KAUFMANN & ASSOCIATES, INC. v. Davis

908 So. 2d 246, 2004 WL 1079990
CourtCourt of Civil Appeals of Alabama
DecidedJuly 30, 2004
Docket2030206
StatusPublished
Cited by4 cases

This text of 908 So. 2d 246 (KAUFMANN & ASSOCIATES, INC. v. Davis) 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
KAUFMANN & ASSOCIATES, INC. v. Davis, 908 So. 2d 246, 2004 WL 1079990 (Ala. Ct. App. 2004).

Opinion

908 So.2d 246 (2004)

KAUFMANN & ASSOCIATES, INC.
v.
Terry G. DAVIS and Blue Dot Promotions, Inc.

2030206.

Court of Civil Appeals of Alabama.

May 14, 2004.
Rehearing and Opinion Dissenting from Overruling of Application for Rehearing July 30, 2004.
Certiorari Denied March 25, 2005.

*248 K. Donald Simms, Andrew P. Anderson, and Joseph E.B. Stewart of Austill, Lewis & Simms, P.C., Birmingham, for appellant.

Keith Jackson and Robert R. Riley, Jr., of Riley & Jackson, P.C., Birmingham, for appellees.

Alabama Supreme Court 1031697.

PITTMAN, Judge.

This appeal arises from bitterly contested litigation between a commissioned salesperson and his former employer stemming from the salesperson's launch of a competing company.

On April 10, 2001, Kaufmann & Associates, Inc. ("Kaufmann"), filed an action in the Jefferson Circuit Court, Birmingham Division, seeking a temporary restraining order ("TRO"), a preliminary injunction, and an "order of replevin" directing Terry G. Davis, who was at that time a Kaufmann employee, and Blue Dot Promotions, Inc. ("Blue Dot"), a corporation Davis had founded,[1] to return a portable laptop computer that Davis had used in the scope of his employment with Kaufmann. That action was assigned case number CV-01-2198. A TRO was issued and the computer was seized later that day. The trial court later held a hearing on Kaufmann's requests for injunctive relief and entered an order on the case action summary sheet stating that its TRO would be "continued in effect as a Preliminary Injunction."

In late May 2001, Davis and Blue Dot filed motions to dissolve the preliminary injunction, and Davis asserted a counterclaim against Kaufmann under § 8-24-1 et seq., Ala.Code 1975, seeking payment of commissions allegedly due Davis that had not been paid by Kaufmann. Davis and Blue Dot demanded a trial by jury as to "all issues subject to jury trial." Kaufmann responded to that counterclaim by adding, among others, claims against Davis and Blue Dot seeking damages on theories of intentional interference with business relations and conversion of purchase orders. Kaufmann later asserted that with respect to Davis's counterclaim, it was entitled to a setoff of over $16,000 in commissions that Kaufmann claimed Davis had been overpaid during his employment, and Kaufmann also moved for an award of damages based upon alleged violations by Davis and Blue Dot of the TRO and the preliminary injunction.

The case was ultimately bifurcated: a jury was empaneled to hear all the claims asserted and all the issues raised by the parties except Kaufmann's request for an award of damages stemming from the alleged violations by Davis and Blue Dot of the TRO and the preliminary injunction. At the conclusion of the jury trial, the jury was instructed on, among other things, Kaufmann's conversion and intentional-interference claims, Davis's unpaid-commission claims, and permissible inferences the jury could make based upon a finding that any party had spoliated evidence. The jury rendered a verdict in favor of Davis and Blue Dot on Kaufmann's damages *249 claims, and it found in favor of Davis on his counterclaim, awarding damages in the amount of $15,197.40 (i.e., $7,598.70 in compensatory damages and $7,598.70 as enhanced damages permitted under § 8-24-3, Ala.Code 1975). The Jefferson Circuit Court, Birmingham Division, entered a judgment on the jury's verdict on December 20, 2002, and it denied Kaufmann's motion for damages for claimed violations of the TRO and the preliminary injunction. Kaufmann appealed to the Alabama Supreme Court from the trial court's judgment in case number CV-01-2198; that court transferred the appeal to this court. We are today affirming the trial court's judgment, without an opinion. Kaufmann & Assocs. v. Davis (No. 2020507, May 14, 2004), ___ So.2d ___ (Ala.Civ.App.2004) (table) ("Kaufmann I").

While Kaufmann I was pending on appeal, Kaufmann filed a second action against Davis and Blue Dot in the Bessemer Division of the Jefferson Circuit Court. In its complaint in that action, Kaufmann alleged that before Davis had founded Blue Dot in March 2001, Davis had, by suppressing material facts, fraudulently induced Kaufmann to rescind a noncompetition agreement that had previously been in force between the parties; that Davis and Blue Dot had acted in contravention of the noncompetition agreement so as to warrant damages, an injunction, specific performance, and restitution; that Davis and Blue Dot had spoliated material evidence and prejudiced Kaufmann's case in case number CV-01-2198; and that Davis and Blue Dot should account for and disgorge excess commissions allegedly paid to them by Kaufmann. Davis and Blue Dot, citing the former litigation between the parties and relying upon portions of the court file in that case, moved for a judgment dismissing Kaufmann's second action on the basis of the doctrine of res judicata and collateral estoppel or, in the alternative, for an order transferring the cause to the Birmingham Division. The Bessemer Division transferred the cause to the Birmingham Division (where it was assigned case number CV-03-4712), and that court set a hearing to consider the aspects of the defendants' motion seeking a dismissal.

After the cause had been transferred, Kaufmann filed a response in opposition to the motion filed by Davis and Blue Dot; Kaufmann contended, among other things, that its claims were not barred by the doctrines of res judicata or collateral estoppel, that Davis and Blue Dot were judicially estopped from contending that Kaufmann's fraud claims could not proceed, and that jurisdiction and venue had been exclusively proper in the Bessemer Division. The Birmingham Division entered a judgment in case number CV-03-4712 stating that it had "engaged in exhaustive review" of the claims in the action and had compared them to the claims and issues presented in the first action; it concluded that Kaufmann's claims were barred by the doctrines of res judicata and collateral estoppel. That judgment prompted Kaufmann to again appeal. The Supreme Court transferred Kaufmann's appeal in the second action to this court pursuant to § 12-2-7(6), Ala.Code 1975.

Although the parties dispute the applicable standard of review, we note that under Rule 12(b), Ala. R. Civ. P., where a party has moved for a judgment of dismissal for failure to state a claim and where materials other than the complaint have been submitted to and not expressly excluded by the trial court, the motion to dismiss is to be treated as one seeking a summary judgment pursuant to Rule 56, Ala. R. Civ. P. In this case, the trial court expressly considered the claims asserted in the first action in determining that the second action was due to be dismissed; by *250 doing so, that court considered materials that were not judicially noticeable by that court. See Mitchell v. Golden Poultry, Inc., 729 So.2d 873, 874 (Ala.Civ.App.1999) (stating that because the trial court "had disposed of [a] prior case and it had been appealed to this court before" a second case was filed, the trial court "could not have taken judicial notice of the prior case"). We therefore treat the judgment under review as a summary judgment, as to which we note the following pertinent principles of review:

"Under Rule 56(c)(3), Ala. R. Civ. P., a trial court is authorized to enter a summary judgment when there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bedell v. Quality Casualty Insurance Co.
958 So. 2d 344 (Court of Civil Appeals of Alabama, 2006)
Ex Parte Johnston-Tombigbee Furniture Mfg.
937 So. 2d 1035 (Supreme Court of Alabama, 2005)
JOHNSTON-TOMBIGBEE FURNITURE MFG. v. Berry
937 So. 2d 1029 (Court of Civil Appeals of Alabama, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
908 So. 2d 246, 2004 WL 1079990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaufmann-associates-inc-v-davis-alacivapp-2004.