Case Title: Helen Kathryn Wheeler et al. v. Randall L. George et al.

Citation: 

Docket Number: 1070484

State: alabama

Court: Alabama Supreme Court

Date: 2009-12-04T00:00:00Z

Document:
REL: 12/04/2009 
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) 
2 2 9 - 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 
OCTOBER TERM, 2009-2010 
1070484 
Helen Kathryn Wheeler e t a l . 
v. 
R a n d a l l L. George e t a l . 
1070487 
Southdale, LLC 
v. 
R a n d a l l L. George e t a l . 
1070514 
Todd Strange 
v. 
Helen Kathryn Wheeler e t a l . 
Appeals from Montgomery C i r c u i t 
Court 
(CV-04-1434) 
On A p p l i c a t i o n s f o r R e h e a r i n g 
LYONS, J u s t i c e . 
The 
o p i n i o n 
o f J u l y 17, 2009, i s w i t h d r a w n , a n d t h e 
f o l l o w i n g i s s u b s t i t u t e d 
t h e r e f o r . 
H e l e n 
K a t h r y n W h e e l e r a n d W i l l i a m Newton 
P h i l l i p s , 
as 
t r u s t e e u n d e r t h e D o r i s R.H. P h i l l i p s 
R e v o c a b l e L i v i n g 
T r u s t 
A g r e e m e n t d a t e d F e b r u a r y 2 1 , 2001 ( " W h e e l e r / P h i l l i p s " ) , a n d 
S o u t h d a l e , L L C , 
t h e p l a i n t i f f s i n 
t h e t r i a l c o u r t , a p p e a l f r o m 
summary j u d g m e n t s e n t e r e d 
i n f a v o r o f a l l 
t h e a p p e l l e e s i n 
c a s e no. 1070484 a n d c a s e no. 1 0 7 0 4 8 7 , t h e d e f e n d a n t s i n t h e 
t r i a l 
c o u r t . 
Those a p p e l l e e s a r e t h e I n d u s t r i a l D e v e l o p m e n t 
B o a r d 
o f t h e C i t y o f M o n t g o m e r y 
("the I D B " ) ; 
Reuben 
F. 
T h o r n t o n , J r . , i n d i v i d u a l l y a n d as c h a i r m a n o f t h e IDB; 
t h e 
C i t y o f M o n t g o m e r y ("the 
C i t y " ) ; Bobby N. B r i g h t , 
i n d i v i d u a l l y 
and as mayor o f t h e C i t y ;
1 M o n t g o m e r y C o u n t y ("the C o u n t y " ) ; 
1 B o b b y N. B r i g h t i s no l o n g e r 
t h e mayor o f t h e C i t y . 
P u r s u a n t t o R u l e 2 5 ( d ) , A l a . 
R. C i v . P., h i s s u c c e s s o r , 
Todd 
S t r a n g e , 
i s a u t o m a t i c a l l y 
s u b s t i t u t e d 
as a 
p a r t y 
i n 
h i s 
2 
1070484; 
1070487; 
1070514 
t h e 
M o n t g o m e r y C o u n t y C o m m i s s i o n 
("the C o u n t y 
C o m m i s s i o n " ) ; 
W i l l i a m F. J o s e p h , J r . , i n d i v i d u a l l y 
and as c h a i r m a n o f t h e 
C o u n t y C o m m i s s i o n ; 
t h e A l a b a m a 
I n c e n t i v e s F i n a n c e 
A u t h o r i t y 
("the 
A I F A " ) ; 
Don 
S i e g e l m a n , 
i n d i v i d u a l l y 
and 
as 
f o r m e r 
p r e s i d e n t o f t h e A I F A ;
2 H e n r y C. M a b r y 
I I I , i n d i v i d u a l l y 
and 
as f o r m e r s e c r e t a r y o f t h e A I F A ;
3 CSX 
T r a n s p o r t a t i o n , I n c . , 
and CSX 
R e a l 
P r o p e r t y , 
I n c . ("CSX"); D a v i d W. 
H e m p h i l l , 
an 
a s s i s t a n t 
v i c e 
p r e s i d e n t 
o f CSX 
T r a n s p o r t a t i o n ; 
J . 
R a n d a l l 
E v a n s , a v i c e p r e s i d e n t o f CSX T r a n s p o r t a t i o n ; H y u n d a i 
M o t o r 
M a n u f a c t u r i n g 
A l a b a m a , 
LLC, 
and 
H y u n d a i 
M o t o r 
A m e r i c a 
( " H y u n d a i " ) ;
4 
and 
Todd 
S t r a n g e , 
i n d i v i d u a l l y 
and 
i n h i s 
o f f i c i a l 
c a p a c i t y 
as 
mayor. 
S t r a n g e 
was 
a l s o 
s u e d 
i n d i v i d u a l l y . 
2 I n 
h i s 
p o s i t i o n 
as 
g o v e r n o r , 
S i e g e l m a n 
s e r v e d 
as 
p r e s i d e n t 
o f t h e A I F A . 
See § 41-10-540 e t s e q . , A l a . Code 
1975. 
3 I n h i s p o s i t i o n as f i n a n c e d i r e c t o r d u r i n g t h e n G o v e r n o r 
S i e g e l m a n ' s t e r m , M a b r y s e r v e d as s e c r e t a r y o f t h e A I F A . 
See 
§ 41-10-540 e t s e q . , A l a . Code 
1975. 
4 H y u n d a i M o t o r A m e r i c a i s a w h o l l y owned 
s u b s i d i a r y 
o f 
H y u n d a i 
M o t o r 
Company 
and 
o p e r a t e s as 
i t s U n i t e d 
S t a t e s 
d i v i s i o n . 
H y u n d a i M o t o r M a n u f a c t u r i n g A l a b a m a , 
L L C , i s a l s o 
a w h o l l y owned 
s u b s i d i a r y 
o f H y u n d a i M o t o r Company and 
was 
d e s i g n a t e d 
t o 
own 
and 
o p e r a t e 
t h e 
A l a b a m a 
a u t o m o b i l e -
m a n u f a c t u r i n g 
p l a n t . 
3 
1070484; 1070487; 1070514 
o f f i c i a l 
c a p a c i t y 
as 
t h e 
c u r r e n t 
mayor 
o f t h e 
C i t y .
5 
The 
a p p e l l e e s 
w i l l 
h e r e i n a f t e r 
s o m e t i m e s 
be 
r e f e r r e d 
t o 
c o l l e c t i v e l y 
as 
" t h e p r o j e c t 
p a r t i c i p a n t s . " 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a l s o 
s u e d 
t h e M o n t g o m e r y A r e a 
Chamber 
o f 
Commerce ("the MACOC"); R a n d a l l L. G e o r g e , 
i n d i v i d u a l l y and as 
p r e s i d e n t o f t h e MACOC; and D a v i d E c h o l s , a f o r m e r e m p l o y e e o f 
t h e 
A l a b a m a D e v e l o p m e n t 
O f f i c e 
("the ADO"), b u t 
t h e y 
were 
d i s m i s s e d by s t i p u l a t i o n and a r e n o t a p p e l l e e s . 
I n c a s e 
no. 
1070514, S t r a n g e 
c r o s s - a p p e a l s 
f r o m t h e 
t r i a l 
c o u r t ' s 
o r d e r 
d e n y i n g h i s m o t i o n t o d i s m i s s . 
I n c a s e no. 1070484 and 
c a s e 
no. 1070487, we 
a f f i r m i n p a r t , r e v e r s e 
i n p a r t , and remand; 
i n c a s e no. 1070514, we 
a f f i r m . 
I . 
F a c t u a l B a c k g r o u n d 
and P r o c e d u r a l 
H i s t o r y 
I n 
J u n e 
2 0 0 1 , 
a 
r e p r e s e n t a t i v e 
o f 
H y u n d a i , 
a 
K o r e a n 
a u t o m o b i l e m a n u f a c t u r e r , 
c o n t a c t e d 
E c h o l s , 
who 
a t t h a t 
t i m e 
w o r k e d f o r t h e ADO, 
e x p r e s s i n g H y u n d a i ' s 
i n t e r e s t i n l o c a t i n g 
an 
a u t o m o b i l e - a s s e m b l y 
p l a n t 
i n 
t h e 
U n i t e d 
S t a t e s 
and 
r e q u e s t i n g 
i n f o r m a t i o n 
r e g a r d i n g 
i n c e n t i v e s 
and 
a v a i l a b l e 
l o c a t i o n s 
i n 
A l a b a m a 
t h a t 
c o u l d 
accommodate 
a 
l a r g e 
a u t o m o b i l e - m a n u f a c t u r i n g f a c i l i t y . 
H y u n d a i was c o n s i d e r i n g a t 
5 S e e n o t e 
1. 
4 
1070484; 
1070487; 
1070514 
l e a s t two s i t e s i n A l a b a m a - - M o n t g o m e r y and O p e l i k a - - a s w e l l as 
s i t e s i n s e v e r a l o t h e r s t a t e s , i n c l u d i n g K e n t u c k y . 
H y u n d a i ' s 
i d e n t i t y was k e p t s e c r e t 
d u r i n g t h e i n i t i a l 
n e g o t i a t i o n s . 
I n 
S e p t e m b e r 2 0 0 1 , 
o f f i c i a l s f r o m t h e C i t y , t h e IDB, t h e C o u n t y 
C o m m i s s i o n , and t h e MACOC b e g a n m a k i n g p r e p a r a t i o n s 
t o s e c u r e 
o p t i o n s 
t o p u r c h a s e p r o p e r t y 
i n t h e M o n t g o m e r y 
a r e a 
i n an 
e f f o r t 
t o 
c r e a t e 
an 
i n c e n t i v e 
p a c k a g e 
t h e y 
h o p e d 
w o u l d 
p e r s u a d e 
H y u n d a i 
t o 
l o c a t e 
i t s p l a n t 
n e a r M o n t g o m e r y . 
A 
s i g n i f i c a n t p a r c e l o f l a n d was an e s s e n t i a l component o f any 
i n c e n t i v e p a c k a g e . 
B.M. 
Ahn, 
t h e H y u n d a i 
r e p r e s e n t a t i v e 
i n 
c h a r g e 
o f t h e 
s i t e 
s e l e c t i o n f o r t h e U n i t e d 
S t a t e s 
p l a n t , 
t e s t i f i e d d u r i n g h i s d e p o s i t i o n 
t h a t a c r i t i c a l e l e m e n t o f an 
i n c e n t i v e p a c k a g e 
o f f e r e d t o an a u t o m o b i l e m a n u f a c t u r e r was 
" f r e e 
l a n d " 
on w h i c h t o l o c a t e 
i t s p l a n t . 
Ahn 
a l s o 
s t a t e d 
t h a t H y u n d a i h a d no r o l e i n a c q u i r i n g t h e l a n d and t h a t 
l a n d 
a c q u i s i t i o n f o r an i n c e n t i v e p a c k a g e was t h e r e s p o n s i b i l i t y 
o f 
t h e 
c i t y o r t h e s t a t e p u t t i n g t h e p a c k a g e t o g e t h e r . 
O f f i c i a l s 
o f 
t h e 
C i t y , 
t h e C o u n t y 
C o m m i s s i o n , 
and 
t h e IDB 
s i g n e d 
a 
l e t t e r o f i n t e n t s t a t i n g t h a t t h e y , " i n p a r t n e r s h i p 
w i t h 
t h e 
S t a t e , " w o u l d commit t o p r o v i d e 
an i n d u s t r i a l 
s i t e a t no 
c o s t 
t o H y u n d a i . 
J o s e p h , as c h a i r m a n o f t h e C o u n t y C o m m i s s i o n , 
was 
5 
1070484; 1070487; 1070514 
r e s p o n s i b l e f o r c o o r d i n a t i n g w i t h C i t y and C o u n t y o f f i c i a l s 
t o 
d e v e l o p t h e 
i n c e n t i v e p a c k a g e o f f e r e d t o H y u n d a i . 
The 
C i t y 
was 
t o p r o v i d e 
62.5% 
o f 
t h e 
f u n d s t o 
p u r c h a s e 
t h e p r o p e r t y ; 
t h e C o u n t y was 
t o p r o v i d e 
37.5% 
o f t h o s e 
f u n d s . 
However, t h e o p t i o n a g r e e m e n t s on t h e p a r c e l s o f p r o p e r t y 
t h a t 
w o u l d 
be 
i n c l u d e d 
i n 
t h e 
p r o p o s e d H y u n d a i 
p l a n t 
s i t e 
were 
a c q u i r e d 
by 
t h e 
IDB. 
T h o r n t o n 
t e s t i f i e d 
t h a t 
t h e 
IDB's 
p r i m a r y r o l e i n i n d u s t r i a l p r o j e c t s i s t o " s e r v e 
as t h e 
e n t i t y 
t h r o u g h w h i c h m o n i e s 
f l o w 
f o r t h e 
p u r c h a s e 
o f 
l a n d 
f o r 
t h e 
u l t i m a t e use 
i n i n d u s t r y . " 
He 
f u r t h e r s t a t e d t h a t t h e 
IDB 
i s 
i n v o l v e d i n s u c h a p r o c e s s 
" t o c o m p l y w i t h 
s t a t e and 
f e d e r a l 
t a x 
l a w s 
f o r 
t h e 
t a x 
b r e a k s 
and 
o t h e r 
i n c e n t i v e s 
t o 
t h e 
i n d u s t r y . " 
O v e r 
t h e 
c o u r s e 
o f 
s e v e r a l 
m o n t h s , 
t h e 
IDB 
s e c u r e d 
o p t i o n s 
on 
s i x p a r c e l s 
o f p r o p e r t y 
f o r t h e 
i n d u s t r i a l 
s i t e . 
A t 
t h a t t i m e , 
t h e 
IDB 
d i d n o t 
d i s c l o s e H y u n d a i ' s 
i d e n t i t y 
t o 
t h e 
l a n d o w n e r s . 
N e i t h e r 
W h e e l e r 
n o r 
P h i l l i p s 
r e s i d e d 
i n 
A l a b a m a ; 
t h e y 
r e t a i n e d 
J e s s e 
W i l l i a m s , 
a 
l a w y e r 
w i t h 
t h e 
M o n t g o m e r y l a w 
f i r m o f R u s h t o n , S t a k e l y , J o h n s t o n & 
G a r r e t t , 
P.A., 
t o 
r e p r e s e n t 
t h e i r 
i n t e r e s t s . 
I n 
S e p t e m b e r 
2 0 0 1 , 
T h o r n t o n , 
i n h i s 
c a p a c i t y 
as 
c h a i r m a n 
o f 
t h e 
IDB, 
e x e c u t e d 
o p t i o n a g r e e m e n t s 
on 
b e h a l f 
o f 
t h e 
IDB 
f o r f o u r 
o f 
t h e 
s i x 
6 
1070484; 1070487; 1070514 
p a r c e l s . 
The 
IDB 
a g r e e d t o p u r c h a s e 
a p p r o x i m a t e l y 320 
a c r e s 
f r o m S o u t h d a l e ; a p p r o x i m a t e l y 807 a c r e s f r o m W h e e l e r / P h i l l i p s ; 
a p p r o x i m a t e l y 328 
a c r e s f r o m G e o r g e E. R u s s e l l and Thomas E. 
R u s s e l l , 
as 
c o e x e c u t o r s 
and 
c o t r u s t e e s 
o f 
t h e 
w i l l 
and 
t e s t a m e n t a r y 
t r u s t o f E a r n e s t W. 
R u s s e l l , 
and M y r t i s R u s s e l l 
( " t h e 
R u s s e l l s " ) ; 
and 
a p p r o x i m a t e l y 
40 
a c r e s 
f r o m 
J o h n 
C. 
P a r k e r 
and 
E u g e n i a 
M. 
P a r k e r 
( " t h e 
P a r k e r s " ) . 
These 
a g r e e m e n t s p r o v i d e d f o r an o p t i o n p e r i o d o f 120 d a y s , and 
e a c h 
s t a t e d : 
"3. I f P u r c h a s e r e l e c t s t o e x e r c i s e t h i s 
O p t i o n 
t h e 
p u r c h a s e 
p r i c e 
f o r 
t h e 
P r o p e r t y 
s h a l l 
be 
d e t e r m i n e d 
as 
f o l l o w s : 
" S e l l e r 
and 
P u r c h a s e r 
s h a l l 
e a c h , 
a t 
i t s 
own 
c o s t and e x p e n s e , s e c u r e a c u r r e n t a p p r a i s a l o f t h e 
P r o p e r t y . 
The 
p u r c h a s e 
p r i c e 
s h a l l 
be 
t h e 
a v e r a g e 
o f t h e two a p p r a i s a l s p r o v i d e d , h o w e v e r , i n no 
e v e n t 
s h a l l 
t h e 
p u r c h a s e 
p r i c e 
be 
l e s s 
t h a n $4,500 
p e r 
a c r e 
and 
f u r t h e r 
p r o v i d e d t h a t t h e p u r c h a s e 
p r i c e 
 
s h a l l 
i n no 
e v e n t 
be 
l e s s 
t h a n 
t h e 
p r i c e p e r 
a c r e 
 
p a i d t o any o t h e r l a n d o w n e r i n c l u d e d i n t h e 
p r o j e c t  
p l a n n e d 
f o r 
t h i s 
P r o p e r t y . 
The 
a c r e a g e 
s h a l l 
be 
d e t e r m i n e d by a g o o d and a c c u r a t e s u r v e y p r o v i d e d by 
P u r c h a s e r . 
f i 
"16. 
T h i s 
O p t i o n 
c o n s t i t u t e s 
t h e 
e n t i r e 
and 
c o m p l e t e 
a g r e e m e n t b e t w e e n 
t h e 
p a r t i e s 
h e r e t o 
and 
s u p e r s e d e s 
any 
p r i o r 
o r a l 
o r 
w r i t t e n 
a g r e e m e n t s 
b e t w e e n 
t h e 
p a r t i e s 
w i t h r e s p e c t t o t h e 
P r o p e r t y . 
I t 
i s e x p r e s s l y a g r e e d 
t h a t 
t h e r e 
a r e 
no 
v e r b a l 
u n d e r s t a n d i n g s o r a g r e e m e n t s w h i c h i n any way 
c h a n g e 
t h e 
t e r m s , 
c o v e n a n t s , 
and 
c o n d i t i o n s h e r e i n 
s e t 
7 
1070484; 1070487; 1070514 
f o r t h , and t h a t no m o d i f i c a t i o n o f t h i s O p t i o n and 
no w a i v e r o f any o f i t s t e r m s and c o n d i t i o n s 
s h a l l 
be 
e f f e c t i v e 
u n l e s s 
made 
i n 
w r i t i n g 
and 
d u l y 
e x e c u t e d by t h e p a r t i e s 
h e r e t o . " 
( E m p h a s i s a d d e d . ) 
The p a r t i e s r e f e r t o t h e p r o v i s i o n i n 
t h e 
o p t i o n a g r e e m e n t s t h a t " t h e p u r c h a s e p r i c e s h a l l i n no e v e n t 
be 
l e s s t h a n t h e p r i c e p e r a c r e 
p a i d t o a n y o t h e r 
l a n d o w n e r 
i n c l u d e d i n t h e p r o j e c t p l a n n e d f o r 
t h e P r o p e r t y " as a "most-
f a v o r e d - n a t i o n 
c l a u s e . " 
The 
p u r p o s e 
o f t h e 
c l a u s e , 
as 
e x p l a i n e d b y W h e e l e r / P h i l l i p s and S o u t h d a l e , was t o e n s u r e 
t h a t 
a l l l a n d o w n e r s 
c o n v e y i n g 
p r o p e r t y 
t o be u s e d f o r 
t h e 
p r o j e c t w o u l d r e c e i v e t h e same p r i c e so t h a t no one p a r c e l o f 
l a n d w o u l d be w o r t h more t h a n any o t h e r 
p a r c e l . 
The m o s t -
f a v o r e d - n a t i o n 
c l a u s e 
a l l o w e d 
A l a b a m a 
o f f i c i a l s 
t o 
o b t a i n 
c o n t r o l o f t h e n e e d e d 
l a n d 
q u i c k l y , b e c a u s e l a n d o w n e r s who 
e x e c u t e d 
o p t i o n 
a g r e e m e n t s 
e a r l y i n t h e a c q u i s i t i o n p e r i o d 
were a s s u r e d 
t h a t t h e y w o u l d n o t r e c e i v e l e s s t h a n a l a n d o w n e r 
who m i g h t 
h o l d o u t u n t i l 
t h e d e a d l i n e 
i n o r d e r 
t o s e e k a 
h i g h e r 
p r i c e . 
O f f i c i a l s i n K e n t u c k y were h a v i n g 
d i f f i c u l t y 
s e c u r i n g t h e l a n d n e e d e d f o r t h e p r o p o s e d 
s i t e i n K e n t u c k y 
b e c a u s e some l a n d o w n e r s were n e g o t i a t i n g f o r a h i g h e r 
s a l e s 
p r i c e b y r e f u s i n g t o e x e c u t e 
o p t i o n 
a g r e e m e n t s 
b e f o r e t h e 
d e a d l i n e f o r s u b m i t t i n g t h e i n c e n t i v e p a c k a g e . 
A t t h e t i m e 
8 
1070484; 1070487; 1070514 
t h e 
o p t i o n a g r e e m e n t s were b e i n g 
e n t e r e d 
i n t o 
i n A l a b a m a , 
l a w s u i t s 
had 
a l r e a d y b e e n 
f i l e d 
i n K e n t u c k y 
c o n c e r n i n g 
t h e 
l a n d a c q u i s i t i o n f o r t h e p r o p o s e d 
s i t e t h e r e . 
I n e a r l y 2 0 0 2 , S o u t h d a l e , W h e e l e r / P h i l l i p s , t h e R u s s e l l s , 
and t h e P a r k e r s amended t h e i r o p t i o n a g r e e m e n t s t o e x t e n d t h e 
o p t i o n p e r i o d t o May 
3 1 , 2 0 0 2 . 
E a c h amended o p t i o n a g r e e m e n t 
s t a t e d : 
" 1 . I t i s h e r e b y a g r e e d t h a t t h e p u r c h a s e 
p r i c e 
f o r t h e P r o p e r t y i s F o u r T h o u s a n d F i v e H u n d r e d 
and 
No/100 
D o l l a r s 
( $ 4 , 5 0 0 . 0 0 ) p e r 
a c r e . 
The 
e x a c t 
number 
o f 
a c r e s 
t o 
be 
d e t e r m i n e d 
by 
t h e 
s u r v e y 
p r o v i d e d by 
P u r c h a s e r . 
"2. The 
o p t i o n p e r i o d i s h e r e b y e x t e n d e d 
f o r a 
p e r i o d 
o f 120 
d a y s f r o m 
t h e 
E f f e c t i v e 
Date o f 
t h e 
O p t i o n , w h i c h 
E f f e c t i v e 
D a t e 
i s O c t o b e r 
3 , 
2 0 0 1 . 
The 
e x p i r a t i o n d a t e o f t h e O p t i o n , as e x t e n d e d , i s 
now 
May 
3 1 , 2002. 
"3. E x c e p t as amended h e r e b y , t h e O p t i o n i s i n 
a l l 
o t h e r r e s p e c t s r a t i f i e d and 
c o n f i r m e d . " 
The 
amended 
o p t i o n s 
were 
e x e c u t e d 
by 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
on 
J a n u a r y 
3 1 , 
2002; 
by 
t h e 
P a r k e r s 
on 
F e b r u a r y 1 , 2002; and by t h e R u s s e l l s on F e b r u a r y 4, 2002. 
On F e b r u a r y 22 and M a r c h 8, 2 0 0 2 , r e s p e c t i v e l y , 
T h o r n t o n 
e x e c u t e d two a d d i t i o n a l o p t i o n a g r e e m e n t s on b e h a l f o f t h e 
IDB 
t o p u r c h a s e 
a p p r o x i m a t e l y 54 a c r e s f r o m P r i c e M c L e m o r e , M a r y 
H. McLemore, J o h n M c I n n i s , J r . , T i m o t h y N. M c I n n i s , C h a r l e s R. 
9 
1070484; 1070487; 1070514 
M c I n n i s , 
W i l l i a m s S. N e w e l l , a n d t h e P e o p l e s 
Bank a n d T r u s t 
Company, as t r u s t e e f o r t h e 
A d a l i n e H o o p e r T r u s t A a n d 
B 
("the 
McLemore 
g r o u p " ) , 
a n d a p p r o x i m a t e l y 
83 a c r e s 
f r o m 
P e l z e r 
Homes, I n c . The t e r m s o f t h e o p t i o n a g r e e m e n t s , e x e c u t e d i n 
e a r l y 
2 0 0 2 , 
a r e 
i d e n t i c a l 
t o t h e t e r m s 
o f t h e 
o p t i o n 
a g r e e m e n t s e x e c u t e d i n 
S e p t e m b e r 2 0 0 1 . The IDB l a t e r 
a s s i g n e d 
i t s r i g h t s u n d e r a l l 
t h e 
o p t i o n a g r e e m e n t s t o 
t h e C i t y a n d t h e 
C o u n t y . 
D u r i n g 
t h e t i m e 
i n w h i c h t h e IDB was 
a c q u i r i n g t h e 
o p t i o n s 
f r o m 
t h e 
s i x 
a b o v e - r e f e r e n c e d 
l a n d o w n e r s , 
r e p r e s e n t a t i v e s 
o f t h e MACOC 
a p p r o a c h e d 
J o y S h e l t o n , 
a 
n e i g h b o r i n g 
l a n d o w n e r , 
a b o u t 
an 
o p t i o n 
t o p u r c h a s e h e r 
p r o p e r t y ; h o w e v e r , S h e l t o n 
d e c l i n e d t o e n t e r 
i n t o an o p t i o n 
a g r e e m e n t . 
Sometime d u r i n g F e b r u a r y 2002, H y u n d a i i n q u i r e d 
o f 
C i t y a n d C o u n t y 
o f f i c i a l s 
w h e t h e r i t 
w o u l d be p o s s i b l e t o 
" s q u a r e o f f " 
t h e p r o p e r t y made a v a i l a b l e f o r 
t h e p o t e n t i a l 
p l a n t 
s i t e . 
E l l e n M c N a i r , an e m p l o y e e o f t h e 
MACOC, met w i t h 
S h e l t o n t o a s k w h e t h e r h e r p r o p e r t y was f o r 
s a l e a n d w h e t h e r 
she w o u l d a c c e p t a p u r c h a s e p r i c e o f $4,500 p e r a c r e . 
M c N a i r 
s a i d t h a t S h e l t o n was i n t e r e s t e d i n s e l l i n g b u t t h a t she w o u l d 
n o t 
s e l l f o r 
t h a t 
p r i c e . 
M c N a i r made a d d i t i o n a l 
t e l e p h o n e 
c a l l s t o S h e l t o n , b u t S h e l t o n c o n t i n u e d t o r e f u s e t o s e l l h e r 
10 
1070484; 
1070487; 
1070514 
p r o p e r t y . 
By m i d M a r c h 2002, t h e IDB d e c i d e d t h a t t h e 
S h e l t o n 
p r o p e r t y 
was 
n o t n e c e s s a r y f o r t h e 
i n c e n t i v e p a c k a g e . 
I n 
a d d i t i o n , 
o f f i c i a l s 
f o r t h e 
C i t y 
and 
t h e 
C o u n t y , 
a l r e a d y 
c o m m i t t e d 
t o 
s p e n d i n g 
$16 
m i l l i o n 
and 
$9 
m i l l i o n , 
r e s p e c t i v e l y , 
d e c i d e d 
t h a t 
t h e y 
w o u l d 
n o t 
d e s i g n a t e 
any 
a d d i t i o n a l 
f u n d s f o r t h e p u r c h a s e o f l a n d 
f o r t h e p r o p o s e d 
s i t e . 
The 
C i t y and t h e C o u n t y C o m m i s s i o n 
t h e n p r e s e n t e d an 
i n c e n t i v e 
p a c k a g e , 
i n c l u d i n g 
t h e p r o p o s e d 
p l a n t 
s i t e 
n e a r 
M o n t g o m e r y 
c o n s i s t i n g o f t h e a c r e a g e 
s u b j e c t 
t o t h e 
o p t i o n 
a g r e e m e n t s , 
t o H y u n d a i 
f o r c o n s i d e r a t i o n . 
The 
S t a t e 
a l s o 
d r a f t e d 
and 
a s s e m b l e d 
an 
i n c e n t i v e 
p a c k a g e 
t h a t 
w o u l d 
be 
o f f e r e d t o H y u n d a i i f i t c h o s e t o b u i l d i t s 
p l a n t i n A l a b a m a , 
e i t h e r i n M o n t g o m e r y o r i n O p e l i k a . 
On t h e e v e n i n g o f M a r c h 28, 2002, Ahn t e l e p h o n e d S t r a n g e , 
who 
was 
a t 
t h a t 
t i m e t h e 
d i r e c t o r o f t h e ADO. 
Ahn 
t o l d 
S t r a n g e t h a t H y u n d a i was i n t h e p r o c e s s o f d e c i d i n g w h e t h e r t o 
l o c a t e 
i t s U n i t e d 
S t a t e s 
p l a n t 
i n A l a b a m a 
o r K e n t u c k y , 
a 
d e c i s i o n i t w o u l d a n n o u n c e 
on A p r i l 
1. 
He i n f o r m e d S t r a n g e 
t h a t H y u n d a i w o u l d n e e d 
a d d i t i o n a l p r o p e r t y 
f o r t h e 
r a i l w a y 
a c c e s s H y u n d a i d e s i r e d i f M o n t g o m e r y were t o be s e l e c t e d f o r 
t h e p r o j e c t 
s i t e and t h a t i f t h e a d d i t i o n a l l a n d c o u l d n o t be 
a c q u i r e d , 
"you m i g h t l o s e t h e d e a l . " 
The a d d i t i o n a l 
p r o p e r t y 
11 
1070484; 1070487; 1070514 
H y u n d a i was 
r e q u e s t i n g 
was 
t h e 
l a n d owned by 
S h e l t o n . 
Ahn 
i n f o r m e d 
S t r a n g e t h a t he w o u l d n e e d t o know by noon t h e 
n e x t 
day w h e t h e r t h e 
a d d i t i o n a l p r o p e r t y 
c o u l d be 
a c q u i r e d . 
S t r a n g e 
met 
d u r i n g 
t h e 
l a t e 
e v e n i n g 
h o u r s 
o f M a r c h 
28 
w i t h G e o r g e , M c N a i r , E c h o l s , S t e v e Cawood (an e n g i n e e r 
w o r k i n g 
on t h e p r o j e c t ) , and Buddy M o r g a n ( c h a i r m a n o f t h e W a t e r Works 
and S a n i t a r y Sewer B o a r d o f t h e C i t y o f M o n t g o m e r y ) t o d i s c u s s 
H y u n d a i ' s r e q u e s t . 
The g r o u p a l s o c o n s u l t e d by t e l e p h o n e 
w i t h 
S c o t t A b n e y , a l a w y e r w i t h t h e B i r m i n g h a m l a w f i r m o f M a y n a r d , 
C o o p e r 
& 
G a l e , 
P.C., 
who 
had 
b e e n 
h i r e d 
t o 
a d v i s e 
t h e n 
G o v e r n o r S i e g e l m a n and t h e n F i n a n c e 
D i r e c t o r M a b r y . 
The 
g r o u p 
m e e t i n g w i t h S t r a n g e r e c o g n i z e d 
t h a t t h e 
C i t y and 
t h e 
C o u n t y 
w o u l d n o t make any a d d i t i o n a l f u n d s a v a i l a b l e f o r t h e p u r c h a s e 
o f 
l a n d and 
t h a t 
t h e 
s i x o p t i o n a g r e e m e n t s a l r e a d y 
a c q u i r e d 
c o n t a i n e d m o s t - f a v o r e d - n a t i o n 
c l a u s e s . 
G e o r g e t e s t i f i e d 
t h a t 
t h e m o s t - f a v o r e d - n a t i o n 
c l a u s e was 
d i s c u s s e d . 
"But 
t h a t 
e v e n i n g 
on 
t h e 
2 8 t h , 
i t 
w a s - - i t 
was 
m e n t i o n e d i n t h e c o n t e x t t h a t i f we 
as l o c a l s b o u g h t 
i t , 
i t c o u l d b e - - i t 
c o u l d be 
a p r o b l e m . " 
S t r a n g e 
t e s t i f i e d 
t h a t he 
l e a r n e d o f t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
d u r i n g 
t h a t 
m e e t i n g . 
The 
g r o u p 
d i s c u s s e d 
w h e t h e r 
h a v i n g 
CSX 
p u r c h a s e t h e 
l a n d w o u l d t r i g g e r t h e 
m o s t - f a v o r e d -
12 
1070484; 1070487; 1070514 
n a t i o n c l a u s e , o r w h e t h e r a p u r c h a s e b y CSX w o u l d be 
s e p a r a t e 
f r o m t h e o t h e r o p t i o n s . 
S t r a n g e 
t e s t i f i e d : 
" I t was o u r u n d e r s t a n d i n g t h a t i f CSX w o u l d 
p u r c h a s e 
t h e p r o p e r t y , t h a t t h e y w o u l d n o t be a p a r t y t o t h e 
o r i g i n a l p u r c h a s e 
and t h e r e f o r e i t w o u l d be o u t s i d e 
t h a t a g r e e m e n t . " 
S t r a n g e 
l e f t t h e m e e t i n g and t e l e p h o n e d a r e p r e s e n t a t i v e 
o f CSX t o d i s c u s s w h e t h e r CSX w o u l d be w i l l i n g t o p u r c h a s e 
t h e 
a d d i t i o n a l p r o p e r t y b e c a u s e Ahn 
had 
s t a t e d t h a t t h e p r o p e r t y 
w o u l d be n e c e s s a r y f o r r a i l w a y s e r v i c e . 
CSX's r e p r e s e n t a t i v e 
i n 
B i r m i n g h a m , 
J o h n 
S a n f o r d , 
a d v i s e d 
S t r a n g e 
t o 
c o n t a c t 
H e m p h i l l , an a s s i s t a n t v i c e p r e s i d e n t i n CSX's I n d u s t r i a l 
and 
E c o n o m i c D e v e l o p m e n t D e p a r t m e n t . 
B e c a u s e 
H e m p h i l l was 
n o t 
a v a i l a b l e when S t r a n g e p l a c e d h i s t e l e p h o n e c a l l , S t r a n g e 
l e f t 
a message and t h e n t e l e p h o n e d H e m p h i l l ' s s u p e r i o r , E v a n s , 
t h e 
v i c e p r e s i d e n t f o r CSX i n c h a r g e o f r e a l - e s t a t e and 
i n d u s t r i a l 
d e v e l o p m e n t . 
A c c o r d i n g 
t o 
E v a n s , 
S t r a n g e 
t o l d 
h i m 
t h a t 
H y u n d a i 
had 
made 
a 
l a s t - m i n u t e 
c h a n g e 
i n 
t h e 
r a i l 
c o n f i g u r a t i o n 
and 
a s k e d 
h i m w h e t h e r 
CSX 
c o u l d p u r c h a s e 
t h e 
a d d i t i o n a l p r o p e r t y r e q u i r e d i f t h e S t a t e r e i m b u r s e d CSX 
f o r 
t h e amount o f t h e p u r c h a s e . 
E v a n s t e s t i f i e d t h a t he d i d n o t 
q u e s t i o n why 
S t r a n g e w a n t e d CSX 
t o p u r c h a s e 
t h e p r o p e r t y i f 
CSX were g o i n g t o be r e i m b u r s e d by t h e S t a t e f o r t h e 
p u r c h a s e 
13 
1070484; 1070487; 1070514 
and 
t h a t h i s o n l y c o n c e r n 
a t t h e t i m e was 
e n s u r i n g t h a t 
CSX 
w o u l d 
be 
r e i m b u r s e d 
i f i t p a r t i c i p a t e d 
i n 
t h e 
p u r c h a s e . 
G e o r g e t e s t i f i e d t h a t S t r a n g e t h e n r e t u r n e d t o t h e m e e t i n g 
and 
a n n o u n c e d 
t o 
t h o s e 
p r e s e n t , 
" i t ' s h a n d l e d " 
and 
"CSX 
w o u l d 
accommodate o u r n e e d . " 
S t r a n g e 
t h e n t e l e p h o n e d Ahn 
i n K o r e a 
and 
t o l d h i m t h a t o b t a i n i n g t h e a d d i t i o n a l l a n d n e c e s s a r y 
t o 
accommodate 
H y u n d a i 
" a p p e a r e d 
t h a t 
i t w o u l d 
be 
a 
d o a b l e 
s i t u a t i o n . " 
L a t e r i n t h e e v e n i n g , a f t e r s p e a k i n g w i t h S a n f o r d 
and 
E v a n s , 
H e m p h i l l 
r e t u r n e d 
S t r a n g e ' s 
t e l e p h o n e 
c a l l , 
and 
t h e y had a f u r t h e r d i s c u s s i o n r e g a r d i n g CSX's p u r c h a s e 
o f t h e 
a d d i t i o n a l 
l a n d . 
On M a r c h 29, 2002, H e m p h i l l s e n t t h e f o l l o w i n g e - m a i l 
t o 
E c h o l s : 
" R e g a r d i n g 
t h e [ S h e l t o n p r o p e r t y ] t h a t w i l l n e e d t o 
be p u r c h a s e d , 
you 
a s k e d 
i f CSX 
w o u l d be 
w i l l i n g 
t o 
buy 
t h i s 
p r o p e r t y 
f o r t h e 
S t a t e and M o n t g o m e r y 
a t 
a p p r o x i m a t e l y 
$8,000.00 
an 
a c r e . 
T h e r e 
i s 
no 
c o n t r a c t o r o p t i o n on t h e p r o p e r t y c u r r e n t l y and 
you 
e s t i m a t e 
i t w i l l 
c o s t us 
a p p r o x i m a t e l y 
$750,000.00 
w h i c h 
you 
a r e 
w i l l i n g 
t o 
r e f u n d 
t o 
us 
i n 
some 
f a s h i o n d u r i n g t h e t r a c k c o n s t r u c t i o n p h a s e . 
Randy 
E v a n s , 
i n p r i n c i p l e 
a g r e e d 
t o 
t h i s 
and 
I a s k 
t h a t 
you f a x us a l e t t e r 
o u t l i n i n g e x a c t l y what you h a v e 
i n m i n d . 
The 
p u r p o s e 
o f d o i n g 
i t t h i s 
way 
r a t h e r 
t h a n what you 
d i d i n g e t t i n g 
c o n t r o l 
o f t h e 
o t h e r 
1600 
a c r e s i s t o a v o i d p a y i n g 
t h e o t h e r 
l a n d o w n e r s 
$8,000.00 an a c r e w h i c h w o u l d h a v e a n e g a t i v e 
i m p a c t 
o f 
$10,000,000.00 on 
t h e 
s i t e 
c o s t . 
The 
r a i l r o a d 
d o e s n o t 
g e t g o o d l a n d v a l u e s 
i n a 
s i t u a t i o n 
l i k e 
t h i s and so I t h i n k t h e r e w i l l be u p w a r d p r e s s u r e 
on 
14 
1070484; 1070487; 1070514 
t h a t $8,000 number. 
M o r e o v e r , t h e o t h e r 
l a n d o w n e r s 
w i l l g e t w i n d o f t h i s p l o y a n d may c r e a t e 
n e g a t i v e 
c o m m u n i t y p u b l i c i t y . 
... 
I n y o u r 
l e t t e r t o us we 
w o u l d a s k t h a t you i n d i c a t e 
e x a c t l y how you i n t e n d 
t o p a y us d u r i n g t h e t r a c k w o r k c o n s t r u c t i o n . " 
The 
H e m p h i l l 
e - m a i l 
shows a c o p y t o S t r a n g e , 
b u t 
S t r a n g e 
t e s t i f i e d 
t h a t he d i d n o t s e e t h e e - m a i l 
u n t i l 
a f t e r t h e 
a c t i o n h a d b e e n 
f i l e d i n t h i s 
c a s e . 
However, E c h o l s 
s t a t e d 
t h a t he a s k e d 
S t r a n g e t o r e s p o n d t o H e m p h i l l ' s 
e - m a i l w i t h a 
l e t t e r , 
w h i c h S t r a n g e 
d r a f t e d a n d s e n t . 
When a s k e d why CSX 
went 
a l o n g 
w i t h t h e p l a n 
f o r i t t o p u r c h a s e 
t h e 
S h e l t o n 
p r o p e r t y , 
H e m p h i l l 
t e s t i f i e d t h a t i t 
d i d so b e c a u s e CSX was 
c o n c e r n e d 
t h a t 
i f i t d i d n o t go 
a l o n g 
w i t h 
t h e 
p l a n , 
M o n t g o m e r y c o u l d l o s e t h e p r o j e c t , and CSX w o u l d t h e r e b y 
l o s e 
t h e p o t e n t i a l f o r 
e x t e n s i v e r a i l w a y b u s i n e s s w i t h H y u n d a i . 
On M a r c h 29, 2002, S t r a n g e 
f a x e d H e m p h i l l t h e f o l l o w i n g 
l e t t e r : 
" L a s t 
e v e n i n g , 
T h u r s d a y , 
M a r c h 28, 2002, a t 6:05 
p.m. 
C e n t r a l S t a n d a r d 
Time, I r e c e i v e d a c a l l 
f r o m 
Mr. B.M. Ahn, P r e s i d e n t H y u n d a i M o t o r Company, U.S. 
f r o m 
S e o u l , 
K o r e a . 
He 
t o l d me 
t h e y 
were i n t h e 
f i n a l 
s t a g e s 
o f t h e d e c i s i o n a n d n e e d e d t o make 
m o d i f i c a t i o n s 
t o 
t h e i r 
M o n t g o m e r y 
s i t e 
l a y o u t 
b e c a u s e t h e CSX R a i l r o a d y a r d e s t i m a t e h a d come i n 
e x t r e m e l y 
h i g h . 
I n t h e i r ( H y u n d a i ' s ) 
r e d e s i g n , he 
w a n t e d t o do p a r a l l e l t r a c k s r u n n i n g n o r t h and s o u t h 
on t h e e a s t e r n s i d e o f t h e p r o p e r t y b o u n d a r y . 
H i s 
e n g i n e e r s 
t o l d h i m he w o u l d n o t h a v e enough 
room 
u n l e s s 
[ a d d i t i o n a l 
p r o p e r t y w a s ] o b t a i n e d 
i n t h e 
s o u t h e a s t c o r n e r o f t h e q u a d r a n t . 
T h i s p r o p e r t y h a d 
15 
1070484; 1070487; 1070514 
b e e n 
d i s c u s s e d 
a 
c o u p l e 
o f months 
ago 
b u t 
we 
had 
b e e n t o l d as r e c e n t l y as two weeks ago 
t h a t i t w o u l d 
n o t be n e c e s s a r y . 
So a c c o r d i n g l y , we d i d n o t p u r s u e 
any 
o p t i o n s . 
... 
"As 
I 
i n d i c a t e d 
t o 
you 
l a s t 
n i g h t , 
o u r 
o p t i o n 
a g r e e m e n t s h a v e a 'most f a v o r e d n a t i o n ' c l a u s e where 
we a g r e e d t o p a y 
no more f o r any 
one 
p a r c e l t h a n 
any 
o f 
t h e 
o t h e r 
p a r c e l s . 
A c c o r d i n g l y , 
I a s s e m b l e d 
a 
w o r k i n g 
g r o u p 
o f 
t h e 
l o c a l 
Chamber 
o f 
Commerce 
e x e c u t i v e s , 
e n g i n e e r i n g 
e x p e r t i s e , Dave E c h o l s 
and 
m y s e l f . 
We 
d e c i d e d 
t h e most a p p r o p r i a t e 
c o u r s e 
t o 
f o l l o w w o u l d be 
t o 
a s k 
CSX 
t o 
o b t a i n 
a p a r c e l 
f o r 
r a i l 
a c c e s s 
t o 
k e e p 
i t 
o u t s i d e 
t h e 
p r o j e c t 
a g r e e m e n t . 
As you know CSX's a g r e e m e n t w i t h H y u n d a i 
i s 
s e p a r a t e 
and 
t h i s 
p r o p e r t y 
i n t h e i r 
v i e w i s f o r 
r a i l 
a c c e s s 
o n l y . 
... 
f i 
"Dave, 
as 
you 
can 
a p p r e c i a t e 
t h e r e 
a r e 
a 
l o t 
o f 
d e t a i l s 
t o be w o r k e d o u t , b u t t h e 
s p i r i t and 
c o n c e p t 
i s 
f o r CSX 
t o 
o b t a i n 
t h e 
n e e d e d 
p a r c e l 
f o r 
r a i l 
a c c e s s 
and w h a t e v e r t h e p u r c h a s e p r i c e , CSX w o u l d 
be 
made w h o l e i n a manner we 
m u t u a l l y 
a g r e e d u p o n . " 
S t r a n g e ' s 
l e t t e r 
i n d i c a t e d 
t h a t 
c o p i e s 
were 
s e n t 
t o 
t h e n 
G o v e r n o r S i e g e l m a n , t h e n F i n a n c e 
D i r e c t o r M a b r y , A b n e y , 
and 
G e o r g e . 
On 
t h e 
m o r n i n g 
o f 
M a r c h 
29, 
G e o r g e 
a s k e d 
t h e n 
Mayor 
B r i g h t 
t o meet w i t h 
S h e l t o n 
and 
h e r 
f a m i l y i n an 
e f f o r t 
t o 
o b t a i n an o p t i o n on t h e p r o p e r t y H y u n d a i had 
r e q u e s t e d 
on 
t h e 
p r e v i o u s 
e v e n i n g . 
S h e l t o n ' s 
p a r e n t s 
knew and 
l i k e d 
B r i g h t , 
and 
he was 
s e e n as t h e p e r s o n who 
c o u l d most 
l i k e l y 
p e r s u a d e 
S h e l t o n 
t o 
s e l l h e r 
l a n d . 
B e f o r e 
B r i g h t a g r e e d t o meet 
w i t h 
16 
1070484; 1070487; 1070514 
S h e l t o n , he r e i t e r a t e d t o S t r a n g e and o t h e r s t h a t t h e C i t y 
and 
C o u n t y s t o o d 
f i r m i n r e f u s i n g t o pay 
a d d i t i o n a l money t o w a r d 
t h e p r o j e c t ; B r i g h t was 
a s s u r e d 
t h a t t h e C i t y and C o u n t y w o u l d 
n o t be e x p e c t e d t o c o n t r i b u t e any f u n d s t o w a r d t h e p u r c h a s e o f 
t h e S h e l t o n p r o p e r t y and 
t h a t t h e o p t i o n w o u l d be a s s i g n e d 
t o 
e i t h e r CSX 
o r t h e 
S t a t e . 
B r i g h t 
t e s t i f i e d 
t h a t he a g r e e d 
t o 
o b t a i n t h e o p t i o n b e c a u s e i t was 
" i m p o r t a n t 
t o me 
t o l e n d 
my 
c r e d i b i l i t y 
t o t h e t r a n s a c t i o n . " 
B r i g h t , M c N a i r , and 
G e o r g e 
met 
w i t h 
S h e l t o n 
and 
p r e s e n t e d 
h e r 
w i t h 
an 
o p t i o n 
a g r e e m e n t 
c o n t a i n i n g a b l a n k 
l i n e 
i n d i c a t i n g t h e p u r c h a s e p r i c e o f 
t h e 
p r o p e r t y . 
S h e l t o n 
f i l l e d i n t h e b l a n k w i t h t h e amount $12,000 
p e r 
a c r e ; B r i g h t e x e c u t e d t h e a s s i g n a b l e 
o p t i o n on b e h a l f 
o f 
t h e C i t y . 
S t r a n g e came t o t h e MACOC o f f i c e s t o g e t t h e 
o p t i o n 
a g r e e m e n t , w h i c h he t h e n f a x e d t o H y u n d a i . 
He 
d i d n o t 
i n f o r m 
Ahn 
t h a t CSX 
was 
t o be t h e e n t i t y t h a t a c t u a l l y p u r c h a s e d 
t h e 
S h e l t o n 
p r o p e r t y . 
M c N a i r 
t e s t i f i e d 
t h a t 
a f t e r 
r e t u r n i n g f r o m m e e t i n g 
w i t h 
S h e l t o n , 
she 
became c o n c e r n e d 
t h a t 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e m i g h t be i m p l i c a t e d as a r e s u l t o f t h e o p t i o n 
o b t a i n e d 
f r o m 
S h e l t o n . 
She 
i n f o r m e d 
Thomas 
H. 
G a l l i o n 
I I I , 
t h e 
a t t o r n e y 
f o r t h e 
IDB, 
and 
F r a n k M c P h i l l i p s , a n o t h e r 
l a w y e r 
17 
1070484; 1070487; 1070514 
w i t h M a y n a r d , C o o p e r & G a l e , P.C., 
a b o u t t h e 
S h e l t o n 
o p t i o n . 
D u r i n g h e r 
d e p o s i t i o n , M c N a i r 
s t a t e d : 
"On 
F r i d a y when 
... 
I came b a c k f r o m v i s i t i n g 
w i t h 
M r s . 
S h e l t o n , 
I c o n t a c t e d 
b o t h Mr. 
G a l l i o n 
and 
Mr. 
M c P h i l l i p s 
[ o n e 
o f 
t h e 
a t t o r n e y s 
f o r 
t h e 
S t a t e 
i n v o l v e d 
i n t h e 
H y u n d a i 
p r o j e c t ] . 
My 
c o n c e r n 
was 
... 
j u s t 
t o 
l e t them know what 
had 
h a p p e n e d , 
you 
know, 
w i t h 
T h u r s d a y 
n i g h t 
b e c a u s e 
i t h a p p e n e d 
so 
f a s t . 
T h e y were 
n o t 
aware 
o f 
i t u n t i l 
a f t e r 
t h e 
f a c t , 
so I w a n t e d t o 
t e l l 
them what had 
h a p p e n e d . 
"But 
a l s o I was 
j u s t 
a 
l i t t l e 
c o n c e r n e d w i t h [ M a y o r 
B r i g h t ] 
t a k i n g 
o u t 
t h e 
o p t i o n - - b e c a u s e 
he 
was 
a 
l o c a l p e r s o n , and 
h i s a c t i o n o f j u s t 
t a k i n g o u t 
t h e 
o p t i o n w h i c h w o u l d be 
a s s i g n e d 
t o CSX 
o r somebody, 
t h a t j u s t made me 
a 
l i t t l e 
n e r v o u s . 
"So 
I 
j u s t 
s a i d - - y o u 
know, I 
was, 
you 
know, 
j u s t 
c a l l i n g 
them 
j u s t 
t o 
be 
s u r e 
t h a t 
t h a t 
w o u l d n ' t 
t r i g g e r 
a n y - - y o u know, we 
j u s t 
d i d n ' t know w h e t h e r 
o r n o t 
t h a t w o u l d , and 
so I j u s t w a n t e d t o be 
s u r e . 
So I c o n t a c t e d 
b o t h o f them." 
On 
t h e 
m o r n i n g 
o f 
M a r c h 
29, 
S t r a n g e 
t e l e p h o n e d 
t h e n 
F i n a n c e D i r e c t o r M a b r y r e g a r d i n g H y u n d a i ' s n e e d f o r 
a d d i t i o n a l 
l a n d . 
M a b r y s a i d 
t h a t S t r a n g e t o l d h i m 
t h a t CSX 
was 
w i l l i n g 
t o a s s i s t i n t h e p u r c h a s e o f t h e p r o p e r t y 
b u t 
t h a t i t m i g h t 
be 
n e c e s s a r y 
f o r 
t h e 
S t a t e 
t o 
p r o v i d e 
f u n d s 
t o 
p u r c h a s e 
t h e 
p r o p e r t y . 
M a b r y c o n s u l t e d 
w i t h t h e n G o v e r n o r S i e g e l m a n , 
who 
a p p r o v e d 
t h e 
use 
o f 
S t a t e 
f u n d s 
f o r 
t h e 
p u r c h a s e , 
i f 
n e c e s s a r y . 
N e i t h e r 
M a b r y 
n o r 
t h e n 
G o v e r n o r 
S i e g e l m a n 
was 
a d v i s e d 
a t t h a t t i m e t h a t S t r a n g e and CSX 
had 
e n t e r e d 
i n t o 
an 
18 
1070484; 1070487; 1070514 
a g r e e m e n t t o h a v e CSX 
r e i m b u r s e d f o r any f u n d s i t p r o v i d e d 
t o 
o b t a i n t h e S h e l t o n p r o p e r t y . 
A l s o on t h e m o r n i n g o f M a r c h 
29, 
A b n e y and M c P h i l l i p s were i n f o r m e d 
t h a t B r i g h t had e x e c u t e d 
an 
o p t i o n 
a g r e e m e n t 
w i t h 
S h e l t o n 
t o p u r c h a s e 
h e r 
p r o p e r t y 
a t 
$12,000 
p e r 
a c r e . 
A b n e y 
and 
M c P h i l l i p s 
r e v i e w e d 
a l l t h e 
o p t i o n 
a g r e e m e n t s 
and 
d e t e r m i n e d 
t h a t 
n o t h i n g 
i n 
them 
p r e v e n t e d 
t h e 
S t a t e 
f r o m 
a s s i s t i n g 
i n t h e 
p u r c h a s e 
o f 
t h e 
S h e l t o n p r o p e r t y . 
T h e y a d v i s e d M a b r y t h a t b e c a u s e t h e 
S t a t e 
was 
n o t 
a p a r t y t o t h e o p t i o n a g r e e m e n t s t h e p u r c h a s e o f 
t h e 
S h e l t o n 
p r o p e r t y 
by 
t h e 
S t a t e 
w o u l d 
n o t 
t r i g g e r 
t h e 
m o s t -
f a v o r e d - n a t i o n 
c l a u s e 
c o n t a i n e d 
i n 
t h e 
o t h e r 
o p t i o n 
a g r e e m e n t s . 
A b n e y 
and 
M c P h i l l i p s 
t h e n 
i n c o r p o r a t e d 
t h e 
p u r c h a s e o f t h e 
S h e l t o n p r o p e r t y 
i n t o t h e 
d r a f t o f a p r o j e c t 
a g r e e m e n t w i t h H y u n d a i d e t a i l i n g t h e l o c a t i o n and 
d e v e l o p m e n t 
o f t h e p l a n t 
("the 
p r o j e c t a g r e e m e n t " ) . 
On 
A p r i l 
1, 2002, H y u n d a i a n n o u n c e d t h a t i t had 
s e l e c t e d 
M o n t g o m e r y as t h e 
s i t e on w h i c h i t w o u l d b u i l d i t s 
a u t o m o b i l e -
m a n u f a c t u r i n g 
f a c i l i t y . 
On 
A p r i l 
8, 
G e o r g e met 
w i t h 
J u d g e 
R e e s e M c K i n n e y , a s h a r e h o l d e r 
i n S o u t h d a l e , 
and W i l l i a m s , 
t h e 
a t t o r n e y r e p r e s e n t i n g W h e e l e r / P h i l l i p s , t o i n f o r m them o f 
t h e 
r e c e n t l y 
o b t a i n e d 
o p t i o n 
on 
t h e 
S h e l t o n 
p r o p e r t y . 
G e o r g e 
t e s t i f i e d 
t h a t he 
t o l d M c K i n n e y and 
W i l l i a m s 
t h a t B r i g h t 
had 
19 
1070484; 1070487; 1070514 
e x e c u t e d an a s s i g n a b l e 
o p t i o n , t h a t he gave them a c o p y o f 
t h e 
S h e l t o n 
o p t i o n a g r e e m e n t , and 
t h a t "CSX 
had a g r e e d t o h e l p 
us 
r e s o l v e 
t h e 
p r o b l e m 
by 
what 
I 
u n d e r s t o o d 
t o 
be 
was 
t h e 
a c q u i s i t i o n 
o f 
t h i s p r o p e r t y 
a f t e r t h e y had done, o f 
c o u r s e , 
due 
d i l i g e n c e f o r t h a t . " 
M c K i n n e y t e s t i f i e d 
t h a t G e o r g e 
t o l d 
h i m 
t h a t 
CSX 
n e e d e d t h e 
p r o p e r t y 
and 
s a t i s f i e d 
h i s 
c o n c e r n s 
b e c a u s e , 
he 
s a i d , 
G e o r g e 
e x p l a i n e d 
t h a t 
" t h e 
r a i l 
y a r d 
p u r c h a s e d 
by 
CSX 
d i d 
n o t 
r e l a t e 
t o 
o u r 
[ S o u t h d a l e ' s ] 
a g r e e m e n t . " 
W i l l i a m s 
a l s o 
t e s t i f i e d 
t h a t G e o r g e 
e x p l a i n e d 
t h a t 
t h e 
S h e l t o n 
o p t i o n w o u l d be 
a s s i g n e d 
t o CSX 
b e c a u s e 
o f 
t h e 
l o c a t i o n o f t h e 
r a i l 
y a r d . 
A l t h o u g h G e o r g e was 
aware 
o f 
H y u n d a i ' s 
r e q u e s t 
i n 
F e b r u a r y 
2002 
t o 
" s q u a r e 
o f f 
t h e 
p r o p e r t y " 
and 
o f M c N a i r ' s a t t e m p t t o o b t a i n S h e l t o n ' s 
l a n d 
a t 
t h a t 
t i m e , 
he 
d i d n o t 
t e l l M c K i n n e y and 
W i l l i a m s 
a b o u t 
t h a t 
r e q u e s t ; 
i n s t e a d , he 
t e s t i f i e d t h a t he i n f o r m e d them " t h a t 
CSX 
was 
g o i n g t o buy 
t h e p r o p e r t y . " 
G e o r g e t e s t i f i e d t h a t when he 
l e f t 
t h e m e e t i n g a t MACOC's o f f i c e s 
on 
t h e 
e v e n i n g o f M a r c h 
28, 
i t was 
h i s u n d e r s t a n d i n g 
t h a t 
CSX 
was 
g o i n g 
t o 
p u r c h a s e 
t h e 
S h e l t o n 
p r o p e r t y 
and 
t h a t 
i f he 
had known t h e 
S t a t e 
was 
g o i n g 
t o r e i m b u r s e CSX 
f o r t h e p u r c h a s e p r i c e , 
he w o u l d h a v e 
c o n v e y e d t h a t i n f o r m a t i o n 
t o M c K i n n e y and 
W i l l i a m s . 
20 
1070484; 1070487; 1070514 
E v a n s t e s t i f i e d t h a t he f i r s t l e a r n e d o f S t r a n g e ' s M a r c h 
29 
l e t t e r and H e m p h i l l ' s M a r c h 29 e - m a i l when he r e a d them on 
h i s 
way t o a m e e t i n g w i t h 
S t r a n g e i n A p r i l 2002. 
He 
s t a t e d 
t h a t he became c o n c e r n e d a n d a s k e d S t r a n g e a b o u t t h e m o s t -
f a v o r e d - n a t i o n 
c l a u s e i n t h e o p t i o n 
a g r e e m e n t s , b u t he 
s a i d 
t h a t 
S t r a n g e 
t o l d h i m t h e p u r c h a s e o f t h e S h e l t o n 
p r o p e r t y 
w o u l d be a s e p a r a t e 
t r a n s a c t i o n and t h a t G e o r g e h a d 
a l r e a d y 
e x p l a i n e d 
t o t h e o t h e r 
l a n d o w n e r s 
t h a t t h e p u r c h a s e o f t h e 
S h e l t o n 
p r o p e r t y 
was t o be "a 
r a i l r o a d 
p r o j e c t . " 
E v a n s 
t e s t i f i e d 
t h a t h i s c o n c e r n s were s a t i s f i e d when S t r a n g e 
t o l d 
h i m 
t h a t G e o r g e h a d i n f o r m e d t h e o t h e r o p t i o n h o l d e r s 
t h a t CSX 
"had 
c o m m i t t e d t o make t h a t 
p u r c h a s e . " 
On 
A p r i l 
15, 
2002, 
t h e 
S t a t e , 
a c t i n g 
t h r o u g h 
t h e n 
G o v e r n o r S i e g e l m a n i n 
h i s o f f i c i a l c a p a c i t y ; t h e C i t y , 
a c t i n g 
t h r o u g h t h e n Mayor B r i g h t i n 
h i s o f f i c i a l c a p a c i t y ; t h e C o u n t y 
C o m m i s s i o n , 
a c t i n g t h r o u g h J o s e p h i n h i s o f f i c i a l 
c a p a c i t y ; 
and t h e 
I D B , a c t i n g t h r o u g h T h o r n t o n i n 
h i s o f f i c i a l 
c a p a c i t y , 
e n t e r e d 
i n t o t h e p r o j e c t a g r e e m e n t .
6 
S e c t i o n 3.1 o f A r t i c l e 
3 o f t h e p r o j e c t 
a g r e e m e n t 
s t a t e d 
t h a t " t h e M o n t g o m e r y I D B 
6The W a t e r Works and S a n i t a r y Sewer B o a r d o f t h e C i t y o f 
M o n t g o m e r y , a c t i n g t h r o u g h i t s c h a i r m a n R i c h a r d E. Hanan, a l s o 
e x e c u t e d t h e p r o j e c t 
a g r e e m e n t , b u t n e i t h e r 
t h e B o a r d n o r 
Hanan i s a p a r t y i n t h i s 
c a s e . 
21 
1070484; 1070487; 1070514 
p r e s e n t l y 
h o l d s 
p u r c h a s e 
o p t i o n s 
n e c e s s a r y 
t o 
a c q u i r e 
f e e 
s i m p l e 
t i t l e 
t o 
e a c h 
p a r c e l 
o f 
r e a l 
e s t a t e 
c o m p r i s i n g 
t h e 
P r o j e c t 
S i t e . " 
S e c t i o n 3.4 
o f t h e p r o j e c t a g r e e m e n t f u r t h e r 
p r o v i d e d 
t h a t 
t h e 
I D B 
was 
t o 
e x e r c i s e e a c h 
o p t i o n ; 
s e c t i o n 
3.6(a) p r o v i d e d t h a t t h e I D B was 
t h e n t o t r a n s f e r t i t l e o f 
t h e 
p r o p e r t y 
a c q u i r e d by 
t h e e x e r c i s e o f t h e o p t i o n s 
t o H y u n d a i . 
S e c t i o n 
3.20 
o f 
t h e 
p r o j e c t 
a g r e e m e n t , 
e n t i t l e d 
"CSX 
A g r e e m e n t , " 
p r o v i d e d 
f o r 
t h e 
a c q u i s i t i o n 
o f 
t h e 
S h e l t o n 
p r o p e r t y : 
"The 
S t a t e 
and 
L o c a l 
G o v e r n m e n t s 
s h a l l 
use 
t h e i r 
b e s t 
e f f o r t s 
t o c a u s e 
CSX 
T r a n s p o r t a t i o n 
t o 
e n t e r 
i n t o 
an 
a g r e e m e n t 
w i t h 
[ H y u n d a i ] 
i n 
f o r m 
s a t i s f a c t o r y 
t o 
[ H y u n d a i ] , 
w h i c h 
w i l l 
p r o v i d e 
f o r 
r a i l 
s e r v i c e f o r [ H y u n d a i ] on t e r m s and 
c o n d i t i o n s 
as f a v o r a b l e t o [ H y u n d a i ] as t h o s e 
o f f e r e d t o 
o t h e r 
a u t o m o b i l e 
m a n u f a c t u r e r s . 
I n 
a d d i t i o n , t h e 
S t a t e 
and 
C i t y 
s h a l l use 
t h e i r 
b e s t 
e f f o r t s 
t o c a u s e 
CSX 
T r a n s p o r t a t i o n 
t o p r o v i d e 
t h e 
i n c e n t i v e s s e t 
f o r t h 
i n t h e 
l e t t e r f r o m CSX 
T r a n s p o r t a t i o n d a t e d December 
17, 
2001. 
The 
S t a t e 
r e p r e s e n t s 
and 
w a r r a n t s 
t h a t 
[ H y u n d a i ] 
w i l l 
a c q u i r e 
f e e 
s i m p l e 
t i t l e 
t o 
[ t h e 
S h e l t o n 
p r o p e r t y ] 
f o r 
use 
i n 
c o n n e c t i o n 
w i t h 
c o n s t r u c t i o n 
o f 
a 
r a i l 
s w i t c h 
y a r d 
by 
o r 
b e f o r e 
S e p t e m b e r 30, 2002. 
I f and 
t o t h e e x t e n t 
[ H y u n d a i ] 
makes 
any 
payment 
f o r 
t h e 
c o s t 
o f 
a c q u i r i n g 
s u c h 
a c r e a g e , 
t h e 
S t a t e 
s h a l l 
r e i m b u r s e 
[ H y u n d a i ] 
f o r 
s u c h c o s t s by i n c r e a s i n g by an e q u i v a l e n t amount t h e 
m o n i e s made 
a v a i l a b l e f r o m 
t h e 
S t a t e 
i n 
T r a i n i n g 
E q u i p m e n t Fund p u r s u a n t 
t o 
A r t i c l e 
4 by 
no 
l a t e r 
t h a n 
t h e 
l a s t 
q u a r t e r 
o f 
t h e 
c a l e n d a r 
y e a r 
2003. 
The 
C i t y 
a g r e e s 
t h a t 
i t w i l l 
z o n e s u c h a d d i t i o n a l 
a c r e a g e 
t h e same as 
t h e 
P r o j e c t 
S i t e . 
The 
L o c a l 
G o v e r n m e n t s a g r e e t o a b a t e t a x e s t h a t a r e a p p l i c a b l e 
t o 
s u c h a d d i t i o n a l a c r e a g e i n t h e same manner and 
t o 
22 
1070484; 1070487; 1070514 
t h e same e x t e n t 
as 
... 
a b a t e m e n t 
o f 
t a x e s 
o f 
t h e 
P r o j e c t 
S i t e . " 
The 
I D B 
a s s i g n e d 
t h e 
o p t i o n s 
i t h e l d 
on 
t h e 
p r o p e r t y 
owned 
by 
S o u t h d a l e , 
W h e e l e r / P h i l l i p s , 
t h e 
R u s s e l l s , 
t h e 
P a r k e r s , t h e McLemore g r o u p , and P e l z e r Homes t o t h e C i t y 
and 
t h e 
C o u n t y . 
I n 
m i d 
May 
2 0 0 2 , 
t h e 
C i t y 
and 
t h e 
C o u n t y 
p u r c h a s e d t h e p r o p e r t y f o r $4,500 p e r a c r e . 
The 
C i t y and 
t h e 
C o u n t y 
t h e n 
d e e d e d 
t h e 
p r o p e r t y 
t o 
t h e 
IDB, 
w h i c h 
i n 
t u r n 
d e e d e d t h e p r o p e r t y t o H y u n d a i . 
The 
C i t y n e v e r e x e r c i s e d t h e 
o p t i o n i t h e l d on t h e S h e l t o n 
p r o p e r t y . 
D e s p i t e 
t h e 
d i s c u s s i o n i n t h e 
l a t e 
e v e n i n g 
o f M a r c h 
28 
a b o u t CSX's 
p u r c h a s i n g 
t h e 
S h e l t o n 
p r o p e r t y , 
t h e n 
F i n a n c e 
D i r e c t o r M a b r y was 
r e l u c t a n t t o h a v e t h e S t a t e r e i m b u r s e 
CSX 
d i r e c t l y 
b e c a u s e 
CSX 
w o u l d 
be 
e x p e c t e d 
t o 
p r o f i t 
f r o m i t s 
r e l a t i o n s h i p w i t h H y u n d a i . When H y u n d a i l e a r n e d t h a t CSX, 
n o t 
t h e 
S t a t e , 
w o u l d 
be 
p u r c h a s i n g 
t h e 
p r o p e r t y 
f o r t h e 
r a i l 
i n s t a l l a t i o n and t h a t H y u n d a i w o u l d be e x p e c t e d 
t o e n t e r 
i n t o 
a l o n g - t e r m 
c o n t r a c t w i t h CSX, 
H y u n d a i d e c i d e d t o i n s t a l l 
t h e 
r a i l 
u s i n g 
i t s own 
f u n d s . 
On 
May 
22, 
2002, M a b r y , 
i n h i s 
c a p a c i t y 
as 
t h e 
d i r e c t o r 
o f 
f i n a n c e , 
s e n t 
Ahn 
a 
l e t t e r 
c o n f i r m i n g t h a t t h e S t a t e w o u l d be f u n d i n g t h e p u r c h a s e o f t h e 
S h e l t o n p r o p e r t y . 
M a b r y ' s 
l e t t e r 
s t a t e d : 
23 
1070484; 1070487; 1070514 
" T h i s 
i s t o c o n f i r m t h a t t h e 
S t a t e o f A l a b a m a 
w i l l 
p r o v i d e t h e f u n d i n g f o r t h e p u r c h a s e o f t h e 93 
a c r e s 
s e t 
a s i d e 
f o r H y u n d a i ' s 
r a i l 
y a r d 
on 
t h e 
d a t e 
o f 
c l o s i n g . 
T h i s 
w i l l 
o b v i a t e any n e e d f o r H y u n d a i t o 
b o r r o w 
t o p a y 
f o r 
t h i s 
a c q u i s i t i o n . 
I n a d d i t i o n , 
t h e 
S t a t e 
w i l l 
p a y 
t h e 
r e a s o n a b l e 
due 
d i l i g e n c e 
c o s t s 
i n c u r r e d 
i n 
c o n n e c t i o n 
w i t h 
H y u n d a i ' s 
a c q u i s i t i o n 
o f 
t h i s 
p r o p e r t y . 
T h i s 
l e t t e r 
o f 
a s s u r a n c e 
i s 
b e i n g 
p r o v i d e d 
t o 
y o u 
p u r s u a n t 
t o 
S e c t i o n 3.20 
o f t h e P r o j e c t A g r e e m e n t . " 
The 
o p t i o n on t h e S h e l t o n p r o p e r t y was 
n e v e r e x e r c i s e d b y 
t h e 
C i t y , and 
i t e x p i r e d on May 
3 1 , 2 0 0 2 . 
A l s o on May 
3 1 , 
CSX 
e x e c u t e d 
a r e a l - e s t a t e s a l e s c o n t r a c t f o r t h e p u r c h a s e o f 
t h e 
S h e l t o n 
p r o p e r t y 
a t 
$12,000 
p e r 
a c r e . 
As 
a 
r e s u l t 
o f 
H y u n d a i ' s 
d e c i s i o n 
n o t 
t o 
i n v o l v e 
CSX 
i n 
t h e 
r a i l 
i n s t a l l a t i o n , CSX a s s i g n e d t h e r e a l - e s t a t e c o n t r a c t t o H y u n d a i 
on May 
2 8 , 2 0 0 2 , t h r e e d a y s b e f o r e 
t h e 
r e a l - e s t a t e c o n t r a c t 
b e t w e e n CSX 
and 
S h e l t o n was 
e x e c u t e d . 
On 
J u n e 
1 4 , 
2 0 0 2 , M a b r y 
and 
t h e n 
G o v e r n o r 
S i e g e l m a n 
c o n v e n e d a m e e t i n g o f t h e A I F A , a t w h i c h t h e A I F A v o t e d t o 
p a y 
$1.3 
m i l l i o n " f o r t h e a c q u i s i t i o n o f r a i l s w i t c h y a r d 
p r o p e r t y 
f o r 
H y u n d a i . " 
B e c a u s e 
t h e 
f u n d s 
f o r 
t h e 
p u r c h a s e 
o f 
t h e 
S h e l t o n 
p r o p e r t y 
were 
r e l a t e d 
t o 
a commitment made 
t o 
an 
i n d u s t r y l o c a t i n g i n A l a b a m a , b o n d p r o c e e d s h e l d b y t h e A I F A 
were u s e d t o f u n d t h e p u r c h a s e o f t h e p r o p e r t y . 
On J u l y 
1 2 , 
2 0 0 2 , f u n d s f r o m 
t h e A I F A were t r a n s f e r r e d t o H y u n d a i , 
and 
24 
1070484; 1070487; 1070514 
H y u n d a i u s e d 
t h o s e 
f u n d s 
t o p u r c h a s e 
t h e 
S h e l t o n 
p r o p e r t y . 
The 
c l o s i n g on t h e S h e l t o n p r o p e r t y o c c u r r e d 
i n A u g u s t 2002. 
A f t e r 
a l l t h e 
l a n d 
had 
b e e n 
a c q u i r e d 
and 
d e e d e d 
t o 
H y u n d a i , 
H y u n d a i 
l e a s e d 
a l l t h e 
p r o p e r t y , 
i n c l u d i n g 
t h e 
S h e l t o n p r o p e r t y , t o t h e I D B so t h a t t h e A l a b a m a D e p a r t m e n t o f 
T r a n s p o r t a t i o n ("ALDOT") c o u l d p e r f o r m 
s i t e p r e p a r a t i o n on 
t h e 
p r o p e r t y . 
A d d i t i o n a l l y , t h e 
I D B 
e n t e r e d 
i n t o 
an 
a g r e e m e n t 
w i t h H y u n d a i p r o v i d i n g t h a t H y u n d a i ' s p r o p e r t y was 
t o r e c e i v e 
t h e p r e v i o u s l y a g r e e d upon a b a t e m e n t f r o m ad v a l o r e m 
t a x a t i o n 
and 
o t h e r t a x i n c e n t i v e s p r o v i d e d 
as a p a r t o f t h e i n c e n t i v e 
p a c k a g e . 
The 
S h e l t o n 
p r o p e r t y 
was 
i n c l u d e d 
i n 
t h e 
t a x - a b a t e m e n t a g r e e m e n t . 
On May 
2 8 , 2 0 0 4 , S o u t h d a l e 
and W h e e l e r / P h i l l i p s f i l e d 
an 
a c t i o n 
i n 
t h e 
M o n t g o m e r y 
C i r c u i t 
C o u r t 
a g a i n s t 
t h e 
I D B , 
T h o r n t o n , t h e C i t y , B r i g h t , t h e C o u n t y , J o s e p h , t h e A I F A , t h e n 
G o v e r n o r 
S i e g e l m a n , 
t h e n 
F i n a n c e 
D i r e c t o r 
M a b r y , 
CSX 
T r a n s p o r t a t i o n , I n c . , H y u n d a i , t h e MACOC, and G e o r g e , a l l e g i n g 
f r a u d , 
s u p p r e s s i o n , 
b r e a c h 
o f 
c o n t r a c t , 
r e s c i s s i o n , 
and 
c o n s p i r a c y 
a r i s i n g 
o u t 
o f 
t h e 
s a l e 
o f 
t h e i r 
l a n d . 
S p e c i f i c a l l y , t h e y a l l e g e d t h a t t h e d e f e n d a n t s had 
c o n s p i r e d 
t o p u r c h a s e t h e 
S h e l t o n p r o p e r t y 
a t a h i g h e r p r i c e t h a n 
was 
p a i d 
f o r 
t h e i r 
p r o p e r t y 
and 
t h a t 
t h e 
d e f e n d a n t s 
d i d 
so 
t o 
25 
1070484; 1070487; 1070514 
a v o i d c o m p l y i n g w i t h t h e m o s t - f a v o r e d - n a t i o n c l a u s e c o n t a i n e d 
i n a l l 
t h e o p t i o n a g r e e m e n t s . 
S o u t h d a l e and W h e e l e r / P h i l l i p s 
f i l e d an amended c o m p l a i n t on A u g u s t 2 0 , 2 0 0 4 , n a m i n g t h e same 
d e f e n d a n t s , 
s t a t i n g 
t h e same c l a i m s , and m a k i n g 
o n l y m i n o r 
r e v i s i o n s 
t o t h e c o m p l a i n t . 
S o u t h d a l e 
and W h e e l e r / P h i l l i p s 
f i l e d 
a 
s e c o n d 
amended 
c o m p l a i n t 
on 
F e b r u a r y 
2 2 , 
2 0 0 5 , 
s u b s t i t u t i n g 
CSX 
R e a l 
P r o p e r t y , 
I n c . , 
H e m p h i l l , 
E v a n s , 
S t r a n g e , and 
E c h o l s 
f o r t h e 
f i c t i t i o u s l y 
named 
d e f e n d a n t s 
i d e n t i f i e d i n t h e e a r l i e r c o m p l a i n t s and a d d i n g an 
a d d i t i o n a l 
c l a i m o f i n t e n t i o n a l f r a u d and s u p p r e s s i o n . 
On November 
2 1 , 
2 0 0 5 , t h e 
t r i a l c o u r t d i s m i s s e d G e o r g e and t h e MACOC p u r s u a n t 
t o 
a s t i p u l a t i o n b e t w e e n t h e p a r t i e s . 
On F e b r u a r y 22, 
2006, 
t h e 
t r i a l c o u r t e n t e r e d a summary j u d g m e n t i n f a v o r o f B r i g h t 
on 
t h e 
b a s i s 
o f 
S t a t e - a g e n t 
i m m u n i t y , 
d i s m i s s e d 
E c h o l s 
p u r s u a n t t o a s t i p u l a t i o n o f t h e p a r t i e s , and d e n i e d 
S t r a n g e ' s 
m o t i o n 
t o d i s m i s s t h e 
c l a i m s a g a i n s t h i m 
on 
t h e 
g r o u n d 
o f 
i m m u n i t y . 
L e s s 
t h a n a week b e f o r e 
t h i s 
c a s e was 
t o be 
t r i e d , 
t h e 
p r o j e c t 
p a r t i c i p a n t s 
r e m a i n i n g 
i n t h e c a s e 
a f t e r B r i g h t 
was 
r e m o v e d ( " t h e 
r e m a i n i n g p r o j e c t p a r t i c i p a n t s " ) f i l e d a m o t i o n 
t o 
d i s q u a l i f y 
t h e 
l a w 
f i r m 
r e p r e s e n t i n g S o u t h d a l e 
i n 
t h i s 
l i t i g a t i o n , 
t h e M o n t g o m e r y l a w 
f i r m o f J e m i s o n , M e n d e l s o h n 
& 
26 
1070484; 1070487; 1070514 
J a m e s , P.C., on t h e b a s i s t h a t a member o f t h a t l a w f i r m , L e e 
M i l l e r , 
a p p e a r e d 
t o have 
p r o v i d e d 
l e g a l 
a d v i c e 
r e g a r d i n g 
p u r c h a s e o f t h e S h e l t o n 
p r o p e r t y 
d u r i n g h i s e m p l o y m e n t 
w i t h 
t h e 
l e g a l 
d i v i s i o n o f t h e S t a t e F i n a n c e 
D e p a r t m e n t b e f o r e he 
j o i n e d t h e l a w f i r m . 
The r e m a i n i n g 
p r o j e c t p a r t i c i p a n t s a l s o 
moved 
t o 
d i s q u a l i f y 
t h e 
l a w 
f i r m 
r e p r e s e n t i n g 
W h e e l e r / P h i l l i p s , 
t h e B i r m i n g h a m 
f i r m 
o f S p a i n 
& 
G i l l o n , 
L . L . C . , on t h e b a s i s 
t h a t 
M i l l e r h a d p r o v i d e d 
d o c u m e n t s t o 
them. 
The t r i a l 
c o u r t g r a n t e d t h e m o t i o n s t o d i s q u a l i f y b o t h 
l a w f i r m s . 
W h e e l e r / P h i l l i p s p e t i t i o n e d t h i s C o u r t f o r 
a w r i t 
o f mandamus 
d i r e c t i n g t h e t r i a l 
c o u r t t o v a c a t e 
i t s o r d e r 
d i s q u a l i f y i n g 
t h e i r 
c o u n s e l i n t h i s 
l i t i g a t i o n . 
T h i s 
C o u r t 
g r a n t e d W h e e l e r / P h i l l i p s ' s p e t i t i o n a n d i s s u e d t h e w r i t . 
See 
Ex 
p a r t e 
W h e e l e r , 
978 So. 2d 1 ( A l a . 
2 0 0 7 ) . 
S o u t h d a l e 
o b t a i n e d new c o u n s e l , a n d t h e c a s e p r o c e e d e d . 
On November 2, 2007, t h e t r i a l 
c o u r t 
e n t e r e d a summary 
j u d g m e n t i n f a v o r o f t h e r e m a i n i n g 
p r o j e c t p a r t i c i p a n t s on 
S o u t h d a l e a n d W h e e l e r / P h i l l i p s ' s t o r t c l a i m s on t h e b a s i s t h a t 
t h o s e 
t o r t 
c l a i m s were b a r r e d b y t h e a p p l i c a b l e s t a t u t e o f 
l i m i t a t i o n s . 
On November 20, 2007, t h e t r i a l 
c o u r t e n t e r e d a 
summary 
j u d g m e n t 
i n 
f a v o r 
o f 
t h e 
r e m a i n i n g 
p r o j e c t 
p a r t i c i p a n t s 
on 
a l l r e m a i n i n g 
c l a i m s . 
S o u t h d a l e 
a n d 
27 
1070484; 1070487; 1070514 
W h e e l e r / P h i l l i p s a p p e a l f r o m t h e summary j u d g m e n t s . 
S o u t h d a l e 
a l s o a p p e a l s 
f r o m an o r d e r o f t h e 
t r i a l 
c o u r t r e q u i r i n g i t t o 
p a y 
t h e 
s p e c i a l - m a s t e r 
f e e 
i n c o n n e c t i o n 
w i t h t h e m o t i o n 
t o 
d i s q u a l i f y i t s c o u n s e l . 
W h e e l e r / P h i l l i p s a l s o a p p e a l f r o m an 
o r d e r 
o f 
t h e 
t r i a l 
c o u r t 
r e q u i r i n g them 
t o 
p r o d u c e 
i n 
d i s c o v e r y 
m a t e r i a l s 
t h e y 
c o n s i d e r 
t o 
be 
s u b j e c t 
t o 
t h e 
a t t o r n e y - c l i e n t 
p r i v i l e g e . 
S t r a n g e 
c r o s s - a p p e a l s 
f r o m 
t h e 
o r d e r 
d e n y i n g 
h i s m o t i o n 
t o 
d i s m i s s 
g r o u n d e d 
on 
S t a t e 
and 
S t a t e - a g e n t 
i m m u n i t y . 
The 
R u s s e l l s 
and 
t h e McLemore 
g r o u p 
a l s o 
f i l e d 
l e g a l 
a c t i o n s as a r e s u l t o f t h e s e t r a n s a c t i o n s . They e a c h s u e d t h e 
I D B 
and 
H y u n d a i , 
a l l e g i n g 
b r e a c h 
o f 
c o n t r a c t , 
s p e c i f i c a l l y 
s t a t i n g 
t h a t 
t h e 
I D B 
and 
H y u n d a i 
had 
b r e a c h e d 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e i n t h e i r o p t i o n a g r e e m e n t s by 
n o t 
p a y i n g 
them $12,000 p e r 
a c r e 
f o r 
t h e i r 
p r o p e r t y , 
t h e 
p r i c e 
S h e l t o n was 
p a i d . 
The 
t r i a l 
c o u r t e n t e r e d summary j u d g m e n t s 
i n 
f a v o r 
o f 
t h e 
I D B 
and 
H y u n d a i , 
and 
t h e 
R u s s e l l s and 
t h e 
McLemore 
g r o u p 
a p p e a l e d . 
T h i s 
C o u r t 
a f f i r m e d 
t h e 
t r i a l 
c o u r t ' s 
j u d g m e n t 
i n 
p a r t 
and 
r e v e r s e d 
i t i n 
p a r t . 
See 
McLemore v. 
H y u n d a i M o t o r 
M f g . 
A l a b a m a , 
LLC, 
7 So. 
3d 
318 
( A l a . 
2 0 0 8 ) . 
Our 
d e c i s i o n i n t h a t c a s e c o n t r o l s some o f 
t h e 
i s s u e s r a i s e d i n t h i s 
c a s e . 
28 
1070484; 1070487; 1070514 
I I . 
S t a n d a r d o f R e v i e w 
A. Summary Judgment 
The s t a n d a r d by w h i c h t h i s C o u r t w i l l r e v i e w a m o t i o n f o r 
summary j u d g m e n t i s w e l l 
e s t a b l i s h e d : 
"'The 
p r i n c i p l e s o f l a w a p p l i c a b l e t o a m o t i o n 
f o r 
summary j u d g m e n t 
a r e 
w e l l 
s e t t l e d . 
To 
g r a n t 
s u c h a m o t i o n , t h e 
t r i a l 
c o u r t must d e t e r m i n e 
t h a t 
t h e 
e v i d e n c e 
does 
n o t 
c r e a t e a 
g e n u i n e 
i s s u e 
o f 
m a t e r i a l 
f a c t and 
t h a t t h e movant i s e n t i t l e d t o a 
j u d g m e n t as a m a t t e r o f l a w . 
R u l e 5 6 ( c ) ( 3 ) , A l a . R. 
C i v . 
P. 
When t h e movant makes a p r i m a f a c i e 
s h o w i n g 
t h a t t h o s e two 
c o n d i t i o n s a r e s a t i s f i e d , 
t h e 
b u r d e n 
s h i f t s 
t o 
t h e 
nonmovant 
t o 
p r e s e n t 
" s u b s t a n t i a l 
e v i d e n c e " c r e a t i n g a g e n u i n e i s s u e o f m a t e r i a l 
f a c t . 
B a s s v. S o u t h T r u s t Bank o f B a l d w i n C o u n t y , 
538 
So. 
2d 
794, 
797-98 
( A l a . 1 9 8 9 ) ; 
§ 1 2 - 2 1 - 1 2 ( d ) [ , ] 
A l a . 
Code 1975. 
E v i d e n c e 
i s " s u b s t a n t i a l " i f i t i s o f 
" s u c h w e i g h t and q u a l i t y t h a t f a i r - m i n d e d p e r s o n s i n 
t h e 
e x e r c i s e 
o f 
i m p a r t i a l 
j u d g m e n t 
c a n 
r e a s o n a b l y 
i n f e r 
t h e 
e x i s t e n c e 
o f 
t h e 
f a c t 
s o u g h t 
t o 
be 
p r o v e d . " 
West 
v. 
F o u n d e r s 
L i f e 
A s s u r . 
Co. 
o f 
F l o r i d a , 
547 
So. 2d 870, 
871 
( A l a . 1 9 8 9 ) . 
" ' I n 
o u r r e v i e w o f a summary j u d g m e n t , we 
a p p l y 
t h e 
same 
s t a n d a r d as 
t h e 
t r i a l 
c o u r t . 
Ex 
p a r t e  
L u m p k i n , 
702 
So. 
2d 
4 
62 , 
465 
( A l a . 1997 ) . 
Our 
r e v i e w i s s u b j e c t t o t h e c a v e a t t h a t we must r e v i e w 
t h e 
r e c o r d 
i n 
a 
l i g h t 
most 
f a v o r a b l e 
t o 
t h e 
nonmovant 
and 
must 
r e s o l v e 
a l l r e a s o n a b l e 
d o u b t s 
a g a i n s t 
t h e m o v a n t . 
H a n n e r s 
v. 
B a l f o u r 
G u t h r i e , 
 
I n c . , 
564 
So. 2d 412 
( A l a . 1 9 9 0 ) . ' " 
P a y t o n v. M o n s a n t o Co., 
801 
So. 
2d 
829, 
832-33 
( A l a . 2001 ) 
( q u o t i n g Ex p a r t e A l f a Mut. Gen. 
I n s . Co., 742 So. 2d 182, 
184 
( A l a . 
1 9 9 9 ) ) . 
B. D i s c o v e r y O r d e r 
29 
1070484; 1070487; 1070514 
Our 
s t a n d a r d 
o f r e v i e w 
i n m a t t e r s i n v o l v i n g d i s c o v e r y i s 
l i m i t e d 
t o d e t e r m i n i n g 
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 i n m a k i n g i t s d i s c o v e r y d e c i s i o n . 
R a n k i n v. 
F i r s t 
 
N a t ' l 
Bank 
o f 
A l a b a m a , 
437 
So. 
2d 
503 
( A l a . 
1 
9 8 3 ) . 
An 
a p p e l l a t e 
c o u r t 
w i l l 
n o t 
r e v e r s e 
t h e 
t r i a l 
c o u r t ' s 
d e c i s i o n 
r e g a r d i n g 
a d i s c o v e r y m a t t e r u n l e s s 
t h e r e 
i s a c l e a r s h o w i n g 
t h a t 
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 . 
Ex 
p a r t e 
M c T i e r , 
414 
So. 
2d 460 
( A l a . 1 9 8 2 ) . 
C. 
S p e c i a l - M a s t e r 
Fee 
The 
d e c i s i o n w h e t h e r t o a w a r d a s p e c i a l - m a s t e r 
f e e as 
an 
e l e m e n t o f c o s t s i s w i t h i n t h e s o u n d d i s c r e t i o n o f t h e 
t r i a l 
c o u r t . 
An 
a p p e l l a t e 
c o u r t 
w i l l 
r e v e r s e 
t h e 
t r i a l 
c o u r t ' s 
r u l i n g on t h a t q u e s t i o n o n l y upon a s h o w i n g t h a t t h e t a x a t i o n 
o f c o s t s was 
u n j u s t and u n f a i r . 
C i t y o f B i r m i n g h a m v. C i t y 
o f 
F a i r f i e l d , 
396 
So. 
2d 
692, 
697 
( A l a . 1 9 8 1 ) . 
I I I . Summary Judgment as t o B r e a c h - o f - C o n t r a c t 
C l a i m s 
I n McLemore v. H y u n d a i M o t o r M a n u f a c t u r i n g , 
LLC, 
s u p r a , 
we 
d e a l t 
w i t h 
o p t i o n 
a g r e e m e n t s 
i d e n t i c a l 
t o 
t h e 
o p t i o n 
a g r e e m e n t s e x e c u t e d i n t h e u n d e r l y i n g c a s e . 
The 
IDB a r g u e d i n 
McLemore, as do 
t h e p r o j e c t p a r t i c i p a n t s h e r e , 
t h a t t h e 2002 
amendment 
t o 
t h e 
o p t i o n 
a g r e e m e n t 
w a i v e d 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n t h e 
o r i g i n a l 
o p t i o n a g r e e m e n t . 
30 
1070484; 1070487; 1070514 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a r g u e , 
as 
d i d t h e 
R u s s e l l s , 
t h a t t h e amendment o f t h e o p t i o n a g r e e m e n t s d i d n o t w a i v e 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e . 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
c o n t e n d 
t h a t 
t h e 
s o l e 
p u r p o s e 
o f t h e amendment t o t h e o p t i o n a g r e e m e n t was t o e x t e n d 
t h e 
d a t e 
o f 
t h e 
o p t i o n 
120 
d a y s 
p a s t 
t h e 
F e b r u a r y 
2002 
e x p i r a t i o n d a t e o f t h e o r i g i n a l o p t i o n a g r e e m e n t . 
B e c a u s e t h e 
amendment t o t h e o p t i o n a g r e e m e n t d i d n o t s p e c i f i c a l l y 
d e l e t e 
o r 
w a i v e 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e , 
t h e y 
a r g u e , 
t h e 
c l a u s e 
r e m a i n e d 
i n e f f e c t . 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
r e l y 
on 
l a n g u a g e 
i n t h e amended 
o p t i o n 
a g r e e m e n t 
p r o v i d i n g 
t h a t , 
" [ e ] x c e p t 
as amended h e r e b y , 
t h e O p t i o n i s i n a l l o t h e r 
r e s p e c t s 
r a t i f i e d and c o n f i r m e d , " and l a n g u a g e i n t h e 
o r i g i n a l 
o p t i o n 
a g r e e m e n t p r o v i d i n g 
t h a t 
"no 
w a i v e r 
o f any 
o f 
[ t h e ] 
t e r m s 
and 
c o n d i t i o n s 
[ o f 
t h e 
o p t i o n 
a g r e e m e n t ] 
s h a l l 
be 
e f f e c t i v e 
u n l e s s made i n w r i t i n g 
and 
d u l y 
e x e c u t e d 
by 
t h e 
p a r t i e s " 
t o t h e 
o p t i o n a g r e e m e n t . 
They 
i n s i s t 
t h a t 
b e c a u s e 
t h e amendment t o t h e 
o p t i o n 
a g r e e m e n t d i d n o t 
s p e c i f i c a l l y 
d e l e t e 
o r w a i v e 
t h e m o s t - f a v o r e d - n a t i o n 
c l a u s e , 
t h a t 
c l a u s e 
r e m a i n s 
e n f o r c e a b l e . 
The 
p r o j e c t 
p a r t i c i p a n t s 
c o n t e n d 
t h a t 
b e c a u s e t h e l a n g u a g e 
i n t h e amendment t o t h e o p t i o n a g r e e m e n t 
as 
t o 
t h e 
p u r c h a s e 
p r i c e 
i s u n a m b i g u o u s 
and 
e s t a b l i s h e s 
a 
31 
1070484; 1070487; 1070514 
d e f i n i t e 
p u r c h a s e 
p r i c e 
o f 
$4,500 
p e r 
a c r e , 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
was 
e l i m i n a t e d 
f r o m 
t h e 
o p t i o n 
a g r e e m e n t s b e t w e e n t h e 
IDB 
and 
S o u t h d a l e and b e t w e e n t h e 
IDB 
and 
W h e e l e r / P h i l l i p s . 
We 
r e v e r s e d 
t h e summary j u d g m e n t f o r t h e 
IDB 
as 
t o 
t h e 
R u s s e l l s ' b r e a c h - o f - c o n t r a c t 
c l a i m i n McLemore, 
s t a t i n g : 
"We 
h o l d t h a t t h e t e r m s o f t h e amendment t o 
t h e 
o p t i o n a g r e e m e n t a r e 
n o t 
' d e f i n i t e 
and 
c e r t a i n ' 
as 
t o w a i v e r 
o f 
t h e m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n 
t h e 
o r i g i n a l 
o p t i o n 
a g r e e m e n t . 
The 
l a n g u a g e 
o f 
t h e 
o r i g i n a l o p t i o n a g r e e m e n t s p e c i f i c a l l y p r o v i d e d 
t h a t 
f o r 
a 
w a i v e r 
o f 
a 
t e r m 
o f 
t h e 
a g r e e m e n t 
t o 
be 
e f f e c t i v e , 
t h e 
w a i v e r 
must 
be 
i n 
w r i t i n g 
and 
e x e c u t e d by b o t h p a r t i e s . 
A l t h o u g h t h e l a n g u a g e i n 
t h e amendment t o t h e o p t i o n a g r e e m e n t s e t s f o r t h 
t h e 
p r i c e 
p e r 
a c r e 
a t $4,500, we 
c a n n o t c o n c l u d e 
t h a t 
t h e 
l a n g u a g e 
i n t h e amended o p t i o n 
as 
a m a t t e r 
o f 
l a w 
m o d i f i e d 
o r 
w a i v e d 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n t h e 
R u s s e l l s ' 
o r i g i n a l 
o p t i o n 
a g r e e m e n t . 
T h e r e f o r e , 
a 
q u e s t i o n 
f o r 
t h e 
j u r y 
e x i s t s 
as 
t o 
w h e t h e r 
t h e 
amended 
o p t i o n 
a g r e e m e n t 
m o d i f i e d 
o r 
w a i v e d 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n 
t h e 
R u s s e l l s ' 
o r i g i n a l 
o p t i o n a g r e e m e n t , 
and 
a summary 
j u d g m e n t 
f o r 
t h e 
IDB 
and 
a g a i n s t 
t h e 
R u s s e l l s 
on 
t h i s g r o u n d i s n o t 
p r o p e r . " 
7 
So. 
3d 
a t 
334. 
B a s e d 
on 
o u r 
h o l d i n g 
i n McLemore, 
we 
l i k e w i s e h o l d 
i n t h i s c a s e t h a t w h e t h e r t h e amendment t o 
t h e 
o p t i o n a g r e e m e n t s m o d i f i e d 
o r w a i v e d t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n S o u t h d a l e ' s and 
W h e e l e r / P h i l l i p s ' s 
o r i g i n a l 
o p t i o n 
a g r e e m e n t s 
i s 
a 
q u e s t i o n 
t o 
r e s o l v e d 
by 
t h e 
j u r y , 
and 
a 
summary j u d g m e n t on 
t h i s g r o u n d was 
e r r o r . 
32 
1070484; 1070487; 1070514 
We 
a l s o 
a d d r e s s e d 
i n McLemore 
a r g u m e n t s made 
by 
t h e 
R u s s e l l s and 
t h e McLemore g r o u p t h a t t h e 
t r i a l 
c o u r t e r r e d 
i n 
e n t e r i n g a summary j u d g m e n t on t h e i r b r e a c h - o f - c o n t r a c t 
c l a i m 
b e c a u s e , t h e y s a i d , a g e n u i n e i s s u e o f m a t e r i a l f a c t e x i s t s as 
t o 
t h e 
m e a n i n g 
and 
a p p l i c a t i o n 
o f 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n t h e o p t i o n a g r e e m e n t s . 
I n McLemore, t h e 
IDB 
a r g u e d 
t h a t u n d e r t h e d o c t r i n e o f m e r g e r t h e o p t i o n a g r e e m e n t s had 
no 
e f f e c t once t h e d e e d s were e x e c u t e d and 
d e l i v e r e d . 
We 
s t a t e d 
i n McLemore: 
"Thus, 
t h e mere 
e x e c u t i o n 
and 
d e l i v e r y 
o f 
a 
d e e d 
does 
n o t 
merge 
t h e 
c o n s i d e r a t i o n 
i n 
t h e 
c o n t r a c t 
o f 
s a l e 
i n t o 
t h e 
d e e d . 
As 
we 
s t a t e d 
i n 
L i p s c o m b v. 
T u c k e r , 
294 
A l a . 
246, 
256, 
314 
So. 
2d 
840, 
848 
( 1 9 7 5 ) : 
" ' I f 
t h e 
r e c e i p t 
o f 
v a l u a b l e 
c o n s i d e r a t i o n 
i s 
r e c i t e d 
i n 
a d e e d , 
t h e 
r e c i t a l 
i s m e r e l y p r i m a 
f a c i e e v i d e n c e 
o f 
t h e 
f u l l 
a g r e e d 
c o n s i d e r a t i o n 
and 
p a r o l 
e v i d e n c e 
i s a d m i s s i b l e 
t o show t h a t 
o t h e r 
and 
a d d i t i o n a l v a l u a b l e 
c o n s i d e r a t i o n 
was 
t o 
be 
r e c e i v e d 
by 
t h e 
g r a n t o r 
s u c h 
as 
a d d i t i o n a l 
money 
o r 
c r e d i t 
on 
a 
p r e - e x i s t i n g d e b t o r m o r t g a g e . ' 
" H e r e , 
t h e d e e d s 
i n q u e s t i o n 
p r o v i d e 
t h a t 
t h e 
c o n s i d e r a t i o n 
i s 
'$10.00 
and 
o t h e r 
v a l u a b l e 
c o n s i d e r a t i o n . ' 
T h i s 
r e c i t a t i o n 
o f 
c o n s i d e r a t i o n 
p e r m i t s i n q u i r y i n t o l i k e c o n s i d e r a t i o n f o r t h e 
s a l e 
o f 
t h e 
p r o p e r t i e s , 
and 
t h e 
R u s s e l l s ' 
and 
t h e 
McLemore g r o u p ' s b r e a c h - o f - c o n t r a c t 
c l a i m s 
a r e 
n o t 
b a r r e d 
by 
t h e 
d o c t r i n e 
o f m e r g e r . " 
33 
1070484; 1070487; 1070514 
7 
So. 
3d 
a t 
336. 
B a s e d 
on 
o u r 
h o l d i n g 
i n McLemore, 
we 
l i k e w i s e 
h o l d 
i n 
t h i s 
c a s e 
t h a t 
S o u t h d a l e ' s 
and 
W h e e l e r / P h i l l i p s ' s b r e a c h - o f - c o n t r a c t 
c l a i m s a r e n o t b a r r e d 
by 
t h e d o c t r i n e o f m e r g e r , and 
a summary j u d g m e n t on 
t h i s g r o u n d 
was 
e r r o r . 
F i n a l l y , 
we 
e x a m i n e d 
t h e 
l a n g u a g e 
o f 
t h e 
o p t i o n 
a g r e e m e n t s i n McLemore t o d e t e r m i n e w h e t h e r t h e y a r e a m b i g u o u s 
and w h e t h e r "a g e n u i n e i s s u e o f m a t e r i a l f a c t e x i s t s f o r 
t h e 
j u r y 
as 
t o 
w h e t h e r 
t h e 
S h e l t o n 
p r o p e r t y 
was 
p a r t 
o f 
' t h e 
p r o j e c t 
p l a n n e d 
f o r 
t h i s 
P r o p e r t y ' 
and, 
i f 
t h e 
S h e l t o n 
p r o p e r t y 
i s p a r t 
o f 
t h e 
p r o j e c t , w h e t h e r , 
l i k e 
S h e l t o n , 
t h e 
R u s s e l l s and 
t h e McLemore g r o u p s h o u l d have b e e n p a i d $12,000 
p e r 
a c r e . " 
7 So. 
3d 
a t 
337. 
A f t e r r e v i e w i n g 
t h e 
e v i d e n c e 
p r e s e n t e d , 
t h e 
v a s t 
m a j o r i t y 
o f w h i c h 
i s 
i d e n t i c a l 
i n 
t h i s 
c a s e , we 
c o n c l u d e d i n McLemore: 
"We 
a g r e e 
w i t h 
t h e 
R u s s e l l s 
and 
t h e 
McLemore 
g r o u p t h a t t h e l a n g u a g e i n t h e 
o p t i o n a g r e e m e n t s i s 
a m b i g u o u s , 
t h a t 
i t c a n n o t be 
r e s o l v e d 
by 
r u l e s 
o f 
c o n t r a c t 
c o n s t r u c t i o n , 
and 
t h a t 
t h e y 
p r e s e n t e d 
s u b s t a n t i a l 
e v i d e n c e 
c r e a t i n g 
a 
g e n u i n e 
i s s u e 
o f 
m a t e r i a l 
f a c t 
f o r 
t h e 
j u r y 
as 
t o 
t h e 
m e a n i n g 
and 
a p p l i c a t i o n o f t h e m o s t - f a v o r e d - n a t i o n c l a u s e i n t h e 
o p t i o n 
a g r e e m e n t s . 
S p e c i f i c a l l y , 
t h e 
p r o v i s i o n s , 
' [ i ] f 
P u r c h a s e r e l e c t s t o e x e r c i s e 
t h i s 
O p t i o n 
t h e 
p u r c h a s e p r i c e f o r t h e 
P r o p e r t y 
s h a l l be 
d e t e r m i n e d 
as 
f o l l o w s ' 
and 
' t h e 
p u r c h a s e 
p r i c e 
s h a l l 
i n 
no 
e v e n t be 
l e s s t h a n 
t h e 
p r i c e p e r 
a c r e 
p a i d 
t o 
any 
o t h e r l a n d o w n e r i n c l u d e d i n t h e p r o j e c t p l a n n e d 
f o r 
34 
1070484; 1070487; 1070514 
t h e 
P r o p e r t y ' 
a r e 
a m b i g u o u s 
b e c a u s e 
r e a s o n a b l e 
p e r s o n s c o u l d 
d i f f e r 
on w h e t h e r 
' t h e p r i c e p e r 
a c r e 
p a i d t o any 
o t h e r l a n d o w n e r i n c l u d e d i n t h e p r o j e c t ' 
r e f e r s 
t o a p u r c h a s e p r i c e p a i d 
o n l y by 
t h e 
IDB 
o r 
t o 
a 
p u r c h a s e 
p r i c e 
p a i d 
by 
any 
p u r c h a s e r 
f o r 
p r o p e r t y 
i n c l u d e d 
i n 
t h e 
p r o j e c t . 
I f 
t h e 
i m p l i c a t i o n i s t h a t t h e l a n g u a g e r e f e r s t o p a y m e n t s 
o n l y by t h e IDB, 
t h e n t h e m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i s 
t r i g g e r e d o n l y 
i f t h e 
IDB 
p a i d 
o t h e r 
l a n d o w n e r s 
more t h a n i t p a i d t h e 
s e l l e r s - - t h e R u s s e l l s and 
t h e 
McLemore 
g r o u p . 
I f 
t h e 
l a n g u a g e 
r e f e r s 
t o 
a 
p u r c h a s e p r i c e p a i d by any p u r c h a s e r on p r o p e r t y 
f o r 
t h e p r o j e c t , t h e n t h e m o s t - f a v o r e d - n a t i o n c l a u s e 
i s 
t r i g g e r e d 
r e g a r d l e s s 
o f w h e t h e r t h e p u r c h a s e 
p r i c e 
was 
p a i d by 
t h e 
IDB 
o r a n o t h e r 
e n t i t y . 
R e a s o n a b l e 
p e r s o n s 
c o u l d 
d i f f e r 
o v e r w h e t h e r t h e 
r e f e r e n c e 
t o 
' p r i c e 
p e r 
a c r e 
p a i d 
t o 
any 
o t h e r 
l a n d o w n e r ' 
i n c l u d e s 
by 
i m p l i c a t i o n t h e 
i n t e r l i n e a t i o n 
o f 
t h e 
p h r a s e 
'by 
t h e 
IDB' 
so t h a t t h e 
c o n t r a c t means 
t h a t 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i s 
t r i g g e r e d 
o n l y 
when t h e p u r c h a s e p r i c e p a i d by t h e IDB 
t o any 
o t h e r 
l a n d o w n e r 
e x c e e d s 
t h e 
p r i c e 
p a i d 
t o 
t h e 
s e l l e r . 
Thus, a j u r y q u e s t i o n 
i s p r e s e n t e d . 
A d d i t i o n a l l y , 
d e p e n d i n g on r e s o l u t i o n o f t h e above a m b i g u i t y , 
t h e 
e v i d e n c e i s i n c o n f l i c t 
as t o w h e t h e r S h e l t o n 
was 
a 
' l a n d o w n e r 
i n c l u d e d 
i n 
t h e 
p r o j e c t . ' 
B e c a u s e 
r e a s o n a b l e 
p e r s o n s can 
d i f f e r 
on t h e m e a n i n g o f 
t h e 
c l a u s e , 
i . e . , w h e t h e r t h e 
l a n g u a g e 
' p r i c e p e r 
a c r e 
p a i d t o any 
o t h e r l a n d o w n e r i n c l u d e d i n t h e p r o j e c t ' 
o b l i g a t e d 
t h e 
IDB 
t o 
pay 
t h e 
R u s s e l l s 
and 
t h e 
McLemore 
g r o u p 
$12,000 
p e r 
a c r e 
and 
w h e t h e r 
t h e 
S h e l t o n p r o p e r t y was 
i n c l u d e d as p a r t o f t h e 
p r o j e c t 
s i t e , 
t h e 
e v i d e n c e p r e s e n t s 
q u e s t i o n s 
f o r t h e 
j u r y 
t o r e s o l v e , and 
t h e summary j u d g m e n t f o r t h e 
IDB 
i s 
r e v e r s e d . " 
7 
So. 
3d 
a t 3 3 8 - 3 9 . 
B a s e d 
on 
o u r 
h o l d i n g 
i n McLemore, 
we 
l i k e w i s e 
h o l d 
i n 
t h i s 
c a s e 
t h a t 
t h e 
l a n g u a g e 
i n t h e 
o p t i o n 
a g r e e m e n t s 
i s 
a m b i g u o u s 
and 
t h a t 
t h e 
e v i d e n c e 
p r e s e n t s 
q u e s t i o n s 
f o r 
a 
j u r y 
t o 
r e s o l v e . 
T h e r e f o r e , 
t h e 
summary 
35 
1070484; 1070487; 1070514 
j u d g m e n t i n f a v o r o f t h e r e m a i n i n g 
p r o j e c t p a r t i c i p a n t s as 
t o 
S o u t h d a l e ' s and 
W h e e l e r / P h i l l i p s ' s b r e a c h - o f - c o n t r a c t 
c l a i m s 
must be 
r e v e r s e d . 
I V . Summary Judgment as t o F r a u d 
C l a i m s 
S e c t i o n 
6 - 2 - 3 8 ( l ) , 
A l a . Code 
1975, 
p r o v i d e s 
t h a t 
f r a u d 
c l a i m s 
a r e 
s u b j e c t 
t o a t w o - y e a r s t a t u t e o f 
l i m i t a t i o n s . 
" T h a t 
s t a t u t e 
o f 
l i m i t a t i o n s 
i s 
s u b j e c t 
t o 
t h e 
' s a v i n g 
c l a u s e ' 
p r o v i d e d 
by 
§ 
6 - 2 - 3 [ , 
A l a 
Code 
1 9 7 5 ] : 
" ' I n 
a c t i o n s 
s e e k i n g 
r e l i e f 
on 
t h e 
g r o u n d 
o f 
f r a u d 
where 
t h e 
s t a t u t e 
has 
c r e a t e d 
a 
b a r , 
t h e 
c l a i m 
must 
n o t 
be 
c o n s i d e r e d 
as 
h a v i n g 
a c c r u e d 
u n t i l 
t h e 
d i s c o v e r y 
by 
t h e 
a g g r i e v e d 
p a r t y 
o f 
t h e 
f a c t c o n s t i t u t i n g t h e f r a u d , a f t e r w h i c h 
he 
must 
h a v e 
two 
y e a r s 
w i t h i n 
w h i c h 
t o 
p r o s e c u t e 
h i s a c t i o n . ' " 
Ex 
p a r t e 
S e a b o l , 
782 
So. 
2d 
212, 
216 
( A l a . 2000 ). 
S e c t i o n 
6-2-3, A l a . Code 1975, 
s u p p l i e s an o b j e c t i v e t e s t , 
t o l l i n g 
t h e 
s t a t u t e 
o f 
l i m i t a t i o n s 
on 
a f r a u d 
c l a i m 
u n t i l 
t h e 
a g g r i e v e d 
p a r t y d i s c o v e r s o r , i n t h e e x e r c i s e o f r e a s o n a b l e 
c a r e , 
s h o u l d 
h a v e d i s c o v e r e d , 
t h e 
f a c t s c o n s t i t u t i n g t h e 
f r a u d . 
S e a b o l , 
782 
So. 
2d 
a t 
216; 
F o r e m o s t 
I n s . 
Co. 
v. Parham, 
6 
93 
So. 
2d 
409, 
421 
( A l a . 
1 9 9 7 ) . 
T h e r e f o r e , 
t h e 
l i m i t a t i o n s 
p e r i o d 
commences when t h e p l a i n t i f f d i s c o v e r s t h e f r a u d o r when f a c t s 
a r e known " ' w h i c h w o u l d p u t 
a r e a s o n a b l e 
m i n d on n o t i c e 
t h a t 
36 
1070484; 1070487; 1070514 
f a c t s 
t o 
s u p p o r t 
a c l a i m 
o f 
f r a u d m i g h t be 
d i s c o v e r e d 
upon 
i n q u i r y . ' " 
A u t o - O w n e r s I n s . 
Co. 
v. A b s t o n , 
822 
So. 
2d 
1187, 
1195 
( A l a . 2001) 
( q u o t i n g J e f f e r s o n C o u n t y T r u c k G r o w e r s A s s ' n  
v. T a n n e r , 341 
So. 
2d 
485, 
488 
( A l a . 1 9 7 7 ) ) . 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a r g u e 
t h a t 
t h e y 
d i d 
n o t 
g a i n k n o w l e d g e o f f a c t s t h a t w o u l d h a v e p u t 
a r e a s o n a b l e m i n d 
on 
n o t i c e 
t h a t 
t h e y 
s h o u l d 
i n q u i r e 
f u r t h e r 
i n t o 
t h e 
c i r c u m s t a n c e s 
o f 
t h e 
s a l e 
o f 
t h e 
S h e l t o n 
p r o p e r t y 
u n t i l 
a t 
l e a s t 
O c t o b e r 2002. 
T h e r e f o r e , 
t h e y a r g u e , 
t h e 
s t a t u t e 
o f 
l i m i t a t i o n s d i d n o t b e g i n t o r u n 
u n t i l O c t o b e r 2002, and 
t h e y 
f i l e d 
t h e i r 
i n i t i a l 
c o m p l a i n t 
i n May 
2004, w e l l 
w i t h i n 
t h e 
t w o - y e a r 
s t a t u t e 
o f 
l i m i t a t i o n s . 
The 
p r o j e c t 
p a r t i c i p a n t s 
a r g u e t h a t S o u t h d a l e and 
W h e e l e r / P h i l l i p s were p u t 
on 
n o t i c e 
as 
t o 
p o t e n t i a l 
f r a u d 
c l a i m s 
i n 
A p r i l 
2002 when 
G e o r g e 
n o t i f i e d t h e i r r e p r e s e n t a t i v e s 
t h a t CSX 
was 
g o i n g t o p u r c h a s e 
t h e 
S h e l t o n 
p r o p e r t y . 
T h e r e f o r e , 
t h e 
p r o j e c t 
p a r t i c i p a n t s 
a r g u e , t h e 
s t a t u t e o f 
l i m i t a t i o n s 
on 
t h e 
f r a u d 
c l a i m s 
r a n 
i n 
A p r i l 2004, and 
t h e 
c o m p l a i n t 
f i l e d 
t h e 
f o l l o w i n g month 
was 
u n t i m e l y . 
The 
t r i a l 
c o u r t 
c o n c l u d e d 
t h a t 
t h e 
s t a t u t e 
o f 
l i m i t a t i o n s b a r r e d 
t h e 
t o r t 
c l a i m s . 
A l t h o u g h 
M c K i n n e y , 
a 
s h a r e h o l d e r 
i n 
S o u t h d a l e , 
and 
W i l l i a m s , c o u n s e l 
f o r W h e e l e r / P h i l l i p s , were i n f o r m e d i n A p r i l 
37 
1070484; 1070487; 1070514 
2002 t h a t an o p t i o n had b e e n o b t a i n e d 
on t h e S h e l t o n 
p r o p e r t y , 
G e o r g e 
s h a r e d 
w i t h 
them 
h i s 
u n d e r s t a n d i n g 
t h a t 
CSX 
was 
t o 
p u r c h a s e 
t h a t 
p r o p e r t y 
as 
a 
t r a n s a c t i o n 
s e p a r a t e 
f r o m 
t h e 
H y u n d a i p r o j e c t . 
W i l l i a m s 
t e s t i f i e d t h a t he c o n t i n u e d 
t o s e e k 
i n f o r m a t i o n f r o m G e o r g e and M c N a i r f r o m A p r i l t h r o u g h O c t o b e r 
2002 i n an 
e f f o r t 
t o d i s c o v e r w h e t h e r t h e 
S h e l t o n 
o p t i o n 
had 
a c t u a l l y b e e n e x e r c i s e d a t more t h a n $4,500 p e r a c r e b u t 
t h a t 
he was 
met 
w i t h a "maze" o f c o n f u s i o n 
u n t i l O c t o b e r 2002, when 
M c N a i r 
r e f e r r e d 
h i m 
t o 
S c o t t 
A b n e y , 
one 
o f 
t h e 
l a w y e r s 
r e p r e s e n t i n g t h e S t a t e i n t h e H y u n d a i p r o j e c t . A b n e y 
r e v e a l e d 
t o W i l l i a m s 
t h a t 
t h e 
S t a t e , 
n o t 
CSX 
as 
had 
b e e n 
p r e v i o u s l y 
r e p r e s e n t e d , 
had p u r c h a s e d t h e S h e l t o n p r o p e r t y i n A u g u s t 2002 
f o r $12,000 p e r a c r e . 
W i l l i a m s t h e n s h a r e d h i s k n o w l e d g e w i t h 
M c K i n n e y . 
The p r o j e c t p a r t i c i p a n t s a r g u e t h a t M c K i n n e y and 
W i l l i a m s 
were p l a c e d 
on n o t i c e on A p r i l 
8, 2002, when G e o r g e gave them 
a c o p y o f t h e S h e l t o n 
o p t i o n a g r e e m e n t and 
i n f o r m e d them t h a t 
CSX 
w o u l d be e x e r c i s i n g t h e o p t i o n i n s t e a d o f t h e 
C i t y . 
They 
a l s o a r g u e t h a t M c K i n n e y and 
W i l l i a m s 
c o u l d have o b t a i n e d 
a 
c o p y o f t h e p r o j e c t a g r e e m e n t and 
r e a d 
t h e p r o v i s i o n i n 
t h a t 
document c o n c e r n i n g 
t h e 
S h e l t o n 
p r o p e r t y . 
A p u b l i c 
h e a r i n g 
was 
c o n d u c t e d t o a p p r o v e t h e 
p r o j e c t a g r e e m e n t , 
t h e 
p r o j e c t 
38 
1070484; 1070487; 1070514 
p a r t i c i p a n t s s a y , and W i l l i a m s , as an a t t o r n e y , and M c K i n n e y , 
as t h e p r o b a t e j u d g e f o r 
M o n t g o m e r y C o u n t y , were i n p o s i t i o n s 
i n w h i c h t h e y c o u l d h a v e l e a r n e d o f t h e m e e t i n g . 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a r g u e 
i n r e s p o n s e 
t h a t 
t h e 
p r o j e c t 
p a r t i c i p a n t s e n g a g e d i n an a c k n o w l e d g e d " p l o y " t o u s e CSX as 
a s t r a w p u r c h a s e r i n o r d e r t o a v o i d t h e e f f e c t o f t h e m o s t -
f a v o r e d - n a t i o n 
c l a u s e 
and 
t h a t 
t h i s 
" p l o y " 
was 
c a r e f u l l y 
h i d d e n f r o m them u n t i l 
s e v e r a l months a f t e r 
t h e y 
s o l d 
t h e i r 
p r o p e r t y f o r 
$4,500 p e r a c r e , r a t h e r t h a n t h e $12,000 p e r a c r e 
p a i d t o 
S h e l t o n . 
I n L i b e r t y N a t i o n a l L i f e I n s u r a n c e Co. v. P a r k e r , 703 So. 
2d 
307 
, 308 
( A l a . 1 
9 9 7 ) , 
t h i s 
C o u r t 
s t a t e d 
t h a t 
" [ t ] h e 
q u e s t i o n 
o f 
when 
t h e 
p a r t y 
d i s c o v e r e d 
o r 
s h o u l d 
h a v e 
d i s c o v e r e d 
t h e f r a u d i s g e n e r a l l y one f o r t h e j u r y . " 
The 
P a r k e r 
C o u r t 
c o n t i n u e d , 
q u o t i n g 
K e l l y v . C o n n e c t i c u t 
M u t u a l 
L i f e I n s u r a n c e Co., 628 So. 2d 454, 458 ( A l a . 1 9 9 3 ) : 
" ' " [ F ] r a u d 
i s d i s c o v e r a b l e 
as a m a t t e r o f  
l a w 
f o r p u r p o s e s 
o f 
t h e 
s t a t u t e 
o f 
l i m i t a t i o n s 
when 
one 
r e c e i v e s 
d o c u m e n t s 
t h a t w o u l d p u t one on s u c h n o t i c e t h a t t h e 
f r a u d r e a s o n a b l y s h o u l d be d i s c o v e r e d . " 
... 
H o w e v e r , ... d o c u m e n t s 
t h a t a r e v a g u e o r 
t h a t 
do n o t r e a s o n a b l y 
i n d i c a t e 
t h a t 
a 
f r a u d 
h a s 
o c c u r r e d , 
b a s e d 
on 
t h e 
c i r c u m s t a n c e s 
o f 
e a c h 
c a s e , 
w i l l 
n o t 
" w a r r a n t a f i n d i n g t h a t t h e f r a u d c l a i m i s 
b a r r e d as a m a t t e r o f l a w . " ' 
39 
1070484; 1070487; 1070514 
"628 
So. 2d a t 458 ( e m p h a s i s a d d e d ; o t h e r 
e m p h a s i s 
o m i t t e d ) 
( q u o t i n g H i c k o x v. S t o v e r , 551 So. 2d 259, 
262 
( A l a . 
1 9 8 9 ) ) . " 
( F o o t n o t e 
o m i t t e d . ) 
We 
r e c e n t l y 
a f f i r m e d 
t h e c o n c e p t 
t h a t 
when 
a 
p a r t y 
d i s c o v e r e d 
o r s h o u l d 
have 
d i s c o v e r e d 
f r a u d 
i s n o r m a l l y 
a 
q u e s t i o n f o r 
t h e j u r y . 
I n J o n e s v. A l f a M u t u a l I n s u r a n c e Co., 
1 So. 3d 23, 31 ( A l a . 2 0 0 8 ) , we s t a t e d : 
" A l f a n o t e s t h a t t h i s C o u r t h a s p r e v i o u s l y h e l d 
t h a t 
' " f r a u d i s d i s c o v e r a b l e as a m a t t e r o f l a w 
f o r 
p u r p o s e s 
o f t h e s t a t u t e o f 
l i m i t a t i o n s 
when one 
r e c e i v e s d o c u m e n t s t h a t w o u l d p u t one on s u c h n o t i c e 
t h a t t h e f r a u d 
r e a s o n a b l y 
s h o u l d be 
d i s c o v e r e d . " ' 
K e l l y v . C o n n e c t i c u t Mut. L i f e I n s . 
Co., 628 So. 2d 
454, 
458 ( A l a . 1993) ( q u o t i n g H i c k o x v . S t o v e r , 551 
So. 
2d 259, 262 
( A l a . 1 
98 
9 ) , 
o v e r r u l e d 
on 
o t h e r 
g r o u n d s , F o r e m o s t I n s . 
Co. v . Parham, 693 So. 2d 409 
( A l a . 
1 9 9 7 ) ) . 
The s e n t e n c e 
i m m e d i a t e l y 
p r e c e d i n g 
t h e 
a b o v e - q u o t e d 
s e n t e n c e 
f r o m 
K e l l y , 
h o w e v e r , 
s t a t e s : 
'"The q u e s t i o n o f when a p l a i n t i f f 
s h o u l d 
h a v e d i s c o v e r e d 
f r a u d s h o u l d be t a k e n away f r o m t h e 
j u r y a n d d e c i d e d 
as a m a t t e r o f l a w o n l y i n c a s e s 
where 
t h e p l a i n t i f f 
a c t u a l l y 
knew o f 
f a c t s 
t h a t 
w o u l d 
h a v e p u t a 
r e a s o n a b l e 
p e r s o n 
on 
n o t i c e o f 
f r a u d . " ' 
628 So. 2d a t 458 ( q u o t i n g H i c k s v. G l o b e  
L i f e 
& A c c . I n s . Co., 584 So. 2d 458 , 463 ( A l a . 
1 9 9 1 ) , 
o v e r r u l e d 
on 
o t h e r 
g r o u n d s , 
F o r e m o s t I n s .  
Co., 
s u p r a ) ; s e e a l s o G i l m o r e v. M & B R e a l t y Co., 
895 So. 2d 200, 210 
( A l a . 2004) 
( ' " ' [ t ] h e 
q u e s t i o n 
o f when a p a r t y d i s c o v e r e d o r s h o u l d have 
d i s c o v e r e d 
t h e f r a u d i s g e n e r a l l y one f o r 
t h e j u r y ' " ' 
( q u o t i n g 
Ex 
p a r t e 
S e a b o l , 
782 So. 2d 2 1 2 , 216 
( A l a . 2 0 0 0 ) , 
q u o t i n g 
i n t u r n 
L i b e r t y 
N a t ' l 
L i f e 
I n s . Co. v .  
P a r k e r , 703 So. 2d 307, 308 ( A l a . 
1 9 9 7 ) ) ) . " 
40 
1070484; 1070487; 1070514 
U n d e r t h e c i r c u m s t a n c e s 
o f t h i s c a s e , we c a n n o t s a y 
t h a t 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a c t u a l l y knew o f 
f a c t s 
t h a t 
w o u l d have p u t 
a r e a s o n a b l e 
p e r s o n on n o t i c e o f f r a u d . 
I t i s 
u n d i s p u t e d 
t h a t t h e y r e c e i v e d f r o m G e o r g e i n A p r i l 2002 a c o p y 
o f t h e 
S h e l t o n 
o p t i o n a g r e e m e n t , a document r u n n i n g 
i n 
f a v o r 
o f t h e C i t y and a s s i g n a b l e by t h e C i t y . 
However, t h e 
q u e s t i o n 
i s w h e t h e r t h a t document s h o u l d have a l e r t e d them t h a t a f r a u d 
had 
o c c u r r e d , 
e s p e c i a l l y 
when 
i t was 
a c c o m p a n i e d 
by 
t h e 
e x p l a n a t i o n 
G e o r g e t h o u g h t t o be 
t r u e b u t 
was 
n o t - - t h a t 
CSX 
was 
g o i n g t o buy 
t h e p r o p e r t y . 
We c a n n o t s a y t h a t t h e 
S h e l t o n 
o p t i o n a g r e e m e n t i s a document i n and o f i t s e l f t h a t w o u l d 
p u t 
one 
on 
n o t i c e 
o f 
t h e 
f r a u d 
h e r e 
a l l e g e d . 
M o r e o v e r , 
t h e 
a c c o m p a n y i n g e x p l a n a t i o n , w h i c h M c K i n n e y and 
W i l l i a m s 
had 
no 
r e a s o n a t t h e t i m e t o d o u b t , w o u l d l e a d a r e a s o n a b l e 
p e r s o n t o 
c o n c l u d e 
t h a t 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
was 
n o t 
i m p l i c a t e d b e c a u s e , upon t h e p u r c h a s e o f t h e 
S h e l t o n 
l a n d 
by 
 
CSX, 
S h e l t o n 
w o u l d 
n o t 
be 
a 
" l a n d o w n e r 
i n c l u d e d 
i n 
t h e 
p r o j e c t . " 
T h a t 
o t h e r 
d o c u m e n t s 
e x i s t e d o r w o u l d come 
i n t o 
e x i s t e n c e 
l a t e r t h a t w o u l d have a f f o r d e d s u c h n o t i c e does 
n o t 
a l t e r t h e s t a t u s o f t h e document t h e y s a w - - t h e S h e l t o n 
o p t i o n 
a g r e e m e n t - - a s 
a document 
i n s u f f i c i e n t 
t o 
p u t 
them 
on 
s u c h 
n o t i c e t h a t t h e f r a u d r e a s o n a b l y 
s h o u l d have b e e n 
d i s c o v e r e d . 
41 
1070484; 1070487; 1070514 
The 
f a c t s p r e s e n t e d 
a t t h e t i m e t h e 
e x i s t e n c e 
o f t h e 
S h e l t o n 
o p t i o n a g r e e m e n t was 
d i s c l o s e d t o M c K i n n e y and 
W i l l i a m s , 
as 
r e p r e s e n t a t i v e s 
o f 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s , 
r e s p e c t i v e l y , 
a r e 
n o t 
c o n s i s t e n t 
w i t h 
t h e 
u l t i m a t e 
f a c t s : 
t h a t CSX 
e n t e r e d 
i n t o a c o n t r a c t w i t h S h e l t o n 
f o r t h e s a l e 
o f 
t h e p r o p e r t y , w h i c h was 
t h e n a s s i g n e d 
t o H y u n d a i and 
e x e r c i s e d 
by 
i t , u s i n g 
f u n d s 
p r o v i d e d 
by 
t h e 
S t a t e . 
M c K i n n e y 
and 
W i l l i a m s were t h e r e f o r e n o t , 
a t t h a t t i m e , 
on n o t i c e o f 
f a c t s 
t h a t w o u l d have c a u s e d a l a r m when t h e y 
i n i t i a l l y 
l e a r n e d 
o f 
t h e 
S h e l t o n 
o p t i o n . 
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 
t h e 
q u e s t i o n 
o f 
when 
t h e 
f r a u d 
c l a i m s 
a l l e g e d 
by 
S o u t h d a l e and W h e e l e r / P h i l l i p s a c c r u e d i s a q u e s t i o n t h a t must 
be 
p r e s e n t e d 
t o a j u r y . 
T h e r e f o r e , 
t h e 
t r i a l 
c o u r t 
e r r e d 
i n 
e n t e r i n g 
t h e summary j u d g m e n t as 
t o t h e 
f r a u d 
c l a i m s 
on 
t h e 
b a s i s t h a t t h e y were b a r r e d 
by 
t h e 
s t a t u t e o f 
l i m i t a t i o n s . 
V. Summary Judgment as t o E a c h P r o j e c t 
P a r t i c i p a n t 
E v e n t h o u g h we 
have c o n c l u d e d 
t h a t w h e t h e r 
a b r e a c h 
o f 
c o n t r a c t 
o c c u r r e d 
and 
w h e t h e r t h e 
s t a t u t e o f 
l i m i t a t i o n s 
on 
t h e 
f r a u d 
c l a i m s 
was 
t o l l e d 
a r e 
j u r y 
q u e s t i o n s 
and 
t h a t 
t h e r e f o r e 
t h e 
t r i a l 
c o u r t 
e r r e d 
i n 
e n t e r i n g 
t h e 
summary 
j u d g m e n t s 
on 
t h o s e 
g r o u n d s , 
we 
may 
n e v e r t h e l e s s 
d e t e r m i n e 
w h e t h e r 
a summary 
j u d g m e n t 
i s 
a p p r o p r i a t e . 
T h i s 
C o u r t ' s 
42 
1070484; 1070487; 1070514 
r e v i e w 
i s n o t 
l i m i t e d t o t h e 
t r i a l c o u r t ' s r e a s o n i n g , 
and 
we 
can 
a f f i r m 
a 
summary 
j u d g m e n t 
on 
any 
v a l i d 
l e g a l 
g r o u n d 
p r e s e n t e d 
by 
t h e 
r e c o r d , w h e t h e r t h a t g r o u n d was 
c o n s i d e r e d 
by, 
o r e v e n 
i f i t was 
r e j e c t e d by, 
t h e 
t r i a l 
c o u r t , 
u n l e s s 
d u e - p r o c e s s c o n s t r a i n t s r e q u i r e o t h e r w i s e . 
L i b e r t y N a t ' l L i f e  
I n s . 
Co. 
v. U n i v e r s i t y o f A l a b a m a H e a l t h S e r v s . F o u n d . , 
P.C., 
881 
So. 
2d 
1013, 
1020 
( A l a . 2 0 0 3 ) . 
A. 
The 
C i t y 
The 
C i t y 
f i r s t 
a r g u e s t h a t 
t h e 
C i t y was 
n o t 
a p a r t y 
t o 
t h e 
o p t i o n a g r e e m e n t s e x e c u t e d by 
t h e 
IDB 
and 
t h e r e f o r e 
was 
n o t 
l i a b l e f o r b r e a c h o f c o n t r a c t b e c a u s e , i t a r g u e s , t h e 
IDB 
was 
n o t a c t i n g as t h e C i t y ' s a g e n t . 
U n d e r s u c h 
c i r c u m s t a n c e s , 
t h e 
C i t y s a y s , 
i t i s n o t 
l i a b l e u n d e r any 
b r e a c h - o f - c o n t r a c t 
t h e o r y . 
We 
d i s a g r e e . 
P u r s u a n t t o R e s o l u t i o n No. 
1 1 1 - 2 0 0 2 , 
a d o p t e d 
by 
t h e 
C i t y 
i n J u n e 2002 
i n 
c o n j u n c t i o n 
w i t h 
t h e 
H y u n d a i p r o j e c t , " t h e 
IDB 
d i d e x e r c i s e t h e p u r c h a s e 
o p t i o n s , 
b u t a s s i g n e d 
i t s r i g h t s t o p u r c h a s e t h e r e u n d e r t o t h e C i t y 
and 
M o n t g o m e r y C o u n t y ( t h e ' C o u n t y ' ) , 
and t h e C i t y and C o u n t y e a c h 
have 
i s s u e d 
d e b t 
t o 
p r o v i d e 
t h e 
n e c e s s a r y 
f u n d s 
and 
h a v e 
a c q u i r e d 
t h e 
P a r c e l s . " 
As 
t h e 
IDB's 
a s s i g n e e , 
t h e 
C i t y 
assumed 
t h e 
o b l i g a t i o n s 
and 
l i a b i l i t i e s 
o f 
t h e 
a s s i g n e d 
43 
1070484; 1070487; 
1070514 
c o n t r a c t s . 
M e i g h a n v . W a t t s C o n s t r . Co., 475 So. 2d 829, 834¬
35 ( A l a . 1 9 8 5 ) . 
The 
C i t y 
a l s o a r g u e s 
t h a t § 1 1 - 4 7 - 2 3 , A l a . Code 
1975, 
b a r s 
a l l c l a i m s a g a i n s t i t . S e c t i o n 11-47-23 
p r o v i d e s : 
" A l l 
c l a i m s 
a g a i n s t 
t h e m u n i c i p a l i t y 
( e x c e p t 
b o n d s and i n t e r e s t c o u p o n s and c l a i m s f o r damages) 
s h a l l be p r e s e n t e d 
t o t h e c l e r k f o r payment 
w i t h i n 
two y e a r s f r o m t h e a c c r u a l o f s a i d c l a i m o r s h a l l be 
b a r r e d . 
C l a i m s 
f o r damages g r o w i n g 
o u t o f 
t o r t s 
s h a l l 
be 
p r e s e n t e d 
w i t h i n 
s i x months 
f r o m 
t h e 
a c c r u a l t h e r e o f o r s h a l l be 
b a r r e d . " 
As 
t o t h e b r e a c h - o f - c o n t r a c t 
c l a i m s , 
t h e 
C i t y 
a r g u e s 
t h a t 
t h e 
b r e a c h 
o c c u r r e d 
more 
t h a n 
two 
y e a r s 
b e f o r e 
W h e e l e r / P h i l l i p s and S o u t h d a l e 
f i l e d 
t h e i r a c t i o n ; t h e r e f o r e , 
t h e C i t y a r g u e s , 
t h o s e 
c l a i m s a r e b a r r e d . 
I n so a r g u i n g , t h e 
C i t y assumes t h a t t h e c a u s e o f a c t i o n f o r b r e a c h 
o f c o n t r a c t 
a c c r u e d 
e i t h e r 
on M a r c h 29, 2002, when t h e S h e l t o n 
o p t i o n 
a g r e e m e n t was e x e c u t e d , 
o r on A p r i l 8, 2002, when t h e c o p y o f 
t h e 
S h e l t o n 
o p t i o n 
a g r e e m e n t 
was 
g i v e n 
t o 
W i l l i a m s 
and 
M c K i n n e y , o r on A p r i l 15, 2002, when t h e p r o j e c t a g r e e m e n t was 
s i g n e d , 
o r 
on 
May 
15, 
2002, 
when 
W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e 
c l o s e d t h e s a l e o f t h e i r 
l a n d . 
We 
c a n n o t 
a c c e p t 
any 
o f 
t h e 
a c c r u a l 
d a t e s 
t h e 
C i t y 
a s s u m e s . 
I n C i t y o f M o b i l e v . C o o k s , 915 So. 2d 29, 33 ( A l a . 
2 0 0 5 ) , we 
s t a t e d : 
44 
1070484; 1070487; 1070514 
"A c a u s e o f a c t i o n a c c r u e s u n d e r § 11-47-23 when 
an 
a c t i o n 
c a n be 
m a i n t a i n e d . 
C o u c h v . 
C i t y o f  
S h e f f i e l d , 708 So. 2d 144 
( A l a . 1 9 9 8 ) ; 
H i l l v. C i t y  
o f 
H u n t s v i l l e , 590 So. 2d 876 ( A l a . 
1 9 9 1 ) . 
T h i s 
C o u r t h a s s t a t e d t h e f o l l o w i n g w i t h 
r e g a r d t o when 
a c a u s e o f a c t i o n 
a c c r u e s : 
"'"The 
v e r y 
b a s i c 
and 
l o n g 
s e t t l e d 
r u l e o f c o n s t r u c t i o n o f o u r c o u r t s i s t h a t 
a s t a t u t e o f l i m i t a t i o n s b e g i n s t o r u n i n 
f a v o r o f t h e p a r t y 
l i a b l e f r o m t h e t i m e t h e 
c a u s e o f a c t i o n 
' a c c r u e s . ' 
The c a u s e o f  
a c t i o n 
' a c c r u e s ' 
as s o o n as t h e p a r t y i n  
whose 
f a v o r 
i t a r i s e s 
i s 
e n t i t l e d 
t o 
m a i n t a i n 
an a c t i o n 
t h e r e o n . " ' " 
( Q u o t i n g Ex p a r t e 
F l o y d , 
7 
96 So. 2d 303, 308 ( A l a . 
2 0 0 1 ) , 
q u o t i n g i n t u r n G a r r e t t v . R a y t h e o n Co., 368 So. 2d 516, 518¬
19 
( A l a . 1 9 7 9 ) . ) 
I t i s w e l l 
s e t t l e d t h a t a c a u s e o f a c t i o n 
f o r 
b r e a c h o f c o n t r a c t a c c r u e s when t h e c o n t r a c t i s b r e a c h e d . 
S t e p h e n s v . C r e e l , 429 So. 2d 278, 280 ( A l a . 1 9 8 3 ) . 
H e r e , i f 
a 
j u r y 
d e t e r m i n e s 
t h a t 
t h e W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e 
c o n t r a c t s 
were i n f a c t b r e a c h e d , 
t h e n t h e e a r l i e s t 
s u c h a 
b r e a c h c o u l d have o c c u r r e d 
w o u l d have b e e n A u g u s t 2002, when 
S h e l t o n 
c l o s e d on t h e s a l e o f h e r p r o p e r t y and was p a i d more 
t h a n W h e e l e r / P h i l l i p s and S o u t h d a l e h a d b e e n p a i d f o r t h e i r 
p r o p e r t y . 
W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e 
f i l e d 
t h e i r 
c o m p l a i n t i n May 2004, w e l l w i t h i n two y e a r s o f t h e d a t e on 
w h i c h 
t h e i r c a u s e o f a c t i o n f o r b r e a c h o f c o n t r a c t 
a c c r u e d . 
T h i s 
C o u r t h a s h e l d 
t h a t t h e f i l i n g 
o f an a c t i o n w i t h i n t h e 
45 
1070484; 1070487; 1070514 
s i x - m o n t h 
p e r i o d 
i n w h i c h 
a 
t o r t 
c l a i m 
must be 
f i l e d 
was 
s u f f i c i e n t p r e s e n t m e n t o f t h e c l a i m t o c o m p l y w i t h § 
1 1 - 4 7 - 2 3 . 
D i e m e r t 
v. 
C i t y 
o f 
M o b i l e , 
474 
So. 
2d 
663 
( A l a . 1 
9 8 5 ) . 
L i k e w i s e , 
t h e 
f i l i n g 
o f t h e 
a c t i o n by 
W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e 
w i t h i n 
t h e t w o - y e a r 
p e r i o d 
i n w h i c h a b r e a c h - o f -
c o n t r a c t 
c l a i m must be 
f i l e d was 
s u f f i c i e n t p r e s e n t m e n t o f t h e 
c l a i m 
t o 
c o m p l y 
w i t h 
§ 
1 1 - 4 7 - 2 3 . 
The 
b r e a c h - o f - c o n t r a c t 
c l a i m s 
a g a i n s t 
t h e C i t y a r e n o t b a r r e d 
by § 
1 1 - 4 7 - 2 3 . 
We 
t u r n now 
t o t h e t o r t 
c l a i m s . 
T h i s C o u r t has 
h e l d : 
"Some 
p r e s e n t a t i o n 
o f 
t h e 
c l a i m 
w i t h i n 
s i x 
months o f i t s a c c r u a l i s m a n d a t o r y . 
F r a z i e r v. C i t y  
o f M o b i l e , 
577 So. 2d 439 
( A l a . 1 9 9 1 ) . 
A c a u s e o f 
a c t i o n a c c r u e s as s o o n as t h e p a r t y 
i n whose 
f a v o r 
i t a r i s e s i s e n t i t l e d t o m a i n t a i n an a c t i o n t h e r e o n . 
B u c k v. 
C i t y o f R a i n s v i l l e , 572 
So. 
2d 
419 ( A l a . 
1 9 9 0 ) . 
I n D i e m e r t v. C i t y o f M o b i l e , 
474 So. 2d 
663 
( A l a . 
1 9 8 5 ) , we 
h e l d 
t h a t 
t h e 
f i l i n g 
o f an 
a c t i o n 
w i t h i n 
t h e 
s i x - m o n t h 
p e r i o d 
was 
s u f f i c i e n t 
p r e s e n t m e n t o f t h e c l a i m t o c o m p l y w i t h §§ 11-47-23 
and -192, D i e m e r t , a t 
666." 
H i l l v. C i t y o f H u n t s v i l l e , 590 So. 2d 876, 876 
( A l a . 1 9 9 1 ) . 
I n I v o r y v. F i t z p a t r i c k , 445 So. 2d 262, 264 
( A l a . 1 9 8 4 ) , 
we 
n o t e d t h a t t h e n o t i c e - o f - c l a i m s t a t u t e i s n o t m e r e l y a s t a t u t e 
o f 
l i m i t a t i o n s , b u t i s "a s t a t u t e o f n o n c l a i m s i m i l a r t o t h e 
p r o b a t e n o n c l a i m s t a t u t e . " 
F u r t h e r m o r e , a m u n i c i p a l i t y c a n n o t 
be 
h e l d 
l i a b l e 
f o r t h e 
i n t e n t i o n a l t o r t s o f i t s e m p l o y e e s . 
46 
1070484; 1070487; 1070514 
See 
§ 
1 1 - 4 7 - 1 9 0 , 
A l a . 
Code 
1975; 
Cremeens 
v. 
C i t y 
o f 
 
M o n t g o m e r y, 779 
So. 
2d 
1190 
( A l a . 2 0 0 0 ) . 
I t 
i s 
u n d i s p u t e d 
t h a t 
n e i t h e r 
S o u t h d a l e 
n o r 
W h e e l e r / P h i l l i p s 
p r e s e n t e d 
a 
c l a i m 
t o 
t h e 
C i t y 
u n t i l 
t h e y 
f i l e d 
t h e i r 
c o m p l a i n t . 
T h i s 
f a i l u r e 
t o 
f i l e 
t h e 
s t a t u t o r i l y 
m a n d a t e d c l a i m w i t h i n s i x months a c t s 
as 
a p r o c e d u r a l 
b a r 
t o 
a l l 
t o r t 
c l a i m s 
a g a i n s t 
t h e 
C i t y . 
The 
summary 
j u d g m e n t 
e n t e r e d 
i n i t s f a v o r 
as 
t o S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s ' s 
t o r t c l a i m s 
i s due 
t o be 
a f f i r m e d on 
t h i s a l t e r n a t i v e g r o u n d ; 
h o w e v e r , t h e summary j u d g m e n t e n t e r e d 
i n i t s f a v o r 
as 
t o 
t h e 
b r e a c h - o f - c o n t r a c t 
c l a i m i s r e v e r s e d 
f o r t h e r e a s o n s s t a t e d i n 
P a r t 
I I I o f 
t h i s 
o p i n i o n .
7 
B. 
B r i g h t 
S o u t h d a l e and W h e e l e r / P h i l l i p s a r g u e t h a t t h e 
t r i a l 
c o u r t 
e r r e d i n e n t e r i n g a summary j u d g m e n t i n B r i g h t ' s f a v o r on 
t h e 
b a s i s 
o f h i s S t a t e - a g e n t i m m u n i t y . 
B r i g h t c o n t e n d s t h a t 
t h e 
t r i a l 
c o u r t 
c o r r e c t l y 
c o n c l u d e d 
t h a t 
he 
i s 
e n t i t l e d 
t o 
i m m u n i t y i n h i s 
i n d i v i d u a l 
c a p a c i t y . 
7On 
r e h e a r i n g , 
t h e C i t y a r g u e s t h a t i t i s e n t i t l e d t o same 
i m m u n i t y t h a t i s a c c o r d e d t h e 
IDB. 
B e c a u s e t h i s a r g u m e n t 
was 
r a i s e d f o r t h e 
f i r s t 
t i m e on r e h e a r i n g , 
we c a n n o t c o n s i d e r i t . 
D e n n i s v. N o r t h c u t t , 
923 
So. 
2d 
275 
( A l a . 2 0 0 5 ) . 
47 
1070484; 1070487; 1070514 
S o u t h d a l e and W h e e l e r / P h i l l i p s 
r e l y on Ex p a r t e Cranman, 
792 So. 2d 392 ( A l a . 2 0 0 0 ) , i n w h i c h t h i s C o u r t r e s t a t e d t h e 
r u l e g o v e r n i n g S t a t e - a g e n t i m m u n i t y .
8 
The C o u r t a l s o 
s t a t e d 
i n Cranman e x c e p t i o n s 
t o t h a t 
r u l e , 
i . e . , when a S t a t e 
a g e n t 
i s n o t e n t i t l e d t o i m m u n i t y : 
" N o t w i t h s t a n d i n g 
a n y t h i n g t o t h e c o n t r a r y i n t h e 
f o r e g o i n g s t a t e m e n t o f t h e r u l e , a S t a t e a g e n t 
s h a l l  
n o t be immune f r o m 
c i v i l 
l i a b i l i t y 
i n h i s o r h e r 
p e r s o n a l 
c a p a c i t y 
f i 
" ( 2 ) 
when 
t h e 
S t a t e 
a g e n t 
a c t s 
w i l l f u l l y , 
m a l i c i o u s l y , 
f r a u d u l e n t l y , i n b a d f a i t h , b e y o n d h i s 
o r h e r a u t h o r i t y , o r u n d e r a m i s t a k e n i n t e r p r e t a t i o n 
o f t h e 
l a w . " 
792 
So. 2d a t 405. 
S o u t h d a l e and W h e e l e r / P h i l l i p s 
c o n t e n d 
t h a t B r i g h t , i n o b t a i n i n g t h e o p t i o n on t h e S h e l t o n 
p r o p e r t y , 
i s 
n o t e n t i t l e d 
t o i m m u n i t y 
b e c a u s e , 
t h e y 
s a y , he 
a c t e d 
w i l l f u l l y , m a l i c i o u s l y , f r a u d u l e n t l y , i n 
b a d f a i t h , and b e y o n d 
h i s 
a u t h o r i t y . 
B r i g h t 
t e s t i f i e d as f o l l o w s i n h i s d e p o s i t i o n 
c o n c e r n i n g 
h i s a u t h o r i t y t o o b t a i n t h e o p t i o n f r o m S h e l t o n on b e h a l f o f 
t h e 
C i t y : 
8Ex p a r t e Cranman, 792 So. 2d 392 ( A l a . 2 0 0 0 ) , was d e c i d e d 
by a p l u r a l i t y o f t h i s C o u r t . 
I n Ex p a r t e 
B u t t s , 775 So. 2d 
173 
( A l a . 2 0 0 0 ) , t h e C o u r t a d o p t e d t h e t e s t f o r S t a t e - a g e n t 
i m m u n i t y a n n o u n c e d i n Cranman. 
48 
1070484; 1070487; 1070514 
"Q. 
B e f o r e 
you went o u t and met w i t h - - a n d 
s i g n e d 
t h e 
S h e l t o n 
o p t i o n 
c o n t r a c t , 
d i d you 
g e t 
c o u n c i l 
a p p r o v a l 
t o b u y 
t h a t 
p r o p e r t y 
b e f o r e 
you went o u t 
t h e r e ? 
f i 
"A. 
T h a t 
m o r n i n g , 
no. 
S p e c i f i c a l l y 
t o do 
t h a t 
t r a n s a c t i o n , n o t - -
"Q. 
Okay. 
"A. 
- - t h a t I 
r e c a l l . 
"Q. 
And I d i d t h e math, and I'm 
r o u n d i n g up 
h e r e . 
B u t 93 a c r e s a t $12,000 an a c r e was a b o u t a 1.1 
m i l l i o n - d o l l a r 
commitment. 
Does 
t h a t 
s o u n d 
a b o u t r i g h t ? 
"A. 
I f y o u r numbers a r e r i g h t , 
y e a h . 
"Q. 
I n o r d e r 
t o s p e n d 
1.1 
m i l l i o n 
o f t h e C i t y ' s 
money 
t o 
buy 
l a n d , 
w o u l d 
you 
h a v e 
n e e d e d 
a u t h o r i z a t i o n f r o m t h e c i t y 
c o u n c i l ? 
f i 
"A. 
Y e a h , 
w o u l d 
I - - 
I 
c o u l d 
h a v e 
g o t t e n 
i t 
a f t e r w a r d s . 
f i 
"Q. 
B u t i f I'm 
f o l l o w i n g y o u r t e s t i m o n y , 
when you 
went o u t t h e r e t h a t day ... t o g e t t h a t 
o p t i o n , 
you 
w e r e n ' t 
r e a l l y 
c o n c e r n e d a b o u t 
t h e money 
b e c a u s e 
you knew somebody 
e l s e was 
g o i n g 
t o 
a c t u a l l y p a y f o r i t ? 
"A. 
R i g h t . 
I f e l t t h e y w o u l d . 
"Q. 
So w o u l d 
i t be 
f a i r 
t o s a y , t h e n , 
you were 
g e t t i n g t h i s o p t i o n e i t h e r f o r t h e S t a t e o r f o r 
CSX? 
49 
1070484; 1070487; 1070514 
"A. 
I was 
g e t t i n g 
an 
o p t i o n . 
I d i d n ' t know who 
I 
was 
g e t t i n g 
i t 
f o r . 
And 
I 
was 
s i g n i n g 
on 
b e h a l f 
o f t h e mayor. 
"Q. 
B u t 
you 
knew 
you 
w e r e n ' t 
g e t t i n g 
i t f o r 
t h e 
C i t y ? 
"A. 
I knew I was 
c o m m i t t i n g t h e 
C i t y , 
t o o , 
b e c a u s e 
I was 
p u t t i n g my name as mayor on 
t h e r e . 
"Q. 
You 
d i d n ' t 
have 
t h e 
a u t h o r i t y 
t o 
do 
t h a t 
f o r 
t h e 
C i t y , 
d i d you? 
"A. 
To 
my 
k n o w l e d g e , 
i t had 
n o t 
gone 
b e f o r e 
t h e 
c i t y c o u n c i l s p e c i f i c a l l y f o r t h i s 
t r a n s a c t i o n . 
Now, 
t h e r e 
may 
be 
a r e s o l u t i o n o u t 
t h e r e 
g i v i n g 
me 
g e n e r a l 
a u t h o r i t y t o n e g o t i a t e 
c o n t r a c t s , 
o r 
a s t a t u t e , 
as p a r t 
o f my 
j o b 
as 
t h e mayor. 
So 
t h a t 
may 
be 
o u t 
t h e r e 
t h a t 
I'm 
n o t 
e v e n aware 
a b o u t 
a t 
t h i s 
p o i n t . 
I 
n e e d 
t o 
do 
some 
r e s e a r c h 
t o d e t e r m i n e 
t h a t . 
"Q. 
The 
day 
you 
went 
o u t 
t h e r e 
t o 
do 
t h a t , 
i t 
s o u n d s t o me 
l i k e you knew you w e r e n ' t s p e n d i n g 
t h e 
C i t y ' s money when you 
g o t 
t h a t 
o p t i o n . 
"A. 
You 
d o n ' t know t h a t . 
I d i d n ' t know t h a t . 
A l l 
I know, t h i s 
was 
c r i t i c a l 
and 
i m p o r t a n t 
t o 
me 
as mayor 
t o 
d e l i v e r 
on 
b e h a l f 
o f 
t h e 
C i t y 
an 
o p t i o n 
t o 
t i e t h i s 
p r o p e r t y 
down 
t o make 
t h e 
d e a l . " 
B r i g h t 
t e s t i f i e d 
t h a t 
he 
had 
n e v e r s e e n t h e 
e - m a i l 
f r o m 
H e m p h i l l ; he 
t h e n 
t e s t i f i e d : 
"Q. 
... 
[ I ] f you 
had 
b e e n g i v e n 
t h i s 
e - m a i l 
[ f r o m 
H e m p h i l l ] , 
w o u l d 
you 
have c h a n g e d 
t h e 
way 
you 
h a n d l e d 
t h i s ? 
f l 
50 
1070484; 1070487; 1070514 
"A. L e t me a n s w e r . 
No. 
T h i s was i m p o r t a n t 
f o r 
us 
t o make t h i s f o r 
o u r S t a t e , and I t h o u g h t i t - ¬
t h i s 
was 
n o t h i n g 
s i g n i f i c a n t 
t h a t 
h a d any 
i m p r e s s i o n on m e - - i m p a c t on me w h a t s o e v e r . 
We 
had 
p a i d - - o r 
t h e IDB h a d p a i d t h e l a n d o w n e r s 
d o u b l e what i t 
was w o r t h a l r e a d y , and t h i s was 
an 
1 1 t h - h o u r 
t r a n s a c t i o n 
t o make 
t h e 
d e a l 
h a p p e n . 
E v e r y b o d y h a s g o t t o keep t h a t i n 
t h e 
f o c u s . " 
The 
f o r e g o i n g 
t e s t i m o n y 
s e r v e s as s u b s t a n t i a l e v i d e n c e 
t h a t 
B r i g h t was a c t i n g b e y o n d h i s a u t h o r i t y . 
A l t h o u g h B r i g h t d e n i e d 
t h a t he was aware t h a t t h e o p t i o n 
a g r e e m e n t s on t h e p a r c e l s 
o t h e r 
t h a n t h e S h e l t o n 
p r o p e r t y 
c o n t a i n e d a m o s t - f a v o r e d - n a t i o n c l a u s e , 
t h e r e i s s u b s t a n t i a l 
e v i d e n c e 
i n d i c a t i n g 
t h a t he was aware o f t h e c l a u s e i n 
t h e 
o t h e r o p t i o n a g r e e m e n t s , o f t h e c o n s e q u e n c e s o f t r i g g e r i n g i t , 
and o f h i s 
p a r t i c i p a t i o n i n 
t h e e f f o r t t o c i r c u m v e n t i t . U n d e r 
t h e c i r c u m s t a n c e s , 
he i s 
n o t e n t i t l e d t o i m m u n i t y as a m a t t e r 
o f 
l a w . 
The 
t r i a l 
c o u r t 
e r r e d 
i n e n t e r i n g 
t h e summary 
j u d g m e n t as t o t h e c l a i m s 
a g a i n s t 
B r i g h t i n h i s 
i n d i v i d u a l 
c a p a c i t y , and t h a t j u d g m e n t i s due t o be 
r e v e r s e d .
9 
9On r e h e a r i n g , 
B r i g h t a r g u e s t h a t b e c a u s e a l l a c t i o n s he 
t o o k i n c o n n e c t i o n 
w i t h o b t a i n i n g t h e o p t i o n were t a k e n i n h i s 
c a p a c i t y as mayor, no c l a i m s a c c r u e d a g a i n s t h i m i n d i v i d u a l l y ; 
t h a t any t o r t 
c l a i m s 
a g a i n s t h i m a r e b a r r e d by § 11-47-23 
b e c a u s e he was a t a l l t i m e s a c t i n g i n h i s c a p a c i t y as mayor; 
and t h a t he i s 
n o t a m e n a b l e t o s u i t i n 
h i s i n d i v i d u a l 
c a p a c i t y 
f o r 
t h e same 
r e a s o n s 
as J o s e p h 
i s n o t . 
B e c a u s e 
t h e s e 
a r g u m e n t s were 
r a i s e d f o r t h e f i r s t 
t i m e on r e h e a r i n g , 
we 
51 
1070484; 1070487; 1070514 
B e c a u s e B r i g h t i s no l o n g e r t h e mayor o f t h e C i t y , t h e 
c l a i m s 
a g a i n s t h i m i n 
h i s o f f i c i a l c a p a c i t y a r e moot. 
C. S t r a n g e 
The May 2004 c o m p l a i n t 
a l l e g e d t h a t t h e d e f e n d a n t s named 
i n t h a t c o m p l a i n t 
c o n s p i r e d t o p u r c h a s e t h e S h e l t o n 
p r o p e r t y 
a t a h i g h e r 
p r i c e 
t h a n 
t h a t 
p a i d t o W h e e l e r / P h i l l i p s a n d 
S o u t h d a l e i n o r d e r t o a v o i d c o m p l y i n g w i t h t h e m o s t - f a v o r e d -
n a t i o n c l a u s e i n 
t h e o p t i o n a g r e e m e n t s f o r 
t h e o t h e r 
p a r c e l s . 
S t r a n g e was n o t named as a d e f e n d a n t i n t h a t c o m p l a i n t . 
The 
c o m p l a i n t 
d o e s name a f i c t i t i o u s d e f e n d a n t "A," d e s c r i b e d as 
" t h o s e 
i n d i v i d u a l s [ w h e t h e r 
s i n g u l a r o r p l u r a l ] who made 
m i s r e p r e s e n t a t i o n s 
o r 
p a r t i c i p a t e d 
i n 
m a k i n g 
m i s r e p r e s e n t a t i o n s 
t o t h e p l a i n t i f f s 
r e l a t i n g t o t h e s a l e o r 
p u r c h a s e o f t h e p r o p e r t y 
a t i s s u e i n t h i s 
c a s e . " 
I n t h e 
s e c o n d 
amended 
c o m p l a i n t , 
W h e e l e r / P h i l l i p s 
a n d 
S o u t h d a l e 
s u b s t i t u t e d 
S t r a n g e a n d o t h e r s 
f o r f i c t i t i o u s 
d e f e n d a n t A. 
S t r a n g e a r g u e s t h a t he was named as a d e f e n d a n t more t h a n two 
y e a r s 
a f t e r t h e s t a t u t e o f l i m i t a t i o n s h a d e x p i r e d i n t h i s 
c a s e a n d t h a t as t o h i m t h e amendment d o e s n o t r e l a t e b a c k t o 
t h e 
o r i g i n a l d a t e o f t h e p l e a d i n g . 
The t r i a l 
c o u r t ' s summary 
c a n n o t 
c o n s i d e r 
them. 
D e n n i s v. N o r t h c u t t , 
923 So. 2d 275 
( A l a . 
2 0 0 5 ) . 
52 
1070484; 1070487; 1070514 
j u d g m e n t i n f a v o r o f t h e p r o j e c t p a r t i c i p a n t s was g r o u n d e d on 
t h e e x p i r a t i o n o f t h e s t a t u t e o f 
l i m i t a t i o n s . 
I n t h e i r p r i n c i p a l b r i e f s , W h e e l e r / P h i l l i p s and 
S o u t h d a l e 
a r g u e t h a t when t h e s t a t u t e o f l i m i t a t i o n s 
as t o f r a u d b e g a n 
t o r u n s h o u l d be a q u e s t i o n 
f o r t h e j u r y . 
We 
have so 
h e l d . 
H o w e v e r , 
W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e 
d i d 
n o t 
a d d r e s s 
S t r a n g e ' s 
r e l a t i o n - b a c k 
a r g u m e n t i n t h e i r 
p r i n c i p a l 
b r i e f s . 
I n s t e a d , 
t h e y a r g u e f o r t h e 
f i r s t 
t i m e i n t h e i r 
r e p l y 
b r i e f s 
t h a t t h e i r s u b s t i t u t i o n o f S t r a n g e as a d e f e n d a n t i n F e b r u a r y 
2005 was 
p r o p e r . 
U n l e s s 
we 
c a n 
c o n c l u d e 
t h a t 
t h e 
t r i a l 
c o u r t ' s 
o r d e r 
e n t e r i n g a summary j u d g m e n t on t h e b a s i s o f t h e e x p i r a t i o n o f 
t h e s t a t u t e o f l i m i t a t i o n s does n o t i n v o l v e i t s r e j e c t i o n 
o f 
t h e 
a v a i l a b i l i t y 
o f 
t h e 
d o c t r i n e 
o f 
r e l a t i o n 
b a c k 
o f 
t h e 
s e c o n d 
amended c o m p l a i n t , we 
c a n n o t 
r e a c h an 
i s s u e 
o m i t t e d 
f r o m 
W h e e l e r / P h i l l i p s ' s 
and 
S o u t h d a l e ' s 
p r i n c i p a l 
b r i e f s . 
T h i s 
C o u r t , i n L l o y d N o l a n d 
F o u n d a t i o n , 
I n c . v. 
H e a l t h S o u t h 
C o r p . , 979 So. 2d 784, 
797 n.3 
( A l a . 2 0 0 7 ) , 
s t a t e d : 
"The 
F o u n d a t i o n ' s 
o r i g i n a l b r i e f 
t o t h i s 
C o u r t 
a d d r e s s e s 
o n l y 
t h e 
i s s u e s 
o f 
r e s 
j u d i c a t a 
and 
c o l l a t e r a l e s t o p p e l . 
H e a l t h S o u t h ' s 
b r i e f 
a d d r e s s e s 
t h o s e 
i s s u e s , as w e l l as t h e f o u r g r o u n d s 
a s s e r t e d 
i n i t s m o t i o n 
t o d i s m i s s . 
I n i t s r e p l y b r i e f , 
t h e 
F o u n d a t i o n 
a d d r e s s e s 
t h e 
a d d i t i o n a l g r o u n d s 
a r g u e d 
by 
H e a l t h S o u t h . 
T h i s 
c o m p o r t s 
w i t h 
t h i s 
C o u r t ' s 
53 
1070484; 1070487; 1070514 
i n t e r p r e t a t i o n 
o f 
t h e 
r u l e s 
o f 
a p p e l l a t e 
r e v i e w . 
See 
P a v i l i o n 
Dev., 
LLC 
v. 
J B J P ' s h i p , 
979 
So. 
2d 
24 
( A l a . 2007) (where t h e 
t r i a l 
c o u r t 
s p e c i f i e s 
a b a s i s 
f o r 
i t s 
r u l i n g , 
t h e 
a p p e l l a n t 
d o e s 
n o t 
w a i v e 
a d d i t i o n a l 
a r g u m e n t s n o t a d d r e s s e d i n i t s p r i n c i p a l 
b r i e f ) . " 
( E m p h a s i s added.) 
B e c a u s e W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e 
d i d 
n o t 
a d d r e s s 
t h e 
d o c t r i n e 
o f 
r e l a t i o n b a c k i n t h e i r 
p r i n c i p a l 
b r i e f s , 
and 
b e c a u s e we 
c a n n o t c o n c l u d e t h a t 
t h e 
a v a i l a b i l i t y 
o f 
r e l a t i o n 
b a c k 
i s an 
a d d i t i o n a l 
a r g u m e n t 
s e p a r a t e 
f r o m 
t h e 
s p e c i f i e d 
b a s i s f o r t h e 
t r i a l c o u r t ' s 
r u l i n g , we must a f f i r m t h e summary 
j u d g m e n t as t o S t r a n g e i n h i s i n d i v i d u a l c a p a c i t y on t h e 
b a s i s 
t h a t 
h i s 
s u b s t i t u t i o n 
as 
a d e f e n d a n t 
i n t h e 
s e c o n d amended 
c o m p l a i n t d i d n o t 
r e l a t e b a c k t o t h e 
o r i g i n a l c o m p l a i n t , 
and, 
t h e r e f o r e , 
as 
t o 
h i m , 
t h e 
s t a t u t e 
o f 
l i m i t a t i o n s 
had 
r u n . 
B e c a u s e we 
a f f i r m 
t h e summary j u d g m e n t as 
t o S t r a n g e on 
t h i s 
b a s i s , we n e e d n o t a d d r e s s t h e r e m a i n i n g a r g u m e n t s as t o 
h i m . 
As t o t h e c l a i m s a g a i n s t S t r a n g e i n h i s o f f i c i a l 
c a p a c i t y 
as t h e mayor o f t h e C i t y , 
t h e c l a i m s s o u n d i n g i n t o r t a r e moot 
f o r 
t h e 
r e a s o n s 
s t a t e d 
i n P a r t 
V.A. 
The 
b r e a c h - o f - c o n t r a c t 
c l a i m s 
a r e 
n o t moot, and 
t h e y r e m a i n p e n d i n g . 
To 
t h e 
e x t e n t 
S t r a n g e 
i s 
a 
n e c e s s a r y 
p a r t y 
i n 
h i s 
o f f i c i a l 
c a p a c i t y 
t o 
54 
1070484; 1070487; 1070514 
e f f e c t u a t e 
any 
j u d g m e n t 
i n 
f a v o r 
o f 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a g a i n s t 
t h e 
C i t y , 
he r e m a i n s 
i n v o l v e d . 
D. 
The 
C o u n t y and 
t h e C o u n t y C o m m i s s i o n 
S e c t i o n 1 1 - 1 - 2 , A l a . Code 1975, 
p r o v i d e s : 
" E v e r y c o u n t y 
i s a b o d y c o r p o r a t e , 
w i t h power t o sue 
o r be s u e d i n any 
c o u r t 
o f 
r e c o r d . " 
A 
c o u n t y 
i s n o t 
immune f r o m 
s u i t , 
t h e r e f o r e , 
b e c a u s e 
i t i s 
a g o v e r n m e n t a l 
e n t i t y . 
However, 
a l l 
c l a i m s 
a g a i n s t 
a c o u n t y , w h e t h e r i n t o r t o r i n c o n t r a c t , must c o m p l y 
w i t h t h e r e q u i r e m e n t o f a p r e s e n t m e n t o f an i t e m i z e d , 
v e r i f i e d 
c l a i m t o t h e c o u n t y c o m m i s s i o n . 
As 
t h i s C o u r t s t a t e d i n Cook 
v. 
S t . 
C l a i r C o u n t y , 384 
So. 
2d 
1, 
5 
( A l a . 1 9 8 0 ) : 
" T h e r e 
i s no 
r e s t r i c t i o n 
t o 
t h e 
t y p e 
o f 
s u i t 
t h a t 
may 
be 
b r o u g h t 
a g a i n s t 
t h e 
c o u n t y - - t o r t 
o r 
c o n t r a c t . 
The 
o n l y 
r e q u i r e m e n t s 
t h a t must be 
met 
r e g a r d i n g 
a s u i t 
a g a i n s t 
a c o u n t y a r e 
s e t o u t 
i n 
§§ 
6 - 5 - 2 0 ( a ) , 1 1 - 1 2 - 5 , 1 1 - 1 2 - 6 , and 
11-12-8, Code 
1975 
r e q u i r i n g 
p r e s e n t m e n t 
o f 
an 
i t e m i z e d , 
v e r i f i e d 
c l a i m , t o t h e c o u n t y c o m m i s s i o n w i t h i n t w e l v e months 
o f a c c r u a l , and 
a c t e d on w i t h i n n i n e t y d a y s p r i o r 
t o 
commencement o f t h e 
s u i t . " 
I t 
i s 
u n d i s p u t e d 
t h a t 
n e i t h e r 
S o u t h d a l e 
n o r 
W h e e l e r / P h i l l i p s p r e s e n t e d a c l a i m t o t h e C o u n t y C o m m i s s i o n a t 
any 
t i m e . 
T h i s 
f a i l u r e t o 
f i l e t h e 
s t a t u t o r i l y m a n d a t e d c l a i m 
a c t s as a p r o c e d u r a l 
b a r 
t o a l l c l a i m s 
a g a i n s t 
t h e C o u n t y 
and 
t h e C o u n t y C o m m i s s i o n . 
The summary j u d g m e n t e n t e r e d 
i n 
t h e i r 
f a v o r 
i s due 
t o be 
a f f i r m e d 
on 
t h i s 
a l t e r n a t i v e 
g r o u n d . 
55 
1 0 7 0 4 8 4 ; 1 0 7 0 4 8 7 ; 1070514 
E. 
J o s e p h 
A l a b a m a l a w i s c l e a r 
t h a t a c o u n t y c o m m i s s i o n e r c a n n o t 
be 
s u e d 
i n h i s o r h e r 
i n d i v i d u a l 
c a p a c i t y . 
I n S m i t h e r m a n 
v. 
 
M a r s h a l l C o u n t y C o m m i s s i o n , 
746 So. 2d 1001, 1004 
( A l a . 1 9 9 9 ) , 
t h e C o u r t 
s t a t e d : 
"We 
f i r s t 
c o n s i d e r t h e t r i a l c o u r t ' s r u l i n g 
t h a t 
t h e c o u n t y c o m m i s s i o n e r s and t h e c o u n t y e n g i n e e r a r e 
n o t a m e n a b l e t o s u i t i n t h e i r 
i n d i v i d u a l 
c a p a c i t i e s . 
The 
t r i a l 
c o u r t 
r e l i e d on Cook v. S t . C l a i r 
C o u n t y , 
384 
So. 2d 1 ( A l a . 1 9 8 0 ) , i n w h i c h 
t h i s C o u r t 
h e l d : 
" ' C o u n t i e s 
a r e 
a m e n a b l e 
t o 
s u i t 
i n 
t o r t 
u n d e r 
Code 
o f 
A l a b a m a , 
1975, 
§ 
1 1 - 1 - 2 . 
B e c a u s e 
c o u n t i e s , as b o d i e s c o r p o r a t e , 
a c t 
t h r o u g h t h e i r g o v e r n i n g b o d i e s , 
t h e c o u n t y 
[ c o m m i s s i o n s , 
t h e ] c o m m i s s i o n e r s 
l i k e w i s e 
a r e 
s u b j e c t 
t o s u i t 
i n t o r t , n o t i n 
t h e i r 
i n d i v i d u a l 
c a p a c i t i e s 
b u t 
o n l y 
i n 
t h e i r 
o f f i c i a l 
c a p a c i t i e s . ' 
"384 
So. 
2d 
a t 
7 
( o p i n i o n 
on 
a p p l i c a t i o n 
f o r 
r e h e a r i n g ) . 
I t i s t h e r e f o r e 
c l e a r 
t h a t t h e summary 
j u d g m e n t was 
p r o p e r l y e n t e r e d 
f o r t h e 
c o m m i s s i o n e r s 
as t o t h e 
c l a i m s 
a g a i n s t 
them i n t h e i r 
i n d i v i d u a l 
c a p a c i t i e s . " 
( F o o t n o t e 
o m i t t e d . ) 
We 
have 
n o t 
b e e n 
a s k e d 
t o 
o v e r r u l e 
S m i t h e r m a n . 
B e c a u s e J o s e p h , as a c o u n t y c o m m i s s i o n e r , 
c a n n o t , 
as a m a t t e r o f l a w , be s u e d i n h i s i n d i v i d u a l 
c a p a c i t y , 
t h e 
summary j u d g m e n t i n h i s f a v o r 
i s due 
t o be 
a f f i r m e d on 
t h i s 
a l t e r n a t i v e 
g r o u n d . 
56 
1 0 7 0 4 8 4 ; 1 0 7 0 4 8 7 ; 1070514 
B e c a u s e we have c o n c l u d e d t h a t t h e C o u n t y and t h e 
C o u n t y 
C o m m i s s i o n have no 
l i a b i l i t y , t h e c l a i m s a g a i n s t J o s e p h i n h i s 
o f f i c i a l 
c a p a c i t y a r e moot. 
F. 
T h o r n t o n 
The 
V o l u n t e e r 
S e r v i c e 
A c t , § 6-5-336, A l a . Code 
1975, 
p r o v i d e s , 
i n p e r t i n e n t 
p a r t : 
o r 
o r 
" ( d ) Any 
v o l u n t e e r 
s h a l l be immune f r o m 
c i v i l 
l i a b i l i t y 
i n any 
a c t i o n on t h e b a s i s o f any a c t 
o m i s s i o n 
o f 
a 
v o l u n t e e r 
r e s u l t i n g 
i n damage 
i n j u r y i f : 
" ( 1 ) The v o l u n t e e r 
was 
a c t i n g i n g o o d 
f a i t h 
and 
w i t h i n 
t h e 
s c o p e 
o f 
s u c h 
v o l u n t e e r ' s 
o f f i c i a l 
f u n c t i o n s 
and 
d u t i e s 
f o r 
a n o n p r o f i t 
o r g a n i z a t i o n , 
a 
n o n p r o f i t 
c o r p o r a t i o n , 
h o s p i t a l , 
o r 
a 
g o v e r n m e n t a l 
e n t i t y ; and 
" ( 2 ) 
The 
damage 
o r 
i n j u r y 
was 
n o t 
c a u s e d by 
w i l l f u l 
o r w a n t o n m i s c o n d u c t 
by 
s u c h 
v o l u n t e e r . " 
When t h e 
l e g i s l a t u r e 
p a s s e d 
t h e 
V o l u n t e e r 
S e r v i c e 
A c t , i t 
d e c l a r e d 
i n § 
6 - 5 - 3 3 6 ( b ) : 
" ( 1 ) 
The 
w i l l i n g n e s s 
o f 
v o l u n t e e r s 
t o 
o f f e r 
t h e i r 
s e r v i c e s has b e e n i n c r e a s i n g l y d e t e r r e d 
by a 
p e r c e p t i o n 
t h a t t h e y p u t p e r s o n a l 
a s s e t s 
a t r i s k i n 
t h e 
e v e n t 
o f 
t o r t 
a c t i o n s 
s e e k i n g 
damages 
a r i s i n g 
f r o m t h e i r 
a c t i v i t i e s as 
v o l u n t e e r s ; 
" ( 2 ) The c o n t r i b u t i o n s o f p r o g r a m s , 
a c t i v i t i e s , 
and 
s e r v i c e s 
t o 
c o m m u n i t i e s 
i s 
d i m i n i s h e d 
and 
w o r t h w h i l e 
p r o g r a m s , 
a c t i v i t i e s , 
and 
s e r v i c e s 
a r e 
d e t e r r e d by t h e u n w i l l i n g n e s s o f v o l u n t e e r s 
t o s e r v e 
e i t h e r as v o l u n t e e r s 
o r as 
o f f i c e r s , 
d i r e c t o r s , 
o r 
57 
1070484; 1070487; 1070514 
t r u s t e e s 
o f 
n o n p r o f i t 
p u b l i c 
and 
p r i v a t e 
o r g a n i z a t i o n s ; 
" ( 3 ) 
The p r o v i s i o n s o f t h i s s e c t i o n a r e 
i n t e n d e d 
t o e n c o u r a g e v o l u n t e e r s 
t o c o n t r i b u t e t h e i r 
s e r v i c e s 
f o r 
t h e g o o d 
o f 
t h e i r 
c o m m u n i t i e s 
and 
a t 
t h e 
same 
t i m e 
p r o v i d e 
a 
r e a s o n a b l e 
b a s i s 
f o r 
r e d r e s s 
o f 
c l a i m s w h i c h may 
a r i s e r e l a t i n g t o t h o s e 
s e r v i c e s . " 
I t 
i s 
u n d i s p u t e d 
t h a t 
T h o r n t o n 
s e r v e d 
as 
an 
u n p a i d 
v o l u n t e e r member o f t h e IDB. 
He was 
e m p l o y e d f u l l - t i m e i n h i s 
own 
i n s u r a n c e 
b u s i n e s s , 
and 
he 
s e r v e d 
as 
t h e c h a i r m a n o f 
t h e 
IDB 
on 
a 
v o l u n t a r y 
p a r t - t i m e 
b a s i s . 
The 
IDB 
i s 
a 
" g o v e r n m e n t a l e n t i t y " as d e f i n e d i n t h e V o l u n t e e r 
S e r v i c e 
A c t , 
§ 6 - 5 - 3 3 6 ( c ) ( 1 ) . 
See 
a l s o H a r r i s v. E t h i c s Comm'n, 585 
So. 
2d 
93, 
95 
( A l a . C i v . 
App. 
1 9 9 1 ) , 
i n w h i c h 
t h e 
C o u r t 
o f 
C i v i l 
A p p e a l s q u o t e d w i t h a p p r o v a l 
a s t a t e m e n t f r o m a t r i a l 
c o u r t ' s 
o r d e r 
s t a t i n g t h a t 
i n d u s t r i a l 
d e v e l o p m e n t 
b o a r d s 
" c l e a r l y 
r e f l e c t 
a t t r i b u t e s 
and 
c h a r a c t e r i s t i c s o f 
a 
g o v e r n m e n t a l 
e n t i t y . " 
A c c o r d i n g l y , 
T h o r n t o n 
i s 
a 
v o l u n t e e r 
u n d e r 
t h e 
V o l u n t e e r 
S e r v i c e 
A c t 
and 
i s e n t i t l e d 
t o i m m u n i t y so 
l o n g 
as 
h i s 
a c t i o n s 
o r i n a c t i o n s were n o t w a n t o n o r 
w i l l f u l . 
T h o r n t o n 
and 
t h e 
IDB 
had 
a 
l i m i t e d r o l e 
i n 
a c q u i r i n g 
p r o p e r t y 
f o r H y u n d a i ' s p l a n t 
s i t e . 
E v e n t h o u g h T h o r n t o n 
was 
t h e p e r s o n who 
e x e c u t e d on 
b e h a l f 
o f 
t h e 
IDB 
t h e 
o p t i o n s 
t o 
p u r c h a s e t h e p r o p e r t y owned by S o u t h d a l e and 
W h e e l e r / P h i l l i p s , 
58 
1070484; 1070487; 1070514 
he 
n e v e r met 
w i t h t h e l a n d o w n e r s n o r was 
he 
i n v o l v e d i n 
t h e 
d e c i s i o n s c o n c e r n i n g what p r o p e r t y 
s h o u l d be 
a c q u i r e d o r 
t h e 
p r i c e t h a t s h o u l d be p a i d f o r t h e p r o p e r t y . 
T h o r n t o n had 
no 
k n o w l e d g e o f and 
was 
n o t p r e s e n t 
a t t h e m e e t i n g h e l d on 
t h e 
e v e n i n g 
o f M a r c h 
28. 
He 
h a d 
no 
k n o w l e d g e 
o f 
and 
was 
n o t 
p r e s e n t 
a t t h e m e e t i n g b e t w e e n t h e n Mayor B r i g h t and 
S h e l t o n 
when 
B r i g h t 
e x e c u t e d 
on 
b e h a l f 
o f 
t h e 
C i t y 
t h e 
o p t i o n 
t o 
p u r c h a s e S h e l t o n ' s p r o p e r t y . 
The 
IDB n e v e r h e l d an o p t i o n 
on 
o r 
t i t l e 
t o S h e l t o n ' s p r o p e r t y . 
T h o r n t o n was 
n o t i n v o l v e d i n 
t h e a c t u a l p u r c h a s e o f t h e p r o p e r t y . 
T h o r n t o n d i d n o t 
l e a r n 
o f 
S h e l t o n ' s 
i d e n t i t y , 
t h e 
p r i c e p a i d 
f o r h e r 
p r o p e r t y , 
o r 
t h a t 
H y u n d a i 
had 
a c q u i r e d 
t h e 
S h e l t o n 
p r o p e r t y 
u n t i l 
many 
months 
a f t e r 
t h e 
f a c t , 
l o n g 
a f t e r 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
had 
s o l d t h e i r 
p r o p e r t y . 
We 
c o n c l u d e 
t h a t 
S o u t h d a l e 
and W h e e l e r / P h i l l i p s have n o t p r e s e n t e d any 
e v i d e n c e 
i n d i c a t i n g 
t h a t 
any 
a c t i o n s 
t a k e n 
by 
T h o r n t o n , 
e i t h e r 
i n d i v i d u a l l y 
o r i n h i s c a p a c i t y as 
t h e c h a i r m a n o f t h e 
IDB, 
were w a n t o n o r 
w i l l f u l . 
T h e r e f o r e , 
T h o r n t o n i s e n t i t l e d 
t o 
i m m u n i t y 
p u r s u a n t 
t o 
t h e 
V o l u n t e e r 
S e r v i c e 
A c t , 
and 
t h e 
summary j u d g m e n t i n h i s f a v o r i s due 
t o be 
a f f i r m e d on 
t h i s 
a l t e r n a t i v e 
g r o u n d . 
G. 
The 
IDB 
59 
1070484; 1070487; 1070514 
B e c a u s e we have d e t e r m i n e d t h a t T h o r n t o n i s e n t i t l e d t o 
i m m u n i t y 
u n d e r 
t h e V o l u n t e e r 
S e r v i c e 
A c t , t h e IDB 
i s 
a l s o 
e n t i t l e d t o i m m u n i t y . 
I n H o l l i s v. C i t y o f B r i g h t o n , 
885 
So. 
2d 135, 141-42 
( A l a . 2 0 0 4 ) , t h e p l a i n t i f f s 
s u e d t h e C i t y o f 
B r i g h t o n , 
a l l e g i n g t h a t t h e 
c i t y h a d 
f a i l e d 
t o e x t i n g u i s h a 
f i r e 
a t 
t h e i r 
h o u s e 
and 
h a d 
p r e v e n t e d t h e 
p l a i n t i f f s 
f r o m 
t r y i n g t o e x t i n g u i s h i t . T h i s C o u r t 
h e l d : 
"The 
v i c a r i o u s 
l i a b i l i t y 
o f a p u t a t i v e 
m a s t e r 
u n d e r t h e r u l e o f r e s p o n d e a t s u p e r i o r d e p e n d s upon 
t h e 
l i a b i l i t y 
o f t h e p u t a t i v e 
s e r v a n t . 
See 
L a r r y 
 
T e r r y 
C o n t r a c t o r s , 
I n c . v. 
B o g l e , 
404 
So. 
2d 
613, 
614 
( A l a . 1981) 
('"[W]hen 
[a] 
p r i n c i p a l 
and 
h i s 
a g e n t 
a r e 
s u e d 
i n 
[a] 
j o i n t 
a c t i o n 
i n 
t o r t 
f o r 
m i s f e a s a n c e o r m a l f e a s a n c e o f t h e s e r v a n t , 
and h i s 
l i a b i l i t y 
f o r t h e c o n d u c t o f s a i d s e r v a n t 
i s u n d e r 
t h e 
r u l e o f r e s p o n d e a t s u p e r i o r , a v e r d i c t i n f a v o r 
o f 
t h e 
s e r v a n t 
e n t i t l e s 
t h e 
m a s t e r 
t o 
h a v e 
t h e 
v e r d i c t 
a g a i n s t 
h i m 
s e t 
a s i d e . " ' ) 
( q u o t i n g 
L o u i s v i l l e 
& N.R.R. v. Maddox, 236 A l a . 594, 
600 , 
183 
So. 
849, 
853 
(1 
938 ) ) , 
and 
Gore 
v. 
C i t y 
o f 
 
H o o v e r , 
559 So. 2d 163, 165 
( A l a . 1 9 9 0 ) , 
o v e r r u l e d 
on 
o t h e r 
g r o u n d s , 
F r a n k l i n v. 
C i t y o f H u n t s v i l l e , 
670 
So. 
2d 
84 8 
( A l a . 1995) 
( h o l d i n g 
t h a t 
a 
c i t y 
c o u l d n o t be h e l d v i c a r i o u s l y l i a b l e f o r t h e a c t o f 
a m a g i s t r a t e 
who was immune f r o m 
l i a b i l i t y ) . 
Thus, 
i f a p u t a t i v e s e r v a n t 
i s n o t 
l i a b l e , 
e i t h e r b e c a u s e 
he i s i n n o c e n t 
o r b e c a u s e he i s immune, no 
l i a b i l i t y 
e x i s t s t o be v i s i t e d upon t h e p u t a t i v e m a s t e r 
u n d e r 
t h e 
r u l e o f r e s p o n d e a t s u p e r i o r . I d . 
f l 
"As 
d i s c u s s e d 
a b o v e , 
t h e 
f i r e f i g h t e r s , 
t h e 
p u t a t i v e 
s e r v a n t s 
i n t h e c a s e now 
b e f o r e 
u s , were 
v o l u n t e e r s 
who 
d i d n o t 
r e c e i v e 
c o m p e n s a t i o n 
f o r 
t h e i r 
s e r v i c e 
as 
v o l u n t e e r 
f i r e f i g h t e r s . 
60 
1070484; 1070487; 1070514 
C o n s e q u e n t l y , 
t h e y were immune f r o m 
l i a b i l i t y 
f o r 
n e g l i g e n c e 
u n d e r t h e V o l u n t e e r 
S e r v i c e A c t . 
B e c a u s e 
t h e 
f i r e f i g h t e r s 
were 
immune 
f r o m 
l i a b i l i t y 
f o r 
n e g l i g e n c e 
u n d e r 
t h e 
V o l u n t e e r 
S e r v i c e 
A c t , 
no 
l i a b i l i t y 
f o r 
n e g l i g e n c e 
c o u l d 
b e f a l l 
them 
t o 
be 
v i s i t e d upon 
t h e 
C i t y 
[ o f B r i g h t o n ] , 
t h e 
p u t a t i v e 
m a s t e r i n t h e c a s e now 
b e f o r e 
u s . " 
The 
IDB c a n n o t be h e l d v i c a r i o u s l y l i a b l e f o r t h e a c t s o f i t s 
c h a i r m a n b e c a u s e T h o r n t o n was immune f r o m 
l i a b i l i t y u n d e r 
t h e 
V o l u n t e e r 
S e r v i c e A c t . 
The summary j u d g m e n t e n t e r e d 
i n f a v o r 
o f t h e 
IDB 
i s due 
t o be 
a f f i r m e d on 
t h i s 
a l t e r n a t i v e g r o u n d . 
H. 
The 
A I F A 
The 
A I F A 
i s 
a 
p u b l i c 
c o r p o r a t i o n 
and 
p u b l i c 
i n s t r u m e n t a l i t y 
o f 
t h e 
S t a t e . 
See 
§ 41-10-540 , 
A l a . 
Code 
1975. 
I t was 
c r e a t e d 
by 
t h e 
l e g i s l a t u r e 
t o f u n d 
i n c e n t i v e s 
and c o m m i t m e n t s t o i n d u s t r i e s t h a t a g r e e t o l o c a t e i n A l a b a m a . 
By 
l a w , 
t h e 
g o v e r n o r a c t s 
as 
t h e 
p r e s i d e n t 
o f t h e A I F A , 
t h e 
s t a t e 
t r e a s u r e r 
as 
i t s 
v i c e 
p r e s i d e n t , 
and 
t h e 
f i n a n c e 
d i r e c t o r as i t s s e c r e t a r y . 
§ 4 1 - 1 0 - 5 4 5 , A l a . Code 1975. 
The 
A I F A a r g u e s t h a t i t i s e n t i t l e d t o t h e i m m u n i t y p r o t e c t i o n s 
o f 
A r t i c l e I , § 14, A l a b a m a C o n s t i t u t i o n o f 1901, when i t a c t s 
as 
an 
arm 
o f 
t h e 
S t a t e . 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
a r g u e 
t h a t 
t h e 
A I F A 
i s 
n o t 
e n t i t l e d 
t o 
i m m u n i t y 
b e c a u s e 
t h e 
l e g i s l a t u r e 
has 
g i v e n 
i t t h e 
a u t h o r i t y 
t o 
" i n s t i t u t e 
and 
d e f e n d 
l e g a l p r o c e e d i n g s . " 
§ 4 1 - 1 0 - 5 4 6 ( 2 ) . 
61 
1 0 7 0 4 8 4 ; 1 0 7 0 4 8 7 ; 1070514 
N e v e r t h e l e s s , 
i f an a c t i o n 
a g a i n s t 
a b o d y 
s u c h as t h e 
A I F A i s i n a c t u a l i t y an a c t i o n a g a i n s t t h e S t a t e w i t h i n § 14 
o f t h e A l a b a m a C o n s t i t u t i o n , t h e n t h e A I F A may be e n t i t l e d t o 
i m m u n i t y . 
I n A r m o r y C o m m i s s i o n o f A l a b a m a v. S t a u d t , 388 So. 
2d 
991 
( A l a . 1 9 8 0 ) , 
t h i s 
C o u r t 
h e l d 
t h a t 
" [ w ] h e t h e r 
a 
g o v e r n m e n t a l b o d y i s immune f r o m s u i t c a n n o t t u r n on l a b e l s 
p l a c e d 
on 
t h e 
b o d y 
by 
t h e 
l e g i s l a t u r e " 
and 
t h a t 
t h e 
" l e g i s l a t u r e 
may 
n o t d e n y 
i m m u n i t y 
f r o m 
s u i t 
when 
t h a t 
i m m u n i t y i s c o n s t i t u t i o n a l l y g r a n t e d . " 
388 So. 2d a t 992. 
The C o u r t f u r t h e r 
s t a t e d : 
"Whether 
a 
l a w s u i t 
a g a i n s t 
a 
b o d y 
c r e a t e d 
by 
l e g i s l a t i v e 
e n a c t m e n t i s a s u i t 
a g a i n s t 
t h e s t a t e 
d e p e n d s on t h e c h a r a c t e r o f power 
d e l e g a t e d 
t o t h e 
b o d y , t h e r e l a t i o n o f t h e b o d y t o t h e s t a t e , and t h e 
n a t u r e o f t h e f u n c t i o n p e r f o r m e d by t h e b o d y . A l l 
f a c t o r s 
i n t h e r e l a t i o n s h i p must be e x a m i n e d t o 
d e t e r m i n e w h e t h e r t h e s u i t i s a g a i n s t an arm o f t h e 
s t a t e o r m e r e l y 
a g a i n s t 
a f r a n c h i s e e 
l i c e n s e d f o r 
some b e n e f i c i a l p u r p o s e . 
S t a t e Docks C o m m i s s i o n v .  
B a r n e s , 
225 A l a . 403, 406-07, 
143 So. 581 
, 584 
( 1 9 3 2 ) . " 
388 So. 2d a t 993. 
The A I F A a r g u e s t h a t i t 
meets t h e t h r e e 
S t a u d t 
f a c t o r s t o e n t i t l e i t t o i m m u n i t y as an arm o f t h e 
S t a t e . 
As t o t h e f i r s t 
f a c t o r , t h e A I F A c o n t e n d s t h a t i t i s 
g r a n t e d t h e a u t h o r i t y t o f i n a n c e t h e S t a t e ' s 
o b l i g a t i o n s t o 
c o m p a n i e s t h a t 
b r i n g n e e d e d i n d u s t r y t o A l a b a m a . 
As t o t h e 
s e c o n d 
f a c t o r , 
t h e A I F A 
c o n t e n d s 
t h a t 
i t i s so 
c l o s e l y 
62 
1 0 7 0 4 8 4 ; 1 0 7 0 4 8 7 ; 1070514 
i n t e r t w i n e d 
w i t h 
t h e S t a t e 
t h a t 
i t i s e n t i t l e d 
t o t h e 
i m m u n i t i e s a f f o r d e d a g e n c i e s and arms o f t h e S t a t e . 
As t o 
t h e 
t h i r d 
f a c t o r , t h e A I F A s t a t e s 
t h a t i t 
d o e s n o t n e g o t i a t e o r 
make c o m m i t m e n t s on b e h a l f o f t h e S t a t e , b u t i t 
i s a u t h o r i z e d 
t o 
f u n d 
e x i s t i n g 
c o m m i t m e n t s 
t h r o u g h 
t h e u s e 
o f 
A I F A 
o b l i g a t i o n s , 
p r i m a r i l y b o n d s . 
I n S t a l l i n g s & S o n s , I n c . 
v. A l a b a m a B u i l d i n g 
R e n o v a t i o n 
F i n a n c e A u t h o r i t y , 689 So. 2d 790, 792 ( A l a . 
1 9 9 6 ) , t h e C o u r t 
s t a t e d 
t h a t 
t h e 
S t a u d t 
t e s t 
" e x a m i n e s 
t h e 
c o m p l e t e 
r e l a t i o n s h i p b e t w e e n t h e s t a t e and t h e e n t i t y s e e k i n g i m m u n i t y 
f r o m 
s u i t 
" 
The C o u r t e x a m i n e d t h e p o w e r s d e l e g a t e d t o 
t h e 
A l a b a m a 
B u i l d i n g 
R e n o v a t i o n 
F i n a n c e 
A u t h o r i t y 
by t h e 
l e g i s l a t u r e , t h e r e l a t i o n s h i p b e t w e e n t h e A u t h o r i t y and t h e 
S t a t e , 
a n d t h e n a t u r e 
o f t h e f u n c t i o n 
p e r f o r m e d 
by t h e 
A u t h o r i t y . 
A f t e r e x a m i n i n g t h e t h r e e f a c t o r s , t h e C o u r t i n 
S t a l l i n g s 
c o n c l u d e d 
t h a t t h e A u t h o r i t y was n o t immune 
f r o m 
s u i t , 
d i s t i n g u i s h i n g t h e f a c t s i n t h a t c a s e f r o m t h o s e 
f o u n d 
i n S t a t e Docks C o m m i s s i o n v . B a r n e s , 225 A l a . 4 0 3 , 143 So. 581 
( 1 9 3 2 ) , a c a s e 
r e l i e d on by t h e C o u r t i n S t a u d t . 
"The 
f a c t s 
i n 
t h i s 
c a s e 
a r e 
c l e a r l y 
d i s t i n g u i s h a b l e 
f r o m 
t h o s e 
f o u n d 
i n S t a t e 
Docks 
 
C o m m i s s i o n v . B a r n e s , a c a s e r e l i e d on by t h i s 
C o u r t 
i n S t a u d t , i n w h i c h 
t h i s C o u r t h e l d t h a t t h e S t a t e 
Docks C o m m i s s i o n was an arm o f t h e s t a t e and t h u s 
63 
1 0 7 0 4 8 4 ; 1 0 7 0 4 8 7 ; 1070514 
immune 
f r o m 
s u i t 
f o r 
t h e 
f o l l o w i n g 
r e a s o n s : 
t h e 
s t a t e owned t h e 
d o c k s 
f a c i l i t i e s 
i n i t s own 
name; 
t h e C o m m i s s i o n o p e r a t e d t h e d o c k s 
f a c i l i t i e s 
as 
an 
a g e n t o f t h e s t a t e and 
n o t as a s e p a r a t e 
e n t i t y ; 
t h e 
f u n d s 
g e n e r a t e d 
by 
t h e 
s t a t e 
d o c k s 
f a c i l i t i e s 
b e l o n g e d t o t h e 
s t a t e , and 
i n t h e 
l a w s u i t a t 
i s s u e 
i n 
t h a t c a s e , t h o s e f u n d s w o u l d have b e e n 
s u b j e c t e d 
t o 
l i a b i l i t y , b e c a u s e ' a 
l a w s u i t d i r e c t l y a f f e c t i n g 
a s t a t e c o n t r a c t o r p r o p e r t y 
r i g h t 
i s t a n t a m o u n t 
t o 
a 
s u i t 
a g a i n s t 
t h e 
s t a t e . ' 
S t a u d t , 
388 
So. 
2d 
a t 
993." 
S t a l l i n g s , 
689 
So. 
2d a t 
793. 
A r t i c l e 
I , § 14, 
o f t h e 
C o n s t i t u t i o n o f 
1901, 
p r o v i d e s : 
" [ T ] h e S t a t e o f A l a b a m a s h a l l n e v e r be made a d e f e n d a n t i n 
any 
c o u r t 
o f l a w 
o r e q u i t y . " 
T h i s C o u r t has 
h e l d t h a t 
" ' t h e 
use 
o f t h e w o r d " S t a t e " i n S e c t i o n 14 was 
i n t e n d e d 
t o p r o t e c t f r o m 
s u i t o n l y i m m e d i a t e and 
s t r i c t l y g o v e r n m e n t a l a g e n c i e s o f 
t h e 
S t a t e . ' " 
T a l l a s e e h a t c h i e C r e e k W a t e r s h e d C o n s e r v a n c y D i s t . v.  
A l l r e d , 
620 
So. 
2d 
628, 
631 
( A l a . 1993) 
( q u o t i n g Thomas 
v. 
 
A l a b a m a Mun. 
E l e c . A u t h . , 
432 
So. 
2d 
470, 
480 
( A l a . 
1 9 8 3 ) ) . 
A f t e r 
r e v i e w i n g 
t h e 
c h a r a c t e r 
o f 
t h e power d e l e g a t e d 
t o 
t h e 
A I F A , t h e A I F A ' s r e l a t i o n s h i p t o t h e S t a t e , and 
t h e n a t u r e 
o f 
t h e 
f u n c t i o n 
i t p e r f o r m s , 
we 
c o n c l u d e 
t h a t 
i t i s 
a 
S t a t e 
a g e n c y f o r p u r p o s e s o f S t a t e i m m u n i t y . 
T h e r e f o r e , 
t h e summary 
j u d g m e n t e n t e r e d 
i n f a v o r o f t h e A I F A i s due 
t o be a f f i r m e d 
on 
t h i s 
a l t e r n a t i v e g r o u n d . 
I . Then G o v e r n o r 
S i e g e l m a n 
64 
1070484; 1070487; 1070514 
A r t i c l e V, § 112, A l a b a m a C o n s t i t u t i o n o f 1 9 0 1 , l i s t s t h e 
o f f i c e r s e m b r a c e d w i t h i n t h e e x e c u t i v e 
d e p a r t m e n t : 
"The 
e x e c u t i v e 
d e p a r t m e n t 
s h a l l 
c o n s i s t o f a 
g o v e r n o r , 
l i e u t e n a n t 
g o v e r n o r , 
a t t o r n e y - g e n e r a l , 
s t a t e a u d i t o r , s e c r e t a r y o f s t a t e , 
s t a t e t r e a s u r e r , 
s u p e r i n t e n d e n t 
o f 
e d u c a t i o n , 
c o m m i s s i o n e r 
o f 
a g r i c u l t u r e and i n d u s t r i e s , 
and a s h e r i f f f o r e a c h 
c o u n t y . " 
T h i s C o u r t r e c e n t l y a d d r e s s e d t h e i n d i v i d u a l 
l i a b i l i t y o f 
a s h e r i f f i n Ex p a r t e D a v i s , 9 So. 3d 480, 483 ( A l a . 2 0 0 8 ) : 
" A r t i c l e I , § 14, A l a b a m a C o n s t i t u t i o n o f 1 9 0 1 , 
s t a t e s s i m p l y : 
' [ T ] h e 
S t a t e o f A l a b a m a s h a l l 
n e v e r 
be made a d e f e n d a n t i n any c o u r t o f l a w o r e q u i t y . ' 
A l t h o u g h 
c o u n t i e s 
do n o t n e c e s s a r i l y p o s s e s s t h e 
same 
s o v e r e i g n 
i m m u n i t y 
as do 
s t a t e s 
and 
s t a t e 
a g e n c i e s , 
c o u n t y s h e r i f f s a r e e x e c u t i v e 
o f f i c e r s o f  
t h e 
S t a t e o f A l a b a m a and a r e t h e r e f o r e immune 
f r o m  
l i a b i l i t y f o r a c t i o n s t a k e n i n e x e c u t i n g t h e d u t i e s  
o f t h e i r 
o f f i c e s . 
B o s h e l l v. W a l k e r C o u n t y 
S h e r i f f , 
598 
So. 2d 843, 844 ( A l a . 
1 
9 9 2 ) . 
T h i s 
C o u r t h a s 
a l s o 
r e c o g n i z e d 
t h a t a ' d e p u t y 
s h e r i f f i s a f f o r d e d 
t h e same i m m u n i t y f r o m 
s u i t as a s h e r i f f i n r e g a r d 
t o 
c l a i m s 
f o r m o n e t a r y 
damages 
s t e m m i n g 
f r o m 
a c t i v i t i e s p e r f o r m e d w h i l e w o r k i n g 
i n t h e l i n e and 
s c o p e o f h i s o r h e r e m p l o y m e n t . ' 
Ex p a r t e 
P u r v i s , 
689 So. 2d 794, 796 ( A l a . 1 9 9 6 ) . " 
( E m p h a s i s added.) 
I f a 
s h e r i f f , b y r e a s o n 
o f h i s o r h e r 
s t a t u s 
as a 
c o n s t i t u t i o n a l 
o f f i c e r , 
e n j o y s 
i m m u n i t y 
f r o m 
l i a b i l i t y 
f o r m o n e t a r y 
damages 
s t e m m i n g 
f r o m 
a c t i v i t i e s 
p e r f o r m e d w h i l e e x e c u t i n g t h e d u t i e s o f t h e o f f i c e , 
t h e n , 
a 
f o r t i o r a r i , a g o v e r n o r i s e n t i t l e d t o t h e same i m m u n i t y . 
The 
m a t t e r s made t h e b a s i s o f t h e c l a i m s 
a g a i n s t 
t h e n 
G o v e r n o r 
65 
1070484; 1070487; 1070514 
S i e g e l m a n , i n h i s c a p a c i t y as t h e ex 
o f f i c i o p r e s i d e n t o f 
t h e 
A I F A 
and 
i n c a u s i n g 
t h e 
S t a t e 
t o 
f u n d 
t h e 
p u r c h a s e 
o f 
t h e 
S h e l t o n p r o p e r t y f o r H y u n d a i , s t e m f r o m a c t i o n s t a k e n w h i l e 
he 
was 
e x e c u t i n g 
t h e d u t i e s o f h i s o f f i c e . 
A l a b a m a c o u r t s h a v e 
" c o n s i s t e n t l y 
h e l d 
t h a t 
a 
c l a i m 
f o r m o n e t a r y damages made 
a g a i n s t a c o n s t i t u t i o n a l 
o f f i c e r 
i n t h e 
o f f i c e r ' s 
i n d i v i d u a l 
c a p a c i t y 
i s b a r r e d 
by 
S t a t e i m m u n i t y w h e n e v e r t h e 
a c t s 
t h a t 
a r e t h e b a s i s o f t h e a l l e g e d 
l i a b i l i t y were p e r f o r m e d w i t h i n 
t h e c o u r s e 
and 
s c o p e o f t h e 
o f f i c e r ' s e m p l o y m e n t . " 
Ex 
p a r t e 
 
D a v i s , 
930 
So. 2d 497, 500-01 ( A l a . 2 0 0 5 ) . 
C o n s e q u e n t l y , t h e n 
G o v e r n o r S i e g e l m a n i s e n t i t l e d , 
on t h e 
f a c t s h e r e 
p r e s e n t e d , 
t o 
S t a t e 
i m m u n i t y 
i n 
h i s 
i n d i v i d u a l 
c a p a c i t y 
and 
i n 
h i s 
c a p a c i t y 
as 
t h e 
f o r m e r p r e s i d e n t 
o f 
t h e A I F A . 
The 
summary 
j u d g m e n t 
i n 
h i s 
f a v o r 
i s 
due 
t o 
be 
a f f i r m e d 
on 
t h i s 
a l t e r n a t i v e 
g r o u n d . 
J . Then F i n a n c e 
D i r e c t o r M a b r y 
Then 
F i n a n c e 
D i r e c t o r M a b r y 
f i r s t 
a r g u e s 
t h a t 
he 
i s 
e n t i t l e d t o S t a t e i m m u n i t y b e c a u s e , he s a y s , he was 
a c t i n g as 
t h e g o v e r n o r ' s a l t e r ego 
o r d e p u t y i n r e v i e w i n g and 
p r e p a r i n g 
t h e 
i n c e n t i v e p a c k a g e p r o v i d e d 
t o H y u n d a i . 
T h e r e f o r e , 
M a b r y 
a r g u e s , he s h o u l d be g r a n t e d t h e same i m m u n i t y t h e g o v e r n o r o r 
a 
s h e r i f f 
w o u l d 
e n j o y 
u n d e r 
s i m i l a r 
c i r c u m s t a n c e s . 
We 
66 
1070484; 1070487; 1070514 
d i s a g r e e . 
A d e p u t y s h e r i f f e n j o y s 
t h e i m m u n i t y o f t h e 
s h e r i f f 
b e c a u s e o f l o n g - s t a n d i n g 
p r e c e d e n t t r e a t i n g t h e d e p u t y as 
an 
a l t e r ego 
o f t h e 
s h e r i f f . 
"We 
must r e a c h 
t h e same c o n c l u s i o n w i t h 
r e g a r d 
t o 
D e p u t i e s 
B r a n d o n 
and 
F i n l e y . 
I n 
M o s e l y 
v. 
 
K e n n e d y , 
245 
A l a . 
448 , 
450, 
17 
So. 
2d 
536, 
537 
( 1 9 4 4 ) , 
t h i s C o u r t s t a t e d , 
' I n g e n e r a l , 
t h e a c t s 
o f 
t h e d e p u t y s h e r i f f a r e t h e a c t s o f t h e 
s h e r i f f . 
The 
d e p u t y 
s h e r i f f 
i s t h e 
a l t e r 
ego 
o f 
t h e 
s h e r i f f . ' 
( C i t a t i o n s o m i t t e d . ) 
I n d e a l i n g w i t h t h e same i s s u e 
t h a t i s p r e s e n t 
h e r e , 
t h e f e d e r a l a p p e l l a t e c o u r t i n 
C a r r 
v. 
C i t y 
o f 
F l o r e n c e , 
A l a b a m a , 
916 
F.2d 
1521, 
1526 
( 1 1 t h 
C i r . 1 9 9 0 ) , 
a f f i r m e d summary 
j u d g m e n t s 
f o r t h e L a u d e r d a l e 
C o u n t y s h e r i f f 
and 
h i s 
d e p u t i e s , 
s t a t i n g : 
" ' [ U n d e r A l a b a m a l a w , 
a] d e p u t y i s 
l e g a l l y 
an 
e x t e n s i o n 
o f 
t h e 
s h e r i f f . 
I f 
t h e 
d e p u t y ' s a c t s a r e g e n e r a l l y c o n s i d e r e d 
t h e 
a c t s 
o f 
t h e 
s h e r i f f , 
i t i s 
l o g i c a l 
t h a t 
t h o s e 
a c t s 
s h o u l d 
a l s o e n j o y 
t h e 
i m m u n i t y 
c o v e r i n g 
t h e 
s h e r i f f ' s 
own 
a c t s . ' " 
H e r e f o r d v. J e f f e r s o n C o u n t y , 586 
So. 2d 209, 
210 
( A l a . 1 9 9 1 ) . 
The 
n o t i o n 
t h a t 
S t a t e 
o f f i c i a l s 
s e r v i n g 
i n 
t h e 
e x e c u t i v e 
b r a n c h 
a r e 
" d e p u t y 
g o v e r n o r s " 
has 
no 
s u c h 
p r e c e d e n t i a l 
f o o t i n g , 
and 
we 
d e c l i n e 
t o 
c r e a t e 
i t i n 
t h i s 
p r o c e e d i n g . 
C a b i n e t 
o f f i c i a l s 
a r e 
n o t 
c o n s t i t u t i o n a l 
o f f i c e r s , 
and, 
t h e r e f o r e , 
t h e y 
a r e 
n o t 
e n t i t l e d 
t o t h e 
S t a t e i m m u n i t y o f 
a 
c o n s t i t u t i o n a l 
o f f i c e r . 
See 
t h e d i s c u s s i o n o f t h e n G o v e r n o r 
S i e g e l m a n ' s i m m u n i t y i n P a r t V . I . 
h e r e i n . 
67 
1070484; 1070487; 1070514 
M a b r y 
a l s o 
a r g u e s 
t h a t 
he 
i s 
e n t i t l e d 
t o 
S t a t e - a g e n t 
i m m u n i t y b e c a u s e , he 
s a y s , 
he n e v e r e x c e e d e d t h e s c o p e o f 
h i s 
d u t i e s . 
M a b r y t e s t i f i e d 
t h a t S t r a n g e d i d n o t s p e a k w i t h 
h i m 
o r 
w i t h 
t h e n G o v e r n o r S i e g e l m a n 
on 
t h e 
e v e n i n g 
o f M a r c h 
28 
a b o u t H y u n d a i ' s r e q u e s t , 
t h e m e e t i n g S t r a n g e c o n v e n e d , o r 
h i s 
t a l k s w i t h 
CSX 
r e p r e s e n t a t i v e s . 
Then G o v e r n o r S i e g e l m a n 
and 
M a b r y were 
a p p r i s e d 
o f 
t h e 
c o n v e r s a t i o n s 
b e t w e e n 
S t r a n g e , 
H y u n d a i , 
and 
CSX 
on 
t h e 
f o l l o w i n g day, 
M a r c h 29, 
a f t e r 
t h e n 
Mayor B r i g h t had 
o b t a i n e d 
t h e o p t i o n 
on t h e S h e l t o n 
p r o p e r t y . 
M a b r y 
and 
S i e g e l m a n 
s t a t e 
t h a t 
t h e y 
d i d 
n o t 
see 
e i t h e r 
t h e 
l e t t e r f r o m S t r a n g e t o H e m p h i l l o r t h e e - m a i l f r o m H e m p h i l l t o 
G e o r g e . 
M a b r y ' s i n v o l v e m e n t t h e r e a f t e r was 
l i m i t e d t o m a k i n g 
t h e 
a p p r o p r i a t e 
f u n d s 
a v a i l a b l e 
t o 
p u r c h a s e 
t h e 
S h e l t o n 
p r o p e r t y 
on b e h a l f 
o f t h e 
S t a t e . 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
p r e s e n t e d 
no 
e v i d e n c e 
i n d i c a t i n g t h a t M a b r y a c t e d o u t s i d e h i s a u t h o r i t y as 
s e c r e t a r y 
o f t h e A I F A ; t h e r e f o r e , he i s e n t i t l e d t o S t a t e - a g e n t i m m u n i t y 
i n h i s i n d i v i d u a l c a p a c i t y . 
The summary j u d g m e n t i n h i s 
f a v o r 
i s due 
t o be 
a f f i r m e d 
on 
t h i s 
a l t e r n a t i v e g r o u n d . 
B e c a u s e we have c o n c l u d e d t h a t t h e A I F A has 
no 
l i a b i l i t y , 
t h e 
c l a i m s 
a g a i n s t 
M a b r y 
i n 
h i s 
c a p a c i t y 
as 
t h e 
f o r m e r 
s e c r e t a r y 
o f t h e A I F A a r e moot. 
68 
1070484; 1070487; 1070514 
K. 
CSX 
CSX, 
a r g u i n g 
c o l l e c t i v e l y f o r t h e two 
c o r p o r a t e 
a p p e l l e e s 
and two 
i n d i v i d u a l a p p e l l e e s , a r g u e s t h a t t h e summary j u d g m e n t 
i n i t s f a v o r was p r o p e r b e c a u s e , i t s a y s , t h e amendment t o 
t h e 
o p t i o n 
a g r e e m e n t s 
f i x e d 
t h e 
p r i c e 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s were t o be p a i d f o r t h e i r 
l a n d and 
b e c a u s e , 
i t 
s a y s , 
t h e i r 
f r a u d 
c l a i m s 
a r e 
b a r r e d 
by 
t h e 
s t a t u t e 
o f 
l i m i t a t i o n s , a r g u m e n t s we h a v e r e j e c t e d . 
CSX makes two 
b r i e f 
a r g u m e n t s 
s e t t i n g 
f o r t h 
a l t e r n a t i v e b a s e s 
upon 
w h i c h 
t h e 
summary j u d g m e n t i n i t s f a v o r c o u l d be p r o p e r . 
I t a r g u e s t h a t 
t h e 
summary j u d g m e n t 
s h o u l d 
be 
a f f i r m e d 
b e c a u s e , 
i t 
s a y s , 
t h e r e were no u n i q u e t o r t damages p r e s e n t e d 
h e r e and 
b e c a u s e , 
i t s a y s , CSX 
had no d u t y t o S o u t h d a l e and W h e e l e r / P h i l l i p s 
and 
made no r e p r e s e n t a t i o n s 
t o them. 
The 
two 
CSX 
v i c e 
p r e s i d e n t s 
w i t h whom S t r a n g e s p o k e t o t r y t o a r r a n g e t h e p u r c h a s e o f 
t h e 
S h e l t o n 
p r o p e r t y 
were 
c l o s e l y 
i n v o l v e d 
i n 
t h e 
e f f o r t 
t o 
p u r c h a s e t h a t p r o p e r t y 
i n a manner t h a t w o u l d n o t 
t r i g g e r t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n 
t h e 
o t h e r 
o p t i o n 
a g r e e m e n t s . 
H e m p h i l l 
e s p e c i a l l y was 
a c u t e l y 
aware 
o f 
t h e 
r e a s o n s 
f o r 
h a v i n g 
CSX 
p u r c h a s e t h e 
S h e l t o n 
p r o p e r t y . 
He 
was 
t h e 
a u t h o r 
o f t h e e - m a i l 
d e s c r i b i n g t h e p r o p o s e d CSX p u r c h a s e as a " p l o y " 
t o 
a v o i d 
t h e 
e f f e c t o f 
t h e 
m o s t - f a v o r e d - n a t i o n 
c l a u s e . 
He 
69 
1070484; 1070487; 1070514 
knew t h a t 
CSX 
w o u l d 
be 
r e i m b u r s e d 
i n some 
f a s h i o n 
f o r 
t h e 
p u r c h a s e p r i c e 
o f 
t h e 
p r o p e r t y . 
H e m p h i l l 
t e s t i f i e d 
t h a t 
he 
went a l o n g w i t h t h e p l a n p r o p o s e d by S t r a n g e b e c a u s e he w a n t e d 
CSX 
t o h a v e 
t h e 
r a i l w a y 
b u s i n e s s 
w i t h 
H y u n d a i . 
U n d e r 
t h e 
f a c t s p r e s e n t e d , 
we c a n n o t c o n c l u d e t h a t t h e summary j u d g m e n t 
as t o CSX 
T r a n s p o r t a t i o n , 
I n c . , 
can 
be 
a f f i r m e d on 
t h e 
b a s i s 
t h a t 
t h e 
e v i d e n c e 
o f CSX's i n v o l v e m e n t 
was 
i n s u f f i c i e n t 
t o 
c r e a t e a g e n u i n e i s s u e o f m a t e r i a l f a c t o r on any 
a l t e r n a t i v e 
g r o u n d . 
As 
t o 
CSX 
R e a l 
P r o p e r t y , 
I n c . , 
E v a n s , 
and 
H e m p h i l l , 
h o w e v e r , 
CSX 
a d o p t e d 
i n 
i t s a p p e l l e e ' s 
b r i e f 
t h e 
a r g u m e n t s 
made by S t r a n g e i n h i s a p p e l l e e ' s 
b r i e f , w h i c h w o u l d 
i n c l u d e 
t h e 
a r g u m e n t 
t h a t 
W h e e l e r / P h i l l i p s 
and 
S o u t h d a l e ' s 
s u b s t i t u t i o n 
o f 
CSX 
R e a l 
P r o p e r t y , 
E v a n s , 
and 
H e m p h i l l 
f o r 
f i c t i t i o u s d e f e n d a n t A i n t h e i r s e c o n d amended c o m p l a i n t 
d i d 
n o t 
r e l a t e b a c k t o t h e 
c l a i m s 
i n t h e 
o r i g i n a l 
c o m p l a i n t 
and 
t h e r e f o r e came t o o 
l a t e . 
F o r t h e r e a s o n s s t a t e d i n P a r t 
V.C., 
we 
h o l d t h a t t h e 
d o c t r i n e o f 
r e l a t i o n b a c k b a r r e d 
t h e 
c l a i m s 
a g a i n s t CSX 
R e a l P r o p e r t y , E v a n s , and H e m p h i l l ; 
t h e r e f o r e , 
t h e 
summary j u d g m e n t as t o them i s due 
t o be 
a f f i r m e d . 
L. 
H y u n d a i 
70 
1070484; 
1070487; 
1070514 
I n McLemore, t h e R u s s e l l s a n d t h e McLemore g r o u p a r g u e d 
t h a t 
t h e summary 
j u d g m e n t 
e n t e r e d 
i n H y u n d a i ' s 
f a v o r 
was 
i m p r o p e r b e c a u s e , t h e y a r g u e d , t h e IDB, t h e C i t y , t h e C o u n t y , 
and t h e S t a t e 
were 
a c t i n g as H y u n d a i ' s 
a g e n t s a n d b e c a u s e 
H y u n d a i was e n g a g e d i n a j o i n t v e n t u r e w i t h t h o s e 
e n t i t i e s . 
T h i s C o u r t r e j e c t e d b o t h o f t h o s e a r g u m e n t s a n d a f f i r m e d t h e 
summary j u d g m e n t i n f a v o r o f H y u n d a i . 
B e c a u s e t h o s e a r g u m e n t s 
a r e n o t 
made by S o u t h d a l e a n d W h e e l e r / P h i l l i p s , McLemore does 
n o t 
p r o v i d e 
a u t h o r i t y u p o n w h i c h we c a n a f f i r m t h e summary 
j u d g m e n t i n f a v o r o f H y u n d a i i n t h i s c a s e . 
However, McLemore 
does 
n o t e 
t h e p a u c i t y 
o f 
e v i d e n c e 
p r e s e n t e d c o n c e r n i n g 
H y u n d a i ' s i n v o l v e m e n t i n t h e m a t t e r s made t h e b a s i s o f t h i s 
a c t i o n . 
I n r e j e c t i n g t h e a g e n c y a r g u m e n t , we s t a t e d : 
" N o t h i n g b e f o r e us c r e a t e s an i n f e r e n c e t h a t H y u n d a i 
p a r t i c i p a t e d 
i n i d e n t i f y i n g 
t h e l o c a t i o n o f t h e 
p r o p e r t y p r o p o s e d f o r 
t h e p r o j e c t 
s i t e , 
t h a t i t was 
i n v o l v e d i n d r a f t i n g t h e o p t i o n a g r e e m e n t s , 
t h a t i t 
met w i t h t h e p r o p e r t y o w n e r s , o r t h a t i t 
was a p a r t y 
t o 
t h e 
o p t i o n 
a g r e e m e n t s . 
... 
The 
e v i d e n c e 
i n d i c a t e s 
t h a t 
H y u n d a i 
was 
n e v e r 
i n v o l v e d 
i n 
s e l e c t i n g t h e p r o p e r t i e s f o r a c q u i s i t i o n , t h a t i t 
d i d n o t p a r t i c i p a t e i n any o f t h e n e g o t i a t i o n s f o r 
t h e 
o p t i o n 
a g r e e m e n t s , 
a n d 
t h a t 
no 
H y u n d a i 
r e p r e s e n t a t i v e was e v e r p r e s e n t o r c o m m u n i c a t e d 
w i t h 
any 
p r o p e r t y 
owner. 
... 
Thus, 
t h e e v i d e n c e 
i n d i c a t e s 
t h a t t h e IDB, t h e C i t y , t h e C o u n t y , a n d 
t h e 
S t a t e were n o t a c t i n g t o a c q u i r e t h e p r o p e r t i e s 
as an a g e n t o r u n d e r t h e d i r e c t i o n o f H y u n d a i , b u t 
a t 
t h e i r own d i r e c t i o n a n d on t h e i r own 
i n i t i a t i v e 
71 
1070484; 
1070487; 
1070514 
t o 
e n t i c e H y u n d a i t o b u i l d 
an a u t o m o b i l e p l a n t i n 
M o n t g o m e r y C o u n t y . " 
7 So. 3d a t 329. 
I n r e j e c t i n g t h e j o i n t - v e n t u r e a r g u m e n t , 
we 
s t a t e d : 
" H y u n d a i n e v e r h a d a j o i n t o w n e r s h i p i n t e r e s t 
w i t h 
any o f t h e a l l e g e d j o i n t 
v e n t u r e r s 
i n t h e 
p r o p e r t y 
o f 
t h e 
R u s s e l l s 
o r 
t h e McLemore 
g r o u p 
upon 
t h e 
c l o s i n g s on t h e p r o p e r t y . 
A d d i t i o n a l l y , H y u n d a i d i d 
n o t 
p r o v i d e 
f i n a n c i n g 
f o r 
t h e 
p u r c h a s e 
o f 
t h e 
p r o p e r t y , and i t h a d no r i s k o r e x p e n s e s w i t h 
r e g a r d 
t o t h e p u r c h a s e . 
... 
" M o r e o v e r , t h e r e c o r d i n d i c a t e s t h a t H y u n d a i d i d 
n o t have a r i g h t o f c o n t r o l w i t h r e g a r d t o how 
t h e 
p r o p e r t y 
was 
o b t a i n e d . 
N o t h i n g 
i n d i c a t e s 
t h a t 
H y u n d a i 
c o n t r o l l e d t h e a c t i o n s o f t h e IDB o r 
o t h e r 
g o v e r n m e n t a l 
e n t i t i e s 
w i t h 
r e g a r d 
t o t h e s e l e c t i o n 
o f 
t h e 
p r o p e r t y 
f o r 
t h e 
p r o j e c t 
s i t e , 
t h e 
n e g o t i a t i o n 
o f 
t h e 
o p t i o n 
a g r e e m e n t s 
on 
t h e 
p r o p e r t y , 
o r t h e d r a f t i n g o f t h e o p t i o n 
a g r e e m e n t s . 
Thus, 
s u b s t a n t i a l e v i d e n c e o f 
r i g h t 
o f c o n t r o l by 
H y u n d a i i s n o t p r e s e n t e d 
i n t h e 
r e c o r d . 
" A l t h o u g h 
t h e e v i d e n c e does 
t e n d 
t o e s t a b l i s h 
t h a t 
a 
j o i n t 
v e n t u r e 
may 
have 
e x i s t e d b e t w e e n 
t h e 
IDB, 
t h e 
C i t y , 
t h e C o u n t y , 
and 
t h e 
S t a t e 
f o r t h e 
p u r p o s e 
o f 
e n t i c i n g 
H y u n d a i 
t o 
l o c a t e 
an 
a u t o m o b i l e - m a n u f a c t u r i n g 
p l a n t i n M o n t g o m e r y C o u n t y , 
s u b s t a n t i a l e v i d e n c e does n o t e x i s t t o c r e a t e a j u r y 
q u e s t i o n as t o w h e t h e r H y u n d a i was a p a r t i c i p a n t i n 
t h e 
j o i n t 
v e n t u r e . 
The 
e v i d e n c e 
i n d i c a t e s 
t h a t 
H y u n d a i 
m e r e l y 
e v a l u a t e d 
M o n t g o m e r y ' s 
i n c e n t i v e 
p a c k a g e , 
c o m p a r e d 
i t t o 
t h e 
i n c e n t i v e 
p a c k a g e s 
o f f e r e d 
by 
o t h e r 
c o m m u n i t i e s , and d e t e r m i n e d 
t h a t 
M o n t g o m e r y 
p r o v i d e d 
t h e 
b e s t 
p l a c e 
t o 
b u i l d i t s 
p l a n t . " 
7 So. 2d a t 
331-32. 
72 
1070484; 
1070487; 
1070514 
The l a c k o f e v i d e n c e c o n c e r n i n g 
H y u n d a i ' s i n v o l v e m e n t 
i n 
t h e 
e v e n t s made t h e b a s i s o f t h i s 
a c t i o n i s j u s t as c l e a r . 
H y u n d a i 
r e p r e s e n t a t i v e s 
were n o t i n v o l v e d 
i n any o f t h e 
n e g o t i a t i o n s w i t h S o u t h d a l e o r W h e e l e r / P h i l l i p s . 
H y u n d a i was 
n o t a p a r t y t o any o f t h e o p t i o n a g r e e m e n t s o r amendments t o 
t h e 
o p t i o n 
a g r e e m e n t s 
a n d h a d no 
r o l e i n d r a f t i n g 
them. 
H y u n d a i was n o t a p a r t y t o t h e s a l e 
t r a n s a c t i o n s , was n o t 
d e e d e d a n y p r o p e r t y b y S o u t h d a l e o r W h e e l e r / P h i l l i p s , a n d d i d 
n o t 
p r o v i d e 
any o f t h e f u n d s 
u s e d 
t o 
a c q u i r e 
t h e 
l a n d 
n e c e s s a r y f o r 
t h e p r o j e c t . 
H y u n d a i d i d 
n o t e v e n p a r t i c i p a t e 
i n i d e n t i f y i n g t h e 
p r o p e r t y u l t i m a t e l y u s e d as t h e p l a n t 
s i t e . 
Ahn 
t e s t i f i e d 
t h a t 
H y u n d a i was n o t c o n c e r n e d w i t h t h e 
i n d i v i d u a l p a r c e l s t h a t made up t h e l a n d p r o v i d e d t o i t . " B u t 
a c t u a l l a n d a r e a , we d o n ' t l o o k a t , b e c a u s e t o us j u s t 
p r o v i d e 
t h e 
l a n d , w h i c h we n e e d . 
T h a t ' s 
i t . " He made i t 
c l e a r 
t h a t 
e n g a g i n g i n any d i s c u s s i o n s as t o how p r o p e r t y 
f o r 
a p l a n t 
s i t e 
w o u l d be o b t a i n e d 
w o u l d weaken 
H y u n d a i ' s 
n e g o t i a t i n g 
p o s i t i o n . 
Ahn t e s t i f i e d 
t h a t he w o u l d n e v e r have e n g a g e d i n 
any 
d i s c u s s i o n s as t o o b t a i n i n g t h e p r o p e r t y 
w i t h 
S t a t e o r 
l o c a l 
o f f i c i a l s b e c a u s e , " a t t h a t 
s t a g e , 
A l a b a m a 
i s one o f 
[ t h e ] 
c o n t e n d e r s . 
E i t h e r t h e y w i l l w i n o r l o s e . 
I d i d n o t 
a l l o w any p r i v a t e d i s c u s s i o n s . 
C a n n o t h a p p e n l i k e t h a t . " Ahn 
73 
1070484; 1070487; 1070514 
e l a b o r a t e d 
on 
why 
he 
w o u l d 
n o t 
have b e e n 
i n v o l v e d 
i n 
any 
d i s c u s s i o n 
c o n c e r n i n g 
t h e 
m e t h o d s 
u s e d 
t o 
o b t a i n 
l a n d : 
" [ P ] u r c h a s i n g 
l a n d , do 
t h i s 
do 
t h a t , i t ' s n o t 
my 
j o b . 
I t ' s 
t h e i r 
j o b . 
They 
w i l l 
buy 
o r w h a t e v e r 
and 
t h e n 
t r a n s f e r 
t o 
u s . " 
H y u n d a i 
n e v e r 
d i s c u s s e d 
w i t h 
any 
o t h e r 
p r o j e c t 
p a r t i c i p a n t 
t h e e x i s t e n c e 
o f a m o s t - f a v o r e d - n a t i o n 
c l a u s e 
i n 
t h e o p t i o n a g r e e m e n t s o r how 
t h a t c l a u s e m i g h t be 
i m p l i c a t e d 
i n 
t h e 
p u r c h a s e 
o f 
t h e 
S h e l t o n 
p r o p e r t y . 
H y u n d a i 
m e r e l y 
n o t i f i e d 
S t r a n g e t h a t 
i t w a n t e d 
a d d i t i o n a l 
l a n d 
i n o r d e r 
t o 
c l o s e 
t h e 
d e a l . 
I t s r e p r e s e n t a t i v e s had 
no 
k n o w l e d g e 
a b o u t 
t h e p l a n d e v i s e d 
t o o b t a i n t h e o p t i o n f r o m S h e l t o n , 
and 
t h e y 
r e f u s e d t o go a l o n g w i t h t h e m e c h a n i s m f o r t h e p u r c h a s e o f 
t h e 
r a i l 
p r o p e r t y 
by CSX 
p r o p o s e d by 
S t r a n g e . 
H y u n d a i a r g u e s t h a t t h e 
f r a u d c l a i m s 
a g a i n s t 
i t h a v e 
no 
m e r i t b e c a u s e no H y u n d a i r e p r e s e n t a t i v e e v e r knew t h e 
d e t a i l s 
a b o u t 
how 
t h e 
o p t i o n s 
were 
o b t a i n e d 
o r 
c o m m u n i c a t e d 
w i t h 
S o u t h d a l e o r W h e e l e r / P h i l l i p s . 
The b r e a c h - o f - c o n t r a c t 
c l a i m s 
h a v e no m e r i t , 
i t a r g u e s , b e c a u s e H y u n d a i was 
n o t 
a p a r t y 
t o 
any 
c o n t r a c t 
w i t h 
S o u t h d a l e 
o r 
W h e e l e r / P h i l l i p s . 
H y u n d a i 
f u r t h e r 
a r g u e s 
t h a t 
i t c o u l d 
n o t 
have f o r m e d 
t h e 
n e c e s s a r y 
i n t e n t 
t o 
i n t e r f e r e 
w i t h 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s ' s 
74 
1070484; 1070487; 1070514 
c o n t r a c t u a l 
r e l a t i o n s . 
F i n a l l y , 
H y u n d a i 
a r g u e s , 
t h e 
c o n s p i r a c y 
c l a i m s 
h a v e 
no 
m e r i t 
b e c a u s e , 
i t s a y s , 
H y u n d a i 
n e v e r e n g a g e d i n any 
c o n c e r t e d 
c o u r s e 
o f c o n d u c t w i t h any 
o f 
t h e 
o t h e r 
p r o j e c t p a r t i c i p a n t s b u t , 
i n s t e a d , was 
e n g a g e d 
i n 
arm's l e n g t h n e g o t i a t i o n s w i t h them. 
We 
c o n c l u d e 
t h a t 
t h e r e 
i s no 
g e n u i n e 
i s s u e o f 
m a t e r i a l 
f a c t 
as 
t o any 
o f S o u t h d a l e ' s 
and 
W h e e l e r / P h i l l i p s ' s 
c l a i m s 
a g a i n s t H y u n d a i . 
The summary j u d g m e n t e n t e r e d i n i t s f a v o r i s 
due 
t o be 
a f f i r m e d on 
t h i s 
a l t e r n a t i v e g r o u n d . 
V I . 
S t a n d i n g 
o f 
S o u t h d a l e 
I n 
h i s 
c r o s s - a p p e a l , 
S t r a n g e 
u r g e s 
us 
t o 
a f f i r m 
t h e 
summary j u d g m e n t a g a i n s t S o u t h d a l e b a s e d on l a c k o f 
s t a n d i n g .
1 0 
T h i s 
a c t i o n was 
i n i t i a l l y 
commenced by 
S o u t h d a l e , 
LLC, 
and 
o t h e r s 
on 
May 
28, 
2004. 
An 
amended c o m p l a i n t 
was 
f i l e d 
on 
A u g u s t 20, 2004. 
The 
c a p t i o n o f t h e amended c o m p l a i n t 
a g a i n 
r e f e r r e d 
t o 
S o u t h d a l e , 
LLC, 
as 
a 
p l a i n t i f f 
b u t 
a d d e d 
t h e 
p h r a s e , " f / k / a S o u t h d a l e , 
I n c . " 
A t p a r a g r a p h 3 o f t h e amended 
c o m p l a i n t , 
t h e 
f o l l o w i n g a p p e a r s : 
"3. 
The 
p l a i n t i f f 
S o u t h d a l e , 
LLC 
f / k / a 
S o u t h d a l e , 
I n c . 
( ' S o u t h d a l e ' ) i s an A l a b a m a 
l i m i t e d 
1 0 T h e 
o t h e r 
p r o j e c t p a r t i c i p a n t s j o i n e d i n t h e 
a r g u m e n t 
t h a t S o u t h d a l e , 
LLC, 
does n o t h a v e 
s t a n d i n g . 
75 
1070484; 1070487; 1070514 
l i a b i l i t y 
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 M o n t g o m e r y , A l a b a m a .
1 
"
1On 
J u n e 24, 2002 S o u t h d a l e , I n c . was 
d i s s o l v e d 
and 
on J u n e 12, 2002 S o u t h d a l e , 
LLC 
was 
f o r m e d 
and 
assumed a l l r i g h t s 
t o p u r s u e 
t h i s 
a c t i o n on 
b e h a l f 
o f 
S o u t h d a l e 
I n c . 
as 
p r o v i d e d 
f o r by 
A l a . Code 
§ 
1 0 - 2 B - 1 4 . 0 5 ( 6 ) 
( 1 9 7 5 ) . " 
T h e r e 
i s no 
§ 1 0 - 2 B - 1 4 . 0 5 ( 6 ) 
i n t h e A l a b a m a Code 
1975. 
P r e s u m a b l y , 
t h e 
r e f e r e n c e 
i s t o 
§ 1 0 - 2 B - 1 4 . 0 5 ( b ) ( 6 ) , 
w h i c h 
p r o v i d e s 
t h a t 
t h e 
d i s s o l u t i o n 
o f 
a 
c o r p o r a t i o n 
d o e s 
n o t 
" [ p ] r e v e n t 
commencement 
o f 
a 
p r o c e e d i n g 
by 
o r 
a g a i n s t 
t h e 
c o r p o r a t i o n 
i n 
i t s c o r p o r a t e 
name." 
However, 
b e c a u s e 
t h e 
a c t i o n was 
n e v e r commenced i n t h e name o f S o u t h d a l e , I n c . , 
t h e 
d i s s o l v e d 
e n t i t y , 
t h i s Code s e c t i o n d o e s n o t 
a p p l y . 
S t r a n g e 
moved 
t o 
d i s m i s s 
t h e 
amended 
c o m p l a i n t 
and 
a l l e g e d : 
" [ S o u t h d a l e ] 
l a c k [ s ] 
s t a n d i n g 
t o 
a s s e r t 
c l a i m s 
a g a i n s t S t r a n g e . 
[ S o u t h d a l e 
has] 
n o t a l l e g e d ; o r shown, t h a t 
any 
o f 
S t r a n g e ' s 
c o n d u c t 
c a u s e d 
them 
any 
i n j u r y . " 
A 
s u b s e q u e n t memorandum i n s u p p o r t o f t h e m o t i o n t o d i s m i s s d o e s 
n o t a d d r e s s t h e i s s u e o f s t a n d i n g . 
On 
J u l y 11, 2006, S t r a n g e 
f i l e d 
a 
m o t i o n 
f o r 
a 
summary 
j u d g m e n t , 
c h a l l e n g i n g 
t h e 
s t a n d i n g 
o f S o u t h d a l e , LLC, 
t o a s s e r t t h e c l a i m s 
c o n t a i n e d 
i n 
t h e c o m p l a i n t . 
I n t h e m o t i o n S t r a n g e a l l e g e s t h a t a t t h e 
t i m e 
76 
1070484; 1070487; 1070514 
o f t h e commencement o f t h e 
a c t i o n , S o u t h d a l e , 
I n c . , 
had 
b e e n 
d i s s o l v e d 
and 
t h a t 
S o u t h d a l e , 
LLC, 
n e v e r owned t h e 
p r o p e r t y 
t h a t S o u t h d a l e , 
I n c . , 
t h e 
d i s s o l v e d 
c o r p o r a t i o n , 
t r a n s f e r r e d 
t o t h e 
C i t y and 
t h e C o u n t y p u r s u a n t t o t h e 
o p t i o n 
a g r e e m e n t . 
On 
O c t o b e r 2, 2007, a f t e r a h e a r i n g 
on 
S t r a n g e ' s m o t i o n 
on S e p t e m b e r 21, 2007, S o u t h d a l e , LLC, 
s u p p l e m e n t e d t h e 
r e c o r d 
by 
f i l i n g 
a 
document 
d a t e d 
S e p t e m b e r 
28, 
2007, 
i n 
w h i c h 
S o u t h d a l e , 
I n c . , 
t r a n s f e r r e d 
t o S o u t h d a l e , 
LLC, 
i t s 
a s s e t s , 
i n c l u d i n g 
any 
and 
a l l p e r s o n a l 
a s s e t s 
and 
c h o s e s 
i n 
a c t i o n 
a r i s i n g 
o u t 
o f 
any 
c o n t r a c t 
t o 
s e l l 
a n d / o r 
t h e 
s a l e 
o f 
any 
r e a l p r o p e r t y 
by S o u t h d a l e , I n c . 
A t t h e same t i m e , S o u t h d a l e , 
LLC, 
f i l e d an a f f i d a v i t o f R e e s e H. M c K i n n e y , J r . , i n w h i c h 
he 
d e s c r i b e d 
h i m s e l f 
as p r e s i d e n t 
o f S o u t h d a l e , I n c . , a t t h e 
t i m e 
o f i t s d i s s o l u t i o n i n 2002 and 
f u r t h e r s t a t e d t h a t 
i t was 
t h e 
p u r p o s e and 
i n t e n t o f S o u t h d a l e , I n c . , t o c o n v e y t o S o u t h d a l e , 
LLC, 
a l l o f 
i t s u n d i s t r i b u t e d 
a s s e t s - - " r e a l , 
p e r s o n a l , 
and 
m i x e d " - - r e t a i n i n g 
n o t h i n g 
i n t h e 
c o r p o r a t i o n . 
S o u t h d a l e 
d i d 
n o t 
s e e k 
p e r m i s s i o n 
f r o m 
t h e 
t r i a l 
c o u r t 
t o 
f i l e 
t h e s e 
e v i d e n t i a r y 
s u b m i s s i o n s 
a f t e r 
t h e 
h e a r i n g 
on 
t h e 
summary-
j u d g m e n t m o t i o n . 
S t r a n g e 
and 
CSX 
f i l e d 
m o t i o n s 
t o 
s t r i k e 
t h e s e a d d i t i o n a l e v i d e n t i a r y m a t e r i a l s , 
c i t i n g as g r o u n d s 
f o r 
s t r i k i n g u n t i m e l i n e s s , 
i n c o n s i s t e n c i e s b e t w e e n t h e 
a f f i d a v i t 
77 
1070484; 1070487; 1070514 
and 
t h e 
p r e v i o u s 
d e p o s i t i o n 
t e s t i m o n y 
o f 
M c K i n n e y , 
and 
h e a r s a y .
1 1 
S t r a n g e p o i n t s o u t 
t h a t t h e d o c u m e n t s e x e c u t e d 
a t 
t h e t i m e o f t h e 
d i s s o l u t i o n o f S o u t h d a l e , 
I n c . , 
do 
n o t 
r e f e r 
t o 
a s s i g n m e n t s 
o f 
a s s e t s 
o f 
S o u t h d a l e , 
I n c . , 
o t h e r 
t h a n 
c e r t a i n 
r e a l p r o p e r t y 
n o t 
i n v o l v e d i n t h e t r a n s a c t i o n t h a t i s 
t h e 
b a s i s 
o f 
t h i s 
a c t i o n . 
S t r a n g e 
c o n t e n d s 
t h a t 
a c t i o n s 
a l l e g i n g 
m i s r e p r e s e n t a t i o n 
and 
d e c e i t 
a r e 
p e r s o n a l 
a c t i o n s 
t h a t 
r u n 
w i t h 
t h e 
o w n e r s h i p 
o f 
t h e 
p r o p e r t y 
and 
a r e 
n o t 
a s s i g n a b l e . 
S t r a n g e 
a r g u e s 
t h a t 
S o u t h d a l e , 
I n c . , 
as 
a 
d i s s o l v e d c o r p o r a t i o n , h a d 
s t a n d i n g 
t o commence t h e a c t i o n i n 
i t s 
own name and 
f a i l e d t o do s o . 
The 
t r i a l c o u r t n e v e r r u l e d 
on t h e m o t i o n s t o s t r i k e ; 
i n s t e a d , one month l a t e r , 
t h e 
t r i a l 
c o u r t 
e n t e r e d 
a 
f i n a l j u d g m e n t on 
o t h e r 
g r o u n d s . 
The 
t r i a l 
c o u r t 
s t a t e d : 
" B e c a u s e 
t h e 
C o u r t 
f i n d s 
t h a t 
t h e r e 
has 
b e e n 
no 
b r e a c h 
o f 
c o n t r a c t 
as 
t o 
[ S o u t h d a l e ] , 
and 
b e c a u s e 
a l l 
t o r t c l a i m s 
a r e d i s m i s s e d 
by 
a p p l i c a t i o n o f 
t h e 
S t a t u t e 
o f 
L i m i t a t i o n s , 
i t 
i s 
n o t 
n e c e s s a r y 
t o 
a d d r e s s 
[ S o u t h d a l e ' s ] 
s t a n d i n g 
t o 
b r i n g 
t h i s 
a c t i o n . " 
On a p p e a l , 
S o u t h d a l e , LLC, 
r e l i e s upon t h e t r a n s f e r - o f - a s s e t s 
document e x e c u t e d a f t e r t h e i s s u e had b e e n r a i s e d i n S t r a n g e ' s 
1 1The 
IDB 
and 
T h o r n t o n j o i n e d i n t h e m o t i o n s t o 
s t r i k e . 
78 
1070484; 1070487; 1070514 
m o t i o n 
f i l e d i n J u l y 2006 and a f t e r t h e a r g u m e n t on t h e m o t i o n 
i n S e p t e m b e r 2007. 
S t r a n g e ' s m o t i o n f o r a summary j u d g m e n t was 
s u p p o r t e d by 
ample e v i d e n c e 
o f t h e 
l a c k 
o f any 
i n t e r e s t 
on 
t h e p a r t 
o f 
S o u t h d a l e , LLC, 
i n t h e t r a n s a c t i o n t h a t i s t h e b a s i s o f 
t h i s 
a c t i o n , 
t h e r e b y 
s h i f t i n g 
t h e 
b u r d e n 
t o 
S o u t h d a l e , 
LLC, 
t o 
a d d u c e s u b s t a n t i a l e v i d e n c e i n o p p o s i t i o n . 
B a s s v. S o u t h T r u s t  
Bank 
o f B a l d w i n 
C o u n t y , 
538 
So. 
2d 
794 
( A l a . 1 9 8 9 ) . 
The 
m o t i o n 
r e m a i n e d 
p e n d i n g 
f o r o v e r a y e a r . 
B e f o r e t h e h e a r i n g 
on 
S e p t e m b e r 
21, 
2007, 
S o u t h d a l e , 
LLC, 
o f f e r e d 
no 
w r i t t e n 
r e s p o n s e 
o r e v i d e n c e . 
As 
p r e v i o u s l y n o t e d , 
S o u t h d a l e , 
LLC, 
f i l e d 
a d d i t i o n a l e v i d e n c e 
a f t e r t h e h e a r i n g , and S t r a n g e 
and 
CSX moved t o s t r i k e 
t h a t e v i d e n c e , n o t i n g t h e a b s e n c e o f 
any 
e v i d e n c e i n o p p o s i t i o n b e f o r e t h e h e a r i n g and t h e u n t i m e l i n e s s 
o f t h e e v i d e n c e o f f e r e d a f t e r t h e h e a r i n g . 
I n i t s r e p l y 
b r i e f 
b e f o r e t h i s C o u r t , S o u t h d a l e , LLC, o f f e r s as j u s t i f i c a t i o n f o r 
t h e 
b e l a t e d 
s u b m i s s i o n 
t h e 
a r g u m e n t 
o f 
t h e 
p r o j e c t 
p a r t i c i p a n t s a t t h e h e a r i n g t h a t S o u t h d a l e , I n c . , c o u l d h a v e 
made s u c h an 
a s s i g n m e n t . 
We do n o t r e a c h t h e i s s u e w h e t h e r t h e summary j u d g m e n t i s 
due t o be a f f i r m e d on t h e b a s i s o f S o u t h d a l e ' s a l l e g e d l a c k o f 
s t a n d i n g , 
i n v i e w 
o f 
t h e 
t r i a l 
c o u r t ' s h a v i n g 
deemed i t 
79 
1070484; 1070487; 1070514 
u n n e c e s s a r y 
t o r e a c h 
t h i s 
i s s u e 
and t h e p e n d e n c y o f t h e 
m o t i o n s t o s t r i k e t h e e v i d e n c e b e l a t e d l y o f f e r e d i n o p p o s i t i o n 
t o 
t h e m o t i o n . 
I t s f a i l u r e 
t o r e a c h t h e i s s u e o f 
s t a n d i n g 
e x p l a i n s t h e t r i a l 
c o u r t ' s 
f a i l u r e t o r u l e on t h e s e m o t i o n s . 
The 
t r i a l 
c o u r t has 
d i s c r e t i o n 
i n d e c i d i n g 
w h e t h e r 
t o 
p e r m i t 
a p a r t y 
t o r e o p e n 
a c a s e 
and t o 
o f f e r 
a d d i t i o n a l 
e v i d e n c e . 
G r e e n T r e e A c c e p t a n c e , I n c . v. S t a n d r i d g e , 565 So. 
2d 
38, 
46 
( A l a . 1 9 9 0 ) . 
W i t h o u t 
t h e 
e x e r c i s e 
o f 
t h a t 
d i s c r e t i o n i n f a v o r o f t h e n o n m o v a n t , t h e f a i l u r e t o s u b m i t 
e v i d e n c e i n o p p o s i t i o n t o t h e summary-judgment m o t i o n 
u n t i l 
a f t e r a h e a r i n g on t h e m o t i o n 
c o n s t i t u t e s a f a i l u r e 
on t h e 
n o n m o v a n t ' s p a r t t o s u s t a i n i t s 
b u r d e n . 
H a r r i s v . H e a l t h C a r e  
A u t h . o f H u n t s v i l l e , 6 So. 3d 468, 477-78 ( A l a . 2 0 0 8 ) . 
S u c h 
d i s c r e t i o n 
t o a l l o w 
a t a r d y 
r e s p o n s e 
b e f o r e t h e 
e n t r y o f a j u d g m e n t on t h e m o t i o n must o r d i n a r i l y be i n v o k e d 
by a m o t i o n 
f i l e d u n d e r R u l e 6 ( b ) , 
A l a . R. C i v . P. ("When b y 
t h e s e r u l e s ... an a c t i s r e q u i r e d o r a l l o w e d t o be done a t o r 
w i t h i n a s p e c i f i e d t i m e , t h e c o u r t f o r c a u s e shown may a t any 
t i m e i n i t s 
d i s c r e t i o n 
(2) 
upon m o t i o n made a f t e r t h e 
e x p i r a t i o n o f t h e s p e c i f i e d p e r i o d p e r m i t t h e a c t t o be done 
where t h e f a i l u r e t o a c t was t h e r e s u l t o f e x c u s a b l e n e g l e c t 
" ) . 
However, a r e s p o n s e t o a m o t i o n t o s t r i k e 
c a n be 
80 
1070484; 1070487; 1070514 
t r e a t e d as a m o t i o n u n d e r R u l e 
6 ( b ) ( 2 ) 
and 
s h o u l d be 
d i s p o s e d 
o f p u r s u a n t 
t o t h e s t a n d a r d e s t a b l i s h e d t h e r e i n . 
See 
H a r d w i c k  
v. S u n b e l t R e n t a l s , I n c . , 
(No. 09-CV-1106) (C.D. 
I l l . May 
13, 
2009) 
( n o t 
r e p o r t e d 
i n 
F. 
Supp. 
2 d ) , 
d e a l i n g 
w i t h 
t h e 
a n a l o g o u s 
f e d e r a l r u l e 
("Moving on 
t o 
P l a i n t i f f ' s 
m o t i o n 
t o 
s t r i k e 
U n i o n ' s 
A n s w e r , 
P l a i n t i f f 
p o i n t s 
o u t 
t h a t , 
b e f o r e 
f i l i n g i t s A n s w e r l a t e , U n i o n f a i l e d 
t o r e q u e s t l e a v e o f 
C o u r t 
t o 
do 
so 
u n d e r 
Fed. 
R. 
C i v . 
P. 
6 ( b ) ( 1 ) ( B ) . 
A l t h o u g h 
P l a i n t i f f ' s o b s e r v a t i o n a p p e a r s t o be c o r r e c t , f o r p u r p o s e s o f 
e f f i c i e n c y , 
t h e 
C o u r t 
w i l l 
c o n s t r u e 
U n i o n ' s 
r e s p o n s e 
t o 
P l a i n t i f f ' s 
m o t i o n f o r d e f a u l t j u d g m e n t as a R u l e 
6 ( b ) ( 1 ) ( B ) 
m o t i o n f o r l e a v e t o 
f i l e 
an u n t i m e l y 
a n s w e r . " ) . 
On 
remand, b e f o r e 
r e a c h i n g 
t h e 
m e r i t s 
o f 
t h e 
i s s u e 
o f 
S o u t h d a l e ' s 
s t a n d i n g , t h e 
t r i a l c o u r t must r u l e on t h e m o t i o n s 
t o 
s t r i k e . 
I n v i e w o f t h e u n s e t t l e d s t a t u s o f t h e 
e v i d e n c e 
p r o p e r l y 
t o be 
c o n s i d e r e d , 
an 
i s s u e n o t 
y e t 
r e s o l v e d by 
t h e 
t r i a l 
c o u r t , 
we 
d e c l i n e 
t o 
r e a c h 
t h e 
q u e s t i o n 
w h e t h e r 
t h e 
i s s u e o f s t a n d i n g i s an a p p r o p r i a t e a l t e r n a t i v e b a s i s on w h i c h 
t o 
a f f i r m t h e 
t r i a l 
c o u r t ' s j u d g m e n t as t o 
S o u t h d a l e . 
V I I . 
S p e c i a l - M a s t e r 
Fee 
A f t e r 
t h e 
t r i a l 
c o u r t g r a n t e d 
t h e p r o j e c t 
p a r t i c i p a n t s ' 
m o t i o n t o 
d i s q u a l i f y 
S o u t h d a l e ' s 
i n i t i a l 
c o u n s e l , 
t h e 
t r i a l 
81 
1070484; 1070487; 1070514 
c o u r t 
a p p o i n t e d 
a s p e c i a l m a s t e r t o o v e r s e e t h e 
t r a n s f e r 
o f 
f i l e s 
and 
o t h e r 
m a t e r i a l s 
f r o m t h e 
d i s q u a l i f i e d 
l a w 
f i r m 
t o 
t h e 
r e p l a c e m e n t 
l a w 
f i r m 
and 
t o 
r e v i e w 
t h e 
f i l e s 
o f 
t h e 
d i s q u a l i f i e d 
f i r m 
t o 
d e t e r m i n e 
w h e t h e r 
t h e r e 
were 
any 
m a t e r i a l s 
o r 
i n f o r m a t i o n 
a c q u i r e d 
b e c a u s e 
o f 
Lee 
M i l l e r ' s 
a f f i l i a t i o n 
w i t h 
t h e 
f i r m f o l l o w i n g h i s employment w i t h 
t h e 
D e p a r t m e n t 
o f 
F i n a n c e 
i n 
o r d e r 
t h a t 
no 
s u c h 
m a t e r i a l s 
o r 
i n f o r m a t i o n were f o r w a r d e d t o r e p l a c e m e n t c o u n s e l . 
A l t h o u g h 
t h e 
s p e c i a l 
m a s t e r 
r e p o r t e d 
t h a t 
no 
s u c h 
m a t e r i a l s 
o r 
i n f o r m a t i o n was 
a c q u i r e d , 
t h e o v e r s i g h t and 
r e v i e w were 
t i m e -
c o n s u m i n g , r e s u l t i n g i n a s p e c i a l - m a s t e r 
f e e o f o v e r $ 2 8 , 0 0 0 . 
The 
t r i a l 
c o u r t 
o r d e r e d 
S o u t h d a l e 
t o pay 
t h e 
s p e c i a l - m a s t e r 
f e e 
i n i t s e n t i r e t y . 
S o u t h d a l e a r g u e s 
t h a t b e c a u s e 
t h e m o t i o n 
t o 
d i s q u a l i f y 
and 
t h e 
s u b s e q u e n t 
e f f o r t s 
by 
t h e 
s p e c i a l 
m a s t e r 
were 
i n i t i a t e d by t h e r e m a i n i n g 
p r o j e c t p a r t i c i p a n t s , t h e 
s p e c i a l -
m a s t e r 
f e e 
s h o u l d 
h a v e b e e n b o r n e 
e i t h e r 
e n t i r e l y 
by 
t h e 
p r o j e c t p a r t i c i p a n t s o r 
s p l i t b e t w e e n them and 
S o u t h d a l e 
and 
t h a t 
i t 
i s 
u n f a i r 
t o 
r e q u i r e 
S o u t h d a l e 
t o 
pay 
f o r 
an 
i n v e s t i g a t i o n 
t h a t showed, i t a r g u e s , 
t h a t 
d i s q u a l i f i c a t i o n 
was 
n o t w a r r a n t e d . 
S o u t h d a l e c i t e s no a u t h o r i t y i n i t s b r i e f , 
82 
1070484; 1070487; 1070514 
h o w e v e r , t o s u p p o r t i t s a r g u m e n t , as r e q u i r e d by R u l e 28, 
A l a . 
R. 
App. 
P. 
The 
i n c l u s i o n o f 
a s p e c i a l - m a s t e r 
f e e 
as 
an e l e m e n t 
o f 
c o s t s t a x e d a g a i n s t a p a r t y i s " e n t i r e l y d i s c r e t i o n a r y , and 
we 
w i l l 
n o t 
r e v e r s e 
u n l e s s 
i t a p p e a r s 
f r o m 
t h e 
r e c o r d , 
a f t e r 
i n d u l g i n g 
a l l f a i r 
i n t e n d m e n t s 
i n f a v o r 
o f 
t h e 
r u l i n g , 
t h a t 
t h e 
t a x a t i o n 
o f 
c o s t s 
was 
u n j u s t 
and 
u n f a i r . 
W a l d e n 
v. 
 
W a l d e n , 
277 
A l a . 
459, 
171 
So. 
2d 
851 
( 1 9 6 5 ) . " 
C i t y 
o f 
 
B i r m i n g h a m v. C i t y o f F a i r f i e l d , 
396 
So. 
2d a t 697. 
I n W a l d e n  
v. W a l d e n , 
277 
A l a . 
459, 
171 
So. 
2d 
851 
( 1 9 6 5 ) , 
t h i s 
C o u r t 
s t a t e d : 
"The 
t h r e e c a s e s c i t e d by a p p e l l e e s h o l d t h a t i n 
e q u i t y 
t h e 
m a t t e r 
o f 
c o s t s 
r e s t s 
l a r g e l y i n 
t h e 
d i s c r e t i o n 
o f 
t h e 
c h a n c e l l o r 
and 
t h a t 
t h e 
t a x a t i o n 
o f 
c o s t s 
may 
be 
v a r i e d 
as 
t h e 
j u s t i c e 
o f 
t h e 
c a s e 
may 
r e q u i r e . 
Thompson v. 
B r y a n t , 
251 
A l a . 
566, 
38 
So. 
2d 
590 
[ ( 1 9 4 9 ) ] ; 
P l a t e a u Community 
A s s o c i a t i o n  
v. G r e e n , 243 
A l a . 531, 
10 
So. 
2d 
860 
[ ( 1 9 4 2 ) ] ; 
and 
K e n n e d y 
v. 
S o r s b y , 
209 
A l a . 
188, 
95 
So. 
891 
[ ( 1 9 2 3 ) ] . 
E q u i t y 
u s u a l l y f o l l o w s t h e 
g e n e r a l 
r u l e 
 
a t 
l a w 
t h a t 
c o s t s 
a r e 
a w a r d e d 
i n f a v o r 
o f 
and 
n o t 
 
a g a i n s t 
t h e 
s u c c e s s f u l p a r t y i n t h e 
s u i t . 
L u c a s 
v.  
L u c a s , 
258 
A l a . 
515, 
64 
So. 
2d 
70 
[ ( 1 9 5 3 ) ] ; 
D o z i e r 
 
v. P a y n e , 244 
A l a . 476, 
14 
So. 
2d 376 
[ ( 1 9 4 3 ) ] . 
An 
i m p r o p e r 
e x e r c i s e 
o f 
d i s c r e t i o n a p p e a r s when 
t h e 
r e c o r d , 
a f t e r 
i n d u l g i n g 
a l l 
f a i r 
i n t e n d m e n t s 
i n 
f a v o r o f t h e 
r u l i n g , d i s c l o s e s t h e t a x a t i o n o f 
c o s t s 
was 
u n j u s t 
and 
u n f a i r ; o t h e r w i s e , 
t h e 
a c t i o n o f 
t h e 
t r i a l 
c o u r t 
s h o u l d 
n o t 
be 
d i s t u r b e d . 
D o z i e r 
v. 
 
P a y n e , 244 
A l a . 476, 
14 
So. 
2d 
376." 
83 
1070484; 1070487; 1070514 
277 
A l a . a t 462, 171 So. 2d a t 854 ( e m p h a s i s a d d e d ) . 
I n v i e w 
o f t h e t r i a l 
c o u r t ' s o r d e r a d v e r s e t o S o u t h d a l e on t h e i s s u e 
o f d i s q u a l i f i c a t i o n , we do n o t f i n d t h e a w a r d o f t h e s p e c i a l -
m a s t e r f e e as c o s t s i n f a v o r o f t h e p r o j e c t p a r t i c i p a n t s t o be 
u n j u s t 
o r 
u n f a i r . 
The 
t r i a l 
c o u r t 
d i d n o t e x c e e d i t s 
d i s c r e t i o n 
i n o r d e r i n g 
S o u t h d a l e t o p a y t h e 
s p e c i a l - m a s t e r 
f e e . 
V I I I . 
A t t o r n e y - C l i e n t P r i v i l e g e and Work 
P r o d u c t 
W h e e l e r / P h i l l i p s 
r e t a i n e d 
W i l l i a m s 
t o r e p r e s e n t 
t h e i r 
i n t e r e s t s 
and t o n e g o t i a t e 
w i t h 
t h e IDB and 
o t h e r s 
w i t h 
r e s p e c t t o t h e s a l e o f t h e i r p r o p e r t y . 
I n A u g u s t 2007, CSX 
moved t o c o m p e l t h e p r o d u c t i o n 
o f W i l l i a m s ' s 
e n t i r e 
l e g a l 
f i l e , 
i n c l u d i n g h i s c o r r e s p o n d e n c e and c o m m u n i c a t i o n s 
w i t h 
W h e e l e r / P h i l l i p s . 
W h e e l e r / P h i l l i p s o b j e c t e d t o p r o d u c i n g t h e 
f i l e on t h e g r o u n d o f a t t o r n e y - c l i e n t p r i v i l e g e ; 
W i l l i a m s ' s 
l a w 
f i r m o b j e c t e d on t h e g r o u n d t h a t t h e f i l e was 
a t t o r n e y 
w o r k p r o d u c t . 
The t r i a l c o u r t f o u n d t h a t W h e e l e r / P h i l l i p s h a d 
w a i v e d 
t h e 
a t t o r n e y - c l i e n t 
p r i v i l e g e 
b e c a u s e 
t h e y 
h a d 
s u b m i t t e d 
W i l l i a m s ' s 
a f f i d a v i t i n o p p o s i t i o n t o m o t i o n s f o r 
a 
summary j u d g m e n t f i l e d b y t h e p r o j e c t p a r t i c i p a n t s and b e c a u s e 
W h e e l e r h a d s u b m i t t e d h e r own a f f i d a v i t . 
The t r i a l c o u r t a l s o 
f o u n d 
t h a t 
W h e e l e r / P h i l l i p s h a d w a i v e d t h e a t t o r n e y - c l i e n t 
p r i v i l e g e b e c a u s e t h e y h a d p r o d u c e d a l e t t e r W i l l i a m s w r o t e t o 
84 
1070484; 
1070487; 
1070514 
M c K i n n e y , who was n e v e r one o f W i l l i a m s ' s 
c l i e n t s . 
The 
c o u r t 
r e a s o n e d t h a t b e c a u s e W i l l i a m s h a d n e g o t i a t e d w i t h t h e p r o j e c t 
p a r t i c i p a n t s 
and 
h a d 
p a r t i c i p a t e d i n 
d r a f t i n g t h e 
o p t i o n 
a g r e e m e n t s 
and 
amended 
o p t i o n 
a g r e e m e n t s , 
" i t i s 
b e y o n d 
d i s p u t e 
t h a t a t t o r n e y - c l i e n t c o m m u n i c a t i o n s b e t w e e n 
W i l l i a m s 
and W h e e l e r / P h i l l i p s a r e r e q u i r e d f o r t h e t r u t h f u l r e s o l u t i o n 
o f 
t h i s 
c a s e . " 
R e l y i n g on R u l e 510, A l a . R. 
E v i d . , and 
Ex  
p a r t e G r e a t A m e r i c a n S u r p l u s L i n e s I n s u r a n c e Co., 540 So. 2d 
1357 
( A l a . 1 9 8 9 ) , t h e 
t r i a l 
c o u r t h e l d t h a t W h e e l e r / P h i l l i p s 
h a d u s e d p r i v i l e g e d c o m m u n i c a t i o n s "as b o t h s w o r d and 
s h i e l d , " 
and i t o r d e r e d W h e e l e r / P h i l l i p s t o d i s c l o s e W i l l i a m s ' s 
f i l e . 
R u l e 
510 
s t a t e s 
t h a t 
t h e w a i v e r o f a p r i v i l e g e 
o c c u r s 
o n l y where t h e h o l d e r o f t h e p r i v i l e g e 
" v o l u n t a r i l y d i s c l o s e s 
o r c o n s e n t s t o t h e d i s c l o s u r e o f any 
s i g n i f i c a n t p a r t o f t h e 
p r i v i l e g e d m a t t e r . " 
W h e e l e r / P h i l l i p s a r g u e t h a t t h e y n e v e r 
d i s c l o s e d 
o r c o n s e n t e d t o t h e d i s c l o s u r e o f any 
p r i v i l e g e d 
i n f o r m a t i o n . 
They a r g u e 
t h a t 
t h e 
l e t t e r 
f r o m W i l l i a m s 
t o 
M c K i n n e y 
m e r e l y 
s e t s 
o u t 
i n f o r m a t i o n 
W i l l i a m s 
h a d 
l e a r n e d 
a b o u t t h e c i r c u m s t a n c e s u n d e r w h i c h t h e o p t i o n t o t h e 
S h e l t o n 
p r o p e r t y was o b t a i n e d and t h e p u r c h a s e o f t h a t p r o p e r t y by t h e 
S t a t e and t h a t i t 
made no d i s c l o s u r e t o M c K i n n e y o f what c o u l d 
be c o n s i d e r e d 
p r i v i l e g e d c o m m u n i c a t i o n s b e t w e e n 
W i l l i a m s 
and 
W h e e l e r / P h i l l i p s . 
A l t h o u g h t h e l e t t e r t o M c K i n n e y i n c l u d e d a 
85 
1070484; 1070487; 1070514 
s m a l l 
e x c e r p t 
f r o m a p o r t i o n o f a l e t t e r 
W i l l i a m s 
w r o t e t o 
W h e e l e r / P h i l l i p s , t h e e x c e r p t c o n t a i n e d 
o n l y a d e s c r i p t i o n o f 
what G e o r g e h a d t o l d W i l l i a m s a n d M c K i n n e y i n 
a p r i o r m e e t i n g 
and, 
t h e y a r g u e , d o e s n o t c o n s t i t u t e a s i g n i f i c a n t p a r t o f 
t h e 
p r i v i l e g e d c o m m u n i c a t i o n . 
See R u l e 510, A d v i s o r y 
C o m m i t t e e 
N o t e s 
( " D i s c l o s u r e o f an i n s i g n i f i c a n t p a r t o f t h e p r i v i l e g e d 
m a t t e r does n o t w a i v e t h e p r i v i l e g e . " ) . 
M o r e o v e r , 
W h e e l e r / P h i l l i p s 
a r g u e , 
any 
w a i v e r 
o f t h e 
a t t o r n e y - c l i e n t 
p r i v i l e g e 
must be made by t h e c l i e n t a n d 
c a n n o t be made by t h e l a w y e r 
r e p r e s e n t i n g t h e c l i e n t 
w i t h o u t 
t h e 
c l i e n t ' s 
c o n s e n t . 
S w a i n v . T e r r y , 454 So. 2d 948 ( A l a . 
1 9 8 4 ) . 
W h e e l e r / P h i l l i p s m a i n t a i n 
t h a t 
t h e r e i s no e v i d e n c e 
i n d i c a t i n g t h a t t h e y c o n s e n t e d t o W i l l i a m s ' s w a i v i n g a n y p a r t 
o f 
t h e a t t o r n e y - c l i e n t p r i v i l e g e 
a n d 
t h a t 
he 
c a n n o t 
be 
c o m p e l l e d t o t e s t i f y a g a i n s t them as t o a d v i c e he gave them o r 
o t h e r c o m m u n i c a t i o n s t h a t m i g h t p r e j u d i c e them i n t h i s 
c a s e . 
R i c h a r d s v. L e n n o x I n d u s . , I n c . , 574 So. 2d 736 ( A l a . 1 9 9 0 ) . 
F i n a l l y , W h e e l e r / P h i l l i p s a r g u e , W i l l i a m s ' s a f f i d a v i t was 
o f f e r e d i n o p p o s i t i o n t o t h e p r o j e c t p a r t i c i p a n t s ' m o t i o n 
f o r 
a summary j u d g m e n t . 
I t d i d 
n o t d i s c l o s e any c o m m u n i c a t i o n s 
b e t w e e n W i l l i a m s a n d W h e e l e r / P h i l l i p s , t h e y s a y , 
a n d d i d n o t 
i n j e c t 
p r i v i l e g e d 
m a t t e r 
i n t o 
t h e s e 
p r o c e e d i n g s . 
The 
a f f i d a v i t 
m e r e l y 
a d d r e s s e d 
d i s c l o s u r e s made t o W i l l i a m s b y 
86 
1070484; 1070487; 1070514 
c e r t a i n 
p r o j e c t p a r t i c i p a n t s o r t h e i r 
r e p r e s e n t a t i v e s 
a b o u t 
w h i c h t h e p r o j e c t p a r t i c i p a n t s h a d a l r e a d y d e p o s e d h i m . As t o 
W h e e l e r ' s a f f i d a v i t , she d i d 
n o t r e v e a l any c o m m u n i c a t i o n she 
had h a d w i t h W i l l i a m s 
e x c e p t t o s a y t h a t he i n f o r m e d h e r i n 
November 2002 t h a t a h i g h e r 
p r i c e p e r a c r e h a d b e e n p a i d t o 
a n o t h e r 
l a n d o w n e r . 
E s s e n t i a l l y , 
t h e p r o j e c t 
p a r t i c i p a n t s s e e k 
i n f o r m a t i o n 
c o n c e r n i n g 
what W i l l i a m s and h i s c l i e n t s knew a b o u t 
m a t t e r s 
p e r t i n e n t t o t h e t o l l i n g o f t h e s t a t u t e o f l i m i t a t i o n s on t h e 
f r a u d c l a i m s and when t h e y knew i t . 
T h a t i s s u e i s c r i t i c a l t o 
t h e 
v i a b i l i t y 
o f t h e f r a u d 
c l a i m s . 
W i l l i a m s 
h a s g i v e n 
an 
a f f i d a v i t s u b m i t t e d as e v i d e n c e i n t h i s c a s e c o n c e r n i n g 
f a c t s 
s u c h 
as when 
he 
r e c e i v e d 
a 
c o p y 
o f t h e 
S h e l t o n 
o p t i o n 
a g r e e m e n t and t h e s t e p s 
he t o o k t o d e t e r m i n e 
w h e t h e r t h e 
o p t i o n 
h a d b e e n 
e x e r c i s e d . 
W h e e l e r 
h a s 
a l s o 
g i v e n 
an 
a f f i d a v i t c o n c e r n i n g what W i l l i a m s 
t o l d h e r a b o u t t h e S h e l t o n 
o p t i o n 
a g r e e m e n t . 
The 
t r i a l 
c o u r t h a s g r a n t e d t h e m o t i o n t o c o m p e l 
W i l l i a m s 
t o p r o d u c e h i s e n t i r e l e g a l 
f i l e . 
P r o d u c t i o n 
o f t h e e n t i r e 
f i l e 
sweeps t o o b r o a d l y ; 
d o c u m e n t s 
r e l a t i n g t o 
i n f o r m a t i o n 
l e a r n e d 
b y 
W i l l i a m s 
f r o m 
t h i r d 
p a r t i e s 
d u r i n g 
h i s 
i n v e s t i g a t i o n 
d e a l i n g 
w i t h 
t h e t i m i n g o f h i s k n o w l e d g e o f 
a l l e g e d 
f r a u d , 
m a t t e r s 
h i g h l y 
r e l e v a n t t o t h e i s s u e o f t h e 
87 
1070484; 1070487; 1070514 
t o l l i n g 
o f t h e s t a t u t e o f l i m i t a t i o n s on t h e f r a u d 
c l a i m s , 
c o n s t i t u t e h i s work p r o d u c t 
i f p r e p a r e d 
i n a n t i c i p a t i o n o f 
l i t i g a t i o n o r f o r t r i a l . 
See R u l e 2 6 ( b ) ( 3 ) , A l a . 
R. C i v . 
P. 
Of c o u r s e , some o f t h o s e d o c u m e n t s m i g h t p r e d a t e t h e t i m e when 
t h i s l i t i g a t i o n was i m m i n e n t . 
However, t h a t c i r c u m s t a n c e 
d o e s 
n o t p r e c l u d e t h e s t a t u s o f t h e d o c u m e n t s as w o r k p r o d u c t . 
See 
U n i t e d 
S t a t e s v . E l P a s o Co., 682 F.2d 530, 542-43 ( 5 t h 
C i r . 
1982) 
( " ' [ L ] i t i g a t i o n n e e d n o t [ n e c e s s a r i l y ] be i m m i n e n t ... 
as l o n g as t h e p r i m a r y 
m o t i v a t i n g p u r p o s e b e h i n d t h e c r e a t i o n 
o f t h e document was t o a i d i n p o s s i b l e f u t u r e 
l i t i g a t i o n . ' " 
( q u o t i n g U n i t e d S t a t e s v . D a v i s , 636 F.2d 1028, 1040 ( 5 t h C i r . 
1 9 8 1 ) ) ) . 
O n l y t o t h e e x t e n t t h a t t h e p r o j e c t p a r t i c i p a n t s 
a r e 
u n a b l e 
t o 
o b t a i n 
w i t h o u t 
undue 
h a r d s h i p 
t h e s u b s t a n t i a l 
e q u i v a l e n t 
o f 
i n f o r m a t i o n 
l e a r n e d 
by 
W i l l i a m s 
f r o m 
t h i r d 
p a r t i e s 
d u r i n g h i s i n v e s t i g a t i o n a r e t h e y 
e n t i t l e d 
t o s e e 
i n f o r m a t i o n 
i n 
W i l l i a m s ' s 
f i l e s 
r e l a t i n g 
t o 
s u c h 
i n v e s t i g a t i o n . 
Ex p a r t e A l a b a m a Dep't o f Y o u t h S e r v s . , 
927 
So. 
2d 805, 80 
9 ( A l a . 
2005) . 
B e c a u s e i t i s a 
p r a c t i c a l 
i m p o s s i b i l i t y f o r 
t h e p r o j e c t p a r t i c i p a n t s t o s p e c u l a t e as t o 
a l l 
p o s s i b l e 
s o u r c e s 
o f i n f o r m a t i o n and t o make 
i n q u i r y o f 
s u c h 
s o u r c e s 
as t o c o n t a c t 
w i t h 
W i l l i a m s , t h e o r d e r o f t h e 
t r i a l 
c o u r t i s 
due t o be a f f i r m e d t o t h e e x t e n t 
t h a t 
W i l l i a m s 
i s r e q u i r e d t o p r o d u c e work p r o d u c t 
d e a l i n g w i t h 
i n f o r m a t i o n 
88 
1070484; 1070487; 1070514 
d e v e l o p e d 
f r o m 
t h i r d 
p a r t i e s 
w i t h 
r e s p e c t 
t o 
t h e 
a f o r e m e n t i o n e d 
i n v e s t i g a t i o n . 
As 
t o c o m m u n i c a t i o n s b e t w e e n 
W i l l i a m s 
and 
h i s 
c l i e n t s , 
t o 
t h e 
e x t e n t 
t h e r e 
has 
b e e n 
any 
d i s c l o s u r e 
by 
W i l l i a m s , 
t h e r e 
i s 
no 
e v i d e n c e 
o f 
W h e e l e r / P h i l l i p s ' s 
c o n s e n t 
t o 
any 
s u c h 
d i s c l o s u r e . 
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 
o r d e r 
r e q u i r e s 
d i s c l o s u r e 
o f 
o t h e r 
i n f o r m a t i o n t h a n t h a t 
a l l o w e d 
h e r e i n , 
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 i n g r a n t i n g t h e m o t i o n t o c o m p e l as t o 
t h a t i n f o r m a t i o n , and 
t h e 
t r i a l 
c o u r t ' s o r d e r 
i s r e v e r s e d 
as 
t o 
t h a t 
i n f o r m a t i o n . 
I X . 
C o n c l u s i o n 
I n c a s e no. 1070484 and c a s e no. 1070487, we 
r e v e r s e 
t h e 
summary j u d g m e n t 
e n t e r e d 
on 
F e b r u a r y 
22, 
2006, 
i n f a v o r 
o f 
B r i g h t ; we 
a f f i r m t h e summary j u d g m e n t e n t e r e d on November 
20, 
2007, 
i n f a v o r 
o f 
t h e 
C i t y 
as 
t o 
t h e 
t o r t 
c l a i m s 
a s s e r t e d 
a g a i n s t 
i t , and i n f a v o r o f t h e C o u n t y , t h e C o u n t y C o m m i s s i o n , 
J o s e p h , T h o r n t o n , t h e IDB, 
t h e A I F A , t h e n G o v e r n o r S i e g e l m a n , 
t h e n F i n a n c e 
D i r e c t o r M a b r y , CSX 
R e a l 
P r o p e r t y , 
I n c . , 
E v a n s , 
H e m p h i l l , 
and H y u n d a i ; i n a l l o t h e r r e s p e c t s , we 
r e v e r s e 
t h a t 
summary j u d g m e n t . 
I n c a s e no. 1070484, we 
a f f i r m i n p a r t 
and 
r e v e r s e i n p a r t t h e 
t r i a l c o u r t ' s o r d e r g r a n t i n g t h e m o t i o n t o 
c o m p e l t h e p r o d u c t i o n 
o f W i l l i a m s ' s 
l e g a l 
f i l e , 
and we remand 
t h e c a s e f o r f u r t h e 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 . 
89 
1070484; 1 0 7 0 4 8 7 ; 1070514 
I n c a s e no. 1 0 7 0 4 8 7 , we a f f i r m t h e o r d e r r e q u i r i n g 
S o u t h d a l e 
t o p a y t h e s p e c i a l - m a s t e r f e e . We 
a l s o remand t h e c a s e f o r 
f u r t h e 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 . 
I n c a s e no. 
1070514, we a f f i r m t h e summary j u d g m e n t e n t e r e d on November 
20, 2007, i n f a v o r o f S t r a n g e i n h i s i n d i v i d u a l c a p a c i t y . 
1 0 7 0 4 8 4 - - A P P L I C A T I O N GRANTED; OPINION OF JULY 17, 2009, 
WITHDRAWN; OPINION SUBSTITUTED; AFFIRMED IN PART; REVERSED IN 
PART; AND REMANDED. 
W o o d a l l , 
S t u a r t , S m i t h , B o l i n , and Shaw, J J . , c o n c u r . 
M u r d o c k , J . , c o n c u r s i n p a r t , 
c o n c u r s i n t h e r e s u l t i n 
p a r t , and d i s s e n t s i n p a r t . 
Cobb, C . J . , r e c u s e s h e r s e l f . 
1 0 7 0 4 8 7 - - A P P L I C A T I O N GRANTED; OPINION OF JULY 17, 2009, 
WITHDRAWN; OPINION SUBSTITUTED; AFFIRMED IN PART; REVERSED IN 
PART; AND REMANDED. 
W o o d a l l , 
S t u a r t , S m i t h , and Shaw, J J . , c o n c u r . 
B o l i n , J . , c o n c u r s i n p a r t and d i s s e n t s i n p a r t . 
M u r d o c k , J . , c o n c u r s i n p a r t , 
c o n c u r s i n t h e r e s u l t i n 
p a r t , and d i s s e n t s i n p a r t . 
Cobb, C . J . , r e c u s e s h e r s e l f . 
1 0 7 0 5 1 4 - - A P P L I C A T I O N GRANTED; OPINION OF JULY 17, 2009, 
WITHDRAWN; OPINION SUBSTITUTED; AFFIRMED. 
W o o d a l l , 
S t u a r t , S m i t h , B o l i n , and Shaw, J J . , c o n c u r . 
M u r d o c k , J . , c o n c u r s i n t h e r e s u l t . 
Cobb, C . J . , r e c u s e s h e r s e l f . 
90 
1070484; 1070487; 1070514 
BOLIN, J u s t i c e 
( c o n c u r r i n g 
i n p a r t 
and 
d i s s e n t i n g i n p a r t 
i n 
c a s e no. 
1 0 7 0 4 8 7 ) . 
I c o n c u r 
i n a l l a s p e c t s 
o f 
t h e 
m a j o r i t y 
o p i n i o n 
e x c e p t 
P a r t V I I 
c o n c e r n i n g 
t h e payment o f t h e 
s p e c i a l - m a s t e r 
f e e . 
A. 
Lee 
M i l l e r 
I I I s e r v e d 
as 
c h i e f o f t h e 
l e g a l 
d i v i s i o n 
o f 
t h e D e p a r t m e n t o f F i n a n c e f r o m J a n u a r y 
1987 
t o 
S e p t e m b e r 
2003. 
A f t e r r e s i g n i n g f r o m t h e D e p a r t m e n t o f F i n a n c e i n 2003, 
M i l l e r became " o f c o u n s e l " t o t h e l a w f i r m J e m i s o n , M e n d e l s o h n 
& 
James, 
P.C. 
("the 
J e m i s o n 
f i r m " ) , 
w h i c h 
r e p r e s e n t e d 
S o u t h d a l e , LLC, 
i n t h i s 
l i t i g a t i o n . 
S h o r t l y 
b e f o r e 
t h e 
t r i a l 
i n 
t h i s 
c a s e , 
t h e 
p r o j e c t 
p a r t i c i p a n t s 
( o t h e r 
t h a n 
Bobby 
N. 
B r i g h t , 
who 
had 
had 
a 
summary j u d g m e n t e n t e r e d 
i n h i s f a v o r on 
t h e b a s i s o f 
S t a t e -
a g e n t 
i m m u n i t y ) 
f i l e d 
a 
j o i n t 
m o t i o n 
t o 
d i s q u a l i f y 
t h e 
J e m i s o n 
f i r m f r o m 
r e p r e s e n t i n g 
S o u t h d a l e , 
a l l e g i n g t h a t 
an 
i m p e r m i s s i b l e 
c o n f l i c t o f i n t e r e s t e x i s t e d b e c a u s e i t a p p e a r e d 
t h a t M i l l e r had 
p r o v i d e d 
l e g a l a d v i c e 
r e g a r d i n g 
t h e 
p u r c h a s e 
o f 
J o y 
S h e l t o n ' s 
p r o p e r t y 
d u r i n g 
h i s 
e m p l o y m e n t 
w i t h 
t h e 
D e p a r t m e n t o f F i n a n c e . 
The 
p r o j e c t p a r t i c i p a n t s a l s o 
s o u g h t 
t o 
d i s q u a l i f y 
t h e 
l a w 
f i r m 
o f 
S p a i n 
& 
G i l l o n , 
LLC, 
f r o m 
r e p r e s e n t i n g 
W h e e l e r / P h i l l i p s b e c a u s e 
t h e 
a t t o r n e y s 
i n 
t h a t 
f i r m 
had 
a l l e g e d l y w o r k e d 
c l o s e l y w i t h 
M i l l e r 
and 
b e c a u s e 
M i l l e r 
had 
f u r n i s h e d d o c u m e n t s 
t o them w h i l e 
he 
was 
a t 
t h e 
J e m i s o n 
f i r m . 
The 
p r o j e c t p a r t i c i p a n t s a l s o a s k e d t h a t 
t h e 
91 
1070484; 1070487; 1070514 
p l a i n t i f f s ' 
c l a i m s a g a i n s t them be d i s m i s s e d as a s a n c t i o n 
f o r 
t h e v i o l a t i o n o f t h e 
A l a b a m a R u l e s o f P r o f e s s i o n a l C o n d u c t i n 
r e l a t i o n t o M i l l e r ' s p a r t i c i p a t i o n i n 
t h e l i t i g a t i o n . 
I n 
t h e 
a l t e r n a t i v e , t h e p r o j e c t p a r t i c i p a n t s a s k e d 
t h a t any a n d 
a l l 
r e c o r d s o r f i l e s o f t h e p l a i n t i f f s ' 
a t t o r n e y s be 
s e q u e s t e r e d 
and r e v i e w e d by a s p e c i a l m a s t e r b e f o r e t h e y c o u l d be r e v i e w e d 
by any new c o u n s e l h i r e d by t h e p l a i n t i f f s . 
F o l l o w i n g 
two h e a r i n g s , 
t h e 
t r i a l 
c o u r t 
g r a n t e d t h e 
m o t i o n t o d i s q u a l i f y b o t h S o u t h d a l e ' s a n d W h e e l e r / P h i l l i p s ' s 
c o u n s e l 
a n d 
a p p o i n t e d 
a 
s p e c i a l 
m a s t e r 
" t o o v e r s e e 
t h e 
t r a n s f e r 
o f 
f i l e s 
a n d 
o t h e r 
m a t e r i a l s 
f r o m 
d i s q u a l i f i e d 
c o u n s e l t o r e p l a c e m e n t 
c o u n s e l f o r t h e P l a i n t i f f s 
i n t h i s 
c a s e . " 
W h e e l e r / P h i l l i p s f i l e d 
a 
p e t i t i o n 
f o r a 
w r i t o f 
mandamus w i t h 
t h i s 
C o u r t , 
r e q u e s t i n g an o r d e r 
d i r e c t i n g t h e 
t r i a l c o u r t t o v a c a t e i t s o r d e r d i s q u a l i f y i n g S p a i n & G i l l o n . 
On 
May 
18, 
2007, 
t h i s 
C o u r t 
g r a n t e d W h e e l e r / P h i l l i p s ' s 
p e t i t i o n a n d i s s u e d t h e w r i t . 
Ex p a r t e W h e e l e r , 978 So. 2d 1 
( A l a . 
2 0 0 7 ) . 
S o u t h d a l e d i d 
n o t s e e k mandamus r e v i e w , a n d i t 
o b t a i n e d 
new 
c o u n s e l . 
The 
c a s e 
t h e n 
p r o c e e d e d . 
I t i s 
u n d i s p u t e d t h a t i n 
r e v i e w i n g t h e 
d o c u m e n t s , t h e s p e c i a l m a s t e r 
f o u n d 
t h a t no m a t e r i a l s o r i n f o r m a t i o n h a d b e e n a c q u i r e d b y 
t h e J e m i s o n 
f i r m b e c a u s e o f M i l l e r ' s 
e m p l o y m e n t . 
92 
1070484; 1070487; 1070514 
On 
November 
2, 
2007, 
t h e 
t r i a l 
c o u r t 
e n t e r e d 
an 
o r d e r 
r e q u i r i n g , 
among 
o t h e r 
t h i n g s , 
t h a t 
S o u t h d a l e 
and 
W h e e l e r / P h i l l i p s 
pay 
t h e 
s p e c i a l 
m a s t e r 
$ 2 8 , 1 9 8 . 7 4 . 
On 
November 13, 2007, W h e e l e r / P h i l l i p s 
f i l e d 
a m o t i o n t o 
a l t e r , 
amend, o r v a c a t e 
t h e November 
2, 
2007, 
o r d e r 
r e g a r d i n g 
t h e 
s p e c i a l - m a s t e r 
f e e on t h e g r o u n d t h a t t h e 
t r i a l 
c o u r t ' s 
o r d e r 
a p p o i n t i n g 
a s p e c i a l m a s t e r was 
f o r t h e " p u r p o s e o f 
o v e r s e e i n g 
' t h e 
o r d e r l y 
t r a n s f e r o f 
d i s c o v e r y 
and 
o t h e r 
m a t e r i a l s 
f r o m 
d i s q u a l i f i e d 
c o u n s e l , 
h e r e i n a f t e r 
" f o r m e r 
c o u n s e l , " 
t o 
r e p l a c e m e n t 
c o u n s e l 
f o r 
t h e 
P l a i n t i f f s 
i n 
t h i s 
c a s e . ' " 
W h e e l e r / P h i l l i p s a r g u e d t h a t b e c a u s e t h e o r d e r 
a p p o i n t i n g 
t h e 
s p e c i a l m a s t e r e x i s t e d o n l y t o f a c i l i t a t e 
t h e 
d i s q u a l i f i c a t i o n 
o r d e r , 
and 
b e c a u s e 
t h i s 
C o u r t 
g r a n t e d 
W h e e l e r / P h i l l i p s ' s 
p e t i t i o n 
and 
i s s u e d 
t h e 
w r i t 
v a c a t i n g 
t h e 
t r i a l 
c o u r t ' s 
d i s q u a l i f i c a t i o n o r d e r 
as t o i t s l a w 
f i r m , t h e 
s p e c i a l m a s t e r 
r e v i e w e d no d o c u m e n t s f r o m W h e e l e r / P h i l l i p s ' s 
c o u n s e l . 
On 
November 
20, 
2007, 
t h e 
t r i a l 
c o u r t 
amended 
i t s 
o r d e r 
t o 
r e q u i r e S o u t h d a l e t o pay 
a l l t h e 
s p e c i a l - m a s t e r 
f e e . 
I b e l i e v e t h a t t h e 
t r i a l 
c o u r t ' s 
o r d e r 
i s u n j u s t l y h a r s h 
and 
t h a t 
i n 
e n t e r i n g 
i t 
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 , 
g i v e n 
t h a t 
t h e 
p r o j e c t 
p a r t i c i p a n t s ' 
m o t i o n 
t o 
d i s q u a l i f y 
and 
t o a p p o i n t 
a s p e c i a l m a s t e r was 
f i l e d 
on 
t h e 
eve 
o f 
t r i a l when t h e c a s e had b e e n p e n d i n g f o r two 
y e a r s 
and 
93 
1070484; 1070487; 1070514 
s u b s t a n t i a l d i s c o v e r y h a d a l r e a d y o c c u r r e d . A l s o , t h e J e m i s o n 
f i r m a r g u e d a t t h e h e a r i n g on t h e m o t i o n t o d i s q u a l i f y t h a t no 
d o c u m e n t s 
h a d 
b e e n 
a c q u i r e d 
b e c a u s e 
o f 
M i l l e r ' s 
p r e v i o u s 
e m p l o y m e n t w i t h t h e D e p a r t m e n t 
o f F i n a n c e , and, 
i n d e e d , t h e 
s p e c i a l 
m a s t e r 
f o u n d 
t h a t 
no 
s u c h 
d o c u m e n t s 
were 
f o u n d . 
A d d i t i o n a l l y , 
c o u n s e l 
f o r 
a t 
l e a s t 
one 
o f 
t h e 
p r o j e c t 
p a r t i c i p a n t s 
knew 
o f 
M i l l e r ' s 
p r e v i o u s employment 
a 
y e a r 
b e f o r e 
t h e 
j o i n t 
m o t i o n 
was 
f i l e d . 
I 
r e c o g n i z e t h a t 
t h e 
d e f e r e n c e 
t o w h i c h 
a 
t r i a l 
j u d g e ' s 
d e c i s i o n 
i s e n t i t l e d i n 
a w a r d i n g 
s p e c i a l - m a s t e r 
f e e s 
i m p o s e s 
a 
h e a v y 
b u r d e n 
t o 
o v e r c o m e . 
However, I b e l i e v e t h e 
t r i a l 
c o u r t h e r e 
e x c e e d e d 
i t s 
d i s c r e t i o n 
i n r e q u i r i n g 
S o u t h d a l e 
t o p a y 
t h e 
s p e c i a l -
m a s t e r f e e i n i t s e n t i r e t y . 
94 
1070484; 1070487; 1070514 
MURDOCK, J u s t i c e ( c o n c u r r i n g i n p a r t , c o n c u r r i n g i n 
t h e r e s u l t 
i n 
p a r t , and d i s s e n t i n g i n p a r t i n c a s e no. 1070484 and c a s e 
no. 
1 0 7 0 4 8 7 , 
and 
c o n c u r r i n g 
i n t h e 
r e s u l t 
i n c a s e 
no. 
1 0 7 0 5 1 4 ) . 
I n 
s p e c i a l w r i t i n g s i n P a v i l i o n 
D e v e l o p m e n t , 
L.L.C. v.  
J B J P a r t n e r s h i p , 979 So. 2d 24, 37-45 ( S e e , J . , 
and 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 ) , 
J u s t i c e See and I e x p r e s s e d o u r 
d i s a g r e e m e n t w i t h t h e p o s i t i o n t a k e n by J u s t i c e L y o n s i n h i s 
d i s s e n t i n g 
o p i n i o n i n t h a t c a s e , 979 So. 2d a t 45-47, 
t h a t 
t h i s C o u r t s h o u l d h o l d an a r g u m e n t w a i v e d when an a p p e l l a n t ' s 
p r i n c i p a l 
b r i e f 
f a i l s t o a d d r e s s an a r g u m e n t u r g e d upon t h e 
t r i a l 
c o u r t b y t h e a p p e l l e e b u t n o t r e l i e d upon b y t h e 
t r i a l 
c o u r t i n r u l i n g i n f a v o r o f t h e a p p e l l e e . 
P a v i l i o n was a c a s e 
i n 
w h i c h 
t h e 
b a s i s 
o f 
t h e 
t r i a l 
c o u r t ' s 
j u d g m e n t 
was 
d i s c e r n i b l e 
f r o m t h e r e c o r d . 
I n t h a t 
c o n t e x t , 
I r e a s o n e d 
t h a t , a l t h o u g h an a p p e l l a t e c o u r t may a f f i r m a t r i a l 
c o u r t ' s 
j u d g m e n t 
on 
"any 
v a l i d 
l e g a l 
g r o u n d , " 
we 
" s h o u l d [ n o t ] 
t r a n s f o r m 
a r u l e 
d e s i g n e d t o a l l o w 
an a p p e l l a t e 
c o u r t t o 
a f f i r m a l o w e r c o u r t ' s j u d g m e n t on any g r o u n d d e t e r m i n e d t o be  
v a l i d 
i n t o a r u l e t h a t r e q u i r e s an a p p e l l a t e c o u r t t o a f f i r m 
a l o w e r c o u r t ' s j u d g m e n t on any g r o u n d , w i t h o u t r e g a r d f o r t h e  
v a l i d i t y o f t h e g r o u n d , 
m e r e l y so l o n g as t h a t 
g r o u n d 
was 
r a i s e d i n t h e t r i a l 
c o u r t by t h e p r e v a i l i n g p a r t y and was n o t 
a d d r e s s e d by t h e a p p e l l a n t on a p p e a l . " 
979 So. 2d a t 42 (some 
e m p h a s i s 
o m i t t e d ) . 
I a l s o s u g g e s t e d t h a t t h e same c o n c e r n s 
95 
1070484; 1070487; 1070514 
s h o u l d a p p l y e v e n when t h e g r o u n d f o r 
t h e t r i a l c o u r t ' s r u l i n g 
i s 
n o t 
d i s c e r n i b l e 
f r o m 
t h e 
t r i a l 
c o u r t ' s 
j u d g m e n t 
o r 
o t h e r w i s e 
f r o m 
t h e r e c o r d . 
I d . 
( d i s c u s s i n g , 
among 
o t h e r 
t h i n g s , t h e n e e d t o l i m i t 
t h i s C o u r t ' s h o l d i n g i n F o g a r t y v .  
S o u t h w o r t h , 
953 So. 2d 1225 ( A l a . 2 0 0 6 ) ) . 
I n t h e p r e s e n t c a s e , e v e n a c c e p t i n g t h e v i e w t a k e n i n 
t h e 
m a i n o p i n i o n t h a t i t i s n o t d i s c e r n i b l e 
f r o m t h e r e c o r d and 
f r o m t h e t r i a l 
c o u r t ' s j u d g m e n t t h a t t h e t r i a l 
c o u r t d i d 
n o t 
b a s e i t s 
summary j u d g m e n t i n f a v o r o f S t r a n g e on a 
f i n d i n g 
t h a t t h e F e b r u a r y 22, 2 0 0 5 , 
s u b s t i t u t i o n 
o f S t r a n g e f o r a 
p r e v i o u s l y d e s c r i b e d f i c t i t i o u s l y named p a r t y d i d n o t r e l a t e 
b a c k u n d e r R u l e s 9 and 15, A l a . 
R. C i v . 
P., t o t h e f i l i n g o f 
t h e 
o r i g i n a l 
c o m p l a i n t , I w r i t e t o e x p r e s s my 
d i s a g r e e m e n t 
w i t h t h e u s e o f a w a i v e r r u l e e m p l o y e d by t h e m a i n 
o p i n i o n . 
My 
d i s a g r e e m e n t 
b e g i n s 
w i t h 
t h e 
r e c o g n i t i o n 
o f t h e 
p r i n c i p l e t h a t "an a p p e l l a t e c o u r t w i l l n o t p r e s u m e e r r o r and 
w i l l 
a f f i r m t h e j u d g m e n t a p p e a l e d 
f r o m i f s u p p o r t e d on any 
v a l i d l e g a l g r o u n d . " 
T u c k e r v. N i c h o l s , 431 So. 2d 1263, 1265 
( A l a . 
1 9 8 3 ) . 
A c o r o l l a r y t o t h i s 
r u l e i s t h a t we do p r e s u m e 
t h a t t h e t r i a l c o u r t made t h o s e f i n d i n g s n e c e s s a r y t o s u p p o r t 
i t s j u d g m e n t . 
See, e . g . , Ex p a r t e B r y o w s k y , 676 So. 2d 1322, 
1324 
( A l a . 1 9 9 6 ) . 
96 
1070484; 1070487; 1070514 
These two r u l e s , i n t u r n , p r o v i d e 
c o n t e x t 
f o r a p p l i c a t i o n 
o f 
t h e 
" l o n g - s t a n d i n g , 
w e l l - e s t a b l i s h e d 
r u l e 
t h a t 
t h e 
a p p e l l a n t 
has 
an 
a f f i r m a t i v e d u t y o f s h o w i n g 
e r r o r upon t h e 
r e c o r d . " 
T u c k e r , 431 So. 2d a t 1264. 
Where i t i s d i s c e r n i b l e 
f r o m t h e j u d g m e n t 
and 
t h e r e m a i n d e r o f t h e 
r e c o r d 
t h a t 
t h e 
t r i a l 
c o u r t may 
w e l l h a v e b a s e d i t s j u d g m e n t 
on a 
p a r t i c u l a r 
g r o u n d 
and 
t h a t 
g r o u n d 
i s n o t 
c o n t e s t e d 
i n t h e 
a p p e l l a n t ' s 
b r i e f , 
t h e n I c a n a c c e p t t h e n o t i o n 
t h a t 
t h e 
a p p e l l a n t 
has 
f a i l e d 
t o meet 
i t s b u r d e n 
o f s h o w i n g 
t h a t 
t h e 
t r i a l 
c o u r t 
e r r e d . 
F o r 
t h i s 
f a i l u r e 
t o 
o c c u r 
c o n s i s t e n t 
w i t h 
t h e 
p r i n c i p l e s q u o t e d a b o v e , h o w e v e r , 
t h e g r o u n d must be one 
t h a t , 
f o r 
a l l 
t h a t a p p e a r s f r o m t h e r e c o r d , t h e t r i a l 
c o u r t may 
h a v e 
a c t u a l l y and p r o p e r l y 
r e l i e d u p o n . 
T h i s means n o t o n l y 
t h a t 
t h e g r o u n d a t i s s u e was p r e s e n t e d t o t h e 
t r i a l 
c o u r t and 
t h a t 
i t 
i s n o t 
d i s c e r n i b l e f r o m t h e 
r e c o r d 
t h a t 
t h e 
t r i a l 
c o u r t 
b a s e d 
i t s j u d g m e n t 
on some o t h e r 
g r o u n d , 
b u t 
a l s o 
t h a t 
t h e 
g r o u n d 
i s v a l i d 
l e g a l l y 
and, 
t o 
t h e 
e x t e n t 
t h e 
g r o u n d 
i s 
d e p e n d e n t on f a c t u a l f i n d i n g s , t h e f a c t u a l r e c o r d i s s u c h t h a t 
t h e 
t r i a l 
c o u r t 
c o u l d 
h a v e made t h o s e 
f i n d i n g s . 
I f t h e s e 
a t t r i b u t e s a r e n o t p r e s e n t , 
t h e n t h e a b o v e - q u o t e d p r i n c i p l e s 
do n o t a l l o w us t o i m p u t e s u c h a g r o u n d t o t h e 
t r i a l 
c o u r t , 
and, 
t h e r e f o r e , 
a 
f a i l u r e 
by 
an 
a p p e l l a n t 
t o 
a d d r e s s 
t h e 
97 
1070484; 1070487; 1070514 
g r o u n d d o e s n o t 
l o g i c a l l y c o n s t i t u t e a f a i l u r e t o d e m o n s t r a t e 
an e r r o r by 
t h e 
t r i a l 
c o u r t .
1
2 
N o t w i t h s t a n d i n g 
t h e 
a b o v e - d e s c r i b e d 
o b j e c t i o n 
t o 
t h e 
w a i v e r 
r u l e e m p l o y e d by 
t h e m a i n o p i n i o n 
as 
t o 
S t r a n g e , 
f o r 
t h e r e a s o n s e x p l a i n e d b e l o w I c o n c u r i n t h e 
r e s u l t r e a c h e d 
by 
t h e m a i n o p i n i o n as t o t h e a f f i r m a n c e 
o f t h e summary j u d g m e n t 
i n 
h i s f a v o r . 
F o r t h e same r e a s o n s , 
I d i s s e n t as t o t h e m a i n 
o p i n i o n ' s 
r e v e r s a l i n some r e s p e c t s 
o f t h e summary j u d g m e n t s 
e n t e r e d 
i n f a v o r o f c e r t a i n o t h e r 
d e f e n d a n t s . 
I n McLemore v. H y u n d a i M o t o r M a n u f a c t u r i n g 
A l a b a m a , 
LLC, 
7 So. 
3d 318, 
339 
( A l a . 2008) ( M u r d o c k , J . , c o n c u r r i n g i n p a r t 
and 
d i s s e n t i n g i n p a r t ) , 
I r e a c h e d 
t h e 
c o n c l u s i o n 
t h a t 
t h e 
2002 
amendment 
t o 
t h e 
o p t i o n 
a g r e e m e n t 
b e t w e e n 
t h e 
g o v e r n m e n t a l e n t i t i e s and 
t h e R u s s e l l s s e t t h e p u r c h a s e p r i c e 
f o r 
t h e 
R u s s e l l s ' l a n d a t a f i x e d amount o f $4,500 p e r 
a c r e . 
I n 
t h e 
p r e s e n t 
c a s e , 
t h e 
2002 
amendments 
t o 
t h e 
o p t i o n 
a g r e e m e n t s 
b e t w e e n 
t h e 
g o v e r n m e n t a l 
e n t i t i e s 
and 
t h e 
1 2 I n a d d i t i o n , as 
I s u g g e s t e d i n P a v i l i o n , 
a w a i v e r 
r u l e 
o f t h e n a t u r e e m p l o y e d by t h e m a i n o p i n i o n t o d a y g i v e s a p a r t y 
some i n c e n t i v e t o " s p r e a d " upon t h e r e c o r d o f t h e 
t r i a l 
c o u r t 
a 
m u l t i t u d e 
o f 
v a r i o u s 
a r g u m e n t s , 
e v e n 
t h o s e 
known 
t o 
be 
w i t h o u t 
m e r i t , 
i n t h e hope 
t h a t , 
i f t h e 
p a r t y 
p r e v a i l s 
a t 
t r i a l , 
an 
a p p e l l a n t 
w i l l 
f a i l 
t o a d d r e s s a l l o f them i n i t s 
i n i t i a l 
a p p e l l a t e 
b r i e f . 
C o n c o m i t a n t l y , 
i t 
f o r c e s 
a l l 
a p p e l l a n t s 
t o 
s p e n d 
t i m e 
and 
money 
a d d r e s s i n g 
i n 
t h e i r 
p r i n c i p a l a p p e l l a t e b r i e f a r g u m e n t s t h a t c o u l d n o t have 
s e r v e d 
as t h e b a s i s f o r t h e 
r u l i n g a g a i n s t them i n t h e c o u r t b e l o w . 
98 
1070484; 1070487; 
1070514 
l a n d o w n e r s c o n t a i n e d 
t h e same a m e n d a t o r y l a n g u a g e as d i d t h e 
2002 
amendment 
t o 
t h e 
a g r e e m e n t 
b e t w e e n 
t h e g o v e r n m e n t a l 
e n t i t i e s 
and 
t h e 
R u s s e l l s 
i n McLemore. 
A c c o r d i n g l y , 
I 
r e s p e c t f u l l y d i s s e n t t o t h e e x t e n t t h e m a i n o p i n i o n 
r e v e r s e s 
t h e 
summary j u d g m e n t 
e n t e r e d 
by t h e 
t r i a l 
c o u r t 
as t o t h e 
b r e a c h - o f - c o n t r a c t 
c l a i m s and, by e x t e n s i o n , 
any t o r t 
c l a i m s 
d e p e n d e n t 
f o r 
t h e i r 
v i a b i l i t y 
on 
t h e 
n o t i o n 
t h a t 
t h e 
l a n d o w n e r s were 
c o n t r a c t u a l l y e n t i t l e d 
t o r e c e i v e more 
t h a n 
$4,500 p e r a c r e f o r t h e i r 
l a n d . 
I c o n c u r i n P a r t s V I I and V I I I o f t h e m a i n 
o p i n i o n . 
99