Mobile Investments, LLC, and The Broadway Group, LLC v. Corporate Pharmacy Services, Inc.

Supreme Court of Alabama·Decided August 21, 2026·No. SC-2025-0958·Published

Opinion

Rel: August 21, 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 SPECIAL TERM, 2026

SC-2025-0958

Mobile Investments, LLC, and The Broadway Group, LLC v.

Corporate Pharmacy Services, Inc.

Appeal from Etowah Circuit Court (CV-20-900608)

COOK, Justice.

A previous appeal involving the same parties arose out of a default judgment that was entered against the defendants Mobile Investments,

LLC, and The Broadway Group, LLC ("TBG"), by the Etowah Circuit Court as a sanction under Rule 37(b)(2)(C), Ala. R. Civ. P., after the defendants repeatedly failed to comply with multiple discovery requests and orders in a property dispute with Corporate Pharmacy Services, Inc. ("CPS"). Mobile Investments and TBG appealed that decision to our Court, and we affirmed the trial court's judgment. See Mobile Invs., LLC v. Corporate Pharm. Servs., Inc., 415 So. 3d 1018 (Ala. 2024).

Mobile Investments and TBG thereafter filed a Rule 60(b)(4), Ala.

R. Civ. P., motion, requesting that the trial court set aside the default judgment as void on the basis that they had been denied due process. The trial court issued an order stating that there was no basis for setting aside the default judgment under Rule 60(b)(4), but it noted that filings since the entry of that judgment had raised questions that, it believed, would allow it to grant limited relief from that judgment under Rule 60(b)(6).

Following the trial court's observation, Mobile Investments and TBG amended their Rule 60(b) motion. In that amended motion, Mobile Investments and TBG reiterated their Rule 60(b)(4) arguments but added additional arguments for relief under Rule 60(b)(6).

Their amended motion was subsequently denied in major part by the trial court. However, in its order, the trial court made clear that there were still issues pertinent to the disposition of the case that had yet to be resolved. Before the trial court could resolve those issues, Mobile Investments and TBG appealed to this Court. As explained below, because their appeal is not taken from a final judgment, it must be dismissed.

Facts and Procedural History I. Events Giving Rise to the Underlying Case In 1995, William King agreed to lease his property on Broad Street in Gadsden to CPS ("the Broad Street property"). Under the parties' lease agreement, King agreed to lease that property to CPS for a one-year term, with the option for CPS to renew the lease "for five (5) successive years following the initial one (1) year term." The lease agreement also contained a provision that gave CPS the option to purchase the Broad Street property from King if King ever attempted to sell it. Although the lease agreement specifically covered only six years, CPS remained in possession of the Broad Street property until 2005, at which point, CPS contends, King executed a handwritten note that extended the term of

the lease indefinitely.

King died in 2018. In 2019, King's estate sold the Broad Street property to Mobile Investments. Shortly thereafter, CPS discovered that King's estate had sold the Broad Street property to Mobile Investments when Mobile Investments informed CPS that CPS was leasing the Broad Street property on a month-to-month basis; according to CPS, it was also informed that TBG was its "new landlord." When CPS contacted Mobile Investments and TBG regarding its right of first refusal and demanded that it be allowed to exercise that option, Mobile Investments and TBG refused.

Consequently, on October 22, 2020, CPS commenced the present action against Mobile Investments and TBG. In its complaint, CPS alleged that Mobile Investments and TBG had breached the terms of the original lease agreement between CPS and King and sought specific performance of the lease agreement's option-to-purchase provision.

Mobile Investments and TBG moved to dismiss CPS's claims against them, but that motion was denied. They then filed their answer to CPS's complaint, and the parties proceeded to engage in discovery.

Following CPS's filing of motions for sanctions based on Mobile

Investments and TBG's failure to participate in discovery and the trial court's entry of numerous discovery orders that went ignored, the trial court entered a default judgment in favor of CPS on August 11, 2023. The trial court found that CPS was entitled to purchase the Broad Street property for $110,000, the same price paid by Mobile Investments. The trial court's order contained a legal description of the Broad Street property that was to be conveyed upon CPS's payment of the $110,000 sale price to the Etowah circuit clerk. On September 8, 2023, Mobile Investments and TBG filed, under Rule 55, Ala. R. Civ. P., a motion for relief from the default judgment, which was denied by operation of law.

II. Mobile Investments and TBG's First Appeal to This Court On February 23, 2024, Mobile Investments and TBG appealed the trial court's judgment to this Court, arguing that the trial court had abused its discretion by entering a default judgment against them because, they said, their former attorney (1) did not tell them about the trial court's four orders compelling them to respond to discovery and (2) did not explain to their corporate representative the consequences of not complying with the trial court's orders compelling his deposition. Our Court affirmed the trial court's judgment on September 13, 2024. See

Mobile Invs., LLC v. Corporate Pharm. Servs., Inc., 415 So. 3d 1018 (Ala. 2024).

Following our Court's decision, on October 3, 2024, CPS filed its notice of payment of $110,000 to the Etowah circuit clerk for the purchase of the Broad Street property pursuant to the trial court's August 11, 2023, order. It also asked the trial court to issue an order formally divesting Mobile Investments and TBG of title to the Broad Street property consistent with its August 11, 2023, order.

In their response to CPS's notice and request, Mobile Investments and TBG asked the trial court not to enter an order divesting it of title to the Broad Street property as described in CPS's motion because, they said, the legal description of the Broad Street property provided by CPS for use in the clerks' deed contained an error. According to Mobile Investments and TBG, while the 2019 warranty deed from King's estate conveyed the properties identified by the street addresses of both 319 and 317 Broad Street, only 319 Broad Street was ever subject to CPS's lease with King. They maintained that the building at 317 Broad Street was leased to a different entity altogether and that it should not be included in the deed vesting title to the Broad Street property in CPS because it

was never leased by it.

It does not appear that the trial court took any action on either filing at that time.

III. Mobile Investments and TBG's Subsequent Rule 60(b)(4), Ala.

R. Civ. P., and Rule 60(b)(6), Ala. R. Civ. P., Motions

Then, on November 11, 2024, Mobile Investments and TBG filed a Rule 60(b)(4), Ala. R. Civ. P., motion in which they asked the trial court set aside its August 11, 2023, default judgment as void on the basis that they had been denied due process. They also argued that there was no evidence presented that could have supported that judgment.

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Mobile Investments, LLC, and The Broadway Group, LLC v. Corporate Pharmacy Services, Inc., (Ala. 2026).

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