Justia Alabama Supreme Court Opinion Summaries

In April 2017, Jerry Mohr, a Mobile County resident and an employee of CSX Transportation, Inc. ("CSX"), was injured in an on-the-job accident while working on a crew that was repairing a section of CSX railroad track near the Chef Menteur Bridge in Louisiana. Mohr sued CSX in the Mobile Circuit Court, asserting a negligence claim under the Federal Employers' Liability Act ("FELA"). The trial court ultimately entered a summary judgment in favor of CSX. Mohr appealed that judgment, arguing there were genuine issues of material fact that could only be resolved by a jury. Finding no reversible error, the Alabama Supreme Court affirmed. View "Mohr v. CSX Transportation, Inc." on Justia Law

Rita Edwards, as mother of Raven Edwards, appealed the grant of summary judgment entered in favor of Penny Pearson on the ground of State-agent immunity. In 2014, Raven, an eight-year-old student at Airport Road Elementary School, attempted to cross the Deatsville Highway to board a school bus being driven by Pearson, an employee of the Elmore County Board of Education. As she did so, Raven was struck by an automobile, and she ultimately died as a result of her injuries. Edwards sued for wrongful death, alleging Pearson negligently had instructed and/or invited Raven to cross the highway to board the school bus. Pearson filed an answer denying the allegations in the complaint and asserting various affirmative defenses, including, among others, State-agent immunity. After review, the Alabama Supreme Court determined Pearson demonstrated she was entitled to State-agent immunity, and Edwards failed to demonstrate that an exception to that immunity applied. Accordingly, the trial court properly entered a summary judgment in Pearson's favor. View "Edwards v. Pearson" on Justia Law

Russell Construction of Alabama, Inc. ("Russell"), appealed a circuit court order that vacated an arbitration award in favor of Russell and against Christopher Peat. In 2015, Russell and Peat entered into a contract pursuant to which Russell agreed to construct a residence for Peat on "a cost plus a fee basis." The documents executed in connection with the contract provided, in the event of a controversy or dispute, first for mediation and then for arbitration in accordance with the rules of the American Arbitration Association. Upon completion of the residence, a dispute arose between Russell and Peat regarding Russell's performance and the balance due Russell under the contract. In January 2018, Russell filed a formal demand for arbitration, seeking $295,408 allegedly due from Peat for the construction of the residence. Peat counterclaimed, alleging breach of fiduciary duty and breach of contract and disputing his consent to costs incurred by Russell; Peat sought specific performance and an award of $255,000 on his counterclaims. Thereafter, in May 2018, the parties reached, as a result of mediation, a settlement agreement. In essence, the settlement agreement required Russell to make certain repairs to the residence; required Peat to pay Russell $245,408 on or before June 15, 2018, at which time Russell agreed to release its recorded lien; and required Peat to deposit into escrow an additional $50,000 to ensure completion, by the end of August 2018, of a "punch-list" to the satisfaction of a third-party "Construction Consultant." The Alabama Supreme Court determined the circuit court did not err to the extent that it set aside the judgment entered pursuant to the arbitrator's Final Award. The Court affirmed the trial court's July 25, 2019 order to the extent that it vacated any judgment on the arbitrator's Final Award related to Russell's and Peat's breach of the provisions of the settlement agreement that remained in effect after the Modified Partial Final Award and the distribution of the outstanding $50,000 at issue. The Court reversed that same order to the extent it purported to vacate any judgment on the Modified Partial Final Award of $258,959.89 and remanded this case for further proceedings. View "Russell Construction of Alabama, Inc. v. Peat" on Justia Law

Deborah Shannon suffered from ongoing medical problems she claimed were the result of an automobile accident. The jury that considered the claims she asserted against the other driver rejected her claims and returned a verdict in favor of the other driver. The trial court denied Shannon's motion for a new trial and she appealed, contending the jury's verdict was not sustained by a preponderance of the evidence. Finding adequate evidence to support the verdict, the Alabama Supreme Court affirmed. View "Shannon v. Smith" on Justia Law

Pentagon Federal Credit Union ("PenFed") appealed a circuit court judgment entered in favor of Susan McMahan. McMahan and her husband purchased property in Loxley, Alabama in 2005. The purchase mortgage was provided by Wells Fargo bank, and a second mortgage was granted in favor of PenFed. In pertinent part, the PenFed mortgage stated "At no time shall this mortgage, not including sums advanced to protect the security of this mortgage, exceed $55,000.00. ... [PenFed] shall be subrogated to the rights of the holder of any previous lien, security interest, or encumbrance discharged with funds advanced by [PenFed] regardless of whether these liens, security interests or other encumbrances have been released of record." In 2014, the McMahans filed for Chapter 13 bankruptcy protection, listing both the Wells Fargo and PenFed mortgages. Both Wells Fargo and PenFed ultimately foreclosed on the mortgages. The McMahans' bankruptcy case was dismissed in late 2015. The Wells Fargo debt/lien and the PenFed debt were not discharged in the bankruptcy proceedings. PenFed filed suit against Wells Fargo to quiet title as the first lien holder to the McMahan property by virtue of the PenFed mortgage, the foreclosure deed, and the erroneous legal description in the Wells Fargo mortgage. PenFed did not notify or make McMahan a party to that lawsuit. That lawsuit was never tried to conclusion but was settled, and PenFed paid Wells Fargo $91,256.54 to satisfy the [Wells Fargo] note and in exchange for a cancellation and release of the Wells Fargo mortgage. PenFed did not acquire the right to enforce the Wells Fargo note and/or mortgage. Within one year of the foreclosure, PenFed sold the property, leaving the McMahans with a deficiency balance of $14,433.41. PenFed's calculation of the post-foreclosure-sale surplus proceeds excluded the $91,256.54 that PenFed paid to Wells Fargo to satisfy the Wells Fargo note and cancel the Wells Fargo mortgage. In 2018, McMahan sued PenFed, alleging PenFed's sale of the property to third-party purchasers created excess proceeds greater than what PenFed was entitled to received under the original note. The circuit court concluded PenFed could not exclude the surplus proceeds it paid to Wells Fargo to settle the Wells Fargo mortgage. The Alabama Supreme Court concluded the circuit court erred in characterizing the doctrine of unjust enrichment as an affirmative defense. Accordingly, PenFed did not waive the defense of unjust enrichment by failing to plead it in its responsive pleadings. Instead, PenFed raised the argument to the circuit court at trial and in its trial brief; the argument was properly before the circuit court. Judgment was reversed for further consideration of the merits of PenFed's unjust-enrichment argument. View "Pentagon Federal Credit Union v. McMahan" on Justia Law

Brad Dupree sued PeoplesSouth Bank ("PeoplesSouth"), alleging that PeoplesSouth wrongfully gave the proceeds of a $100,000 certificate of deposit to his father, not him. Jimmy Dupree was Brad's father. In 1993, Jimmy opened the CD at issue here; it was issued in both Brad's and Jimmie's names. Handwritten edits on the CD later reversed the order of the names to "Jimmy Dupree and Brad Dupree" and also replaced Brad's taxpayer ID number with Jimmy's taxpayer ID number. A handwritten note, dated December 1993 on the back of the CD stated "changed order of names to report interest under Jimmy's SS#." No evidence was offered as to who made the handwritten changes, and they were not initialed by either Jimmy or Brad. Brad was a minor at the time the CD was issued and did not contribute any money to the purchase of the CD. In November 2010, before filing this case, Brad, his mother, and his stepbrother sued Jimmy alleging Jimmy had wrongfully converted certain personal property, including the CD. In 2012, while the 2010 action was pending, Jimmy cashed the CD without notifying Brad. PeoplesSouth issued a cashier's check payable to the order of "Jimmy Dupree or Brad Dupree" for the amount of the CD less amounts set off by PeoplesSouth related to Jimmy's business loan. Jimmy cashed the check and then spent the funds. Brad learned during mediation of the 2010 action that Jimmy had cashed in the CD and was advised by the mediator to sue PeoplesSouth. The circuit court entered judgment in favor of the bank. Brad appealed, arguing he should have won on his breach-of-contract claim and awarded $100,000 in damages. The Alabama Supreme Court determined that without any rights in the CD by virtue of an inter vivos gift, Brad could not show he was damaged by PeoplesSouth's alleged nonperformance, and he was therefore unable to prevail on his breach-of-contract claim. Judgment in favor of the bank was affirmed. View "Brad Dupree v. PeoplesSouth Bank" on Justia Law

On April 27, 2015, Charles Hunter ran a red light at an intersection within the corporate limits of the City of Montgomery. At some point "within the past two years," Mike Henderson also ran a red light at another intersection within the corporate limits of the City. The automated-camera equipment at the intersections detected and photographed the plaintiffs' vehicles running the red lights. The City of Montgomery ("the City") and American Traffic Solutions, Inc. ("ATS") (collectively, "the defendants"), were granted a permissive appeal of a circuit court order denying their motion to dismiss a complaint, seeking, among other things, a declaratory judgment, filed by plaintiffs Hunter and Henderson. In their complaint, plaintiffs challenged a local municipal ordinance authorizing the use of cameras for issuing traffic citations. Plaintiffs claimed that Act No. 2009-740, Ala. Acts 2009, and sections of the Montgomery Municipal Code allowing for the ticketing of drivers who were photographed proceeding through red lights violated sections 89, 104, and 105, Ala. Const. 1901. The Alabama Supreme Court determined there was no justiciable controversy between the parties at the time the declaratory-judgment action was filed, therefore, the circuit court lacked subject-matter jurisdiction over the action, and should have dismissed it. Accordingly, the Supreme Court reversed the circuit court's order denying the motion to dismiss, and the matter was remanded for further proceedings. View "City of Montgomery v. Hunter" on Justia Law

In 2015, Elizabeth Byars was visiting a residence in Huntsville, Alabama owned by Hannelore Sims ("Hannelore") when she was attacked by a pit bull kept by Hannelore's adult grandson Cody Sims ("Cody"), who also resided at the property. The pit bull was allegedly owned by Belinda Jones (whose relationship to Cody and Hannelore was not made clear from the trial court record). Byars sued Hannelore, Cody, and Jones seeking to recover damages for her injuries. Cody was served with notice of Byars's lawsuit, but he failed to answer the complaint. The trial court entered a default judgment against Cody, awarding Byars $200,000. Byars thereafter amended her complaint to assert a claim against State Farm. Specifically, Byars alleged that State Farm had issued a homeowner's insurance policy insuring Hannelore's property and that, because a judgment had been entered against Cody, Byars could assert a claim against State Farm under the direct-action statute. State Farm moved to dismiss, arguing that the direct- action statute did not allow Byars to simply amend her complaint to add State Farm as a defendant. Rather, State Farm argued, Byars was required to initiate a separate action to pursue any claim she might have against State Farm. State Farm petitioned the Alabama Supreme Court for mandamus relief when the trial court denied its motion. In denying State Farm's petition, the Supreme Court determined State Farm failed to meet its burden or establishing that it had no adequate remedy aside from a writ of mandamus. View "Ex parte State Farm Fire & Casualty Co." on Justia Law

Marvin Gray sought mandamus relief to direct the Montgomery Circuit Court to dismiss a complaint filed against him by Ruthie Thomas. In 2017, Thomas was involved in an automobile accident with Gray in a Montgomery parking lot. In 2019, she filed suit. Eighty-nine days after she filed her original complaint, Thomas moved to amend her complaint, asserting she made multiple "scrivener's errors" resulting in the incorrect identification of one of the defendant in the original complaint. In the amendment, Thomas named Gray as defendant in place of another person involved in the accident. Gray filed a motion to dismiss the claims against him, asserting that he was not added as a defendant until after the statute of limitations had expired. Gray argued that the amended complaint did not relate back to the filing of the original complaint because, he argued, it did not satisfy the requirements of Rule 9(h), Ala. R. Civ. P., regarding fictitiously named defendants. In particular, Gray asserted that Thomas was aware of Gray's name 12 days following the accident and well before the expiration of the statute of limitations. Because the Alabama Supreme Court concluded the amended complaint related back to the filing of the original complaint under Rule 15, Ala. R. Civ. P., it denied Gray's petition. View "Ex parte Marvin Gray." on Justia Law

Jostens, Inc. ("Jostens"), John Wiggins, and Chris Urnis (collectively, "defendants") appealed a circuit court's denial of their renewed motions for a judgment as a matter of law following the entry of a judgment on a jury verdict in favor of Herff Jones, LLC ("Herff Jones"), and Brent Gilbert (collectively, "plaintiffs"). Herff Jones and Jostens were nationwide competitors that manufactured scholastic-recognition products (e.g., class rings, diplomas, caps, gowns, tassels, and graduation announcements) for high school students. The companies sold their products through independent-contractor small businesses located in the schools' territories. Gilbert's business was GradPro Recognition Products, Inc. ("GradPro"), and he worked with Herff Jones for over 30 years, both as a sales representative for his father and as the current owner of GradPro. Wiggins worked for an independent distributor of Jostens from 2000 to late 2003; Urnis worked for an independent distributor of Jostens from 2001 to 2005. In 2004 and 2006, respectively, Gilbert hired Wiggins and Urnis away from Jostens to be sales representatives for GradPro and, ostensibly, for Herff Jones. Before joining Gilbert in working on behalf of Herff Jones, Wiggins and Urnis each spent one year away from the industry to honor their noncompetition agreements. After working with GradPro for a time, Wiggins and Urnis went to another independent distributor for Jostens. Herff Jones suffered a substantial loss in business, allegedly stemming from the move. An issue at trial arose over whether plaintiffs were required to present direct, customer-by-customer evidence of the reasons each of the 47 blue-list schools that switched from Herff Jones to Jostens in order for the issue of causation to be submitted to the jury. The Alabama Supreme Court determined plaintiffs presented ample circumstantial evidence that would allow the jury to infer that defendants' wrongful conduct led to plaintiffs' loss of the school accounts at issue. Accordingly, the Supreme Court affirmed the trial court's order denying the defendants' renewed motion for a judgment as a matter of law. View "Jostens, Inc. v. Herff Jones, LLC" on Justia Law