Kenneth Laddie, Rebekah Laddie, Phillip Dial, and Rhonda Dial v. Alaran Construction, Inc.

Supreme Court of Alabama·Decided May 15, 2026·No. SC-2025-0878·Published

Opinion

Rel: May 15, 2026

Notice: This opinion is subject to formal revision before publication in the advance sheets of Southern Reporter. Readers are requested to notify the Reporter of Decisions, Alabama Appellate Courts, 300 Dexter Avenue, Montgomery, Alabama 36104-3741 ((334) 229-0650), of any typographical or other errors, in order that corrections may be made before the opinion is printed in Southern Reporter.

SUPREME COURT OF ALABAMA OCTOBER TERM, 2025-2026

SC-2025-0878

Kenneth Laddie, Rebekah Laddie, Phillip Dial, and Rhonda Dial v.

Alaran Construction, Inc.

Appeal from Shelby Circuit Court (CV-21-900689)

STEWART, Chief Justice.

Kenneth Laddie, Rebekah Laddie, Phillip Dial, and Rhonda Dial ("the defendants") appeal from an order entered by the Shelby Circuit Court ("the trial court") dismissing their counterclaims against Alaran

Construction, Inc. For the following reasons, that order is reversed, and the cause is remanded for further proceedings.

Facts and Procedural History In October 2020, the Laddies entered into a contract with Alaran for the construction of a house. Under the terms of the contract, the parties agreed that the Laddies would pay Alaran twice a month for the work performed. On November 12, 2021, before construction was complete, Alaran filed a complaint in the trial court, alleging that the Laddies had breached the contract by failing to make a scheduled payment. Alaran later amended the complaint to add the Dials as necessary defendants to the action after discovering that they were guarantors on the Laddies' construction loan. See Rule 19, Ala. R. Civ. P.

On March 5, 2022, the defendants filed an answer to the complaint and asserted counterclaims alleging negligence, breach of contract, fraud, and conversion. The defendants later asserted a counterclaim alleging slander of title after Alaran filed a lien on the property on which the house was being constructed. On March 10, 2022, Alaran filed a motion to dismiss the defendants' counterclaims, pursuant to Rule 12(b)(6), Ala. R. Civ. P., arguing that they were not ripe because construction of the

house was never completed. The trial court never entered a ruling on that motion.

On April 22, 2024, Alaran filed a renewed motion to dismiss, raising the same ripeness argument as before. Additionally, as to the slander-of- title counterclaim, Alaran argued that dismissal was proper because, it said, it was legally required to file a lien to preserve its right to recovery. On June 13, 2024, the defendants filed a response to Alaran's motion. The trial court entered an order denying Alaran's renewed motion to dismiss on June 21, 2024.

Between July 8, 2024, and August 15, 2024, Alaran filed three additional renewed motions to dismiss. On April 22, 2025, the trial court entered an order setting a hearing on May 27, 2025, to address "[a]ll pending motions." On May 22, 2025, the defendants filed a response to Alaran's most recent renewed motions to dismiss, reasserting their opposition to Alaran's arguments for dismissal.

According to the record, neither the defendants nor their counsel appeared at the hearing on May 27, 2025. After the hearing concluded, counsel for the defendants notified the trial court by telephone that they

had failed to appear because of a "calendaring mistake." Nevertheless, on May 28, 2025, the trial court issued the following order:

"Due to Defendants' failure to timely respond to the Plaintiff's Motion to Dismiss Defendants' Five Counterclaims filed by Plaintiff on July 8, 2024 and Defendants' failure to appear and present opposition at the motion hearing on May 27, 2025, Plaintiff's Motion to Dismiss Defendants' Five Counterclaims is hereby GRANTED. Defendants'

counterclaims of Negligence, Breach of Contract, Fraud, Conversion, and Slander of Title are hereby DENIED."

(Capitalization in original.) On June 4, 2025, Alaran filed a motion to dismiss its own claims, and the trial court entered a judgment the same day dismissing the case with prejudice.

On July 4, 2025, the defendants filed a motion to vacate the trial court's order dismissing their counterclaims, arguing that the dismissal was not warranted under Rule 41(b), Ala. R. Civ. P. Specifically, the defendants explained that their failure to appear at the hearing did not constitute "willful default or contumacious conduct" but instead, was the result of an "inadvertent scheduling error" by their counsel. Additionally, the defendants argued that their response to Alaran's renewed motions to dismiss on May 22, 2025, was timely. The defendants' motion to vacate

was denied by operation of law on October 2, 2025. See Rule 59.1, Ala. R. Civ. P. The defendants timely appealed.1 Standard of Review

" 'Ala. R. Civ. P. 41(b) provides for the involuntary dismissal of an action upon "failure of the plaintiff to prosecute or to comply with [the Alabama Rules of Civil Procedure] or any order of [the] court." Although dismissal for failure to comply with a court order is a "harsh sanction," it is warranted where there is a "clear record of delay, willful default or contumacious conduct by the plaintiff." Selby v. Money, 403 So. 2d 218, 220 (Ala. 1981). Because the trial judge is in the best position to assess the conduct of the plaintiff and the degree of noncompliance, his decision to grant a motion to dismiss for failure to prosecute will be accorded considerable weight by a reviewing court.

Van Bronkhorst v. Safeco Corp., 529 F.2d 943, 947 (9th Cir. 1976); Von Poppenheim v. Portland Boxing & Wrestling Comm'n, 442 F.2d 1047, 1051 (9th Cir. 1971), cert. denied, 404 U.S. 1039, 92 S.

Ct. 715, 30 L. Ed. 2d 731 (1972). Therefore we will reverse that decision only upon a showing of abuse of discretion. Selby, [403 So. 2d] at 220; Smith v.

Wilcox County Bd. of Educ., 365 So. 2d 659 (Ala.

1978).'

1According to the record, the defendants filed their notice of appeal

on November 14, 2025, which was one day after the filing deadline. See Rule 4, Ala. R. App. P. Pursuant to Rule 57(k), Ala. R. App. P., counsel for the defendants attached a "Declaration of Electronic Hardship" to the notice of appeal, in which he explained that he had missed the filing deadline due to technological difficulties with the e-filing system and that this Court should accept the filing as timely. This Court accepted the defendants' notice of appeal as timely filed as permitted by Rule 57(k).

"Jones v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 604 So.

2d 332, 341 (Ala. 1991)."

Curry v. Miller, 261 So. 3d 1175, 1178 (Ala. 2018).

Analysis

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Kenneth Laddie, Rebekah Laddie, Phillip Dial, and Rhonda Dial v. Alaran Construction, Inc., (Ala. 2026).

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