Justia Alabama Supreme Court Opinion Summaries

In an earlier action, 623 Partners, LLC, obtained a default judgment against Bart Bowers. But 623 Partners never collected on that judgment. About nine years after obtaining the judgment, 623 Partners filed this case, alleging that Bart and members of his family had orchestrated the fraudulent conveyance of a property that should have been used to pay the judgment. While this case was pending, the judgment in the earlier action reached the 10-year mark, meaning the judgment was presumed satisfied. 623 Partners tried but failed to revive the judgment. The defendants in this case then moved for summary judgment on the sole basis that 623 Partners could not enforce the judgment -- effectively arguing that the 623 Partners' fraudulent-conveyance claims were moot. The trial court granted that motion. Because the Alabama Supreme Court presumed the judgment against Bart and its underlying debt were satisfied, the Court affirmed. View "623 Partners, LLC v. Bowers et al." on Justia Law

Deborah Hillard and Holland Hillard Warr jointly petitioned the Alabama Supreme Court for a writ of mandamus, raising numerous issues. The Court ordered answers and briefs on one issue raised by Warr: whether the circuit court erred in denying her summary-judgment motion on the counterclaim brought against her by her former husband, Rik Tozzi, which Warr claimed was barred by principles of res judicata. Warr specifically requested that the Supreme Court issue the writ of mandamus directing the circuit court to grant her summary-judgment motion. The Court denied the petition as to that issue. "Warr does not provide meaningful discussion of the precedent she cites or the other relevant precedent ... She has not established that the instant case is controlled by opinions holding that a former spouse was barred from pursuing a tort claim against the other former spouse based on conduct that occurred before a divorce. For example, she has not shown that the allegedly tortious acts and omissions surrounding the execution and delivery of the promissory note were fully litigated in the divorce action or that Tozzi's tort allegations were resolved by a settlement agreement entered in the divorce action or by the final divorce judgment." Because Warr did not demonstrate a clear legal right to a judgment in her favor on Tozzi's counterclaim based on principles of res judicata, the Supreme Court denied the petition. View "Ex parte Hillard and Warr." on Justia Law

In case number 1190525, Paul Childs and Granger Construction Company, LLC ("Granger Construction"), appealed a circuit court judgment entered in favor of Harry ("Bud") and Brenda Pommer. In their cross-appeal, case number 1190580, the Pommers appealed the trial court's judgment entered in favor of Melissa Granger ("Melissa"), as the administratrix of the estate of Daniel Granger ("Granger"), deceased. In 2014, the Pommers decided to build a garage on property that they owned in Fairhope, Alabama. Childs was referred to Bud for the work. Childs brought Granger into the project as the licensed contractor for the work. The evidence presented at trial indicated that the project experienced significant delays. Evidence was presented indicating that Granger and Childs performed some of the physical labor on the project. In March 2015, when an invoice was presented to the Pommers, Bud and Brenda told the Childs and Granger that they did not want to give them another check based on how things had been going. A "heated" meeting between the parties resulted in the Pommers hiring an attorney. Bud requested the City conduct an inspection; the garage did not pass. The Pommers subsequently hired another contractor and other companies to repair work done by Granger Construction and to complete unfinished work on the project. The Pommers ultimately sued Childs and Granger Construction for breach of contract. Childs and Granger Construction filed their answer to the amended complaint and a counterclaim, asserting breach of contract/unjust enrichment against the Pommers. After review, the Alabama Supreme Court affirmed the trial court as to Granger Construction in case number 1190525. The Court reversed the trial court as to Childs, and rendered judgment in favor of Childs. In case number 1190580, the Court affirmed the trial court. View "Childs et al. v. Pommer" on Justia Law

JT Construction, LLC ("JTC"), appealed a circuit court's judgment awarding declaratory and injunctive relief to MW Industrial Services, Inc. ("MWI"). MWI contracted with Golder Associates, Inc., to provide labor and services for a construction project at Plant Gorgas, a power plant operated by Alabama Power Company. Pursuant to the terms of the contract, MWI was prohibited from "permit[ting] any lien, affidavit of nonpayment, stop payment notice, attachment or other encumbrance ... to remain on record against [Plant Gorgas] or the property upon which it is situated for ... work performed or materials finished in connection [there]with" by any subcontractor with whom MWI might also contract. JTC subcontracted with MWI to work at Plant Gorgas. The subcontract agreement ("the lien-waiver provision") precluded JTC, in accordance with the master contract, from filing a lien against property owned by Alabama Power or Southern Company. Following execution of the subcontract agreement, a dispute arose between MWI and JTC in connection with JTC's performance of its contractual obligations and the amount owed to JTC for the work it had performed. In September 2020, counsel for JTC provided a "Notice of Mechanics' Lien" indicating that JTC claimed against the real property on which Plant Gorgas was situated, a lien in connection with JTC's work under the subcontract agreement. MWI pointed out the language of the lien-waiver provision of its subcontract, and demanded that JTC withdraw the lien notice. MWI asserted that JTC had been paid for any previous work before its execution of the subcontract agreement, and demanded that JTC withdraw its notice of lien. The trial court ultimately entered an order issuing a permanent injunction and ruling in favor of MWI on its declaratory-judgment claim, prohibiting JTC from filing its lien. The Alabama Supreme Court held the trial court erred in issuing the declaratory judgment and in awarding permanent injunctive relief without prior notice to JTC, as required by Rule 65(a)(2), and that JTC was prejudiced by that error. The trial court's judgment was therefore reversed, and this case was remanded for further proceedings. View "JT Construction, LLC v. MW Industrial Services, Inc." on Justia Law

David Roberson appealed a circuit court's dismissal of his claims against Balch & Bingham, LLP ("Balch"), on the basis that those claims were barred by the limitations periods contained in the Alabama Legal Services Liability Act ("the ALSLA"). After review of the trial court record, the Alabama Supreme Court affirmed, but on grounds that differed from the trial court's. "[T]he gravamen of Roberson's claims against Balch involved the provision of legal services. However, both Roberson and Balch assert that Roberson was not Balch's client, and those assertions are borne out in the third amended complaint, which indicates that Balch was engaged by Drummond, not personally by Roberson. ... Roberson's claims against the law firm Drummond engaged, Balch, are barred by the ALSLA because Roberson cannot meet an essential element of an ALSLA claim -- namely, he was not Balch's client -- and thus Balch owed no duty to Roberson. ... the circuit court's rationale was based on the applicability of the ALSLA's limitations periods." View "Roberson v. Balch & Bingham, LLP" on Justia Law

Fuston, Petway & French, LLP ("the Firm"), appealed the grant of summary judgment entered in favor of The Water Works Board of the City of Birmingham ("the Board") regarding the Board's termination of a contract between the parties. In September 2015, the Firm and the Board entered into a one-year contract in which the Firm agreed to provide legal representation for the Board. In 2016, the Firm and the Board entered into negotiations for a new contract. The chairman of the Board approached the Firm regarding the Board's need to have independent oversight and review of a program designed to attract "historically underutilized business entities" ("the HUB program"). Board meeting minutes at the end of 2016 reflected that the contract was approved. The contract between the Firm and the Board provided, in pertinent part, that the Firm would administer a Contract Compliance Program for the HUB program. Before the contract expired, the Board elected to terminate its contract with the Firm. The Firm sued for breach of contract and other theories. In its judgment, the trial court found, among other things, that the entirety of the Firm's obligations in the contract entailed legal services and that, as a result, the contract was terminable by the Board at any time. After review of the Firm's arguments appealing the trial court judgment, the Alabama Supreme Court found no reversible error and affirmed. View "Fuston, Petway & French, LLP v. Water Works Board of the City of Birmingham" on Justia Law

Vectus 3, Inc., sued Shorter Brothers, Inc., and its owners for breaching an asset-purchase agreement and related claims. In doing so, Vectus asked the trial court to pierce Shorter Brothers' corporate veil and hold Shorter Brothers' owners personally liable for the company's actions. The trial court granted complete relief to Vectus and awarded it damages, leading defendants to appeal to the Alabama Supreme Court. Vectus cross-appealed, arguing that the damages awarded were insufficient. Vectus operated FedEx Ground delivery routes for several years before its owner decided to sell its assets. Brothers Joseph Shorter and Jason Shorter expressed interest in purchasing those assets. Shorter Brothers entered into an asset purchase agreement ("the Agreement") with Vectus in October 2018. Because of concerns that Shorter Brothers would not obtain financing by the Agreement's closing, the parties provided a financing contingency in the Agreement. Shorter Brothers failed to obtain financing. As a result, it paid a downpayment and a monthly rental fee for approximately six months. It ceased making any payments after June 2019. The Alabama Supreme Court found no reversible error in the trial court's judgment. Accordingly, judgment was affirmed as to the Shorter Brothers' appeal and Vectus' cross-appeal. View "Shorter Brothers, Inc.,et al. v. Vectus 3, Inc." on Justia Law

Martin Burdette appealed a circuit court judgment entered in favor of Auburn-Opelika Investments, LLC ("AOI"), regarding a dispute involving a promissory note entered into by the parties. AOI cross-appealed the trial court's judgment denying its request for relief under the Alabama Litigation Accountability Act. In 2004, Martin Burdette and Susan Burdette, a married couple, formed AOI, with each owning 50% of the company. After its formation, AOI obtained a bank loan to purchase certain commercial property. In 2012, Martin and Susan sold property that they owned in Florida for $432,855. Martin and Susan agreed to use the proceeds from that sale, along with other funds, to make a loan to AOI so that it could pay off the bank loan. In May 2012, AOI executed a promissory note ("the 2012 note"). In 2014, Martin and Susan divorced. Neither the 2012 note nor ownership of AOI was addressed in the divorce proceedings. In 2016, Martin and Susan had a disagreement regarding the management and operation of AOI, and Martin sued Susan. In June 2017, as part of those proceedings, Martin and Susan entered into a mediated settlement agreement wherein Susan agreed to pay Martin in exchange for sole ownership of AOI ("the 2017 agreement"). That note was secured by a mortgage on the property owned by AOI. Susan later sold the property, and she paid the balance due on the note to Martin in full. In August 2019, Martin sued AOI, asserting claims of breach of contract and unjust enrichment, alleging AOI had failed to pay Martin the amount owed under the 2012 note. AOI argued Martin commenced the action against it without substantial justification because Martin was "fully aware that he has been paid in full for his interest in the 2012 Promissory Note and despite that fact, [he] initiated the groundless underlying lawsuit." The Alabama Supreme Court found that although the trial court found in favor of AOI on the substantive claims Martin asserted in his complaint, the trial court could have determined the issues of fact surrounding Martin's claim were reasonably in conflict. Accordingly, the trial court's factual determination that Martin's action was not frivolous or groundless in fact was supported by the evidence. Moreover, the Supreme Court's review of the record, lead it to conclude that Martin's claims against AOI were not groundless in law. Accordingly, the trial court's decision to not award attorney fees and costs to AOI under the ALAA was affirmed. View "Auburn-Opelika Investments, LLC v. Burdette" on Justia Law

Nicholas Jay appealed the grant of summary judgment entered in favor of United Services Automobile Association ("USAA") on his claim against USAA seeking uninsured-motorist ("UM") benefits. Nicholas was injured in an automobile accident when riding as a passenger in Ryen Gorman's automobile. Gorman did not have automobile insurance. Nicholas received $50,000 in UM benefits through a policy he had with Nationwide Insurance Company. Thereafter, Nicholas commenced an action against USAA, seeking UM benefits pursuant to a USAA policy owned by his father-in-law, George Brewer, and under which Nicholas's wife, Michelle Jay, had automobile-insurance coverage. Because Nicholas was not a "covered person" under the USAA policy, the Alabama Supreme Court affirmed the judgment. View "Jay v. United Services Automobile Association" on Justia Law

TitleMax of Georgia, Inc., and its parent company, TMX Finance LLC ("TMX"), petitioned the Alabama Supreme Court for a writ of mandamus to direct the Talladega Circuit Court to vacate its order denying their motion to dismiss them as parties to the underlying action commenced against them and others by Phallon Billingsley and to enter an order dismissing them from the action based on the trial court's lack of personal jurisdiction over them. This case started over the repossession of a 2005 Range Rover. In December 2014, the individual who owned the vehicle at that time allegedly entered into a "pawn ticket" agreement with TitleMax of Georgia pursuant to which the owner borrowed money from TitleMax of Georgia and provided TitleMax of Georgia a security interest in the vehicle. In 2016, Billingsley purchased the vehicle from a dealer in Georgia, with financing from Coosa Pines Federal Credit Union ("Coosa Credit"), and received a certificate of good title. In 2014, after a "perceived" default on the "pawn ticket" agreement by the vehicle owner, TitleMax of Georgia authorized a vehicle-repossession company to take possession of the vehicle when it was located in Virginia in 2019. TitleMax of Georgia asked Insurance Auto Auctions Corp. ("IAA") to sell the vehicle; when the vehicle ultimately reached Billingsley, it was damages and inoperable. It was unclear when the damage to the vehicle occurred. Billingsley sued all entities involved in the sale and delivery of the repossessed vehicle; TitleMax of Georgia was added as a party in an amended complaint. The Alabama Supreme Court granted TitleMax of Georgia’s petition, finding there was no evidence to support a finding that an agency relationship existed between either TitleMax of Georgia or TMX and IAA or Attention to Detail (the transport company). View "Ex parte TitleMax of Georgia, Inc., and TMX Finance LLC." on Justia Law