Title: Ryals v. Lathan Company, Inc.
Citation: N/A
Docket Number: 1091673
State: Alabama
Issuer: Alabama Supreme Court
Date: June 17, 2011

REL:06/17/2011 
Notice: T h i s 
o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e 
p u b l i c a t i o n i n 
t h e 
advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e 
Reporter of 
Decisions, 
Alabama A p p e l l a t e C o u r t s , 300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 ((334) 229¬
0 6 4 9 ) , o f 
any 
t y p o g r a p h i c a l o r o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s may 
be 
made b e f o r e 
t h e o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2010-2011 
1091673 
W i l l a r d E. Ryals 
v. 
The Lathan Company, 
Inc. 
Appeal from Mobile C i r c u i t 
Court 
(CV-04-2868) 
BOLIN, 
J u s t i c e . 
W i l l a r d E. R y a l 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 
e n f o r c i n g a c r e d i t o r ' s j u d g m e n t a g a i n s t h i m 
i n f a v o r o f 
The 
L a t h a n Company, I n c . ( " L a t h a n " ) . 
We d i s m i s s t h e a p p e a l . 
1091673 
F a c t s and 
P r o c e d u r a l 
H i s t o r y 
The 
t r i a l 
c o u r t s u m m a r i z e d t h e 
f a c t s i n i t s o r d e r : 
" 1 . 
On 
A u g u s t 
5, 
2004, 
t h e 
L a t h a n 
Company 
( h e r e i n ' L a t h a n ' ) b r o u g h t s u i t a g a i n s t C r a i g W a l k e r , 
i n d i v i d u a l l y , 
and 
as 
a g e n t 
f o r R y a l s 
C o n s t r u c t i o n 
Co., 
f o r b r e a c h 
o f a c o n s t r u c t i o n s u b - c o n t r a c t 
and 
f o r 
f r a u d a n d / o r m i s r e p r e s e n t a t i o n . 
I t was 
a l l e g e d 
t h a t W a l k e r and R y a l s C o n s t r u c t i o n c o n t r a c t e d t o 
do 
w o r k 
f o r 
L a t h a n 
on 
a 
c o n d o m i n i u m 
p r o j e c t 
i n 
T u s c a l o o s a 
and 
t o 
p r o v i d e 
w o r k e r ' s 
c o m p e n s a t i o n 
i n s u r a n c e 
f o r t h e p r o j e c t . 
L a t h a n a l l e g e d t h a t i t 
made an a d v a n c e payment t o t h e d e f e n d a n t s t o 
p r o c u r e 
t h e 
i n s u r a n c e ; t h e d e f e n d a n t s 
f a i l e d 
t o do 
s o ; 
and 
as a r e s u l t , L a t h a n s u s t a i n e d damages. 
"2. 
On A u g u s t 24, 2004, b o t h W a l k e r and 
R y a l s 
C o n s t r u c t i o n Co. were s e r v e d 
by 
t h e B a l d w i n 
C o u n t y 
S h e r i f f 
a t 511 
N. H i g h w a y 59, S u m m e r d a l e , A l a b a m a , 
36580. 
S e r v i c e was 
a c c e p t e d 
by 
a C r i s t y Hagan, 
an 
e m p l o y e e o f R y a l s R e a l 
E s t a t e . 
"3. 
An 
a n s w e r d e n y i n g 
t h e 
a l l e g a t i o n s o f 
t h e 
c o m p l a i n t 
on b e h a l f o f W a l k e r and R y a l s 
C o n s t r u c t i o n 
Co. 
was 
f i l e d 
by 
a t t o r n e y 
L l o y d 
T a y l o r , 
E s q . 
on 
S e p t e m b e r 28, 
2004. 
"4. 
On 
J u l y 12, 
2 0 0 [ 5 ] , 
t h i s C o u r t 
e n t e r e d 
an 
o r d e r 
s e t t i n g 
t h e 
c a s e 
f o r 
t r i a l 
on 
J a n u a r y 
5, 
2 0 0 [ 6 ] , 
and 
o r d e r e d 
t h e p a r t i e s t o 
m e d i a t i o n . 
"5. 
On O c t o b e r 28, 2005, a t t o r n e y T a y l o r 
f i l e d 
a m o t i o n t o w i t h d r a w as c o u n s e l 
f o r d e f e n d a n t C r a i g 
W a l k e r . 
"6. 
On J a n u a r y 
4, 2006, t h e m o t i o n was 
g r a n t e d . 
"7. 
No one a p p e a r e d on b e h a l f o f t h e d e f e n d a n t s 
on 
t h e 
t r i a l 
d a t e 
and 
t h o u g h 
n o t 
n o t e d 
on 
t h e 
d o c k e t , 
d e f a u l t 
was 
e n t e r e d 
on 
b e h a l f 
o f 
t h e 
p l a i n t i f f . 
2 
1091673 
"8. 
On May 19, 2006, an a f f i d a v i t i n s u p p o r t o f 
a d e f a u l t j u d g m e n t was 
f i l e d on b e h a l f o f 
[ L a t h a n ] 
and 
on May 
24, 
2006, 
a j u d g m e n t 
was 
e n t e r e d 
on 
b e h a l f 
o f 
[ L a t h a n ] 
and 
a g a i n s t 
C r a i g 
W a l k e r 
and 
R y a l s C o n s t r u c t i o n Co. i n t h e amount o f $ 4 2 2 , 2 5 0 . 0 0 . 
"9. 
Some two y e a r s l a p s e d and on J u n e 27, 2008, 
[ L a t h a n ] 
s e r v e d 
p o s t j u d g m e n t 
d i s c o v e r y 
on 
R y a l s 
C o n s t r u c t i o n Co. a t 511 N. H i g h w a y 59, 
Summerdale, 
A l a b a m a 36580. 
"10. 
The 
d i s c o v e r y 
went 
u n a n s w e r e d 
and 
on 
A u g u s t 
14, 
2008, 
[ L a t h a n ] 
f i l e d 
a 
m o t i o n 
f o r 
s a n c t i o n s 
f o r 
t h e 
f a i l u r e 
t o 
r e s p o n d 
t o 
t h e 
d i s c o v e r y 
s e n t t o R y a l s 
C o n s t r u c t i o n Co. a t 511 N. 
H i g h w a y 59, Summerdale, AL 
3 6 5 8 0 .
[ 1 ] 
"11. 
On [ S e p t e m b e r ] 2, 2008, a p p e a r i n g 
t h r o u g h 
c o u n s e l 
L l o y d T a y l o r , R y a l s 
R e a l E s t a t e and 
W i l l a r d 
E. 
R y a l s 
f i l e d 
a m o t i o n t o 
s t r i k e 
t h e m o t i o n f o r 
s a n c t i o n s , 
a l l e g i n g 
t h a t 
R y a l s 
R e a l 
E s t a t e 
and 
W i l l a r d E. R y a l s h a d n o t b e e n p r o p e r l y j o i n e d i n t h e 
m a t t e r 
and 
t h a t 
R y a l s 
C o n s t r u c t i o n 
Co. 
h a d 
no 
a f f i l i a t i o n 
w i t h R y a l s 
R e a l E s t a t e , I n c . o r W i l l a r d 
E. 
R y a l s . 
"12. 
The 
m o t i o n 
t o 
s t r i k e 
was 
g r a n t e d 
on 
S e p t e m b e r 
16, 
2008. 
A t 
t h a t 
h e a r i n g , 
t h e 
C o u r t 
r u l e d t h a t t h e e f f o r t t o add W i l l a r d R y a l s and 
R y a l s 
R e a l 
E s t a t e 
as p a r t i e s i n a p o s t j u d g m e n t 
s a n c t i o n 
m o t i o n was p r o c e d u r a l l y 
i m p r o p e r . 
"13. 
On S e p t e m b e r 22, 2008, [ L a t h a n ] 
amended 
i t s 
c o m p l a i n t . 
I n t h e amended c o m p l a i n t , 
[ L a t h a n ] 
p u r p o r t e d 
t o s u b s t i t u t e R y a l s 
R e a l 
E s t a t e , I n c . as 
p r e v i o u s 
f i c t i t i o u s p a r t y A, and W i l l a r d E. R y a l s as 
f i c t i t i o u s 
p a r t y 
B. 
[ L a t h a n ] , 
h o w e v e r , 
d i d n o t  
s i m p l y 
r e - a l l e g e 
t h e 
a l l e g a t i o n s o f 
i t s 
i n i t i a l 
1The 
p o s t j u d g m e n t 
m o t i o n 
f o r 
s a n c t i o n s 
a l s o 
s o u g h t 
s a n c t i o n s 
a g a i n s t 
R y a l s 
R e a l 
E s t a t e , 
I n c . , and 
W i l l a r d 
E. 
R y a l s . 
3 
1091673 
c o m p l a i n t ; r a t h e r i t a l l e g e d t h a t i t was 
s e e k i n g t o  
h o l d R y a l s R e a l E s t a t e and 
W i l l a r d R y a l s 
l i a b l e 
as 
 
a l t e r e g o s 
f o r t h e j u d g m e n t 
i t h e l d a g a i n s t 
R y a l s  
C o n s t r u c t i o n Co. 
Thus, 
[ L a t h a n ] 
f i l e d 
a new 
c a u s e 
o f 
a c t i o n .
 
[ 2 ] 
2The amended c o m p l a i n t r e a d s 
as 
f o l l o w s : 
" 1 ) The 
o r i g i n a l 
c o m p l a i n t 
f i l e d 
i n t h i s 
c a s e 
s a t e d 
' D e f e n d a n t s , 
A, 
B, 
and 
C, 
a r e 
i n d i v i d u a l s 
a n d / o r 
b u s i n e s s 
e n t i t i e s 
a s s o c i a t e d 
w i t h 
C r a i g 
W a l k e r 
a n d / o r 
i n v o l v e d w i t h 
C r a i g 
W a l k e r 
a n d / o r 
R y a l s C o n s t r u c t i o n Company i n p e r f o r m i n g a c o n t r a c t 
i n 
T u s c a l o o s a , 
A l a b a m a , 
and 
whose 
i d e n t i t i e s 
a r e 
unknown a t t h i s t i m e b u t 
w i l l be a d d e d by amendment 
once a s c e r t a i n e d . 
[ L a t h a n ] now amends i t s c o m p l a i n t 
t o 
name 
R y a l s 
R e a l 
E s t a t e , 
I n c . 
( A n 
A l a b a m a 
c o r p o r a t i o n ) as D e f e n d a n t ' A ' 
and 
W i l l a r d E. 
R y a l s 
as D e f e n d a n t 
' B . ' 
" 2 ) As a r e s u l t o f i n t e n s i v e r e s e a r c h 
[ L a t h a n ] 
has p r o v e n 
t h a t R y a l s R e a l E s t a t e , I n c . and 
W i l l a r d 
E. R y a l s a s s o c i a t e d w i t h a n d / o r c o n t r o l l e d D e f e n d a n t 
R y a l s 
C o n s t r u c t i o n 
Company 
and 
D e f e n d a n t 
C r a i g 
W a l k e r . 
A l l d e f e n d a n t s 
o p e r a t e d 
o u t 
o f 
t h e 
same 
s m a l l 
o f f i c e 
a t 
511 
N o r t h 
H i g h w a y 
59, 
S u m m e r d a l e , 
A l a b a m a 36580. 
The 
d e f e n d a n t s 
s h a r e d 
s t a f f , 
o f f i c e 
e q u i p m e n t and phone 
l i n e s . 
"3) 
[ L a t h a n ] 
r e c e i v e d 
a 
j u d g m e n t 
f r o m 
t h i s 
 
H o n o r a b l e 
C o u r t a g a i n s t D e f e n d a n t s C r a i g W a l k e r 
and 
 
R y a l s C o n s t r u c t i o n Company j o i n t l y and 
s e v e r a l l y 
on 
 
May 
24, 2006. 
B e c a u s e D e f e n d a n t s R y a l s R e a l E s t a t e ,  
I n c . 
and W i l l a r d E. R y a l s a r e t h e 
a l t e r egos o f 
and 
 
e x e r t e d 
c o n t r o l 
o v e r 
D e f e n d a n t s 
C r a i g W a l k e r 
and 
 
R y a l s 
C o n s t r u c t i o n 
Company, 
[ L a t h a n ] 
s e e k s 
a 
 
j u d g m e n t o f t h e C o u r t a d j u d i c a t i n g D e f e n d a n t s 
R y a l s  
R e a l E s t a t e , I n c . , and 
W i l l a r d E. R y a l s 
l i a b l e f o r  
t h e 
p r e v i o u s l y 
e n t e r e d 
j u d g m e n t 
p l u s 
a c c r u e d 
 
i n t e r e s t . " 
( E m p h a s i s added.) 
4 
1091673 
"14. 
On O c t o b e r 23, 2008, c o u n s e l L l o y d T a y l o r 
a g a i n 
f i l e d 
a 
n o t i c e 
o f 
a p p e a r a n c e s 
f o r 
R y a l s 
C o n s t r u c t i o n Co., W i l l a r d E. R y a l s , and R y a l s 
R e a l 
E s t a t e , I n c . 
"15. 
The f o l l o w i n g d a y R y a l s R e a l E s t a t e and 
W i l l a r d E. R y a l s 
f i l e d a m o t i o n t o s t r i k e o r d i s m i s s 
[ L a t h a n ' s ] 
c o m p l a i n t . 
T h i s 
m o t i o n 
was 
d e n i e d 
on 
December 17, 2008. 
"16. 
A 
s u b s e q u e n t 
m o t i o n 
t o r e c o n s i d e r t h e 
o r d e r 
d e n y i n g 
m o t i o n 
t o s t r i k e 
a n d / o r 
d i s m i s s t h e 
c o m p l a i n t was a l s o d e n i e d on M a r c h 2, 2009. 
"17. 
On 
A p r i l 
8, 2009, 
W i l l a r d E. R y a l s and 
R y a l s 
R e a l 
E s t a t e 
f i l e d 
an a n s w e r t o t h e amended 
c o m p l a i n t , a s s e r t i n g 
i n t e r 
a l i a , 
t h a t t h e c l a i m was 
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 , r e s j u d i c a t a , 
and i s s u e p r e c l u s i o n . 
They a l s o d e n i e d t h e y h a d any 
o w n e r s h i p 
i n t e r e s t 
i n 
o r 
c o n t r o l 
o f 
R y a l s 
C o n s t r u c t i o n Co." 
The 
t r i a l 
c o u r t c o n d u c t e d 
a b e n c h 
t r i a l a t w h i c h 
L a t h a n 
p r o c e e d e d 
on t h e t h e o r y t h a t W i l l a r d E. R y a l s and R y a l s 
R e a l 
E s t a t e , I n c . , 
were t h e a l t e r egos o f , and o t h e r w i s e a s s e r t e d 
c o n t r o l 
o v e r , R y a l s C o n s t r u c t i o n Co. 
B e c a u s e o f t h i s 
a l t e r 
ego 
r e l a t i o n s h i p , 
L a t h a n 
c o n t e n d e d , 
W i l l a r d 
E. R y a l s and 
R y a l s 
R e a l 
E s t a t e were 
l i a b l e 
f o r t h e j u d g m e n t p r e v i o u s l y 
e n t e r e d a g a i n s t R y a l s C o n s t r u c t i o n Co. 
W i l l a r d E. R y a l s and 
R y a l s 
R e a l 
E s t a t e , on t h e o t h e r 
h a n d , 
a s s e r t e d 
t h a t t h e 
amended c o m p l a i n t 
v i o l a t e d 
R u l e 
4 ( f ) , A l a . R. C i v . P., t h e 
5 
1091673 
f i c t i t i o u s - p a r t y - p r a c t i c e 
r u l e , and was 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 f t e r 
c o n s i d e r i n g 
t h e 
e v i d e n c e 
and 
h e a r i n g 
t h e 
t e s t i m o n y , 
t h e 
t r i a l 
c o u r t d e t e r m i n e d 
t h a t L a t h a n ' s 
amended 
c o m p l a i n t d i d n o t t e c h n i c a l l y s u b s t i t u t e W i l l a r d E. R y a l s 
and 
R y a l s 
R e a l 
E s t a t e 
f o r 
f i c t i t i o u s l y 
named 
p a r t i e s 
i n 
t h e 
o r i g i n a l 
c o m p l a i n t , b u t , 
r a t h e r , t h a t t h e amended 
c o m p l a i n t 
a d d e d t h o s e d e f e n d a n t s 
t o a s s e r t a new 
c a u s e o f a c t i o n , i . e . , 
a c l a i m o f a l t e r ego 
l i a b i l i t y f o r t h e j u d g m e n t L a t h a n 
a l r e a d y 
h e l d 
a g a i n s t R y a l s 
C o n s t r u c t i o n Co. 
A c c o r d i n g l y , t h e 
t r i a l 
c o u r t h e l d t h a t L a t h a n ' s 
c o m p l a i n t was 
n o t b a r r e d by 
e i t h e r 
R u l e 4 ( f ) , A l a . R. C i v . P., 
o r t h e s t a t u t e o f l i m i t a t i o n s . 
The 
t r i a l 
c o u r t 
c o n c l u d e d 
f r o m 
t h e 
u n d i s p u t e d 
e v i d e n c e 
t h a t 
W i l l a r d 
E. 
R y a l s 
and 
R y a l s 
R e a l 
E s t a t e were 
a l t e r 
e g o s 
o f 
R y a l s C o n s t r u c t i o n Co. 
B a s e d on t h i s u n d i s p u t e d e v i d e n c e , 
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 , 
f i n d i n g 
t h a t W i l l a r d E. 
R y a l s 
and R y a l s R e a l E s t a t e were l i a b l e f o r t h e j u d g m e n t p r e v i o u s l y 
e n t e r e d a g a i n s t R y a l s C o n s t r u c t i o n Co. on May 
24, 2006, i n t h e 
amount o f $ 4 2 2 , 2 5 0 , p l u s p o s t j u d g m e n t 
i n t e r e s t . 
W i l l a r d 
E. 
R y a l s 
f i l e d 
a p o s t j u d g m e n t 
m o t i o n , 
w h i c h 
t h e 
t r i a l 
c o u r t 
d e n i e d . 
W i l l a r d E. 
R y a l s 
t h e n 
a p p e a l e d , 
e s s e n t i a l l y 
r a i s i n g 
6 
1091673 
t h e same i s s u e s 
a d d r e s s e d b y t h e t r i a l c o u r t , 
i . e . , w h e t h e r 
L a t h a n ' s amended c o m p l a i n t 
f i l e d 
on S e p t e m b e r 22, 2008, i s 
b a r r e d by R u l e 4 ( f ) , A l a . R. C i v . 
P., and 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 .
3 
However, t h e r e i s a t h r e s h o l d 
i s s u e 
t h a t 
must be a d d r e s s e d -- w h e t h e r t h e t r i a l 
c o u r t 
h a d 
s u b j e c t -
m a t t e r j u r i s d i c t i o n . 
L a c k o f s u b j e c t - m a t t e r 
j u r i s d i c t i o n may 
be 
r a i s e d a t any t i m e b y a p a r t y o r b y a c o u r t ex mero motu. 
Stamps v. J e f f e r s o n C o u n t y Bd. o f E d u c . , 642 So. 2d 941, 945 
n. 2 ( A l a . 1 9 9 4 ) . 
A n a l y s i s 
L a t h a n ' s amended c o m p l a i n t 
f i l e d on S e p t e m b e r 22, 2008, 
a s s e r t e d a c l a i m b a s e d on an a l t e r ego 
t h e o r y . 
"A c l a i m b a s e d on t h e a l t e r ego t h e o r y i s n o t i n 
i t s e l f a c l a i m f o r s u b s t a n t i v e 
r e l i e f , b u t r a t h e r i s 
p r o c e d u r a l . A f i n d i n g o f f a c t o f a l t e r e g o , s t a n d i n g 
a l o n e , 
c r e a t e s 
no 
c a u s e 
o f 
a c t i o n . 
I t 
m e r e l y 
f u r n i s h e s 
a means 
f o r a 
c o m p l a i n a n t 
t o r e a c h 
a 
s e c o n d 
c o r p o r a t i o n 
o r 
i n d i v i d u a l 
upon a c a u s e o f 
a c t i o n 
t h a t 
o t h e r w i s e 
w o u l d 
have 
e x i s t e d 
o n l y 
a g a i n s t t h e f i r s t c o r p o r a t i o n . An a t t e m p t t o p i e r c e 
t h e 
c o r p o r a t e 
v e i l i s a means o f i m p o s i n g 
l i a b i l i t y 
on an u n d e r l y i n g 
c a u s e o f a c t i o n s u c h as a t o r t o r 
b r e a c h o f c o n t r a c t . I t h a s b e e n s a i d t h a t t h e a l t e r 
ego 
d o c t r i n e 
i s t h u s 
r e m e d i a l , 
n o t d e f e n s i v e , 
i n 
n a t u r e . 
One who 
s e e k s t o d i s r e g a r d 
t h e 
c o r p o r a t e 
3We 
n o t e 
t h a t 
on M a r c h 
30 
, 2010 
, 
t h i s 
C o u r t 
d e n i e d , 
w i t h o u t 
o p i n i o n , 
W i l l a r d E. R y a l s ' s 
p e t i t i o n 
f o r a w r i t o f 
mandamus, w h i c h r a i s e d t h e same i s s u e s now b e f o r e 
t h i s 
C o u r t 
on 
a p p e a l . 
Ex p a r t e 
R y a l s 
(No. 1 0 9 0 7 5 5 ) . 
7 
1091673 
v e i l 
must show 
t h a t 
t h e 
c o r p o r a t e 
f o r m 
has 
b e e n 
a b u s e d t o t h e 
i n j u r y o f a t h i r d 
p a r t y . " 
1 F l e t c h e r , C y c l o p e d i a C o r p o r a t i o n s 
§ 41.10 
( 1 9 9 0 ) . 
The 
t r i a l 
c o u r t 
c o n c l u d e d 
t h a t L a t h a n ' s amended c o m p l a i n t 
a s s e r t e d 
an 
e n t i r e l y 
new 
a c t i o n 
a l l e g i n g 
a c l a i m b a s e d 
on 
an 
a l t e r 
ego 
t h e o r y " i n e s s e n c e a l m o s t i n t h e n a t u r e 
o f a c r e d i t o r ' s 
b i l l . " 
I n B a c k u s v. W a t s o n , 619 
So. 
2d 1342 
( A l a . 1 9 9 3 ) , B a c k u s 
i n i t i a l l y 
s u e d C a r o u s e l 
C l u b 
90, 
I n c . 
("the 
c l u b " ) , 
s e e k i n g 
damages u n d e r t h e Dram Shop A c t f o r h e r a l l e g e d i n j u r i e s ; 
she 
o b t a i n e d 
a s u b s t a n t i a l j u d g m e n t . 
B a c k u s 
l a t e r 
f i l e d 
a n o t h e r 
a c t i o n , n a m i n g as d e f e n d a n t s t h e c l u b , Jimmy W a t s o n , and 
S y b l e 
W a t s o n , s e e k i n g t o s e t a s i d e an a l l e g e d f r a u d u l e n t t r a n s f e r o f 
t h e c l u b ' s a s s e t s . 
B a c k u s a l l e g e d i n t h e new 
c o m p l a i n t 
t h a t 
t h e W a t s o n s had 
u s e d 
t h e 
c l u b 
as 
t h e i r 
a l t e r 
ego. 
B a c k u s 
s o u g h t t o h o l d 
t h e owner o f a c o r p o r a t i o n p e r s o n a l l y 
l i a b l e 
u n d e r an a l t e r ego 
t h e o r y 
( i . e . , t o p i e r c e t h e c o r p o r a t e 
v e i l ) 
f o r 
a j u d g m e n t she 
had 
o b t a i n e d 
a g a i n s t 
t h e 
c l u b . 
" B a c k u s ' s 
p r e s e n t 
a c t i o n a g a i n s t Watson was 
b a s e d on a c a u s e o f a c t i o n 
e n t i r e l y 
d i f f e r e n t 
f r o m t h e 
one 
on w h i c h h e r 
a c t i o n 
a g a i n s t 
t h e 
c l u b was 
b a s e d 
" 619 
So. 
2d 
a t 1 3 4 4 - 4 5 . 
I n 
s h o r t , 
B a c k u s 
f i l e d 
a new 
c o m p l a i n t 
a l l e g i n g t h e 
a l t e r ego 
t h e o r y . 
8 
1091673 
H e r e , L a t h a n a t t e m p t e d t o amend h i s c o m p l a i n t 
t o add 
two 
d e f e n d a n t s and t o a s s e r t a new p o s t j u d g m e n t c a u s e o f a c t i o n i n 
t h e same p r o c e e d i n g . 
However, t h e d e f a u l t j u d g m e n t e n t e r e d 
on 
t h e 
o r i g i n a l 
c o m p l a i n t 
was 
f i n a l . 
"'A 
j u d g m e n t 
t h a t 
c o n c l u s i v e l y d e t e r m i n e s a l l o f t h e i s s u e s b e f o r e t h e c o u r t 
and 
a s c e r t a i n s and 
d e c l a r e s t h e r i g h t s o f t h e p a r t i e s i n v o l v e d i s 
a f i n a l j u d g m e n t . ' " 
P r a t t C a p i t a l , I n c . v. B o y e t t , 
840 
So. 
2d 
138, 
144 
( A l a . 2 
0 
0 
2 ) ( q u o t i n g N i c h o l s v. I n g r a m P l u m b i n g , 
710 
So. 
2d 
454, 
455 
( A l a . C i v . 
App. 
1 9 9 8 ) ) . 
"A 
j u d g m e n t 
t h a t 
d e c l a r e s t h e r i g h t s o f t h e p a r t i e s and 
s e t t l e s t h e e q u i t i e s i s 
f i n a l 
e v e n 
t h o u g h 
t h e 
t r i a l 
c o u r t 
e n v i s i o n s 
f u r t h e r 
p r o c e e d i n g s 
t o e f f e c t u a t e t h e j u d g m e n t . " 
Wyers v. K e e n o n , 
762 
So. 
2d 
353, 
355 
( A l a . 1 9 9 9 ) . 
O t h e r w i s e 
s t a t e d , 
a j u d g m e n t 
t h a t i s " d e f i n i t i v e 
o f t h e c a u s e i n t h e c o u r t b e l o w , 
l e a v i n g 
n o t h i n g 
f u r t h e r t o 
be 
d o n e , 
s a v e 
[ i t s e n f o r c e m e n t ] , " 
i s 
a 
f i n a l j u d g m e n t . 
Ex p a r t e G i l m e r , 
64 A l a . 234, 
235 
( 1 8 7 9 ) . 
" C l a i m s 
a d j u d i c a t e d i n a p r e v i o u s 
n o n - f i n a l o r d e r become 
f i n a l 
... 
a t t h e t i m e t h e l a s t p a r t y o r c l a i m i s d i s p o s e d 
o f . " 
O l i v e r 
v. 
Townsend, 
534 
So. 
2d 
1038, 
1046 
( A l a . 1 9 8 8 ) . 
A 
" ' " c o u r t c a n n o t , by i t s s u b s e q u e n t a c t i o n , d i v e s t a [ j u d g m e n t ] 
o f 
i t s c h a r a c t e r 
o f 
f i n a l i t y . 
A 
f i n a l 
[ j u d g m e n t ] 
i s 
n o t 
9 
1091673 
r e n d e r e d 
i n t e r l o c u t o r y b y t h e r e t e n t i o n o f t h e c a s e on t h e 
d o c k e t , n o r b y t h e s u b s e q u e n t r e n d i t i o n o f a n o t h e r 
[ j u d g m e n t ] 
t h e r e i n . " ' " 
B o y e t t , 840 So. 2d a t 145 ( q u o t i n g N i c h o l s , 710 
So. 
2d a t 456, 
q u o t i n g 
i n t u r n 
M i n g l e d o r f f 
v . 
F a l k v i l l e 
 
Downtown R e d e v . A u t h . , 641 So. 2d 830 , 832 
( A l a . C i v . App. 
1 9 9 4 ) ) . 
N e i t h e r c a n a f i n a l j u d g m e n t "be made n o n f i n a l b y t h e 
t r i a l 
c o u r t ' s 
c a l l i n g i t 
n o n f i n a l . " 
S m i t h v . F r u e h a u f C o r p . , 
580 So. 2d 570, 572 ( A l a . 1 9 9 1 ) . 
I n H a r p e r v. Brown, S t a g n e r , 
R i c h a r d s o n , 
I n c . , 
845 So. 2d 
777 ( A l a . 2 0 0 2 ) , t h e p l a i n t i f f 
o b t a i n e d a j u d g m e n t a g a i n s t a 
c o r p o r a t e 
d e f e n d a n t . 
S u b s e q u e n t l y , t h e p l a i n t i f f moved t o 
amend h i s c o m p l a i n t t o add an i n d i v i d u a l d e f e n d a n t as a p a r t y 
d e f e n d a n t p u r s u a n t t o R u l e 6 0 ( b ) , A l a . 
R. C i v . 
P. 
The 
t r i a l 
c o u r t 
a l l o w e d 
amendment. 
We 
r e v e r s e d , 
h o l d i n g 
t h a t t h e 
p l a i n t i f f ' s 
R u l e 6 0 ( b ) m o t i o n d i d n o t a t t a c k t h e j u d g m e n t i n 
h i s 
f a v o r a g a i n s t t h e c o r p o r a t e d e f e n d a n t and s o u g h t no 
r e l i e f 
f r o m 
t h a t 
j u d g m e n t b u t , i n s t e a d , 
s o u g h t 
o n l y t o amend i t s 
c o m p l a i n t 
t o add an i n d i v i d u a l as a d e f e n d a n t . 
I n B o y e t t , 
s u p r a , 
t h e p r o s p e c t i v e 
p u r c h a s e r 
o f p r o p e r t y 
s u e d h i s c o -
p u r c h a s e r 
a l l e g i n g b r e a c h o f c o n t r a c t , f r a u d , and 
c o n v e r s i o n 
a f t e r 
t h e 
c o - p u r c h a s e r 
a l l e g e d l y 
a c q u i r e d 
t h e 
t i t l e 
t o 
10 
1091673 
p r o p e r t y 
and 
r e f u s e d t o r e t u r n t h e p u r c h a s e money. 
A f t e r 
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 
f o r t h e 
p r o s p e c t i v e 
p u r c h a s e r 
and a w a r d e d c o m p e n s a t o r y and 
p u n i t i v e damages, 
t h e 
p r o s p e c t i v e 
p u r c h a s e r 
f i l e d 
an amendment 
t o 
h i s 
c o m p l a i n t , 
a d d i n g as a d e f e n d a n t t h e company o f w h i c h t h e 
c o - p u r c h a s e r ' s 
a t t o r n e y 
was 
p r e s i d e n t , 
on 
t h e g r o u n d t h a t 
t h e 
c o - p u r c h a s e r 
was 
f r a u d u l e n t l y a t t e m p t i n g 
t o t r a n s f e r t h e 
p r o p e r t y 
t o 
t h e 
company. 
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 
and 
f o u n d 
t h e 
t r a n s f e r 
f r a u d u l e n t . 
T h i s 
C o u r t 
h e l d 
t h a t 
t h e 
o r i g i n a l 
j u d g m e n t was 
f i n a l 
and 
t h a t t h e c o - p u r c h a s e r c o u l d n o t amend 
h i s 
c o m p l a i n t . 
More r e c e n t l y , i n F a i t h P r o p e r t i e s , LLC 
v. 
 
F i r s t C o m m e r c i a l Bank, 988 
So. 
2d 485 
( A l a . 
2 0 0 8 ) , t h e b a n k 
b r o u g h t an a c t i o n a g a i n s t t h e p e r s o n a l g u a r a n t o r 
o f a 
b u s i n e s s 
l o a n 
t o 
s e i z e p r o c e e d s 
t h e 
g u a r a n t o r 
had 
r e a l i z e d 
f r o m 
t h e 
s a l e o f t h e g u a r a n t o r ' s 
p r o p e r t y . 
The 
t r i a l 
c o u r t e n t e r e d 
a 
p r e l i m i n a r y 
i n j u n c t i o n and 
s u b s e q u e n t l y 
e n t e r e d 
a 
d e f a u l t 
j u d g m e n t a g a i n s t t h e g u a r a n t o r . 
The 
g u a r a n t o r 
f i l e d a m o t i o n 
s e e k i n g 
r e l i e f f r o m t h e d e f a u l t j u d g m e n t . 
The bank t h e n 
f i l e d 
an amended c o m p l a i n t 
a d d i n g t h e g u a r a n t o r ' s 
w i f e and a 
g r a n t e e 
as d e f e n d a n t s 
and 
s e e k i n g 
t o s e t a s i d e c o n v e y a n c e s t h e b a n k 
a l l e g e d 
were 
f r a u d u l e n t . 
The 
t r i a l 
c o u r t 
a l l o w e d 
t h e 
11 
1091673 
amendment and s u b s e q u e n t l y e n t e r e d a summary j u d g m e n t f o r t h e 
b a n k . 
T h i s C o u r t h e l d t h a t t h e t r i a l c o u r t l o s t 
j u r i s d i c t i o n 
t o 
e n t e r t a i n an amendment t o t h e b a n k ' s c o m p l a i n t 
a f t e r i t 
d e n i e d t h e m o t i o n t o s e t a s i d e t h e d e f a u l t j u d g m e n t . 
L a t h a n ' s 
a t t e m p t 
t o amend i t s 
c o m p l a i n t t o 
s u b s t i t u t e 
W i l l a r d E. R y a l s and R y a l s R e a l E s t a t e f o r t h e 
f i c t i t i o u s l y 
named p a r t i e s i n t h e o r i g i n a l 
c o m p l a i n t so t h a t t h e amended 
c o m p l a i n t w o u l d r e l a t e b a c k t o h i s o r i g i n a l c o m p l a i n t i s a l s o 
u n a v a i l i n g . 
R u l e 4 ( f ) , 
A l a . 
R. C i v . 
P., p r o v i d e s : 
"When t h e r e a r e m u l t i p l e d e f e n d a n t s and t h e summons 
... and t h e c o m p l a i n t h a v e b e e n 
s e r v e d on one o r 
more, b u t n o t a l l , o f t h e d e f e n d a n t s , t h e 
p l a i n t i f f 
may 
p r o c e e d 
t o j u d g m e n t 
as t o t h e d e f e n d a n t 
o r 
d e f e n d a n t s on whom p r o c e s s h a s b e e n s e r v e d a n d , 
i f 
t h e 
j u d g m e n t as t o t h e d e f e n d a n t o r d e f e n d a n t s who 
h a v e b e e n s e r v e d i s f i n a l i n a l l 
o t h e r r e s p e c t s , i t 
s h a l l 
be 
a 
f i n a l 
j u d g m e n t . 
A f t e r 
t h e 
e n t r y 
o f 
j u d g m e n t , i f 
t h e p l a i n t i f f i s a b l e t o o b t a i n 
s e r v i c e 
on a d e f e n d a n t o r d e f e n d a n t s n o t p r e v i o u s l y 
s e r v e d 
( e x c e p t , 
h o w e v e r , 
d e f e n d a n t s 
d e s i g n a t e d 
as 
f i c t i t i o u s 
p a r t i e s 
as 
a l l o w e d b y R u l e 
9 ( h ) , who 
s h a l l be deemed t o h a v e b e e n d i s m i s s e d 
v o l u n t a r i l y 
when t h e c a s e was a n n o u n c e d r e a d y f o r t r i a l a g a i n s t 
o t h e r 
d e f e n d a n t s 
s u e d 
by 
t h e i r 
t r u e 
n a m e s ) , t h e 
c o u r t s h a l l h e a r a n d d e t e r m i n e t h e m a t t e r as t o s u c h 
d e f e n d a n t 
o r d e f e n d a n t s 
i n t h e same manner as i f 
s u c h 
d e f e n d a n t 
o r d e f e n d a n t s 
h a d 
o r i g i n a l l y 
b e e n 
b r o u g h t i n t o c o u r t , b u t s u c h d e f e n d a n t o r d e f e n d a n t s 
s h a l l 
be 
a l l o w e d t h e b e n e f i t 
o f any payment o r 
s a t i s f a c t i o n t h a t may h a v e b e e n made on t h e j u d g m e n t 
p r e v i o u s l y e n t e r e d i n t h e a c t i o n . " 
12 
1091673 
L a t h a n 
d i d n o t amend 
h i s c o m p l a i n t 
b e f o r e 
t r i a l 
t o 
s u b s t i t u t e a r e a l p a r t y f o r a f i c t i t i o u s l y named 
d e f e n d a n t . 
B e c a u s e " [ t ] h e b e g i n n i n g o f t r i a l 
o p e r a t e s as a d i s m i s s a l o f 
f i c t i t i o u s l y named p a r t i e s , " Ex p a r t e D y e s s , 709 So. 2d 447, 
452 ( A l a . 1 9 9 7 ) ( c i t i n g R u l e 4 ( f ) , A l a . 
R. C i v . P . ) , L a t h a n ' s 
a t t e m p t t o amend i t s c o m p l a i n t t o s u b s t i t u t e a r e a l p a r t y f o r 
a 
f i c t i t i o u s l y 
named 
p a r t y 
a f t e r 
t h e 
f i n a l 
j u d g m e n t 
was 
r e n d e r e d was 
i n e f f e c t u a l . 
We 
r e c o g n i z e t h a t i n t h e p r e s e n t 
c a s e t h e t r i a l 
c o u r t 
p u r p o r t e d 
t o 
t r e a t 
L a t h a n ' s 
amended 
c o m p l a i n t 
f i l e d 
on 
S e p t e m b e r 22, 2008, as a new a c t i o n . However, t h e t r i a l 
c o u r t 
d i d 
n o t c h a r g e 
L a t h a n 
a new 
f i l i n g 
f e e , n o r d i d t h e 
t r i a l 
c o u r t 
a s s i g n t h e amended c o m p l a i n t a new c a s e number. 
The 
t r i a l 
c o u r t ' s a t t e m p t t o t r e a t L a t h a n ' s amended c o m p l a i n t as 
a new 
a c t i o n was i n w o r d s o n l y and was n o t 
s u f f i c i e n t t o 
commence a new a c t i o n . 
See, e . g . , § 1 2 - 1 9 - 7 0 , A l a . 
Code 1975 
( w h i c h p r o v i d e s t h a t payment o f a f i l i n g f e e i s m a n d a t o r y ) . 
C o n c l u s i o n 
L a t h a n 
c o u l d 
n o t amend 
i t s c o m p l a i n t 
a f t e r 
a 
f i n a l 
j u d g m e n t h a d b e e n e n t e r e d , and t h e amended c o m p l a i n t c o u l d n o t 
s i m p l y be d e n o m i n a t e d a new 
a c t i o n w i t h o u t b e i n g 
t r e a t e d as 
13 
1091673 
one. 
A c c o r d i n g l y , t h e 
t r i a l 
c o u r t d i d n o t have 
j u r i s d i c t i o n 
t o e n t e r i t s j u d g m e n t a g a i n s t W i l l a r d E. R y a l s and R y a l s 
R e a l 
E s t a t e , 
f i n d i n g 
t h a t 
t h o s e 
d e f e n d a n t s were 
l i a b l e 
f o r 
t h e 
j u d g m e n t p r e v i o u s l y e n t e r e d a g a i n s t R y a l s C o n s t r u c t i o n Co. 
on 
May 
24, 
2006, 
i n t h e amount o f $ 4 2 2 , 2 5 0 , p l u s 
p o s t j u d g m e n t 
i n t e r e s t . 
A 
j u d g m e n t 
e n t e r e d 
by 
a 
t r i a l 
c o u r t 
w i t h o u t 
s u b j e c t - m a t t e r 
j u r i s d i c t i o n 
i s 
v o i d . 
Ex 
p a r t e 
N o r f o l k 
 
S o u t h e r n Ry., 
816 
So. 
2d 469, 
472 
( A l a . 2 0 0 1 ) . 
B a s e d on 
t h e 
f o r e g o i n g , 
we 
d i s m i s s 
t h e 
a p p e a l 
as 
b e i n g 
f r o m 
a 
v o i d 
j u d g m e n t . 
APPEAL DISMISSED. 
Cobb, 
C . J . , 
and 
S t u a r t , 
P a r k e r , 
Shaw, M a i n , 
and 
W i s e , 
J J . , 
c o n c u r . 
M u r d o c k , J . , c o n c u r s 
s p e c i a l l y . 
W o o d a l l , 
J . , c o n c u r s 
i n t h e 
r e s u l t . 
14 
1091673 
MURDOCK, J u s t i c e 
( c o n c u r r i n g 
s p e c i a l l y ) . 
I 
f u l l y c o n c u r 
i n t h e m a i n o p i n i o n . 
I w r i t e s e p a r a t e l y 
t o 
comment 
on 
t h e 
t e n s i o n 
b e t w e e n 
t h e 
t r i a l 
c o u r t ' s 
c o n c l u s i o n , on t h e one h a n d , t h a t L a t h a n ' s amended c o m p l a i n t , 
f i l e d 
on 
S e p t e m b e r 
22, 
2008, 
r e p r e s e n t e d 
"an 
e n t i r e l y 
new 
c a u s e 
o f 
a c t i o n 
a l l e g i n g 
a l t e r 
ego" 
and 
t h e 
t r i a l 
c o u r t ' s 
c o n c l u s i o n , on t h e o t h e r h a n d , t h a t t h i s amended c o m p l a i n t 
was 
" i n 
e s s e n c e 
a l m o s t 
i n t h e n a t u r e 
o f a c r e d i t o r ' s 
b i l l . " 
I n 
Wyers v. 
K e e n o n , 
7 
62 
So. 
2d 
353 
( A l a . 
1 
9 9 9 ) , 
t h i s 
C o u r t 
e x p l a i n e d what a c r e d i t o r ' s 
b i l l 
i s and 
i s n o t : 
"A c r e d i t o r ' s 
b i l l i s i n the n a t u r e of an e q u i t a b l e 
e x e c u t i o n , which i s g r a n t e d on the ground t h a t t h e r e 
i s no remedy a t law. 21 Am. 
J u r . 2d C r e d i t o r ' s 
B i l l 
§ 
2 
(1981). 
The 
p r o c e s s 
of 
garnishment 
and 
a 
 
c r e d i t o r ' s 
b i l l 
a r e , i n e f f e c t , 
i n s t i t u t e d f o r the  
same purpose, namely, t o r e a c h money or p r o p e r t y i n  
the hands of a t h i r d p a r t y , due 
and owing from 
a 
judgment d e b t o r t o a judgment c r e d i t o r . 
21 C.J.S. 
C r e d i t o r and Debtor § 95 (1990) . The g e n e r a l r u l e i s 
t h a t when a c r e d i t o r ' s 
b i l l 
i s b r o u g h t 
t o r e a c h a 
d e b t o r ' s a s s e t s i n the hands of a t h i r d p e r s o n , 
a 
judgment 
e n t e r e d 
on 
the 
c r e d i t o r ' s 
b i l l 
cannot 
 
exceed 
the v a l u e 
of t h o s e 
a s s e t s and 
a p e r s o n a l  
judgment 
cannot 
be 
r e n d e r e d 
a g a i n s t 
t h a t 
t h i r d 
 
p e r s o n . 21 Am. 
J u r . 2d C r e d i t o r ' s B i l l § 87 
(1981)." 
762 So. 
2d a t 355-56 ( e m p h a s i s a d d e d ) . 
The amended c o m p l a i n t 
was 
an 
e f f o r t 
t o o b t a i n a " p e r s o n a l j u d g m e n t " a g a i n s t a 
new 
d e f e n d a n t 
and t h u s was 
n o t a " c r e d i t o r ' s 
b i l l . " 
15