Justia Alabama Supreme Court Opinion Summaries
Articles Posted in Labor & Employment Law
Watters, et al. v. Birmingham Hematology and Oncology Associates, LLC, d/b/a Alabama Oncology, et al.
Plaintiffs Karen Watters and Cheryl Yarbrough appealed the grant of summary judgment entered in favor of Birmingham Hematology and Oncology Associates, LLC, d/b/a Alabama Oncology ("Alabama Oncology"), and Brian Adler on their claims alleging defamation and
wantonness. Plaintiffs were formerly employed by Alabama Oncology. In August 2019, an anonymous letter was delivered to various physicians at several Alabama Oncology locations. The letter alleged that there had been illegal and unethical behavior by four staff members, two of whom were plaintiffs, and that there was "a massive lawsuit brewing." The letter also warned that an attorney would be contacting Alabama Oncology regarding a class-action lawsuit. In response to the letter, Alabama Oncology's executive director, Chris Barnes, contacted Alabama Oncology's outside legal counsel, Bradley Arant Boult Cummings LLP ("Bradley Arant") for advice on responding to the letter and preparing for the threatened litigation. Bradley Arant began conducting an internal investigation regarding the allegations in the anonymous letter. Ultimately, after the conclusion of the internal investigation, Alabama Oncology terminated plaintiffs' employment. Plaintiffs sued Alabama Oncology, and certain executive staff, alleging that their employment had been wrongfully terminated based on the executives' conspiracy to defame the plaintiffs and the results of what they alleged was a "sham investigation." The Alabama Supreme Court found that plaintiffs' "bare assertion that they satisfied their burden to defeat the summary-judgment motion" was insufficient to warrant reversal; the Court affirmed the trial court's judgment. View "Watters, et al. v. Birmingham Hematology and Oncology Associates, LLC, d/b/a Alabama Oncology, et al." on Justia Law
Women’s Care Specialists, P.C. v. Potter
Consolidated appeals stemmed from an employment dispute between Dr. Margot G. Potter and her former employer, Women's Care Specialists, P.C. ("Women's Care"), and out of a dispute between Potter and three Women's Care employees: Dr. Karla Kennedy, Dr. Elizabeth Barron, and Beth Ann Dorsett ("the WC employees"). In case no. CV-21-903797, Potter alleged claims of defamation, tortious interference with a business relationship, and breach of contract against Women's Care. In case no. CV-21-903798, Potter alleged claims of defamation and tortious interference with a business relationship against the WC employees. After the trial court consolidated the cases, Women's Care and the WC employees filed motions to compel arbitration on the basis that Potter's claims were within the scope of the arbitration provision in Potter's employment agreement with Women's Care and that the arbitration provision governed their disputes even though Potter was no longer a Women's Care employee. The trial court entered an order denying those motions. Women's Care and the WC employees separately appealed; the Alabama Supreme Court consolidated the appeals. In appeal no. SC-2022-0706, the Supreme Court held that Potter's breach of-contract claim and her tort claims against Women's Care were subject to arbitration. The Court therefore reversed the trial court's order denying Women's Care's motion to compel arbitration. In appeal no. SC-2022-0707, the Supreme Court held that Potter's tort claims against the WC employees were subject to arbitration. The Court therefore reversed the trial court's order denying their motion to compel arbitration, and remanded both cases for further proceedings. View "Women's Care Specialists, P.C. v. Potter" on Justia Law
Ex parte Midsouth Paving, Inc., et al.
Midsouth Paving, Inc. ("Midsouth"), and Christopher Nivert petitioned the Alabama Supreme Court for a writ of mandamus directing the Tallapoosa Circuit Court ("the trial court") to enter a summary judgment in their favor in an action commenced against them by Yvonne Mason. Mason worked for PeopleReady, a temporary staffing agency, at Midsouth jobsites. PeopleReady initially provided Mason with a hard hat, sunblock, water, and a vest with "Midsouth" printed on it, and Mason kept those items in her automobile. At the job site, Midsouth employees directed and supervised Mason's job duties. Mason was working at a Midsouth job site when Nivert unintentionally drove his pilot vehicle into Mason while he was making a three-point turn. Mason's leg was severely injured, and she received multiple surgeries and remained in a hospital and then a rehabilitation facility for over a month. PeopleReady began paying workers' compensation benefits to Mason after the accident and also paid or her continued medical care. Pursuant to the labor-supply agreement, Midsouth was an insured alternate employer under PeopleReady's workers' compensation insurance policy. Mason also filed the underlying lawsuit alleging claims of negligence; wantonness; negligent hiring, training, and supervision; and negligence per se. Midsouth's motion for summary judgment was denied, leading to the mandamus relief requested in this case. After careful consideration, the Supreme Court found Mason's claims against Midsouth and Nivert were barred by § 25-5-11, § 25-5-52, and § 25-5-53, Ala. Code 1975, of the Alabama Workers' Compensation Act ("the Act"), § 25-5-1 et seq., Ala. Code 1975. Accordingly, the Supreme Court granted the petition and directed the trial court to enter a summary judgment in favor of Midsouth and Nivert. View "Ex parte Midsouth Paving, Inc., et al." on Justia Law
Flickinger v. King
Birmingham attorney Daniel Flickinger posted a message on his personal Facebook social-media page in which he appeared to reference the death George Floyd, which occurred while Floyd was being arrested and was recorded. The social-media post, along with an allegedly "counterfeit" social-media "profile," was later shared with Flickinger's supervising attorney at his law firm by Lawrence Tracy King, an attorney with the Birmingham law firm of King Simmons Ford & Spree, P.C. Shortly thereafter, Flickinger was forced to resign. Flickinger's post was also shared by members of a "private" Facebook group, who then posted a series of offensive comments about him both personally and professionally. Flickinger sued King and the King law firm asserting claims of defamation, invasion of privacy, and tortious interference with a business relationship. The King defendants filed a motion to dismiss Flickinger's claims pursuant to Rule 12(b)(6), Ala. R. Civ. P., and the circuit court granted the motion. After review, the Alabama Supreme Court affirmed the trial court's judgment insofar as it dismissed Flickinger's defamation and invasion-of-privacy claims. However, the Court reversed the trial court's judgment insofar as it dismissed Flickinger's tortious-interference claim, and remanded the case for further proceedings. View "Flickinger v. King" on Justia Law
Davis v. Montevallo
Ed Davis sued the City of Montevallo ("the City") claiming that the City was in breach of contract because, in terminating his employment with the City, it failed to follow certain discharge procedures set out in an employee handbook it had issued to him. The City responded by arguing it was not required to follow the handbook's procedures because Davis was an at-will employee. After entertaining motions for summary judgment from both sides, the trial court ruled in favor of the City. Davis appealed. The Alabama Supreme Court reversed the trial court's summary judgment in favor of the City. "The Handbook was an offer for a unilateral contract, which Davis accepted by continuing his employment with the City. Because the Handbook constitutes a unilateral contract, we reverse the trial court's denial of Davis's motion for partial summary judgment and direct the trial court on remand to determine whether, in fact, the City violated the Handbook's terms." View "Davis v. Montevallo" on Justia Law
Ex parte Jeffrey Varoff.
After Clifford Bufford, an employee of Borbet Alabama, Inc., injured his left arm in a workplace accident, he sued seven of his co-employees claiming that his injury was the result of their willful conduct. The co-employees sought summary judgment, arguing that they were immune from suit under Alabama's Workers' Compensation Act ("the Act") because, they said, there was no evidence to support Bufford's claims. Bufford voluntarily dismissed his claims against all the defendants except the petitioner, maintenance supervisor Jeffrey Varoff. The circuit court then denied Varoff's motion for summary judgment. He petitioned the Alabama Supreme Court for a writ of mandamus directing the trial court to enter judgment in his favor on the basis of the immunity afforded by the Act. We grant the petition and issue the writ. The Supreme Court concurred there was not evidence in the trial court record that would support a finding that Varoff had engaged in willful conduct as that term was described in § 25-5-11(c). The Court held Varoff was immune from liability under § 25-5- 53. Accordingly, the trial court erred by denying Varoff's motion for summary judgment. His petition was therefore granted, and the trial court directed to vacate its order denying Varoff's motion. View "Ex parte Jeffrey Varoff." on Justia Law
Cochran v. CIS Financial Services, Inc.
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
Ex parte CSX Transportation, Inc.
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
Ex parte Alabama Power Company, et al.
Alabama Power Company ("Alabama Power"), B&N Clearing and Environmental, LLC ("B&N"), and Jettison Environmental, LLC ("Jettison") petitioned the Alabama Supreme Court for a writ of mandamus directing the Montgomery Circuit Court to vacate its order denying their motions to transfer this action to the Autauga Circuit Court and to enter an order granting the motions. In 2019, Zane Yates Curtis, a North Carolina resident who was employed by B&N, was killed when a portion of his tractor-trailer made contact with an energized overhead power line in Autauga County. At the time, Zane was dumping mulch at a landfill in Prattville that was operated by JB Waste Connection, LLC. Rachel Curtis, as the administrator of Zane's estate, filed a complaint for worker's compensation benefits against B&N in the Montgomery Circuit Court. B&N was a Delaware limited-liability company whose principal address was in Houston, Texas. It did not have a physical office in the State of Alabama, it did not have a principal office in Montgomery County or any other Alabama county, and none of its members were residents of Montgomery County or any other Alabama county. Rachel amended her complaint to include a workers’ compensation claim against B&N, and negligence and wantonness claims against Alabama Power, Jettison, and JB Waste. Alabama Power was an Alabama corporation that had its principal place of business in Birmingham. Jettison was an Alabama limited-liability company that had its principal place of business in Autauga County. JB Waste was an Alabama limited-liability company with an office in Montgomery County and did business in Montgomery County and Autauga County. B&N filed answers to both complaints, specifically including the defense of improper venue. Because venue in Montgomery County was not proper as to B&N when the action was commenced, the Alabama Supreme Court found the trial court exceeded its discretion in denying the motions to transfer the case to Autauga County, where venue would have been proper. The writ petition was granted and the Montgomery Court ordered to transfer the case to Autauga. View "Ex parte Alabama Power Company, et al." on Justia Law
Key v. Warren Averett, LLC, et al.
James P. Key, Jr. appealed a circuit court order denying his motion to compel arbitration of his claims against Warren Averett, LLC, and Warren Averett Companies, LLC (collectively, "WA"). Key alleged that he was a certified public accountant who had been employed by WA for 25 years and had been a member of WA for 15 years; that he had executed a personal-services agreement ("PSA") with WA that included a noncompete clause; and that WA had sent him a letter terminating his employment. Key sought a judgment declaring "that the Non-Compete Clause and the financial penalty provision contained in the PSA is not applicable to Key and is an unlawful restraint of Key's ability to serve his clients as a professional." The Alabama Supreme Court found that whether Key's claims against WA had to be arbitrated was a threshold issue that should not have been decided by the circuit court; nor was it appropriate for the Supreme Court to settle the issue in this appeal. Accordingly, the circuit court's order was reversed, and the case was remanded for the circuit court to enter an order sending the case to arbitration for a determination of the threshold issue of arbitrability and staying proceedings in the circuit court during the pendency of the arbitration proceedings. View "Key v. Warren Averett, LLC, et al." on Justia Law