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RECENT CIVIL DECISIONS Summaries from September 2016 to March 2017

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RECENT CIVIL DECISIONS Summaries from September 2016 to March 2017 RECENT CIVIL DECISIONS Summaries from September 2016 to March 2017 STANDING AND for the homeowners associations to the ef- K. Miller, and Edward H. Cooper, ENFORCEABILITY OF fect that the associations lacked standing to Federal Practice & Procedure § 3531 CONTRACTS enforce the agreement. The Court rejected (2008) (noting, however, that the the sewer service’s assertion of a lack of United States Supreme Court, itself, standing with a scholarly recitation of the has on occasion ‘succumbed to the The Gardens at Glenlakes Property law of standing: temptation to mingle these questions’). Owners Assn., Inc. v. Baldwin County The concept of standing implicates The authors go on to explain: Sewer Service, LLC, [Ms. 1150563, Sept. a court’s subject matter jurisdiction. “’Standing goes to the exis- 23, 2016] __ So. 3d __ (Ala. 2016). In this See State v. Property at 2018 Rainbow tence of sufficient adversari- plurality opinion (Main, J., Bolin, Shaw, Drive, 740 So. 2d 1025, 1028 (Ala. ness to satisfy both Article and Bryan, JJ., concurring; Murdock, J., 1999) (“When a party without stand- III case-or-controversy concurring in the result), the Supreme ing purports to commence an action, requirements and prudential Court reverses a judgment of the Baldwin the trial court acquires no subject- concerns. In determining Circuit Court and remands the cause for matter jurisdiction.”). As Justice Lyons standing, the nature of the further consideration to determine the wrote in Hamm v. Norfolk Southern injury asserted is relevant to enforceability of an agreement among Ry., 52 So. 3d 484, 499 (Ala. 2010) determine the existence of property owners associations and a local (Lyons, J., concurring specially): the required personal stake sewer service provider. “Imprecision in labeling a party’s and concrete adverseness. ...’ The Court first rejects the Baldwin inability to proceed as a standing Circuit Court’s reasoning for entering problem unnecessarily expands the “13A Federal Practice & summary judgment in favor of the sewer universe of cases lacking in subject- Procedure § 3531.6 .... Cf. service and denying summary judgments matter jurisdiction.” In Wyeth, Inc. v. 13B Federal Practice & Blue Cross & Blue Shield of Alabama, Procedure § 3531.10 (dis- David Wirtes, 42 So. 3d 1216 (Ala. 2010), this Court cussing citizen and taxpayer is a member of Cunningham noted: standing and explaining that Bounds, LLC in “[O]ur courts too often Mobile, Alabama. He have fallen into the trap is licensed to prac- of treating as an issue of tice law in all state ‘standing’ that which is and federal courts serving Alabama and merely a failure to state Mississippi. Dave is a cognizable cause of a Sustaining Member action or legal theory, of the American or a failure to satisfy the Association for Justice where he serves as injury element of a cause a Member of its Amicus Curiae Committee (1999-present); he is a Sustaining Member of of action. As the authors the Alabama Association for Justice and has of Federal Practice and served in numerous capacities, including as Procedure explain: Member, Executive Committee (1997-present); “’The question whether the Co-editor, the Alabama Association for Justice law recognizes the cause of Journal (1996-present); and Member, Amicus Curiae Committee (1990-present / Chairman action stated by a plaintiff is or Co-chairman, 1995-present). Dave is also frequently transformed into a long-time member of the Alabama Supreme inappropriate standing terms. Court's Standing Committee on the Rules The [United States] Supreme of Appellate Procedure, a Senior Fellow of Court has stated succinctly Litigation Counsel of America and he is the only Alabama/Mississippi lawyer certified that the cause-of-action as an appellate specialist by the American question is not a question of Institute of Appellate Practice. standing.’ “13A Charles Alan Wright, Arthur WWW.ALABAMAJUSTICE.ORG SPRING 2017 | 91 RECENT CIVIL DECISIONS ‘a plaintiff cannot rest on reality, an issue as to the for future agreement is nugatory and a showing that a statute is cognizability of the legal void for indefiniteness’” ....’ Miller v. invalid, but must show “some theory asserted by BCBSAL, Rose, 138 N.C. App. 582, 587-88, direct injury as a result of its not of BCBSAL’s standing 532 S.E.2d 228, 232 (2000) (quoting enforcement, and not merely to assert that theory or the MCB Ltd. v. McGowan, 86 N.C. App. that he suffers in some in- subject-matter jurisdiction of 607, 609, 359 S.E.2d 50, 51 (1987), definite way in common with this Court to consider it.” quoting in turn Boyce v. McMahan, people generally”’). 42 So. 3d at 1219-21 (some emphasis 285 N.C. 730, 734, 208 S.E.2d 692, added; some emphasis omitted). 695 (1974)). ‘A lack of definiteness “In the present case, Wyeth Recently, in Ex parte BAC Home in an agreement may concern the appears to argue that the Loans Servicing, LP, 159 So. 3d 31 time of performance, the price to be plaintiff, BCBSAL, lacks (Ala. 2013), this Court again examined paid, work to be done, property to be standing because, Wyeth says, the concept of standing and cautioned transferred, or miscellaneous stipula- BCBSAL’s allegations, even that the concept is generally relevant tions in the agreement.’ 1 Richard A. if true, would not entitle it to only in public-law cases. 159 So. 3d at Lord, Williston on Contracts § 4:21, a recovery. ... 44-45. In BAC we quoted Professor at 644 (4th ed. 2007). ‘In particu- Hoffman: lar, a reservation in either party of a “... The question whether the “’[T]he word “standing” future unbridled right to determine right asserted by BCBSAL is unnecessarily invoked in the the nature of the performance ... has an enforceable one in the first proposition can be errone- often caused a promise to be too place, i.e., whether BCBSAL ously equated with “real party indefinite for enforcement.’ Id. at has seized upon a legal theory in interest” or “failure to state 644-48 (emphasis added). See also our law accepts, is a cause-of- a claim.” This simple, though Smith v. Chickamauga Cedar Co., 263 action issue, not a standing doctrinally unjustified, exten- Ala. 245, 248-49, 82 So. 2d 200, 202 issue. sion could swallow up Rule (1955) (‘”A reservation to either party “.... 12(b)(6), Rule 17[, Ala. R. to a contract of an unlimited right to Civ. P.,] and the whole law of determine the nature and extent of his “Nor do we see that the amendments.’” performance, renders his obligation consideration of the legal 159 So. 3d at 46 (quot- too indefinite for legal enforcement.”’) theory asserted by BCBSAL ing Hoffman,The (quoting 12 Am. Jur. Contracts § is outside the subject-matter Malignant Mystique of 66). Cf. Beraha v. Baxter Health th jurisdiction of either the “Standing,” 73 Ala. Law. Care Corp., 956 F.2d 1436, 1440 (7 trial court or this Court. The 360, 362 (2012)). Cir. 1992) (an indefinite term may courts of this State exist for Ms. *10-13. The Court concludes that the ‘render[] a contract void for lack of the very purpose of perform- true issue before the Baldwin Circuit Court mutuality’ of obligation). ing such tasks as sorting out was not that of standing, but whether the what constitutes a cognizable homeowners associations were prop- “’Even though a manifestation of in- cause of action, what are the erly real parties in interest, an issue to be tention is intended to be understood as elements of a cause of action, determined in conformance with Rule an offer, it cannot be accepted so as to and whether the allegations 17(a), Ala. R. Civ. P. and its correspond- form a contract unless the terms of the of a given complaint meet ing case law, including State v. Property at contract are reasonably certain.’ 17A those elements. Such tasks 2018 Rainbow Drive, 740 So. 2d 1025 (Ala. Am. Jur. 2d Contracts § 183 (2004). lie at the core of the judicial 1999). Ms. *13. ‘The terms of a contract are reason- function. See generally, e.g., Next, the Court rejects the Baldwin ably certain if they provide a basis for Art. VI, § 139(a), Ala. Const. Circuit Court’s reasoning that the terms determining the existence of a breach 1901 (vesting ‘the judicial of the agreement were so insufficiently and for giving an appropriate remedy.’ power of the state’ in this described and indefinite as to render the Id. (emphasis added). See also Smith, Court and lower courts of agreement unenforceable. Again, the 263 Ala. at 249, 82 So. 2d at 203.” the State); Art. VI, § 142, Court provided a scholarly synopsis of the Ala. Const. 1901 (providing requirements for enforceability of contracts White Sands Group, L.L.C. v. PRS that the circuit courts of this under Alabama law: II, LLC, 998 So. 2d 1042, 1051 (Ala. State ‘shall exercise general “’To be enforceable, the [essential] 2008). jurisdiction in all cases except terms of a contract must be suffi- as may otherwise be provided ciently definite and certain, Brooks “Generally speaking, our courts by law’). ... The issue Wyeth v. Hackney, 329 N.C. 166, 170, 404 have not favored the destruction of seeks to frame for this Court S.E.2d 854, 857 (1991), and a contract contracts on the grounds that they are as one of ‘standing’ is, in that “’leav[es] material portions open ambiguous, uncertain, or incomplete, 92 | ALABAMA ASSOCIATION FOR JUSTICE JOURNAL SPRING 2017 RECENT CIVIL DECISIONS see Alabama National Life Insurance Employees Retirement System of Alabama, the definition in the retirement plan benefit Co. v. National Union Life Insurance David Bronner, the Chief Executive Officer statute.
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