Pinpoint Locating, Inc. v. The Water Works and Gas Board of the City of Red Bay

CourtSupreme Court of Alabama
DecidedDecember 5, 2025
DocketSC-2025-0376
StatusPublished

This text of Pinpoint Locating, Inc. v. The Water Works and Gas Board of the City of Red Bay (Pinpoint Locating, Inc. v. The Water Works and Gas Board of the City of Red Bay) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinpoint Locating, Inc. v. The Water Works and Gas Board of the City of Red Bay, (Ala. 2025).

Opinion

Rel: December 5, 2025

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-2025-0376 _________________________

Pinpoint Locating, Inc.

v.

The Water Works and Gas Board of the City of Red Bay

Appeal from Franklin Circuit Court (CV-23-900076)

SELLERS, Justice.

Pinpoint Locating, Inc., appeals from a summary judgment entered

by the Franklin Circuit Court ("the trial court") in favor of the Water

Works and Gas Board of the City of Red Bay ("the Board"). We reverse. SC-2025-0376

I. Facts and Procedural History

In 2021, the Board obtained an approximately $4.4 million loan for

the purpose of replacing and extending gas lines in and around the City

of Red Bay ("the project"). The project consisted of four phases: The Red

Bay Cast Iron Replacement Project ("the Cast Iron Replacement Phase");

the Red Bay Expansion Project Phase One ("Phase I"); the Red Bay

Expansion Project Phase Two ("Phase II"); and the Red Bay Expansion

Project Phase Three ("Phase III"). The Board contracted with Magnolia

River Services, Inc., an engineering firm, to design and manage the

project. Among other things, Magnolia prepared the specifications for

each phase of the project; however, it had no involvement in the

advertisement for sealed bids for the project. Pinpoint was the only

contractor to submit a bid for each phase of the project; the Board

accepted those bids, and the parties executed four separate contracts for

the work to be performed on the project. Pinpoint commenced work on

each phase of the project in September 2021, but it ceased all work in

October 2022 after the Board stopped making payments under the

contracts. By a letter dated May 6, 2023, the Board's attorney advised

Pinpoint's attorney that, because the advertisement for sealed bids had

2 SC-2025-0376

not been made in accordance with the version of § 39-2-2, Ala. Code 1975,

in effect at the time those advertisements were made ("former § 39-2-2"),

it did not appear that the Board could legally make any further payments

under the contracts. 1 At the time the Board ceased making payments

under the contracts, the Board had paid Pinpoint a total of $2,822.245,

but it still owed $811,300.52 for work completed. 2

In June 2023, Pinpoint commenced an action against the Board,

asserting claims of breach of contract, among other claims. The Board

1It appears from the May 6, 2023, letter from the Board's attorney

to Pinpoint's attorney that the Board may have believed that Magnolia was responsible for the advertisement for sealed bids for each phase of the project. However, Magnolia submitted an affidavit indicating that the advertisement for sealed bids was not within the scope of its contract with the Board. According to Pinpoint, the Board ceased making payments under the contracts after the Alabama Department of Transportation mandated a change order that added nearly $1 million in estimated charges to the project. Thus, Pinpoint claims, the Board did not have enough money left in its budget to complete the project and, therefore, used the defective advertising as an excuse for ceasing payment under the contracts.

2According to Pinpoint, two weeks before the Board ceased making

payments under the contracts, Magnolia certified that Pinpoint had completed the following: 100% of the installed mains for the Cast Iron Replacement Phase; 100% of Phase III; 72% of Phase II; and 62% of Phase I. Thus, Pinpoint says, through its work on all the phases, it had dug, bored, and laid 138,625 feet of new gas lines for the Board and its ratepayers, i.e., over 26 miles of new gas lines. 3 SC-2025-0376

filed a motion for a summary judgment pursuant to Rule 56, Ala. R. Civ.

P., arguing that the contracts were void because, it claimed, the

advertisement for sealed bids did not strictly comply with the mandates

of former §39-2-2(a). Following a hearing, the trial court entered a

summary judgment in favor of the Board. Pinpoint filed a postjudgment

motion to alter, amend, or vacate the judgment, which the trial court

denied. This appeal followed.

II. Standard of Review

"This Court reviews a summary judgment de novo, and we use the same standard used by the trial court to determine whether the evidence presented to the trial court presents a genuine issue of material fact. Rule 56(c), Ala. R. Civ. P.; Nettles v. Pettway, 306 So. 3d 873 (Ala. 2020). The movant for a summary judgment has the initial burden of producing evidence indicating that there is no genuine issue of material fact and that the movant is entitled to a judgment as a matter of law. Once the movant produces evidence establishing a right to a summary judgment, the burden shifts to the nonmovant to present substantial evidence creating a genuine issue of material fact. We consider all the evidence in the light most favorable to the nonmovant, indulging every reasonable inference and resolving any doubts in the nonmovant's favor. Id."

Sykes v. Majestic Mississippi, LLC, 402 So. 3d 203, 207-08 (Ala. 2024).

III. Discussion

A. Advertisement Requirements for Public-Works Contracts

4 SC-2025-0376

Title 39, Ala. Code 1975, governs contracts for public works. At the

time the advertisements for sealed bids were made in this case, former §

39-2-2 provided, in pertinent part:

"(a) Before entering into any contract for a public works involving an amount in excess of fifty thousand dollars ($50,000), the awarding authority shall advertise for sealed bids. … If the awarding authority is a municipality, or an instrumentality thereof, it shall advertise for sealed bids at least once in a newspaper of general circulation published in the municipality where the awarding authority is located. If no newspaper is published in the municipality, the awarding authority shall advertise by posting notice thereof on a bulletin board maintained outside the purchasing office and in any other manner and for the length of time as may be determined. In addition to bulletin board notice, sealed bids shall also be solicited by sending notice by mail to all persons who have filed a request in writing with the official designated by the awarding authority that they be listed for solicitation on bids for the public works contracted indicated in the request. … [F]or all public works contracts involving an estimated amount in excess of five hundred thousand dollars ($500,000), awarding authorities shall also advertise for sealed bids at least once in three newspapers of general circulation throughout the state.

"….

"(c) All contracts for public works entered into in violation of this title shall be null, void, and violative of public policy. Anyone who willfully violates this article concerning public works shall be guilty of a Class C felony." 3

3The legislature amended former § 39-2-2 twice since the advertisements for sealed bids were made in this case: once effective July 1, 2021, and once effective September 1, 2021; the 2023 amendment 5 SC-2025-0376

(Emphasis added.) See also § 39-5-1(a), Ala. Code 1975 ("No civil action

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Pinpoint Locating, Inc. v. The Water Works and Gas Board of the City of Red Bay, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinpoint-locating-inc-v-the-water-works-and-gas-board-of-the-city-of-red-ala-2025.