Justia Alabama Supreme Court Opinion Summaries

Gary Everett Martin obtained a home-equity line of credit (HELOC) from BBVA USA Bancshares, Inc. (BBVA) in May 2008, secured by a mortgage on his residential property. In June 2008, Martin hired Joseph T. Scarborough, Jr., and Scarborough & Griggs, LLC (S&G) for legal representation in a divorce action. In June 2012, Martin executed a promissory note in favor of S&G for legal fees, secured by a second mortgage on the property. The attorney-client relationship ended in June 2013, and the promissory note and mortgage were later assigned to Scarborough. In June 2019, BBVA foreclosed on the property, and Scarborough purchased it at the foreclosure sale.The Lee Circuit Court granted summary judgment in favor of Scarborough, S&G, and BBVA, dismissing Martin's counterclaims and awarding possession of the property to Scarborough. The court found Martin's claims against the Scarborough parties time-barred under the Alabama Legal Services Liability Act (ALSLA) and dismissed his claims against BBVA as time-barred or unsupported by substantial evidence.The Supreme Court of Alabama reviewed the case. It found a genuine issue of material fact regarding the validity of the foreclosure sale, as the sale price was significantly lower than the property's fair market value, potentially indicating fraud or unfairness. Consequently, the court reversed the summary judgment in favor of Scarborough on his ejectment claim and remanded the case for further proceedings. However, the court affirmed the summary judgment in favor of the Scarborough parties and BBVA regarding Martin's counterclaims, finding them time-barred or unsupported by substantial evidence. View "Martin v. Scarborough" on Justia Law

Hudgen LeBlanc and Jodi LeBlanc filed a complaint against Residence Doctor Home Inspection, LLC, and its owner-operator, Terry J. Holder, alleging negligence, wantonness, gross negligence, fraudulent/innocent misrepresentation, suppression, and breach of contract. The claims arose from a pre-purchase home inspection performed by Holder, which the LeBlancs claimed failed to report structural issues with the flooring of the home they purchased. Instead, the report only mentioned "microbial growth" on the floor joists and recommended hiring a mold-remediation specialist. After purchasing the home, the LeBlancs hired a mold-remediation specialist who discovered rotten floor joists, costing nearly $40,000 to repair.The St. Clair Circuit Court granted summary judgment in favor of the inspection company and Holder on the negligence and breach-of-contract claims and dismissed the fraud, suppression, and wantonness claims with prejudice. The court found that the LeBlancs failed to provide expert testimony to establish the applicable standard of care or Holder's breach of that standard, which was necessary to prove their claims.The Supreme Court of Alabama reviewed the case de novo. The court held that expert testimony is required to establish a home inspector's breach of the applicable standard of care, similar to other professionals such as real-estate appraisers, engineers, and architects. The LeBlancs did not present expert testimony or establish that the breach was so obvious that it did not require expert testimony. Consequently, the Supreme Court of Alabama affirmed the trial court's summary judgment in favor of the inspection company and Holder. View "LeBlanc v. Residence Doctor Home Inspection, LLC" on Justia Law

Shymikka Griggs filed a data-breach action against NHS Management, LLC, a consulting firm providing management services for nursing homes and physical-rehabilitation facilities. NHS collects sensitive personal and health information from employees, patients, and vendors. In May 2021, NHS discovered a cyberattack on its network, which lasted 80 days. NHS notified affected individuals, including Griggs, in March 2022. Griggs, a former NHS employee, claimed her personal information was found on the dark web, leading to credit issues, spam communications, and fraudulent activities.Griggs initially filed a class-action complaint in the United States District Court for the Northern District of Alabama but later dismissed it. She then filed a class-action complaint in the Jefferson Circuit Court in June 2023, alleging negligence, negligence per se, breach of contract, invasion of privacy, unjust enrichment, breach of confidence, breach of fiduciary duty, and violation of the Alabama Deceptive Trade Practices Act. NHS moved to dismiss the complaint, arguing lack of standing and failure to state a claim. The Jefferson Circuit Court dismissed Griggs's complaint with prejudice.The Supreme Court of Alabama reviewed the case and affirmed the circuit court's judgment. The court held that Griggs failed to sufficiently plead her claims. Specifically, she did not demonstrate that NHS owed her a duty under Alabama law, failed to establish proximate cause for her negligence per se claim, did not allege intentional conduct for her invasion-of-privacy claim, and did not show that she conferred a benefit on NHS for her unjust-enrichment claim. Additionally, the court found that breach of confidence is not a recognized cause of action in Alabama and that Griggs did not establish a fiduciary relationship between her and NHS. View "Griggs v. NHS Management, LLC" on Justia Law

In 2017, CNU of Alabama, LLC, and Shakeena Cox entered into a loan agreement allowing Cox to take cash advances. Cox took three advances totaling $1,250 but later defaulted. CNU assigned its rights to UHG I LLC, which then sued Cox in Mobile District Court. Cox argued the agreement, including an arbitration provision, was void under the Alabama Small Loan Act. The district court agreed and ruled in Cox's favor.UHG appealed to the Mobile Circuit Court, where Cox filed a counterclaim on behalf of herself and a class, adding CNU as a party and seeking injunctive relief and damages. Both companies moved to compel arbitration based on the agreement's arbitration provision. The circuit court denied the motions, holding that the agreement and arbitration provision were void under the Small Loan Act, the arbitration provision was unconscionable, and UHG had waived its right to arbitrate by appealing the district court's decision. UHG and CNU appealed.The Supreme Court of Alabama reversed the circuit court's decision denying the motions to compel arbitration for Cox's counterclaim, holding that the arbitration provision was valid and enforceable. The court determined that challenges to the agreement's validity, including claims of voidness and unconscionability, were for an arbitrator to decide. However, the court affirmed the circuit court's decision that UHG waived its right to arbitrate its initial collection claim by pursuing it in court. The case was remanded for further proceedings consistent with these findings. View "CNU of Alabama, LLC v. Cox" on Justia Law

John A. Daugherty, an attorney, filed a breach-of-contract claim against his former client, Molly Chew Baker, in the Jefferson Circuit Court. Daugherty and Molly had an agreement where Daugherty would help Molly collect alimony arrears from her ex-husband, Christopher, on a contingency-fee basis. Daugherty later agreed to represent Molly in additional matters related to her divorce, including a petition to modify alimony payments filed by Christopher. Molly eventually terminated Daugherty's services, and Daugherty sought to recover his fees through the court.The Jefferson Circuit Court dismissed Daugherty's complaint, concluding that the contingency-fee arrangement in the contract was against public policy under Rule 1.5(d)(1) of the Alabama Rules of Professional Conduct, which prohibits contingency fees in domestic relations matters involving alimony or support. The court also noted that the contract did not provide for compensation in the event of a settlement, which occurred when Molly and Christopher jointly dismissed their respective petitions.Daugherty appealed to the Supreme Court of Alabama, arguing that the contingency-fee arrangement was permissible under an exception for collecting alimony arrears after a completed divorce. However, the Supreme Court affirmed the lower court's decision, noting that Daugherty's representation extended beyond collecting arrears to include ongoing alimony matters, which did not fall under the exception. Additionally, Daugherty's claim for quantum meruit was not properly pleaded in the lower court and was inconsistent with his breach-of-contract claim. The Supreme Court concluded that the circuit court's judgment was correct and affirmed the dismissal of Daugherty's complaint. View "Daugherty v. Baker" on Justia Law

In 2012, two individuals, Moore and Lloyd, obtained a $185,000 judgment against Mikul and Sanders. They applied for a writ of execution to auction two properties owned by Mikul and Sanders, and they were the highest bidders for one parcel at $130,000. Mikul, who resided on the property, contested the sale, claiming ownership and arguing that the sale price was unconscionably low. The Shelby Circuit Court initially ruled in favor of Moore and Lloyd, granting them possession of the property. Mikul's subsequent appeals and motions to intervene were denied, and the Alabama Supreme Court affirmed the lower court's decision without an opinion.Moore and Lloyd then filed an action in the Shelby Circuit Court seeking immediate possession of the property. The court granted their motion but stayed the execution of the judgment. Over the years, Moore and Lloyd filed multiple motions to dissolve the stay and sought writs of execution, but the court repeatedly denied their requests. In 2022, the Alabama Supreme Court noted that Moore and Lloyd had not argued that the stay was "immoderate" in the lower court and suggested they seek dissolution of the stay in the original action.Moore and Lloyd filed a motion to dissolve the stay in 2022, arguing it was immoderate. The Shelby Circuit Court, however, did not dissolve the stay and instead set the matter for a trial. The Alabama Supreme Court reviewed the case and concluded that the stay, which had been in place for six years, was indefinite and without continued justification, making it immoderate and beyond the court's discretion. The Supreme Court issued a writ of mandamus directing the circuit court to dissolve the stay and a writ of prohibition to vacate the orders setting the case for trial, limiting the court to issuing orders necessary to wind up the litigation. View "Ex parte Moore" on Justia Law

Hexagon US Federal, Inc. ("HexFed") leased a portion of a building from Intergraph Unimproved Properties, LLC in 2015. The lease included two bays with different terms and renewal options. In 2016, the lease was amended to provide a five-year term for both bays. CBS Holdings, LLC later acquired the building and the lease. A dispute arose over whether HexFed had validly renewed the lease, leading HexFed to file a lawsuit against CBS Holdings for breach of the lease agreement.The Madison Circuit Court held a bench trial and ruled in favor of HexFed, finding that CBS Holdings had waived its right to argue that the lease for one of the bays had expired after 12 months. The court also reformed the lease to correct a mutual mistake, establishing that the maximum monthly rent for the bay did not expire after one year. The court declared that HexFed had properly exercised its renewal option and awarded HexFed costs and attorneys' fees.The Supreme Court of Alabama reviewed the case and affirmed the lower court's judgment. The court held that CBS Holdings had waived its argument about the lease term by accepting rent without objection and by executing a lease amendment without changing the lease term. The court also upheld the reformation of the lease, finding clear evidence of a mutual mistake. Additionally, the court agreed that HexFed had validly renewed the lease by providing timely written notice, despite an error in the rent calculation. Finally, the court affirmed the award of costs and attorneys' fees to HexFed, as it was forced to file the action to enforce the lease. View "CBS Holdings, LLC v. Hexagon US Federal, Inc." on Justia Law

Dwight D. Sikes appealed a judgment from the Choctaw Circuit Court, where Michelle M. Kirkland, representing Kenneth McIlwain's estate, had obtained a judgment against him. The case involved land originally owned by Dwight's father, James Sikes, which was deeded to Dwight's brother, Archie, and subsequently to Kenneth and Patricia McIlwain. The McIlwains sued Dwight, alleging his livestock trespassed and caused damage. Dwight counterclaimed, alleging the McIlwains improperly removed James's personal property, and cross-claimed, arguing James was not competent when deeding the land to Archie.The Choctaw Circuit Court ordered Dwight to remove his livestock but did not rule on his counterclaim. After the McIlwains passed away, Kirkland was substituted as the plaintiff. The court later ruled against Dwight on his cross-claim, finding James competent when deeding the land, but did not address the counterclaim. Dwight appealed this judgment.The Supreme Court of Alabama reviewed the case and noted that the lower court had not disposed of all claims, specifically Dwight's counterclaim regarding the removal of personal property. The court emphasized that a final judgment must conclusively determine all issues and rights of the parties. Since the trial court's judgment did not address the counterclaim or fully resolve the initial trespass and nuisance claims, it was not a final judgment.Consequently, the Supreme Court of Alabama dismissed Dwight's appeal due to the lack of a final judgment, as the unresolved claims deprived the court of jurisdiction. View "Sikes v. Kirkland" on Justia Law

Theresa Johnson, individually and as executor of her deceased husband Nathaniel Johnson's estate, filed a wrongful-death action against Jackson Hospital & Clinic, Inc. Nathaniel, suffering from COVID-19, was admitted to Jackson Hospital on November 26, 2020. He was placed on a BiPAP device for breathing assistance. On December 6, 2020, he was to be moved to another floor. During the transfer, the BiPAP device was removed, and an oxygen mask was allegedly placed on him. However, Nathaniel experienced distress and died shortly after.The Montgomery Circuit Court initially granted Jackson Hospital's motion for summary judgment, but later set it aside to allow further discovery. Johnson argued that Jackson Hospital's actions were wanton and did not comply with public health guidance. The trial court ultimately denied Jackson Hospital's renewed motion for summary judgment, holding that Johnson's action could proceed under an exception in the Alabama Covid Immunity Act (ACIA).The Supreme Court of Alabama reviewed the case. It found that Jackson Hospital was immune from Johnson's negligence claims under the ACIA and the May 8 proclamation issued by Governor Ivey, which provided liability protections for health-care providers during the COVID-19 pandemic. The court also determined that Johnson did not present clear and convincing evidence of wanton conduct by Jackson Hospital's staff. Consequently, the Supreme Court of Alabama granted Jackson Hospital's petition for a writ of mandamus, directing the trial court to enter a summary judgment in favor of Jackson Hospital on all claims. View "Ex parte Jackson Hospital & Clinic, Inc." on Justia Law

A wrongful-death medical-malpractice action was initiated by Donna Ratliff, representing the estate of Rhoda Gail McBride, against Dr. Frances Koe and Wills Valley Family Medicine, LLC. McBride had sought treatment for leg pain and was diagnosed with a blood clot, for which she was prescribed Coumadin, a blood thinner. McBride's daughter, Ratliff, claimed that neither she nor McBride were adequately informed about the necessity of regular blood tests to monitor the medication's effects. McBride subsequently suffered a fatal brain bleed due to "Coumadin toxicity."The DeKalb Circuit Court jury returned a verdict in favor of Dr. Koe and Wills Valley. However, the trial court granted Ratliff's motion for a new trial, vacating the jury's verdict. The trial court concluded that the defendants had not presented sufficient evidence to support their contributory-negligence defense, which alleged that McBride's failure to attend follow-up appointments contributed to her death.The Supreme Court of Alabama reviewed the case and reversed the trial court's judgment. The court found that there was sufficient evidence to support the contributory-negligence defense, including testimony that McBride had been informed about the need for regular blood tests and the dangers of Coumadin. The court held that the jury's verdict was supported by the evidence and that the trial court had erred in granting a new trial. The case was remanded for further proceedings consistent with this opinion. View "Koe v. Ratliff" on Justia Law