Justia Alabama Supreme Court Opinion Summaries

In consolidated appeals and petition for a writ of mandamus arose out of litigation stemming from the alleged breach of a lease agreement, which litigation was originally initiated by the lessor, Goodall-Brown Associates, L.P. Following the entry of an order compelling the matter to arbitration, the defendants Sloss Real Estate Group, Inc. ("SREG"), the lessee; Sloss Goodall-Brown, LLC, the assignee of SREG; Cadence Bank, N.A., and Second Avenue Holdings, LLC, the successors in interest to Goodall-Brown's original mortgage lender; and Leigh Ferguson, Catherine Crenshaw, Jack Peterson, A. Page Sloss, Jr., Ronald Capello, and Vicki Bolton (collectively, "the individual defendants"), and Sloss Real Estate Company ("SREC"), the alleged alter ego of the individual defendants in conjunction with SREG and Sloss Goodall, unsuccessfully sought dismissal of Goodall-Brown's claims based on the trial court's alleged lack of subject-matter jurisdiction to order the matter to arbitration because, they argued, Goodall-Brown lacked standing to assert the claims. In case no. 1111422, Cadence appealed the trial court's order effectively compelling it to arbitration. In case no. 1111449, the Sloss defendants renewed their contention that the trial court lacked the requisite subject-matter jurisdiction to compel the parties to arbitration. Alternatively, in case no. 1111526, the Sloss defendants petitioned the Supreme Court for a writ of mandamus to direct the trial court to void its order compelling the matter to arbitration and to dismiss the underlying action based on Goodall-Brown's alleged lack of standing and that court's resulting lack of subject-matter jurisdiction. In case no. 1121455 and case no. 1130054, Second Avenue appealed the trial court's denial of its request to enjoin discovery in the arbitration proceeding ordered by that court as to Second Avenue, pending resolution of the other appeals and petition. Upon review of the cases, the Supreme Court: affirmed in case 1111422; denied the petition in 1111526; and dismissed the appeals in cases nos. 1111449, 1121455, and 1130054. View "Cadence Bank N.A. v. Goodall-Brown Associates, L.P. " on Justia Law

Paul Kennamer and Dorothy Kennamer appeal an order entered by the Marshall Circuit Court compelling them to arbitrate their claims against Ford Motor Credit Company LLC and Ray Pearman Lincoln, Inc. (the dealership). The Kennamers had problems with the used car they purchased and stopped making payments on the loan they obtained through Ford Credit and the dealership. After review of the retail-installment contract at the center of this controversy, the Supreme Court affirmed the circuit court's decision insofar as it granted the dealership's motion to compel arbitration and reversed insofar as it granted Ford Credit's motion to compel arbitration. View "Kennamer v. Ford Motor Credit Company LLC" on Justia Law

Southeast Construction, L.L.C. ("SEC") appealed a Circuit Court order enforcing, a previous judgment entered by that court based on an arbitration award in favor of WAR Construction, Inc ("WAR"). Upon review of the facts of this case, the Supreme Court affirmed in part, reversed in part, and remanded for further proceedings. The Court concluded the circuit court erred in finding in a January 9 order that "all liens and claims against SEC ... from WAR's subcontractors/suppliers that filed a lien on the project ... ha[d] been released and/or adequate security ha[d] been provided." Furthermore, the Court concluded the circuit court erred in finding that WAR had "attempt[ed] to comply with what the Supreme Court ordered the circuit court to implement as of May 13, 2011," and that WAR was entitled to have the interest owed under the arbitrators' award and the May 9 judgment calculated from that date. View "Southeast Construction, L.L.C. v. WAR Construction, Inc. " on Justia Law

Guardian Builders, LLC, and E. Wayne Tackett appealed a Circuit Court order denying their motion to vacate or modify an arbitration award entered in favor of Randy Uselton and his wife Melissa. In 2010, the Useltons sued Guardian alleging several claims arising from Guardian's construction of a house for the Useltons. Guardian subsequently filed a motion to compel arbitration, and the circuit court granted that motion. In late 2011, the arbitrator entered a final award in favor of the Useltons. Guardian subsequently filed a motion to vacate or modify the arbitration award to the circuit court, to which it attached a copy of the arbitration award. The Useltons filed a 'motion to confirm' the arbitration award. The circuit court entered an order purporting to deny Guardian's motion to vacate or modify the arbitration award, purporting to grant the Useltons' motion to confirm the arbitration award, and purporting to order Guardian to pay $1,421.75 in Better Business Bureau fees and facility costs related to the arbitration. Guardian objected only to a subset of the damages that were awarded the Useltons that were not directly related to the poorly constructed house, specifically, attorney fees and arbitration fees (including both the arbitrator fee and the forum fee charged by the Better Business Bureau of North Alabama ("the BBB"), which administered the arbitration). Furthermore, Guardian argued the arbitrator lacked the authority to award the Useltons attorney fees and arbitration fees. The Supreme Court agreed that the arbitrator exceeded his authority by awarding those remedies. The trial court's judgment was reversed and the case remanded for the trial court to enter a modified judgment subtracting attorney fees and arbitration fees from the award made to the Useltons. View "Guardian Builders, LLC v. Uselton " on Justia Law

Charles Gower petitioned the Supreme Court to vacate an arbitration award in favor of Turquoise Properties Gulf, Inc., Caribe Realty, Inc., Larry Wireman, and Judy Ramsey Wireman(collectively, "Turquoise"). The underlying dispute arose from Gower's preconstruction agreement to purchase a condominium unit in a complex developed by Turquoise. The arbitrator's decision was based in large part on Turqoise's successfully raising a statute-of-limitations defense to Gower's claims. The Supreme Court found that Turquoise expressly argued, and then abandoned, one specific statute-of-limitations defense and then it never again urged the arbitrator to apply a statute of limitations to the various claims actually brought by the claimants. Through its arguments, Turquoise distilled the issues and arguments submitted to the arbitrator for consideration. Gower argued, and the Supreme Court agreed, that Turquoise "affirmatively chose to forgo any statute of limitations defense to the [c]laimants' ... claims and therefore did not submit [the] same to the Arbitrator for decision." Therefore, the Supreme Court concluded that because the issue of the applicability of a statute of limitations was not submitted to the arbitrator for decision, the arbitrator exceeded his powers in applying a statute of limitations to Gower's claims. The Court reversed the judgment entered on the arbitrator's award, and remanded the case for further proceedings. View "Gower v. Turquoise Properties Gulf, Inc., et al. " on Justia Law

Cavalier Manufacturing, Inc. appealed a circuit court order that denied its motion to alter, amend, or vacate an arbitration award entered in favor of Janie Gant. Gant purchased a mobile home manufactured by Cavalier from Demopolis Home Center, L.L.C. ("DHC"). At the time of purchase, Gant and representatives of Cavalier and DHC executed an alternative-dispute-resolution agreement in which they agreed to arbitrate any disputes that might arise among them stemming from Gant's purchase of the mobile home. The mobile home was also covered by a manufacturer's warranty issued by Cavalier that likewise contained a provision requiring arbitration of any disputes that might arise between her and Cavalier relating to the mobile home. Gant was not satisfied with the manner in which DHC delivered and installed the mobile home on her property. Eventually Gant sued, and the matter was submitted to arbitration. The arbitrator awarded Gant $45,550 on her breach-of-express-warranty claim, plus an additional sum to be determined for attorney fees. Cavalier argued on appeal that the trial court erred by confirming the arbitration award in favor of Gant. Finding no error, the Supreme Court affirmed. View "Cavalier Manufacturing, Inc. v. Gant " on Justia Law

Raymond James Financial Services, Inc. (RJFS), and its employee, Bernard Michaud appealed a trial court order vacating an arbitration award in their favor and entering a judgment in favor of Kathryn Honea. Honea had multiple investment accounts with Raymond James and sued RJFS alleging violations of the Alabama Securities Act and sought damages for breach of contract, breach of fiduciary duty, negligence, wantonness, and fraud. RJFS moved to compel arbitration, and the trial court granted the motion. An arbitration panel unanimously entered an award in favor of RJFS on Honea's claims. Honea filed a motion at circuit court to vacate the award. The trial court ultimately vacated the award, and RJFS appealed. On appeal, the Supreme Court reversed the trial court's judgment vacating the arbitration award, holding that a provision in the arbitration agreement Honea signed when she opened the accounts required the trial court to conduct a de novo review of the arbitration award, and remanded the case for it to conduct such a review. Both parties acknowledged on appeal that the award had not been entered as a judgment of the trial court. Because the award to RJFS was not entered as a judgment of the trial court as required by statute, the Supreme Court could reach no other conclusion but that the trial court lacked subject-matter jurisdiction to review the award on remand. Accordingly, the trial court's judgment purporting to vacate that award and to enter a judgment in favor of Honea was void. This appeal was dismissed. View "Raymond James Financial Services, Inc. v. Honea " on Justia Law

The O'Neals appealed a circuit court order that granted Bama Exterminating Company, Inc.'s motion to compel arbitration. The dispute arose shortly after the O'Neals closed on the purchase of a house. As part of the loan disclosures, Bama Exterminating prepared an inspection report that the house was termite-free. The report did disclose a prior infestation at the house's carport from several years earlier. Mr. O'Neal signed the report right below the arbitration provision. Two weeks after closing, the O'Neals discovered "bugs" in the walls. They called Bama Exterminating who confirmed that the bugs were termites. The O'Neals then sued Bama Exterminating alleging negligence, wantonness and breach of contract. Bama Exterminating answered their complaint with the affirmative defense of the arbitration clause in the inspection report. The parties moved toward trial in the circuit court. When mediation failed, Bama Exterminating moved the court to compel arbitration. The O'Neals argued that the exterminator waived its right to compel arbitration by its participation in the litigation process. The Supreme Court found the exterminator did not waive its right to compel arbitration, and therefore affirmed the circuit court's decision to grant the company's motion. View "O'Neal v. Bama Exterminating Company, Inc. " on Justia Law

Joe Robertson appealed a circuit court order that held his claims against Mount Royal Towers were subject to an arbitration agreement and compelled him to arbitrate those claims. Finding that Robertson had not met his burden of showing that the arbitration agreements he signed were not applicable in this case, the Supreme Court affirmed the trial court's decision. View "Robertson v. Mount Royal Towers" on Justia Law

Guardian Builders, LLC, and Wayne Tackett (collectively "Guardian") appealed an order that denied its motion to vacate or modify an arbitration award entered in favor of Randy and Melissa Uselton. In April 2010, the Useltons sued Guardian alleging several claims arising from Guardian's construction of a house. Guardian subsequently filed a motion to compel arbitration, and the circuit court granted that motion. The arbitrator entered a final award in favor of the Useltons in the amount of $452,275.20. Upon review, the Supreme Court construed Guardian's motion to vacate or modify the arbitration award of as a notice of appeal under Rule 71B, thus effectuating the appeal of the award to the circuit court. However, because the clerk of the circuit court never entered the award as the judgment of that court, the circuit court's order denying Guardian's motion to vacate or modify was void. "Essentially, Guardian's appeal remains pending in the circuit court, awaiting further procedures under Rule 71B. Further, because Guardian has appealed from the arbitration award under Rule 71B, that award could not be entered as the judgment of the court under 71C. Thus, the circuit court lacked authority to enter a judgment on the award under Rule 71C and to award Better Business Bureau fees and facility costs in connection with the entry of that judgment." View "Guardian Builders, LLC v. Uselton " on Justia Law