Justia Alabama Supreme Court Opinion Summaries

Brett Deslonde appealed the grant of summary judgment entered in favor of Nationstar Mortgage, LLC, doing business as Mr. Cooper ("Nationstar"), and The Bank of New York Mellon, as trustee for Nationstar Home Equity Loan Trust 2007-C ("BNYM"), on Deslonde's claim seeking reformation of a loan-modification agreement on the ground of mutual mistake. In December 2006, Deslonde purchased real property in Fairhope, Alabama with a loan from Nationstar. Deslonde subsequently defaulted on his mortgage payments and applied for a loan modification through Nationstar's loss-mitigation program. By letter dated February 2014, Nationstar notified Deslonde that he had been approved for a "trial period plan" under the federal Home Affordable Modification Program ("the federal program"). Under the federal program, Deslonde was required to make three monthly trial payments in the amount of $1,767.38 and to submit all required documentation for participation in the program, including an executed loan-modification agreement. In July 2014, Nationstar informed Deslonde that his request for a loan modification under the federal program had been denied because he had not returned an executed loan-modification agreement or made the trial payments. That letter informed Deslonde that there were other possible alternatives that might be available to him if he was unable to make his regular loan payments. Deslonde submitted a second application package for loss mitigation in October 2014. Under the executed modification agreement from the second application, Deslonde made monthly payments sufficient to cover only interest and escrow charges on the loan. The loan-modification period, however, expired in November 2016, at which time the monthly payments reverted to the premodification amount so as to include principal on the loan. After the loan-modification period expired, Deslonde made three additional monthly payments, but he then ceased making payments altogether. In an attempt to avoid foreclosure, Deslonde filed a complaint against Nationstar and BNYM in the Baldwin Circuit Court ("the trial court"), requesting a temporary restraining order enjoining foreclosure of the mortgage, a judgment declaring the parties' rights under the executed modification agreement, and reformation of the executed modification agreement on the ground of mutual mistake. Finding that the trial court did not err in granting summary judgment in favor of Nationstar and BNYM, the Alabama Supreme Court affirmed. View "Deslonde v. Nationstar Mortgage, LLC, d/b/a Mr. Cooper et al." on Justia Law

In July 2009, JPMC Specialty Mortgage, LLC ("JPMC"), foreclosed on a property in Grand Bay, Alabama that had once been owned by the parents of Marian S.A. Tipp. Since that time, Tipp filed one lawsuit after another seeking to unravel that foreclosure and gain ownership of the property. After concluding that Tipp's claims in her most recent lawsuit were barred by the doctrine of res judicata, the applicable statutes of limitations, and Alabama's abatement statute, the trial court entered summary judgment in favor of JPMC. Because of Tipp's history of litigation against JPMC, the trial court also entered a permanent injunction that prohibited her from initiating any further proceedings related to the foreclosure of the Grand Bay property without first obtaining permission from that court. Tipp appealed. Finding no reversible error, the Alabama Supreme Court affirmed the judgment. View "Tipp v. JPMC Specialty Mortgage, LLC" on Justia Law

Sandra Gleason filed suit against Charles Halsey and Jim McDonough d/b/a Jim McDonough Home Inspection ("McDonough"), seeking to recover for damage that Gleason allegedly incurred as a result of defendants' allegedly negligent and/or fraudulent conduct associated with Gleason's purchase of a house from Halsey and McDonough's inspection of the house. Although Gleason's claims against Halsey and McDonough involve different legal theories, the issue underlying the claims was essentially the same: whether the house was inspected. The issue underlying Gleason's claims against Halsey was whether McDonough's inspection of the house could be credited to Gleason for purposes of determining whether Gleason may assert an argument under the health or safety exception to the doctrine of caveat emptor; the issue underlying Gleason's claims against McDonough appeared to be whether McDonough owed Gleason a duty in inspecting the house or in consulting with Gleason as she personally inspected the house. The Alabama Supreme Court found that Gleason's claims against Halsey, the judgment on which was certified as final under Rule 54(b), and Gleason's claims against McDonough that remain pending in the circuit court "are so closely intertwined that separate adjudication would pose an unreasonable risk of inconsistent results." As a result, the Court concluded that the circuit court exceeded its discretion in certifying the June 23, 2021, order granting Halsey's summary-judgment motion as final. The Court therefore dismissed the appeal. View "Gleason v. Halsey" on Justia Law

Capitol Farmers Market, Inc., appealed a circuit court order entered in favor of Angie and Russell Ingram, enforcing certain restrictive covenants on property owned by Capitol Farmers Market that abutted property owned by the Ingrams. After review, the Alabama Supreme Court determined the trial court did not err in upholding the restrictive covenants found in the respective property declarations. Accordingly, judgment was affirmed. View "Capitol Farmers Market, Inc. v. Ingram" on Justia Law

In case no. 1190816, appellant-plaintiff SE Property Holdings, LLC ("SEPH"), appealed a circuit court's denial of its petition seeking to hold appellee-defendant David Harrell in contempt for failing to comply with the trial court's postjudgment charging order entered in a previous action involving the parties and its failure to hold a hearing on its contempt petition. In case no. 1190814, SEPH petitioned the Alabama Supreme Court for a writ of certiorari, seeking the same relief. The Supreme Court consolidated the proceedings ex mero motu. In case no. 1190816, the Supreme Court found nothing in the record indicating that a hearing was held or that, if one was held, Harrell was "notified ... of the time and place for the hearing on the petition." Thus, in case no. 1190816, judgment was reversed and the matter remanded for further proceedings. Case 1190814 was dismissed. View "Ex parte SE Property Holdings, LLC" on Justia Law

Wynlake Residential Association, Inc. ("the homeowners' association"), Wynlake Development, LLC, SERMA Holdings, LLC, Builder1.com, LLC, J. Michael White, Shandi Nickell, and Mary P. White ("the defendants") appealed a circuit court's judgment on an arbitration award entered against them. Because the defendants' appeal was untimely, the Alabama Supreme Court dismissed the appeal. View "Wynlake Residential Association, Inc, et al. v. Hulsey et al." on Justia Law

The City of Gulf Shores ("the City") petitioned the Alabama Supreme Court for a writ of mandamus to direct the Baldwin Circuit Court to dismiss tort claims brought against the City. The City contended the claims were barred by the recreational-use statutes found at 35-15-1 et seq., Ala. Code 1975. In June 2018, Sophia Paulinelli (minor) was injured while walking on a wooden boardwalk owned by the City. The boardwalk ran over beach property and allowed pedestrians to access the public beach. In addition to owning the boardwalk, the City owned the beach property on which the boardwalk sat. Sophia was walking on the boardwalk behind a man when the man stepped on a board, causing the board to spring up from the boardwalk. The dislodged board had a screw protruding from it, and the board and screw fell on Sophia's foot, impaling the screw in her big toe. In May 2019, Sophia's father, Ronald Paulinelli, sued the City and fictitiously named defendants claiming negligence and wantonness. The City moved for summary judgment, arguing it was entitled to immunity under the recreational-use statues. Two precedential cases were central to Ronald's argument the City was not entitled to immunity. The Supreme Court found nothing in the record that the City ever presented to the circuit court the arguments that it presented to the Supreme Court regarding the applicability of those decisions. Accordingly, the Court did not consider those arguments, and denied the City's petition. The Court expressed no opinion regarding the merits of Ronald's claims; rather the Court's decision was based on the City's failure to preserve key arguments before the circuit court. View "Ex parte City of Gulf Shores." on Justia Law

Norma Peinhardt and Larry Todd, who sought to sell real property and a divide of the sale proceeds, appealed a trial court's grant of summary judgment entered against them and in favor of Louise Peinhardt and Amelia Peinhardt. The property at issue was originally owned by Louis Peinhardt, who died in 1964. Louis had three children by his first wife Emma: Amelia, Herman ("Louis Jr.") and Louise; Louis had one daughter by his second wife, Marie: Linda Chambers. In 1965, Marie, Linda, and Linda's husband Leon executed a deed granting title to real property to Louis Jr., Amelia, and Louise. In 2006, Louis Jr. filed a complaint seeking a sale for division of the property. For reasons that not entirely clear from the record, the case remained idle at the circuit court for several years. However, on June 22, 2016, Louis Jr. executed a warranty deed in which he purported to convey his interest in the subject property to his wife, Norma Peinhardt ("Norma"), and his stepson, Larry Todd ("Larry"), "as joint tenants with a right of survivorship." In 2020, Amelia and Louise filed a summary-judgment motion in which they contended that a survivorship provision was part of the 1965 deed, and therefore Louis Jr.'s conveyance of his interest in the property to Norma and Larry was a nullity because Amelia and Louise had not granted consent to the conveyance. The Alabama Supreme Court determined the 1965 deed conveyed a joint tenancy in the portion of the subject property at issue rather than a tenancy in common with a right of survivorship. As a result, Louis Jr.'s conveyance of his interest in the portion of the subject property at issue was permissible. Accordingly, the circuit court's grant of summary judgment was issued in error. The matter was remanded for further proceedings. View "Peinhardt v. Peinhardt" on Justia Law

The Sumter County Board of Education ("the SCBE") appealed a circuit court's dismissal of its complaint asserting claims of reformation of a deed, breach of contract, and fraud, as well as seeking declaratory and injunctive relief, against the University of West Alabama ("UWA"); UWA's president Dr. Kenneth Tucker, in his individual and official capacities; and UWA's former president, Dr. Richard Holland, in his individual and official capacities. Because a new high school had been built, in early 2010 the SCBE closed Livingston High School ("LHS"). Shortly thereafter, officials from UWA approached the SCBE about the possibility of purchasing the LHS property. In 2011, a "Statutory Warranty Deed" conveying the LHS property from the SCBE to UWA ("the deed") was executed, and it was signed on the SCBE's behalf by Dr. Morton. The deed did not contain any restrictions on the LHS property or its use. The deed was recorded in the Sumter Probate Court on June 27, 2011. In May 2017, the University Charter School ("UCS") filed an application with the Alabama Public Charter School Commission ("the APCSC") to establish a charter school in Sumter County. In its application, UCS stated that the LHS property was its first choice for the location of the school. The APCSC approved UCS's application in July 2017. In October 2017, it was publicly announced that UWA had an agreement with UCS for UCS to use the LHS property to house its school.3 The SCBE's complaint alleged that in November 2017 the SCBE contacted UWA president Dr. Tucker and "requested that Defendant UWA honor its covenant not to use Livingston High School property as a K-12 charter school." However, UCS continued its preparations, and in August 2018 UCS opened its charter school on the LHS property with over 300 students attending. In May 2018, the SCBE filed the complaint at issue here, and the circuit court ultimately dismissed the complaint. Because the Alabama Supreme Court found that a restrictive covenant in the sales contract violated clear public policies of the Alabama School Choice and Student Opportunity Act, the restrictive covenant was unenforceable. Therefore, the circuit court's judgment dismissing all the claims against the University defendants was affirmed. View "Sumter County Board of Education v. University of West Alabama, et al." on Justia Law

The City of Birmingham ("the City") appealed a circuit court's denial of its motion to vacate a quiet-title judgment in favor of Metropolitan Management of Alabama, LLC ("Metropolitan"). In 1999, the State of Alabama purchased a parcel of property at a tax sale. The City's Director of Finance conducted a public sale, selling and conveying a delinquent demolition assessment against the property. The City purchased that assessment interest and, in February 2007, recorded a deed showing the conveyance. In 2017, the property was sold by the State, and Michael Froelich, who was the managing member of Metropolitan, obtained title to the property by a tax deed. Froelich conveyed the property to Metropolitan by quitclaim deed. In 2018, Metropolitan commenced a quiet title action, naming Constance Wambo as a defendant possessing an interest in the property, and identified as fictitiously named defendants "any individuals and/or entities who may claim an interest now or in the future in the property ..., whose true identity is currently unknown to [the] Plaintiff." Metropolitan filed an affidavit in which Froelich averred that he, after a diligent search with the assistance of an attorney, had been unable to identify any other interest holders. In November 2019, the court entered a judgment quieting title to the property in Metropolitan, conveying to Metropolitan fee-simple title to the exclusion of all others, voiding any claims of the defendants, and making Metropolitan's claim of interest superior to any other. In early 2020, Metropolitan's attorney contacted counsel for the City regarding the City's recorded assessment interest. In June 2020, the City filed a motion to intervene in the quiet-title action and a motion to vacate the judgment as void under Rule 60(b)(4). The court denied the City's motion to vacate without stating grounds. The Alabama Supreme Court reversed, finding the law imputes to purchasers knowledge of the contents of recorded documents, and that such constructive notice of a defendant's residence generally suffices for "know[ledge]" of that residence under Rule 4.3(b). Metropolitan did not provide any reason why a reasonable probate-records search would not have disclosed the City's deed. Because Metropolitan had knowledge of the City's residence, Metropolitan's service by publication without first attempting another means of service failed to comply with Rule 4.3(b). View "City of Birmingham v. Metropolitan Management of Alabama, LLC" on Justia Law