B & G, L.L.C. v. AmSouth Bank, N.A.

716 So. 2d 1263, 1998 Ala. Civ. App. LEXIS 299, 1998 WL 178792
CourtCourt of Civil Appeals of Alabama
DecidedApril 17, 1998
Docket2970031
StatusPublished

This text of 716 So. 2d 1263 (B & G, L.L.C. v. AmSouth Bank, N.A.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B & G, L.L.C. v. AmSouth Bank, N.A., 716 So. 2d 1263, 1998 Ala. Civ. App. LEXIS 299, 1998 WL 178792 (Ala. Ct. App. 1998).

Opinion

HOLMES, Retired Appellate Judge.

B & G, L.L.C., appeals from a summary judgment entered in favor of AmSouth Bank, N.A., a national banking association (Am-South), and Sue Anne Cole.

The facts of this case are undisputed, and they have been summarized by the trial court as follows:

“1. This action was brought to determine the rights of AmSouth and Cole, in and to a common wall which serves as the fourth wall of a warehouse owned by Cole (the ‘warehouse’), upon which AmSouth holds a mortgage and which serves as a wall for an adjacent building formerly owned by C & J Company, Inc. (‘C & J Co.’), and now owned by B & G, L.L.C. (‘B & G’). The warehouse originally was constructed in 1980 for Oxford Furniture Galleries, Inc. (‘Oxford Furniture Galleries’), pursuant to industrial development bond financing, for which AmSouth was the trustee and held a mortgage. The warehouse is loeated at lots 1, 2, 3, 4, and 5 of Block Eighty-one, City of Birmingham.
“2. Pursuant to the terms of the bond indenture, AmSouth foreclosed its interest in the warehouse.
“3. AmSouth then sold the warehouse to William M. Cole and Sue Anne Cole. Pursuant to the terms of the purchase agreement, AmSouth agreed to bring this declaratory judgment action to establish the relative rights of the parties hereto with respect to the wall, defined below.
“4. AmSouth financed the purchase of the warehouse by the Coles and currently holds a mortgage upon it, which was recorded on October 1, 1993, as Instrument 9313/1654 in the Probate Court of Jefferson County.
“5. C & J Co. was incorporated in or around 1950 by Bonnie Chew and Richard L. Jeffers, who were the two original shareholders. C & J Co. was the holding company for various real estate interests of Bonnie Chew.
“6. Oxford Furniture Galleries also was incorporated in or around 1950 by Bonnie Chew and Richard Jeffers. Bonnie Chew eventually purchased Jeffers’s interest in both corporations.
“7. In 1980, when the warehouse was constructed, Bonnie Chew was the president of both C & J Co. and Oxford Furniture Galleries, and both corporations ■yere closely held and had the same shareholders.
“8. After the construction of the warehouse in 1980, Bonnie Chew passed away in 1985, and his interests in C & J Co. and Oxford Furniture Galleries were passed through his estate to his son, Lanier Chew.
“9. At all pertinent times, C & J Co. and Oxford Furniture Galleries were both closely held corporations with the same officers and directors.
“10. C & J Co. owned the real estate ... [located on] lots 6, 7, 11, 12, 13, 14, 15, 16.... Oxford Furniture Galleries leased this property from C & J Co.
“11. Oxford Furniture Galleries also leased the warehouse from the Industrial Development Board of Birmingham, and the warehouse was located on lots 1, 2, 3, 4 and 5 of Block Eighty-one, Birmingham.
“12. Oxford Furniture Galleries was the company through which the Chew family operated its furniture business.
[1265]*1265“13. The warehouse was constructed to serve as a warehouse for Oxford Furniture Galleries.
“14. C & J Co. owned lot 5, which was conveyed to the Industrial Development Board in consideration for $30,000 in order that a portion of the warehouse might be constructed upon it.
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“16. Said proceeds were utilized to erect a portion of the fourth wall of the warehouse upon a then existing brick wall of the adjacent building owned by C & J Co., which building is located upon lots 6 and 7 of Block Eighty-one, City of Birmingham. (The common wall between the two buildings, together .with the portion of the warehouse wall which is contiguous with the common wall, shall be referred to as the “wall.”)
“17. Since the brick wall of the C & J Co. building was not as wide, or as tall, as the warehouse, a portion of the warehouse was erected on lot 6 on top of the brick wall and adjacent to the brick wall.
“18. Although a portion of the warehouse was constructed on lot 6, Lanier Chew, president of C & J Co., admitted that ‘it’s treated as if it belongs to lot 5.’
“19. The integrity of the warehouse would be damaged if any portion of the wall is removed.
“20. The wall was utilized as the fourth wall of the warehouse to save money. This would inure to the benefit of Oxford Furniture Galleries and to its shareholder, who also was the shareholder of C & J Co.
“21. The wall was utilized by both C & J Co. and by Oxford Furniture Galleries. In fact, Lanier Chew acknowledged that the wall was treated as a ‘party wall’ by C & JCo.
“22. There is a doorway in the concrete slab portion of the wall which is located on lot 6 (the ‘doorway’).
“23. Prior to taking title to the property on June 8, 1995, B & G had notice of this litigation through the Lis Pendens Notice recorded at Real Volume 9506, page 0521, Probate Court of Jefferson County on May 24,1995.”

As noted previously, AmSouth filed a complaint against C & J Co. and the Coles, requesting that the trial court declare its rights in the common wall. During the pen-dency of the action, C & J Co. sold its interest in the adjacent building to B & G. B & G had notice of the litigation. Therefore, AmSouth amended its complaint to add B'& G as a party. AmSouth also amended its complaint to" realign the Coles as plaintiffs since their interests were aligned with Am-South. We would note that during the preliminary stages of the lawsuit, William M. Cole died. However, his estate was not substituted as a party.

In April 1997 AmSouth and Sue Anne Cole filed a motion for a summary judgment, relying primarily on Nabers v. Wise, 241 Ala. 612, 4 So.2d 149 (1941). B & G responded with its motion for a summary judgment. Thereafter, on June 16, 1997, the trial court entered an order, granting AmSouth and Cole’s motion. ,

In essence, the trial court, in applying the law set forth in Nabers, determined that the wall was a party wall and that B & G had no better interests in the wall than did C & J Co. The trial court further determined that AmSouth, Cole, and their assignees were entitled to utilize the wall for the support of the warehouse and that they were further entitled to use the doorway that was located on a portion of the wall “as long as the doorway is adequate to serve as support to the warehouse.” B & G filed a post-judgment motion, which the trial court denied.

B & G appeals. This case is before this court pursuant to Ala.Code 1975, § 12-2-7(6).

At the outset we note that Rule 56(c), Ala. R. Civ. P., provides that a summary judgment is appropriate in situations where no genuine issue of any material fact exists and the movant is entitled to a judgment as a matter of law.

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Related

Porter v. Fisher
636 So. 2d 682 (Court of Civil Appeals of Alabama, 1994)
Nabers v. Wise
4 So. 2d 149 (Supreme Court of Alabama, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
716 So. 2d 1263, 1998 Ala. Civ. App. LEXIS 299, 1998 WL 178792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-g-llc-v-amsouth-bank-na-alacivapp-1998.