Justia Alabama Supreme Court Opinion Summaries

Petitioners B2K Systems, LLC, a Delaware limited-liability company; Ingenuity International, LLC, a foreign corporation; and Robert A. Przybysz, sought a writ of mandamus seeking enforcement of an outbound forum-selection clause and the reversal of a preliminary injunction entered by an Alabama Circuit Court. This matter arose out of a business dispute. Respondent Nannette Smith, was the founder and president of, and the sole shareholder in, B2K Systems, Inc., a Birmingham-based Alabama corporation that developed specialized software for point-of-sale retailers. In 2012, B2K, Inc. sold its assets to B2K Systems, LLC (a corporation set up for the purpose of acquiring B2K Inc's assets). Przybysz, the managing member and CEO of B2K LLC and Ingenuity, executed the promissory note on behalf of B2K LLC and the guaranty agreement on behalf of Ingenuity. That same day, B2K LLC and Smith entered into the employment agreement, pursuant to which Smith became president of B2K LLC. Each agreement (an asset-purchase agreement, employment agreement, promissory note, and guaranty agreement) contained a forum-selection clause. All the agreements provided that the law of the State of Delaware would govern (the forum selection clauses in each lie at the heart of this appeal). Following the purchase, relations between Smith and B2K LLC deteriorated. In 2014, Przybysz acted to terminate Smith's employment with B2K LLC, "for cause." The same day, B2K LLC filed for and received a temporary restraining order ("TRO") from a Kent, Michigan Circuit Court. Along with its request for the TRO, B2K LLC filed a lawsuit against Smith alleging breach of Smith's employment agreement with B2K LLC, breach of fiduciary duty, and breach of the asset-purchase agreement. The day after the Michigan TRO was issued, Smith filed a complaint and a petition for a TRO in Alabama ("the trial court"), seeking her own TRO against the petitioners and also seeking monetary damages for breach of the employment contract and the promissory note. The Alabama court issued the TRO. Petitioners then moved to dissolve the TRO and to dismiss Smith's lawsuit, arguing, in part, that under the various forum-selection clauses contained in the parties' agreements, either the Kent, Michigan Circuit Court or the United States District Court for the Western District of Michigan were the exclusive forums for Smith's lawsuit. Smith argued that venue in the Alabama court was proper, that the forum-selection clauses were permissive rather than mandatory, and that Michigan was a seriously inconvenient forum. The trial court noted that the forum-selection clauses were "inartful" and concluded that venue was proper in both Alabama and Michigan. The petitioners filed this petition for a writ of mandamus 13 days after the entry of the preliminary injunction. Because the Alabama Supreme Court was presented "with no viable argument or citation of authority regarding the proper standards for interpreting or enforcing the forum-selection clauses at issue," it declined "to disturb the trial court's determination that its exercise of authority in this case was not prohibited by those clauses." As such, petitioners failed to establish a clear legal right to the dismissal of Smith's action based on the forum-selection clauses. As to the venue issue, the petition for the writ of mandamus was also denied: Smith failed to convince the Court that, without the injunction, she would suffer irreparable injury. View "Smith v. B2K Systems, LLC et al" on Justia Law

Petitioners-defendants Lt. Harvey Ruffin, a correctional officer at the Bullock Correctional Facility; Sgt. Shelton Patterson, a correctional officer; Sandra Giles, the deputy warden of the facility; and Kenneth Jones, the warden , all petitioned the Alabama Supreme Court for a writ of mandamus to direct the circuit court to grant their motion for summary judgment on immunity grounds. Petitioners were named in a suit brought by an inmate, Thomas Donahey, Jr., who was attacked by another inmate. Donahey alleged that the petitioners negligently, wantonly, and recklessly failed to protect him from the attack. Based on the uncontroverted evidence, the petitioners were entitled to immunity from all the claims asserted against them by Donahey. Accordingly, the petitioners met their burden showing a clear legal right to the relief sought, and the trial court was therefore directed to enter a summary judgment in their favor. View "Donahey, Jr. v. Ruffin" on Justia Law

The issue this case presented for the Supreme Court's review centered on the Court of Criminal Appeals' decision ordering the Limestone Circuit Court to set bail for Joel Moyers. Moyers was charged with a capital offense, and an issue arose over whether a defendant so charged was entitled to bail if the State did not intend to seek the death penalty. The State argued that the Court of Criminal Appeals' decision in this matter conflicted with longstanding Alabama case law ("Ex parte Bynum," 312 So. 2d 52 (1975)). Alternatively, the State argued that the Court of Criminal Appeals' decision raised a material question of first impression that required decision by the Supreme Court. Based on the plain meaning of the statutory and constitutional provisions and the development of the case law in this area, the Supreme Court held that a "capital offense" within the meaning of constitutional and statutory provisions relating to bail is an offense that is punishable by death or by life imprisonment without the possibility of parole. Therefore, when a defendant who is charged with a capital offense requests a trial court to set bail, under Ex parte Bynum, the court can deny that request for bail even if the State will not seek the death penalty. However, in order for the trial court to deny a request for bail from a defendant charged with a capital offense, the State must prove the three prerequisites noted in "Ex parte Patel," (879 So. 2d 532 (Ala. 2003)): "'The evidence must be clear and strong, that it would lead a well-guarded and dispassionate judgment to the conclusion that (1) the offense has been committed; (2) the accused is the guilty agent; and (3) he would probably be punished capitally if the law is administered.'" Moreover, Ex parte Patel held that if a defendant has been indicted for a capital offense, that defendant is presumed guilty for purposes of setting bail, and the defendant has the burden to overcome that presumption before he or she is entitled to bail as a matter of right. The Supreme Court reversed the judgment of the Court of Criminal Appeals and remanded this case for further proceedings. View "Alabama v. Moyers " on Justia Law

In 2011, Elizabeth Morton, a resident of Greene County, and Annie Watkins, a resident of Jefferson County, were involved in a motor-vehicle collision in Jefferson County. Watkins was treated at a hospital in Jefferson County and subsequently received medical treatment at four health-care facilities located in Jefferson County. In 2013, Watkins filed a complaint in Greene County against Morton, asserting claims arising out of the 2011 collision. Morton filed a motion to transfer this case to the Jefferson Circuit Court pursuant to the doctrine of forum non conveniens. Watkins responded, and the Greene Circuit Court entered an order denying Morton's motion, stating: "After review of [Watkins's] response, the Motion to Transfer Venue of defendant [. . .] is hereby denied. . ." Morton then filed a petition for a writ of mandamus. The Supreme Court granted the writ: Jefferson County had a significantly stronger connection to this case than did Greene County, "which is connected to this case only by the fact that Morton resides there –- a connection this Court has characterized as 'weak.' Morton has met her burden of showing that transfer of this action to Jefferson County is justified in the interest of justice." View "Watkins v. Morton " on Justia Law

Daniel Senior Living of Inverness I, LLC, d/b/a Danberry at Inverness successfully appealed to the Court of Civil Appeals a circuit court decision to affirm the issuance by the State Health Planning and Development Agency ("SHPDA") a certificate of need (CON) to STV One Nineteen Senior Living, LLC, d/b/a Somerby at St. Vincent's One Nineteen on an "emergency" basis. The Supreme Court granted Somerby's petition for review of the Court of Appeals, and finding no reversible error, affirmed that court's decision. View "Daniel Senior Living of Inverness I, LLC v. STV One Nineteen Senior Living, LLC" on Justia Law

State Farm Mutual Automobile Insurance Company petitioned the Supreme Court for a writ of mandamus to direct the Clarke Circuit Court to vacate its order denying State Farm's motion to transfer this case to the Mobile Circuit Court and to enter an order granting the motion. The underlying action arose from an automobile accident that occurred in Mobile County in 2010. Sandra Banks, a resident of both Clarke and Mobile Counties, sued Robert Spray, a resident of Baldwin County, and State Farm. Banks alleged that she suffered injuries as a result of the wrongful, negligent, and/or wanton conduct of Spray when the vehicle he was driving and owned struck her vehicle. Additionally, Banks alleged that at the time of the accident she had a policy of insurance with State Farm, which included uninsured-/underinsured-motorist coverage, and that she was due proceeds under her coverage. Because both the "convenience of parties and witnesses" and the "interest of justice" prongs of the doctrine of forum non conveniens compelled the transfer of this case from Clarke County to Mobile County, the Supreme Court concluded the trial court abused its discretion in refusing to transfer the action. Therefore, the Court granted State Farm's petition and issued a writ directing the Clarke Circuit Court to vacate its order and to enter an order granting the motion.View "Banks v. Spray" on Justia Law

The parties in this case separately petitioned the Supreme Court for review of the Court of Civil Appeals' judgment overturning an award of property from the estate of Estelle Haggerty Alexander. The decedent owned 270 acres of property, and died intestate. Following a bench trial, the court divided the six parcels of land that constituted Estelle's estate, finding that the plaintiffs and their ancestors had adversely possessed three parcels by living on the land and engaging in certain activities there but that the heirs of Larenda Jenkins, as holders of legal title, were entitled to the other three, farmed parcels. Holding that the plaintiffs' possession of the land was permissive rather than adverse, the Court of Civil Appeals reversed the circuit court's judgment in part and instructed the circuit court that title to all six parcels should be quieted in the heirs of Larenda Jenkins. After careful consideration of the facts of this case, the Supreme Court reversed and remanded: "[t]he Court of Civil Appeals stated the ore tenus rule in its standard-of-review section, but in its analysis of the evidence did not accord the circuit court's findings the required deference. . . . we conclude that credible evidence was presented to support the circuit court's allotment to the plaintiffs of the three parcels . . .it is a rare case when this Court will overturn a finding by a trial judge who hears an adverse possession case presented ore tenus." View "Stokes, Jr. v. Cottrell" on Justia Law

Calvin Kendrick and K & D Automotive, Inc. sued the City of Montgomery, the City's employees Eddie Hill, Jr., Nathaniel Bracy, and Scott Adams, Tony's Automotive, L.L.C. and Tony's Automotive's owner Tony D. Brooks and manager Ellen F. Brooks asserting various due-process claims after, on two occasions, the City declared vehicles parked at K&D Automotive to be public nuisances under the City nuisance ordinance and authorized Tony's Automotive to abate the nuisances by removing the vehicles from the premises. The trial court thereafter entered a summary judgment in favor of the City defendants and the Tony's Automotive defendants on those claims; however, Kendrick and K&D have established on appeal that a judgment as a matter of law was not warranted on counts 5, 7, 8, 9, and 11 of their amended complaint. The Supreme Court reversed the trial court's grant of summary judgment as to those counts. Kendrick and K&D did not establish, however, that the trial court erred by entering a summary judgment in favor of the defendants on count 10, and that judgment was accordingly affirmed. View "K & D Automotive, Inc. v. The City of Montgomery" on Justia Law

The L.B. Whitfield, III Family LLC appealed a circuit court judgment that ordered the Family LLC to wind up its affairs following its dissolution on the death of its sole member and to return 22 shares of Class A voting stock in Whitfield Foods, Inc. to Virginia Ann Whitfield, Almeida Fair Whitfield Strawder, and Valerie Lee Whitfield Puckett ("the sisters"). Upon review of the dispute, the Supreme Court concluded that the trial court erred in ordering the Family LLC to return the 22 voting shares to only the sisters. The Court affirmed the portion of the trial court's judgment finding that the Family LLC was dissolved and ordering that the Family LLC must wind up its affairs, provide an accounting of its assets, distribute those assets in equal shares to Louie, Virginia Whitfield, Valerie Puckett, and Almeida Strawder, and file articles of dissolution in the office of the judge of probate of Montgomery County.View "L.B. Whitfield, III Family LLC v. Whitfield et al. " on Justia Law

Paul Kennamer and Dorothy Kennamer appeal an order entered by the Marshall Circuit Court compelling them to arbitrate their claims against Ford Motor Credit Company LLC and Ray Pearman Lincoln, Inc. (the dealership). The Kennamers had problems with the used car they purchased and stopped making payments on the loan they obtained through Ford Credit and the dealership. After review of the retail-installment contract at the center of this controversy, the Supreme Court affirmed the circuit court's decision insofar as it granted the dealership's motion to compel arbitration and reversed insofar as it granted Ford Credit's motion to compel arbitration. View "Kennamer v. Ford Motor Credit Company LLC" on Justia Law