Justia Alabama Supreme Court Opinion Summaries

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

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

Capmark Bank appealed a preliminary injunction entered in favor of RGR, LLC; MB Park, LLC; TTM MB Park, LLC; Robert G. Randall; and T. Todd Martin III (referred to collectively as "RGR") which enjoined Capmark from foreclosing on certain real property that served as the primary collateral for a loan from Capmark to RGR, LCC, MB Park, LLC, and TTM MB Park, LLC. Upon review, the Supreme Court concluded RGR failed to establish the requisite elements entitling it to a preliminary injunction. The Court therefore reversed the trial court's judgment issuing the injunction. View "Capmark Bank v. RGR, LLC " on Justia Law

Timothy C. Allsopp appealed a trial court's denial of his motion for relief from a judgment entered in favor of James and Kisha Bolding. The Boldings sued Naysa Realty and Investments, LLC, Deleana Davis, Keller-Williams Realty Co., and Allsopp. The Boldings alleged breach of fiduciary duty, and three counts of fraud arising out of real-estate transactions in Madison County. Davis was a principal in Naysa Realty and was employed by Keller-Williams as a real-estate agent. Davis advised the Boldings, who were purchasing property, to give Allsopp power of attorney to sign certain closing documents on their behalf. A default judgment was entered against Allsopp, with leave for the Boldings to prove damages against him later. Allsopp argued on appeal that the evidence against him was insufficient to support the judgment against him. Upon review, the Supreme Court found the evidence sufficient to support the trial court's decision and affirmed the judgment in the Boldings' favor. View "Allsopp v. Bolding" on Justia Law

Alabama Psychiatric Services, P.C. (APS) appealed a grant of summary judgment by the circuit court in favor of 412 South Court Street, LLC (Court Street). SRS Group, LLC, owned by Eugene Sak, began substantial renovations to the Court Street building, including gutting and rebuilding the interior of the structure. Sak entered into negotiations with Make Believe, LLC, to lease space in the building for use as a gym and exercise facility. While he was negotiating with Make Believe, Sak entered into discussions with APS about leasing office space. During the negotiations, APS voiced concerns about having a discreet entrance for APS's clients and about potential noise from a gym facility in the building and that there would not be sufficient parking for APS patients and staff because of the use of the parking lot by members of the gym. Sak assured APS that the noise problem would be solved, that parking would be sufficient for both the gym members and APS, and that when construction of the addition was complete, the gym would have its own separate entrance. Sak sold the building before construction was complete. The new ownership assumed AFS' lease but the discreet entrance was not built. On appeal, APS argued that it was fraudulently induced to sign a lease agreement for space in the building. Upon review, the Supreme Court found that the trial court record contained substantial evidence to support APS's claim that there exists a genuine issue of material fact as to whether, through misrepresentation and the suppression of material facts, Sak fraudulently induced APS to enter into the lease agreement. Accordingly, the Court reversed the trial court and remanded the case for further proceedings. View "Alabama Psychiatric Services, P.C. v. 412 South Court Street, LLC. " on Justia Law

American Suzuki Motor Corporation petitioned the Supreme Court for a writ of mandamus to direct the circuit court to grant its motion to dismiss the claims filed against it by John Burns and Jill S. Hearn. Plaintiffs sued Defendants American Suzuki, several local dealerships and the dealerships' owner, alleging breach of contract based on Suzuki vehicle warranties, diminution in value of their vehicles, fraudulent misrepresentations, and unjust enrichment. Plaintiffs purported to bring the action on behalf of themselves and all members of a class composed of individuals who had purchased Suzuki vehicles from Defendants and had active warranties or service contracts on those vehicles. According to the complaint, new Suzuki vehicles carried a manufacturer's warranty, and that Defendants also sold purchasers of Suzuki vehicles extended warranties and maintenance agreements. In early March 2009, "the defendants closed dealerships … and [that] there are no other Suzuki dealerships closer than Nashville, Tennessee, Murfreesboro, Tennessee, or Birmingham, Alabama, to perform service work on the warranted vehicles." As a result of the dealerships being closed, Plaintiffs alleged they were "constructively barred from obtaining warranty work on their vehicles." The complaint did not allege that Plaintiffs needed or sought service under the warranties on their vehicles or that any of the Defendants refused to honor the warranties on vehicles. American Suzuki filed a motion to dismiss alleging that Plaintiffs' claims should be dismissed for failing to state a claim upon which relief can be granted. Upon review, the Supreme Court reversed the trial court's denial of American Suzuki's motion to dismiss, and remanded the case to the trial court to enter an order granting American Suzuki's motion. View "American Suzuki Motor Corp. v. Burns" on Justia Law

Robert S. Grant Construction, Inc. (the corporation), Robert S. Grant (RSG), and Pam E. Grant (PEG) (collectively referred to as "the Grants") appealed an order striking their jury demands in an action commenced by Frontier Bank (the bank) against the Grants and others alleging breach of contract, fraud, and the fraudulent conveyance of real estate. This case arose out of a loan from the bank to the corporation. The loan ultimately involved a number of related agreements, including a construction-loan agreement between the corporation and the bank and a series of "continuing guaranties," whereby RSG personally guaranteed repayment of the loan. The Supreme Court was unable to reach the merits of the Grants' contentions, and dismissed the appeal because, despite the invocation of Rule 54(b), the trial court's order was not final and appealable. View "Robert S. Grant Construction, Inc. v. Frontier Bank " on Justia Law

Sammy Thomas and Pam Thomas appealed the Blount Circuit Court's order granting a motion to compel arbitration filed by Sloan Homes, LLC ("Sloan Homes"), David Sloan, and Teresa Sloan in the Thomases' action alleging breach of contract and tortious conduct in relation to the construction of a house by Sloan Homes, the grantor under the residential sales agreement. The question presented by this appeal was whether, under the doctrine of merger, the execution and delivery of the deed in this case nullified an arbitration clause included in the antecedent residential sales agreement. Upon review, the Supreme Court found that the arbitration clause was still valid, thereby affirming the circuit court's order granting Sloan Homes and the Sloans' motion to compel arbitration of the Thomases' claims. View "Thomas v. Sloan Homes, LLC" on Justia Law