Title: SE Property Holdings, LLC v. Eagerton
Citation: N/A
Docket Number: 1120394
State: Alabama
Issuer: Alabama Supreme Court
Date: May 17, 2013

REL:05/17/2013 
N o t i c e : 
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, 2012-2013 
1120394 
Ex parte Fred G. Eagerton and 
Nancy Eagerton 
PETITION FOR WRIT OF MANDAMUS 
(In re: SE Property Holdings, LLC 
v. 
Fred G. Eagerton e t a l . ) 
(Baldwin C i r c u i t Court, CV-2009-900564) 
BOLIN, 
J u s t i c e . 
F r e d G. E a g e r t o n and 
Nancy E a g e r t o n p e t i t i o n 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 
B a l d w i n 
C i r c u i t C o u r t 
t o 
e n t e r a judgment as 
a m a t t e r o f 
l a w 
i n 
t h e i r f a v o r and a g a i n s t 
1120394 
SE 
P r o p e r t y 
H o l d i n g s , 
LLC, 
c o n s i s t e n t w i t h 
t h i s 
C o u r t ' s 
mandate 
i n E a g e r t o n 
v. 
V i s i o n Bank, 
99 
So. 
3d 
299 
( A l a . 
2012) ("Eagerton 
I " ) . 
SE 
P r o p e r t y 
H o l d i n g s , 
LLC, 
i s 
the 
s u c c e s s o r by merger t o V i s i o n Bank. 
We h e r e i n a f t e r r e f e r t o 
V i s i o n Bank and/or SE P r o p e r t y H o l d i n g s , LLC, as "the bank." 
We g r a n t the 
p e t i t i o n . 
I . 
F a c t s and P r o c e d u r a l H i s t o r y 
The u n d e r l y i n g f a c t s of t h i s case are r e c i t e d i n f u l l i n 
i n E a g e r t o n 
I : 
"Dotson 
10s, 
LLC, 
i s 
an 
Alabama 
l i m i t e d 
l i a b i l i t y 
company 
o r g a n i z e d 
t o 
o p e r a t e 
the 
Rock 
Creek T e n n i s C l u b l o c a t e d a t 142 Clubhouse D r i v e i n 
F a i r h o p e . 
John W. 
Dotson, 
J r . , and 
E l i z a b e t h E. 
Dotson ( h e r e i n a f t e r sometimes c o l l e c t i v e l y r e f e r r e d 
t o as ' t h e Dotsons') are the s o l e members of Dotson 
10s. 
"On 
December 
9, 
2007, Dotson 
10s 
e x e c u t e d 
a 
' M u l t i p u r p o s e Note and S e c u r i t y Agreement' w i t h the 
bank 
i n 
the 
amount 
of $550,677.53 
( h e r e i n a f t e r 
r e f e r r e d t o as ' t h e 
o r i g i n a l 
l o a n ' ) ; the m a t u r i t y 
date of the o r i g i n a l l o a n was December 9, 2010. 
In 
c o n j u n c t i o n 
w i t h 
the 
o r i g i n a l 
l o a n , 
the 
bank 
o b t a i n e d 
u n l i m i t e d p e r s o n a l 
g u a r a n t i e s 
from 
b o t h 
John W. 
Dotson, J r . , and E l i z a b e t h E. Dotson. 
The 
bank a l s o o b t a i n e d l i m i t e d p e r s o n a l g u a r a n t i e s from 
b o t h 
F r e d 
G. 
E a g e r t o n 
and 
Nancy 
E a g e r t o n ; 
the 
E a g e r t o n s 
are 
E l i z a b e t h Dotson's 
p a r e n t s . 
The 
o r i g i n a l l o a n was 
s e c u r e d by a mortgage on the 
r e a l 
p r o p e r t y l o c a t e d a t 142 Clubhouse D r i v e ( h e r e i n a f t e r 
r e f e r r e d t o as ' t h e 
f i r s t mortgage'). 
2 
1120394 
"On 
December 11, 
2008, Dotson 10s 
e x e c u t e d 
a 
subsequent 
' M u l t i p u r p o s e 
Note 
and 
S e c u r i t y 
Agreement' 
w i t h 
the 
bank 
i n 
t h e 
amount 
of 
$222,513.56 ( h e r e i n a f t e r r e f e r r e d t o as ' t h e 
second 
l o a n ' ) ; t h i s l o a n i s i d e n t i f i e d by the bank as 
l o a n 
number 302669. The second l o a n was g u a r a n t e e d s o l e l y 
by the D o t s o n s ; the E a g e r t o n s n e i t h e r were p a r t i e s 
t o the 
t r a n s a c t i o n i n v o l v i n g the second l o a n , 
nor 
d i d 
t h e y 
e x e c u t e 
p e r s o n a l 
g u a r a n t i e s 
f o r 
the 
repayment of the second l o a n . The 
second l o a n 
was 
s e c u r e d 
by 
what 
i s 
t i t l e d 
a 
'2nd 
R e a l 
E s t a t e 
M o r t g a g e ' on the same r e a l p r o p e r t y 
l o c a t e d a t 
142 
Clubhouse 
D r i v e 
( h e r e i n a f t e r 
r e f e r r e d t o 
as 
' t h e 
second mortgage'). 
" I n A p r i l 2009, the bank d e c l a r e d the 
o r i g i n a l 
l o a n and the second l o a n i n d e f a u l t and 
a c c e l e r a t e d 
the b a l a n c e s due under b o t h l o a n s ; Dotson 10s 
f a i l e d 
t o 
pay 
the 
b a l a n c e s . 
The 
bank 
f i l e d 
a 
b r e a c h - o f - c o n t r a c t 
a c t i o n 
i n 
the 
B a l d w i n 
C i r c u i t 
C o u r t a g a i n s t Dotson 10s, 
as the p r i m a r y o b l i g o r of 
the o r i g i n a l l o a n and the second l o a n ; the Dotsons, 
as p e r s o n a l g u a r a n t o r s of the o r i g i n a l l o a n and 
the 
second 
l o a n ; 
and 
the 
E a g e r t o n s , 
as 
p e r s o n a l 
g u a r a n t o r s of the o r i g i n a l 
l o a n . 
"On 
May 
28, 2009, Dotson 10s 
f i l e d a 
p e t i t i o n 
f o r 
r e o r g a n i z a t i o n 
under 
C h a p t e r 
11 
of 
the 
B a n k r u p t c y Code 
i n 
the 
U n i t e d 
S t a t e s 
B a n k r u p t c y 
C o u r t 
f o r the 
S o u t h e r n 
D i s t r i c t 
of Alabama 
('the 
b a n k r u p t c y c o u r t ' ) . On August 25, 2009, Dotson 
10s 
f i l e d w i t h the b a n k r u p t c y c o u r t i t s p r o p o s e d C h a p t e r 
11 p l a n of r e o r g a n i z a t i o n , w h i c h p r o v i d e d , 
i n p a r t , 
t h a t the o r i g i n a l l o a n and the second l o a n would be 
combined 
( h e r e i n a f t e r 
r e f e r r e d 
t o 
as 
' t h e 
c o n s o l i d a t e d l o a n ' ) and p a i d i n 
f u l l . 
The 
p r o p o s e d 
p l a n s t a t e s , i n p e r t i n e n t p a r t : 
" ' T h i s 
c l a s s 
c o n s i s t s 
of 
the 
A l l o w e d 
S e c u r e d C l a i m 
of V i s i o n Bank, w h i c h 
c l a i m 
i s 
s e c u r e d by 
6.5 
a c r e 
p a r c e l where 
the 
c l u b h o u s e , t e n n i s c o u r t s and swimming p o o l 
3 
1120394 
e x i s t . The two n o t e s c o m p r i s i n g 
t h i s 
c l a i m  
and t o t a l i n g a p p r o x i m a t e l y $823,411 w i l l be  
combined and p a i d a t 6% i n e q u a l 
monthly  
i n s t a l l m e n t s of $5,900 b e g i n n i n g 
30 days  
a f t e r c o n f i r m a t i o n . The notes w i l l be p a i d  
i n 
f u l l w i t h i n 240 months.... V i s i o n Bank 
w i l l 
r e t a i n 
i t s l i e n 
on 
t h e 
s u b j e c t 
p r o p e r t y 
u n t i l the debt i s p a i d i n 
f u l l . ' 
"(Emphasis added.) 
"On 
December 
1, 2009, t h e b a n k r u p t c y 
c o u r t 
c o n d u c t e d 
a 
c o n f i r m a t i o n 
h e a r i n g 
r e g a r d i n g 
the 
p r o p o s e d 
r e o r g a n i z a t i o n 
p l a n ; 
the 
Dotsons 
and 
c e r t a i n bank r e p r e s e n t a t i v e s were p r e s e n t 
a t t h a t 
h e a r i n g . 
B e f o r e 
t h e 
h e a r i n g , 
t h e 
bank 
r e p r e s e n t a t i v e s 
n e g o t i a t e d 
a d d i t i o n a l terms 
t h a t 
were f a v o r a b l e t o the bank. On December 10, 2009, 
the b a n k r u p t c y c o u r t e n t e r e d an o r d e r c o n f i r m i n g t h e 
p l a n 
of 
r e o r g a n i z a t i o n , 
as 
amended. 
The 
o r d e r 
s t a t e s , i n p e r t i n e n t p a r t : 
"'(2) The s e c u r e d 
c l a i m of V i s i o n Bank i s 
d e t e r m i n e d t o be $795,908.84 as of December 
1, 2009; (3) [ D o t s o n 1 0 s ] s h a l l pay the 
s e c u r e d 
c l a i m 
t o V i s i o n Bank 
i n 
e q u a l 
monthly payments of $6,172.64 p e r month 
b e g i n n i n g 
J a n u a r y 
1, 
2010. 
I n t e r e s t i s 
c a l c u l a t e d a t 7% p e r annum. The debt t o 
V i s i o n Bank s h a l l mature and become 
f u l l y 
due and p a y a b l e on J a n u a r y 1, 2012; (4) 
[ D o t s o n 1 0 s ] s h a l l have no g r a c e p e r i o d . I f 
any payment i s n o t p a i d on or b e f o r e the 
due 
d a t e , 
t h e 
a u t o m a t i c 
s t a y 
s h a l l 
t e r m i n a t e and V i s i o n Bank i s a u t h o r i z e d t o  
i m m e d i a t e l y f o r e c l o s e i t s mortgage w i t h o u t 
f u r t h e r o r d e r o f t h i s 
C o u r t . . . . ' 
"(Emphasis added.) The bank t h e r e a f t e r a s s i g n e d 
a 
new l o a n number t o t h e c o n s o l i d a t e d 
l o a n . 
4 
1120394 
the 
e n t e r e d 
an 
" I n March 2010, 
Dotsons 10s d e f a u l t e d under 
b a n k r u p t c y p l a n , and the b a n k r u p t c y c o u r t 
e n t e r e 
o r d e r d i s m i s s i n g the b a n k r u p t c y a c t i o n . On May 
12, 
2010, 
the bank c o n d u c t e d a f o r e c l o s u r e s a l e of 
the 
r e a l 
p r o p e r t y 
p u r s u a n t 
t o 
the 
b a n k r u p t c y 
c o u r t ' s 
o r d e r 
s e t out above. The 
bank p u r c h a s e d the 
r e a l 
p r o p e r t y 
f o r 
$600,000 
and 
a p p l i e d 
the 
p r o c e e d s 
e n t i r e l y t o the c o n s o l i d a t e d 
l o a n . 
"On 
J u l y 15, 
2010, 
the B a l d w i n 
C i r c u i t 
C o u r t 
( h e r e i n a f t e r r e f e r r e d t o as 
'the 
t r i a l 
c o u r t ' ) , i n 
response t o a motion f o r a summary judgment f i l e d 
by 
the bank, 
e n t e r e d 
a 
p a r t i a l summary judgment 
i n 
f a v o r of the bank a g a i n s t Dotson 10s but d e n i e d 
the 
m o t i o n as t o the E a g e r t o n s . The bank, t h e r e a f t e r , 
f i l e d a n o t h e r m o t i o n f o r a 
' f i n a l 
p a r t i a l summary 
judgment' a g a i n s t 
the E a g e r t o n s , 
a r g u i n g 
t h a t 
the 
E a g e r t o n s 
were 
r e s p o n s i b l e 
under 
t h e i r 
g u a r a n t y 
c o n t r a c t s 
f o r 
the 
d e f i c i e n c y 
r e m a i n i n g 
on 
the 
 
c o n s o l i d a t e d 
l o a n 
a f t e r 
a l l o c a t i o n 
of 
the 
f o r e c l o s u r e p r o c e e d s t o t h a t l o a n . S p e c i f i c a l l y , 
the 
bank 
argued 
t h a t 
because 
the 
o r i g i n a l 
l o a n 
r e p r e s e n t e d 
71.07% 
of 
the 
c o n s o l i d a t e d 
l o a n , 
the 
E a g e r t o n s s h o u l d be l i a b l e f o r 71.07% of the b a l a n c e 
r e m a i n i n g 
on the c o n s o l i d a t e d l o a n a f t e r a p p l i c a t i o n 
of the f o r e c l o s u r e p r o c e e d s , as w e l l as 100% 
of 
the 
i n t e r e s t , 
a t t o r n e y 
f e e s , 
e t c . The 
E a g e r t o n s moved 
f o r 
a summary judgment as w e l l , a r g u i n g as a d e f e n s e 
a m a t e r i a l a l t e r a t i o n of t h e i r g u a r a n t y c o n t r a c t s . 
On May 
24, 2011, 
the t r i a l c o u r t , a p p a r e n t l y 
r e l y i n g 
on 
the bank's p r o 
r a t a t h e o r y , 
e n t e r e d 
a 
p a r t i a l 
summary judgment i n f a v o r of the bank and 
a g a i n s t 
the 
E a g e r t o n s 
i n 
the 
amount of 
$208,906.40. 
The 
t r i a l c o u r t c e r t i f i e d i t s judgment as f i n a l p u r s u a n t 
t o 
R u l e 
5 4 ( b ) , 
A l a . 
R. 
C i v . 
P., 
s p e c i f i c a l l y 
r e s e r v i n g j u r i s d i c t i o n t o d e t e r m i n e a t a l a t e r date 
the 
a p p r o p r i a t e amount of a t t o r n e y 
f e e s 
and 
c o s t s 
owed t o the bank, i f any, 
r e l a t i n g t o i t s c o l l e c t i o n 
e f f o r t s . The E a g e r t o n s 
a p p e a l . " 
99 So. 3d a t 301-03 ( f o o t n o t e s 
o m i t t e d ) . 
5 
1120394 
On 
a p p e a l , the E a g e r t o n s 
argued 
t h a t 
the 
Chapter 
11 
r e o r g a n i z a t i o n 
o f 
the 
debts 
o f 
Dotson 
10s, 
LLC, 
i n 
the 
b a n k r u p t c y c o u r t , i . e . , 
the c o n s o l i d a t i o n o f the o r i g i n a l l o a n 
w i t h 
the 
second 
l o a n , 
c r e a t e d 
a 
new 
i n d e b t e d n e s s 
not 
encompassed 
by 
t h e i r 
g u a r a n t y 
c o n t r a c t s . 
The 
E a g e r t o n s 
t h e r e f o r e argued t h a t the c r e a t i o n of t h i s new 
i n d e b t e d n e s s , 
w i t h o u t t h e i r knowledge or c o n s e n t , o p e r a t e d t o d i s c h a r g e them 
from any f u r t h e r o b l i g a t i o n s under t h e i r g u a r a n t y 
c o n t r a c t s . 
The bank, on the o t h e r hand, argued, among o t h e r t h i n g s , t h a t 
the c o n s o l i d a t e d l o a n was a r e p l a c e m e n t note c o n t e m p l a t e d by 
the g u a r a n t y c o n t r a c t s and t h a t the E a g e r t o n s had w a i v e d the 
m a t e r i a l - m o d i f i c a t i o n d e f e n s e . 
T h i s C o u r t , i n E a g e r t o n I , c o n c l u d e d t h a t the E a g e r t o n s ' 
g u a r a n t y 
c o n t r a c t s 
were 
unambiguous; 
t h a t 
b a s e d 
on 
the 
language 
i n the g u a r a n t y 
c o n t r a c t s 
the E a g e r t o n s 
d i d not 
i n t e n d 
t o 
g u a r a n t e e 
any 
i n d e b t e d n e s s 
o t h e r 
than 
t h a t 
i n d e b t e d n e s s 
a r i s i n g 
out 
o f 
the 
o r i g i n a l 
l o a n 
and 
any 
e x t e n s i o n s , 
r e n e w a l s , or r e p l a c e m e n t s t h e r e o f ; and t h a t , once 
the E a g e r t o n s ' 
o r i g i n a l 
l o a n was 
m o d i f i e d p u r s u a n t 
t o the 
Chapter 11 r e o r g a n i z a t i o n o f Dotson 10s, the E a g e r t o n s were a t 
6 
1120394 
t h a t p o i n t d i s c h a r g e d from any f u r t h e r o b l i g a t i o n s under t h e i r 
g u a r a n t y c o n t r a c t s : 
a 
of 
" I n sum, 
Dotson 10s 
and 
the bank 
n e g o t i a t e d 
new l o a n t h a t not o n l y changed the l e g a l 
i d e n t i t y 
the o r i g i n a l l o a n , but a l s o a l t e r e d the 
E a g e r t o n s ' 
o r i g i n a l o b l i g a t i o n under t h e i r g u a r a n t y c o n t r a c t s . 
The 
E a g e r t o n s 
d i d 
not 
c o n s e n t 
t o 
g u a r a n t e e 
the 
 
second l o a n , w h i c h was 
combined w i t h the 
o r i g i n a l 
 
l o a n 
t o 
c r e a t e 
the 
c o n s o l i d a t e d 
l o a n - - a 
new 
i n d e b t e d n e s s . 
These 
a b o v e - s t a t e d 
a l t e r a t i o n s 
o c c u r r e d 
w i t h o u t 
the 
E a g e r t o n s ' 
knowledge 
and 
 
c o n s e n t . 
A c c o r d i n g l y , the E a g e r t o n s cannot be h e l d  
p e r s o n a l l y l i a b l e f o r a l o a n t h a t no l o n g e r 
e x i s t s ,  
i . e . , 
the 
o r i g i n a l 
l o a n , 
nor 
can 
t h e y 
be 
h e l d 
 
p e r s o n a l l y 
l i a b l e 
f o r 
a 
l o a n 
t h a t 
i s 
not 
an 
 
e x t e n s i o n , 
r e n e w a l , 
or r e p l a c e m e n t of the 
o r i g i n a l 
 
l o a n , as d e f i n e d by t h e i r g u a r a n t y c o n t r a c t s . 
"'Based 
on 
the 
f o r e g o i n g , 
the 
t r i a l 
c o u r t ' s 
summary judgment a g a i n s t the E a g e r t o n s i n f a v o r 
of  
the bank i s r e v e r s e d , 
and the cause i s remanded t o  
the t r i a l c o u r t f o r p r o c e e d i n g s 
c o n s i s t e n t w i t h t h i s 
99 So. 3d 
a t 310 
(emphasis added). 
A f t e r t h i s C o u r t remanded the cause t o the 
t r i a l 
c o u r t , 
the E a g e r t o n s f i l e d a renewed m o t i o n f o r a summary judgment. 
The 
bank responded i n o p p o s i t i o n and moved f o r a d d i t i o n a l 
d i s c o v e r y t o r e s o l v e an a l l e g e d f a c t u a l d i s p u t e r e g a r d i n g 
the 
E a g e r t o n s ' knowledge of and consent t o Dotson 10s's b a n k r u p t c y 
p l a n . 
The 
t r i a l 
c o u r t 
a l l o w e d 
a d d i t i o n a l d i s c o v e r y 
and 
t h e r e a f t e r c o n d u c t e d an e v i d e n t i a r y h e a r i n g . 
On December 5, 
7 
1120394 
2012, t h e t r i a l c o u r t e n t e r e d on o r d e r d e n y i n g t h e E a g e r t o n s ' 
m o t i o n f o r 
a summary judgment. The E a g e r t o n s t h e r e a f t e r f i l e d 
t h i s p e t i t i o n f o r 
a w r i t o f mandamus. 
The d i s p o s i t i v e i s s u e 
f o r our r e v i e w i s 
whether t h e t r i a l c o u r t f o l l o w e d t h e mandate 
of t h i s C o u r t i n E a g e r t o n I . 
I I . 
S t a n d a r d o f Review and A p p l i c a b l e Law 
"'Mandamus i s 
a d r a s t i c and e x t r a o r d i n a r y w r i t , 
to be i s s u e d o n l y where t h e r e i s (1) a c l e a r 
l e g a l 
r i g h t i n 
t h e p e t i t i o n e r t o t h e o r d e r s o u g h t ; (2) 
an 
i m p e r a t i v e 
d u t y 
upon t h e r e s p o n d e n t t o 
p e r f o r m , 
accompanied by a r e f u s a l t o do s o ; (3) t h e l a c k o f 
a n o t h e r 
adequate remedy; and (4) p r o p e r l y 
i n v o k e d 
j u r i s d i c t i o n o f t h e c o u r t . ' Ex p a r t e Integon Corp., 
672 So. 2d 497, 499 ( A l a . 
1995)." 
Ex p a r t e P e r f e c t i o n S i d i n g , I n c . , 
882 So. 2d 307, 309-10 
( A l a . 
2003). 
"The q u e s t i o n o f whether a t r i a l c o u r t a f t e r remand has 
c o r r e c t l y 
i n t e r p r e t e d and 
a p p l i e d an 
a p p e l l a t e 
c o u r t ' s 
d e c i s i o n i s p r o p e r l y r e v i e w a b l e by a p e t i t i o n f o r 
a w r i t o f 
mandamus." Ex p a r t e U n i t e d S t a t e s F i d . & Guar. Co., 585 So. 
2d 
922, 924 ( A l a . 
1991). 
In Ex p a r t e Alabama Power Co., 431 So. 2d 151 
( A l a . 
1983), t h i s C o u r t s t a t e d : 
" ' I t i s 
t h e d u t y o f t h e t r i a l 
c o u r t , 
on 
remand, t o comply 
s t r i c t l y 
w i t h t h e 
mandate o f 
t h e a p p e l l a t e c o u r t a c c o r d i n g t o 
8 
1120394 
i t s t r u e i n t e n t and meaning, as d e t e r m i n e d 
by the d i r e c t i o n s g i v e n by t h e r e v i e w i n g 
c o u r t . No judgment o t h e r than t h a t d i r e c t e d 
or p e r m i t t e d by the r e v i e w i n g c o u r t may 
be 
e n t e r e d 
The a p p e l l a t e c o u r t ' s d e c i s i o n 
i s 
f i n a l 
as 
t o 
a l l m a t t e r s 
b e f o r e i t , 
becomes the law of the case, and must be 
e x e c u t e d a c c o r d i n g t o the mandate, w i t h o u t 
g r a n t i n g a new 
t r i a l or t a k i n g 
a d d i t i o n a l 
e v i d e n c e 
'" 
431 So. 2d a t 155 
( q u o t i n g 5 Am. 
J u r . 2d A p p e a l & E r r o r § 991 
(1962)). 
I I I . D i s c u s s i o n 
The E a g e r t o n s emphasize i n t h e i r p e t i t i o n f o r a w r i t of 
mandamus t h a t the f a c t s t h a t were b e f o r e t h i s C o u r t on a p p e a l 
i n 
E a g e r t o n 
I were 
l a r g e l y u n d i s p u t e d and 
t h a t t h e y were 
c l e a r l y e n t i t l e d t o a summary judgment based upon t h i s C o u r t ' s 
mandate i n E a g e r t o n I . We agree. 
T h i s case was s u b m i t t e d t o 
the 
t r i a l 
c o u r t on c r o s s - m o t i o n s f o r summary judgment. 
Our 
r e v e r s a l of the t r i a l c o u r t ' s summary judgment i n f a v o r of the 
bank i n E a g e r t o n I was 
not based upon a d i s p u t e d i s s u e 
of 
m a t e r i a l f a c t , i . e . , 
whether the E a g e r t o n s had n o t i c e o f , or 
c o n s e n t e d t o , the m o d i f i c a t i o n of t h e i r g u a r a n t y 
c o n t r a c t s . 
See R u l e 5 6 ( c ) ( c ) , A l a . R. C i v . P. 
The E a g e r t o n s p l e a d e d the 
m a t e r i a l - m o d i f i c a t i o n d e f e n s e 
as an 
a f f i r m a t i v e d e f e n s e i n 
t h e i r 
answer 
t o 
the 
o r i g i n a l 
c o m p l a i n t ; 
t h e y 
r a i s e d 
t h e 
9 
1120394 
m a t e r i a l - m o d i f i c a t i o n d e f e n s e i n t h e i r motion f o r a summary 
judgment; and t h e y r a i s e d the m a t e r i a l - m o d i f i c a t i o n d e f e n s e on 
a p p e a l . 
I n none of the p r o c e e d i n g s below d i d the bank e v e r 
d i s p u t e 
t h a t the E a g e r t o n s d i d not know of or consent 
t o 
Dotson 10s's b a n k r u p t c y p l a n , which m o d i f i e d the E a g e r t o n s ' 
g u a r a n t y c o n t r a c t s . 
C l e a r l y , the E a g e r t o n s c o u l d not have 
c o n s e n t e d t o the m o d i f i c a t i o n o f t h e i r g u a r a n t y c o n t r a c t s when 
t h e y were not p r e s e n t a t the c o n f i r m a t i o n h e a r i n g d u r i n g which 
time 
John 
and 
E l i z a b e t h 
Dotson 
and 
bank 
r e p r e s e n t a t i v e s 
n e g o t i a t e d a d d i t i o n a l terms t h a t were f a v o r a b l e t o the bank. 
Our r e s o l u t i o n of t h i s case i n E a g e r t o n I was based upon the 
i n t e r p r e t a t i o n o f the E a g e r t o n s ' g u a r a n t y c o n t r a c t s , w h i c h , we 
h e l d , as a m a t t e r of law, were unambiguous. See 38A C.J.S. 
Guaranty § 97, a t 704 
(2008)("A g u a r a n t o r i s d i s c h a r g e d i f , 
w i t h o u t 
h i s or her 
c o n s e n t , 
t h e 
c o n t r a c t 
of g u a r a n t y i s 
m a t e r i a l l y a l t e r e d . " ) . 
In E a g e r t o n I , t h i s C o u r t s p e c i f i c a l l y 
h e l d t h a t " a l t h o u g h the E a g e r t o n s may have w a i v e d any d e f e n s e s 
t h e y may have had r e g a r d i n g the o r i g i n a l i n d e b t e d n e s s , the 
E a g e r t o n s 
d i d 
not 
waive 
any 
d e f e n s e s 
r e g a r d i n g 
the 
c o n s o l i d a t e d 
l o a n , which was 
c r e a t e d by 
t h e bank and 
the 
Dotsons w i t h o u t the E a g e r t o n s ' c o n s e n t . " 
99 So. 3d a t 310. 
10 
1120394 
IV. 
C o n c l u s i o n 
A l t h o u g h 
t h i s 
C o u r t , 
i n E a g e r t o n I , d i d not 
e x p r e s s l y 
d i r e c t 
the 
e n t r y 
of 
a summary judgment 
i n 
f a v o r 
of 
the 
E a g e r t o n s , we 
n o n e t h e l e s s 
r e v e r s e d 
the summary judgment i n 
f a v o r of the bank a f t e r c o n c l u d i n g t h a t the E a g e r t o n s had been  
d i s c h a r g e d 
from any 
f u r t h e r 
l i a b i l i t y under t h e i r 
g u a r a n t y  
c o n t r a c t s . 
In o t h e r words, the E a g e r t o n s were e n t i t l e d t o a 
summary judgment. 
T h i s C o u r t ' s o p i n i o n i n E a g e r t o n I was 
an 
a d j u d i c a t i o n on the m e r i t s , and i t 
became the law of the case. 
A c c o r d i n g l y , 
the 
t r i a l 
c o u r t , 
on 
remand, 
was 
w i t h o u t 
j u r i s d i c t i o n 
t o 
conduct 
an 
e v i d e n t i a r y 
h e a r i n g 
t o 
a l l o w 
a d d i t i o n a l e v i d e n c e on 
an u n d i s p u t e d 
m a t e r i a l 
f a c t . 
See 
Ex 
 
p a r t e Alabama Power Co., s u p r a ( h o l d i n g t h a t when an a p p e l l a t e 
c o u r t ' s mandate does not i n c l u d e language e x p r e s s l y mandating 
a new 
t r i a l 
o r , 
i n t h i s 
case, 
an 
e v i d e n t i a r y h e a r i n g , 
the 
t r i a l c o u r t must e n t e r a judgment as d i r e c t e d by the mandate). 
See 
a l s o 
Ex 
p a r t e 
Queen, 
959 
So. 
2d 
620, 
621 
( A l a . 
2 0 0 6 ) ( " [ A ] f t e r a case i s remanded, the 
t r i a l c o u r t may 
e n t e r 
' " ' [ n ] o judgment o t h e r than t h a t d i r e c t e d or p e r m i t t e d by 
the 
r e v i e w i n g c o u r t 
The a p p e l l a t e c o u r t ' s d e c i s i o n i s f i n a l as 
t o a l l m a t t e r s b e f o r e 
i t , 
becomes the 
law of the case, 
and 
11 
1120394 
must be e x e c u t e d a c c o r d i n g t o 
t h e 
mandate, w i t h o u t g r a n t i n g a 
new 
t r i a l 
o r t a k i n g 
a d d i t i o n a l 
e v i d e n c e . ' " ' 
[(Ex p a r t e  
Edwards, 727 So. 2d 792,] 794 [ ( A l a . 1998)] ( q u o t i n g Ex p a r t e  
Alabama Power Co., 431 So. 2d 151 ( A l a . 1983), q u o t i n g i n 
t u r n 
5 Am. J u r . 
2d A p p e a l & E r r o r § 991 ( 1 9 6 2 ) ) . " 
A c c o r d i n g l y , 
t h e 
E a g e r t o n s a r e e n t i t l e d t o 
mandamus 
r e l i e f . 
For t h e f o r e g o i n g r e a s o n s , we g r a n t t h e p e t i t i o n f o r t h e 
w r i t o f mandamus and d i r e c t t h e t r i a l 
c o u r t t o v a c a t e i t s 
December 5, 2012, o r d e r d e n y i n g t h e E a g e r t o n s ' motion f o r 
a 
summary judgment and t o e n t e r a judgment i n f a v o r o f t h e 
E a g e r t o n s 
c o n s i s t e n t w i t h 
t h i s 
C o u r t ' s 
mandate 
i n b o t h 
E a g e r t o n I and t h i s o p i n i o n . 
PETITION GRANTED; WRIT ISSUED. 
Moore, C.J., 
and S t u a r t , P a r k e r , Murdock, Shaw, Main, 
Wise, and B r y a n , J J . , concur. 
12