Justia Alabama Supreme Court Opinion Summaries

In a dispute involving the foreclosure of a home, the Supreme Court of Alabama upheld the decisions of the lower court in favor of the purchasers of the foreclosed property and the mortgagee. The original homeowners, the Littlefields, defaulted on their mortgage payments and the property was subsequently foreclosed on by Planet Home Lending, LLC ("Planet"), and then sold to Terry Daniel Smith and Staci Herring Smith. The Littlefields refused to vacate the property, leading the Smiths to initiate an ejectment action against them. The Littlefields responded with counterclaims against the Smiths and Planet, arguing that the foreclosure was void because Planet had failed to comply with the mortgage's notice requirements. The Supreme Court of Alabama rejected the Littlefields' arguments, holding that any alleged noncompliance with the notice requirements would have rendered the foreclosure voidable, not void. The court concluded that because the Littlefields did not challenge the foreclosure before the property was sold to the Smiths, who were considered bona fide purchasers, the foreclosure could not be set aside. The court also noted that the Littlefields failed to challenge other rulings related to their counterclaims against Planet and their forfeiture of redemption rights, leading to these aspects of the lower court's judgment being affirmed as well. View "Littlefield v. Smith" on Justia Law

The Supreme Court of Alabama has reversed an order by the Dale Circuit Court, which held Omni Healthcare Financial, LLC in contempt for failing to comply with a subpoena. This case arose from claims asserted by Amy Lee Walker against Eric Irvin Reese and SCP Distributors, LLC, following an automobile collision. Omni, a North Carolina-based factoring company, had purchased certain accounts receivable from a medical provider who had treated Walker. The accounts receivable are secured by an interest in any recovery that Walker obtains from her lawsuit against the defendants. The defendants had served a nonparty subpoena on Omni's registered agent in Alabama, seeking certain documents. Omni later responded with some documents but also asserted objections to the subpoena. The defendants then filed a motion asking the circuit court to hold Omni in contempt of court for failing to comply with the subpoena. The circuit court granted this motion, leading to Omni's appeal. The Supreme Court of Alabama found that the trial court erred by holding Omni in contempt, as the subpoena was invalid. It was determined that the subpoena seeking documents located in North Carolina needed to be issued by a North Carolina court and served in accordance with North Carolina law. As the defendants had not asked a North Carolina court to direct Omni to produce the documents, they had not complied with the requirements to hold Omni in contempt. The case was reversed and remanded for further proceedings. View "In re Omni Healthcare Financial, LLC" on Justia Law

The Supreme Court of Alabama reversed a lower court's judgment regarding the denial of a preliminary plat for a proposed development within the geographical limits of the City of Montgomery. The plaintiffs, T Investments, LLC, and FHM Company, LLLP, contested the Montgomery Circuit Court's judgment that refused their petition for a writ of mandamus directing the City of Montgomery Planning Commission to conditionally approve their preliminary plat. The Supreme Court found that the City of Montgomery Planning Commission's decision to deny approval on the basis of "safety reasons" was insufficiently specific and did not comply with the requirement that valid and sufficiently clear grounds for the denial of a subdivision plat be recorded. The court held that the failure to meet this requirement resulted in the automatic approval of the preliminary plat and ordered the lower court to grant the petition for the writ of mandamus. View "T Investments, LLC v. City of Montgomery Planning Commission" on Justia Law

In this case, Eli Global, LLC, and Greg Lindberg appealed a summary judgment entered against them by the Mobile Circuit Court in Alabama. The dispute involved Eli Global's alleged failure to fulfill its obligations on a promissory note and Lindberg's alleged failure to fulfill his obligations on a guaranty of that promissory note. The promissory note and guaranty were part of an agreement to purchase a healthcare company. Eli Global and Lindberg also challenged the circuit court's award of attorney fees and expenses to the plaintiffs.The Supreme Court of Alabama affirmed the lower court's judgment finding Eli Global and Lindberg liable based on the promissory note and the guaranty, and its award of the principal amount plus interest due based on that liability. The court found that the promissory note was not a negotiable instrument under New York law, and even if it was, the plaintiffs were not required to prove who possessed the promissory note because Eli Global and Lindberg waived that argument in the lower court. In addition, the court found that one of the plaintiffs did not release his claims against Lindberg that were based on the guaranty.However, the court remanded the case back to the lower court to provide a more detailed explanation for the award of attorney fees and expenses. The court found that the lower court's order did not provide sufficient explanation on how it determined the award of attorney fees and expenses. The lower court was instructed to return its explanation to the Supreme Court within 42 days. View "Eli Global, LLC v. Cieutat" on Justia Law

In Alabama, an attorney was representing three individuals, Charles, John, and Linda Evans, in relation to a car accident. Following the accident, Charles was taken to Shelby Baptist Medical Center and discharged. He subsequently collapsed at home and died. The attorney filed a complaint asserting medical malpractice, negligence, wantonness, and recklessness on behalf of John as next friend of Charles. Eventually, an insurance company provided a settlement check and a general release relating to Charles. However, this check was signed by John and not Charles' personal representative, Bowers, who had been appointed after Charles' death. The trial court ruled that the settlement was binding on Bowers, and all claims against the defendants were dismissed.Bowers appealed, and the Supreme Court of Alabama partially reversed the trial court's decision. It ruled that the trial court erred in entering a summary judgment in favor of the malpractice defendants without a motion from them and without holding an evidentiary hearing to determine whether the attorney had express or apparent authority to settle the wrongful-death claim against Short. The court affirmed the summary judgment in favor of Short with respect to John's and Linda's individual claims. The case was remanded to the trial court for further proceedings. View "Bowers v. BBH SBMC, LLC" on Justia Law

The circuit court entered a judgment on a jury verdict in favor of plaintiff Wayne Fagerstrom, individually and as the administrator of the estate of Sylvia Fagerstrom, deceased. The defendants were Mobile Infirmary Association d/b/a Mobile Infirmary Medical Center ("MIMC") and Gulf Health Hospitals, Inc., d/b/a Thomas Hospital. Defendants argued on appeal that the trial court erred in denying their renewed motion for a judgment as a matter of law at the close of all the evidence, in which they asserted that plaintiff failed to offer sufficient evidence demonstrating that the proximate cause of Sylvia's death was sepsis resulting from an infected pressure ulcer allegedly caused by the defendants' breaches of the standard of care. After review, the Alabama Supreme Court agreed with defendants and reversed the trial court's judgment. View "Mobile Infirmary Association v. Fagerstrom" on Justia Law

This case stemmed from a cold-case murder that took place in 1981. An armed robber broke into a gas station where Russell Douglas was working, shot him several times, robbed the station, and fled. Douglas's murderer eluded capture. Then, some 30 years later, forensic scientists retested DNA evidence found at the crime scene and turned up a match to the respondent here, Nathaniel Dennis, who was serving a 600-year sentence in Virginia for an unrelated crime. In 2011, an Alabama grand jury indicted Dennis for the murder of Douglas, and he was transferred to Alabama to stand trial. In 2019, after a series of pretrial delays, Dennis was convicted of murder made capital because it was committed during a burglary. Dennis appealed, arguing that the delay between his indictment and trial violated his right to a speedy trial. The Court of Criminal Appeals agreed, holding that the over-eight-year period between 2011 and 2019 required the trial court to "presume" that the delay prejudiced Dennis's liberty interests -- even though Dennis had not put forward any affirmative evidence of prejudice and likely could not have done so because he was already serving a 600-year sentence in Virginia. The Alabama Supreme Court concluded this was error: the speedy-trial inquiry turns on how much delay has been caused by the government, not the bare amount of time between the indictment and trial. In this case, the portion of the delay caused by government negligence fell well short of the amount needed to justify a presumption of prejudice. Absent that presumption, Dennis' speedy-trial claim failed. The Court reversed the appellate court's judgment and remanded for consideration of the other arguments Dennis raised in his appeal. View "In re: Dennis v. Alabama)" on Justia Law

Plaintiff Octavi Perez appealed the grant of summary judgment in favor of Roman’s Restaurant, LLC, d/b/a Roman’s Night Club, on claims for damages under Alabama’s Dram Shop Act. In July 2019, 18-year-old Edgar Perez had been a patron of the nightclub and was killed when the vehicle he was driving left the roadway and hit a tree. An autopsy indicated Edgar was intoxicated at the time of his death. Plaintiff filed suit against Roman’s alleging it served alcoholic beverages to a minor, and Edgar’s subsequent intoxication precipitated Edgar’s death. Roman’s moved for summary judgment, arguing in relevant part that: (1) Plainitff lacked standing to sue on Edgar’s behalf because Plaintiff was neither Edgar’s parent nor stood in loco parentis; and (2) Plaintiff could not maintain an action under the Dram Shop Act because plaintiff had not been “injured in person, property or means of support.” The court record reflected Plaintiff was Edgar’s uncle, and Edgar contributed to the household expenses in the apartment he shared with Plaintiff and his father, Rigoberto Perez. The Alabama Supreme Court concluded the trial court did not err in entering summary judgment in Roman’s favor and affirmed. View "Perez v. Roman's Restaurant, L.L.C." on Justia Law

McMurray Contracting, LLC ("McMurray"), appealed a circuit court's denial of its second motion to compel arbitration of this case commenced by Kenneth Hardy and his wife Helen Hardy. The Hardys filed suit in December 2022 alleging they "retained" McMurray to perform restoration work to their house damaged in Hurricane Sally. The Hardys specifically alleged that McMurray "did not complete all restoration work in a good and workmanlike manner, and has refused to correct numerous deficiencies through [the Hardys'] property," and that McMurray "performed work and charged for materials that were never approved." The Alabama Supreme Court found McMurray's notice of appeal was not timely filed so as to invoke the Supreme Court's jurisdiction. Accordingly, it dismissed McMurray's appeal. View "McMurray Contracting, LLC v. Hardy" on Justia Law

Southern Lift Trucks, LLC ("Southern"), was an Alabama-based, heavy-equipment dealer for Hyundai Construction Equipment Americas, Inc. ("Hyundai Construction"). In May 2022, it filed suit against Hyundai Construction and its alleged parent company, Hyundai Heavy Industries Co., Ltd. (collectively, "Hyundai") asserting various claims. It also sought a preliminary injunction to prevent Hyundai from, among other things, unlawfully allowing Hyundai's dealers to sell certain equipment in Southern's designated territories or advertising that other dealers are authorized to sell that equipment in Southern's territories. Following a hearing, the circuit court entered an order granting Southern's request for a preliminary injunction. After the circuit court issued its injunction order, Southern learned that another Hyundai dealer had allegedly sold some equipment in one of Southern's territories. As a result, Southern filed a petition seeking a finding of contempt and sanctions against Hyundai. Following a hearing, the circuit court entered an order granting Southern's contempt petition. Hyundai appealed that contempt order on due process grounds. Because Hyundai was not given adequate notice of all the contempt allegations asserted against it before the hearing on those allegations (as required by Rule 70A, Ala. R. Civ. P.), the Alabama Supreme Court reversed the contempt order and remanded the case for further proceedings. View "Hyundai Construction Equipment Americas, Inc.v. Southern Lift Trucks, LLC" on Justia Law