Case Title: Southern Homes, AL, Inc. v. Bermuda Lakes, LLC

Citation: 

Docket Number: 1080270

State: alabama

Court: Alabama Supreme Court

Date: 2010-08-27T00:00:00Z

Document:
Rel 08/27/2010 
Notice: T h i s o p i n i o n i s 
s u b j e c t t o f o r m a l r e v i s i o n b e f o r e p u b l i c a t i o n i n 
t h e 
advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e Reporter of 
Decisions, 
Alabama A p p e l l a t e C o u r t s , 300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 ((334) 229¬
0 6 4 9 ) , o f 
any 
t y p o g r a p h i c a l 
o r 
o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may 
be 
made b e f o r e 
t h e o p i n i o n i s p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
SPECIAL TERM, 2010 
1080270 
Southern Homes, AL, 
Inc. 
v. 
Bermuda Lakes, LLC 
Appeal from Madison C i r c u i t Court 
(CV-08-1386) 
PER CURIAM. 
S o u t h e r n Homes, A L , I n c . ( " S o u t h e r n Homes"), a p p e a l s 
f r o m 
a p r e l i m i n a r y i n j u n c t i o n e n t e r e d b y t h e M a d i s o n C i r c u i t 
C o u r t 
i n 
f a v o r o f Bermuda 
L a k e s , 
LLC ("Bermuda"), 
p r e v e n t i n g 
S o u t h e r n 
Homes f r o m 
p r o c e e d i n g 
" i n a n y way w i t h 
[ S o u t h e r n 
Homes'] a c t i o n 
s t y l e d 
S o u t h e r n Homes, A . L . , 
I n c . v . Bermuda 
L a k e s , L L C , C a s e No. 08-4797, w h i c h i s 
now p e n d i n g i n D i v i s i o n 
1080270 
H-12 
o f t h e 
C i v i l 
D i s t r i c t C o u r t f o r t h e P a r i s h o f O r l e a n s i n 
t h e 
S t a t e 
o f 
L o u i s i a n a 
( t h e 
' L o u i s i a n a 
a c t i o n ' ) , o r 
i n 
any 
o t h e r p r o c e e d i n g 
t h a t a r i s e s f r o m t h e c o n t r o v e r s y 
t h a t i s t h e 
s u b j e c t o f t h i s a c t i o n o r i n v o l v e s o r r e l a t e s t o [Bermuda] 
o r 
any 
o f 
i t s r e l a t e d o r 
a f f i l i a t e d 
e n t i t i e s . " 
We 
r e v e r s e 
and 
remand. 
F a c t s 
and 
P r o c e d u r a l 
H i s t o r y 
On 
S e p t e m b e r 
5, 
2007, 
S o u t h e r n 
Homes, 
an 
A l a b a m a 
c o r p o r a t i o n w i t h 
i t s p r i n c i p a l p l a c e 
o f b u s i n e s s 
i n 
S l i d e l l , 
L o u i s i a n a , e n t e r e d 
i n t o a c o n t r a c t 
t o p u r c h a s e 
a p p r o x i m a t e l y 
87.62 a c r e s 
o f l a n d i n M a d i s o n C o u n t y , A l a b a m a , f r o m F a n n i n g 
S c h o o l 
C o m m u n i t i e s , 
LLC 
( " F a n n i n g " ) , 
and 
B r i a r 
P a t c h , 
LLC 
( " B r i a r 
P a t c h " ) . 
B e f o r e 
t h e 
s a l e 
t h e 
l a n d 
was 
t o 
be 
s u b d i v i d e d 
i n t o a p p r o x i m a t e l y 
269 
r e s i d e n t i a l l o t s . 
U n d e r t h e 
c o n t r a c t , S o u t h e r n Homes was 
t o p u r c h a s e t h e p r o p e r t y 
i n f o u r 
s e p a r a t e 
" t a k e 
downs." 
S o u t h e r n 
Homes 
was 
r e q u i r e d 
t o 
p u r c h a s e a s p e c i f i c number o f 
l o t s 
f o r e a c h t a k e down. 
The 
s e l l e r s were r e q u i r e d t o s a t i s f y c e r t a i n c o n d i t i o n s 
c o n c e r n i n g 
t h e p r e p a r a t i o n 
o f t h e 
l o t s b e f o r e 
e a c h t a k e down. 
P u r s u a n t 
t o t h e 
c o n t r a c t , S o u t h e r n Homes p r o v i d e d 
t h e 
s e l l e r s 
w i t h 
a 
$ 3 0 0 , 0 0 0 
i r r e v o c a b l e 
s t a n d b y 
l e t t e r 
o f 
c r e d i t , 
w h i c h 
t h e 
2 
1080270 
s e l l e r s c o u l d draw on i f S o u t h e r n Homes f a i l e d t o c l o s e on any 
t a k e down b e c a u s e o f a d e f a u l t by S o u t h e r n Homes. The 
l e t t e r 
o f 
c r e d i t was i s s u e d by W h i t n e y N a t i o n a l Bank l o c a t e d i n New 
O r l e a n s , 
L o u i s i a n a . 
The l e t t e r o f c r e d i t p r o v i d e d t h a t a l l 
d r a f t s drawn p u r s u a n t t o i t 
must be p r e s e n t e d t o t h e b a n k ' s 
I n t e r n a t i o n a l B a n k i n g D e p a r t m e n t i n 
New O r l e a n s . 
L a t e r , t h e c o n t r a c t t o p u r c h a s e t h e l a n d was amended t o 
c h a n g e t h e 
name o f t h e s e l l e r s t o Bermuda, a l i m i t e d 
l i a b i l i t y 
company f o r m e d by t h e p r i n c i p a l s o f F a n n i n g a n d B r i a r 
P a t c h 
a f t e r t h e c o n s u m m a t i o n o f t h e o r i g i n a l 
c o n t r a c t t o p u r c h a s e . 
The amendment was e f f e c t i v e J a n u a r y 3, 2008. 
On May 2, 2008, 
S o u t h e r n Homes gave 
w r i t t e n 
n o t i c e t o 
Bermuda 
t h a t 
i t was 
t e r m i n a t i n g 
t h e c o n t r a c t 
t o 
p u r c h a s e 
b e c a u s e , 
S o u t h e r n Homes 
s a i d , 
Bermuda h a d f a i l e d t o t i m e l y 
s a t i s f y t h e m u l t i p l e 
c o n d i t i o n s i t 
was r e q u i r e d t o 
s a t i s f y 
b e f o r e t h e i n i t i a l t a k e down. 
The w r i t t e n n o t i c e 
a l s o 
a s k e d 
f o r t h e r e t u r n o f t h e $300,000 
l e t t e r o f c r e d i t . 
On t h e same d a y S o u t h e r n Homes gave 
w r i t t e n 
n o t i c e t o 
Bermuda 
t h a t i t 
was 
t e r m i n a t i n g 
t h e c o n t r a c t 
t o p u r c h a s e , 
S o u t h e r n 
Homes 
a l s o 
f i l e d 
a 
d e c l a r a t o r y - j u d g m e n t 
a c t i o n 
a g a i n s t Bermuda i n 
t h e C i v i l 
D i s t r i c t C o u r t f o r 
t h e P a r i s h o f 
3 
1080270 
O r l e a n s i n t h e S t a t e o f L o u i s i a n a 
("the L o u i s i a n a 
a c t i o n " ) . 
T h a t 
a c t i o n s o u g h t a j u d g m e n t d e c l a r i n g 
t h a t 
S o u t h e r n Homes 
had 
l a w f u l l y t e r m i n a t e d t h e p u r c h a s e c o n t r a c t a n d t h a t i t was 
e n t i t l e d t o a r e t u r n o f t h e l e t t e r o f c r e d i t . 
I n a l e t t e r d a t e d J u n e 18, 2008, Bermuda a d v i s e d 
S o u t h e r n 
Homes t h a t i t 
h a d c o m p l e t e d a l l t h e t a k e - d o w n c o n d i t i o n s a n d 
t h a t i t 
was p r e p a r e d t o i m m e d i a t e l y c l o s e on t h e f i r s t 
t a k e 
down. 
The l e t t e r 
a l s o 
s t a t e d 
t h a t , u n d e r t h e t e r m s o f t h e 
c o n t r a c t , t h e t i m e f o r Bermuda's p e r f o r m a n c e h a d b e e n e x t e n d e d 
90 
d a y s 
as t h e r e s u l t o f Bermuda's 
i n a b i l i t y 
t o 
o b t a i n 
n e c e s s a r y g o v e r n m e n t a l a p p r o v a l s r e l a t e d t o a w e t l a n d s 
i s s u e . 
S o u t h e r n Homes d i d 
n o t c l o s e on t h e p r o p e r t y . 
On S e p t e m b e r 15, 2008, Bermuda 
f i l e d t h e p r e s e n t 
a c t i o n 
i n t h e M a d i s o n 
C i r c u i t 
C o u r t 
("the A l a b a m a 
a c t i o n " ) , 
s u i n g 
S o u t h e r n Homes a n d i t s p r i n c i p a l s , 
A d r i a n Kornman a n d C h r i s 
Kornman, on t h e o r i e s o f f r a u d a n d b r e a c h o f c o n t r a c t . 
On 
O c t o b e r 24, 2008, Bermuda moved f o r 
a p r e l i m i n a r y i n j u n c t i o n , 
s e e k i n g 
t o 
e n j o i n 
S o u t h e r n 
Homes 
f r o m 
p r o s e c u t i n g 
t h e 
L o u i s i a n a a c t i o n a n d f r o m e n g a g i n g i n 
any o t h e r p r o c e e d i n g s i n 
L o u i s i a n a 
t h a t m i g h t a r i s e f r o m t h e c o n t r o v e r s y 
t h a t i s 
t h e 
s u b j e c t o f t h e A l a b a m a a c t i o n . 
Bermuda a l l e g e d t h a t 
w i t h o u t 
4 
1080270 
t h e 
i n j u n c t i o n , 
i t w o u l d 
be 
" s u b j e c t e d 
t o 
d u p l i c a t i v e 
l i t i g a t i o n , 
t h e 
p o s s i b i l i t y 
o f 
i n c o n s i s t e n t 
r e s u l t s , 
and 
u n n e c e s s a r y h a r d s h i p and c o s t s . " 
Bermuda f u r t h e r a l l e g e d t h a t 
t h e 
c a s e 
b e l o n g s 
i n A l a b a m a 
b e c a u s e 
t h e 
c a s e 
i n v o l v e s 
a 
c o n t r a c t b e t w e e n two A l a b a m a c o r p o r a t i o n s f o r t h e s a l e o f l a n d 
l o c a t e d i n A l a b a m a . 
On 
O c t o b e r 
30, 
2008, 
S o u t h e r n 
Homes 
moved 
f o r 
a 
p r e l i m i n a r y 
i n j u n c t i o n i n t h e L o u i s i a n a 
a c t i o n , s e e k i n g 
t o 
e n j o i n Bermuda 
f r o m p r o s e c u t i n g t h e A l a b a m a a c t i o n . 
On t h e 
same d a y , t h e L o u i s i a n a c o u r t s e t S o u t h e r n Homes' m o t i o n f o r 
a p r e l i m i n a r y i n j u n c t i o n f o r a h e a r i n g on November 13, 2008. 
On November 4, 2008, t h e M a d i s o n 
C i r c u i t C o u r t s e t Bermuda's 
m o t i o n f o r a p r e l i m i n a r y i n j u n c t i o n f o r a h e a r i n g on November 
10, 
2008. 
On November 
5, 2008, 
S o u t h e r n Homes moved t h e 
L o u i s i a n a c o u r t t o s e t an e x p e d i t e d h e a r i n g o f i t s 
r e q u e s t f o r 
a p r e l i m i n a r y 
i n j u n c t i o n . 
On 
t h e same d a y , t h e 
L o u i s i a n a 
c o u r t s e t S o u t h e r n Homes' m o t i o n f o r a p r e l i m i n a r y i n j u n c t i o n 
f o r 
a h e a r i n g on November 7, 2008. 
A t 9:48 a.m. 
on November 
6, 
2008, 
Bermuda 
f i l e d 
a 
" v e r i f i e d 
e m e r g e n c y 
m o t i o n 
f o r 
p r e l i m i n a r y i n j u n c t i o n and o t h e r e q u i t a b l e r e l i e f , " a s k i n g t h e 
M a d i s o n 
C i r c u i t 
C o u r t 
t o c o n d u c t 
an 
i m m e d i a t e 
h e a r i n g 
on 
5 
1080270 
Bermuda's 
m o t i o n 
f o r a 
p r e l i m i n a r y 
i n j u n c t i o n . 
S h o r t l y 
t h e r e a f t e r , t h e M a d i s o n C i r c u i t C o u r t c o n d u c t e d a h e a r i n g on 
Bermuda's 
m o t i o n 
f o r a 
p r e l i m i n a r y 
i n j u n c t i o n 
i n 
w h i c h 
S o u t h e r n 
Homes' 
c o u n s e l 
p a r t i c i p a t e d 
b y 
t e l e p h o n e 
and 
Bermuda's c o u n s e l 
p a r t i c i p a t e d i n p e r s o n . 
A t 11:45 a.m. on 
November 
6, 
2008, 
" [ a ] f t e r 
c o n s i d e r i n g 
t h e a r g u m e n t s and 
a u t h o r i t i e s 
o f c o u n s e l 
and a c t i n g 
p u r s u a n t t o i t s g e n e r a l 
a u t h o r i t y t o do e q u i t y , " t h e M a d i s o n 
C i r c u i t 
C o u r t 
i s s u e d a 
p r e l i m i n a r y 
i n j u n c t i o n 
e n j o i n i n g 
S o u t h e r n 
Homes 
" f r o m 
p r o c e e d i n g i n any way w i t h [ t h e L o u i s i a n a 
a c t i o n ] , o r i n any 
o t h e r p r o c e e d i n g t h a t a r i s e s f r o m t h e c o n t r o v e r s y 
t h a t i s 
t h e 
s u b j e c t o f t h i s a c t i o n o r i n v o l v e s o r r e l a t e s t o [ B e r m u d a ] o r 
any 
o f i t s r e l a t e d o r 
a f f i l i a t e d 
e n t i t i e s . " 
The 
M a d i s o n 
C i r c u i t C o u r t f u r t h e r 
h e l d : 
" 1 . Venue i s p r o p e r i n M a d i s o n C o u n t y and t h i s 
C o u r t h a s j u r i s d i c t i o n 
o v e r a l l o f t h e p a r t i e s and 
t h e i r 
c o u n s e l . 
"2. The L o u i s i a n a a c t i o n a n d t h i s a c t i o n 
i n v o l v e 
s u b s t a n t i a l l y 
t h e 
same 
c o n t r o v e r s y , 
i . e . , 
[ B e r m u d a ' s ] c l a i m a g a i n s t 
S o u t h e r n Homes f o r b r e a c h 
o f 
c o n t r a c t . 
T h i s 
a c t i o n 
a l s o 
i n v o l v e s 
[ B e r m u d a ' s ] 
f r a u d 
c l a i m s 
a g a i n s t 
t h e p r i n c i p a l s o f 
S o u t h e r n 
Homes, A d r i a n Kornman and C h r i s Kornman. 
"3. [ B e r m u d a ] w i l l 
s u f f e r i r r e p a r a b l e harm f o r 
w h i c h 
t h e r e i s no a d e q u a t e remedy a t l a w i f i t i s 
6 
1080270 
r e q u i r e d 
t o l i t i g a t e 
t h e same 
c o n t r o v e r s y 
i n two 
c o u r t s . 
"4. 
[ B e r m u d a ] h a s e s t a b l i s h e d 
t h a t 
i t h a s a 
r e a s o n a b l e c h a n c e o f s u c c e s s on t h e m e r i t s 
o f i t s 
b r e a c h 
o f 
c o n t r a c t 
c l a i m , 
i . e . , 
t h a t 
a 
v a l i d 
c o n t r a c t 
e x i s t s , 
S o u t h e r n Homes d i d n o t p e r f o r m , 
[ B e r m u d a ] i s c a p a b l e o f p e r f o r m i n g , a n d [ B e r m u d a ] 
has b e e n damaged. 
"5. 
The 
e q u i t i e s 
c l e a r l y 
f a v o r 
[ B e r m u d a ] 
i n a s m u c h as t h i s i s 
a d i s p u t e 
i n v o l v i n g A l a b a m a 
r e a l 
e s t a t e t h a t i s 
t h e s u b j e c t o f a c o n t r a c t g o v e r n e d b y 
A l a b a m a l a w b e t w e e n two A l a b a m a c o m p a n i e s . T h i s i s 
a c o n t r o v e r s y 
t h a t 
s h o u l d be l i t i g a t e d i n A l a b a m a . 
I t 
w o u l d 
be 
u n f a i r 
t o 
s u b j e c t 
[ B e r m u d a ] 
t o 
d u p l i c a t i v e 
l i t i g a t i o n 
i n 
L o u i s i a n a , 
t h e r e b y 
c r e a t i n g t h e p o s s i b i l i t y o f i n c o n s i s t e n t r e s u l t s a n d 
c e r t a i n 
u n n e c e s s a r y 
h a r d s h i p 
a n d c o s t s . 
S o u t h e r n 
Homes i s 
an A l a b a m a company, s u b j e c t t o A l a b a m a l a w 
and 
j u r i s d i c t i o n i n 
A l a b a m a . S o u t h e r n Homes w i l l n o t 
be 
p r e j u d i c e d 
b y h a v i n g t o l i t i g a t e 
t h i s 
A l a b a m a 
d i s p u t e i n A l a b a m a . " 
On November 20, 2008, 
S o u t h e r n Homes 
f i l e d 
i t s a p p e a l 
f r o m t h e p r e l i m i n a r y i n j u n c t i o n e n t e r e d by t h e c i r c u i t 
c o u r t .
1 
1On t h e same d a y t h a t S o u t h e r n Homes 
f i l e d i t s 
n o t i c e o f 
a p p e a l t o t h i s 
C o u r t , 
S o u t h e r n Homes 
f i l e d a m o t i o n i n 
t h e 
c i r c u i t 
c o u r t , 
a s k i n g t h e c o u r t t o d i s s o l v e t h e p r e l i m i n a r y 
i n j u n c t i o n . 
S o u t h e r n Homes a t t a c h e d 
s e v e r a l e x h i b i t s t o t h a t 
m o t i o n , 
i n c l u d i n g 
a f f i d a v i t s , 
p l e a d i n g s 
f r o m t h e 
L o u i s i a n a 
a c t i o n , a n d o r d e r s 
i s s u e d b y t h e L o u i s i a n a c o u r t . 
T h a t m o t i o n 
and 
i t s 
e x h i b i t s were 
o r i g i n a l l y 
i n c l u d e d 
as p a r t 
o f t h e 
r e c o r d on a p p e a l . 
However, Bermuda moved t h e c i r c u i t c o u r t t o 
c o r r e c t t h e r e c o r d on a p p e a l , 
a n d t h e c i r c u i t 
c o u r t 
o r d e r e d 
t h a t a l l p l e a d i n g s a n d e v i d e n c e e n t e r e d 
i n t o t h e r e c o r d 
a f t e r 
i t g r a n t e d t h e p r e l i m i n a r y i n j u n c t i o n on November 6, 2008, be 
s t r i c k e n f r o m t h e r e c o r d on a p p e a l . 
S o u t h e r n Homes 
f i l e d a 
7 
1080270 
S t a n d a r d o f R e v i e w 
I n 
H o l i d a y 
I s l e , 
LLC v. A d k i n s , 
12 So. 3d 1173 ( A l a . 
2 0 0 8 ) , 
t h i s 
C o u r t s e t f o r t h t h e s t a n d a r d 
f o r r e v i e w i n g 
an 
o r d e r 
i s s u i n g a p r e l i m i n a r y i n j u n c t i o n : 
"We have o f t e n s t a t e d : 'The d e c i s i o n t o g r a n t o r 
t o deny a p r e l i m i n a r y i n j u n c t i o n i s w i t h i n t h e 
t r i a l 
c o u r t ' s 
s o u n d 
d i s c r e t i o n . I n 
r e v i e w i n g 
an 
o r d e r 
g r a n t i n g 
a 
p r e l i m i n a r y 
i n j u n c t i o n , 
t h e 
C o u r t 
d e t e r m i n e s 
w h e t h e r t h e 
t r i a l 
c o u r t 
e x c e e d e d 
t h a t 
d i s c r e t i o n . ' 
S o u t h T r u s t 
Bank o f A l a b a m a , N.A. 
v .  
W e b b - S t i l e s Co., 931 So. 2d 706, 709 ( A l a . 2 0 0 5 ) . 
"A p r e l i m i n a r y i n j u n c t i o n s h o u l d be i s s u e d 
o n l y 
when t h e p a r t y 
s e e k i n g an i n j u n c t i o n d e m o n s t r a t e s : 
" ' " ( 1 ) 
t h a t 
w i t h o u t 
t h e 
i n j u n c t i o n t h e 
[ p a r t y ] w o u l d 
s u f f e r 
i r r e p a r a b l e 
i n j u r y ; 
(2) t h a t t h e [ p a r t y ] h a s no a d e q u a t e remedy 
a t l a w ; (3) t h a t t h e [ p a r t y ] h a s a t l e a s t 
a 
r e a s o n a b l e 
c h a n c e 
o f 
s u c c e s s 
on t h e 
u l t i m a t e 
m e r i t s o f h i s c a s e ; and (4) t h a t 
t h e h a r d s h i p 
i m p o s e d on t h e [ p a r t y o p p o s i n g 
t h e 
p r e l i m i n a r y 
i n j u n c t i o n ] 
b y 
t h e 
i n j u n c t i o n w o u l d n o t u n r e a s o n a b l y o u t w e i g h 
t h e b e n e f i t a c c r u i n g t o t h e [ p a r t y 
s e e k i n g 
t h e i n j u n c t i o n ] . " ' 
"'Ormco C o r p . v. J o h n s , 869 So. 2d 1109, 1113 
( A l a . 
2003) 
( q u o t i n g 
P e r l e y v . T a p s c a n , I n c . , 
646 So. 2d 
585, 
587 
( A l a . 1 9 9 4 ) ) . 
m o t i o n i n t h i s C o u r t t o o v e r t u r n , 
i n p a r t , t h e o r d e r o f t h e 
c i r c u i t 
c o u r t 
s t r i k i n g d o c u m e n t s f r o m t h e r e c o r d on 
a p p e a l . 
On A p r i l 29, 2009, t h i s C o u r t i s s u e d an o r d e r d e n y i n g S o u t h e r n 
Homes' m o t i o n t o o v e r t u r n , i n p a r t , t h e o r d e r o f t h e c i r c u i t 
c o u r t 
s t r i k i n g d o c u m e n t s f r o m t h e r e c o r d on 
a p p e a l . 
8 
1080270 
"To t h e e x t e n t 
t h a t t h e t r i a l 
c o u r t ' s 
i s s u a n c e 
o f 
a 
p r e l i m i n a r y 
i n j u n c t i o n i s g r o u n d e d 
o n l y i n 
q u e s t i o n s 
o f l a w b a s e d 
on u n d i s p u t e d 
f a c t s , o u r 
l o n g s t a n d i n g 
r u l e 
t h a t 
we 
r e v i e w 
an 
i n j u n c t i o n 
s o l e l y t o d e t e r m i n e w h e t h e r t h e t r i a l c o u r t e x c e e d e d 
i t s 
d i s c r e t i o n s h o u l d 
n o t a p p l y . 
We 
f i n d t h e r u l e 
a p p l i e d b y t h e U n i t e d 
S t a t e Supreme C o u r t i n s i m i l a r 
s i t u a t i o n s t o be p e r s u a s i v e : 'We r e v i e w t h e D i s t r i c t 
C o u r t ' s 
l e g a l 
r u l i n g s 
d e novo 
and i t s u l t i m a t e 
d e c i s i o n 
t o i s s u e 
t h e p r e l i m i n a r y 
i n j u n c t i o n f o r 
a b u s e o f d i s c r e t i o n . ' G o n z a l e s v . O C e n t r o 
E s p i r i t a  
B e n e f i c e n t e 
U n i a o do V e g e t a l , 546 U.S. 418, 428, 126 
S. C t . 1 2 1 1 , 163 L. E d . 2d 1017 
( 2 0 0 6 ) ; s e e a l s o 
J u s t i c e M u r d o c k ' s 
s p e c i a l w r i t i n g w h i l e 
s i t t i n g as 
a j u d g e on t h e C o u r t o f C i v i l 
A p p e a l s i n C i t y o f  
D o t h a n v. E i g h t y - F o u r 
West, I n c . , 
871 So. 2d 54, 60 
( A l a . 
C i v . App. 
2003) 
( M u r d o c k , 
J . , 
c o n c u r r i n g 
s p e c i a l l y on a p p l i c a t i o n f o r r e h e a r i n g ) 
( c i t e d 
w i t h 
a p p r o v a l 
i n M c G l a t h e r y v. R i c h a r d s o n , 
944 So. 2d 
968, 
970 ( A l a . C i v . 
App. 2 0 0 6 ) ) . " 
12 So. 3d a t 1175-76. 
D i s c u s s i o n 
S o u t h e r n 
Homes 
a r g u e s , 
among 
o t h e r 
t h i n g s , 
t h a t i t 
r e c e i v e d i n s u f f i c i e n t n o t i c e u n d e r R u l e 6 5 ( a ) ( 1 ) , A l a . R. 
C i v . 
P., o f t h e h e a r i n g 
on Bermuda's 
m o t i o n f o r a 
p r e l i m i n a r y 
i n j u n c t i o n , 
i n 
v i o l a t i o n 
o f 
S o u t h e r n 
Homes' 
d u e - p r o c e s s 
r i g h t s . 
We 
a g r e e . 
R u l e 
6 5 ( a ) ( 1 ) , 
A l a . R. C i v . P., 
p r o v i d e s 
t h a t " [ n ] o 
p r e l i m i n a r y 
i n j u n c t i o n s h a l l be i s s u e d w i t h o u t n o t i c e t o t h e 
a d v e r s e 
p a r t y . " 
R u l e 
6 5 ( a ) ( 1 ) 
does n o t s p e c i f y how much 
n o t i c e must be g i v e n t o t h e a d v e r s e p a r t y b e f o r e a p r e l i m i n a r y 
9 
1080270 
i n j u n c t i o n 
c a n be 
i s s u e d . 
However, 
as t h e U n i t e d 
S t a t e s 
Supreme C o u r t has h e l d i n i n t e r p r e t i n g t h e f e d e r a l e q u i v a l e n t 
o f R u l e 6 5 ( a ) ,
2 t h e n o t i c e r e q u i r e d b y R u l e 6 5 ( a ) " i m p l i e s a 
h e a r i n g i n w h i c h t h e d e f e n d a n t i s g i v e n a f a i r o p p o r t u n i t y t o 
o p p o s e t h e a p p l i c a t i o n and t o p r e p a r e f o r s u c h 
o p p o s i t i o n . " 
G r a n n y Goose F o o d s , I n c . v. B r o t h e r h o o d o f T e a m s t e r s & A u t o  
T r u c k D r i v e r s L o c a l No. 70 o f A l a m e d a C o u n t y , 415 U.S. 423, 
434 n.7 
( 1 9 7 4 ) . See a l s o A l a b a m a R e p u b l i c a n 
P a r t y v . M c G i n l e y , 
893 So. 2d 337, 344 ( A l a . 2004) ( h o l d i n g t h a t " [ t ] h e 
h a l l m a r k s 
o f p r o c e d u r a l due p r o c e s s 
a r e n o t i c e and ' t h e o p p o r t u n i t y t o 
be h e a r d " a t a m e a n i n g f u l t i m e and i n a m e a n i n g f u l manner."'" 
( q u o t i n g 
Mathews 
v. 
E l d r i d g e , 
424 
U.S. 
319, 
333 
( 1 9 7 6 ) , 
q u o t i n g 
i n 
t u r n 
A r m s t r o n g 
v . 
Manzo, 
380 
U.S. 
545, 
552 
( 1 9 6 5 ) ) ) . 
I n G r a n n y Goose F o o d s , t h e a d v e r s e p a r t y was g i v e n 
n o t i c e 
by 
t e l e p h o n e 
on t h e same day i t was 
s e r v e d 
w i t h 
a l l 
t h e 
d o c u m e n t s and t h e h e a r i n g was h e l d , and t h e a d v e r s e 
p a r t y ' s 
c o u n s e l was p r e s e n t 
i n t h e c o u r t r o o m and a r g u e d on b e h a l f o f 
t h e a d v e r s e p a r t y a t t h a t h e a r i n g . 
The U n i t e d S t a t e s 
Supreme 
2 R u l e 
6 5 ( a ) ( 1 ) , 
F e d . R. C i v . P., 
p r o v i d e s 
t h a t 
" [ t ] h e 
c o u r t may i s s u e a p r e l i m i n a r y i n j u n c t i o n o n l y on n o t i c e t o t h e 
a d v e r s e 
p a r t y . " 
10 
1080270 
C o u r t r e c o g n i z e d 
t h a t R u l e 6 5 ( b ) , 
F e d . 
R. 
C i v . 
P., 
l i k e 
R u l e 
6 5 ( b ) , 
A l a . R. 
C i v . 
P., 
a u t h o r i z e s 
a 
t r i a l 
c o u r t 
t o 
i s s u e 
a 
1 0 - d a y t e m p o r a r y r e s t r a i n i n g o r d e r 
("TRO") w i t h o u t n o t i c e 
t o 
t h e 
a d v e r s e 
p a r t y . 
The 
C o u r t 
c o m p a r e d 
t h e 
l a c k 
o f 
any 
r e q u i r e m e n t 
o f 
n o t i c e 
i n 
R u l e 
65(b) 
f o r 
a 
TRO 
w i t h 
t h e 
e x p l i c i t 
n o t i c e 
r e q u i r e m e n t 
f o r 
i s s u i n g 
a 
p r e l i m i n a r y 
i n j u n c t i o n u n d e r R u l e 6 5 ( a ) , 
Fed. 
R. 
C i v . P. 
The 
C o u r t 
h e l d 
t h a t t h e 
" i n f o r m a l , same-day n o t i c e " t h a t was 
p r o v i d e d 
t o 
t h e 
a d v e r s e p a r t y i n G r a n n y Goose F o o d s , " d e s i r a b l e t h o u g h i t 
may 
be b e f o r e 
a r e s t r a i n i n g o r d e r 
i s i s s u e d , 
i s no 
s u b s t i t u t e f o r 
t h e more t h o r o u g h n o t i c e r e q u i r e m e n t s w h i c h must be 
s a t i s f i e d 
t o 
o b t a i n 
a p r e l i m i n a r y 
i n j u n c t i o n o f 
p o t e n t i a l l y 
u n l i m i t e d 
d u r a t i o n . " 
415 
U.S. 
a t 
434 
n.7. 
See 
a l s o 
C i e n a 
C o r p . 
v. 
J a r r a r d , 
203 
F.3d 
312, 
319 
( 4 t h 
C i r . 2000 
) ( h o l d i n g 
t h a t 
" [ b ] e c a u s e a p r e l i m i n a r y i n j u n c t i o n i s u n l i m i t e d i n 
d u r a t i o n , 
i t s 
e n t r y 
a l w a y s 
r e q u i r e s 
n o t i c e 
t o 
t h e 
o p p o s i n g 
p a r t y 
s u f f i c i e n t 
t o 
g i v e 
t h a t 
p a r t y 
an 
o p p o r t u n i t y 
t o p r e p a r e 
an 
o p p o s i t i o n 
t o e n t r y 
o f an i n j u n c t i o n " ) . 
I n t h e p r e s e n t c a s e , i t i s u n d i s p u t e d t h a t S o u t h e r n Homes 
had 
l e s s t h a n 
two 
h o u r s ' 
n o t i c e 
o f 
t h e 
h e a r i n g 
on 
Bermuda's 
m o t i o n f o r a p r e l i m i n a r y 
i n j u n c t i o n and 
t h a t S o u t h e r n Homes' 
11 
1080270 
c o u n s e l 
p a r t i c i p a t e d 
i n t h e h e a r i n g 
o n l y 
by 
t e l e p h o n e . 
S o u t h e r n Homes was n o t a b l e t o s u b m i t 
w r i t t e n 
a r g u m e n t s i n 
o p p o s i t i o n t o t h e m o t i o n o r t o s u b m i t e v i d e n c e t o s u p p o r t i t s 
a r g u m e n t s . 
A l s o , 
u n d e r 
t h e c i r c u m s t a n c e s , S o u t h e r n 
Homes 
c o u l d n o t c a l l any w i t n e s s e s . 
Bermuda's p r i m a r y r e s p o n s e t o S o u t h e r n Homes' a r g u m e n t 
c o n c e r n i n g 
i n a d e q u a t e 
n o t i c e 
i s t h a t 
" S o u t h e r n 
Homes i s 
r e s p o n s i b l e f o r any a l l e g e d due p r o c e s s d e f i c i e n c i e s " 
b e c a u s e , 
Bermuda s a y s , " [ S o u t h e r n Homes'] own a t t e m p t s t o e x p e d i t e i t s 
own 
h e a r i n g i n L o u i s i a n a 
... l e d t o t h e s h o r t e r 
n o t i c e i t 
r e c e i v e d o f t h e November 6 h e a r i n g i n A l a b a m a . " 
Bermuda's 
b r i e f , 
a t 34, 36. 
However, 
what 
was 
h a p p e n i n g 
i n t h e 
L o u i s i a n a a c t i o n d o e s n o t a l l e v i a t e t h e n o t i c e r e q u i r e m e n t s o f 
R u l e 6 5 ( a ) ( 1 ) , A l a . R. C i v . P., i n 
t h e 
A l a b a m a a c t i o n . 
I n 
t h e 
p r e s e n t 
c a s e , 
b e f o r e 
a 
p r e l i m i n a r y 
i n j u n c t i o n 
w i t h i t s 
u n l i m i t e d d u r a t i o n c o u l d be i s s u e d , S o u t h e r n Homes h a d t o be 
g i v e n 
n o t i c e 
o f a h e a r i n g i n w h i c h 
i t was 
g i v e n a 
f a i r 
o p p o r t u n i t y 
t o 
o p p o s e 
t h e 
m o t i o n 
f o r t h e 
p r e l i m i n a r y 
i n j u n c t i o n a n d t o p r e p a r e f o r s u c h o p p o s i t i o n . 
S o u t h e r n Homes 
s i m p l y was n o t g i v e n s u c h 
n o t i c e . 
T h e r e f o r e , u n d e r 
t h e s e 
c i r c u m s t a n c e s , we c o n c l u d e t h a t S o u t h e r n Homes d i d 
n o t have a 
12 
1080270 
f a i r 
o p p o r t u n i t y 
t o o p p o s e 
t h e m o t i o n 
f o r a 
p r e l i m i n a r y 
i n j u n c t i o n , 
a n d , 
t h u s , 
t h e 
c i r c u i t 
c o u r t 
e x c e e d e d i t s 
d i s c r e t i o n i n i s s u i n g t h e p r e l i m i n a r y 
i n j u n c t i o n . 
C o n c l u s i o n 
B a s e d on t h e f o r e g o i n g , we r e v e r s e t h e M a d i s o n 
C i r c u i t 
C o u r t ' s 
j u d g m e n t 
and 
remand 
t h i s 
c a s e 
f o r p r o c e e d i n g s 
c o n s i s t e n t w i t h 
t h i s 
o p i n i o n . 
REVERSED AND REMANDED. 
Cobb, C . J . , and L y o n s , 
W o o d a l l , 
S t u a r t , 
S m i t h , 
B o l i n , 
P a r k e r , M u r d o c k , and Shaw, J J . , c o n c u r . 
13