that the arbitrator had made a computational error in his calculation of damages. Upon review, the Supreme Court concluded that the arbitrator did mistakenly calculate damages owed to the claimants. The Court vacated the arbitrator's award and remanded the case for recalculation of damages. View "Turquoise Properties Gulf, Inc. v. Overmyer" on Justia Law