Justia Alabama Supreme Court Opinion Summaries

The Talladega County Commission ("the Commission") appealed a trial court's dismissal of its mandamus petition filed against the Commission by the City of Lincoln ("the City"), that left in place a prior order interpreting provisions of a local act. At issue was a dispute between the Commission and the City regarding the interpretation of Act No. 91-533, Ala. Acts 1991 ("the Act"), as amended by Act No. 2000-758, Ala. Acts 2000 ("the amended Act"). The Act, which local to and operative only in Talladega County, levied special county "privilege license and excise taxes" in parts of Talladega County located outside the corporate limits of cities within the county. Initially, the Act required the revenues from the taxes to be used for the retirement of the County's indebtedness. The amended Act, enacted after the retirement of the County's indebtedness, created the "Talladega County Special Tax Fund" ("the fund") into which all revenues from the taxes, less the costs of collection, were to be deposited. The City claimed in its petition that the Commission did not have any discretion to withhold the disbursement of moneys contained in the fund once the delegation had authorized the disbursement. The City asked the trial court to order the Commission to disburse $494,639 collected to the City as had been recommended by the TCEDA and approved by the delegation. In order to resolve the Commission's declaratory-judgment counterclaim, the trial court was required to determine whether the Commission had authority under the amended Act to "veto, overrule, or otherwise deny" the delegation's approval of the TCEDA's recommendation. At the time the trial court entered the October 30 order on the Commission's declaratory- judgment counterclaim, the Alabama Supreme Court determined there existed a clear justiciable controversy between the City and the Commission concerning the Commission's duties and authority under the amended Act. Once State representatives withdrew their approval, a necessary precursor to the disbursement of moneys from the fund under the amended Act, the City was no longer entitled to the funds and there ceased to be a controversy between the City and the Commission. The Supreme Court therefore determined the action was moot and dismissed the appeal. View "Talladega County Commission v. State of Alabama ex rel. City of Lincoln" on Justia Law

Dale Forbes, as administrator ad litem for the estate of Gay Nell Mize, appealed the grant of summary judgment entered in favor of Platinum Mortgage, Inc. ("Platinum"), and PennyMac Loan Services, LLC ("PennyMac"). Gay Nell signed, and the record contained, a notarized power of attorney. The limited power of attorney authorized Gay Nell's husband, Charles Mize, to execute, on Gay Nell's behalf, certain documents in a transaction refinancing the Mizes' house. On the authority of the power of attorney, Charles borrowed $175,000 from Platinum and gave Platinum a mortgage on the Mizes' residence, executing both a loan agreement and a mortgage. Platinum then assigned the loan and mortgage to PennyMac. In 2015, Gay Nell was declared incompetent and a conservator was appointed for her. The conservator sued multiple defendants, including Platinum and PennyMac, alleging that the power of attorney executed by Gay Nell was invalid, that Gay Nell was not bound by the loan agreement and the mortgage executed by Charles, and that the Mizes' house was not encumbered by the mortgage. Platinum and PennyMac filed separate motions for a summary judgment. After review, the Alabama Supreme Court concluded the estate did not provide any persuasive argument that would render the loan agreement and the mortgage anything other than valid and binding on Gay Nell. "The trial court in the present case determined, and rightly so, that Platinum and PennyMac properly relied on the power of attorney, because they had no actual knowledge that it was anything other than a valid instrument authorizing Charles to execute the loan agreement and the mortgage as Gay Nell's duly authorized agent." Accordingly, the Court affirmed summary judgment. View "Forbes v. Platinum Mortgage, Inc." on Justia Law

Petitioners George Cowgill and Elise Yarbrough, petitioned the Alabama Supreme Court for a writ of mandamus to direct the circuit court to grant their motion for partial summary judgment on the ground that plaintiff's substitution of them for fictitiously named defendants was made after the expiration of the applicable two-year statute of limitations. Petitioners owned Black Mark 2, LLC, a Birmingham bar. On New Year's Eve 2012, plaintiff Paul Thomas was with his friend Brian Pallante. Pallante and another patron, Dalton Teal, got into an altercation. Staff from Black Market removed Teal. An unidentified female patron returned a handgun Teal had dropped inside Black Market. Teal waited outside for Thomas, Pallante and another to leave. Within five minutes, a second altercation ensued, ending with shots fired, and leaving Thomas injured. The Supreme Court that although Thomas disputed knowledge of petitioners' precise duties, it was undisputed he possessed sufficient information from which he should have known or was at least placed on notice of a factual basis for his eventual claims against them. "Because [he] knew of [petitioners'] involvement in [training and supervision of Black Market employees], it was incumbent upon [Thomas], before the statute of limitations on [his] claim expired, to investigate and evaluate the claim to determine who was responsible for [his injuries]." Therefore, the Court concluded the undisputed evidence demonstrated Thomas failed to exercise due diligence in identifying petitioners as proper party defendants; the trial court thus erred in denying petitioners' motion for partial summary judgment. The Court issued the writ and remanded for further proceedings. View "Ex parte Cowgill" on Justia Law

Plaintiff Warner Wiggins appeals a circuit court's order compelling him to arbitrate his claims against Warren Averett, LLC. Warren Averett was an accounting firm. Eastern Shore Children's Clinic, P.C. ("Eastern Shore"), a pediatric medical practice, was a client of Warren Averett. In September 2010, while Wiggins, who was a medical doctor, was a shareholder and employee of Eastern Shore, Warren Averett and Eastern Shore entered an agreement pursuant to which Warren Averett was to provide accounting services to Eastern Shore ("the contract"). The contract contained an arbitration clause. Thereafter, Wiggins and Warren Averett became involved in a billing dispute related to the preparation of Wiggins's personal income-tax returns. In 2017, Wiggins filed a single-count complaint alleging "accounting malpractice" against Warren Averett. Warren Averett filed an answer to Wiggins's complaint, asserting, among other things, that Wiggins's claims were based on the contract and were thus subject to the arbitration clause. A majority of the Alabama Supreme Court concluded the determination of whether Wiggins' claims were covered under the terms of the arbitration clause was delegated to an arbitrator to decide. Therefore, it affirmed the trial court's order. View "Warner W. Wiggins v. Warren Averett, LLC" on Justia Law

State Farm Fire and Casualty Company ("State Farm"), a defendant below, petitioned the Alabama Supreme Court for a writ of mandamus to challenge Clarke Circuit Court's failure to dismiss the underlying action or to enter a judgment in its favor on the claims of the plaintiffs, Samuel Boykin, Lucretia Boykin, Reginald Berry, and Ida Berry (collectively referred to as "the respondents"). Specifically, State Farm contended respondents' claims were barred by section 27-23-2, Ala. Code 1975 ("the direct-action statute). In denying the writ, the Supreme Court found it “never recognized an exception to the general rule that would permit interlocutory review of a trial court's denial of a motion to dismiss or for a judgment on the pleadings for cases that turn on whether the plaintiff has stated a cognizable claim under the applicable law. We will not make an exception here. Accordingly, the petition is denied.” View "Ex parte State Farm Fire & Casualty Company." on Justia Law

Shannon Robbins, the former county engineer of Cleburne County, Alabama, sued the Cleburne County Commission ("the Commission") alleging breach of contract after the Commission denied the validity of a renewal option in his employment agreement. To decide his appeal, the Alabama Supreme Court had to determine whether the Commission was authorized by the legislature to enter into that employment agreement. Because the Supreme Court determined Robbins could not prevail regardless of which potentially applicable statute gave the Commission authority to contract for the employment of a county engineer, it affirmed the trial court's dismissal of his case. View "Robbins v. Cleburne County Commission" on Justia Law

Allstate Property and Casualty Insurance Company ("Allstate") petitioned the Alabama Supreme Court for a writ of mandamus to direct the Macon Circuit Court to grant Allstate’s request for a jury trial in a pending action there. In August 2013, a vehicle occupied by Danielle Carter was involved in an accident with a vehicle being driven by Alvin Lee Walker. Carter sued Walker, alleging negligence and wantonness in the operation of his vehicle. In the same action, Carter also sued her underinsured-motorist carrier, Allstate, seeking underinsured-motorist benefits. In her complaint, Carter demanded a jury trial. Likewise, Allstate demanded a jury in its answer to the complaint. Pursuant to Lowe v. Nationwide Insurance Co., 521 So. 2d 1309 (Ala. 1988), Allstate opted out of active participation in the litigation. Opting out under Lowe keeps the jury in a vehicle-accident action from learning that insurance coverage might be available to pay damages. As the trial date approached, Carter and Walker decided that they would rather try the case without a jury. Allstate, however, demanded a jury trial. The trial court denied Allstate's demand and set the case for a nonjury trial. The Supreme Court determined that Lowe demonstrated there was a strong policy in Alabama against tainting a jury with knowledge of the possible availability of insurance to cover a party's damages. “There is also a strong policy of preserving the right to have a jury determine the extent of a party's liability.” Accordingly, the Court held Allstate could insist that a jury determine liability and damages and, at the same time, keep its involvement from the jury pursuant to the opt-out procedure adopted in Lowe. View "Ex parte Allstate Property & Casualty Insurance Company." on Justia Law

Rose McClurg sued Birmingham Realty Company ("BRC") based on injuries she sustained when she fell in the parking lot of a shopping center owned by BRC. The circuit court entered a summary judgment in favor of BRC, and McClurg appealed. Because there was a genuine issue of material fact as to whether the hole in which McClurg stepped was an open and obvious danger, the Alabama Supreme Court reversed summary judgement. View "McClurg v. Birmingham Realty Company" on Justia Law

Dow AgroSciences LLC ("DAS"), a counterclaim defendant, petitioned the Alabama Supreme Court for a writ of mandamus challenging a circuit court’s refusal to dismiss a fraud claim filed against it by defendant Robert Ward in an action filed by Andalusia Farmers Cooperative ("AFC") against Ward. Specifically, DAS contended that Ward's fraud claim was plainly barred by the applicable statute of limitations. The Supreme Court agreed and granted the petition. View "Ex parte Dow AgroSciences LLC." on Justia Law

BBH BMC, LLC, d/b/a Brookwood Baptist Medical Center ("Brookwood") petitioned the Alabama Supreme Court for a writ of mandamus to direct the Jefferson Circuit Court to vacate its order compelling Brookwood to respond to certain interrogatories and requests for production. Donna Gaston arrived at Brookwood Baptist Medical Center ("the medical center") to participate in a voluntary psychiatric outpatient-treatment program. At approximately 8:40 a.m., Donna registered for the 9:00 a.m. outpatient group-therapy session in which she had enrolled. She then left the therapy area, accessed a parking deck on the premises of the medical center, and leaped to her death. Charles Gaston, Donna's husband, filed a wrongful-death action seeking to hold Brookwood liable for Donna's suicide. Specifically, he alleged the conduct of Brookwood's nurses and security fell below the applicable standard of care. The Supreme Court determined that although Gaston could discover information concerning those acts or omissions by those employees whose conduct was detailed specifically and factually described in the complaint as rendering Brookwood liable for Donna's death, Gaston was not entitled to discovery regarding acts or omissions by Brookwood related to other incidents. Therefore, because the requested discovery sought evidence of other acts or omissions of Brookwood and its employees beyond the alleged standard of care owed to Donna, Brookwood had shown a clear legal right to have the trial court's discovery order vacated. View "Ex parte BBH BMC, LLC, d/b/a Brookwood Baptist Medical Center." on Justia Law