Justia Alabama Supreme Court Opinion Summaries

Monte Sano Research Corporation ("MSRC"), Steven L. Thornton, and Steven B. Teague appealed a preliminary injunction entered against them in an action brought by Kratos Defense & Security Solutions, Inc.; Digital Fusion, Inc. ("DFI"), and Digital Fusion Solutions, Inc. ("DFSI") alleging breach of the duty of loyalty, breach of contract, tortious interference with business and contractual relationships, and civil conspiracy. Additionally, Kratos sought injunctive relief. Thornton and Teague were employees of DFI, which also engaged in government subcontract work; they became employees of Kratos when Kratos Defense merged with DFI in 2008. In February 2009, Thornton and Teague met with Doyle McBride, a NASA consultant who had never been employed by Kratos, to discuss starting a new company to perform government contract work. Several months later, MSRC was incorporated, with McBride and Teague each owning 50 percent. Thornton had no legal interest in MSRC at its formation. McBride acquired office space, issued stock, filed tax returns, obtained business licenses, registered to engage in government contracting, attended meetings, and talked with prime contractors on MSRC's behalf. In June 2011, Thornton's supervisor at Kratos learned that several employees under Teague's supervision had resigned in a short period. Following an investigation, Kratos terminated Teague's employment on June 23, 2011; Thornton resigned four days later. Teague and Thornton then went to work for MSRC. Thornton subsequently purchased MSRC from McBride and became its CEO and president. Subsequently Kratos filed a complaint against MSRC, Thornton, and Teague alleging specifically that Thornton and Teague, while employed by Kratos, assisted in the creation of MSRC, solicited Kratos employees, wrongfully diverted business opportunities, and misappropriated confidential and proprietary information. Kratos also alleged that MSRC wrongfully diverted business opportunities and misappropriated confidential and proprietary information. Kratos applied for a temporary restraining order ("TRO") and for a preliminary injunction on June 29, 2011. On appeal, MSRC, Thornton, and Teague argued that the preliminary injunction should be dissolved. MSRC, Thornton, and Teague raised several issues on appeal; however, because the Supreme Court concluded that the trial court's order was overbroad and that it failed to comply with Rule 65, Ala. R. Civ. P., the Court did not reach any of their other issues. View "Monte Sano Research Corp. v. Kratos Defense & Security Solutions, Inc." on Justia Law

Monte Sano Research Corporation (MSRC), Steven L. Thornton, and Steven B. Teague appealed a preliminary injunction entered against them in an action brought by Kratos Defense & Security Solutions, Inc., a California-based aerospace and defense contractor, Digital Fusion, Inc. (DFI), an Alabama-based holding company, and Digital Fusion Solutions, Inc. (DFSI), a Florida corporation and a subsidiary of DFI (referred to collectively as Kratos), alleging breach of the duty of loyalty, breach of contract, tortious interference with business and contractual relationships, and civil conspiracy. Additionally, Kratos sought injunctive relief. MSRC was formed in 2009 to procure government subcontract work at Redstone Arsenal in Huntsville. Thornton and Teague were employees of DFI, which also engaged in government subcontract work; they became employees of Kratos when Kratos Defense merged with DFI in 2008. Kratos terminated Teagues employment on June 23, 2011. Thornton resigned from Kratos four days later. A dispute arose between the parties which implicated the employment contracts for Thornton and Teague when they sought subsequent work. Upon review of this case, the Supreme Court found that because the provisions of Rule 65(d)(2) of the Alabama Rules of Civil Procedure were not complied with and because there was no evidence of an irreparable injury or the lack of an adequate remedy at law, the trial court erred in issuing the preliminary injunction. The Court reversed the trial courts order entering the preliminary injunction and remanded the case to the trial court with directions that it dissolve the injunction it issued September 10, 2011. View "Monte Sano Research Corp. v. Kratos Defense & Security Solutions, Inc." on Justia Law

Mary Ann Wilkinson was employed by the Board of Dental Examiners of Alabama for several years, until the Board terminated her employment in December 2009. In July 2010, Wilkinson sued the Board, seeking compensation she alleged was due her pursuant to her employment contracts. The Board filed a motion to dismiss Wilkinsons complaint, in which it alleged that the complaint should be dismissed pursuant to Rule 12(b)(1), Ala. R. Civ. P., on the ground that the trial court lacked subject-matter jurisdiction because the Board, as a State agency, is immune from suit under Ala. Const. 1901, Art. I, sec. 14; that the complaint should be dismissed pursuant to Rule 12(b)(6), Ala. R. Civ. P., because it failed to state a claim; and that the complaint should be dismissed pursuant to Rule 12(b)(3), Ala. R. Civ. P., for improper venue. In its petition for a writ of certiorari, the Board argued this case presented an issue of first impression regarding whether the Board is a State agency that is entitled to section 14 immunity and whether the Board was entitled to invoke the jurisdiction of the Board of Adjustment. The Board argues that the Court of Civil Appeals erred when it concluded that the Board was not a State agency entitled immunity. Upon review, the Supreme Court concluded the Board was a State agency and therefore entitled to immunity pursuant to section 14, the courts of this State were without jurisdiction in this case, and the Board of Adjustment would have jurisdiction over Wilkinsons claims. For these reasons, the Court of Civil Appeals erred when it reversed the trial courts judgment dismissing Wilkinsons complaint against the Board and remanded the case for further proceedings. View "Wilkinson v. Board of Dental Examiners of Alabama" on Justia Law

This case arose out of a workplace accident in which Lee Calhoun, Jr., Plaintiff Lula Calhoun's husband, was fatally injured. Mrs. Calhoun filed a complaint against her husband's employer seeking worker's compensation death benefits. The circuit court eventually entered an order awarding Mrs. Calhoun 375 weeks in death benefits. The order also released one party, Linden, Inc., from further liability. The court did not certify this order as final. In the meantime, litigation involving a host of other parties proceeded. The parties exchanged correspondence regarding settlement of Mrs. Calhoun's claims. While the back-and-forth continued on settlement, Mrs. Calhoun filed suit against three parties, including Linden, alleging the torts of outrage, fraud and conspiracy. In this suit, she alleged that while attempting to negotiate settlement with Linden, a dispute arose over the terms of Linden's waiver, ending with Linden halting the workers' compensation death benefit payments. Linden and its two co-defendants unsuccessfully moved to dismiss Mrs. Calhoun's last suit. The case was tried solely on outrage, ending with a jury awarding Mrs. Calhoun over $3.6 million in compensatory and punitive damages. Attenta, Inc., one of Linden's co-defendants, appealed. On appeal to the Supreme Court, Attenta argued that the circuit court lacked subject matter jurisdiction over the outrage claim, contending that the controlling issue was at the center of the dispute in the wrongful death action. Upon review, the Supreme Court agreed, vacated the circuit court's judgment, and dismissed the case and appeal. View "Attenta, Inc. v. Calhoun " on Justia Law

The State Director of Finance Marquita Davis and the State Comptroller Thomas L. White, Jr. appealed a preliminary injunction entered by the Montgomery Circuit Court in response to a declaratory-judgment action brought by the Alabama Education Association (AEA); Alabama Voice of Teachers for Education (a political-action committee affiliated with the AEA (A-VOTE)); the Alabama State Employees Association (ASEA); and the State Employees Association Political Action Committee (a political-action committee affiliated with the ASEA (SEA-PAC). In 2010, the comptroller implemented a new policy regarding salary deductions. Under this new policy, the comptroller stopped executing salary deductions designated for contributions to SEA-PAC; the comptroller continued making deductions designated for the payment of dues to the ASEA. Likewise, the comptroller stopped executing salary deductions to a political-action committee affiliated with the Alabama State Troopers Association. Portions of an employee's salary no longer deducted as a result of this policy change were included in the employee's paychecks. The AEA and A-VOTE filed a complaint against the finance director and the comptroller in circuit court seeking a judgment declaring that deductions designated for the AEA that benefited A-VOTE were not prohibited by law and seeking a permanent injunction to force the comptroller to resume the previous practice of executing salary deductions designated for the AEA. The ASEA and SEA-PAC filed a motion to intervene as plaintiffs in the action. The circuit court ruled that, without the preliminary injunction, the plaintiffs would suffer irreparable harm through the actions of the finance director and the comptroller. Upon review, the Supreme Court vacated the injunction and ordered the circuit court dismiss the complaint: the action before the Court was one that challenged the practices adopted by the finance director and the comptroller based on their interpretation of Alabama statutory law as it existed before the the statutory authority under which they acted became effective. The Court concluded the injunction was moot. View "Davis v. Alabama Education Ass'n" on Justia Law

DuBose Construction Company, L.L.C., petitioned the Supreme Court for a writ of mandamus to direct the Court of Civil Appeals to vacate its order reversing a Montgomery Circuit Court ruling in the case. On February 14, 2005, James Simmons, an employee of DuBose Construction, sustained a medial meniscus tear in his right knee when he slipped and fell in a hole while working at a construction site. Simmons ultimately sued DuBose Construction in the Montgomery Circuit Court seeking workers' compensation benefits for his knee injury. The trial court entered a judgment in 2007, finding that Simmons had suffered a permanent partial disability to the body as a whole and a 15% permanent partial loss of his ability to earn and awarding benefits accordingly. However, the trial court dismissed Simmons' case, and he appealed. The Court of Appeals reversed the trial court. DuBose Construction subsequently appealed that judgment to the Court of Civil Appeals, arguing that the trial court had erred in awarding Simmons benefits. Upon review, the Supreme Court found DuBose Construction failed to establish that it had a clear legal right to the writ because the trial court's order dismissing Simmons's case was void as being outside the scope of the Court of Civil Appeals' remand order, and Simmons was accordingly entitled to a writ directing the trial court to enter a proper judgment in the case. View "Simmons v. DuBose Construction Company, L.L.C. " on Justia Law

The Alabama Insurance Guaranty Association (AIGA) sued the Water Works and Sanitary Sewer Board of the City of Montgomery, seeking, among other things, to recover money it had paid on behalf of the Board on a workers' compensation claim filed by one of the Board's employees. AIGA and the Board each moved for a summary judgment. The circuit court granted the Board's motion and entered a judgment limiting AIGA's recovery to the payments it had made on the workers' compensation claim during the two years immediately preceding the filing of the action and denying AIGA's request for attorney fees. AIGA appealed to the Court of Civil Appeals. The Court of Civil Appeals reversed the circuit court's judgment, concluding that AIGA's claims were subject to a six-year statute of limitations and that, therefore, the circuit court had erred in limiting AIGA's recovery to payments made within two years of the filing of the action. The Court of Civil Appeals remanded the case for the circuit court to reassess the damages award and to consider further AIGA's claim for attorney fees. The Supreme Court granted certiorari review to determine, as a matter of first impression, which statute of limitations -- the two-year or the six-year -- applied to AIGA's claims. Upon review, the Court affirmed the Court of Civil Appeals' judgment. View "Alabama Ins. Guaranty Assn. v. Water Works & Sanitary Sewer Board of the City of Montgomery" on Justia Law

Wright Brothers Construction Company, Inc. and GIBCO Construction petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate its order that denied their motion to transfer their case to another circuit court. In 2008, Rogers Whited was involved in a two-vehicle accident at a quarry located in Jefferson County. Both Whited and the driver of the other vehicle were employed by GIBCO, who, along with Wright Brothers, was engaged in a project at the quarry. In 2010 Whited filed a complaint against Wright Brothers, GIBCO, and Sharon Gilbert, the owner and president of GIBCO, in the Walker Circuit Court seeking damages for personal injuries allegedly caused by the accident. In May 2010 Wright Brothers moved to transfer the action to Jefferson County, stating that Whited alleged in his complaint that he was a resident of Blount County, that the accident occurred in Jefferson County, and that therefore Jefferson County, not Walker County, was the proper venue for Whited's action. In June, Whited filed his response in opposition to Wright Brothers' motion, stating that he was a resident of Walker County, not Blount County. Contemporaneously with that response in opposition, Whited also filed an amendment to his complaint stating that his statement that he was a resident of Blount County was a "clerical error." Upon review, the Supreme Court found that the proper venue for this case was Jefferson County, and that the trial court had "an imperative duty to transfer the case and refused to do so." Accordingly, the Supreme Court granted Wright Brothers' petition and issued the writ. View "Whited v. Wright Brothers Construction Company, Inc." on Justia Law

Petitioner Andrew Sutley petitioned the Supreme Court for a writ of mandamus to direct the Court of Civil Appeals to quash a May 2011 writ. In its opinion, the appellate court directed the Montgomery Circuit Court to vacate its December 2010 order that added the Alabama State Personnel Board as a party to Petitioner's administrative appeal. The underlying matter arose from Petitioner's dismissal from his job as an Alabama State Trooper. Petitioner moved to add the Board as respondent to his appeal at the circuit court. The circuit court granted that motion five months after the Board entered its final order upholding Petitioner's dismissal. The Board then petitioned the Court of Civil Appeals for a writ of mandamus to order the circuit court to dismiss Petitioner's case as untimely. Upon its review of the record, the Supreme Court found Petitioner did not have a clear legal right to a writ of mandamus to direct the appellate court to quash its writ of mandamus. Accordingly, the Supreme Court denied his petition. View "Sutley v. Alabama Dept. of Pub. Safety " on Justia Law

The Boaz City Board of Education ("the Board") and its members Alan Perry, Fran Milwee, Roger Adams, Alan Davis, and Tony G. King (collectively "the Board members") petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate its order that denied their motion to dismiss claims filed against them by Lisa and Donnie Tarvin and to enter an order dismissing the claims with prejudice. According to the complaint, Leland Dishman, the superintendent for the Board, struck kindergarden teacher Lisa Tarvin with a paddle. Dishman read a statement at a press conference, denying that the incident occurred. The Tarvins sued the Board, the Board members in their official capacities, and Dishman in his individual capacity, alleging claims of assault and/or battery, defamation, libel, and slander and sought monetary damages. The Board and the Board members moved to dismiss the claims against them, arguing that they were immune from suit under the State immunity doctrine. Upon review, the Supreme Court found that the Board and its members demonstrated that under the Alabama Constitution, they had immunity from the claims asserted against them, and "a clear legal right to have the claims… dismissed with prejudice." The Court granted the petition and issued the writ. View "Tarvin v. Dishman" on Justia Law