Justia Alabama Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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Plaintiff Nandean Sanders appealed a circuit court judgment in favor of Defendants E.I. Campbell, Averline Campbell and Jerry Lawrence. The parties owned adjoining properties in Dallas County. Sanders sought declarative and injunctive relief regarding a disputed strip of property that the the parties all claimed to own. Defendants counterclaimed to ask the court to establish a boundary line between Sanders and their property and to enjoin Sanders' "encroachment." Upon review of the circuit court record, the Supreme Court concluded that the trial court's judgment was nonfinal, and therefore the Supreme Court lacked jurisdiction for further consideration. The appeal was dismissed. View "Sanders v. E. I. Campbell et al. " on Justia Law

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Lowell and Deborah Fuller, and Ronald and Sheila M. Turner, appealed a circuit court judgment which found that, although the Town of Magnolia Springs held no riparian rights in and to the Magnolia River, the Town was entitled to construct improvements on the shores of the River and extending into the River for a boat launch, a boat dock, and/or a pier to be used in connection with Rock Landing, a public landing on the River, and that Rock Street, a public street in the Town that adjoined the lands owned by the Fullers and the Turners and that terminated at Rock Landing, could be used for temporary parking "for the purpose of launching a boat, kayak, canoe or other float at Rock Landing." The Town cross-appealed that part of the judgment that declared the Town was without authority to convert a portion of Rock Street from a public street to a parking facility and recreational area. On appeal, the Fullers and Turners argued that the remedy ordered by the circuit court was inconsistent with the underlying factual findings and conclusions of law. Upon review, the Supreme Court agreed that the conclusions of law were indeed contradictory to the remedy the circuit court fashioned. The Court reversed the circuit court and remanded the case for the court to either revise its conclusions of law or the relief it ordered. Furthermore, because the Town's cross-appeal directly related to the issues raised on appeal, the Court ordered the cross-appeal to be reconsidered by the circuit court on remand. View "Fuller v. Town of Magnolia Springs " on Justia Law

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Plaintiffs Joe F. Watkins, Patricia M. Smith, and RE/MAX Lake Martin Properties, LLC sued Bear Brothers, Inc., ETC Lake Development, LLC ("ETC Lake"), and E.T. "Bud" Chambers, among others, asserting claims related to the construction and development of a condominium project on Lake Martin. ETC Lake and Chambers crossclaimed against Bear Brothers seeking to recover losses suffered on the project as well as indemnification for the costs of litigating the plaintiffs' action and any damages for which they might be found liable to the plaintiffs. In January 2010, Bear Brothers moved the circuit court to compel arbitration of the cross-claim against it. The circuit court did not rule on that motion. Bear Brothers renewed its motion in July 2011, and the circuit court granted the motion to compel arbitration of the cross-claim in December. Bear Brothers then moved the circuit court "to stay [the] proceedings [in the plaintiffs' action] pending the outcome of a related arbitration." After a hearing, the circuit court denied the motion to stay. Bear Brothers appealed the circuit court's order denying the motion to stay to the Supreme Court; ETC Lake and Chambers moved to dismiss the appeal. Upon review, the Supreme Court concluded that the motion at issue in this case was a motion to stay related proceedings pending the arbitration of a crossclaim between codefendants and was filed separately from the initial motion to compel arbitration of the cross-claim and subsequent to the circuit court's order granting the motion. Thus, Bear Brothers did not demonstrate a right to appeal the denial of the motion to stay at this time, and accordingly the Court dismissed the appeal as being from a nonfinal judgment. View "Bear Brothers, Inc. v. ETC Lake Development, LLC" on Justia Law

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The City of Irondale appealed a circuit court's grant of summary judgment which declared its annexation of a parcel of property owned by the Black Warrior-Cahaba Rivers Land Trust adjacent to the Cahaba River as void. The property at the time did not lie within the corporate limits of any municipality, but fell within the police jurisdiction on the City of Irondale and the City of Leeds. Leeds sought a judgment to declare the annexation as invalid. In entering a summary judgment in favor of Leeds, the trial court concluded that "the Cahaba River, under Alabama state law, is a public waterway" and that the conditions for finding contiguity across a public waterway were not met. Accordingly, the trial court concluded, Irondale's annexation of the Land Trust property was improper and void. Agreeing with the circuit court's conclusion, the Supreme Court affirmed. View "City of Irondale v. City of Leeds " on Justia Law

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Dr. Stephen L. Wallace appealed the grant of summary judgment in favor of Belleview Properties Corporation, IPF/Belleview Limited Partnership ("IPF"), HR/Belleview, L.P., and Infinity Property Management Corporation ("the defendants"). In August 1991, Wallace leased office space in the Belleview Shopping Center to use for his dental practice. Around 1996, the defendants purchased the shopping center and renewed Wallace's lease. The lease was renewed a second time in 2003 for a term of five years. In 2005, Wallace sued the defendants,1 alleging fraud and suppression; negligence; wantonness; breach of contract; unjust enrichment; and negligent training, supervision, and retention. Wallace alleged that, during the term of the lease, he reported various maintenance problems to the defendants. He also alleged that, although the defendants assured him that the problems would be taken care of, but that they were not. Wallace asserted that, as a result of reported water leaks that were left unrepaired, the office was infested with toxic mold. Therefore, he had to close his practice to avoid exposing his employees and his patients to the toxic mold. The defendants successfully filed a motion for a summary judgment as to Wallace's claims against them. In 2010, Wallace filed a motion for reconsideration which was denied. Upon review of the matter, the Supreme Court concluded that Wallace did not timely file his notice of appeal. Accordingly, the Supreme Court dismissed the appeal for lack of jurisdiction. View "Wallace v. Belleview Properties Corp." on Justia Law

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In case no. 1110439, the Town of Gurley ("the Town") appealed the trial court's judgment in favor of M & N Materials, Inc. ("M & N"), on M & N's inverse-condemnation claim against the Town. In case no. 1110507, M & N cross-appealed the trial court's judgment in favor of the Town and Stan Simpson on other claims. Based on the Supreme Court's review of the matter, the Court found that the applicable statute upon which M&N maintained did not support its claim of a regulatory taking. Therefore, the Court reversed the trial court's judgment in favor of M & N on its inverse-condemnation claim and rendered a judgment in favor of the Town. The Court's conclusion pretermitted the other issues raised by the Town in case no. 1110439. In case no. 1110507, the Court found no error in the trial court's judgment and affirmed its decision. View "Town of Gurley v. M & N Materials, Inc. " on Justia Law

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The Housing Authority of the Birmingham District ("HABD") appealed the judgment entered by the Jefferson Circuit Court which awarded Logan Properties, Inc., $350,000 on its inverse condemnation claim against HABD, as well as an additional $100,000 for litigation expenses, and awarding the intervening plaintiff Alamerica Bank $10,000 for litigation expenses. Logan Properties is a real-estate and property-management company that purchases, renovates, rents, and maintains single-family and multi-family residences. In January 2002, Logan Properties purchased "Patio Court," a 30-unit apartment complex for approximately $101,000. Logan Properties began renovating the vacant units in the complex with the plan of transferring current tenants into the newly renovated units until the entire complex was eventually renovated and leased. Logan Properties financed the purchase and rehabilitation of Patio Court by obtaining a construction loan from Alamerica Bank. In February 2003, Logan Properties obtained an adjacent parcel of property including a triplex unit with the same goal of renovating and leasing the units. Sometime in 2004, Logan Properties learned that HABD had obtained a federal grant to redevelop "Tuxedo Court," a multi- block public-housing complex located across the street from Patio Court. That project entailed the demolition of the existing Tuxedo Court housing complex and the construction of new housing in its place. After the plans for the Tuxedo Court project were made public, tenants started leaving Patio Court, telling Logan Properties that HABD was going to condemn Patio Court as part of the project. As residents in Tuxedo Court left as well, the general area deteriorated, and the vacant Patio Court apartments became the subject of theft and vandalism. Though Logan Properties had completely renovated 18 of the units, it eventually stopped renovation work, and, at trial conceded that the entire property had become unlivable. The parties tried to negotiate salvaging the area, but Patio continued to deteriorate. HABD subsequently initiated condemnation proceedings, and simultaneously filed a lis pendens notice on the properties. The probate court granted HABD's application for condemnation and appointed three disinterested commissioners to determine the compensation due Logan Properties for the condemnation of its property. The probate court failed to enter an order adopting the commissioners' report within a seven-day period required by statute and Logan Properties moved for a dismissal of the condemnation action. The probate court granted that motion and dismissed the action. Logan Properties then initiated an inverse-condemnation action against HABD, alleging that HABD had taken or injured property owned by Logan Properties. Upon review of the trial court record, the Supreme Court concluded that because no evidence was presented at trial indicating that HABD was responsible for a direct physical injury upon Logan Properties' property, that judgment was reversed and the cause remanded for the trial court to enter a judgment as a matter of law in favor of HABD. View "Housing Authority of the Birmingham District v. Logan Properties, Inc." on Justia Law

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Town & Country Property, L.L.C., and Town & Country Ford, ("T&C"), appealed a summary judgment in favor of Amerisure Insurance Company and Amerisure Mutual Insurance Company which held that Amerisure was not obligated to pay a $650,100 judgment entered on a jury verdict in favor of T&C and against Amerisure's insured, Jones-Williams Construction Company, because, the trial court reasoned, the faulty construction of the T&C facility upon which the judgment was based was not an "occurrence" covered under the commercial general-liability ("CGL") insurance policy Amerisure had issued Jones-Williams. In October 2011, the Supreme Court affirmed in part the judgment entered by the trial court, agreeing that faulty construction did not in and of itself constitute an occurrence for CGL-policy purposes and that, accordingly, "Amerisure was not required to indemnify Jones-Williams for the judgment entered against it insofar as the damages represented the costs of repairing or replacing the faulty work." However, the Court further recognized that if damages had been awarded T&C to compensate it for damage the faulty construction later caused to personal property or some otherwise nondefective portion of the T&C property, then "[t]hose damages would constitute 'property damage' resulting from an 'occurrence,' and they would be covered under the terms of the Amerisure policy ...." Upon a review of the record, the Supreme Court concluded that on remand, a $392,600 judgment entered by the trial court was not supported by the evidence. The order ultimately entered by the trial court failed to specifically identify any personal property or nondefective portions of the T&C facility that were damaged as a result of the faulty construction. The Supreme Court reversed the judgment entered by the trial court on remand, and remanded the case once again to the trial court so that it could enter a final judgment in favor of T&C for $600. View "Town & Country Property, L.L.C. v. Amerisure Insurance Company" on Justia Law

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The Boys & Girls Clubs of South Alabama, Inc. ("the Club"), a nonprofit corporation, appealed a judgment entered in favor of the Fairhope-Point Clear Rotary Youth Programs, Inc. ("Rotary Inc."), and the Ruff Wilson Youth Organization, Inc. ("Wilson Inc."), in their action against the Club seeking declaratory and injunctive relief. In 1996, B.R. Wilson, Jr., one of the incorporators of the Club and a principal benefactor, executed a "gift deed," transferring to the Club approximately 17 acres of real estate ("the property"). In March 2000, the Club sold the property and deposited the proceeds into three separate accounts, two of which were separately earmarked for the Daphne Club and for the Fairhope Club. However, in 2009, the Club discontinued its operations in Daphne and Fairhope, citing "operating deficits" as a contributing factor. It transferred the remainder of the proceeds from the sale of the property to an account in the Community Foundation of South Alabama ("the bank"). Later that year, the facilities in Daphne and Fairhope were reopened by volunteers and former Club personnel, who began operating the youth centers under their own independent management structures. Subsequently, some of these individuals incorporated Rotary Inc. and Wilson Inc., under which they continued to operate the facilities in Fairhope and Daphne, respectively. Rotary Inc. and Wilson Inc. sued the Club, seeking declaratory and injunctive relief, alleging that the Club "ha[d] used," or, perhaps, was "anticipat[ing] using," the proceeds for its own operations, rather than for the use of the facilities then being operated by Rotary Inc. and Wilson Inc. They sought a judgment: (1) declaring that the "desire and understanding" of B.R. Wilson expressed in the letter controlled the disposition of the funds, and (2) enjoining the use of the proceeds for anything but the benefit of the youth facilities as operated by Rotary Inc. in Fairhope and by Wilson Inc. in Daphne. The court ordered the termination of the "trust" and the disbursal of the remainder of the proceeds to Rotary Inc. and Wilson Inc., respectively. The Club appealed, challenging, among other things, the standing of Rotary Inc. and Wilson Inc. to sue over distribution of the proceeds of the sale of the property. Upon review, the Supreme Court concluded that Rotary Inc. and Wilson Inc. failed to show that they had standing to challenge the Club's disposition of the proceeds of the sale of the property donated to the Club by B.R. Wilson, Jr. Therefore, the trial court's judgment was void for lack of subject-matter jurisdiction. Accordingly, the Court vacated the judgment and dismissed the case and the appeal. View "Boys & Girls Clubs of South Alabama, Inc. v. Fairhope-Point Clear Rotary Youth Programs, Inc." on Justia Law

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Howard M. Schramm, Jr., appealed a March 6, 2012, judgment of the Baldwin Circuit Court approving pier construction permits issued to Schramm's neighbors, George G. Spottswood and Amy H. Spottswood, by the Alabama Department of Conservation and Natural Resources ("DCNR") and Baldwin County even though the proposed pier would violate the 10-foot setback rule in the applicable DCNR and Baldwin County rules and regulations. The Spottswoods crossappealed the order of the Baldwin Circuit Court denying their January 9, 2012, motion to alter, amend, or vacate its February 27, 2007, judgment setting the boundaries of their riparian-use area. Upon careful consideration of the trial court record, the Supreme Court found no error and affirmed. View "Schramm, Jr. v. Spottswood " on Justia Law