Justia Labor & Employment Law Opinion Summaries

South Alabama Brick Co., Inc., d/b/a Riley-Stuart Supply Co. ("SAB"), appealed a Circuit Court's judgment in the amount of approximately $12.6 million in favor of J. Gregory Carwie, as temporary conservator of Benito Perez, who suffered catastrophic injuries when he fell through a skylight in the roof of a warehouse owned and operated by SAB. The Supreme Court reversed and remanded, finding that the condition at issue here was a preexisting condition of SAB's facility. SAB hired an independent roofing contractor, Cooner Roofing, with previous experience repairing the roof of that facility, to make repairs determined by that contractor to be necessary and appropriate. Under the circumstances of this case, SAB was not legally responsible for warning Cooner Roofing's employees of the risks of working on that roof. Because of the Court's disposition of the issue of liability, it did not reach SAB's arguments relating to the damages awarded against it. View "South Alabama Brick Co., Inc. v. Carwie" on Justia Law

Rock Wool Manufacturing Company ("Rock Wool") petitioned the Alabama Supreme Court for a writ of mandamus to direct the Jefferson Circuit Court ("the circuit court") to vacate its order denying Rock Wool's motions to dismiss a complaint filed against it by Palmer and Jessie Cason, and to enter a new order dismissing the Casons' complaint. This matter started over Palmer Cason's work as a furnace operator for Rock Wool. A furnace exploded and he suffered injuries. At some point before the explosion, Rock Wool had caused certain safety equipment called "explosion doors" to be removed from the furnace Palmer was operating. The "explosion doors" had the capacity at least to mitigate injury to the operator in the event of an explosion. Rock Wool persuasively argued that the exclusive-remedy provisions of the Workers' Compensation Act applied here to bar the Casons' claims against it; thus, Rock Wool demonstrated a clear legal right to the relief sought. View "Ex parte Rock Wool Manufacturing Company." on Justia Law

In November 2010, Rodney Williams and Elmer Fleming were employed at KW Plastics Recycling Division, LLP (KWPRD). Williams was employed as a supervisor in the shipping department, and Elmer was training to become a shipping supervisor. KWPRD shipped recycled-resin pellets in tanker-trailers hauled by semi-tractors. Williams was killed and Fleming suffered permanent traumatic brain injury when the two men were run over by the tanker-trailer. Fleming, by and through his wife and guardian, and Williams’ family, appealed the grant of summary judgment in favor of Sanders Lead Company, Inc., Roy Baggett, and Donnie Glover on the plaintiffs' claims alleging that they "affirmatively undertook [a duty] to inspect for, identify and provide remedies to correct jobsite safety hazards" on KWPRD’s premises, and that the defendants negligently and wantonly performed the undertaken duty to inspect. After review, the Supreme Court found that defendants' summary-judgment motion failed to challenge the existence of evidence establishing the element of proximate causation as to the wrongful-inspection claims and, therefore, did not support the summary judgment, which was expressly grounded on the lack of evidence establishing the element of proximate causation as to the plaintiffs' wrongful-inspection claims. The Court reversed the summary judgment in favor of the defendants on the plaintiffs' wrongful-inspection claims in these consolidated appeals and remanded for further proceedings. View "Fleming v. Sanders Lead Company, Inc." on Justia Law

In 2006, plaintiff Robert Kyle Morris, a licensed insurance agent, was working for his father's independent insurance agency, the Morris Insurance Agency ("Morris Insurance"). At some point, Morris contacted one of the Farmers entities about becoming a Farmers agent. Morris testified that he initially became interested in working as a Farmers agent because Farmers had a policy whereby a Farmers agent could place insurance with a different company if a customer was not eligible for insurance issued by Farmers or if Farmers refused to underwrite a policy for the customer. He further testified that he had not been looking to disaffiliate himself from his father's insurance agency and that he had told a Farmers recruiter that he did not want to cut off the working relationship he had with his father. Morris also testified that, when he agreed to become a Farmers agent, he signed several different agreements; that nothing in any of those agreements or documents indicated that his relationship with his father's agency constituted a conflict of interest; that the documents given to him did not say anything contrary to what he had been told by any recruiter, or that any representations made to him by the agents of Farmers were false. Despite signing an agent agreement, and having been recruited, Morris' contract was ultimately terminated for conflict of interest. Morris sued Farmers, arguing that Farmers had fraudulently induced him to become a Farmers agent. The trial court ruled in Morris' favor, and Farmers appealed. The Supreme Court affirmed in part and reversed in part. The Court found Morris did not blindly rely on oral representations and ignore the terms of his contract. "The only information contrary to what Morris had been told was buried in a 200-page manual among dozens of other documents provided for training modules, and even longtime Farmers employees were not aware of the existence of the statement." Morris presented sufficient evidence of fraudulent inducement for the matter to be decided by the jury. Farmers' postjudgment motion was denied by operation of law, but the trial court did not make any findings regarding Farmers' request for a remittitur of the punitive-damages award. The Court remanded this case for the trial court to conduct a hearing on the punitive-damages award. View "Farmers Insurance Exchange v. Morris" on Justia Law

Federal Insurance Company appealed a circuit court order denying its motion to compel arbitration of the breach-of-contract claim asserted against it by Kert Reedstrom. In 2008, Reedstrom entered into a written employment agreement with Marshall-Jackson Mental Health Board, Inc., d/b/a Mountain Lakes Behavioral Healthcare ("MLBHC"), to begin serving as its executive director in Guntersville. During the course of Reedstrom's employment with MLBHC, MLBHC held an executive-liability, entity-liability, and employment-practices-liability policy issued by Federal Insurance that generally protected certain MLBHC officers and employees described as "insureds" in the policy from loss for actions committed in the course of their employment with MLBHC. It was undisputed that Reedstrom was an "insured" covered by the Federal Insurance policy. The Federal Insurance policy contained an arbitration provision. A separate endorsement to the Federal Insurance policy further highlighted the arbitration provision and explained that its effect was that any disagreement related to coverage would be resolved by arbitration and not in a court of law. In July 2010, MLBHC terminated Reedstrom's employment and, in December 2010, Reedstrom sued MLBHC alleging that his termination constituted a breach of his employment contract. MLBHC asserted various counterclaims against Reedstrom based on his alleged misconduct while serving as executive director. Thereafter, Reedstrom gave Federal Insurance notice of the claims asserted against him and requested coverage under the terms of the Federal Insurance policy. Federal Insurance ultimately denied his claim and refused to provide him with counsel to defend against MLBHC's claims. A jury returned a verdict awarding Reedstrom $150,000 on his claim against MLBHC and awarding MLBHC $60,000 on its claims against Reedstrom. Consistent with its previous denial of his request for coverage, Federal Insurance refused Reedstrom's request to satisfy the judgment entered against him. Reedstrom sued Federal Insurance, asserting one claim of breach of contract and seeking $72,000 in damages ($60,000 for the judgment entered against him and $12,000 for the attorney fees he incurred in defending those claims). The Supreme Court reversed and remanded, finding that the trial court did not articulate its rationale for denying the motion to compel arbitration. The denial was apparently based on the court's resolving at least one of the arbitrability issues raised by Reedstrom in his favor and against Federal Insurance. However, because the subject arbitration provision delegated to the arbitrators the authority to resolve such issues, the trial court erred by considering the waiver and nonsignatory issues raised by Reedstrom instead of granting the motion to compel arbitration and allowing the arbitrators to resolve those issues. View "Federal Insurance Company v. Reedstrom" on Justia Law

The Alabama Corrections Institution Finance Authority ("ACIFA") and its ex officio vice president Kim Thomas appealed a judgment entered on a jury verdict awarding $5 million in compensatory damages to Albert Wilson, Donald Simmons, Rufus Barnes, Bryan Gavins, Joseph Danzey, and a class of current and former nonexempt correctional officers employed by the Alabama Department of Corrections ("ADOC"). The correctional officers sued ADOC and its commissioner alleging ADOC was violating its own regulations and state law in the manner in which it: (1) compensated correctional officers for overtime; (2) restricted the way correctional officers were allowed to use earned leave; and (3) paid correctional officers the daily subsistence allowance provided by law. The Supreme Court reversed the judgment in favor of the correctional officers, finding that there was a lack of substantial evidence in support of the officers' claims against ACIFA and against Thomas as ex officio vice president of ACIFA. As such, defendants were entitled to a judgment as a matter of law. View "Alabama Corrections Institution Finance Authority v. Wilson et al." on Justia Law