Justia Government & Administrative Law Opinion Summaries

Jim Walter Resources, Inc. (JWR) sought a petition for a writ of mandamus to direct the Tuscaloosa County Probate Court to record certain filings without the payment of a recording tax. Walter Energy, JWR's parent company, acquired Western Coal Corporation of Canada. As part of the acquisition, Walter entered into a credit agreement with Morgan Stanley, which required Walter's subsidiaries to execute contingent guaranties of Walter's financing debt in the event Walter defaulted. JWR secured its guaranty of Walter Energy's financing debt by executing mortgages on its real and leasehold properties. Also as part of the credit agreement, JWR was required to record the mortgages in the probate offices in the counties in which the properties were located. When JWR sought to record the mortgages and related UCC filings in Tuscaloosa, the Tuscaloosa County Probate Court refused to record the documents unless JWR paid the recordation tax. The probate judge maintained that there was no statutory requirement that under Alabama law that the debt being secured be the mortgagor's debt, and as such, because JWR was recording its financing statements for Walter's debt, JWR was still responsible for paying the tax. Upon review, the Supreme Court found that JWR's liability was contingent on Walter's default, and JWR's contingent guaranty did not constitute an unqualified promise to pay Walter's indebtedness under the credit agreement. The Court found the contingent guaranty was not within the scope of the applicable statute, and accordingly, the Court granted JWR's petition and issued the writ.

Retired district judge M. John Steensland, Jr. appealed a judgment of the Alabama Court of the Judiciary (COJ) that publicly censured him for misconduct that preceeded his retirement. In 2008, Judge Steensland had begun to serve a six-year term when the Judicial Inquiry Commission (JIC) began an investigation based on complaints of his courtroom conduct and demeanor filed by several parties that had come before the judge in prior cases. In 2010 while the JIC's investigation was ongoing, the Judge voluntarily retired from office. On appeal, Judge Steensland did not challenge the sufficiency of the evidence or the nature of the discipline imposed. He merely renewed the grounds he originally asserted in his motion to dismiss the complaint: the absence of jurisdiction and the application of the doctrine of condonation. Upon review, the Supreme Court concluded the COJ did not err in entering its judgment against Judge Steensland, and accordingly affirmed that decision.

In May 2008, seven-year-old Jordan Alexander Robertson was placed in foster care at the home of Verlin Spurgeon and Carol Spurgeon. In June 2008, Jordan drowned in the Spurgeons' swimming pool. James Brakefield, as administrator of Jordan's estate, sued the Spurgeons, among others, in circuit court alleging that they had negligently and/or wantonly caused Jordan's death. The Spurgeons moved the circuit court for a summary judgment, alleging, among other things, that the claims were barred by the doctrines of parental, State, and State-agent immunity. The circuit court denied the motion. The Spurgeons petitioned the Supreme Court for a writ of mandamus to direct the circuit court to dismiss the claims against them. Upon review, the Supreme Court granted their petition in part and issued the writ to direct the circuit court to dismiss the negligence claims against the Spurgeons. In all other respects, the Court denied the petition.

The Boaz City Board of Education ("the Board") and its members Alan Perry, Fran Milwee, Roger Adams, Alan Davis, and Tony G. King (collectively "the Board members") petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate its order that denied their motion to dismiss claims filed against them by Lisa and Donnie Tarvin and to enter an order dismissing the claims with prejudice. According to the complaint, Leland Dishman, the superintendent for the Board, struck kindergarden teacher Lisa Tarvin with a paddle. Dishman read a statement at a press conference, denying that the incident occurred. The Tarvins sued the Board, the Board members in their official capacities, and Dishman in his individual capacity, alleging claims of assault and/or battery, defamation, libel, and slander and sought monetary damages. The Board and the Board members moved to dismiss the claims against them, arguing that they were immune from suit under the State immunity doctrine. Upon review, the Supreme Court found that the Board and its members demonstrated that under the Alabama Constitution, they had immunity from the claims asserted against them, and "a clear legal right to have the claims⦠dismissed with prejudice." The Court granted the petition and issued the writ.

Ashley Rich, district attorney of Mobile County, and the State filed separate petitions for a writ of mandamus directed to the Montgomery Circuit Court in an inverse-condemnation action filed by Jesse Griffin and others. Griffin filed the Montgomery action seeking compensation for property, namely electronic "bingo" machines and related equipment and money, previously confiscated by the State from Griffin's facility in Mobile County. Rich and the State each argued that the Montgomery Circuit Court was without subject-matter jurisdiction to interfere with the executive branch's enforcement of the criminal law, and without jurisdiction based on principles of sovereign immunity. In 2010, Griffin opened and operated a facility in containing 25 electronic devices Griffin promoted as lawful charitable bingo machines. That same day, members of the Governor's Task Force on Illegal Gambling seized the 25 machines, as well as other items, from the facility. The machines were transported to a state warehouse in Montgomery County to be stored temporarily. Upon review, the Supreme Court consolidated the petitions for the purpose of writing one Opinion, and granted them, issuing the writs. The Court concluded that neither the fact that the electronic-bingo machines were brought to Montgomery County to be temporarily stored nor the fact that Griffin filed the Montgomery action before the Mobile County district attorney filed the Mobile action erased the fact that the events in this case arose from a criminal action initiated by the investigation of the facility and the resulting seizure of the machines and other evidence, "[t]hus, Griffin's reliance on the duel-litigation statute and the compulsory-counterclaim rule is misplaced." The Court issued the writs and directed the circuit court to vacate its order in favor of Griffin.

Dallas County Sheriff Harris Huffman, Jr., and Deputy Sheriff Ernest Larry Donaldson petitioned the Supreme Court for a writ of mandamus to direct the circuit court to vacate its order denying their motion to dismiss a complaint filed by Plaintiff Marie Jemison alleging multiple claims against them in their individual capacities. Plaintiff alleged that on August 23, 2008, she was traveling in Selma while, at the same time, Deputy Donaldson "was operating a motor vehicle in the line and scope of his agency and/or employment with the Dallas County Sheriff's Department." According to Plaintiff, as she entered the intersection of Lauderdale Avenue and Dallas Avenue, she was struck by Deputy Donaldson's vehicle and, as a result, sustained serious personal injuries. Jemison sued Deputy Donaldson, Donaldson's supervisor Sheriff Huffman, the Dallas County Sheriff's Department, and the Dallas County Commission. Among other claims, Plaintiff alleged negligence and wantonness against Deputy Donaldson for the manner in which he operated his vehicle, negligent entrustment and negligent hiring, training, supervision, and retention against Sheriff Huffman, and vicarious liability against the Dallas County Sheriff's Department and the Dallas County Commission. The defendants filed a motion to dismiss all claims, asserting a lack of subject-matter jurisdiction and a failure to state a claim upon which relief could be granted. Upon review, the Supreme Court found that under the circumstances of this case, Deputy Donaldson was acting in the line and scope of his employment and was entitled to State immunity. Therefore, the trial court erred in failing to grant the motion to dismiss all claims against Deputy Donaldson and Sheriff Huffman.

Defendant Alabama Power Company filed a petition for the writ of mandamus to ask the Supreme Court to direct the trial court to dismiss Plaintiff Capitol Container, Inc.'s claims against it for lack of subject-matter jurisdiction. On appeal, Alabama Power argued the Alabama Public Service Commission (APSC) had exclusive jurisdiction over those claims Capitol filed, and Capitol failed to exhaust its administrative remedies before filing its action. Upon review of the record below, the Supreme Court found that Capitol indeed failed to exhaust its administrative remedies before filing its suit against the power company. The Court issued the writ.

The Industrial Development Board of the City of Montgomery (IDB) appealed a circuit court's interlocutory order that denied its motion for summary judgment as to a breach-of-contract claim asserted against it by George and Thomas Russell as co-executors and co-trustees of the wills and testamentary trusts of Earnest and Myrtis Russell, Price and Mary McLemore and several others. In 2001, various officials of the State of Alabama, the City of Montgomery, the Montgomery County Commission, Montgomery Chamber of Commerce and the local water works board began making preparations to secure options to purchase property in the Montgomery area in an attempt to persuade Hyundai Motor Company to build an automobile plant in the area. All the trusts owned acres of land in the targeted area. The IDB signed separate options with the Russells, the McLemores and other trusts to purchase the respective properties. Hyundai's plans for its manufacturing plant changed, and subsequently, not all of the options were exercised. The Russells and the McLemores each filed breach-of-contract actions against the IDB and Hyundai alleging that neither adhered to the terms of their respective options. Upon review, the Supreme Court found that the trial court did not err in denying the IDB's motion for summary judgment. The Court affirmed the lower court's decision.

Two appeals between MPQ, Inc. (d/b/a Freedom Enterprises) and Birmingham Realty Company were consolidated by the Supreme Court for the purposes of this opinion. The parties entered into a commercial lease agreement. Birmingham Realty filed suit against MPQ for unpaid rent in circuit court. MPQ filed a counterclaim. Birmingham Realty filed a separate unlawful-detainer action against MPQ in district court. The district court dismissed the detainer action, reasoning that the simultaneous actions in the district and circuit courts violated Alabama's abatement statute. Birmingham Realty appealed the district court's dismissal to the circuit court and filed a motion to dismiss MPQ's counterclaim. The circuit court conducted a hearing on all pending motions. It then entered an order affirming the district court's dismissal of the unlawful-detainer action and dismissed MPQ's counterclaims in the rent action. The court suggested that Birmingham Realty move to dismiss the rent action without prejudice so it could refile its unlawful-detainer action in the district court and then later refile an action in circuit court to seek the unpaid rent. Birmingham Realty took the court's advice and filed the suggested motions. MPQ filed a motion to alter, amend or vacate the court's decision in its counterclaim. The circuit court did not rule on either motion. The parties appealed to the Supreme Court. Upon review, the Supreme Court found Birmingham Realty's appeal from the district court to the circuit court was not timely, and as such, the court did not have jurisdiction over the appeal. The Supreme Court dismissed the appeal and cross-appeal with regard to the unlawful-detainer action and remanded the remaining issues for further proceedings.

Tellabs Operations, Inc. appealed an administrative agency's decision in its taxpayer's refund action from the circuit court. Tellabs unsuccessfully petitioned for a refund of allegedly overpaid sales taxes to the City of Bessemer. The case was originally filed in Montgomery Circuit Court. Bessemer filed a motion to dismiss, or in the alternative, to change venue to Jefferson Circuit Court. Without holding a hearing on the motion, the circuit court transferred the appeal to Jefferson Circuit Court. In its motion for reconsideration, Tellabs argued the Montgomery Court erred in transferring the appeal. The court responded that it had lost jurisdiction, and Tellabs' only remedy was to petition the Supreme Court. Upon review of the circuit court records, the Supreme Court concluded that the Montgomery Circuit Court erred in transferring the appeal to the Jefferson Court. The Supreme Court vacated the transfer order and remanded the case for further proceedings in Montgomery Circuit Court.