Justia Alabama Supreme Court Opinion Summaries

Bryant Bank appealed the grant of partial summary judgment in favor of defendants Talmage Kirkland & Company, Inc., d/b/a Kirkland & Company ("TKC"), and Quentin Ball and Jason Stoutamire, appraisers for TKC. This case arose out of an appraisal of real property conducted by TKC for Bryant Bank in the course of Bryant Bank's consideration of a loan application submitted by Wallace Seafood Traders, Inc. ("WST"), in September 2007 for the purchase of the property, which WST was renting and out of which it was operating its business. The Bryant Bank employees responsible for approving WST's loan application suspected that the value of the property might have been overstated in TKC's appraisal. However, Bryant Bank approved WST's loan application and issued the loan to WST. Ultimately, WST defaulted on the loan. Bryant Bank obtained another appraisal of the property from a different appraisal firm; this new appraisal indicated that the property had a value that differed drastically from that which TKC had appraised. Bryant Bank sued the defendants, alleging breach of contract and negligent misrepresentation arising from its reliance on TKC's appraisal report in issuing the loan to WST. In their partial-summary-judgment motion, the defendants argued that Ball and Stoutamire were entitled to a summary judgment as to the breach-of-contract claim because they were acting as agents of a disclosed principal, Bryant Bank. As to the negligent misrepresentation claim, the defendants argued that they were entitled to a summary judgment in their favor because: (1) the opinion of value expressed in TKC's appraisal report could not serve as the basis of a negligent-misrepresentation claim; (2) Bryant Bank had not relied upon TKC's valuation; and (3) the claim was barred by the statute of limitations. The Supreme Court concluded the Bank presented substantial evidence that it relied on TKC's appraisal of the property, and that each of the arguments defendants raised in their partial-summary-judgment motion did not warrant the entry of a summary judgment in their favor with respect to the Bank's negligent misrepresentation claim. Therefore, Court reversed the trial court's order and remanded the case for further proceedings. View "Bryant Bank v. Talmage Kirkland & Company, Inc." on Justia Law

Volcano Enterprises, Inc., d/b/a Club Volcano, appealed the denial of its Rule 60(b)(4), Ala. R. Civ. P., motion to set aside the judgment entered against it in a wrongful-death action filed by Peggy Bender Rush, as administratrix of the estate of her husband Derric Rush and as his widow, and by Dashton Rush, the Rushes' minor son, by an through his mother and next friend, Peggy Bender Rush. The complaint alleged that police officer James Kendrick met a friend of his at Club Volcano after Kendrick's shift had ended. The complaint alleged Kendrick consumed a substantial amount of alcohol while sitting in a parked vehicle in the parking lot of the club, after which he entered the club with his friend. Kendrick allegedly "remained for several hours" in the club, that while there he "became visibly intoxicated," and that, "despite his "visibly intoxicated condition, [he] was served additional alcohol and allowed to leave in an intoxicated condition." In his intoxicated condition, Kendrick allegedly drove his vehicle in a manner that caused the death of Derric Rush. In order to serve Volcano and its owner with her complaint, Rush employed a process server, who after three attempts, was unable to serve Volcano a copy of the complaint. There was a question at trial over whether Volcano's owner was actively attempting to avoid service. Rush resorted to service by publication. Volcano alleged service by publication was insufficient in this case. The Supreme Court concluded Rush had the burden of demonstrating that Volcano's owner avoided service, which the Court concluded she did not do. Therefore, the trial court erred in failing to grant Volcano's motion to set aside the default judgment. View "Volcano Enterprises, Inc. v. Rush" on Justia Law

Southeast Construction, L.L.C. ("SEC") appealed a Circuit Court order enforcing, a previous judgment entered by that court based on an arbitration award in favor of WAR Construction, Inc ("WAR"). Upon review of the facts of this case, the Supreme Court affirmed in part, reversed in part, and remanded for further proceedings. The Court concluded the circuit court erred in finding in a January 9 order that "all liens and claims against SEC ... from WAR's subcontractors/suppliers that filed a lien on the project ... ha[d] been released and/or adequate security ha[d] been provided." Furthermore, the Court concluded the circuit court erred in finding that WAR had "attempt[ed] to comply with what the Supreme Court ordered the circuit court to implement as of May 13, 2011," and that WAR was entitled to have the interest owed under the arbitrators' award and the May 9 judgment calculated from that date. View "Southeast Construction, L.L.C. v. WAR Construction, Inc. " on Justia Law

Keone Kaukawele Fuqua ("the father") filed a petition asking that the Probate Court allow him to change the legal name of his daughter from Lyvia Grace Russell to Lyvia Grace Russell-Fuqua. Megan Marie Russell ("the mother") opposed the petition, and she appealed the court's court order granting the father's petition. Upon review, the Supreme Court concluded the probate court had no subject-matter jurisdiction over the parties' name-change dispute, and therefore vacated the order and dismissed the appeal. View "Russell v. Fuqua " on Justia Law

This case arose from a contract between Roanoke Healthcare Authority (doing business as Randolph Medical Center) and Batson-Cook Company, a general contractor, to renovate the medical center, located in Roanoke. Batson-Cook received written notice from Roanoke Healthcare that work on the renovation project had been suspended. Batson-Cook notified one of its subcontractors, Hardy, of the suspension and stated that "[t]he contract has been suspended by [Roanoke Healthcare] through no fault of Batson-Cook ... or its subcontractors. [Roanoke Healthcare] is currently out of funding and has subsequently closed the facility while seeking a buyer." Liberty Mutual, the project's insurer, alleged in its answer that Roanoke Healthcare failed to pay Batson-Cook $241,940.51 for work performed pursuant to the contract. Batson-Cook sent Hardy a change order the change order deducted from the subcontract the $147,000 in equipment and materials another subcontractor Hardy hired, Johnson Controls, Inc. (JCI), had furnished for the renovation project and for which it has not received payment. JCI notified Liberty Mutual, Roanoke Healthcare, Batson-Cook, and Hardy by certified letters of its claim on a payment bond. The letters identified Batson-Cook as the general contractor and Hardy as the debtor. Liberty Mutual denied the claim. JCI sued Liberty Mutual, alleging JCI was entitled to payment on the payment bond Liberty Mutual had issued to Batson-Cook. Upon review, the Supreme Court concluded JCI was a proper claimant on the payment bond. Therefore, the circuit court erred in entering a summary judgment in favor of Liberty Mutual and denying JCI's summary judgment motion. View "Johnson Controls, Inc. v. Liberty Mutual Insurance Company " on Justia Law

Alfa Life Insurance Corporation ("Alfa") and Brandon Morris, an agent for Alfa, appealed a judgment entered against them following a jury verdict for Kimberly Colza, the widow of Dante Colza. In 2010, Morris met with Dante to assist him in completing an application for a life-insurance policy. There was disputed evidence as to whether Morris asked Dante whether he had had a moving traffic violation, a driver's license suspended, or an accident in the prior three years, it was undisputed that Morris entered a checkmark in the "No" box by that question. The evidence indicated that Dante applied for the Preferred Tobacco premium rate. Dante named Kimberly as the beneficiary under the policy. At the close of the meeting, Kimberly wrote a check payable to Alfa for $103.70, the monthly Preferred Tobacco premium rate. Kimberly testified at trial that Morris informed them that Dante would be covered as soon as they gave Morris the check. Dante was later examined by the medical examiner. During the examination, Dante informed the examiner that his family had a history of heart disease and that he had had moving traffic violations within the past five years. The day after he had his medical examination, Dante was killed in an accident. Two days later, Alfa received the medical examiner's report, which indicated that Dante's family had a history of heart disease, that Dante's cholesterol was above 255, and that Dante had had moving traffic violations in the past five years. In light of the report, Alfa's underwriters determined that Dante was not eligible for the Preferred Tobacco rate for which he had applied; rather, the proper classification would have been the Standard Tobacco rate (which had a higher premium). Additionally, in light of the moving vehicle violations, Dante was a greater risk to insure and a "rate-up" of $2.50 per $1,000 worth of coverage was required. Alfa notified Kimberly by letter that no life-insurance coverage was available for Dante's death "because no policy was issued and the conditions of coverage under the conditional receipt were not met." Kimberly sued Alfa seeking to recover under the terms of the conditional receipt (an acknowledgment of the policy). She alleged, among other claims, that Alfa had breached the contract and had acted in bad faith when it refused to pay life-insurance benefits on Dante's death. Kimberly also sued Morris, alleging, among other claims, that he had negligently failed to procure insurance coverage for Dante. After a trial, the jury found that Alfa had breached the contract and had in bad faith refused to pay the insurance benefits due, and that Morris had negligently failed to procure insurance. Upon review, the Supreme Court concluded Alfa and Morris were entitled to a judgment as a matter of law on those claims, and the trial court erred by submitting the claims to the jury for consideration. View "Alfa Life Insurance Corporation v. Colza " on Justia Law

Lambert Law Firm, LLC ("Lambert"), petitions the Supreme Court for a writ of mandamus to direct the Circuit Court to set aside an order awarding respondent Shawn Brechbill a portion of certain funds filed with the Circuit Court clerk. Brechbill, was represented by the law firm of Morris, Conchin & King. He sued State Farm Fire and Casualty Company seeking damages for breach of contract and bad-faith failure to pay an insurance claim. The law firm filed the initial complaint, prepared various pleadings, conducted discovery, engaged experts, and filed a response to a motion for a summary judgment filed by State Farm. Later, the law firm withdrew its representation of Brechbill. The trial court held a hearing and issued an order stating that the law firm would have a lien against any settlement or judgment that became payable to Brechbill arising from his claims against State Farm. Ultimately, the law firm's interest in the lien was assigned to Gary Conchin, a partner in the law firm. Brechbill hired Lambert to continue the litigation. Brechbill ultimately received a judgment against State Farm on his breach-of-contract and bad-faith claims. At some point after the judgment was entered, Lambert withdrew from further representation of Brechbill, and the trial court entered an order granting Lambert a lien on any recovery Brechbill might be awarded. State Farm elected to appeal the verdict on the bad-faith claim, but paid one-half of the amount of the verdict in satisfaction of the verdict on the breach-of-contract claim to the circuit court clerk. While State Farm's appeal was pending, both Conchin and Lambert moved to "condemn" the funds held by the circuit clerk. Brechbill also moved the trial court to release the funds to him. Upon review of the competing claims for the money, the Supreme Court concluded that the trial court clearly acted within its discretion in refusing, at the time of the hearing, to determine the amount of the liens at issue. "However, given the mandatory nature of section 34-3-61, the priority of the two liens in this case, and the limited funds to which the liens attached, the trial court must first determine the amount of the fees owed to ensure that any preliminary disbursement would not divest the fund of money in which, by law, another party would have a priority in interest." The Court held that Lambert demonstrated a clear legal right to relief, and therefore directed the trial court to vacate its May 30, 2013, order and to hold further proceedings. View "Brechbill v. State Farm Fire & Casualty Co." on Justia Law

The City of Birmingham appealed a Court of Civil Appeals affirmance of a summary judgment in favor of plaintiff Ernest Alexander in light of the Supreme Court's decision in "Ervin v. City of Birmingham." Upon execution of a search warrant of Alexander's home, federal drug enforcement agents and Birmingham police found marijuana, $38,675 in cash, cocaine, a firearm, and digital scales. In October 2009, a complaint for the civil forfeiture of the $38,675 was filed in the federal district court. Alexander failed to respond to the complaint or to take any action to reclaim the money. The federal court entered a default judgment of forfeiture as to the money on August 10, 2010. On March 16, 2011, Alexander filed a complaint in the Circuit Court seeking the return of the $38,675. He argued that the money had been seized but that no state forfeiture or condemnation proceeding had been filed as required by statute. The City filed a motion to dismiss or, in the alternative, for a summary judgment, arguing, in part, that the trial court did not have jurisdiction over this matter. Based on the intervening change of law set forth in "Ervin," the Court of Civil Appeals' decision in the previous Alexander case ("Alexander I") was "clearly erroneous." Therefore, the Court of Civil Appeals erred when it relied on the law-of-the-case doctrine and on its prior decision in determining that its decision in Alexander I was not subject to appellate review and that the City was not entitled to relief based upon the Supreme Court's decision in Ervin. The Supreme Court reversed the Court of Civil Appeals' judgment and remanded this case for further proceedings. View "City of Birmingham v. Alexander" on Justia Law

Don Davis, in his capacity as the Judge of Probate for Mobile County, appealed a Circuit Court's final judgment in favor of then Secretary of State Beth Chapman and the three members of the Mobile County Board of Registrars: Pat Tyrrell, Shirley Short, and Virginia Delchamps. The matter before the Supreme Court concerned a regulation promulgated by the Secretary in an effort to comply with certain federal election laws and an asserted conflict between that regulation and the residency requirement prescribed by three Alabama election statutes. Upon review, the Supreme Court reversed the judgment of the circuit court: "Alabama statutory law continues to require, as it long has, that voters who have moved cast ballots at the polling place designated for their new address. Further, Ala. Admin 20 Code (Secretary of State), Reg. 820-2-2-.13(1), was not and is not required by NVRA or HAVA. Because Reg. 820-2-2-.13(1) expressly contradicts Alabama statutory law, it is void." View "Davis v. Bennett" on Justia Law

Larry Dunaway filed a Rule 32, Ala. R. Crim. P. petition challenging his 1997 convictions for the capital murder of his girlfriend Tressa Patterson and her 22-month-old son James. The Rule 32 court entered an order denying Dunaway's petition, and the Court of Criminal Appeals affirmed. Dunaway petitioned for a writ of certiorari to review the Court of Criminal Appeals' decision in "Dunaway II." The Court granted the writ to consider: (1) Dunaway's claims of misconduct by four jurors who allegedly failed to disclose pertinent information during voir dire; (2) Dunaway's claim that the Rule 32 court erred by denying his "Brady v. Maryland" (373 U.S. 83 (1963)) claims that he was denied due process as a result of the District Attorney's failure to disclose alleged relationships between him and certain jurors; and (3) Dunaway's claim that he received ineffective assistance of trial counsel during the sentencing phase of his trial. Because the Supreme Court concluded that Dunaway was entitled to a new trial based on his juror-misconduct claim, the Court declined to address the nondisclosure claim as to the DA and the ineffective-assistance-of-counsel claim. View "Dunaway v. Alabama " on Justia Law