Parker Towing Company, Inc. ("Parker Towing"), appeals from a judgment of the Clarke Circuit Court denying Parker Towing's cross-claim for indemnity from Triangle Aggregates, Inc. ("Triangle"). We affirm the judgment in part and reverse it in part.
Parker Towing owned a 40-acre parcel of property in Clarke County, which it mined for sand and gravel. Parker Towing's property is adjacent to property owned by Betty Jo Haynie, Wynona Belle G. Crosby, Mary Allison Haynie, Elizabeth Haynie Wainstein, and Joe Mills (collectively "the landowners"). In 1996, 1998, and 2002, Parker Towing entered into a series of lease agreements whereby it leased various parcels of real property from the landowners ("the leased properties").
After each lease expired, Parker Towing continued mining on the property covered by the respective leases with the knowledge, permission, and consent of the landowners. Parker Towing also continued to make payment to the landowners as otherwise would have been required under the relevant leases. According to Parker Towing, it is a common practice that sand and gravel leases continue after their stated termination date with the permission and consent of the property owners, but without extending the leases in writing. Each of the lease agreements provided that Parker Towing would perform reclamation of the property covered thereby upon the expiration of the lease, with such reclamation to include the planting of pine seedlings within one year after Parker Towing had ceased its mining operations on each parcel.
In May 2005, Parker Towing entered into an agreement to sell its 40-acre parcel of property and its machinery and equipment and related assets to Triangle. Terah Huckabee, who was a vice president of Parker Towing, and Benny Chinnis, who was a vice president of Triangle, negotiated the sales agreement between Parker Towing and Triangle. The agreement provided, in pertinent part, for the transfer of "any remaining interest" Parker Towing held in the landowners' leases, and the agreement further provided:
After the sale to Triangle, Parker Towing discharged all of its employees who had been assigned primarily to the mining operation on the leased properties. Triangle then hired all the discharged Parker Towing employees. Thereafter, Triangle continued to mine the leased properties, and it also continued certain reclamation work on the leased properties that had been initiated by Parker Towing. After the sale, Parker Towing conducted no further operations on the leased properties, and none of its employees or agents went to the properties except Huckabee, who went twice to conclude matters relating to the sale to Triangle.
In October 2006, the landowners sued Parker Towing, Triangle, Triangle Land, LLC ("Triangle Land"),
Counts two through eight of the landowners' complaint asserted claims against Parker Towing, Triangle, Triangle Land, Chinnis, and fictitiously named defendants, jointly and severally, based upon various torts they allegedly committed on the nonleased property.
(Emphasis added.) Count three alleged that the defendants had "negligently or wantonly entered upon real property belonging to the [landowners] on which defendants had no lease agreement" and that this property was damaged as a proximate result of such negligence and wantonness. Count four alleged that the defendants "unlawfully bulldozed the real property, cut and cleared trees, and unlawfully occupied the subject real property." Count five alleged that the defendants had "intentionally, willfully and unlawfully taken a portion of [the landowners'] real property without [the landowners'] consent and against [the landowners'] will." Count six alleged that the defendants had committed "outrageous conduct" as to the landowners' legal rights. Count seven included a claim for damages for mental anguish based on the defendants' trespass, and count eight alleged that the defendants "independently and through imputation, were wanton, willful and grossly negligent, the proximate result of which [the landowners] have suffered actual damages."
Parker Towing filed a cross-claim against Triangle seeking indemnity for any losses it might incur as a result of any failure by Triangle to have reclaimed the leased properties as alleged in count one of the landowners' complaint, including all
As to the nonleased property and counts two through eight of the complaint, Parker Towing filed a motion for a partial summary judgment against the landowners. The landowners filed a response to that motion, arguing that
(Emphasis added.)
The trial court denied both of Parker Towing's summary-judgment motions. Thereafter, Parker Towing amended its cross-claim against Triangle to add a claim for indemnity in the event Parker Towing were to be held liable for actions of Triangle with respect to the nonleased property.
Sometime after depositions were taken in June 2008, Triangle paid the landowners, collectively, between $50,000 and $100,000 for the sand and gravel it had mined and removed. Triangle had not paid the landowners anything before that time.
In September 2008, Parker Towing's liability-insurance carrier, Employers Mutual Casualty Company ("EMC"), filed a motion to intervene in the landowners' action "for the limited purpose of determining whether there is insurance coverage for the claims alleged by the [landowners] against [Parker Towing]." In October 2008, the trial court entered an order granting EMC's motion to intervene.
Parker Towing hired Hamp Uzzelle, a lawyer who had represented Parker Towing in the past, to defend it in the landowners' action, reasoning that if EMC might not pay the claims against Parker Towing, Parker Towing should control the defense against those claims.
In April 2009, EMC entered into a settlement agreement with Parker Towing concerning the insurance-coverage dispute between them. Pursuant to the settlement agreement, EMC paid Parker Towing $25,000 in exchange for Parker Towing's releasing EMC
In conjunction with the settlement agreement between Parker Towing and EMC, the landowners also settled their claims against Parker Towing, Triangle, Triangle Land, and Chinnis. Triangle paid the landowners $75,000, and Parker Towing paid the landowners $25,000 (the same amount it had received from its settlement with EMC). The settlement agreement between the landowners and the various defendants specifically excluded any settlement of Parker Towing's cross-claim against Triangle.
On May 28, 2009, the landowners, Parker Towing, Triangle, Triangle Land, and Chinnis filed a "Joint Stipulation of Dismissal With Prejudice" as to the landowners' claims. The joint stipulation provided that "the Cross-Claim pending between
Parker Towing's cross-claim against Triangle proceeded to a bench trial in October 2010. At trial, Parker Towing sought indemnity both for the $25,000 it had paid the landowners in settlement of their claims against Parker Towing and for its attorney fees and expenses in defending against the landowners' claims. According to Parker Towing, Uzzelle's fee for defending the landowners' claims against Parker Towing was $39,364.40, and court-reporter fees were $944.55. After receiving ore tenus evidence, the trial court entered a judgment in favor of Triangle and against Parker Towing as to all claims asserted by Parker Towing in its cross-claim. Parker Towing appeals from the trial court's final judgment.
Robinson v. Evans, 959 So.2d 634, 637 (Ala.2006).
Parker Towing contends that Triangle must indemnify it for the $25,000 it paid in settlement of the landowners' claims against it and for the attorney fees and litigation expenses it incurred to defend itself against the landowners' claims. We first address Parker Towing's arguments regarding its claim for indemnification for the $25,000 paid to the landowners.
Parker Towing first makes an argument for indemnification as to the $25,000 based on the tort claims against it in counts two through eight of the complaint relating to the nonleased property. It contends that the landowners' theory was that, although Parker Towing itself did not engage directly in the allegedly tortious conduct, it was "vicariously" responsible for the tortious conduct of Triangle on the nonleased property. Parker Towing argues that the threat of being held vicariously liable for the actions of Triangle resulted in its payment of at least part of the $25,000 it paid the landowners in settlement of the claims against it and that, therefore, it should be entitled to indemnification by Triangle.
The trial court rejected this assertion, explaining:
We agree with the trial court that the tort claims against Parker Towing and Triangle in counts two through eight of the complaint with respect to the nonleased property are in the nature of allegations against joint tortfeasors. We also agree with the trial court that there is no theory of indemnity that may be applied in this case as between such joint tortfeasors.
The general rule in Alabama is that, in the absence of a statutory or contractual basis otherwise, there is no contribution or indemnity among joint tortfeasors. Ex parte Stenum Hosp., 81 So.3d 314, 318 (Ala.2011); Parker v. Mauldin, 353 So.2d 1375 (Ala.1977). In their response in the trial court to Parker Towing's motion for a summary judgment as to counts two through eight, the landowners attempted to circumvent this general rule by arguing that Triangle was using the former employees of Parker Towing in its allegedly tortious conduct and that Parker Towing and Triangle were "one and the same." As noted, Triangle also attempts to frame Parker Towing's alleged liability to the landowners as having been "vicarious" in nature. For all that appears from the record, however, Triangle is an entirely separate corporation that purchased the
The trial court also rejected Parker Towing's claim for indemnification from Triangle for any portion of the $25,000 insofar as it related to the claims asserted by the landowners against Parker Towing in count one of the complaint relating to the reclamation of the leased properties. Parker Towing contends that Triangle was responsible for a breach of the reclamation obligation under the lease agreements assigned by Parker Towing to Triangle and that, at least to some extent, it made the $25,000 payment to the landowners to compensate for that breach. In rejecting this argument, the trial court noted that there was testimony to the effect that reclamation of the property had been completed by the time Parker Towing agreed to pay $25,000 in settlement of the landowners' claims, i.e., some two and one-half years after the commencement of the lawsuit. The trial court cited the testimony of Benny Chinnis, a vice president of Triangle, to the effect that all reclamation of the leased properties had been completed at the time of the settlement and that there was no claim being pursued by the landowners against anyone for reclamation of the leased properties at that juncture.
Parker Towing contests these findings by the trial court, arguing, among other things, that Huckabee subsequently testified in a manner that appeared to contradict certain portions of his testimony relied upon by the trial court. Under the ore tenus rule, however, the deference owed the trial court's factual findings, including the weight and credibility the trial court gives to certain testimony, prevents us from second-guessing the trial court's factual findings in this regard. Accordingly, we find no basis on which to disturb the trial court's conclusion that, at the time of the settlement of the underlying action,
We turn now to the issue of the recovery of the attorney fees and litigation expenses Parker Towing paid in the course of defending itself against the landowners' claims. Parker Towing claims the right to be indemnified for its attorney fees and expenses under both the common law and its indemnification agreement with Triangle.
In contrast to our conclusion as to Parker Towing's common-law indemnification claim, we conclude that Parker Towing is in fact entitled to reimbursement by Triangle of at least a portion of its attorney fees and litigation expenses under its contractual indemnification agreement with Triangle.
As discussed in Part A, above, the trial court concluded that, by the time the settlement agreement was entered into by the parties and Parker Towing agreed to pay the landowners $25,000, the landowners' allegations regarding reclamation of the nonleased property no longer provided a basis for liability, i.e., for any payment of any portion of the $25,000. This does not mean, however, that Triangle was not in breach of its reclamation obligation at the outset of the litigation, some two and one-half years before the settlement. To the contrary, both parties and the trial court appear to accept as a given that reclamation
Nonetheless, the trial court rejected Parker Towing's claim, reasoning that Parker Towing voluntarily chose "to assume the expense of litigation, even though EMC provided Attorney Patterson's services to act as primary defense counsel at the expense of EMC." With this as its predicate, the trial court invoked the "voluntary-payment doctrine," see Mount Airy Ins. Co. v. Doe Law Firm, supra, to conclude that Parker Towing was not entitled to indemnity of its attorney fees even to the extent the fees were incurred in defending against count one of the complaint.
The voluntary-payment doctrine has no application in this context. The landowners sued Parker Towing, and Parker Towing had little choice but to engage in that litigation and to use counsel to defend itself against what was at the time a meritorious reclamation claim. Parker Towing, as it had every right to do, chose Uzzelle to represent it rather than relying on an attorney provided by its third-party insurer, EMC. That choice is not germane to the indemnity obligation between Triangle and Parker Towing. Triangle is a stranger to the EMC-Parker Towing insurance arrangement.
As a corollary, the trial court's invocation of the voluntary-payment doctrine in this circumstance conflicts with the collateral-source rule. As this Court stated in Jones v. Crawford, 361 So.2d 518, 522 (Ala.1978):
See also Sturdivant v. Crawford, 240 Ala. 383, 385, 199 So. 537, 538 (1940) ("The amount paid by the insurance company does not even affect the measure of recovery. The insurance of the property is a mere indemnity, and insurer and insured are regarded as one person. The mere fact that the insurer had paid the insured cannot affect the action against the wrongdoer who has destroyed or injured the property, the subject of the insurance.").
Finally, although no question has been raised as to whether the amount of the
Aside from the brevity of this "argument" and the lack of citation of any authority in connection therewith, we note that this argument was not asserted by Triangle in the trial court. This argument is of such a nature that, because it was not asserted in the trial court, it provides no alternative legal ground for the affirmance of the trial court's judgment in this appeal. Liberty Nat'l Life Ins. Co. v. University of Alabama Health Servs. Found., P.C., 881 So.2d 1013, 1020 (Ala.2003) ("[T]his Court will affirm the trial court on any valid legal ground presented by the record, regardless of whether that ground was considered, or even if it was rejected, by the trial court. Ex parte Ryals, 773 So.2d 1011 (Ala.2000), citing Ex parte Wiginton, 743 So.2d 1071 (Ala.1999), and Smith v. Equifax Servs., Inc., 537 So.2d 463 (Ala.1988). This rule fails in application only where due-process constraints require some notice at the trial level, which was omitted, of the basis that would otherwise support an affirmance...." (emphasis added).)
Nonetheless, we conclude today that Parker Towing is entitled to indemnification by Triangle of its attorney fees and other litigation expenses to the extent incurred by Parker Towing to defend against the claims asserted against it under the reclamation provision of the lease agreements, but not to the extent incurred by Parker Towing to defend against the various tort claims asserted against Parker Towing and Triangle as joint tortfeasors. Accordingly, we reverse the judgment of the trial court to the contrary and remand this case for a determination as to what portion of the attorney fees and expenses incurred by Parker Towing would have been incurred by it even in the absence of the tort claims raised by the landowners. The trial court is instructed to enter a judgment in that amount in favor of Parker Towing.
We affirm the trial court's judgment to the extent that it concludes that Parker Towing is not entitled to indemnity for the $25,000 it paid the landowners in settlement of the claims against it. We reverse the trial court's judgment with respect to its conclusion that Triangle is not required to indemnify Parker Towing for its attorney fees and other litigation expenses incurred to defend against the claims asserted against Parker Towing for breaches of the reclamation provisions in the lease agreements with the landowners. The fees and expenses incurred by Parker Towing as a result of those breaches are covered by the indemnification agreement between Parker Towing and Triangle. We remand the case for further proceedings and the entry of judgment consistent with this opinion.
AFFIRMED IN PART; REVERSED IN PART; AND REMANDED WITH INSTRUCTIONS.
STUART, BOLIN, PARKER, MAIN, and WISE, JJ., concur.
MOORE, C.J., and SHAW and BRYAN, JJ., concur in the result.
Additionally, Triangle's liability-insurance carrier, Pennsylvania National Mutual Casualty Insurance Company ("Pennsylvania National"), intervened in the landowners' action for the "limited purpose" of determining its insurance-policy-coverage obligations to Triangle and Parker Towing. Pennsylvania National alleged that Parker Towing claimed it was an additional insured under Triangle's liability-insurance policy, that Pennsylvania National was providing a defense to Triangle and Parker Towing under a reservation of rights, and that Pennsylvania National disputed coverage as to certain of the claims against Triangle and Parker Towing.