Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-alnd-5_19-cv-00247/USCOURTS-alnd-5_19-cv-00247-0/pdf.json

Nature of Suit Code: 140
Nature of Suit: Negotiable Instruments
Cause of Action: 28:1332 Diversity-Negotiable Instrument

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UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ALABAMA

NORTHEASTERN DIVISION

WELLS FARGO BANK,

NATIONAL ASSOCIATION,

Plaintiff,

vs.

CHOICE MEDICINE: HWY 53 

MEDICAL CENTER AND ASHER 

A. TURNEY, 

Defendants.

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Civil Action Number

5:19-cv-00247-AKK

MEMORANDUM OPINION

This breach of contract action arises from a loan Wells Fargo Bank, National 

Association extended to Choice Medicine: Hwy 53 Medical Center and a guaranty 

executed by Asher A. Turney, Choice Medicine’s CEO, to help secure the loan. Doc. 

1. After Choice Medicine defaulted on its obligations, Wells Fargo demanded 

payment from Choice Medicine and Turney, and then filed this lawsuit when the 

defendants did not pay the amount due under the loan. Before the court is Wells 

Fargo’s motion for summary judgment on its claims against Turney. Doc. 25. 

Because Turney has not shown a question of fact regarding the elements of Wells 

Fargo’s breach of contract claim, Wells Fargo is entitled to a judgment in its favor 

of $107,835.50, plus post-judgment interest, costs, and reasonable attorneys’ fees.

FILED

 2020 May-20 AM 10:43

U.S. DISTRICT COURT

N.D. OF ALABAMA

Case 5:19-cv-00247-AKK Document 30 Filed 05/20/20 Page 1 of 11
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I.

Under Rule 56(a) of the Federal Rules of Civil Procedure, summary judgment 

is proper “if the movant shows that there is no genuine dispute as to any material 

fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56.

“Rule 56[] mandates the entry of summary judgment, after adequate time for 

discovery and upon motion, against a party who fails to make a showing sufficient 

to establish the existence of an element essential to that party’s case, and on which 

that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 

317, 322 (1986) (alteration in original). The moving party bears the initial burden 

of proving the absence of a genuine issue of material fact. Id. at 323. The burden 

then shifts to the nonmoving party, who is required to “go beyond the pleadings” to 

establish that there is a “genuine issue for trial.” Id. at 324 (citation and internal 

quotation marks omitted). A dispute about a material fact is genuine “if the evidence 

is such that a reasonable jury could return a verdict for the nonmoving party.” 

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).

On summary judgment motions, the court must construe the evidence and all 

reasonable inferences arising from it in the light most favorable to the non-moving 

party. Adickes v. S. H. Kress & Co., 398 U.S. 144, 157 (1970); see also Anderson, 

477 U.S. at 255. Any factual disputes will be resolved in the non-moving party’s 

favor when sufficient competent evidence supports the non-moving party’s version 

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of the disputed facts. See Pace v. Capobianco, 283 F.3d 1275, 1276, 1278 (11th Cir. 

2002) (a court is not required to resolve disputes in the non-moving party’s favor 

when that party’s version of events is supported by insufficient evidence). However, 

“mere conclusions and unsupported factual allegations are legally insufficient to 

defeat a summary judgment motion.” Ellis v. England, 432 F.3d 1321, 1326 (11th 

Cir. 2005) (per curiam) (citing Bald Mountain Park, Ltd. v. Oliver, 863 F.2d 1560, 

1563 (11th Cir. 1989)). Moreover, “[a] mere ‘scintilla’ of evidence supporting the 

opposing party’s position will not suffice; there must be enough of a showing that 

the jury could reasonably find for that party.” Walker v. Darby, 911 F.2d 1573, 1577 

(11th Cir. 1990) (citing Anderson, 477 U.S. at 252)).

II.

Wells Fargo extended a loan with a revolving credit line to Choice Medicine, 

as evidenced by a Business Lending Confirmation Letter dated February 15, 2016

(the “Loan”). Doc. 26-1 at 3, 9-13. As an inducement for Wells Fargo to make the 

Loan, Turney signed a Commercial Guaranty dated April 9, 2016, which guaranteed 

payment of the Loan and all obligations due under the Loan. Id. at 4, 47. Pursuant 

to the express terms of the Guaranty, Turney agreed to be bound by the Guaranty 

and the Wells Fargo Business Lending Disclosure, which provides in part that “[i]n 

addition to being liable for the Guaranteed Indebtedness, Guarantor agrees to pay 

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upon demand all of [Wells Fargo’s] costs and expenses incurred in connection with 

the enforcement of [Wells Fargo’s] rights under the Guaranty . . . .” Id. at 33, 47. 

Choice Medicine defaulted on its obligations to make payments as required 

under the Loan. Doc. 26-1 at 5; see also doc. 21. Wells Fargo sent a written notice 

of default and a demand for payment to Choice Medicine and Turney on January 8, 

2019. Doc. 26-1 at 5, 49-50. Wells Fargo subsequently filed this action, asserting 

breach of contract and unjust enrichment claims against Choice Medicine and 

Turney, and seeking damages for the principal due under the Loan, accrued interest, 

and the costs of collection, including Wells Fargo’s attorneys’ fees and expenses. 

Docs. 1; 26-1 at 5.1

 

III.

Wells Fargo asks the court to enter summary judgment on its claims against 

Turney and to award it damages for the full amount due under the Loan, plus preand post-judgment interest, attorney’s fees and costs. Docs. 25; 26.

2

 To prevail on 

its breach of contract claim, Wells Fargo must prove (1) the existence of a valid 

contract binding the parties, (2) Wells Fargo’s own performance under the contract, 

1 Choice Medicine failed to respond to Wells Fargo’s complaint, and Wells Fargo obtained a 

default judgment against Choice Medicine for $98,222.23, plus post-judgment interest. Doc. 21.

2 Because the court finds that Wells Fargo is entitled to a judgment in its favor on its breach of 

contract claim, and Wells Fargo cannot obtain a double recovery, see, e.g., Ex parte Barnett, 978 

So. 2d 729, 732 (Ala.2007) (citations omitted), the court does not address the unjust enrichment 

claim.

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(3) Turney’s nonperformance, and (4) damages. See, e.g., Shaffer v. Regions Fin. 

Corp., 29 So. 3d 872, 880 (Ala. 2009) (quotation omitted).

3

 The elements of a valid 

contract are “an offer and an acceptance, consideration, and mutual assent to the 

terms essential to the formation of a contract.” Id. (quotation omitted). Mutual 

assent is generally shown by a signature on a written contract, Bowen v. Security 

Pest Control, Inc., 879 So. 2d 1139, 1142 (Ala. 2003) (citation omitted), and, under 

Alabama law, a person who signs a contract is on notice of and bound by the terms 

of the contract, Ex parte Leasecomm Corp., 870 So. 2d 1156, 1160 (Ala. 2003) 

(citation omitted). Finally, under Alabama’s Statute of Frauds, “[e]very special 

promise to answer for the debt [or] default [] of another” is void unless it is in writing 

and signed by the guarantor. Ala. Code. § 8-9-2(3). 

A.

To prove the existence of a valid contract between the parties, Wells Fargo 

submits a copy of the Guaranty signed by Turney with an affidavit from Eddy 

Mullinax, a Vice-President in Wells Fargo’s Credit Management Group, attesting to 

3 Because the court has diversity jurisdiction over this action, the court must apply Alabama 

substantive law and choice-of-law rules. E.g., Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 

496 (1941). In a breach of contract action, Alabama courts apply the law of the state where the 

contract was made, unless the parties choose a different state’s laws to govern their agreement. 

E.g., Colonial Life & Acc. Ins. Co. v. Hartford Fire Ins. Co., 358 F.3d 1306, 1308 (11th Cir. 2004) 

(citing Cherry, Bekaert & Holland v. Brown, 582 So. 2d 502, 506 (Ala. 1991)). The Guaranty was 

formed in Alabama, the Loan provides that it is governed by Alabama law, and the parties agree 

that Alabama law applies to Wells Fargo’s claims. See doc. 26 at 6-7; 26-1 at 10; 28 at 5. Thus, 

the court applies Alabama law.

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the authenticity of the Guaranty. Doc. 26-1 at 2-3, 47. Turney counters that this 

evidence does not prove the existence of a binding contract because Mullinax did 

not properly authenticate the Guaranty and, therefore, Wells Fargo failed to prove 

that Turney signed the Guaranty as required by Alabama’s Statute of Frauds. See 

doc. 28 at 5. To that end, Turney attests that he does not recall meeting Mullinax

and that he did not sign the Guaranty in Mullinax’s presence. Doc. 28 at 11. But, 

critically, Turney does not deny signing the Guaranty. See id. Moreover, under Rule 

803(6) of the Federal Rules of Evidence, business records are admissible,

4 and Rule 

902(11) provides that documents meeting the requirements of Rule 803(6)(A)-(C)

are self-authenticating and “require no extrinsic evidence of authenticity in order to 

be admitted . . . .” Fed. R. Evid. 803(6), 902(11). 

Here, Mullinax attests that he has custody and control over the loan documents 

at issue, including the Guaranty, and that the documents are kept in the ordinary 

course of business:

These records were made at or near the time of the event recorded by a 

person with knowledge of the event and charged with responsibility of 

recording such events. These records are kept in the ordinary course of 

Wells Fargo’s regularly conducted business activity, which is Wells 

Fargo’s customary practice.

4 A business record is admissible if “(A) the record was made at or near the time by . . . someone 

with knowledge; (B) the record was kept in the course of a regularly conducted activity of a 

business . . .; (C) making the record was a regular practice of that activity; (D) all these conditions 

are shown by the testimony of the custodian or another qualified witness . . . ; and (E) the opponent 

does not show that the source of information or the method or circumstances of preparation 

indicate a lack of trustworthiness.” Fed. R. Evid. 803(6).

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Doc. 26-1 at 2-3. This testimony establishes that the Guaranty meets the 

requirements of Rule 803(6)(A)-(C) because the rule requires only the testimony of 

a witness “who is knowledgeable about the procedures used to create the alleged 

business records,” and the “witness does not need firsthand knowledge of the 

contents of the records, of their authors, or even of their preparation.” In re Int’l 

Mgmt. Assocs., LLC, 781 F.3d 1262, 1268 (11th Cir. 2015) (citations omitted). In 

that regard, Turney’s testimony that he did not sign the Guaranty in Mullinax’s 

presence does not call into question the trustworthiness of Mullinax’s testimony or 

the circumstances surrounding the preparation of the Guaranty. Thus, the signed 

Guaranty is an admissible, self-authenticating business record that the court may 

consider. As a result, Turney’s insistence that he did not sign the Guaranty in 

Mullinax’s presence does not create a question of fact regarding whether he signed 

the Guaranty and whether the Guaranty is a binding contract between the parties. 

B.

Next, Wells Fargo presents evidence that it fully performed its obligations 

under the Loan and Guaranty by disbursing the principal amount of the Loan, that 

Turney breached his obligation under the Guaranty by failing to pay the amount due

under the Loan, and that it suffered damages as a result of Turney’s breach. Doc. 

26-1 at 3, 5-6. Turney does not directly dispute this evidence, but contends that his 

obligations under the Guaranty have not yet matured because Wells Fargo has not 

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tried to collect the collateral Choice Medicine pledged to secure the Loan. Doc. 28 

at 6-7; see also doc. 26-1 at 10. This contention is unavailing because the Business 

Lending Disclosure expressly provides that a guarantor “waive[s] any right to 

require [Wells Fargo] to . . . proceed against any [c]ollateral or any person, including 

any [b]orrower [] before proceeding against any . . . guarantor . . . .” Doc. 26-1 at 

36, 47. Turney cannot avoid the plain terms of the Guaranty by contending that 

Wells Fargo should first attempt to collect the collateral pledged by Choice Medicine 

before it can enforce the Guaranty. See Gov’t Street Lumber Co., Inc. v. AmSouth 

Bank, N.A., 553 So. 2d 68, 75 (Ala. 1989) (“[A]n absolute guaranty will be enforced 

according to its terms.”) (citation omitted). Thus, Turney has not shown a question 

of material fact regarding the elements of Wells Fargo’s breach of contract claim. 

As a result, based on the record before the court, Wells Fargo is entitled to summary 

judgment on the claim.

C.

Finally, Wells Fargo asks the court to award it damages for the amount 

outstanding under the loan, plus pre and post-judgment interest, attorney’s fees, and 

costs. Docs. 1; 26. The general rule for contract damages in Alabama is that “‘the 

damages awarded in an action for breach of contract should be an amount sufficient 

to return the nonbreaching party to the position he would have occupied had the 

breach not occurred.’” HealthSouth Rehab. Corp. v. Falcon Mgmt. Co., 799 So. 2d 

Case 5:19-cv-00247-AKK Document 30 Filed 05/20/20 Page 8 of 11
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177, 183 (Ala. 2001) (quotation omitted). Moreover, “‘[i]n Alabama, attorneys’ fees 

are recoverable . . . when provided for in a contract . . . .’” James v. James, 768 So. 

2d 356, 360 (Ala. 2000) (quoting Eagerton v. Williams, 433 So. 2d 436, 450 (Ala. 

1983)). 

Turning to the specifics here, Wells Fargo seeks the following damages:

(1) the principal amount owed of $74,000.00;

(2) prejudgment interest in the amount of $13,573.06 that accrued through 

February 7, 2020;

(3) additional prejudgment interest in the amount of $1,058.84;

5

(4) post-judgment interest that accrues at a contractual daily rate of $10.28;

(5) attorneys’ fees and expenses incurred through February 7, 2020 to 

enforce the Guaranty in the amount of $19,203.60; and

(6) attorneys’ fees and expenses incurred beginning February 8, 2020 in 

connection with enforcing the Guaranty, including any post-judgment 

costs of collection. 

See docs. 26 at 5; 26-1 at 6; 26-2. Wells Fargo substantiates these damages through 

Mullinax’s affidavit, an affidavit from its attorney, and the Loan Documents. See 

docs. 26-1; 26-2. The Loan Documents provide in part that Turney “absolutely and 

unconditionally guarantees and promises to pay to [Wells Fargo] . . . [the]

Guaranteed Indebtedness,” which includes all of Choice Medicine’s indebtedness 

5 This amount includes calculated by multiplying the daily interest rate of $10.28 by 103 days for 

the period from February 8 through May 20, 2020.

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under the Loan. Doc. 26-1 at 30, 47. Mullinax attests that as of February 7, 2020, 

the total amount owed under the Loan was $87,573.06, including $74,000 in 

principal, and interest in the amount of $13,573.06, which continues to accrue at a 

daily rate of $10.28. Doc. 26-2 at 6. Turney does not dispute this evidence, 

challenge the reasonableness of the interest rate, or directly challenge the 

authenticity of the Loan Documents. See doc. 28. Thus, the record before the court 

establishes that Wells Fargo is entitled to damages in the amount of $88,631.90 for 

the unpaid principal due under the Loan and prejudgment interest.

With respect to Wells Fargo’s request for attorney’s fees, the Business 

Lending Disclosure, which is incorporated into the Guaranty, provides that Turney

“agrees to pay upon demand all of [Wells Fargo’s] costs and expenses incurred in 

connection with the enforcement of [Wells Fargo’s] rights under the Guaranty, and 

the prosecution or defense of any action . . . relating to the Guaranty. Such costs and 

expenses include . . . [Wells Fargo’s] attorney’s fees . . . and legal expenses relating 

to any [] suit . . . relating in any way to the Guaranty, including . . . any anticipated 

post-judgment collection efforts . . . .” Doc. 26-1 at 33. Wells Fargo seeks 

$19,203.60 in fees and costs incurred through February 7, 2020.6

 Docs. 26-1 at 6; 

26-2 at 5. To support its request for attorney’s fees, Wells Fargo submits

declarations stating that the fees and expenses claimed “were actually incurred to 

6 This amount consists of $17,353.45 in attorney’s fees and $1,850.15 in costs. Doc. 26-2 at 5. 

Case 5:19-cv-00247-AKK Document 30 Filed 05/20/20 Page 10 of 11
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enforce or collect the [i]ndebtedness owed by [Choice Medicine] and Turney under 

the Loan Documents . . . .” Docs. 26-1 at 6; 26-2 at 3. Turney has not challenged 

this evidence or the reasonableness of the attorney’s fees claimed. See doc. 28. And, 

having reviewed the requested fees and costs, doc. 26-2, the court finds that they are 

reasonable and necessary for the collection of the amount owed to Wells Fargo under 

the Guaranty. Thus, the record before the court establishes that Wells Fargo is 

entitled to attorneys’ fees and costs in the amount of $19,203.60, plus reasonable 

fees and expenses incurred beginning February 8, 2020. 

IV.

Wells Fargo’s motion for summary judgment, doc. 25, is due to be granted, 

and Wells Fargo is entitled to a judgment in its favor against Turney in the amount 

of $107,835.50, plus post-judgment interest accruing at the contractual daily rate of 

$10.28, and reasonable attorneys’ fees and expenses incurred beginning February 8, 

2020, including post-judgment costs of collection. A separate judgment will be 

issued.

DONE the 20th day of May, 2020.

 

_________________________________

ABDUL K. KALLON

UNITED STATES DISTRICT JUDGE

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