Southampton 100, LLC v. Alabama Department of Revenue

CourtSupreme Court of Alabama
DecidedNovember 26, 2025
DocketSC-2025-0227
StatusPublished

This text of Southampton 100, LLC v. Alabama Department of Revenue (Southampton 100, LLC v. Alabama Department of Revenue) 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
Southampton 100, LLC v. Alabama Department of Revenue, (Ala. 2025).

Opinion

Rel: November 26, 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-2025-0227 _________________________

Southampton 100, LLC

v.

Alabama Department of Revenue

Appeal from Jefferson Circuit Court (CV-21-903531)

COOK, Justice.

This appeal arises from the dismissal of an action ordered as a

sanction for alleged misconduct during discovery. The underlying SC-2025-0227

litigation concerns a dispute over the amount of ad valorem taxes owed

by the appellant, Southampton 100, LLC ("Southampton"), for a low-

income-housing property that it purchased in 2019. Southampton

challenged multiple tax-year valuations assessed for the property by the

Jefferson County Tax Assessor's Office before the Jefferson County Board

of Equalization and Adjustments ("the Board"). Although the Board

adjusted some of those valuations, Southampton was not satisfied with

the assessments.

Over the next few years, Southampton appealed those assessments

in separate actions to the Jefferson Circuit Court. The circuit court then

consolidated Southampton's appeals into one action. The Alabama

Department of Revenue ("ADOR") subsequently filed a notice of

appearance in that appeal and thereafter became the named "appellee."

During the course of Southampton's appeal, a number of discovery

disputes arose between the parties, many of which prompted motions for

sanctions against Southampton by ADOR. The final straw came when

ADOR sought to depose one of Southampton's corporate representatives

in person. Southampton had previously provided one of its corporate

representatives for an in-person deposition and then offered to have its

2 SC-2025-0227

second corporate representative, a resident of California, testify via

Zoom, a videoconferencing service, that same day. ADOR refused that

offer and, instead, demanded that Southampton's second corporate

representative travel to Alabama so that he could be deposed in person.

Southampton objected to ADOR's demand on the basis that having

its second corporate representative fly to Alabama was overly

burdensome given that the parties had already rescheduled those

depositions on multiple occasions. In response, ADOR issued another

deposition notice. Southampton, however, never sought a protective

order.

Following additional disputes over this issue, including a motion for

sanctions, ADOR filed another motion for sanctions in which it asked the

circuit court to dismiss Southampton's tax appeal. Without holding a

hearing, the circuit court granted the motion and dismissed

Southampton's tax appeal with prejudice the very next day.

Although a trial court has discretion to sanction a party for willfully

failing to comply with discovery requests, as explained below, the record

before us does not indicate that Southampton willfully did so in this case.

We therefore reverse and remand.

3 SC-2025-0227

Facts and Procedural History

I. The Underlying Property-Tax Appeal

Property-tax values for each tax year are set by the county tax-

assessing official who appraises real property using the prior valuation

from October 1 of the previous year, making any adjustments to that

valuation that the assessor determines is legal and proper. See § 40-7-25,

Ala. Code 1975. The assessor then certifies all valuations to the local

board of equalization, which reviews, revises, and fixes the valuations as

listed by the assessor. See §§ 40-3-16, -17, and -18, Ala. Code 1975, and §

40-7-27, Ala. Code 1975.

On July 16, 2019, Southampton purchased a low-income-housing

tax-credit property for $2,570,000. Following that transaction, the

Jefferson County Tax Assessor's Office assessed the fair market value of

the property for the 2021 tax year. That assessed value was $3,823,800.

Southampton disagreed with the assessor's assessed value and

asked the Board to adjust it. According to the record, the Board lowered

that value to $3,250,000.

In December 2021, Southampton appealed that assessment to the

Jefferson Circuit Court. See §§ 40-3-24 and -25, Ala. Code 1975. Over the

4 SC-2025-0227

next few years, Southampton appealed the Board's additional tax

assessments for the property for 2022, 2023, and 2024. As stated

previously, the circuit court then consolidated those appeals into one

appeal.

As part of that appeal, Southampton requested a jury trial to

determine the fair market value of the property. As noted previously,

ADOR subsequently filed a notice of appearance, see § 40-3-26(b), Ala.

Code 1975, and thereafter became the named "appellee" in the appeal

below.

Although the circuit court initially set the jury trial in this case for

October 16, 2023, the trial was continued to February 24, 2025. The

circuit court thereafter issued a new scheduling order on October 28,

2024, in which it made clear that any further requests for a continuance

in the case would be disfavored and would require "good cause" to be

shown. The circuit court explained that the fact "that discovery has not

been completed, or other such reasons will not be considered 'good cause' "

for a continuance. It also directed "[a]ll discovery … to be completed

within 60 days of the trial date [February 24, 2025]" -- i.e., by December

26, 2024. The scheduling order included the following discovery provision

5 SC-2025-0227

under the Birmingham Differential Case Management Plan:1

"With respect to Rule 30(b)(6) of the Alabama Rules of Civil Procedure, if corporate representatives are not located within the State of Alabama, a party being asked to tender such representatives for deposition will be expected to produce only one such representative in Jefferson County, Alabama absent agreement of the parties to the contrary, or unless otherwise ordered. Any further depositions of additional corporate representatives would be expected to be held at the deponents' location. Should the party for whom the representative will be testifying reasonably question the court's personal jurisdiction, this party may object to producing a witness in Jefferson County until the issue is resolved."

(Emphasis added.)

II. The Parties Engage in Discovery

On September 5, 2023, ADOR served its interrogatories and

requests for production on Southampton. Over a year later, on October

16, 2024, Southampton responded to ADOR's discovery requests.

After ADOR reviewed Southampton's response to its discovery

1The Birmingham Division of Jefferson County implemented the

Birmingham Differential Case Management Plan in 1990. 1 Gregory C. Cook, Alabama Rules of Civil Procedure Annotated, Rule 26, Author's Comments § 26.21 (5th ed. 2018).

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