Opinion ID: 1101570
Heading Depth: 2
Heading Rank: 2

Heading: Exceptions to State Immunity

Text: River Road argues that Lyons is not protected by State immunity because, it says, its action falls within the excepted actions that are not considered to be against the State for § 14 purposes. See Gunter v. Beasley, 414 So.2d 41, 48 (Ala.1982). Specifically, River Road alleges that the doctrine of State immunity does not preclude its claim against Lyons because, it argues, its action seeks a declaration of River Road's rights and seeks to compel Lyons to perform his legal duties. See Gunter, 414 So.2d at 48. River Road also alleges for the first time in its brief to this Court that Lyons's actions fall outside the bar of State immunity because, it says, he acted recklessly in distributing the soil-boring data report. [4] We briefly address each exception in turn.
State immunity does not bar [a]ctions brought under the Declaratory Judgments Act, [§ 6-6-22 et seq., Ala. Code 1975,] seeking construction of a statute and how it should be applied in a given situation. Aland v. Graham, 287 Ala. 226, 230, 250 So.2d 677, 679 (1971); Curry v. Woodstock Slag Corp., 242 Ala. 379, 381, 6 So.2d 479, 480-81 (1942) (an action seeking to construe the law and direct the parties to what is required of them under a given set of facts does not violate the doctrine of State immunity); § 6-6-222, Ala.Code 1975. River Road contends that by filing this action it is seeking to determine its rights relative to the statutory powers granted the port authority and its director in the applicable sections of Title 33, Code of Alabama 1975. See §§ 33-1-12 and -12.1. Lyons argues that River Road does not seek a declaration of rights under a statute and of how the statute should be applied, but instead seeks a declaration that the State should compensate River Road for its unforeseen expenses on the dredging project and an injunction to enforce that declaration. Lyons contends that River Road is attempting to characterize its claim as a declaratory-judgment action, when it is nothing more than an action for damages. We agree. In Curry, supra, this Court described an action seeking a declaratory judgment: Considering the true nature of a suit which is declaratory of controversial rights and seeks no other relief, but only prays for guidance both to complainant and the State officers trying to enforce the law so as to prevent them from making injurious mistakes through an honest interpretation of the law, and thereby control the individual conduct of the parties, albeit some of them may be acting for the State, it is our opinion that a suit between such parties for such relief alone does not violate section 14 of the Constitution. 242 Ala. at 381, 6 So.2d at 481. River Road is asking this Court to order the State to pay it $1,108,944 from the State treasury. As previously noted, no statute requires this payment. Moreover, River Road's argument that its claim falls within the ambit of the Declaratory Judgment Act because it seeks a determination as to the construction and application of the law as it applies to River Road's rights arising under a contract is unconvincing. No contract exists between the State and River Road to construe. River Road's action will not prevent a mistaken interpretation of the law because River Road has presented no law to interpret. See Curry, 242 Ala. at 381, 6 So.2d at 481. The cases cited by River Road also fail to support its proposition that its action seeks only a declaration of its rights. See, e.g., Snow v. Abernathy, 331 So.2d 626, 631 (Ala.1976) (determining the proper recipient of the decedent's State retirement benefits); Gunter, supra, 414 So.2d at 49 (addressing the constitutionality of House and Senate resolutions specifically requiring payment by the State of expenses incurred by a former lieutenant governor); Unzicker v. State, 346 So.2d 931 (Ala.1977) (allowing an action against State officials when the plaintiffs alleged that the State officers acted beyond their authority ).
River Road argues that the doctrine of State immunity does not bar its claim against Lyons because, it says, its action seeks to compel a State officer to perform a duty prescribed by law. In its brief to this Court, River Road contends that Alabama caselaw is clear that if a state agency or official purchases goods or services on behalf of a state agency pursuant to lawful authorization, then an action may be maintained to require payment for those goods or services. See Gunter, 414 So.2d at 47 (holding that the comptroller had a legal duty, as mandated by the Legislature, to make payments to a former lieutenant governor); Department of Indus. Relations v. West Boylston Mfg. Co., 253 Ala. 67, 42 So.2d 787 (1949) (holding that the State agency was required to distribute funds comprised of contributions by employees and employers and to perform its duties pursuant to the statute); State of Alabama Highway Dep't v. Milton Constr. Co., 586 So.2d 872 (Ala.1991); State Bd. of Admin. v. Roquemore, 218 Ala. 120, 117 So. 757 (1928). In Milton Construction, the State Highway Department contracted with Milton Construction, a private entity, to perform various highway construction projects. 586 So.2d at 873. The Highway Department withheld funds from Milton Construction based upon a disincentive clause in the contract, even though the disincentive clause had been declared void by this Court in Milton Construction Co. v. State Highway Department, 568 So.2d 784 (Ala. 1990). The Highway Department based its refusal to pay, in part, on the doctrine of State immunity. This Court disagreed and stated: Once the Highway Department has legally contracted under state law for goods or services and accepts such goods or services, the Highway Department also becomes legally obligated to pay for the goods or services accepted in accordance with the terms of the contract. It follows that this obligation is not subject to the doctrine of [State] immunity and is enforceable in the courts. 586 So.2d at 875 (emphasis added). Because the Highway Department had contracted with Milton Construction and had accepted its services, this Court held that the action was not barred by the doctrine of State immunity, because it is in the nature of an action to compel state officers to perform their legal duties. 586 So.2d at 875. In Roquemore, supra, the State Highway Department, acting through the State Board of Administration, contracted with the plaintiff for the purchase of hay. 218 Ala. at 122, 117 So. at 758. The Highway Department later refused to accept any further deliveries of hay and refused to pay for the hay it had already received. 218 Ala. at 122, 117 So. at 758. This Court acknowledged that the Highway Department was authorized by statute to purchase necessary materials and that the statute mandated payment for the materials from the State highway fund. 218 Ala. at 123, 117 So. at 759. This Court held that the action was not barred by the doctrine of State immunity because a clear legal duty existed on behalf of the Highway Department to pay for the hay it had already accepted under the contract. 218 Ala. at 123, 117 So. at 759. River Road incorrectly asserts that the facts in the present action are almost identical to the facts presented in Milton Construction and Roquemore. In Milton Construction and Roquemore, this Court addressed the statutory duties of the Highway Department as those duties related to the actions at issue in those cases, just as River Road cites the statutory authority allowing Lyons to enter into contracts with private entities on behalf of the port authority. Milton Construction, 586 So.2d at 875, Roquemore, 218 Ala. at 123, 117 So. at 759. However, the fundamental difference between the present action and Milton Construction and Roquemore is the existence in those cases of a contract to establish a clear legal duty on behalf of the State. Unlike Milton Construction and Roquemore, no contract exists between the port authority and River Road, a subcontractor of Radcliff, the prime contractor, to bind the State to make any payments to River Road. River Road has failed to provide authority for the proposition that an entity with no contract with the State and a statutory mandate providing for payment can sue the State for money damages. [5]
Actions against State officials in their individual capacities are not prohibited by the doctrine of State immunity where it is alleged that [the State officials]... acted fraudulently, in bad faith, beyond their authority or in a mistaken interpretation of law. Gunter, supra, 414 So.2d at 48. River Road argues for the first time on appeal that Lyons acted in such a manner as to constitute fraud, deceit, or bad faith when he supplied erroneous information regarding the soil composition of the dredge site to prospective bidders knowing the bidders would rely on that information. However, River Road alleges in its complaint only that the soil report prepared by Southern Earth Services, Inc., was misleading, that none of the parties had knowledge or warning of the rock content in the material to be dredged, and that Lyons had refused to compensate River Road for its unforeseen expenses in dredging the rock. Nothing in the complaint either indicates that Lyons's actions constitute fraud, deceit, or bad faith or that he is being sued in any capacity other than his official capacity. Lyons properly challenges River Road's failure to plead this theory in the trial court. We can affirm the trial court on any ground developed in, and supported by, the record. Ex parte Ramsay, 829 So.2d 146, 155 (Ala.2002). However, we would violate Lyons's rights to due process under the circumstances here presented if we were to affirm the trial court on the basis of a brand new theory never asserted in the trial court.