Justia Civil Procedure Opinion Summaries

Martin Burdette appealed a circuit court judgment entered in favor of Auburn-Opelika Investments, LLC ("AOI"), regarding a dispute involving a promissory note entered into by the parties. AOI cross-appealed the trial court's judgment denying its request for relief under the Alabama Litigation Accountability Act. In 2004, Martin Burdette and Susan Burdette, a married couple, formed AOI, with each owning 50% of the company. After its formation, AOI obtained a bank loan to purchase certain commercial property. In 2012, Martin and Susan sold property that they owned in Florida for $432,855. Martin and Susan agreed to use the proceeds from that sale, along with other funds, to make a loan to AOI so that it could pay off the bank loan. In May 2012, AOI executed a promissory note ("the 2012 note"). In 2014, Martin and Susan divorced. Neither the 2012 note nor ownership of AOI was addressed in the divorce proceedings. In 2016, Martin and Susan had a disagreement regarding the management and operation of AOI, and Martin sued Susan. In June 2017, as part of those proceedings, Martin and Susan entered into a mediated settlement agreement wherein Susan agreed to pay Martin in exchange for sole ownership of AOI ("the 2017 agreement"). That note was secured by a mortgage on the property owned by AOI. Susan later sold the property, and she paid the balance due on the note to Martin in full. In August 2019, Martin sued AOI, asserting claims of breach of contract and unjust enrichment, alleging AOI had failed to pay Martin the amount owed under the 2012 note. AOI argued Martin commenced the action against it without substantial justification because Martin was "fully aware that he has been paid in full for his interest in the 2012 Promissory Note and despite that fact, [he] initiated the groundless underlying lawsuit." The Alabama Supreme Court found that although the trial court found in favor of AOI on the substantive claims Martin asserted in his complaint, the trial court could have determined the issues of fact surrounding Martin's claim were reasonably in conflict. Accordingly, the trial court's factual determination that Martin's action was not frivolous or groundless in fact was supported by the evidence. Moreover, the Supreme Court's review of the record, lead it to conclude that Martin's claims against AOI were not groundless in law. Accordingly, the trial court's decision to not award attorney fees and costs to AOI under the ALAA was affirmed. View "Auburn-Opelika Investments, LLC v. Burdette" on Justia Law

Nicholas Jay appealed the grant of summary judgment entered in favor of United Services Automobile Association ("USAA") on his claim against USAA seeking uninsured-motorist ("UM") benefits. Nicholas was injured in an automobile accident when riding as a passenger in Ryen Gorman's automobile. Gorman did not have automobile insurance. Nicholas received $50,000 in UM benefits through a policy he had with Nationwide Insurance Company. Thereafter, Nicholas commenced an action against USAA, seeking UM benefits pursuant to a USAA policy owned by his father-in-law, George Brewer, and under which Nicholas's wife, Michelle Jay, had automobile-insurance coverage. Because Nicholas was not a "covered person" under the USAA policy, the Alabama Supreme Court affirmed the judgment. View "Jay v. United Services Automobile Association" on Justia Law

Raymon Means, Jr., an employee of Sanders Lead Company, Inc., was burned in a workplace accident when molten lead splashed out of a kettle following an explosion. In an effort to recover outside Alabama's Workers' Compensation Act, Means sued, among others, several of his co- employees and an independent contractor, alleging that they had engaged in willful conduct that caused his injuries. While the Act generally barred an employee injured in a workplace accident from recovering damages from a co-employee who allegedly caused the accident, section 25-5-11 provided an exception when the accident was caused by the co-employee's willful conduct. Means sued the Sanders Lead defendants claiming that the exception applied to his case. The trial court entered a summary judgment against him, holding that his claims were all either barred by the statute of limitations or not supported by substantial evidence of willful conduct. Finding no reversible error in that judgment, the Alabama Supreme Court affirmed. View "Means v. Glover, et al." on Justia Law

Shamblin Hamilton appealed a circuit court judgment concluding he had no interest in a Birmingham property, and ejected him from the property. In 1992, the property was conveyed to Shamblin and Carol Hamilton by general warranty deed. The Hamiltons owned the property in fee simple subject to a mortgage to Compass Bank recorded in 2003. In 2004, Shambin and Carol divorced, and pursuant to that divorce judgment, Shamblin was awarded sole ownership of the property. In 2009, the divorce judgment was modified by an agreement of the parties, and a court order adopting that agreement declared that Shamblin had assumed sole responsibility of a home-equity line of credit that Shamblin and Carol had jointly executed with Compass Bank. In his filings in the circuit court in this case, Shamblin asserted that he was still making payments on the home-equity line of credit as the litigation ensued. The Hamiltons failed to pay the ad valorem real-property taxes on the property, and in 2014, the State sold the property at auction to Mercury Funding, LLC ("Mercury"). Mercury conveyed its interested to Guardian Tax AL, LLC (“Guardian”) by quitclaim deed. In 2018, Guardian filed a complaint for ejectment and to quiet title to the property against the Hamiltons and Compass Bank. Shamblin denied not paying the ad valorem property taxes on the property, and he asserted that he had no notice of delinquency even though he had retained physical ownership of the property since 1992. Shamblin asserted a counterclaim for judicial redemption of the property, arguing he, not Carol as part title-holder, had a right to redeem. The Alabama Supreme Court determined the trial court erred in holding Carol had a right to redeem, and reversed. View "Hamilton v. Guardian Tax AL, LLC, et al." on Justia Law

Abbott Laboratories and Abbott Laboratories, Inc. (collectively, "Abbott"), petitioned the Alabama Supreme Court for a writ of mandamus to direct the Mobile Circuit Court to dismiss all claims asserted by the Mobile County Board of Health and the Family Oriented Primary Health Care Clinic (collectively, "Mobile Health") against Abbott on the basis that those claims are barred by the rule of repose or by the applicable statute of limitations. Mobile Health alleged that Abbott had participated in the marketing of a specific prescription drug, OxyContin. Mobile Health alleged that this marketing campaign "precipitated" an "opioid crisis" in the United States, and specifically in Alabama, because it caused an astronomical increase in the use of opioids by patients who quickly became dependent upon the drugs. Mobile Health asserted that it brought this action because of the burdens it had to bear as a result of the "opioid epidemic." The Alabama Supreme Court concluded the applicable statutes of limitations barred Mobile Health's claims against Abbott. Therefore, the Court granted Abbott's petition for a writ of mandamus, and directed the circuit court to enter an order dismissing Mobile Health's claims against Abbott. View "Ex parte Abbott Laboratories and Abbott Laboratories, Inc." on Justia Law

Scott and Janet Lopas filed suit against, among others, Performance Builders, LLC, Chris White, Shana Tyler Clark, and DSKAT Holdings, LLC, d/b/a A-Pro Home Inspection Services Birmingham (collectively, "the movants") asserting various causes of actions based on the inspection, appraisal, and sale of a piece of real property purchased by the Lopases. The movants moved to compel arbitration of the Lopases' claims, which the circuit court denied. The movants appealed the circuit court's order. After review, the Alabama Supreme Court concluded the movants met their burden of establishing the existence of an agreement containing an arbitration provision between the parties, and that that agreement involved a transaction affecting interstate commerce. Furthermore, the arbitration provision dictated that the issue of enforceability raised by the Lopases had to be submitted to the arbitrator for determination. Therefore, the circuit court's order denying the movants' motion to compel arbitration was reversed. View "Performance Builders, LLC, et al. v. Lopas" on Justia Law

The State of Alabama appealed a circuit court order that dismissed the State's claims seeking injunctive and declaratory relief "to abate a public nuisance of unlawful gambling," pursuant to section 6-5-120, Ala. Code 1975, against some, but not all, of the defendants. The circuit court certified its order as final pursuant to Rule 54(b), Ala. R. Civ. P. However, we determine that the order was not appropriate for Rule 54(b) certification; therefore, the Alabama Supreme Court dismissed the appeal. View "Alabama v. Epic Tech, Inc., et al." on Justia Law

Plaintiff Jeremy K. Hon appealed the grant of summary judgment in favor of defendants Kevin Duane Hon, individually and as trustee of the Jeremy K. Hon Irrevocable Family Trust ("the Trust"), Emily Louise Hon Castellanos, and Jason Jeremy Hon. Jeremy K. Hon and Lynda L.B. Hon were married and had three children -- Kevin Duane Hon, Emily Louise Hon Castellanos, and Jason Jeremy Hon. In 2012, plaintiff signed an agreement creating the Trust. Over time, plaintiff transferred assets to the Trust, including his and Lynda's principal Alabama residence; a condominium in New York; his 50% interest in L&L Enterprises LLC; and over $1,000,000 in cash and securities. Lynda died in 2017, and Kevin succeeded her as the sole trustee of the Trust. In 2018, plaintiff filed a complaint against Kevin, individually and as trustee of the Trust, Emily, and Jason seeking rescission of the Trust agreement. Plaintiff alleged he had signed the Trust agreement based on "his mistaken understanding of the effects thereof"; that he had "transferred assets to the Trust based on his mistaken understanding of the effects of the Trust Agreement"; and that, "due to mistake, the Trust Agreement does not accomplish his intent." He also alleged that he had paid amounts on behalf of the Trust that "the Trust, in equity and good conscience, should be required to repay" to him and that the Trust "has received and retained an improper benefit ... and has been unjustly enriched." The Alabama Supreme Court affirmed, finding plaintiff did not present any evidence to establish that Lynda had engaged in any fraudulent or inequitable conduct that resulted in his alleged misunderstanding, and he did not present any evidence indicating that Lynda had been aware of his alleged misunderstanding. Also, the plaintiff did not present substantial evidence to establish that the mistake was not mixed with his own negligence. “Rather, by his own testimony, the plaintiff admitted that he did not read the Trust agreement before he signed it; that he might have skimmed the Trust agreement; that he did not ask Burwell any questions about the provisions of the Trust; and that he instead relied on comments made by his business partner about the effects of his own separate trust.” View "Hon v. The Jeremy K. Hon Irrevocable Family Trust, et al." on Justia Law

TitleMax of Georgia, Inc., and its parent company, TMX Finance LLC ("TMX"), petitioned the Alabama Supreme Court for a writ of mandamus to direct the Talladega Circuit Court to vacate its order denying their motion to dismiss them as parties to the underlying action commenced against them and others by Phallon Billingsley and to enter an order dismissing them from the action based on the trial court's lack of personal jurisdiction over them. This case started over the repossession of a 2005 Range Rover. In December 2014, the individual who owned the vehicle at that time allegedly entered into a "pawn ticket" agreement with TitleMax of Georgia pursuant to which the owner borrowed money from TitleMax of Georgia and provided TitleMax of Georgia a security interest in the vehicle. In 2016, Billingsley purchased the vehicle from a dealer in Georgia, with financing from Coosa Pines Federal Credit Union ("Coosa Credit"), and received a certificate of good title. In 2014, after a "perceived" default on the "pawn ticket" agreement by the vehicle owner, TitleMax of Georgia authorized a vehicle-repossession company to take possession of the vehicle when it was located in Virginia in 2019. TitleMax of Georgia asked Insurance Auto Auctions Corp. ("IAA") to sell the vehicle; when the vehicle ultimately reached Billingsley, it was damages and inoperable. It was unclear when the damage to the vehicle occurred. Billingsley sued all entities involved in the sale and delivery of the repossessed vehicle; TitleMax of Georgia was added as a party in an amended complaint. The Alabama Supreme Court granted TitleMax of Georgia’s petition, finding there was no evidence to support a finding that an agency relationship existed between either TitleMax of Georgia or TMX and IAA or Attention to Detail (the transport company). View "Ex parte TitleMax of Georgia, Inc., and TMX Finance LLC." on Justia Law

This case involved a wrongful-death claim filed by Michael Rondini ("Rondini"), as personal representative of the estate of Megan Rondini ("Megan"), to recover damages for the death of his daughter Megan, who committed suicide almost eight months after she was allegedly sexually assaulted while enrolled as a student at the University of Alabama. Rondini sued Megan's alleged assailant, Terry Bunn, Jr., in the United States District Court for the Northern District of Alabama, Southern Division, claiming that Bunn's alleged sexual assault and false imprisonment of Megan proximately caused her death. After Bunn moved for summary judgment, the federal court certified a question to the Alabama Supreme Court on whether Rondini's wrongful-death claim was viable under Alabama law. Both Rondini and Bunn framed their arguments around the Alabama Supreme Court's decision in Gilmore v. Shell Oil Co., 613 So. 2d 1272 (Ala. 1993). The Alabama Supreme Court responded by stating suicide would not, as a matter of law, absolve an alleged assailant of liability. “The statement in Gilmore that suicide is unforeseeable as a matter of law, was made in the context of a negligence case and does not apply in an intentional-tort case involving an allegation of sexual assault. … traditional negligence concepts like foreseeability and proximate cause, which form the backbone of the negligence analysis in Gilmore, have a more limited application in intentional-tort cases.” The Court held that a wrongful-death action could be pursued against a defendant when there is substantial evidence both that defendant sexually assaulted the decedent and that the assault was a cause in fact of the decedent's later suicide. “In such cases, it is unnecessary to analyze whether the decedent's suicide was a foreseeable consequence of the sexual assault; liability may attach without regard to whether the defendant intended or could have reasonably foreseen that result.” View "Rondini v. Bunn" on Justia Law