Warwick Development Co., Inc. v. GV CORP.

469 So. 2d 1270
CourtSupreme Court of Alabama
DecidedMarch 8, 1985
Docket82-206, 83-570
StatusPublished
Cited by19 cases

This text of 469 So. 2d 1270 (Warwick Development Co., Inc. v. GV CORP.) 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
Warwick Development Co., Inc. v. GV CORP., 469 So. 2d 1270 (Ala. 1985).

Opinion

469 So.2d 1270 (1985)

WARWICK DEVELOPMENT COMPANY, INC.
v.
The GV CORPORATION and Grayson Valley Golf and Country Club, Inc.
The GV CORPORATION
v.
WARWICK DEVELOPMENT CO., INC., Claude H. Grayson and Grayson Valley Golf & Country Club, Inc.

82-206, 83-570.

Supreme Court of Alabama.

March 8, 1985.
Rehearing Denied April 5, 1985.

*1272 Samuel Maples of Corretti & Newsom, and W.L. Longshore, Jr. of Longshore & Longshore, Birmingham, for appellant/cross-appellee.

Walter Fletcher and Carleton P. Ketcham, Jr. of Dominick, Fletcher, Yeilding, Wood & Lloyd, Birmingham, for The GV Corporation.

William B. Lloyd, Jr., and Richard C. Fruechtenicht of Lloyd, Ennis & Lloyd, Birmingham, for Grayson Valley Golf & Country Club, Inc.

ON APPLICATION FOR REHEARING

PER CURIAM.

Rehearing is granted; the case is submitted for consideration by the entire court. The opinion of September 21, 1984, is withdrawn, and this opinion is substituted in its place.

Defendant/Appellant Warwick Development Company, Inc. (Warwick), appeals from an adverse judgment entered on a jury verdict in favor of Plaintiffs/Appellees GV Corporation (GV) and Grayson Valley Golf and Country Club, Inc. (Club). The Plaintiffs alleged, and the jury found, that Defendant Warwick had trespassed upon Plaintiffs' property, interfering with a lease agreement and causing irreparable damage to the golf course situated on the property. The jury assessed damages, by way of separate verdicts, in the aggregate amount of $70,000 for trespass, breach of the lease agreement, and abuse of process.

GV cross-appeals from the trial court's order granting motions for directed verdicts in favor of Warwick and Claude H. Grayson on Count IV of GV's complaint. Count IV alleged that Grayson and Warwick were liable for fraud in misrepresenting the acreage encompassed in the lease and option-to-purchase agreement.

We affirm as to the appeal and reverse as to the cross-appeal, and remand this cause to the trial court for a new trial as to Count IV.

FACTS

On December 1, 1976, Warwick entered into a written agreement with Grayson, leasing to him certain real property situated in Jefferson County, Alabama, for use as a golf course. The lease included an option to purchase the real property on certain terms and conditions, and required payment of ad valorem taxes as additional rent. On November 11, 1977, Grayson, with Warwick's permission, assigned his lease and option to Richard Widick and Bobby Lepper at an advertised voluntary public auction. Subsequent to the auction, but before closing the sale, Widick and Lepper and their wives formed the GV Corporation. GV ratified the auction contract and took the assignment from Grayson. Widick and Lepper and their wives then sold their ownership interests in GV Corporation to four other individuals.

In late 1979, Warwick began plans for installation of a sewer line across certain *1273 parts of the golf course in order to further develop land surrounding the golf course owned by Warwick but not included in the lease. Warwick surveyed and staked out the location of the sewer line across the golf course in December 1979, and executed a sewer easement to Jefferson County on December 31 of that year.

On January 24, 1980, James Grayson, Claude Grayson's son and president of Warwick, called the Club concerning the timetable for installing the sewer lines. The manager, who was not a member or stockholder of the Club, responded that he would cooperate in the laying of the sewer. The manager instructed Grayson to contact the person in charge of work on the golf course when construction was to begin.

Construction of the lines began after Warwick guaranteed, in writing, that any damage to the course would be properly repaired and paid for by Warwick. Construction continued for approximately four weeks, until the golf course manager ordered the work stopped.

GV filed suit against Warwick for trespass and breach of the lease agreement. GV also sought injunctive relief to prohibit further trespass and to require removal of the sewer lines which were laid on the golf course.

In October 1980, a $33.68 tax notice was mailed to Warwick, which had previously changed the tax assessment from Grayson to Warwick. Warwick did not pay the taxes due, nor did it mail the notice to GV. The property was sold for taxes, whereupon Warwick redeemed the property, and sent GV a notice of eviction for failure to pay the taxes. The notice read in part as follows:

"We call attention to paragraph numbered eight of said Lease which provides `should Grayson fail to pay the taxes on said property, or should [he] fail to comply with any of the terms of this Lease then, on the happening of any such event, Grayson forfeits [his] right to a conveyance of such property and this Lease and the Option to Purchase shall become null and void at the option of Warwick.'
"A portion of the property covered by that Lease was sold to the state of Alabama this year for 1980 taxes. Warwick Development Company has redeemed this property from the State of Alabama.
"Due to your failure to pay the 1980 taxes we are declaring the Lease and Option to Purchase null and void.
"This is to notify you that you are to surrender peaceable possession to Warwick Development Company as provided in said Lease."

Following the notice of eviction, Warwick counterclaimed against GV and the Club, which had previously been allowed to intervene as a party plaintiff, claiming unlawful detainer and demanding possession of the premises. GV and the Club amended the complaint to charge Warwick with abuse of process and demanded compensatory and punitive damages. Prior to trial, a survey was conducted which showed that the 2.7 acres of Warwick's land surrounding the leased property, but not within the property description of the lease, was being used as a golf playing area. Warwick again amended its counterclaim seeking ejectment against GV and the Club with regard to this 2.7 acres. Additionally, Warwick requested reformation of the lease to increase the rental payment due Warwick from GV for this acreage. GV and the Club again amended the complaint, to claim fraud on the part of Warwick and to add Grayson as a party defendant. GV and the Club claimed that Warwick and Grayson had misrepresented the correct acreage contained in the lease at the time of its assignment by Grayson to the promotors of GV.

At trial, following the close of all the evidence, the trial judge directed verdicts in favor of Grayson and Warwick on the fraud issue. The directed verdict effectively dismissed Grayson from the lawsuit. The jury returned verdicts favorable to GV and the Club on all remaining issues. The court, in its final decree, awarded use of *1274 the disputed property outside the leasehold to Plaintiffs.

ISSUES AND DECISION

As to the Appeal

Warwick advances several theories to support a reversal of the judgment below. After careful analysis of the lengthy briefs and voluminous record, we deem it necessary, in regard to the appeal, to discuss only Warwick's claim that the trial judge's failure to dismiss the abuse of process claim brought by GV and the Club constitutes reversible error.

Warwick's initial position that an underlying action of some sort must terminate in the plaintiff's favor before an abuse of process action can be maintained is misplaced. Abuse of process is often confused with the tort of malicious prosecution.

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469 So. 2d 1270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warwick-development-co-inc-v-gv-corp-ala-1985.