Articles Posted in Civil Procedure

SE Property Holdings, LLC ("SEPH") appealed the grant of summary judgment entered in favor of Bank of Franklin ("BOF") on BOF's claim demanding specific performance of a contractual provision. In March 2005, Vision Bank, a Florida company, loaned Bama Bayou, LLC, formally known as Riverwalk, LLC ("the borrower"), $6,000,000. Multiple individuals allegedly personally guaranteed repayment of the loan ("the guarantors"). In June 2008, pursuant to a "participation agreement," Vision Bank conveyed to BOF a 25 percent interest in the loan. Vision Bank conveyed additional participation interests in the loan to other banks. The borrower and the guarantors allegedly defaulted on their obligations with respect to the loan, and in January 2009 Vision Bank filed suit against them. The borrower and the guarantors asserted counterclaims against Vision Bank and brought BOF into the action as an additional counterclaim defendant. In April 2009, Vision Bank foreclosed on a mortgage securing the loan. Vision Bank was the highest bidder at the foreclosure sale and thereafter executed foreclosure deeds in favor of BOF and the other participating banks. In 2012, Vision Bank sold its operating assets to Centennial Bank and relinquished its Florida bank charter. Vision Bank and SEPH entered into an "agreement and plan of merger," whereby Vision Bank merged "with and into" SEPH. In October 2016, the trial court entered an order setting aside the foreclosure sale and declaring the foreclosure deeds void. Among other things, BOF asserted in its cross-claim that SEPH had an obligation to repurchase BOF's participation interest in the loan. In support, BOF pointed to the participation agreement between BOF and SEPH's predecessor, Vision Bank. The court granted BOF's motion for summary judgment on its claim for specific performance based on the participation agreement. SEPH argued on appeal that the trial court erred in determining that a "proceeding" involving Vision Bank's termination of existence was "commenced," so as to invoke the contractual provision; it asserted Vision Bank's voluntary merger with SEPH was not a "proceeding." The participation agreement in this case stated that BOF's participation interest was conveyed without recourse, but the contract provision provided BOF at least some security in the form of a right to force the repurchase of its participation interest in the event of the financial deterioration of the originating bank, i.e., Vision Bank. The Alabama Supreme Court concluded the voluntary merger like the one entered into by Vision Bank and SEPH is not a "proceeding" as that term is used in the participation agreement, and reversed the trial court's judgment ordering SEPH to purchase BOF's participation interest. View "SE Property Holdings, LLC, f/k/a Vision Bank v. Bank of Franklin" on Justia Law

Hinkle Metals & Supply Company, Inc. ("Hinkle") was in the business of selling heating, ventilation, and air-conditioning supplies and equipment. Gabriel Butterfield was employed as a branch manager at Hinkle's Pelham office. In 2015, a GMC Sierra pickup truck owned and driven by Butterfield struck Diane Feltman as she was attempting to walk cross 20th Street in downtown Birmingham. As a result of that accident, Feltman sustained multiple injuries. Feltman sued Butterfield and Hinkle, alleging that Butterfield, while acting within the line and scope of his employment with Hinkle, had been negligent and wanton in causing the accident and that Hinkle was vicariously liable based on a theory of respondeat superior. Hinkle moved for summary judgment on all claims against it, arguing it was not vicariously liable for Butterfield's alleged actions because, it said, Butterfield was not acting within the line and scope of his employment with Hinkle at the time of the accident. The motion was denied, trial proceeded, and judgment was entered against Hinkle on vicarious liability. Hinkle's motion for judgment as a matter of law was denied, and a verdict was returned for $375,000 in favor of Butterfield. Finding that the trial court did not err in denying Hinkle's motion for judgment as a matter of law, the Alabama Supreme Court affirmed judgment in Butterfield's favor. View "Hinkle Metals & Supply Company, Inc. v. Feltman" on Justia Law

Clifford Wright ("Wright"), the administrator of the estate of Mary Evelyn Wright ("Mary") appealed a summary judgment entered in favor of Dawn Reid, Phyllis Harris, and Tuwanda Worrills (collectively referred to as "the nurses"), who, during all relevant times, were employed by the Cleburne County Hospital Board, Inc., d/b/a Cleburne County Nursing Home ("the Hospital Board"). Mary complained she suffered injuries from a fall while a resident of a nursing home operated by the Hospital Board. Mary allegedly died from her injuries the day after her complaint was filed. Wright was appointed the administrator of Mary's estate and was substituted as the plaintiff. As amended, Wright's complaint asserted claims against the nurses, the Hospital Board, and various fictitiously named parties under the Alabama Medical Liability Act. Wright's claim against the Hospital Board included 13 separate allegations of negligence. Wright's claims against each of the nurses included 13 separate allegations of negligence. Additionally, Wright alleged that the Hospital Board was vicariously liable for the actions of its agents, specifically, the actions of the nurses. The Alabama Supreme Court concluded the trial court exceeded its discretion in certifying the summary judgment in favor of the nurses as a final judgment pursuant to Rule 54(b). Accordingly, the trial court's Rule 54(b) certification was invalid; this appeal was from a nonfinal judgment; and the Supreme Court dismissed the appeal. View "Wright v. Harris, et al." on Justia Law

The Alabama Surface Mining Commission ("the Commission") and Black Warrior Minerals, Inc. ("Black Warrior"), separately petitioned the Alabama Supreme Court for a writ of mandamus to direct the Jefferson Circuit Court to dismiss the underlying action seeking judicial review of the Commission's issuance of a surface-coal-mining permit to Black Warrior, or, in the alternative, to transfer the action to the Walker Circuit Court. The underlying action was filed by respondents, John Crane, Dan Jett, and Linda Jett ("the property owners"), who owned property near the location that was the subject of the permit. The Supreme Court found that when originally enacted, the Alabama Surface Mining Act did not include a venue provision. Alabama law was amended to specify that the proper venue for judicial review of a final Commission decision was "in the circuit court of the county in which the commission maintains its principal office." Under the plain language of the applicable statute, the only proper venue for the property owners' action was the Walker County circuit court. The property owners contended that, at the time they commenced their appeal with the Jefferson Circuit Court, the 2015 amendment to the applicable statute was not effective and the earlier version applied. Finding that the 2015 statute was properly enacted, the Supreme Court held "the effective date for such a change in state law should be the date determined by the Alabama Legislature, not the date of approval by the [Office of Surface Mining Reclamation and Enforcement]," thus the Commission and Black Warrior demonstrated a clear legal right to have their underlying action transferred to the Walker Circuit Court. View "Ex parte Alabama Surface Mining Commission." on Justia Law

Mercedes-Benz U.S. International, Inc. ("MBUSI"), petitioned the Alabama Supreme Court for mandamus relief, ordering the circuit court to vacate an order denying change of venue from Jefferson County to Tuscaloosa. Gregory Nix was a resident of Jefferson County; he was employed as an assembly worker at MBUSI's manufacturing facility in Tuscaloosa County until June 23, 2017. Nix alleges that, during his employment with MBUSI, he suffered on-the-job injuries the cumulative effect of which have left him permanently and totally disabled. The Supreme Court determined there was not sufficient evidence before the trial court to support a conclusion that venue in Jefferson County was proper in this case. "The regular purchasing of parts or materials from a supplier located in a certain county, by itself, does not constitute '[doing] business by agent' in that county under section 6-3-7(a)(3), Ala. Code 1975." The Court therefore issued the writ granting mandamus relief. View "Ex parte Mercedes-Benz U.S. International, Inc." on Justia Law

Mary Chmielewski, as personal representative of the estate of Yvonne Speer Hoover, deceased; Grace Ellis; and Roger Stone petitioned the Alabama Supreme Court for a writ of mandamus directing the Baldwin Circuit Court to vacate an order purporting to set aside its earlier dismissal of a will contest. Hoover executed a will in May 2017. Hoover's will designated Tere Mills as a beneficiary of Hoover's estate. A codicil to Hoover's will was executed shortly before Hoover died in July 2017. The codicil eliminated Mills as a beneficiary of Hoover's estate and added Ellis and Stone as beneficiaries. After Hoover died, her will, along with the codicil, was admitted to probate, and letters testamentary were issued to Chmielewski. Thereafter, pursuant to section 43-8-199, Ala. Code 1975, Mills filed a petition in the circuit court contesting the validity of Hoover's will, as amended by the codicil. It was alleged that the circuit court entered final orders disposing of the action and, no postjudgment motion having been filed within 30 days, lost jurisdiction over the matter. Thereafter, the circuit court, allegedly without jurisdiction, entered an order purporting to grant a postjudgment motion and to reinstate the proceedings. Because the Supreme Court concluded that the proceedings were indeed dismissed, it granted the petition and directed the circuit court to set aside its order purporting to vacate the dismissal. View "Ex parte Chmielewski" on Justia Law

Ace American Insurance Company ("Ace"), an intervenor in the action below, appeals from the Baldwin Circuit Court's dismissal of the action filed by Ace's insured, Willie James Westbrook, against Rouse's Enterprises, LLC, d/b/a Rouses Markets ("Rouses Markets"). In August 2016, Westbrook sued Rouses Markets seeking to recover damages for injuries he sustained as the result of the allegedly negligent operation of a pallet jack by a Rouses Markets' employee while Westbrook was delivering goods to the Rouses Markets' location in Spanish Fort during the course of his employment with Cardinal Logistics Management Corporation ("Cardinal"). The Alabama Supreme Court has stated previously that, "'since dismissal with prejudice is a drastic sanction, it is to be applied only in extreme situations' and that, as a result, 'appellate courts will carefully scrutinize such orders and occasionally will find it necessary to set them aside.'" The Court could not say that the circumstances presented by this case presented an extreme situation in which dismissal of Ace's claim for want of prosecution was warranted. Accordingly, it reversed the judgment of the trial court dismissing Ace's claim and remanded the case for further proceedings. View "Ace American Insurance Company v. Rouse's Enterprises, LLC, d/b/a Rouses Markets" on Justia Law

Advanced Disposal Services South, LLC; Advanced Disposal Services Alabama Holdings, LLC; Tallassee Waste Disposal Center, Inc.; Advanced Disposal Services, Inc.; and Stone's Throw Landfill, LLC (collectively, "Advanced Disposal"), petitioned the Alabama Supreme Court for a writ of mandamus to direct the Circuit Court either to join the City of Tallassee ("the City") as a necessary and indispensable party to the underlying action filed by Jerry Tarver, Sr., or, alternatively, to dismiss the action in its entirety, pursuant to Rule 19, Ala. R. Civ. P. The Supreme Court granted the petition and issued the writ, making no determination whether joinder would be feasible or whether the City was an indispensable party. Tarver filed an application for rehearing, arguing in its September 28, 2018 opinion, the Supreme Court "recast" his claims to reach the conclusion that the City was a necessary party to this action. He argued that the Court's reasoning on original submission was dependent on the notion that he sought to address the whole of the effluent the City discharges into the Tallapoosa River ("the river") when, he claimed, he sought to enjoin only the quantity of the leachate Advanced Disposal deposited into the City's stabilization pond. Tarver then argued that not only did the Court's analysis depend on a recasting of his claims, but the Court also relied on facts not before the circuit court in support of that recasting, namely, "facts as to the percentage of the effluent attributable to [Advanced Disposal's] leachate compared to the percentage of the effluent attributable to other sources." In overruling Tarver's application, the Supreme Court held Tarver's arguments misapprehended its opinion; the figures cited in note 5 of the opinion on original submission were consistent with the allegations in the complaint that the stabilization pond treats "substantial amounts" of waste from parties other than Advanced Disposal. View "Ex parte Advanced Disposal Services South, LLC, et al." on Justia Law

Mobile Infirmary Association d/b/a Mobile Infirmary Medical Center ("Mobile Infirmary") filed a petition for a writ of mandamus asking the Alabama Supreme Court to direct the Mobile Circuit Court to vacate paragraph 11 of its February 6, 2018, protective order. Lula Battle, as personal representative of the estate of Willie Trainor-Battle, filed a wrongful-death complaint against Mobile Infirmary, Dr. Rabin Shrestha, Jr., and various fictitiously named defendants. In the complaint, Battle alleged that Trainor-Battle was admitted to Mobile Infirmary Medical Center ("the hospital") for the treatment of a sickle-cell crisis with severe pain; hospital personnel attempted to manage the pain by using IV administration of Demerol, methadone, and Phenergan; Trainor-Battle was found unresponsive and not breathing; efforts to resuscitate Trainor-Battle were unsuccessful; and that Trainor-Battle was pronounced dead. Battle filed a proposed protective order that included the language ("Paragraph 11") to which Mobile Infirmary had previously stated its opposition. Mobile Infirmary moved to reconsider or delete the paragraph entirely; the trial court denied the motion. Mobile Infirmary argued that paragraph 11 of the protective order "provides an extra-procedural method for introducing documents produced in the instant case into other cases, contrary to the Alabama Rules of Civil Procedure and Alabama Code 6-5-551, Ala. Code 1975." Pursuant to paragraph 11 of the protective order, Battle's counsel will be allowed to share any confidential information counsel obtains in this case with medical- malpractice plaintiffs in other cases against Mobile Infirmary, so long as those other plaintiffs are represented by Battle's counsel's law firm, regardless of whether such evidence is related to any acts or omissions alleged by those plaintiffs. The Supreme Court determined Mobile Infirmary established a clear legal right to the relief sought. Accordingly, it granted the petition for a writ of mandamus and directed the trial court to vacate paragraph 11 of its February 6, 2018 protective order. View "Ex parte Mobile Infirmary Association d/b/a Mobile Infirmary Medical Center." on Justia Law

The State appealed a circuit court order that, among other things, dismissed its claims against Volkswagen AG ("VWAG"). The State had filed a complaint claiming VWAG and other defendants, violated the Alabama Environmental Management Act ("the AEMA"), and the Alabama Air Pollution Control Act of 1971 ("the AAPCA") when cars VWAG produced had "defeat devices" installed, designed to alter emissions readings on cars with diesel engines. In other words, the complaint alleged defendants had tampered with the emission-control systems or ordered third parties to tamper with the emission-control systems of vehicles that were licensed and registered in the State of Alabama. Giving its reasons for dismissal, the Supreme Court determined that given the unique factual situation involved in this case, and based on reasoning set by the multi-district litigation court, allowing the State to proceed would "stand as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress." Therefore, the trial court properly granted VWAG's motion to dismiss. View "Alabama v. Volkswagen AG" on Justia Law