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Justia Daily Opinion Summaries

Supreme Court of Alabama
March 28, 2020

Table of Contents

Lawler Manufacturing Co., Inc. v. Lawler

Business Law, Civil Procedure

Ex parte 4tdd.com, Inc., et al.

Civil Procedure, Class Action, Securities Law

Ex parte Huntingdon College.

Civil Procedure, Trusts & Estates

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Surgeon and bioethicist Charles E. Binkley, MD, offers a perspective on how we might make sense of suffering, particularly in light of the present COVID-19 pandemic. Binkley suggests that through suffering, we are paradoxically able to find good, and in this instance, that good might be the practice of social reciprocity.

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Supreme Court of Alabama Opinions

Lawler Manufacturing Co., Inc. v. Lawler

Docket: 1180889

Opinion Date: March 27, 2020

Judge: Michael F. Bolin

Areas of Law: Business Law, Civil Procedure

Lawler Manufacturing Co., Inc., appealed an order requiring Chris Lawler, president of Lawler Manufacturing, among other things, to authorize and give his consent to a pending shipment of goods from China, and to refrain from engaging in conduct that is contrary to the best interest of Lawler Manufacturing. In 2019, Lawler Manufacturing sued Delmas Lawler, a shareholder, vice president, and alleged former employee of Lawler Manufacturing, and Sandra Lawler, an alleged former employee, alleging breach of fiduciary duty, theft, and conspiracy. Delmas moved the court to order Lawler Manufacturing and Chris, as president of Lawler Manufacturing, to continue the business operations of Lawler Manufacturing in the usual and customary manner in which business affairs had been conducted before the litigation was commenced, which would include authorizing the shipment of an order from China that had been placed earlier. The trial court granted the motion and ordered Chris to act in the best interest of the company. The Alabama Supreme Court determined the trial court did not have jurisdiction to enter the order. The presiding judge disqualified himself from this case, and no longer had authority to appoint his successor or to enter the order appointing the judge who entered the order requiring Chris Lawler to act in Lawler Manufacturing's best interest. " Therefore, Presiding Judge Woodruff's appointment of Judge Fannin was not a valid judicial appointment, and that order is vacated."

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Ex parte 4tdd.com, Inc., et al.

Docket: 1180262

Opinion Date: March 27, 2020

Judge: Stewart

Areas of Law: Civil Procedure, Class Action, Securities Law

4tdd.com, Inc. ("4tdd"), Thomas Todd Martin III, and Martin & Associates Consulting Company, LLC ("MACC"), petitioned the Alabama Supreme Court for a writ of mandamus to instruct the Mobile Circuit Court ("the trial court") to dismiss a derivative shareholder action filed against them by Sheila Hale, individually and on behalf of the shareholders of Bay Area Nutrition, Inc., on the ground, inter alia, that Hale did not satisfy the requirement of Rule 23.1, Ala. R. Civ. P., that she allege with particularity in her complaint the efforts she had made to obtain the requested relief from the corporate directors of Bay Area Nutrition, Inc. ("BAN"), before filing an action against them. The Supreme Court determined, after careful consideration, that Hale indeed failed to comply with Rule 23.1, and directed the trial court to direct 4tdd.com, Martin and MACC's motion to dismiss.

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Ex parte Huntingdon College.

Docket: 1180148

Opinion Date: March 27, 2020

Judge: Per Curiam

Areas of Law: Civil Procedure, Trusts & Estates

Huntingdon College, a beneficiary of the Bellingrath-Morse Foundation Trust ("the Foundation"), petitioned the Alabama Supreme Court for a writ of mandamus directing the Mobile Probate Court to vacate its order denying Huntingdon's motion to dismiss an action filed by the Foundation's trustees, on behalf of the Foundation, and to enter an order dismissing the action for lack of jurisdiction. Walter Bellingrath established the Foundation, a charitable trust ("the Trust Indenture"). Mr. Bellingrath contributed to the Foundation, both at its inception, and through his will and codicil, substantial property, including the Bellingrath Gardens ("the Gardens") and his stock in the Coca-Cola Bottling Company. Beneficiaries of the Foundation included three privately supported Christian colleges: Huntingdon College, Rhodes College, and Stillman College. The Foundation’s trustees and the beneficiaries have historically disagreed as to whether the Trust Indenture contemplated the subsidy of the Gardens by the Foundation and, if so, to what extent and with what limitations, if any. The trustees had difficulty operating the Gardens based on agreed-upon caps to the Garden's subsidy, and have voted to increase the distribution amount to the Gardens. They sought declaratory relief in order to maintain a reserve for the repair and capital improvement of the Gardens, and to distribute to the Gardens, in the trustees' sole discretion, such amount of the Foundation's income they deemed necessary for the maintenance, repair and operation of the Gardens. The Alabama Supreme Court determined the the probate court lacked jurisdiction to modify the Mobile Circuit Court's final judgment approving a 2003 Amendment. The Supreme Court therefore granted the petition for a writ of mandamus and directed the probate court to dismiss the trustees' action.

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