Justia Alabama Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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A young woman was seriously injured when the passenger airbag in a 1998 Infiniti QX4 deployed during a low-speed collision, causing permanent vision loss in one eye. She was wearing her seatbelt at the time. The accident occurred when another vehicle exited a parking lot and collided with the Infiniti. The injured party, initially represented by her mother as next friend, sued the vehicle’s manufacturer, alleging that the airbag system was defectively designed and that safer alternative designs were available at the time of manufacture.The case was tried in the Mobile Circuit Court. During voir dire, two jurors failed to disclose their prior involvement as defendants in civil lawsuits, despite being directly asked. After a jury awarded $8.5 million in compensatory damages to the plaintiff on her Alabama Extended Manufacturer’s Liability Doctrine (AEMLD) claim, Nissan discovered the nondisclosures and moved for judgment as a matter of law, a new trial, or remittitur. The trial court denied all motions, finding that substantial evidence supported the verdict and, although it believed probable prejudice resulted from the jurors’ nondisclosures, it felt bound by Alabama Supreme Court precedent to deny a new trial.On appeal, the Supreme Court of Alabama affirmed the denial of Nissan’s renewed motion for judgment as a matter of law, holding that the plaintiff presented substantial evidence of a safer, practical, alternative airbag design. However, the Court reversed the denial of the motion for a new trial, concluding that the trial court erred in believing it lacked discretion due to prior case law. The Supreme Court clarified that the trial court retained discretion to determine whether the jurors’ nondisclosures resulted in probable prejudice and remanded the case for the trial court to exercise that discretion. View "Nissan North America, Inc. v. Henderson-Brundidge" on Justia Law

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The dispute arose when a property owner obtained a building permit from a city and was required, under the city’s standard procedures, to submit a form containing financial information about subcontractors before the city would conduct necessary inspections and issue a certificate of occupancy. The property owner refused to provide the requested information, leading the city to withhold inspections. As a result, the property owner filed suit, seeking a declaratory judgment that the city lacked authority to require such information and requesting an order compelling the city to perform the inspections. The owner also sought damages for delays allegedly caused by the city’s refusal to inspect.After the property owner settled with the city’s building inspector, the case proceeded in the Baldwin Circuit Court. The jury was asked to decide both the declaratory judgment and damages claims, ultimately finding in favor of the property owner and awarding over $3.5 million in damages. The city appealed. The Supreme Court of Alabama, in a prior decision, held that the damages claim was barred by substantive immunity and reversed the damages award, but did not address the declaratory judgment claim, remanding the case for further proceedings.On remand, the Baldwin Circuit Court entered judgment for the property owner on the declaratory judgment claim but did not award damages. The city appealed again. The Supreme Court of Alabama held that, because the inspections had already been completed and all requested relief had been granted or resolved, no justiciable controversy remained. Therefore, the trial court lacked subject matter jurisdiction to enter a declaratory judgment. The Supreme Court of Alabama reversed the trial court’s judgment and remanded the case for dismissal. View "City of Orange Beach v. Boles" on Justia Law

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A Georgia limited-liability company owned and operated a hotel in Birmingham, Alabama, which was subject to a $10,710,000 loan secured by a mortgage, an assignment of leases and rents, and other collateral. The loan was eventually assigned to a bank acting as trustee for a mortgage trust. After the hotel owner allegedly defaulted on its loan obligations and mismanaged the property, the bank filed a complaint in the Jefferson Circuit Court seeking the appointment of a receiver to manage the hotel and ensure payment of operating expenses. The court appointed a receiver and issued orders outlining the receiver’s duties, including managing the hotel and paying its expenses.Following the appointment, disputes arose between the hotel owner, the receiver, and the bank regarding whether the receiver was required to pay expenses incurred before the receivership began (“pre-receivership claims”). The hotel owner sought to compel the receiver to pay these claims, while the receiver and the bank objected, arguing that such payments could harm the receivership estate and improperly prioritize unsecured creditors over the secured lender. The circuit court ultimately issued an order in July 2024 clarifying that the receiver was required to pay pre-receivership expenses, prompting the receiver to appeal.The Supreme Court of Alabama reviewed whether the July 2024 order was an appealable interlocutory injunction and whether the circuit court erred in requiring the receiver to pay pre-receivership claims without regard to creditor priority. The court held that the order was injunctive in nature and appealable. It further held that the circuit court exceeded its discretion by requiring the receiver to pay all pre-receivership claims unconditionally, as this could harm the receivership estate and the interests of priority creditors. The Supreme Court reversed the July 2024 order and remanded the case for further proceedings. View "Kolessar v. SJP Investment Partners, LLC" on Justia Law

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The case concerns an automobile accident that occurred in rural Tuscaloosa County, Alabama, on January 3, 2024. James Godwin, a resident of Dallas County and employee of Talton Communications, Inc., was driving a company vehicle when he was rear-ended by Desi Bernard Peoples, a resident of Fayette County. Godwin subsequently filed suit in the Dallas Circuit Court against Peoples, his employer Talton, and Penn National Security Insurance Company, which provided uninsured/underinsured motorist coverage. Godwin’s claims included negligence and wantonness, a claim for uninsured/underinsured motorist benefits, and a workers’ compensation claim against Talton. Godwin received all medical treatment for his injuries in Dallas County, where he and his wife reside and work.After the complaint was filed, Penn National moved to sever the workers’ compensation claim and to transfer the remaining claims to the Tuscaloosa Circuit Court, arguing that transfer was warranted for the convenience of the parties and witnesses and in the interest of justice under Alabama’s forum non conveniens statute, § 6-3-21.1. The Dallas Circuit Court denied the motion to sever but ordered the workers’ compensation claim to be tried separately. The court also denied the motion to transfer, finding insufficient evidence that Tuscaloosa County was a significantly more convenient forum or that Dallas County had only a weak connection to the case.The Supreme Court of Alabama reviewed Penn National’s petition for a writ of mandamus seeking to compel transfer. The Court denied the petition, holding that Penn National failed to meet its burden of showing that Tuscaloosa County was significantly more convenient or that Dallas County’s connection to the case was weak. The Court emphasized that the plaintiff’s choice of venue is entitled to deference when both venues are proper and that the evidence presented did not justify overriding that choice. View "Ex parte Penn National Security Insurance Company" on Justia Law

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A Georgia corporation operates several hospitals and clinics in west Georgia and, through an affiliated entity, also operates a small hospital and clinics in east Alabama. An Alabama resident sought treatment at the Alabama hospital and was subsequently transferred by ambulance to the corporation’s Georgia facility for a heart-catheterization procedure. The procedure was performed by a Georgia-based physician employed by the corporation, who is not licensed in Alabama and has never practiced there. The patient alleges that the physician’s negligence during the procedure in Georgia caused him to suffer renal failure and require further medical intervention. The patient sued both the corporation and the physician in the Randolph Circuit Court in Alabama, asserting claims under both Alabama and Georgia medical liability statutes and alleging the corporation’s vicarious liability for the physician’s actions.The physician and the corporation moved to dismiss the case, arguing that the Alabama court lacked personal jurisdiction over them and that venue was improper. The circuit court dismissed the claims against the physician for lack of personal jurisdiction but denied the corporation’s motion to dismiss. The corporation then petitioned the Supreme Court of Alabama for a writ of mandamus to direct the circuit court to dismiss the claims against it.The Supreme Court of Alabama held that the corporation was not subject to general jurisdiction in Alabama, as it was neither incorporated nor had its principal place of business there. However, the Court found that specific personal jurisdiction existed because the patient’s treatment began at the Alabama facility operated by the corporation, and the subsequent care in Georgia was sufficiently related to the corporation’s activities in Alabama. The Court also concluded that the corporation had not demonstrated a clear legal right to dismissal based on improper venue, as it had not adequately addressed whether Alabama’s venue statute applied to claims brought under another state’s law. The petition for a writ of mandamus was denied. View "Ex parte Tanner Medical Center, Inc." on Justia Law

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After the death of Arthur L. Bacon, Richard D. Gaynor, acting as the personal representative of Bacon’s estate, filed a lawsuit against Tom L. Larkin and Jerome B. Williams. The complaint alleged that a durable power of attorney in favor of Larkin was recorded shortly after Bacon’s death, though it was purportedly executed in 2019. It further claimed that, just hours before Bacon died, Larkin executed a deed transferring all of Bacon’s real property to Williams. The estate sought to void the conveyance and requested damages.Williams and Larkin each filed motions to dismiss. The Talladega Circuit Court granted Larkin’s motion to dismiss on March 3, 2025, but did not resolve the claims against Williams. On the same day, the court ordered the plaintiff to amend the complaint within 30 days to include necessary heirs or real parties in interest. Gaynor requested more time to respond, which both defendants opposed. On April 11, 2025, Gaynor filed a notice of appeal to the Supreme Court of Alabama, challenging the dismissal of Larkin. Subsequently, the circuit court entered an order stating that the dismissal of Larkin was a final order for purposes of appeal, referencing Alabama Rules of Civil Procedure.The Supreme Court of Alabama reviewed whether it had jurisdiction over the appeal. The Court held that, because the circuit court’s order did not dispose of all claims against all parties and lacked a proper Rule 54(b) certification at the time the notice of appeal was filed, there was no final judgment. The Court declined to remand for possible certification and dismissed the appeal for lack of a final, appealable order. View "Gaynor v. Larkin" on Justia Law

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Hexagon US Federal, Inc. ("HexFed") leased a portion of a building, which was later sold to CBS Holdings, LLC. A dispute arose regarding the lease's renewal, leading HexFed to file a lawsuit against CBS Holdings for breach of lease. CBS Holdings counterclaimed. The Madison Circuit Court ruled in favor of HexFed on all claims and awarded costs and attorney fees to be determined later. CBS Holdings appealed, and the Supreme Court of Alabama affirmed the trial court's judgment, including the award of costs and attorney fees.After an evidentiary hearing, the Madison Circuit Court awarded HexFed $174,987.45 in costs and attorney fees. CBS Holdings appealed, arguing that HexFed's application for attorney fees was inadequately supported due to redacted descriptions of legal work and that the trial court's order lacked sufficient detail for meaningful appellate review.The Supreme Court of Alabama reviewed the case and agreed with CBS Holdings. The court found that HexFed's heavily redacted invoices did not provide enough information to determine the reasonableness and necessity of the attorney fees. The court emphasized that a trial court's order must allow for meaningful appellate review by articulating the decisions made, the reasons supporting those decisions, and how the attorney fee was calculated, considering all the Peebles factors.The Supreme Court of Alabama reversed the trial court's order and remanded the case for HexFed to provide adequate support for its application for costs and attorney fees. The trial court was instructed to accept any necessary information or evidence to confirm the requested attorney fees and to enter a detailed order showing how it calculated the amount awarded and how it considered the Peebles factors. View "CBS Holdings, LLC v. Hexagon US Federal, Inc." on Justia Law

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Faya Rose Toure sued the City of Selma, Chief of Police Spencer Collier, and police officer Devon McGuire following her arrest for fourth-degree theft of property and attempting to elude. Toure claimed McGuire and Collier committed assault and battery, false arrest, unlawful imprisonment, invasion of privacy, negligence, wantonness, abuse of legal process, unreasonable seizure, and defamation/libel. She also accused the City of negligent hiring, training, and supervision, and fostering a custom of police abuse. Toure sought $1,000,000 in compensatory damages and $3,000,000 in punitive damages.The defendants filed for summary judgment, citing peace-officer and State-agent immunity. They provided evidence including deposition testimonies, incident reports, and body camera footage showing McGuire witnessed Toure removing a campaign sign and subsequently attempting to elude him. Toure argued she removed the sign believing it was illegally placed and felt intimidated by McGuire, who was in an unmarked vehicle. The trial court granted summary judgment for the City but denied it for McGuire and Collier.The Supreme Court of Alabama reviewed the case. It found that McGuire and Collier were performing discretionary functions within their law enforcement duties, entitling them to immunity. The court determined that McGuire had at least arguable probable cause for Toure's arrest, and Toure failed to provide substantial evidence that McGuire or Collier acted willfully, maliciously, or beyond their authority. Consequently, the court held that McGuire and Collier were entitled to peace-officer and State-agent immunity and directed the trial court to enter summary judgment in their favor. The petition for a writ of mandamus was granted, and the writ was issued. View "Ex parte McGuire" on Justia Law

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Nathan Nash was involved in an automobile collision in Tuscaloosa County with a truck driven by Joshua Hunter Jones and owned by Davis Ice Cream Alabama, LLC. Nash filed a complaint in Jefferson County against Jones for negligence and wantonness, and against Davis Ice Cream for negligent training and hiring. Nash and Jones reside in counties adjacent to Jefferson County, and Davis Ice Cream's principal place of business is in Jefferson County. Nash received medical treatment and had an employer in Jefferson County.The Jefferson Circuit Court transferred the case to the Tuscaloosa Circuit Court based on a motion by Davis Ice Cream, citing Alabama's forum non conveniens statute. Nash objected, highlighting his medical treatment and employer connections in Jefferson County. After the transfer order, Nash filed a motion for reconsideration and then petitioned the Supreme Court of Alabama for a writ of mandamus.The Supreme Court of Alabama reviewed the case and determined that the Jefferson Circuit Court exceeded its discretion in transferring the case. The Court noted that Davis Ice Cream's principal place of business and Nash's medical providers and employer were in Jefferson County, establishing a strong connection to the action. In contrast, Tuscaloosa County's only connection was the location of the collision. The Court concluded that Davis Ice Cream failed to demonstrate that Tuscaloosa County had a strong connection to the action and that Jefferson County had a weak connection. Therefore, the Supreme Court of Alabama granted Nash's petition for a writ of mandamus and directed the Jefferson Circuit Court to vacate its order transferring the case to the Tuscaloosa Circuit Court. View "Ex parte Nash" on Justia Law

Posted in: Civil Procedure
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Michael Straus wired $60,000 to an account at GBC International Bank (GBC) owned by Apex Oil and Gas Trading, LLC (Apex). Apex allegedly failed to provide the services Straus paid for, withdrew the funds, and disappeared. Straus sued GBC in May 2024, claiming negligence and wantonness, alleging GBC closed Apex's account knowing Apex was engaged in fraud. Straus argued GBC's website acknowledged its obligations under the Patriot Act to prevent such fraud.The Jefferson Circuit Court denied GBC's motion to dismiss for lack of personal jurisdiction. GBC then petitioned the Supreme Court of Alabama for a writ of mandamus to direct the circuit court to dismiss the case.The Supreme Court of Alabama reviewed the case de novo. GBC argued it had no general or specific personal jurisdiction in Alabama, supported by an affidavit from its executive vice president and chief financial officer, Richard Holmes. Holmes stated GBC had no business operations, property, or targeted advertising in Alabama. Straus's response included an unsworn declaration, which the court found insufficient to establish jurisdiction.The Supreme Court of Alabama held that Straus's unilateral action of wiring money to GBC did not establish specific personal jurisdiction. GBC's general statements on its website about compliance with federal law did not constitute purposeful availment of conducting activities in Alabama. The court concluded that GBC did not have the minimum contacts necessary to subject it to personal jurisdiction in Alabama. Therefore, the court granted GBC's petition and directed the circuit court to dismiss Straus's complaint. View "Ex parte GBC International Bank" on Justia Law