Justia Alabama Supreme Court Opinion Summaries

Articles Posted in Trusts & Estates
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The Industrial Development Board of the City of Montgomery (IDB) appealed a circuit court's interlocutory order that denied its motion for summary judgment as to a breach-of-contract claim asserted against it by George and Thomas Russell as co-executors and co-trustees of the wills and testamentary trusts of Earnest and Myrtis Russell, Price and Mary McLemore and several others. In 2001, various officials of the State of Alabama, the City of Montgomery, the Montgomery County Commission, Montgomery Chamber of Commerce and the local water works board began making preparations to secure options to purchase property in the Montgomery area in an attempt to persuade Hyundai Motor Company to build an automobile plant in the area. All the trusts owned acres of land in the targeted area. The IDB signed separate options with the Russells, the McLemores and other trusts to purchase the respective properties. Hyundai's plans for its manufacturing plant changed, and subsequently, not all of the options were exercised. The Russells and the McLemores each filed breach-of-contract actions against the IDB and Hyundai alleging that neither adhered to the terms of their respective options. Upon review, the Supreme Court found that the trial court did not err in denying the IDB's motion for summary judgment. The Court affirmed the lower court's decision. View "Indust. Develop. Bd. of the City of Montgomery v. Russell" on Justia Law

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Petitioner Beverly Scannelly petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate all orders it entered after she filed a notice of dismissal. Furthermore, Petitioner sought a writ of prohibition to restrain the lower court from future attempts to exercise jurisdiction over her case. Petitioner sued her brother, Respondent Gary Toxey, in 2009, seeking to void certain real-estate transfers her father made to Mr. Toxey. Petitioner filed, sought dismissal, and refilled her complaint three times in three different circuit courts. Mr. Toxey "answered" Petitioner’s complaint approximately one year later by filing a responsive pleading that collaterally attacked her complaint under "res judicata." The circuit court dismissed her case in 2010, finding that Mr. Toxey essentially filed a motion for summary judgment and that Petitioner’s claims presented no issues of material fact. In affirming the circuit court’s decision, the Supreme Court concluded that Petitioner failed to demonstrate she had a clear legal right to her requested writs. Accordingly, the Court denied her petition. View "Scannelly v. Toxey" on Justia Law

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Virginia McClung appealed a circuit court judgment that reformed a deed that conveyed an interest in land to her and her brother. In 1979 Ms. McClung’s parents divorced. Their separation agreement conveyed two parcels of property to their adult children, Ms. McClung and Charles Green, as "tenants in common, reserving unto [the parents] a life estate therein." At that time, none of the parties recognized a discrepancy between the separation agreement and the actual deed, which conveyed the property to the siblings as "joint tenants with the right of survivorship." The deed was recorded, the parents divorced, and the divorce decree "ratified and confirmed" the separation agreement. In 1992, Charles Green died. His sole heir was his 21-year-old daughter, Bridget Williams. Loretta Green, Ms. McClung’s mother died in 2007 leaving Ms. McClung as her sole heir. Subsequently, a dispute arose between Senior Green and his daughter over who was entitled to the rental income Loretta had previously received from the property. The father sued his daughter seeking all rents received from the property. In his suit, Mr. Green argued that he and his ex-wife intended that his children take the property as tenants-in-common after his and Loretta’s life estates expired. But owing to a mutual mistake, the deed had erroneously conveyed the property as a joint tenancy with the right of survivorship. Mr. Green’s granddaughter joined in the lawsuit because she inherited her father’s interest in the property if the court reformed the deed. A month after he commenced his suit, Mr. Green died. The trial court ruled in his (and his granddaughter’s) favor, and Ms. McClung appealed to the Supreme Court. Upon review of the trial record, the court found that before the 1979 deed could be reformed, there must be evidence to indicate that Loretta Green did not intend to convey the property to her children as joint tenants with rights of survivorship. Neither the separation agreement nor the recorded deed accurately reflected Loretta’s intent at the time either document was executed. Accordingly, the Court found that the trial court’s reformation of the 1979 deed was inappropriate. The Court reversed the lower court’s decision and remanded the case for further proceedings. View "McClung v. Green" on Justia Law