Justia Alabama Supreme Court Opinion Summaries

Defendant Jim Burke Automotive, Inc. petitioned the Supreme Court for a writ of mandamus directing the Hale Circuit Court to vacate its order denying Jim Burke Automotive's motion to transfer the action to the Jefferson Circuit Court and to enter an order transferring the action. After Jim Burke Automotive had performed some repair work on a vehicle owned by Vulah and Andrew Smith, the vehicle was involved in an accident in Hale County. The Smiths sued Jim Burke Automotive at the Hale Circuit Court, asserting claims of negligent repair of the vehicle, wanton repair of the vehicle, breach of contract, and fraud. Andrew Smith also claimed damages for loss of consortium. Jim Burke Automotive moved to transfer the case to the Jefferson Court for improper venue, because the all repair work was performed in Jefferson County, and all the alleged acts or omissions giving rise the the Smiths' claims took place in Jefferson County. Upon review of Jim Burke Automotive's petition, the Supreme Court concluded it demonstrated a clear legal right to a writ of mandamus. The Court directed the Hale Court to vacate its order and transfer this action to Jefferson. View "Ex parte Jim Burke Automotive, Inc." on Justia Law

Emma Carter Hardy, acting on behalf of the estate of Julius Carter, Sr., appealed a final order entered by the Montgomery Circuit Court against her and in favor of Julius Hardin in a will contest. Hardy was the daughter of Julius Carter, Sr.; Hardin was the son of Thelma Carter Malone, who was also Carter's daughter. Hardy filed a petition with the Probate Court for letters of administration as to Carter's estate. Hardy alleged in the petition that Carter had died "leaving no Last Will and Testament, so far as [Hardy] knows or believes," and that the only asset of Carter's estate was a parcel of real property located in Montgomery County. The parcel of real property consisted of approximately 180 acres that Carter had farmed. At a hearing for the final settlement of the estate, Hardin filed a letter challenging the estate's administration. The Supreme Court found that the probate court noted Hardin failed to prove fraud as he alleged at the final settlement hearing. The Court therefore concluded the circuit court erred by reversing the probate court and rendering judgment in Hardin's favor. Accordingly, the circuit court was reversed and the matter remanded for further proceedings. View "Hardy ex rel. the Estate of Julius Carter, Sr. v. Hardin" on Justia Law

Aliant Bank appealed the entry of an injunction against it by the Shelby Circuit Court enjoining it from interfering with a contract for the sale of real property between Kimberly and Kerry Carter, on the one hand, and Gregory and Robyn Nunley, on the other. The Carters owned, as joint tenants, a piece of real property located in Shelby County. The Carters used the property to secure a mortgage from Mortgage Electronic Registration Systems, Inc. ("MERS"). In addition to the MERS mortgage, three creditors secured judgments against Kerry Carter against the property. Aliant was fourth to secure its judgment lien against Kerry Carter. On August 21, 2014, the Carters entered into a contract with the Nunleys for the sale of the property. At the time the Carters entered into the contract, the judgment liens against the property had not been satisfied. The preliminary settlement statement for the sale of the property indicated that a portion of the sale proceeds would be used to pay off the outstanding mortgage held by MERS on the property. The first judgment creditor thereafter agreed to release its judgment lien on the property in exchange for a smaller portion of the sale proceeds. The record did not indicate that the second or third judgment creditor agreed to release its judgment lien against the property. However, the record was clear that Aliant refused to release its judgment lien against the property. Apparently, Aliant's refusal to execute a release of its judgment lien inhibited the closing of the contract. On September 14, 2014, the Carters sued Aliant, alleging that Aliant had intentionally and maliciously refused to execute a partial release of the property "in order to prohibit [Kerry] Carter from being able to fulfill his obligations under the purchase contract even though all profits due Kerry Carter are being disgorged and paid to the appropriate judgment creditor, [the first judgment creditor]." The trial court granted an injunction against Aliant. Subsequently, Aliant petitioned the Alabama Supreme Court for a writ of mandamus directing the circuit court to vacate its injunction order. The Supreme Court treated Aliant's petition for a writ of mandamus as a timely notice of appeal. After the Supreme Court recharacterized Aliant's petition, Aliant filed its appellant's brief. Instead of filing an appellee's brief, the Carters moved to dismiss Aliant's petition as moot, alleging that the property had been foreclosed upon by MERS. The Carters did not present the Supreme Court with any evidence indicating that MERS had, in fact, foreclosed upon the property. Aliant opposed the motion to dismiss. After review, the Supreme Court agreed with the Carters that the injunctive relief they requested was no longer attainable and that, consequently, the case was no longer justiciable. Accordingly, the Supreme Court dismissed Aliant's appeal. View "Aliant Bank v. Carter" on Justia Law

Federal Insurance Company appealed a circuit court order denying its motion to compel arbitration of the breach-of-contract claim asserted against it by Kert Reedstrom. In 2008, Reedstrom entered into a written employment agreement with Marshall-Jackson Mental Health Board, Inc., d/b/a Mountain Lakes Behavioral Healthcare ("MLBHC"), to begin serving as its executive director in Guntersville. During the course of Reedstrom's employment with MLBHC, MLBHC held an executive-liability, entity-liability, and employment-practices-liability policy issued by Federal Insurance that generally protected certain MLBHC officers and employees described as "insureds" in the policy from loss for actions committed in the course of their employment with MLBHC. It was undisputed that Reedstrom was an "insured" covered by the Federal Insurance policy. The Federal Insurance policy contained an arbitration provision. A separate endorsement to the Federal Insurance policy further highlighted the arbitration provision and explained that its effect was that any disagreement related to coverage would be resolved by arbitration and not in a court of law. In July 2010, MLBHC terminated Reedstrom's employment and, in December 2010, Reedstrom sued MLBHC alleging that his termination constituted a breach of his employment contract. MLBHC asserted various counterclaims against Reedstrom based on his alleged misconduct while serving as executive director. Thereafter, Reedstrom gave Federal Insurance notice of the claims asserted against him and requested coverage under the terms of the Federal Insurance policy. Federal Insurance ultimately denied his claim and refused to provide him with counsel to defend against MLBHC's claims. A jury returned a verdict awarding Reedstrom $150,000 on his claim against MLBHC and awarding MLBHC $60,000 on its claims against Reedstrom. Consistent with its previous denial of his request for coverage, Federal Insurance refused Reedstrom's request to satisfy the judgment entered against him. Reedstrom sued Federal Insurance, asserting one claim of breach of contract and seeking $72,000 in damages ($60,000 for the judgment entered against him and $12,000 for the attorney fees he incurred in defending those claims). The Supreme Court reversed and remanded, finding that the trial court did not articulate its rationale for denying the motion to compel arbitration. The denial was apparently based on the court's resolving at least one of the arbitrability issues raised by Reedstrom in his favor and against Federal Insurance. However, because the subject arbitration provision delegated to the arbitrators the authority to resolve such issues, the trial court erred by considering the waiver and nonsignatory issues raised by Reedstrom instead of granting the motion to compel arbitration and allowing the arbitrators to resolve those issues. View "Federal Insurance Company v. Reedstrom" on Justia Law

Jeffrey Johnson, by a through his aunt and next friend, Sue Thompson, appeals from the Mobile Circuit Court's dismissal of his action against Jim Reddoch, in his official capacity as commissioner of the Alabama Department of Mental Health ("ADMH"), Beatrice McLean, in her official capacity as director of Searcy Hospital, and McLean and fictitiously named defendants 1 through 8 in their individual capacities. Johnson also appealed the circuit court's quashing of a subpoena served on ADMH seeking records pertaining to Johnson. Johnson was a 40-year-old patient at Searcy who suffered from paranoid schizophrenia. According to the complaint, Johnson's condition was so severe that Johnson was "required to be under constant 2-on-1 supervision by [ADMH] employees at Searcy Hospital." This supervision was supposed to be in place 24 hours a day, 7 days a week. In 2012, Johnson was severely beaten in his ward at Searcy. He collapsed and he was taken to University of South Alabama Hospital. Medical testing showed that, as a result of the beating, he suffered severe and life-threatening injuries, including internal bleeding, severe bruising to his face and body, a fractured nose, and several broken ribs. Johnson alleged Searcy's mental-health workers failed to keep him under the required constant supervision and failed to immediately report his injuries. After review of his complaint, the Alabama Supreme Court affirmed in part and reversed in part. The circuit court correctly dismissed Johnson's claims against Reddoch and McLean in their official capacities. The circuit court erred in dismissing Johnson's claims against McLean and the fictitiously named defendants in their individual capacities. The case was remanded for further proceedings, including consideration of Johnson's subpoena for discovery served on ADMH. View "Johnson v. Reddoch" on Justia Law

The City of Pike Road appealed a circuit court judgment holding that a manufacturing facility owned and operated by Dow Corning Alabama, Inc., located in Mt. Meigs, an unincorporated part of Montgomery County, was within the police jurisdiction of the City of Montgomery as opposed to the police jurisdiction of Pike Road. Finding no reversible error in that judgment, the Alabama Supreme Court affirmed. View "City of Pike Road v. City of Montgomery" on Justia Law

The Alabama Corrections Institution Finance Authority ("ACIFA") and its ex officio vice president Kim Thomas appealed a judgment entered on a jury verdict awarding $5 million in compensatory damages to Albert Wilson, Donald Simmons, Rufus Barnes, Bryan Gavins, Joseph Danzey, and a class of current and former nonexempt correctional officers employed by the Alabama Department of Corrections ("ADOC"). The correctional officers sued ADOC and its commissioner alleging ADOC was violating its own regulations and state law in the manner in which it: (1) compensated correctional officers for overtime; (2) restricted the way correctional officers were allowed to use earned leave; and (3) paid correctional officers the daily subsistence allowance provided by law. The Supreme Court reversed the judgment in favor of the correctional officers, finding that there was a lack of substantial evidence in support of the officers' claims against ACIFA and against Thomas as ex officio vice president of ACIFA. As such, defendants were entitled to a judgment as a matter of law. View "Alabama Corrections Institution Finance Authority v. Wilson et al." on Justia Law

Michael Howard appealed the grant of summary judgment entered against him in the action he commenced on behalf of himself and all other similarly situated taxpayers in Cullman County against Cullman County and its Revenue Commissioner Barry Willingham, in his official capacity. Howard sought a refund of property taxes he and other taxpayers paid in 2013. Howard sought a judgment declaring that, pursuant to former section 40-7-42, the Commission's levy of property taxes for October 1, 2012, through September 30, 2013, was invalid because it was done in May 2013 rather than at the Commission's first regular meeting in February 2013. He also sought the return of property taxes collected in 2013. The Supreme Court found that the trial court correctly concluded that the Commission's failure to follow the timing provision of former 40-7-42 did not invalidate its subsequent levy in 2013 of property taxes upon Howard and other property owners in Cullman County. Therefore, the Court affirmed summary judgment on all of Howard's claims in favor of Cullman County and the revenue commissioner. View "Howard v. Cullman County" on Justia Law

These appeals before the Supreme Court were the result of a family dispute that occurred following the death of Mr. B.J. Kirkley in 2011, concerning his will and his interest in Kirkley LLC.Karen Ann Kribel Kirkley, individually and as personal representative of the estate of B.J. Kirkley; Holly Muncie; and J. Alexander Muncie III ("Alex"), as trustee of the Karen Ann Kribel Kirkley Testamentary Trust appealed a circuit court's "order regarding granting of new trial" in favor of Donna Jo Kirkley Phillips and Kirkley, LLC (appeal no. 1130812). Donna Jo and Kirkley LLC cross-appealed the same order, but also filed a motion to dismiss the appeal filed by the estate plaintiffs on the basis that the order was not a final order and that the monetary judgment in the case has been satisfied (appeal no. 1130850). The Supreme Court agreed that the circuit court's order was not final, so the appeals were dismissed. View "Kirkley v. Phillips" on Justia Law

U.S. Bank National Association ("USB"), successor in interest to Bank of America, N.A., which was the successor by merger to LaSalle Bank, National Association, as trustee for Structured Asset Investment Loan Trust, Mortgage Pass-Through Certificates, Series 2004-4 ("the Trust"), and Bank of America, N.A. ("BOA"), separately appealed a $3.9 million judgment entered against them on trespass and wantonness claims asserted by Chester and Emily Shepherd. USB also appealed the trial court's judgment in favor of the Shepherds on its claims related to an alleged error in a mortgage executed by the Shepherds upon which the Trust had foreclosed. The Alabama Supreme Court reversed. "'Every single one of these cases . . . rejects the availability of negligence and wantonness claims under Alabama law under comparable circumstances to those identified by the [plaintiffs]. Every one of these cases undercuts the legal viability of [the plaintiffs' negligence and wantonness claims], and rejects the very arguments articulated by the [plaintiffs] in opposing dismissal of those causes of action. ... the mortgage servicing obligations at issue here are a creature of contract, not of tort, and stem from the underlying mortgage and promissory note executed by the parties, rather than a duty of reasonable care generally owed to the public. To the extent that the [plaintiffs] seek to hold defendants liable on theories of negligent or wanton servicing of their mortgage, [those negligence and wantonness claims] fail to state claims upon which relief can be granted.'" View "U.S. Bank National Ass'n v. Shepherd" on Justia Law