Justia Alabama Supreme Court Opinion Summaries

The Alabama Department of Corrections ("ADOC"), the Alabama Corrections Institution Finance Authority ("ACIFA"), and Kim Thomas, in his official capacities as the commissioner of ADOC and as ex officio vice president of ACIFA, petitioned the Supreme Court for a writ of mandamus to direct the Montgomery Circuit Court to vacate its May 2012 order denying their motion seeking a partial summary judgment and requested the court enter a new order granting their motion. In 2010, Albert Wilson, Rufus Barnes, Joseph Danzey, Bryan Gavins, and Donald Simmons, all of whom were employed by ADOC as correctional officers, sued ADOC and its then commissioner Richard Allen alleging that 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 plaintiffs also sought class certification on behalf of all other similarly situated correctional officers employed by ADOC and requested injunctive relief, as well as money damages, to include backpay with interest, punitive damages, and litigation costs and expenses, including attorney fees. Because ADOC and Thomas, in his official capacity as commissioner of ADOC, were entitled to State immunity on those claims, the Court granted the petition as to ADOC and Thomas, in his capacity as commissioner of ADOC, and issued the writ. However, ACIFA and Thomas, in his official capacity as vice president of ACIFA, did not argue that they were entitled to State immunity on the claims asserted against them; rather, they argued that those claims lacked merit. That argument presented an insufficient basis upon which to issue a writ of mandamus, and the Supreme Court therefore denied the petition with regard to the those claims because ACIFA and Thomas had an adequate remedy on appeal. View "Wilson v. Thomas " on Justia Law

The Boys & Girls Clubs of South Alabama, Inc. ("the Club"), a nonprofit corporation, appealed a judgment entered in favor of the Fairhope-Point Clear Rotary Youth Programs, Inc. ("Rotary Inc."), and the Ruff Wilson Youth Organization, Inc. ("Wilson Inc."), in their action against the Club seeking declaratory and injunctive relief. In 1996, B.R. Wilson, Jr., one of the incorporators of the Club and a principal benefactor, executed a "gift deed," transferring to the Club approximately 17 acres of real estate ("the property"). In March 2000, the Club sold the property and deposited the proceeds into three separate accounts, two of which were separately earmarked for the Daphne Club and for the Fairhope Club. However, in 2009, the Club discontinued its operations in Daphne and Fairhope, citing "operating deficits" as a contributing factor. It transferred the remainder of the proceeds from the sale of the property to an account in the Community Foundation of South Alabama ("the bank"). Later that year, the facilities in Daphne and Fairhope were reopened by volunteers and former Club personnel, who began operating the youth centers under their own independent management structures. Subsequently, some of these individuals incorporated Rotary Inc. and Wilson Inc., under which they continued to operate the facilities in Fairhope and Daphne, respectively. Rotary Inc. and Wilson Inc. sued the Club, seeking declaratory and injunctive relief, alleging that the Club "ha[d] used," or, perhaps, was "anticipat[ing] using," the proceeds for its own operations, rather than for the use of the facilities then being operated by Rotary Inc. and Wilson Inc. They sought a judgment: (1) declaring that the "desire and understanding" of B.R. Wilson expressed in the letter controlled the disposition of the funds, and (2) enjoining the use of the proceeds for anything but the benefit of the youth facilities as operated by Rotary Inc. in Fairhope and by Wilson Inc. in Daphne. The court ordered the termination of the "trust" and the disbursal of the remainder of the proceeds to Rotary Inc. and Wilson Inc., respectively. The Club appealed, challenging, among other things, the standing of Rotary Inc. and Wilson Inc. to sue over distribution of the proceeds of the sale of the property. Upon review, the Supreme Court concluded that Rotary Inc. and Wilson Inc. failed to show that they had standing to challenge the Club's disposition of the proceeds of the sale of the property donated to the Club by B.R. Wilson, Jr. Therefore, the trial court's judgment was void for lack of subject-matter jurisdiction. Accordingly, the Court vacated the judgment and dismissed the case and the appeal. View "Boys & Girls Clubs of South Alabama, Inc. v. Fairhope-Point Clear Rotary Youth Programs, Inc." on Justia Law

Peacock Timber Transport, Inc. ("Peacock"), appealed the grant of summary judgment entered by the Montgomery Circuit Court in favor of B.P. Holdings, LLC, William Blount, Derek Parrish, Diamond Homes, LLC, and Sunbelt Environmental, LLC ("the defendants"). Blount and Parrish are partners in Blount Parrish & Company ("BPC"), an investment firm that specializes in public financing. In 2001 Blount formed Diamond Homes to take over unfulfilled contracts that had been entered into by a now bankrupt company, Dencraft Furniture Company; Blount and Parrish owned Diamond Homes in equal portions. In relation to a bond issue closed by BPC, B.P. Holdings had acquired an interest in Dencraft before its bankruptcy. In their efforts to make Diamond Homes succeed, Blount and Parrish had personally guaranteed substantial debt taken on by Dencraft and by Diamond Homes. Diamond Homes eventually "closed down with very few assets, mostly unused raw materials, and several hundred thousand in debt, some of which was guaranteed by [Blount] and/or [Parrish]." Peacock obtained a judgment against B.P. Holdings. Although Blount was a defendant in Peacock's action and although judgment in that action was entered against B.P. Holdings, the judgment stated that "[s]aid verdict was also returned in favor of ... Blount." Parrish was not a party to Peacock's 2003 action. $1,120,000 was deposited in B.P. Holdings' account as compensation for work BPC and others had performed on behalf of Jefferson County in closing a bond issue -- at that time, B.P. Holdings had not yet satisfied the 2003 judgment. The amount of the fee earned by BPC for the Jefferson County transaction was used to pay other consultants; B.P. Holdings did not earn any portion of the $1,120,000 but, according to Parrish's affidavit testimony, was used as a conduit to receive the money and to transfer the money to the appropriate parties. Blount's deposition testimony indicated that he was aware of the 2003 judgment at the time of the transfer but that he "believe[d] [that] the judgment [had been] appealed. So [he] [did not] know if that judgment was a live judgment or not." Peacock then sued B.P. Holdings, Blount, and Parrish seeking to have the transfer set aside as fraudulent. Upon review, the Supreme Court reversed the summary judgment in favor of the defendants, and remanded the case for the circuit court to determine whether Peacock was entitled to avoid the transfer under the AFTA and whether the corporate veil of B.P. Holdings should be pierced, thereby holding Blount and Parrish personally liable for the transfer. View "Peacock Timber Transport, Inc. v. B.P. Holding, LLC, et al. " on Justia Law

Myrtis Hill sued Fairfield Nursing and Rehabilitation Center, LLC ("Fairfield"); D&N, LLC ("D&N"); DTD HC, LLC ("DTD"); Donald T. Denz; Norbert A. Bennett; Aurora Cares, LLC; and Aurora Healthcare, LLC (collectively referred to as "the defendants"). Hill stated claims based upon the Alabama Medical Liability Act ("the AMLA"), arising out of the fact that she suffered a broken leg while being helped out of bed by a nursing assistant at a nursing home owned and operated by Fairfield ("Fairfield Nursing Home"). Before trial, on motion of the defendants, the trial court entered a summary judgment in favor of all the defendants except Fairfield. At trial, at the conclusion of Hill's case-in-chief, the trial court entered a judgment as a matter of law in favor of Fairfield. Hill appealed the judgments of the trial court as to all the defendants. Upon review, the Supreme Court reversed: Hill presented substantial evidence, including the testimony of a registered nurse and doctor that she suffered a broken leg and that this injury was caused by a breach of the applicable standard of care. Consequently, the trial court erred in entering a judgment as a matter of law in favor of Fairfield, and that judgment was due to be reversed. The case was remanded for further proceedings. View "Hill v. Fairfield Nursing & Rehabilitation Center, LLC" on Justia Law

Howard M. Schramm, Jr., appealed a March 6, 2012, judgment of the Baldwin Circuit Court approving pier construction permits issued to Schramm's neighbors, George G. Spottswood and Amy H. Spottswood, by the Alabama Department of Conservation and Natural Resources ("DCNR") and Baldwin County even though the proposed pier would violate the 10-foot setback rule in the applicable DCNR and Baldwin County rules and regulations. The Spottswoods crossappealed the order of the Baldwin Circuit Court denying their January 9, 2012, motion to alter, amend, or vacate its February 27, 2007, judgment setting the boundaries of their riparian-use area. Upon careful consideration of the trial court record, the Supreme Court found no error and affirmed. View "Schramm, Jr. v. Spottswood " on Justia Law

The Phenix City Board of Education ("the Board") sought mandamus relief from the Russell Circuit Court's denial of the Board's motion to dismiss or, in the alternative, for a summary judgment on claims brought against it by The Lisle Company, Inc. ("Lisle"). Because the Board is immune from suit pursuant to § 14, Ala. Const. 1901, the Supreme Court granted the Board's petition and issued the writ. View "Lisle Company, Inc. v. Phenix City Board of Education" on Justia Law

Petitioners George D. Green and Wanda Green, the plaintiffs in a personal-injury action pending in the Monroe Circuit Court, petitioned the Supreme Court for a writ of mandamus to direct that court to vacate its order transferring the underlying action to the Conecuh Circuit Court. The complaint sought damages for assault and battery; it alleged that the defendants Paul Battle and Garth Morris "shot[] [George] with a shotgun." George sought damages for physical injuries and mental anguish; Wanda sought damages for loss of consortium. The complaint further alleged that the Greens and Morris were residents of Conecuh County and that Battle was a resident of Pensacola, Florida. Battle filed a motion seeking, among other things, a transfer of the case to Conecuh County. Upon review, the Supreme Court concluded that venue was proper in Monroe County; the Greens have thus demonstrated that the trial court erred in transferring the case. The Supreme Court granted the petition and directed the trial court to vacate its order. View "Green v. Morris" on Justia Law

East Alabama Medical Center ("EAMC") petitioned the Supreme Court for a writ of mandamus to direct the Randolph Circuit Court to transfer the action filed against it by John Tinney to the Lee Circuit Court. Tinney represented Jerry Benefield in a personal-injury action arising out of a motor-vehicle accident. Benefield was treated at EAMC for injuries he sustained in the accident. EAMC filed a hospital lien in Lee County for $3,361 against any recovery Benefield might receive in settlement of his personal-injury action. Tinney recovered a settlement for Benefield. As part of the settlement, Progressive Insurance Company issued a check made payable to EAMC and Tinney in the amount of $3,361. Tinney then filed the underlying lawsuit against EAMC in the Randolph Circuit Court, claiming that he had asked EAMC to allow him to receive 40% of the lien check as an attorney fee but that EAMC "failed and refused to negotiate the check or to agree on a division of the money." EAMC moved to transfer the action to Lee County stating that its principal office is located in Opelika, Lee County; that Lee County is where all actions taken by EAMC, such as telephone calls and letters, occurred; and that EAMC has no facilities and does no business by agent in Randolph County. Upon review, the Supreme Court concluded that EAMC proved that venue was not proper in Randolph County, therefore the trial court erred in denying EAMC's motion to transfer the case to Lee County. View "Tinney v. East Alabama Medical Center" on Justia Law

BancorpSouth Bank petitioned the Supreme Court for a writ of mandamus to direct the trial court to vacate its order denying the bank's motion to strike a jury demand in the complaint filed against it by Plaintiff Thomas L. Busby and to enter an order granting the Bank's motion, thereby enforcing Busby's waiver of a jury trial. The dispute arose from a construction loan to which Plaintiff Busby guaranteed. The loan agreement contained the jury trial waiver in the event of a dispute between the parties. The borrower defaulted on the loan, and the bank sought payment from Plaintiff. Plaintiff sued the bank, alleging multiple counts of fraud, misrepresentation and breach of contract. Upon review, the Supreme Court concluded that the bank demonstrated that it had a clear legal right to have the jury demand stricken. Accordingly the Court granted the petition, issued the writ, and directed the trial court to enter an order granting the bank's motion. View "Busby v. BancorpSouth Bank" on Justia Law

According to Braden Furniture Company, Inc., between 2003 and 2010, Bonnie Manning, an assistant bookkeeper, accessed Braden Furniture's accounting program and created over 200 unauthorized checks, totaling over $470,000, that she then deposited in her account at Union State Bank. The majority of the checks did not identify a payee. Braden Furniture sued Union State Bank, RBC Bank, and Manpower, Inc., alleging common-law negligence and wantonness and violations of sections 7-3-404(d), 7-3-405(b), and 7-3-406, Ala. Code 1975. Union State Bank moved for a summary judgment. The trial court entered summary judgment for the Bank. Upon review, the issue before the Supreme Court was whether provisions in the Alabama Uniform Commercial Code ("the UCC") displaced common-law claims of negligence and wantonness when a drawer seeks to recover the loss of payment for unauthorized checks. Braden Furniture contended that the trial court erred in holding that the provisions of the UCC displaced its common-law claims of negligence and wantonness because, allowing its common-law claims to proceed did not "create rights, duties and liabilities inconsistent" with the UCC. The Supreme Court concluded that the trial court did not err in entering a summary judgment for Union State Bank in this regard. View "Braden Furniture Company, Inc. v. Union State Bank " on Justia Law