Randall v. Water Works & Sewer Board of Birmingham

885 So. 2d 757, 2003 Ala. LEXIS 343, 2003 WL 22520210
CourtSupreme Court of Alabama
DecidedNovember 7, 2003
Docket1021289
StatusPublished

This text of 885 So. 2d 757 (Randall v. Water Works & Sewer Board of Birmingham) 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
Randall v. Water Works & Sewer Board of Birmingham, 885 So. 2d 757, 2003 Ala. LEXIS 343, 2003 WL 22520210 (Ala. 2003).

Opinion

STUART, Justice.

Fred Lee Randall, David Russell, Eugene Edelman, John C. Harris, Michael Harneen, and David Toney, a group of electors in the City of Birmingham (hereinafter referred to collectively as the “electors”) appeal from a summary judgment entered in favor of the Water Works and Sewer Board of the City of Birmingham (“the Board”). In its summary-judgment order, the trial court declared invalid [759]*759a proposed ordinance submitted by the electors to the Probate Court of Jefferson County. We affirm.

Background

On or about October 2, 2002, the electors filed with Michael P. Bohn, the probate judge for Jefferson County, a “Petition for Ordinance to Reclaim the Water Works Assets for the City of Birmingham.” The electors requested that the probate judge certify their petition and submit the proposed ordinance to the Birmingham City Council for adoption by initiative or by referendum election. The electors filed their petition pursuant to the authority purportedly granted by Act No. 294, Ala. Acts 1965.

The purpose of the proposed ordinance was “to implement a plan to satisfy and redeem the debt of the Water Works and Sewer Board of the City of Birmingham in order to administer more effectively such systems and use the surplus revenues therefrom for needed improvements in city schools and other projects.” In order to accomplish this purpose, the ordinance authorized the City of Birmingham to redeem the debts of the Board and to cause the dissolution of the Board by operation of law, which would then vest title to the assets of the Board in the City. At the time the electors submitted their petition, the outstanding indebtedness of the Board was $550 million.

The ordinance submitted by the electors would appoint David A. Sullivan1 as a special attorney for the City and would grant him virtually unlimited authority to accomplish the purpose of the ordinance. Examples of the authority granted Sullivan under the proposed ordinance include the authority to “execute and deliver such agreements, instruments and certificates as may be deemed necessary or desirable”; to certify the amount of funds necessary to refund the outstanding debts of the Board; to issue and sell revenue warrants to accomplish the refunding; to execute and approve a trust indenture; to set the terms for the redemption of all outstanding Board bonds; to select a financial institution in which to establish an escrow account; to determine all of the terms under which the revenue warrants shall be sold; to employ and pay any assistants he deems desirable; to incur expenses as he deems necessary; and to take any actions deemed desirable and necessary to operate and maintain the water works system upon the dissolution of the Board. In addition, the proposed ordinance requires the mayor and all employees, consultants, and attorneys for the City to assist and cooperate with Sullivan and to pay “all invoices for actual expenses incurred and provid[e] all information and assistance as requested by Mr. Sullivan.”

Under the ordinance, Sullivan was to be compensated for his services as special attorney for the City on a contingent basis, depending upon whether the City successfully reclaimed the Board’s assets. If the City was successful in its effort to take over the Board’s assets, Sullivan would receive $350 per hour for the hours he worked or 3% of the dollar amount of the bonds issued, whichever was greater. Because the Board’s outstanding debt is $550 million, Sullivan stood to earn a contingent fee of at least $16.5 million if the purpose of the ordinance was accomplished.

The probate judge determined that the petition, as amended, contained the signatures of a sufficient number of qualified electors.2 Judge Bolin indicated that he [760]*760intended to certify the petition and submit the proposed ordinance to the Birmingham City Council unless and until a court of competent jurisdiction instructed him otherwise.

However, on October 28, 2002, before the probate judge could certify the petition and order that the proposed ordinance be submitted to the Birmingham City Council for consideration, the Board filed a declaratory-judgment action in the Jefferson Circuit Court. In its declaratory-judgment action, the Board alleged (1) that Act No. 294, under the authority of which the ordinance was presented, no longer applied to the City of Birmingham; (2) that Act No. 294 was unconstitutional;3 (8) that the action contemplated by the proposed ordinance was beyond the authority of the Birmingham City Council; (4) that the proposed ordinance was invalid on its face; (5) that the proposed ordinance improperly delegated to Sullivan, the special attorney, the legislative authority of the Birmingham City Council; (6) that the actions contemplated by the proposed ordinance would violate the Board’s contractual obligations; (7) that the proposed ordinance contained subjects that were improper for initiative ordinances; and (8) that the proposed ordinance was overbroad, vague, and ambiguous. In addition to seeking declaratory relief, the Board sought a temporary restraining order and a permanent injunction preventing the probate judge from certifying the petition for consideration by the Birmingham City Council.

The trial court entered a temporary restraining order prohibiting Judge Bolin from certifying the petition and from presenting the proposed ordinance to the Birmingham City Council. Shortly after the issuance of the temporary restraining order, the electors moved to intervene in the Jefferson Circuit Court action as defendants; the trial court granted their motion. The trial court also granted the City’s motion to intervene as a defendant.

The Board and the electors filed motions for a summary judgment. On December 13, 2002, the trial court held a hearing on the motions. On February 5, 2003, the trial court entered a summary judgment for the Board, finding that the proposed ordinance “unlawfully and unreasonably delegates the power of the City. The Court finds that the ordinance is void and is not to be certified.” The trial court then dissolved the temporary restraining order directed at Judge Bolin, finding no further need for the restraining order.

On February 28, 2003, the electors filed a motion to alter, amend, or vacate the judgment, pursuant to Rule 59(e), Ala. R. Civ. P. On April 13, 2003, the trial court denied the electors’ Rule 59(e) motion. On May 6, 2003, the electors filed a notice of appeal to this Court, asserting the following:

“I. The circuit court lacked subject-matter jurisdiction over the Board’s claims.
“II. The circuit court did not have general original jurisdiction over the Board’s claims because the Legislature vested it in the probate court.
[761]*761“III. The circuit court lacked jurisdiction to issue declaratory relief because all persons had not been made parties, as required by Ala.Code § 6-6-227.
“IV. Act. No. 294, Ala. Acts 1965, confers no right of action on the Board to complain against the probate judge delivering the proposed ordinance to the City.
“V. The proposed ordinance does not unlawfully or unreasonably delegate the powers of the City to a special attorney. “VI.

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Bluebook (online)
885 So. 2d 757, 2003 Ala. LEXIS 343, 2003 WL 22520210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/randall-v-water-works-sewer-board-of-birmingham-ala-2003.