Justia Contracts Opinion Summaries

Daniel Flickinger, a litigator at Wainwright, Pope & McMeekin, P.C. (WPM), posted conservative commentary on his personal social media, including a controversial post about George Floyd. Lawrence Tracy King, a partner at King Simmons Ford & Spree, P.C., sent a screenshot of Flickinger’s post—paired with a professional photo from WPM’s website—to WPM partners, expressing concern about the post’s impact on the firm’s reputation. The WPM partners, after reviewing Flickinger’s social media activity and discussing with King, asked Flickinger to resign, which he did. Flickinger alleged that the screenshot misrepresented his post as being made in his professional capacity and falsely associated his views with WPM.Flickinger sued King and the King law firm for defamation, invasion of privacy, and tortious interference with a business relationship. The Jefferson Circuit Court dismissed all claims, but the Supreme Court of Alabama previously reinstated the tortious interference claim, remanding for further proceedings. On remand, the King defendants moved for summary judgment, submitting affidavits from WPM partners stating their decision to terminate Flickinger was based solely on their independent review of his public posts, not on King’s actions. Flickinger sought to compel production of King’s cell phone records and to continue the summary judgment hearing, but the circuit court denied both motions and granted summary judgment for the King defendants, finding no genuine issue of material fact on causation.The Supreme Court of Alabama affirmed summary judgment for the King law firm, holding King’s actions were outside the scope of his employment and did not benefit the firm. However, the Court reversed summary judgment for King, finding genuine issues of material fact regarding causation and justification. The case was remanded for further proceedings against King, while the denial of Flickinger’s discovery and continuance motions was affirmed. View "Flickinger v. King" on Justia Law

Bradley Lewis, acting on behalf of iWTNS, Inc. and Leveraged, LLC, entered into a contract with MotionMobs, LLC to develop a mobile-phone application intended to help users contact legal counsel during police stops. The contract specified a timeline and an hourly billing rate. Disputes arose regarding payment and the quality of the delivered product, leading MotionMobs to file a breach-of-contract suit against Lewis and the companies in the Jefferson Circuit Court. During litigation, Lewis and MotionMobs’ CEO exchanged text messages discussing a possible settlement, with Lewis proposing a payment schedule and MotionMobs responding with additional terms.The Jefferson Circuit Court reviewed MotionMobs’ motion to enforce the text-message exchange as a binding settlement agreement. The court found that the parties had entered into a valid agreement based on the text messages and ordered them to execute a written agreement reflecting those terms. The defendants sought relief from this order, which was denied, and MotionMobs moved to hold them in contempt for noncompliance. After procedural developments, including an initial dismissal of an appeal for lack of a final order, the circuit court entered a final judgment, prompting a timely appeal by the defendants.The Supreme Court of Alabama reviewed the case de novo, focusing on whether the text-message exchange constituted a binding settlement agreement. The Court held that the exchange did not create an enforceable contract because MotionMobs’ response was a counteroffer containing indefinite terms that were never accepted by the defendants. The Court emphasized that a valid contract requires definite material terms and mutual assent, which were lacking in this instance. Accordingly, the Supreme Court of Alabama reversed the circuit court’s judgment and remanded the case for further proceedings. View "iWTNS, Inc. v. MotionMobs, LLC" on Justia Law

Hexagon US Federal, Inc. ("HexFed") leased a portion of a building, which was later sold to CBS Holdings, LLC. A dispute arose regarding the lease's renewal, leading HexFed to file a lawsuit against CBS Holdings for breach of lease. CBS Holdings counterclaimed. The Madison Circuit Court ruled in favor of HexFed on all claims and awarded costs and attorney fees to be determined later. CBS Holdings appealed, and the Supreme Court of Alabama affirmed the trial court's judgment, including the award of costs and attorney fees.After an evidentiary hearing, the Madison Circuit Court awarded HexFed $174,987.45 in costs and attorney fees. CBS Holdings appealed, arguing that HexFed's application for attorney fees was inadequately supported due to redacted descriptions of legal work and that the trial court's order lacked sufficient detail for meaningful appellate review.The Supreme Court of Alabama reviewed the case and agreed with CBS Holdings. The court found that HexFed's heavily redacted invoices did not provide enough information to determine the reasonableness and necessity of the attorney fees. The court emphasized that a trial court's order must allow for meaningful appellate review by articulating the decisions made, the reasons supporting those decisions, and how the attorney fee was calculated, considering all the Peebles factors.The Supreme Court of Alabama reversed the trial court's order and remanded the case for HexFed to provide adequate support for its application for costs and attorney fees. The trial court was instructed to accept any necessary information or evidence to confirm the requested attorney fees and to enter a detailed order showing how it calculated the amount awarded and how it considered the Peebles factors. View "CBS Holdings, LLC v. Hexagon US Federal, Inc." on Justia Law

The case involves members of the Auburn University Board of Trustees and various Auburn University employees (defendants) who were sued by Patti Northcutt and her husband, Walter Northcutt (plaintiffs). Patti, a former employee and doctoral student at Auburn, alleged that the defendants retaliated against her for previous lawsuits and grievances she had filed, which were settled through agreements. She claimed that the defendants breached these settlement agreements and interfered with her ability to complete her doctoral program and obtain employment at Auburn.The plaintiffs initially filed their complaint in the Lee Circuit Court, which they amended multiple times. The third amended complaint included claims under the Family Medical Leave Act (FMLA), 42 U.S.C. § 1983 for First Amendment retaliation, equal protection, and procedural due process violations, as well as state-law claims for breach of contract, intentional interference with contractual relations, and intentional infliction of emotional distress. The defendants moved to dismiss these claims, asserting federal qualified immunity and State immunity under the Alabama Constitution.The Lee Circuit Court granted the motion to dismiss the First Amendment and intentional infliction of emotional distress claims but denied the motion regarding the other claims. The defendants then petitioned the Supreme Court of Alabama for a writ of mandamus to direct the trial court to dismiss the remaining claims.The Supreme Court of Alabama granted the petition in part, directing the trial court to dismiss the claims for monetary damages against the employee defendants in their individual capacities under § 1983 for equal protection and procedural due process violations, based on federal qualified immunity. The Court also directed the dismissal of the plaintiffs' request for attorneys' fees related to state-law claims for prospective injunctive relief, based on State immunity. However, the Court denied the petition regarding the plaintiffs' request for attorneys' fees related to federal-law claims for prospective injunctive relief and the state-law claims for monetary damages against the employee defendants in their individual capacities. View "Ex parte B.T. Roberts" on Justia Law

Joy Goodwin Adams sued Tiffany Rudd Atkinson, Katherine M. Rudd, Goodwin Capital Partners, Ltd., and KATISAM, Inc., seeking reimbursement for attorneys' fees she paid to a third party. The Jefferson Circuit Court dismissed her suit with prejudice, leading Joy to appeal. The central issue was whether the terms "hold harmless" and "indemnify" are synonymous when used independently in a contract. The Supreme Court of Alabama held that they are synonymous.The case involves three trusts and two agreements. Joy's parents created two trusts in 1986 and 1987 for Joy and her daughters, Tiffany and Kate. Joy created a third trust in 1989. Joy executed a 2011 release-and-indemnification agreement with BB&T, a co-trustee, and a 2013 settlement agreement with the defendants after Tiffany and Kate sued her for alleged breaches of fiduciary duties. The 2013 agreement included a "hold harmless" provision requiring the defendants to protect Joy against claims for attorneys' fees by corporate trustees successfully defending against suits initiated by Tiffany and Kate.In prior litigation, Tiffany and Kate sued BB&T for negligence, and BB&T filed a third-party claim against Joy for attorneys' fees. The federal district court granted summary judgment in favor of BB&T on the negligence claim and denied Joy's motion on the indemnification claim. Joy settled BB&T's claim for $614,791.62 and then demanded reimbursement from the defendants, who refused.The Supreme Court of Alabama reviewed the case de novo and concluded that "hold harmless" and "indemnify" are synonymous, meaning the defendants agreed to reimburse Joy for the attorneys' fees she paid to BB&T. The court reversed the circuit court's judgment and remanded the case for further proceedings. View "Adams v. Atkinson" on Justia Law

Hembree Insurance Trust ("Hembree") leased a 135,847-square-foot industrial building in Scottsboro to Maples Industries, Inc. ("Maples") for five years starting January 1, 2020. The lease required Maples to maintain the property and share roof repair costs with Hembree. Hembree initiated a lawsuit against Maples in March 2024, alleging that Maples failed to repair or replace the roof as required by the lease.The Jackson Circuit Court treated Maples's motion to dismiss as a motion for summary judgment and ruled in favor of Maples. The court found the lease "null and void" because Hembree did not own the property, which had been transferred to Woods Cove Industrial Property, LLC ("Woods Cove") in 2014. Hembree argued that it was the sole member of Woods Cove and had the authority to lease the property, but the trial court disagreed.The Supreme Court of Alabama reviewed the case de novo. It found that Hembree, as the sole and controlling member of Woods Cove, had the authority to lease the property. The court noted that a tenant in possession generally cannot dispute the landlord's title and that Maples had accepted and benefited from the lease. The court concluded that Maples was estopped from challenging the lease based on Hembree being the named lessor. The Supreme Court of Alabama reversed the trial court's judgment and remanded the case for further proceedings. View "Hembree Insurance Trust v. Maples Industries, Inc." on Justia Law

Trista Carter entered into a contract with Johnny Mack Morrow and Martha Morrow to purchase a house and 245 acres for $1,600,000. The contract included provisions for earnest money and an arbitration clause. The sale did not close, and the Morrows sued Carter for breach of contract and sought damages, including the earnest money. They also named Crye-Leike, Inc., the company holding the earnest money, as a defendant.The Franklin Circuit Court reviewed the case and denied Carter's motion to compel arbitration. The court found that the arbitration clause did not apply to disputes arising under paragraphs 11 and 12 of the contract, which included the earnest money dispute. Carter filed a motion to alter, amend, or vacate the judgment, arguing that the breach-of-contract claim was not solely an interpleader action regarding the earnest money. The trial court denied Carter's postjudgment motions by operation of law.The Supreme Court of Alabama reviewed the case and held that the arbitration agreement in the contract specifically excluded disputes related to the earnest money, as outlined in paragraph 12. Therefore, the trial court properly denied the motion to compel arbitration for the interpleader claim. However, the court found that the breach-of-contract claim, which sought damages beyond the earnest money, was subject to arbitration under the contract's arbitration clause. The Supreme Court of Alabama affirmed the trial court's decision regarding the interpleader claim but reversed the decision regarding the breach-of-contract claim and remanded the case for further proceedings consistent with its opinion. View "Carter v. Morrow" on Justia Law

JohnsonKreis Construction Company, Inc. ("JohnsonKreis") served as the general contractor on a hotel-construction project in Birmingham, with Howard Painting, Inc. ("Howard") as a subcontractor. The subcontract agreement included an indemnity provision requiring Howard to indemnify JohnsonKreis for personal injury or death arising from Howard's negligence. Domingo Rosales-Herrera, an employee of a subcontractor working for Howard, died after falling from a window while attempting to load equipment into a trash box on a telehandler owned by JohnsonKreis. The personal representative of Rosales-Herrera's estate filed a wrongful-death lawsuit against both JohnsonKreis and Howard.The Jefferson Circuit Court granted summary judgment in favor of Howard and its insurers, Auto-Owners Insurance Company and Owners Insurance Company (collectively "Owners"), determining that the indemnity provision in the subcontract agreement was legally unenforceable. The court held that Alabama law does not allow for the apportionment of damages in a wrongful-death case, thus precluding proportional indemnification.The Supreme Court of Alabama reviewed the case and reversed the trial court's decision. The Supreme Court held that the subcontract agreement's proportional indemnity provision was legally enforceable under Alabama law. The court noted that parties may enter into agreements allowing for indemnification even for claims resulting solely from the negligence of the indemnitee. The court emphasized that such agreements are valid and enforceable if expressed in clear and unequivocal language.The Supreme Court remanded the case for further proceedings consistent with its opinion, instructing the trial court to consider the parties' evidentiary submissions and arguments regarding the interpretation and application of the disputed provisions of the subcontract agreement and the additional-insured endorsement. View "JohnsonKreis Construction Company, Inc. v. Howard Painting, Inc." 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

Piedmont Comprehensive Pain Management Group, LLC ("Piedmont") provides pain-management care and had a business arrangement with DocRx Dispensing, Inc. ("DRD") for billing and collection services. DRD collected payments from insurance companies for medications dispensed by Piedmont and kept a portion as compensation. In 2022, Piedmont sued DRD and other related entities and individuals, alleging breach of contract, unjust enrichment, and various tort-based claims, accusing them of improperly depriving Piedmont of funds owed for dispensing medications.The Mobile Circuit Court initially granted the defendants' motion to compel arbitration based on an April 2017 agreement between Piedmont and DRD, which included an arbitration clause. The court stayed the action pending arbitration. During arbitration, the defendants produced a later August 2017 agreement, which also contained an arbitration clause and was signed by both parties. Piedmont then requested the trial court to lift the stay, arguing that the defendants could not insist on arbitration while denying the existence of the April 2017 agreement. The trial court lifted the stay, and the defendants appealed.The Supreme Court of Alabama reviewed the case de novo. The court held that claims based on the August 2017 agreement, which was signed by both parties, must be arbitrated. The court also noted that the trial court's initial order compelling arbitration of claims based on the April 2017 agreement was a final judgment, and Piedmont's failure to appeal within the required time frame meant the trial court had no jurisdiction to set aside that order. Consequently, the Supreme Court of Alabama reversed the trial court's order lifting the stay and remanded the case for further proceedings consistent with its opinion. View "DocRx, Inc. v. Piedmont Comprehensive Pain Management Group, LLC" on Justia Law