Table of Contents | Ex parte Kaleen Rugs, Inc. Civil Procedure, Environmental Law, Government & Administrative Law, Health Law | Ex parte Michael Wade Hogeland, Robert Miller, Vanna Trott. Civil Procedure, Government & Administrative Law | State ex rel. Williams-Scott v. Penny Constitutional Law, Election Law, Government & Administrative Law | DeVos v. Cunningham Group, LLC Contracts, Labor & Employment Law |
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Supreme Court of Alabama Opinions | Ex parte Kaleen Rugs, Inc. | Dockets: 1171199, 1170864, 1170887, 1170894, 1171182, 1171196, 1171197, 1171198 Opinion Date: December 20, 2019 Judge: Stewart Areas of Law: Civil Procedure, Environmental Law, Government & Administrative Law, Health Law | Mandamus petitions before the Alabama Supreme Court presented a question of whether the Cherokee Circuit Court and the Etowah Circuit Court (collectively, "the trial courts") could properly exercise personal jurisdiction over the petitioners, out-of-state companies (collectively, the defendants) in actions filed against them by the Water Works and Sewer Board of the Town of Centre ("Centre Water") and the Water Works and Sewer Board of the City of Gadsden ("Gadsden Water"). Centre Water and Gadsden Water alleged the defendants discharged toxic chemicals into industrial wastewater from their plants in Georgia, which subsequently contaminated Centre Water's and Gadsden Water's downstream water sources in Alabama. After moving unsuccessfully in the trial courts to have the actions against them dismissed, the defendants filed petitions for writs of mandamus seeking orders from the Alabama Supreme Court directing the trial courts to dismiss the actions against them based on a lack of personal jurisdiction. The Supreme Court consolidated all the petitions for the purpose of issuing one opinion. Because Indian Summer, Kaleen, and Milliken made a prima facie showing that the trial courts lacked specific personal jurisdiction and Centre Water and Gadsden Water failed to produce any evidence to contradict that showing, the trial courts should have granted their motions to dismiss. Indian Summer, Kaleen, and Milliken have, therefore, demonstrated a clear legal right to the relief sought –- dismissal of Gadsden Water's and Centre Water's complaints against them –- and the petitions for a writ of mandamus in case nos. 1170887, 1171197, and 1171199 were granted. The Supreme Court concluded the trial courts could exercise specific personal jurisdiction over the remaining defendants, and that the remaining defendants did not demonstrated a clear legal right to relief at this stage. | | Ex parte Michael Wade Hogeland, Robert Miller, Vanna Trott. | Dockets: 1180360, 1171028 Opinion Date: December 20, 2019 Judge: Mitchell Areas of Law: Civil Procedure, Government & Administrative Law | Consolidated petitions for a writ of mandamus required the Alabama Supreme Court to consider the objections of four nonparty witnesses to subpoenas issued by the Utilities Board of the City of Daphne ("Daphne Utilities"). In case no. 1171028, two of the witnesses asked the Court to vacate an order entered by the trial court requiring them to produce certain electronic information. In case no. 1180360, three of the witnesses asked the Court to vacate an order entered by the trial court allowing subpoenas for their past employment records to be issued to their current employers. The Court denied the petition in case no. 1171028, finding a favorable decision resulting from a review would not alter the parties' already existing discovery obligations; the Court granted the petition and issued a writ of mandamus in case no. 1180360, finding that because Daphne Utilities' subpoenas demanding employment records from whistleblowers' employers were not proportional to the needs of the case and were not reasonably calculated to lead to the discovery of admissible evidence. | | State ex rel. Williams-Scott v. Penny | Docket: 1180700 Opinion Date: December 20, 2019 Judge: Sellers Areas of Law: Constitutional Law, Election Law, Government & Administrative Law | The State of Alabama, on the relation of Shirley Williams-Scott, appealed a circuit court order denying Williams-Scott's petition for a writ of quo warranto seeking to declare that Eddie Penny did not hold office as the mayor of the City of Fairfield. The 2010 federal census indicated that the population of Fairfield had dropped below 12,000. A statutory provision stated that, "[i]n all towns or cities, a majority of the whole number of members to which such corporation is entitled, including the mayor in towns and cities of less than 12,000 population, shall be necessary to constitute a quorum." In the 2016 election cycle, Ed May II was elected to the position of mayor of Fairfield, and Penny was elected to the position of council president. It is undisputed that May did not attend any council meetings for 90 consecutive days, beginning October 1, 2018. During its January 22, 2019 meeting, the city council approved a resolution providing that May was removed from office of mayor as a matter of law. Penny was subsequently proclaimed mayor by a vote of the council. The Alabama Supreme Court determined the trial court did not err in denying Williams-Scott's petition for a writ of quo warranto seeking to declare Penny was not mayor of Fairfield. | | DeVos v. Cunningham Group, LLC | Docket: 1180434 Opinion Date: December 20, 2019 Judge: Stewart Areas of Law: Contracts, Labor & Employment Law | William DeVos, M.D., and Donald Simmons, M.D. (collectively, "the doctors"), appealed a preliminary injunction entered in an action filed against them by The Cunningham Group, LLC, and Cunningham Pathology, LLC. The doctors separately appealed the trial court's order denying their request to increase the amount of the surety bond for the imposition of the injunction. According to the complaint, the doctors had been employed by The Cunningham Group from April 30, 2007, until August 31, 2018, when the doctors terminated their employment without prior notice. The Cunningham Group, also identified in the complaint, other pleadings, and documents in the record as "Services LLC," provided pathology and cytology services through an agreement with Cunningham Pathology. The doctors entered into employment agreements with Services LLC in 2007, in which they agreed that, if they provided Services LLC less than 12 months' notice of their termination of their employment, they would pay Services LLC an amount equal to one year's annual salary. The doctors also agreed that, for a period of two years after the termination of employment, they would not directly or indirectly solicit any of Cunningham/Services' clients or referral sources without prior consent of Cunningham/Services. Cunningham asserted that Cunningham Pathology was an express third-party beneficiary of the doctors' employment agreements with Services LLC, and asserted claims of breach of contract and breach of fiduciary duty and sought to enforce the restrictive covenants contained in the employment agreements. Cunningham also filed a motion seeking a preliminary injunction to prohibit the doctors from violating the nonsolicitation provisions of the employment agreements. The Alabama Supreme Court found that the doctors would still be required to prove their actual damages should it later be determined that they were wrongfully enjoined. "[A]t this stage the trial court should be concerned only with setting an injunction bond amount that would adequately cover the doctors' prospective costs, damages, and attorney fees if it is later determined that the doctors were wrongfully enjoined." The Supreme Court found that based on the evidence presented to the trial court, a $25,000 injunction bond was "simply inadequate to compensate two physicians for damages and attorney fees in the event it is determined that they were wrongfully enjoined from soliciting and continuing to serve Brookwood through their new pathology business." The trial court's order denying the doctors' request to increase the amount of the injunction bond was reversed, and the case remanded for the trial court to increase the injunction-bond amount. | |
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