Justia Real Estate & Property Law Opinion Summaries

Sara Pearl Fahrmann filed a complaint against the City of Orange Beach and D.R. Horton, Inc., alleging that the City failed to ensure that Horton's construction of the Cypress Village subdivision complied with the City's zoning ordinance and the approved Planned Unit Development (PUD). Fahrmann claimed that this failure led to inadequate parking, which obstructed emergency services and delayed treatment for her husband, resulting in his death. She asserted wrongful-death claims based on wantonness and negligence.The Baldwin Circuit Court denied the City's motion for summary judgment, which argued that the City was entitled to substantive immunity from Fahrmann's claims. The City then petitioned the Supreme Court of Alabama for a writ of mandamus to direct the circuit court to grant its motion for summary judgment.The Supreme Court of Alabama reviewed the case and held that the City was immune from Fahrmann's wrongful-death claim alleging wantonness under § 11-47-190, Ala. Code 1975, which limits municipal liability to injuries caused by neglect, carelessness, or unskillfulness, and does not include wanton conduct. The Court also held that the City was entitled to substantive immunity from the negligence claim, as the City's failure to enforce its zoning ordinance did not create a legal duty to individual plaintiffs. The Court granted the City's petition and issued a writ of mandamus directing the circuit court to grant summary judgment in favor of the City. View "Ex parte City of Orange Beach" on Justia Law

Several residents of the City of Muscle Shoals filed a lawsuit against the City, seeking damages for negligence and trespass due to flooding caused by the City's management of a stormwater-drainage pond in their neighborhood. The plaintiffs claimed that heavy rainfall in February 2019 overwhelmed the pond, leading to the flooding of their homes. They argued that the City failed to plan adequately for such events and did not maintain the pond properly.The plaintiffs initially filed their complaint in the Colbert Circuit Court in March 2020, seeking damages for negligence, wantonness, and trespass. They later amended their complaint to drop the wantonness claim and added a request for injunctive relief, which the trial court denied. The City moved for summary judgment, arguing that the claims were barred by § 11-47-190, Ala. Code 1975, and that there was no substantial evidence to support the trespass claim. The trial court denied the City's motion, leading the City to file a petition for a writ of mandamus with the Supreme Court of Alabama.The Supreme Court of Alabama reviewed the case and determined that the City was immune from the plaintiffs' claims under § 11-47-190, Ala. Code 1975. The Court found that the City's decision to plan for 25-year rainfall events was within common municipal practice and did not constitute neglect, carelessness, or unskillfulness. Additionally, the Court concluded that the City's design and maintenance of the pond were not defective within the meaning of the statute. As a result, the Court granted the City's petition and issued a writ directing the trial court to enter a summary judgment in favor of the City, effectively barring the plaintiffs' claims for damages. View "In re: Burrell v. City of Muscle Shoals" on Justia Law

Island Girl Outfitters, LLC (IGO) operated a store called Hippie Gurlz at Eastern Shore Centre, an outdoor shopping mall owned by Allied Development of Alabama, LLC. IGO signed a five-year lease in late 2020 but closed the store after the first year due to slow sales. Allied Development filed a complaint in Baldwin Circuit Court seeking rent and other damages under the lease. The trial court entered a $94,350 judgment in favor of Allied Development against IGO and its owner, Anthony S. Carver, who had personally guaranteed the lease.The Baldwin Circuit Court granted partial summary judgment in favor of Allied Development, finding no genuine issues of material fact regarding IGO's liability for breaching the lease. The court then held a hearing to determine damages, ultimately awarding Allied Development $94,350. IGO and Carver appealed, arguing that Allied Development failed to market and maintain the mall adequately and that they should not be liable for future rent since the storefront was relet shortly after they vacated.The Supreme Court of Alabama reviewed the case de novo regarding the liability determination and under the ore tenus rule for the damages award. The court found that IGO and Carver failed to show that Allied Development had a contractual duty to market and maintain the mall in a specific manner. Therefore, the trial court's summary judgment on liability was affirmed. Regarding damages, the absence of a transcript from the damages hearing meant the court had to presume the trial court's findings were correct. Consequently, the $94,350 judgment was affirmed. View "Island Girl Outfitters, LLC v. Allied Development of Alabama, LLC" on Justia Law

In May 2022, Jerry & John Woods Construction, Inc. ("Woods Construction") entered into a contract with John David Jordan and Carol S. Jordan to construct a house and a metal building. Woods Construction claimed the Jordans failed to pay for the work performed, leading the company to sue them in the Dallas Circuit Court for breach of contract and unjust enrichment. The Jordans moved to dismiss or for summary judgment, arguing that Woods Construction's lack of a required residential-home-builder's license barred the company from bringing civil claims. They also filed counterclaims alleging improper and negligent work by Woods Construction.The Dallas Circuit Court denied the Jordans' motion to dismiss but later granted their motion for summary judgment, finding that Woods Construction, as an unlicensed residential home builder, was barred from enforcing the construction contract under § 34-14A-14(d) of the Alabama Code. The court also declared Woods Construction's "Notice of Lis Pendens/Lien" null and void. The court certified its judgment as final under Rule 54(b), despite the Jordans' counterclaims remaining pending.The Supreme Court of Alabama reviewed the case and determined that the Rule 54(b) certification was improper. The court noted that the claims and counterclaims were closely intertwined, as both concerned the same contract and construction work. Additionally, the resolution of the Jordans' counterclaims could potentially moot Woods Construction's claims. Therefore, the court concluded that the circuit court exceeded its discretion in certifying the judgment as final and dismissed the appeal for lack of a final judgment. View "Jerry & John Woods Construction, Inc. v. Jordan" on Justia Law

Gary Everett Martin obtained a home-equity line of credit (HELOC) from BBVA USA Bancshares, Inc. (BBVA) in May 2008, secured by a mortgage on his residential property. In June 2008, Martin hired Joseph T. Scarborough, Jr., and Scarborough & Griggs, LLC (S&G) for legal representation in a divorce action. In June 2012, Martin executed a promissory note in favor of S&G for legal fees, secured by a second mortgage on the property. The attorney-client relationship ended in June 2013, and the promissory note and mortgage were later assigned to Scarborough. In June 2019, BBVA foreclosed on the property, and Scarborough purchased it at the foreclosure sale.The Lee Circuit Court granted summary judgment in favor of Scarborough, S&G, and BBVA, dismissing Martin's counterclaims and awarding possession of the property to Scarborough. The court found Martin's claims against the Scarborough parties time-barred under the Alabama Legal Services Liability Act (ALSLA) and dismissed his claims against BBVA as time-barred or unsupported by substantial evidence.The Supreme Court of Alabama reviewed the case. It found a genuine issue of material fact regarding the validity of the foreclosure sale, as the sale price was significantly lower than the property's fair market value, potentially indicating fraud or unfairness. Consequently, the court reversed the summary judgment in favor of Scarborough on his ejectment claim and remanded the case for further proceedings. However, the court affirmed the summary judgment in favor of the Scarborough parties and BBVA regarding Martin's counterclaims, finding them time-barred or unsupported by substantial evidence. View "Martin v. Scarborough" on Justia Law

In 2012, two individuals, Moore and Lloyd, obtained a $185,000 judgment against Mikul and Sanders. They applied for a writ of execution to auction two properties owned by Mikul and Sanders, and they were the highest bidders for one parcel at $130,000. Mikul, who resided on the property, contested the sale, claiming ownership and arguing that the sale price was unconscionably low. The Shelby Circuit Court initially ruled in favor of Moore and Lloyd, granting them possession of the property. Mikul's subsequent appeals and motions to intervene were denied, and the Alabama Supreme Court affirmed the lower court's decision without an opinion.Moore and Lloyd then filed an action in the Shelby Circuit Court seeking immediate possession of the property. The court granted their motion but stayed the execution of the judgment. Over the years, Moore and Lloyd filed multiple motions to dissolve the stay and sought writs of execution, but the court repeatedly denied their requests. In 2022, the Alabama Supreme Court noted that Moore and Lloyd had not argued that the stay was "immoderate" in the lower court and suggested they seek dissolution of the stay in the original action.Moore and Lloyd filed a motion to dissolve the stay in 2022, arguing it was immoderate. The Shelby Circuit Court, however, did not dissolve the stay and instead set the matter for a trial. The Alabama Supreme Court reviewed the case and concluded that the stay, which had been in place for six years, was indefinite and without continued justification, making it immoderate and beyond the court's discretion. The Supreme Court issued a writ of mandamus directing the circuit court to dissolve the stay and a writ of prohibition to vacate the orders setting the case for trial, limiting the court to issuing orders necessary to wind up the litigation. View "Ex parte Moore" on Justia Law

Hexagon US Federal, Inc. ("HexFed") leased a portion of a building from Intergraph Unimproved Properties, LLC in 2015. The lease included two bays with different terms and renewal options. In 2016, the lease was amended to provide a five-year term for both bays. CBS Holdings, LLC later acquired the building and the lease. A dispute arose over whether HexFed had validly renewed the lease, leading HexFed to file a lawsuit against CBS Holdings for breach of the lease agreement.The Madison Circuit Court held a bench trial and ruled in favor of HexFed, finding that CBS Holdings had waived its right to argue that the lease for one of the bays had expired after 12 months. The court also reformed the lease to correct a mutual mistake, establishing that the maximum monthly rent for the bay did not expire after one year. The court declared that HexFed had properly exercised its renewal option and awarded HexFed costs and attorneys' fees.The Supreme Court of Alabama reviewed the case and affirmed the lower court's judgment. The court held that CBS Holdings had waived its argument about the lease term by accepting rent without objection and by executing a lease amendment without changing the lease term. The court also upheld the reformation of the lease, finding clear evidence of a mutual mistake. Additionally, the court agreed that HexFed had validly renewed the lease by providing timely written notice, despite an error in the rent calculation. Finally, the court affirmed the award of costs and attorneys' fees to HexFed, as it was forced to file the action to enforce the lease. View "CBS Holdings, LLC v. Hexagon US Federal, Inc." on Justia Law

Dwight D. Sikes appealed a judgment from the Choctaw Circuit Court, where Michelle M. Kirkland, representing Kenneth McIlwain's estate, had obtained a judgment against him. The case involved land originally owned by Dwight's father, James Sikes, which was deeded to Dwight's brother, Archie, and subsequently to Kenneth and Patricia McIlwain. The McIlwains sued Dwight, alleging his livestock trespassed and caused damage. Dwight counterclaimed, alleging the McIlwains improperly removed James's personal property, and cross-claimed, arguing James was not competent when deeding the land to Archie.The Choctaw Circuit Court ordered Dwight to remove his livestock but did not rule on his counterclaim. After the McIlwains passed away, Kirkland was substituted as the plaintiff. The court later ruled against Dwight on his cross-claim, finding James competent when deeding the land, but did not address the counterclaim. Dwight appealed this judgment.The Supreme Court of Alabama reviewed the case and noted that the lower court had not disposed of all claims, specifically Dwight's counterclaim regarding the removal of personal property. The court emphasized that a final judgment must conclusively determine all issues and rights of the parties. Since the trial court's judgment did not address the counterclaim or fully resolve the initial trespass and nuisance claims, it was not a final judgment.Consequently, the Supreme Court of Alabama dismissed Dwight's appeal due to the lack of a final judgment, as the unresolved claims deprived the court of jurisdiction. View "Sikes v. Kirkland" on Justia Law

In February 2019, the Colberts entered into a real-estate sales contract with A & W Contractors, LLC to purchase a remodeled 54-year-old house. A home inspection revealed issues with the plumbing, septic system, and electrical wiring. The parties amended the contract to address these issues, and A&W claimed to have made the necessary repairs. Despite lingering concerns, the Colberts proceeded with the purchase after A&W's real-estate agent allegedly offered a three-month builder's warranty. After moving in, the Colberts experienced significant problems with the house's systems and spent approximately $90,000 on repairs.The Colberts sued A&W, and the case went to trial in the Jefferson Circuit Court. The jury found in favor of the Colberts on their breach-of-contract and fraud claims, awarding them compensatory and punitive damages. The trial court entered a judgment on the jury's verdict and denied A&W's post-trial motions to alter, amend, or vacate the judgment or for a new trial.The Supreme Court of Alabama reviewed the case. It held that the trial court erred in granting a judgment as a matter of law (JML) in favor of the Colberts on their breach-of-contract claim, as there was conflicting evidence that should have been resolved by the jury. However, the Supreme Court affirmed the jury's verdict on the fraudulent misrepresentation and fraudulent suppression claims, noting that A&W had failed to preserve certain evidentiary and sufficiency-of-the-evidence arguments for appellate review. The case was affirmed in part, reversed in part, and remanded for further proceedings consistent with the opinion. View "A & W Contractors, LLC v. Colbert" on Justia Law

American Pride Properties, LLC ("APP") filed a lawsuit in the Jefferson Circuit Court against James R. Davis and William M. Pickard, seeking ejectment and damages for the loss of use of real property owned by APP. Pickard had initially shown interest in purchasing the property and was allowed to take possession for renovations before closing. However, the sale did not close as planned, and Pickard attempted to assign his rights to Davis, which led to confusion. Despite multiple extensions and addendums to the purchase agreement, the sale never closed, and APP considered the agreement canceled.The Jefferson Circuit Court held a bench trial and ruled in favor of APP on its ejectment claim, awarding possession of the property to APP and dismissing the counterclaims filed by Davis and Pickard. However, the court retained jurisdiction over APP's demand for damages related to the use and detention of the property. The court certified its judgment as final under Rule 54(b) of the Alabama Rules of Civil Procedure, leading Davis and Pickard to appeal.The Supreme Court of Alabama reviewed the case and determined that the Rule 54(b) certification was improper because the trial court had not resolved the issue of damages, which was part of the same claim for ejectment. The court emphasized that a claim is not fully adjudicated for Rule 54(b) purposes until all elements, including damages, are resolved. Consequently, the judgment was not final, and the Supreme Court of Alabama dismissed the appeals as premature due to lack of jurisdiction. View "Davis v. American Pride Properties, LLC" on Justia Law