Webster v. Gunter

336 So. 2d 170
CourtSupreme Court of Alabama
DecidedJuly 30, 1976
StatusPublished
Cited by7 cases

This text of 336 So. 2d 170 (Webster v. Gunter) 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
Webster v. Gunter, 336 So. 2d 170 (Ala. 1976).

Opinion

336 So.2d 170 (1976)

David E. WEBSTER et al.
v.
James O. GUNTER et al.

SC 1578.

Supreme Court of Alabama.

July 30, 1976.

Kenneth L. Funderburk, Phenix City, for appellants.

Cornett & Perdue, Phenix City, for appellees.

JONES, Justice.

Mr. and Mrs. Webster appeal from an order of the Circuit Court of Russell County *171 granting summary judgment against them. We reverse and remand.

On March 8, 1973, the Websters filed a bill in equity against the Gunters, seeking specific performance of a contract for the sale of land. Equitable relief was denied. On appeal to this Court, the trial Court was affirmed because of the reluctance of this Court to reverse an order based on the exercise of discretionary powers of the equity court. The majority of this Court reasoned that the trial Court's discretion had not been abused due to the "uncertainty of description" issue made out by the evidence. See Webster v. Gunter, 293 Ala. 282, 302 So.2d 97 (1974).

Subsequent to the affirmance of the judgment of the trial Court in Webster, the Websters, on November 20, 1974, filed a suit at law against the Gunters, alleging damages for breach of contract.

We note at the outset that the original case was filed as a bill in equity, seeking purely equitable relief of specific performance, prior to the effective date of the Alabama Rules of Civil Procedure which merged the courts of law and equity. Whether this procedural change would have effected a different result had the original suit been filed on or subsequent to July 3, 1973, we need not decide.

We agree with the appellant's statement of the issue here presented:

"Where a Plaintiff filed a Complaint before the new Alabama Rules of Civil Procedure took effect, seeking only equitable relief in the form of `Specific Performance' of a real estate sales contract and the Court denied all equitable relief sought, is the Plaintiff prohibited by the rule of res judicata from bringing any subsequent action for damages for the breach of the same contract?"

No inference is to be drawn from the phrase "before the new Alabama Rules of Civil Procedure took effect" that we would or would not reach the same result absent this phrase. We note this fact because the substantive law hereinafter set out is based in substantial part on the separation of the law and equity sides of the court.

The legal premise on which the substantive law dispositive of this issue is grounded is stated in Mialhi v. Lassabe, 4 Ala. 712, 714 (1843):

"Ordinarily, when a bill is filed for a specific performance and it is dismissed, nothing more is settled by the decree, than that the case is one in which equity will not interpose its extra-ordinary powers."

This Court, in the recent case of Rhyne v. Martin, 292 Ala. 163, 290 So.2d 650 (1974), quoted from 1 Pomeroy's Equity Juris-Prudence, 5th Ed. Section 237d, p. 436:

"The doctrine that equity, having once become possessed of a cause, will retain it for the purpose of administering full and complete relief, does not apply when the facts relied on to sustain the equity jurisdiction fail of establishment. The award of mere compensatory damages, which are almost always unliquidated, is a remedy peculiarly belonging to the province of the law courts, requiring the aid of a jury in their assessment, and inappropriate to the judicial position and functions of a chancellor. It may be stated, therefore, as a general proposition, that a court of equity declines the jurisdiction to grant mere compensatory damages, when they are not given in addition to or as an incident of some other special equitable relief, unless under special circumstances the exercise of such jurisdiction may be requisite to promote the ends of justice. This is especially true where such a course would operate to deprive a party of his constitutional right of a trial by jury."

From this premise, then, evolved the legal doctrine (last reaffirmed in Rhyne) which has been in effect in Alabama since at least 1845:

Where equitable relief which is the basis of the complaint is denied, the court cannot retain jurisdiction and grant relief available at law. City of Huntsville v. Miller, 271 Ala. 687, 127 So.2d 606 (1958); *172 Joiner v. Brightwell, 253 Ala. 569, 45 So.2d 709 (1950); Pritchett v. Wade, 261 Ala. 156, 73 So.2d 533 (1954); Nelson v. Lee, 53 So. 1023 (Ala.1910); Pond v. Lockwood, 8 Ala. 669 (1845).

It follows, therefore, that the case in equity is not res judicata to the subsequent case at law for damages, particularly where the trial Court's denial of equitable relief is affirmed as not constituting an abuse of discretion for not interposing its extraordinary powers. See Dekle v. Vann, 284 Ala. 142, 223 So.2d 30 (1969).

REVERSED AND REMANDED.

HEFLIN, C. J., and BLOODWORTH, ALMON and SHORES, JJ., concur.

MADDOX, FAULKNER, EMBRY and BEATTY, JJ., dissent.

ALMON, Justice (concurring specially):

"The doctrine of res judicata . . . embodies two main rules which may be stated as follows: (1) The judgment or decree of a court of competent jurisdiction on the merits concludes the parties and privies to the litigation and constitutes a bar to a new action or suit involving the same cause of action either before the same or any other tribunal . . . .

(2) Any right, fact, or matter in issue, and directly adjudicated on, or necessarily involved in, the determination of an action before a competent court in which a judgment or decree is rendered on the merits is conclusively settled by the judgment therein and cannot again be litigated between the parties and privies whether or not the claim or demand, purpose, or subject matter of the two suits is the same. . . ." 50 C.J.S. Judgments § 592, p. 11.

The distinction between the two rules is of importance in this case as it appears to explain the difference between the majority and the dissent. For clarity, I shall call the first rule "res judicata" and the second, "collateral estoppel." The opinion of the majority is framed in terms of the first rule, res judicata, while the dissent's opinion is framed in terms of the second, collateral estoppel.

The majority stated the issue as follows:

"Where a plaintiff filed a Complaint. . . seeking only equitable relief in the form of `Specific Performance' of a real estate sales contract and the Court denied all equitable relief sought, is the Plaintiff prohibited by the rule of res judicata from bringing any subsequent action for damages for the breach of the same contract?"

As explained by Justice Jones, Rhyne v. Martin, supra, as well as the other cases cited, disposes of this issue. In Alabama, when equitable relief is denied, a court of equity may not grant relief available at law. Thus, Webster is not precluded by "res judicata" from a second action for damages based on contract. However, that does not answer the question of whether Webster is precluded by the doctrine of "collateral estoppel," a question to which the dissent is addressed.

To clarify this question, I shall separate it into two questions, both of which have to be answered in the affirmative for the doctrine of collateral estoppel to apply. (1) Was the decision in Webster v. Gunter, supra,

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336 So. 2d 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webster-v-gunter-ala-1976.