Justia Alabama Supreme Court Opinion Summaries

Carson Sweeney petitioned the Supreme Court for a writ of mandamus to direct the Circuit Court to vacate its order of May 26, 2011, insofar as the order granted Timmy Joe Holland's motion to strike Sweeney's demand for a trial by jury in Holland's trespass action against him. In 2010, Holland sued Sweeney, alleging that Sweeney had entered Holland's property and damaged it by, among other things, "remov[ing] trees, timber and other foliage, [and] soil"; "redirect[ing] water flow"; and "install[ing] drainage apparatuses." The complaint stated the following causes of action: "trespass - trespass to chattels," negligence, negligent supervision, and conversion. The circuit court ultimately entered an order that, among other things, granted in part and denied in part Holland's motion to strike Sweeney's answer and counter-complaint. In its order, the circuit court found that Sweeney's failure to file his answer and counter-complaint in a timely manner "was unreasonable and inherently prejudicial" to Holland and that "[g]ood cause has not been shown for said failure." Nonetheless, the circuit court denied Holland's motion insofar as it sought to strike Sweeney's answer and counter-complaint because, the circuit court said, "the interest of preserving a litigant's right of trial on the merits is paramount." However, the circuit court granted Holland's motion insofar as it sought to strike Sweeney's demand for a jury trial, concluding that Sweeney had "waived his right to demand a trial by jury." Sweeney filed a "motion for reconsideration, modification, new hearing, or in the alternative, motion to alter, amend or vacate" the order striking his jury-trial demand, which the circuit court denied. Sweeney then filed this petition for the writ of mandamus, seeking relief from the circuit court's order. Upon review, the Supreme Court concluded Sweeney demonstrated a clear legal right to the relief sought in his petition for the writ of mandamus. Accordingly, the Court granted the petition and issued the writ. View "Holland v. Sweeney" on Justia Law

Highlands of Lay, LLC ("Highlands") appealed a default judgment entered in favor of Edward O. Murphree. Murphree sued Highlands and John J. Miller, who Murphree alleged was a member of Highlands and its authorized agent. Murphree alleged fraudulent concealment, fraudulent misrepresentation, negligent misrepresentation, promissory estoppel, and breach of contract, arising out of a real-estate transaction. After he amended his complaint, Murphree was not able to obtain service upon Highlands or Miller, and the trial court granted a motion to serve them by publication. Highlands and Miller answered, and Highlands filed a counterclaim alleging negligence. Murphree then served discovery requests on Highlands. Murphree later sent additional discovery requests to Highlands and Miller; Highlands and Miller did not respond. When Highlands and Miller continued to be unresponsive to the suit, Murphree moved for a default judgment. Upon review of the case, the Supreme Court found that some of the issues presented in the then-still pending claim against Miller were the same issues presented in this appeal by Highlands. Highlands argued that the trial court erred in not setting aside the default judgment against it because it had a meritorious defense to Murphree's claims based on Miller's statements or e-mail from Miller and the timing of statements or e-mail to Murphree. "Appellate review in piecemeal fashion is not favored." The Court concluded that the trial court exceeded its discretion in certifying the judgment entered against Highlands as final pursuant to Rule 54(b). Highlands' appeal was therefore dismissed. View "Highlands of Lay, LLC v. Murphree " on Justia Law

David Bennett and Bennett & Bennett Construction, Inc. ("Bennett") appealed the trial court's denial of their motion to compel arbitration of the claims alleging fraud in the inducement and the tort of outrage brought against them by Barbara and Leotes Skinner. The Skinners entered into a construction-services contract with Bennett, pursuant to which Bennett was to renovate and remodel their residence located in Oxford. After disagreements developed between the parties, the Skinners sued Bennett, alleging claims of breach of contract; breach of warranty; fraud in the inducement; assault and battery; the tort of outrage; and negligence, wantonness and recklessness. Bennett moved to compel arbitration of all claims, arguing that, because each of the claims alleged by the Skinners arose from the construction-services contract or were related to the construction-services contract, the claims were subject to arbitration. Furthermore, Bennett argued that the tort-of-outrage claim arose out of a disagreement concerning the construction-services contract and that the Skinners should not be allowed to avoid arbitration because they cast their claim as a tort. The Skinners responded, arguing that their agreement to the arbitration clause in the contract was obtained fraudulently. The trial court denied Bennett's motion. Upon review, the Supreme Court concluded that the Skinners' tort-of-outrage claim arose out of a disagreement concerning the construction-services contract and thus was a proper claim for arbitration. The Court reversed the trial court's ruling and remanded the case for further proceedings. View "Bennett v. Skinner " on Justia Law

The Fort Morgan Civic Association, Inc. and Charles Browdy, a resident of the unincorporated Fort Morgan area of Baldwin County and a member of the Association (collectively "the FMCA"), sued the City of Gulf Shores and its mayor and city council seeking a court order declaring the City's annexation of a 19.3-mile segment of the land on which Fort Morgan Road is located and the adjacent land to be invalid.1 Following a nonjury trial, the trial court held that the FMCA had failed to establish that the Fort Morgan annexation was invalid; it accordingly entered a judgment in favor of the City. The FMCA appealed. Upon review, the Supreme Court reversed and remanded: "because the FMCA submitted evidence at that trial indicating that two parcels of property included in the Fort Morgan annexation were owned by private individuals and because the City failed to submit any evidence indicating that those same parcels were owned by the State, the trial court exceeded its discretion in upholding the annexation." View "Fort Morgan Civic Association, Inc. v. City of Gulf Shores" on Justia Law

Riverstone Development Co., Inc. and Southern Heritage, LLC appealed a judgment dismissing an action in which they had intervened as defendants. The dispute involved a number of individuals and entities who claimed some right or title in one or more parcels of land in Jackson County. Roy Nelson filed a "complaint for specific performance" against Fieldstone Land Company, LLC, averring that Nelson had been the high bidder for "Tract 10" at a public auction and sought a judgment to order Fieldstone to "execute a deed to [Nelson] conveying the real propert[y]." Riverstone and Heritage moved to intervene in the action "to join [Fieldstone] in their defense against [Nelson's] claim." Riverstone and Heritage alleged that they were the current and former owner of the subdivision in which Tract 10 was located. The trial court granted that motion, and Riverstone and Heritage filed an answer to the complaint. Ultimately the trial court entered its judgment denying Riverstone and Heritage's further participation in the case by dismissing it entirely. Upon review, the Supreme Court concluded that because the trial court erred in treating the motion to dismiss as a nondiscretionary dismissal, the Court reversed that judgment and remanded the case for the trial court to "exercise the discretion as is proper for consideration of a motion to dismiss under Rule 41(a)(2)." View "Riverstone Development Co., Inc. v. Nelson" on Justia Law

Husband and wife Emmett and Debra Jackson appealed the grant of summary judgment in favor of Wells Fargo Bank, N.A. in their action against the bank and trustee. The Jacksons challenged a foreclosure sale of their property. The Jacksons refinanced an existing home loan; in so doing, they gave a mortgage on the property which was subsequently assigned to Wells Fargo. Although the mortgage was, in turn, assigned to the trustee, the bank continued to function as the "servicer" of the loan. By 2007, the Jacksons were in arrears on their mortgage payments. While the Jacksons and the bank were engaged in negotiations for forbearance, the Jacksons did not make certain scheduled payments. During the negotiations, a debt-collection representative of the trustee sent the Jacksons a "NOTICE OF ACCELERATION OF PROMISSORY NOTE AND MORTGAGE." The house was put up for sale, and a foreclosure deed was issued to a third party. The Jacksons then sued the bank, the trustee, and the purchaser of the property alleging negligent or wanton foreclosure and breach of contract. The bank and trustee moved for summary judgment, contending that the Jacksons lacked any basis from which to contest the foreclosure sale. Upon review, the Supreme Court found that the Jacksons presented no basis on which to reverse the summary judgment as to their claim of negligent or wanton foreclosure, however, the Court agreed that the acceleration letter was fundamentally flawed. The Court reversed the grant of summary judgment on the breach of contract claim, and remanded the case for further proceedings. View "Jackson v. Wells Fargo Bank, N.A." on Justia Law

In 2009, the Secretary of Veterans Affairs sued Frank S. Smith, Jr. in the Jefferson Circuit Court, stating a claim of ejectment and sought possession of Mr. Smith's house in Bessemer. The mortgage to Mr. Smith's home was assigned to the Secretary, and the Secretary had sold the house at a foreclosure sale in 2007. The auctioneer who sold the house executed an auctioneer's deed conveying the house to the Secretary. The Secretary demanded that Mr. Smith vacate the house, but Mr. Smith failed to leave. The trial court granted summary judgment, asserting as a matter of law he was entitled to possession of the house. Mr. Smith opposed the summary-judgment motion by filing a pleading titled 'Defendant's Response to Plaintiff's Motion for Summary Judgment.' In his response, Mr. Smith argued, among other things, that the Secretary had failed to establish that he was entitled to possession of the house because, Frank said, the affidavit filed with the Secretary's motion did not comply with Rule 56(e), Ala. R. Civ. P. Mr. Smith appealed to the Court of Civil Appeals which reversed the summary judgment and remanded the action for further proceedings. Upon review, the Supreme Court found that Mr. Smith should have moved to strike the offending affidavit in the Secretary's summary judgment motion in his response: "an objection to the inadmissible evidence alone is not sufficient." The Court vacated the appellate court's decision and affirmed the trial court's decision. View "Smith, Jr. v. Secretary of Veterans Affairs" on Justia Law

Altaf Virani filed an action against 600, L.L.C. (the LLC), attempting to redeem real property the LLC purchased from the bank that had foreclosed on that property. After a bench trial, the circuit court entered a judgment establishing the amount Virani was required to pay to redeem the property. The LLC appealed, arguing that the amount the judgment required him to pay was incorrect. Because the trial court erred in setting the redemption price under 6-5-253(a), Ala. Code 1975, and in not including interest in the redemption price, the Supreme Court reversed the trial court's judgment and remanded the case for further proceedings. View "600, LLC v. Virani " on Justia Law

Jim Walter Resources, Inc. (JWR) sought a petition for a writ of mandamus to direct the Tuscaloosa County Probate Court to record certain filings without the payment of a recording tax. Walter Energy, JWR's parent company, acquired Western Coal Corporation of Canada. As part of the acquisition, Walter entered into a credit agreement with Morgan Stanley, which required Walter's subsidiaries to execute contingent guaranties of Walter's financing debt in the event Walter defaulted. JWR secured its guaranty of Walter Energy's financing debt by executing mortgages on its real and leasehold properties. Also as part of the credit agreement, JWR was required to record the mortgages in the probate offices in the counties in which the properties were located. When JWR sought to record the mortgages and related UCC filings in Tuscaloosa, the Tuscaloosa County Probate Court refused to record the documents unless JWR paid the recordation tax. The probate judge maintained that there was no statutory requirement that under Alabama law that the debt being secured be the mortgagor's debt, and as such, because JWR was recording its financing statements for Walter's debt, JWR was still responsible for paying the tax. Upon review, the Supreme Court found that JWR's liability was contingent on Walter's default, and JWR's contingent guaranty did not constitute an unqualified promise to pay Walter's indebtedness under the credit agreement. The Court found the contingent guaranty was not within the scope of the applicable statute, and accordingly, the Court granted JWR's petition and issued the writ. View "Jim Walter Resources, Inc. v. McCollum" on Justia Law

The Travelers Indemnity Company of Connecticut appealed a judgment in which it was ordered to pay $251,913.91 to Willie A. Miller. Smith House Movers, Inc. (Smith), was hired was hired to move houses located in the path of road construction to be performed. Miller entered into a contract with Smith to purchase one of the houses and to move it from Red Bay to Vina. The contract provided that Smith was to move the house, pour a foundation, and place the house on the new foundation. Smith cut the house into two pieces and delivered the first piece. However, the foundation was improperly poured and did not fit, and the house had been damaged in the move. Ultimately Miller had to hire another company to complete the move and repair the damage. Miller then sued Smith alleging breach of contract, negligence and wantonness. Smith did not answer or appear, and Miller moved to a default judgment against Smith. In an attempt to collect the amount of the default judgment, Miller sent a copy to Smith's general liability insurer, Travelers. As Miller tried to get Travelers to respond to its demand, Miller learned that Smith had declared bankruptcy. Two years following the default judgment, the bankruptcy trustee lifted its stay on Smith's affairs to allow him to collect on the default judgment to the extent that the insurance coverage would allow. Travelers subsequently denied the claim. Miller then sued Travelers for payment. Travelers moved for summary judgment to dismiss Miller's claim, arguing that the general liability policy did not provide coverage based on the terms in the policies. The trial court denied the motion, and eventually entered judgment against the company. Travelers then appealed to the Supreme Court. The issue before the Court was whether the notice of the original lawsuit was timely. The Court found that because Miller's knowledge of Smith's certificate of insurance from the underlying lawsuit put Miller on notice that he should have notified Travelers of the default judgment. As such, the Court concluded that Miller was barred from recovering under Smith's policies. The Court reversed the trial court and remanded the case for further proceedings. View "Travelers Indemnity Company of Connecticut v. Miller" on Justia Law