Justia Alabama Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
by
Progressive Direct Insurance Company ("Progressive") appealed a circuit court order granting a motion for a partial summary judgment filed by Madison Keen and joined by Robert Creller and Alfa Mutual Insurance Company ("Alfa"); the trial court certified its order as final pursuant to Rule 54(b), Ala. R. Civ. P. In September 2019, Keen was involved in a motor-vehicle accident. She sought compensation from Creller, who was the driver of the other vehicle involved in the accident. The vehicle Creller was driving was owned by his parents and was insured by Alfa. The evidence suggested that Creller and his spouse were living with Creller's parents at the time of the accident. Alfa paid Keen the limits of the insurance policy, and Keen executed a settlement agreement and a release in favor of Creller and Alfa. In June 2021, Keen filed the lawsuit at issue here seeking underinsured-motorist benefits from two different policies, namely, a policy issued by Progressive covering the vehicle Keen was driving at the time of the accident and a policy issued by State Farm Automobile Insurance Company ("State Farm") covering a second vehicle in Keen's household. Because Keen was driving the vehicle insured by Progressive at the time of the accident, her Progressive underinsured-motorist coverage was the primary insurance and the State Farm underinsured-motorist coverage was the secondary insurance. During the litigation, Creller was deposed and revealed the existence of an additional insurance policy covering his spouse's vehicle, which had been issued by Allstate Insurance Company ("Allstate") and which identified Creller as a named insured. The discovery of the Allstate policy raised the possibility that Creller might have had additional liability insurance coverage that could have compensated Keen for her injuries. Based on the alleged existence of additional insurance benefits, she asserted that there had been a mutual mistake among the parties to the settlement agreement and the release. Keen eventually moved for partial summary judgment, arguing the Allstate policy did not provide coverage. For its part, Progressive opposed Keen's motion, because the availability of benefits under the Allstate policy might affect Progressive's interests with respect to Keen's underinsured- motorist claim. The trial court granted Keen's motion and certified its order as final pursuant to Rule 54(b). Progressive appealed. Because it appeared there was a question of fact based on the evidence before the trial court existed when it entered the partial summary judgment, the Alabama Supreme Court reversed that judgment and remanded the case for further proceedings. View "Progressive Direct Ins. Co. v. Keen, et al." on Justia Law

by
This appeal arose from a quo warranto action initiated by a February 2022 complaint filed Frederick A. Burkes, Sr., on the relation of the State of Alabama, in which he alleged that James Franklin "has unlawfully usurped the public office of the constable for District 59 in Jefferson County, Alabama." Franklin moved to dismiss the quo warranto action in June 2022, which the circuit court granted. In July 2022, the Alabama Supreme Court issued its decision in a case related to this quo warranto action, holding the circuit court lacked subject-matter jurisdiction because Burkes had not given the circuit court security for costs, as required by § 6-6-591(b), Ala. Code 1975, and that the circuit court's judgment in the prior action was therefore void. This Court then dismissed the appeal because a void judgment will not support an appeal. Burkes argued here that, because the circuit court did not have subject-matter jurisdiction over the prior action, the circuit court erroneously dismissed the quo warranto action on the grounds of res judicata and collateral estoppel. To this the Supreme Court concurred, reversed dismissal of the quo warranto action, and remanded for further proceedings. View "Burkes v. Franklin" on Justia Law

by
T&J White, LLC, d/b/a Brown Heating & Cooling ("Brown Heating & Cooling"), and its employee, Bobby Morse ("the defendants"), appealed a circuit court’s denial of their motions seeking a judgment as a matter of law ("JML") and a new trial following the entry of judgment on a jury verdict against the defendants and in favor of the plaintiff, Timothy Williams. Morse, while engaged as an employee of Brown Heating & Cooling, rear-ended Williams in a motor-vehicle collision. Thereafter, Williams filed a complaint asserting, among other things, negligence and wantonness claims against the defendants. The case proceeded to trial. After the trial court instructed the jury but before the jury retired, counsel for the parties discussed the verdict form and the jury instructions that had been given. Ultimately, the defendants requested, and received, an additional blank line on the verdict form to allow the jury to award compensatory/nominal damages with respect to the wantonness claim; this additional line was placed just before the line for an award of punitive damages. The court then read the final verdict form to the jurors, and no objections were made. The jury returned a verdict in favor of Williams, awarding the following: $500,000 in compensatory damages for negligence, $250,000 in compensatory damages for wantonness, and $750,000 in punitive damages for wantonness. After the jury was polled, defense counsel orally renewed its motion for a JML based on, among other grounds, the alleged insufficiency of the evidence of wantonness and alleged inconsistency of the verdict. The court denied the motion, concluded the trial proceedings, and entered a final judgment on the verdict. The defendants, appealing the denial of a JML on the wantonness claim and that the trial court exceeded its discretion by denying their motion for a new trial. Finding no reversible error, the Alabama Supreme Court affirmed the trial court. View "Brown Heating & Cooling v. Williams" on Justia Law

by
Consolidated appeals stemmed from an action filed by The Citizens Bank ("Citizens Bank") against Steve Matherly ("Steve"); Sue E. Matherly a/k/a Sue Ellen Stratten, Steve's former spouse ("Sue"); and Penn Waters, LLC ("Penn Waters"). The initial complaint sought: (1) to quiet title to certain real property in Steve; (2) an accounting from Penn Waters as to the balance allegedly owed on a mortgage securing a home-equity line of credit on the same real property; (3) damages from Steve for breach of contract and fraud based on his failure to pay on his personal guaranty of a corporate debt; and (4) a judicial foreclosure of the mortgage securing the indebtedness owed Citizens Bank by Steve. In the course of the proceedings, Steve's current spouse, Jenny Matherly ("Jenny"), intervened as a defendant, claiming a homestead interest in the real property at issue. Eventually, the circuit court entered two orders granting summary judgment in favor of Citizens Bank. The first order awarded the real property in question to Citizens Bank and granted it immediate possession thereof, requiring Steve and Jenny to vacate the property, awarded Jenny $5,000 based on a homestead claim, and required Steve to pay the deficiency balance owed by him to Citizens Bank following foreclosure on the subject real property. The second order concluded that the mortgage held by Penn Waters was void because it had been previously satisfied. Both Jenny and Penn Waters appealed the circuit court's judgments, and Citizens Bank cross-appealed the circuit court's judgment awarding $5,000 to Jenny. Steve did not appeal the judgment against him, and Sue was not a party to the appeals. Finding no reversible error, the Alabama Supreme Court affirmed the circuit court's judgments. View "Penn Waters, LLC v. The Citizens Bank" on Justia Law

by
Alicia Cochran appealed a circuit court order that granted her former employer, CIS Financial Services' motion for a preliminary injunction. CIS was engaged in the mortgage-origination business and employed Cochran as a branch loan originator. In June 2021, Cochran's supervisor at CIS, Randy Lowery, left his employment at CIS to accept a position with Movement Mortgage, LLC ("Movement"). Another CIS employee, Geremy Reese, also left CIS to work for Movement. CIS thereafter filed suit against Lowery and Reese. Among other things, CIS requested in its complaint injunctive relief against Lowery and Reese. Additionally, CIS filed that same day a motion for a preliminary injunction against Lowery and Reese. On August 31, 2021, Cochran resigned her position with CIS. CIS then amended its complaint to include Cochran and Movement as defendants. The only specific count that CIS asserted against Cochran in the amended complaint was one alleging breach of contract. Then CIS moved for the preliminary injunction against Cochran at issue here. On appeal, Cochran challenged the propriety of the circuit court's order granting CIS's motion for a preliminary injunction, arguing that the respective restraining provisions of her compensation agreement and nonsolicitation agreement were not enforceable against her. However, CIS moved to dismiss Cochran's appeal as moot, noting that, by its terms, the preliminary injunction expired after August 31, 2022. CIS argued that this appeal no longer presented a justiciable controversy and that the Alabama Supreme Court, therefore, lacked jurisdiction over the appeal. The Supreme Court found the preliminary injunction challenged in Cochran's appeal expired by its own terms. Consequently, the Supreme Court lacked the power to grant Cochran relief from the preliminary injunction; therefore, this appeal was no longer justiciable and has become moot. The appeal was therefore dismissed. View "Cochran v. CIS Financial Services, Inc." on Justia Law

by
The City of Helena ("Helena") appealed the issuance of a preliminary injunction by the Shelby Circuit Court in favor of the Pelham Board of Education ("the Board") and its officers and/or members, in their official capacities (collectively, "the Board defendants"). In June 2021, the Board purchased approximately 52 acres of undeveloped land located within the corporate limits of Helena. The land has not been annexed by the City of Pelham or the Board. Helena collects property taxes on the land, and the land was zoned for single-family residential use under a Helena zoning ordinance. After purchasing the land, the Board began clearing the land for the purpose of constructing one or more athletic fields and a parking lot as part of the Pelham High School campus. Pelham High School was located adjacent to the land but lied within the corporate limits of the City of Pelham. The athletic-field project was originally scheduled to be completed on or before January 17, 2022, but it was delayed by Helena's attempts to enforce its zoning ordinance, which was an issue in this case. Helena asserted in its complaint, among other things, that the Board has no statutory authority to construct the athletic-field project within the corporate limits of Helena. The Board defendants counterclaimed, seeking sought declaratory and injunctive relief based on their position that the athletic-field project served a governmental purpose and, therefore, was not subject to Helena's zoning ordinance. Finding that the trial court did not follow the mandatory requirements of Rule 65(d)(2), the preliminary injunction was dissolved and the order issuing the injunction was, therefore, reversed and the case remanded. View "City of Helena v. Pelham Board of Education, et al." on Justia Law

by
Christopher Ellis worked for CSX Transportation, Inc. as a remote-control foreman at CSX's Montgomery yard. While riding on the ladder of a railcar during the course of his employment with CSX, Ellis was struck in the torso by the broken door handle and latch assembly of a railcar on an adjacent track. The impact of the blow knocked Ellis off the railcar on which he was riding, causing him to suffer significant injuries. On November 17, 2020, Ellis sued CSX asserting claims under the Federal Employers' Liability Act ("FELA"), and the Safety Appliance Act ("the SAA"). Ellis propounded 25 multipart interrogatories and 62 requests for production to CSX with his complaint. CSX petitioned the Alabama Supreme Court for a writ of mandamus directing the Montgomery Circuit Court to, among other things, vacate its order granting Ellis's motion to compel discovery and either enter an order denying Ellis's motion to compel or a protective order barring production of materials CSX contends to be protected work product or patently irrelevant. The Supreme Court granted the petition for mandamus relief in part and directed the trial court to vacate its order to the extent that it requires the production of materials contained in the company's risk management system ("RMS") in violation of the work-product doctrine. The Court denied the petition in all other respects. View "Ex parte CSX Transportation, Inc." on Justia Law

by
Plaintiffs Cathedral of Faith Baptist Church, Inc., and Lee Riggins appealed a circuit court judgment dismissing their complaint against defendants Donald Moulton, Sr. and Broken Vessel United Church on grounds that the claims asserted in the complaint were barred by the applicable statute of limitations. Riggins was a stockholder and the chairman of the board of Cathedral of Faith Baptist Church, Inc. ("Cathedral"), which owned property located in Birmingham where it operated Cathedral Church. Worship services were conducted at Cathedral Church until the Church's membership dwindled and its services were discontinued; legal title to the Cathedral Church property ultimately vested in Riggins. In 2014, Riggins leased the Cathedral Church property to Moulton, the pastor of Broken Vessel United Church. Moulton and Broken Vessel agreed to pay the commercial-liability insurance that Cathedral maintained with Planter's Insurance. In July 2016, Moulton and Broken Vessel changed the insurance carrier from Planter's Insurance to Nationwide Mutual Insurance Company without Cathedral and Riggins's knowledge or consent. The application for insurance that Moulton submitted to Nationwide contained multiple false statements. On November 26, 2016, Cathedral Church was destroyed by a fire. Moulton made a claim to Nationwide regarding the Cathedral Church property and its contents. In August 2017, Riggins discovered a "property settlement with Nationwide." Riggins subsequently discovered both a general warranty deed, dated January 1, 2012,1 that had been filed in the Jefferson County Tax Assessor's office on January 16, 2015, purporting to convey title to Cathedral Church from Riggins to Broken Vessel for $150,000, as well as a corrected deed that had been filed in January 2018. Deficiencies existed on the face of both the original warranty deed and the corrected deed. The trial court ultimately entered an order dismissing the claims against defendants. The Alabama Supreme Court reversed, finding the complaint was filed within the 10-year limitations period set forth by the applicable statute. View "Cathedral of Faith Baptist Church v. Moulton, et al." on Justia Law

Posted in: Civil Procedure
by
Gwendolyn Barnett appealed orders granting relief to Robert Lee Hull, Jr. Barnett and Hull are siblings and the sole legal heirs of their father, Robert Lee Hull, Sr. ("Robert"), who died testate. Pursuant to Robert's will, Hull and Barnett were listed as beneficiaries entitled to equal shares of his estate and Barnett was named personal representative of his estate. Hull filed a complaint against Barnett, arguing that in her role as "a partial caretaker of [Robert]" before his death, had exerted undue influence over Robert and had gained control of Robert's personal property and assets. According to Hull, in the absence of Barnett's purported misconduct, items that Barnett allegedly misappropriated would "have become part of [Robert's] estate." Barnett moved ti dismiss her brother's tort action, claiming that Hull's complaint in the tort action realleged claims purportedly "identical" to claims that Hull had previously asserted in the estate administration, which had been dismissed. The trial court granted Hull's motion in full and denied Barnett's motion to dismiss. On appeal, among other things, Barnett contended the trial court lacked jurisdiction over Hull's claims in the tort action, which she described as "central to the administration of the estate," while the estate administration remained separately pending. In her filings to the Supreme Court, Barnett characterized Hull's claims as "seek[ing] to identify property which he alleges should have been considered property of the Estate ... in the [first-filed] estate administration." To this, the Alabama Supreme Court agreed. Therefore, the trial court lacked jurisdiction over matters relating to the pending estate administration, and lacked jurisdiction to enter the the injunctive order or the subsequent show-cause order compelling Barnett's compliance with the injunctive order. The Supreme Court thus reversed all orders entered by the trial court in the tort action and remanded the matter for that court to enter an order dismissing Hull's complaint. View "Barnett v. Hull" on Justia Law

by
Premier Plastic Surgery, P.C. ("Premier") petitioned the Alabama Supreme Court for a writ of mandamus directing the Jefferson Circuit Court to vacate its order denying Premier's motion for a change of venue in this medical-malpractice action brought by plaintiff Deborah Bush, and to enter an order transferring the action to the Shelby Circuit Court. Premier offered cosmetic and reconstructive surgery at its medical facility located in Shelby County. Bush went to Premier's medical facility to receive a consultation from Dr. Peter Van Hoy. It is undisputed that all of Bush's treatment by Dr. Van Hoy occurred at Premier's medical facility. In December 2017, Dr. Van Hoy died. Because he was Premier's sole shareholder, director, and owner, Premier was dissolved in September 2018. In June 2019, Bush filed suit at the Jefferson Circuit Court relating to her surgical procedure and treatment by Dr. Van Hoy. Bush's complaint also alleged that she was a resident of Jefferson County. Premier denied all allegations and argued that because the surgical procedure and treatment at issue in Bush's action occurred at Premier's medical facility in Shelby County, venue was proper in Shelby County. In her response to Premier's motion, Bush did not dispute that Shelby County was the proper venue for the action. Instead, she argued that because Premier's motion was filed almost three years after the litigation began and only three weeks before the scheduled trial, the motion cannot be deemed timely. The Supreme Court concurred that Premier's challenge to venue had been waived and denied the petition for mandamus relief. View "Ex parte Premier Plastic Surgery, P.C." on Justia Law