MURDOCK, Justice.
Larry Webber petitions this Court for a writ of mandamus directing the Pickens Circuit Court to vacate its August 19, 2013, order denying Webber's motion to dismiss an action filed against him by Donald Sherrod, Helen Sherrod, and State Farm Fire and Casualty Company ("State Farm"). We grant the petition.
In June 2011, the Sherrods hired Webber to paint the interior of their house. The Sherrods and State Farm allege that Webber and his employees did not cover objects in the house before painting and that overspraying damaged the walls, floors, countertops, fixtures, appliances, and a number of items of personal property in the house.
On July 12, 2011, Donald Sherrod sued Webber in the small-claims court in Pickens County ("the small-claims-court action"). It is undisputed that Sherrod's wife Helen was not a party to the small-claims-court action. The complaint alleged that Webber owed Sherrod $3,000 because the "[p]ainting on the inside of my home was not completed [and the] overspray paint all over the inside of the house" had caused damage.
Following a bench trial, the district court — the small-claims court — entered an order on November 8, 2011, which recounted that the complaint alleged that "the painting on the inside of [the Sherrods'] home was not completed, and that [Webber] oversprayed paint such that the inside of the house and other items were damaged and had to be cleaned." The district court concluded that Donald Sherrod "is entitled to recover from [Webber] for the damage caused to his home due to overspraying of paint in the amount of $3,000, plus cost in the amount of $136.09."
Webber paid the judgment amount of $3,136.09 on November 21, 2011, and the district court entered an order acknowledging satisfaction of the judgment on November 28, 2011.
On March 25, 2013, the Sherrods and State Farm filed an action in the Pickens Circuit Court against Webber ("the circuit-court action"). The complaint in the circuit-court action stated:
On May 24, 2013, Webber filed a motion to dismiss the complaint, asserting that the action was barred by the doctrine of res judicata and the prohibition against double recovery. On June 14, 2013, the Sherrods filed a response to the motion to dismiss in which they argued that Helen Sherrod owned an undivided one-half interest in the personal property in the Sherrods' residence, that she was not a party to the small-claims-court action, and that she did not recover anything herself in that action. On June 21, 2013, the Sherrods and State Farm filed a second response to the motion to dismiss in which they argued that Helen Sherrod and State Farm were not parties to the small-claims-court action, that there was not "substantial identity of the parties" between the two actions, and that the small-claims court was not a court of competent jurisdiction, for purposes of
On August 19, 2013, the circuit court entered an order denying the motion to dismiss without explaining its reasons. This petition followed.
In Lloyd Noland Foundation, Inc. v. HealthSouth Corp., 979 So.2d 784, 792 (Ala.2007), we observed:
In this case, the complaint did not acknowledge the existence and nature of the judgment that resulted from the small-claims-court action. Instead, Webber submitted a copy of that judgment with his motion to dismiss. The circuit court was due to consider that attachment, thus effectively converting Webber's motion to dismiss to a motion for a summary judgment. See, e.g., Graveman v. Wind Drift Owners' Ass'n, Inc., 607 So.2d 199, 202 (Ala.1992) (stating that conversion of a motion to dismiss to a motion for a summary judgment "is proper where, as here, the parties, in support of, or in opposition to, the motion, file matters outside the pleadings and these matters are not excluded by the court").
A petition for a writ of mandamus is an appropriate method by which to seek this Court's review of the denial of a motion to dismiss or for a summary judgment predicated on the doctrine of res judicata. Ex parte LCS Inc., 12 So.3d 55, 56 (Ala.2008) (citing Ex parte Sears, Roebuck & Co., 895 So.2d 265 (Ala.2004)). See also Ex parte Jefferson Cnty., 656 So.2d 382 (Ala.1995).
Ex parte Cupps, 782 So.2d 772, 774-75 (Ala.2000) (quoting Ex parte Edgar, 543 So.2d 682, 684 (Ala.1989)).
Our standard of review for a ruling on a motion for a summary judgment is as follows:
Smith v. State Farm Mut. Auto. Ins. Co., 952 So.2d 342, 346 (Ala.2006).
Webber's primary argument is that the circuit-court action is barred by the doctrine of res judicata.
Greene v. Jefferson Cnty. Comm'n, 13 So.3d 901, 910 (Ala.2008) (emphasis added). "`If those four elements are present, then any claim that was, or that could have been, adjudicated in the prior action is barred from further litigation.'" Ex parte LCS Inc., 12 So.3d at 57-58 (quoting Equity Res. Mgmt., Inc. v. Vinson, 723 So.2d 634, 636 (Ala.1998)).
12 So.3d at 57 (quoting Lee L. Saad Constr. Co. v. DPF Architects, P.C., 851 So.2d 507, 516-17 (Ala.2002), quoting in turn Hughes v. Martin, 533 So.2d 188, 190 (Ala.1988) (emphasis added)).
Webber's argument is straightforward. Webber notes that Donald Sherrod filed the small-claims-court action against him as a result of damage to property inside the Sherrods' house allegedly caused by "overspraying" of paint by Webber while he was painting the interior of the Sherrods' house. Donald Sherrod won a judgment against Webber in that action, and Webber paid the judgment. Almost two years later, Donald Sherrod, his wife Helen, and their homeowners' insurance company, State Farm, filed the circuit-court action against Webber, alleging that property inside the Sherrods' house was damaged as a result of Webber's "overspraying" paint inside the house. Webber argues that the same cause of action is presented in both actions, that there was a prior judgment on the merits by a court of competent jurisdiction, and that the second action was filed by the same party (Donald Sherrod) and parties with substantially the same identity (Helen Sherrod and State Farm).
The Sherrods and State Farm do not dispute that there was a prior judgment on the merits and that the two actions involve the same cause of action. They also make no attempt to contend that Donald Sherrod is not the same party who initiated the small-claims-court action. Instead, they raise two arguments to explain why the doctrine of res judicata should not apply to the circuit-court action: First, they contend that the small-claims court was not a court of competent jurisdiction as to the claims brought in the circuit-court action; second, they argue that neither Helen
Specifically, with regard to their first argument, the Sherrods and State Farm note that, in order for an action to be barred by the doctrine of res judicata, "`it must, among other things, ... involve a question that could have been litigated in the former cause or proceeding.'" Lee L. Saad Constr. Co., 851 So.2d at 517 (quoting Stephenson v. Bird, 168 Ala. 363, 366, 53 So. 92, 93 (1910)). The Sherrods and State Farm argue that their claims in the circuit-court action could not have been brought in the small-claims court because the damages claimed by the Sherrods and by State Farm in the circuit-court action exceed the $3,000 jurisdictional limit for the small-claims court. See § 12-12-31(a), Ala.Code 1975.
The Sherrods and State Farm's argument is misguided. A jurisdictional limitation on damages does not affect the res judicata effect of a judgment. "A court of competent jurisdiction is a court with jurisdiction over the subject matter. If a court lacks jurisdiction over a claim, then that claim would not qualify as one that `might have been tried' by that court." Lloyd Noland Found., Inc., 979 So.2d at 795 (emphasis added). "`A difference in the element of damages is not grounds for distinguishing two causes of action for res judicata purposes.'" Chiepalich v. Coale, 36 So.3d 1, 4 (Ala.2009) (quoting Robinson v. Holley, 549 So.2d 1, 2 (Ala.1989)).
It is undisputed that the district court had jurisdiction over Donald Sherrod's claim based on property damage caused by overspraying of paint. The Sherrods presumably knew the approximate amount of damage Webber had caused soon after Webber completed the job, yet Donald Sherrod elected to file his claim in the small-claims court, a court with limited jurisdiction as to damages. The fact that almost two years after filing that action the Sherrods decided to seek a damages amount that exceeds the jurisdictional amount of small-claims court for the same act does not remove the preclusive effect of the previous judgment.
The argument posited by the Sherrods and State Farm would have us approve of a form of "claim-splitting" between different forums. Donald Sherrod sought and received the maximum amount available in the small-claims court. Now the Sherrods and State Farm seek further damages on the same claim. A comment to § 24 of Restatement (Second) of Judgments
Restatement (Second) of Judgments § 24 cmt. g (1982). In short, the jurisdictional limitation of the small-claims court as to damages did not affect that court's "competent jurisdiction" over the claim for res judicata purposes.
A question remains as to whether the small-claims-court action and the circuit-court action share a "substantial identity of parties." As mentioned above, there is no dispute in this regard with respect to Donald Sherrod; consequently, res judicata bars his participation in the circuit-court action. The Sherrods and State Farm maintain, however, that neither Helen Sherrod nor State Farm can be closely identified with Donald Sherrod for res judicata purposes.
Webber argues that Helen Sherrod shares an identity of interest in the subject matter of the litigation with Donald Sherrod because she is his wife, because she is a joint owner of the property that allegedly was damaged, and because she and her husband jointly hired Webber to perform the services that damaged their jointly owned property. (We further note that there is no dispute that Helen was aware of Donald's previous action against Webber.) Under these circumstances, there is sufficient identity of interest in the subject matter of the litigation that Helen is bound by the results of her husband's previous litigation.
The Sherrods and State Farm argue that as a co-owner of the property, Helen Sherrod is entitled to a one-half share of the damages awarded. Because she was not a party to the small-claims-court action, the Sherrods and State Farm contend that Helen Sherrod can maintain a separate action to recover the damages she incurred individually as a result of Webber's actions. For support, the Sherrods and State Farm cite McClurkin v. Ziebach & Webb Timber Co., 666 So.2d 520, 522 (Ala.Civ.App.1995), in which the Court of Civil Appeals observed that, "[i]n the case of Abbot v. Braswell, 289 Ala. 90, 265 So.2d 871 (1972), the Supreme Court held that where property is owned by joint tenants, one of them alone can maintain an action
McClurkin merely stands for the proposition that one of two joint tenants may bring an action based on damage to jointly owned real property suffered by that tenant without, in all cases, having to join the other tenant as a coplaintiff. There was no issue in McClurkin as to whether a judgment in such an action would serve as a res judicata bar to some future action by the prevailing party or someone with whom the prevailing party shared a substantial identity of interest.
This Court has explained:
Greene, 13 So.3d at 912 (emphasis added).
In Owen v. Miller, 414 So.2d 889 (Ala. 1981), this Court stated:
414 So.2d at 891 (emphasis added).
Similarly, in Mosley v. Builders South, Inc., 41 So.3d 806 (Ala.Civ.App.2010), the Court of Civil Appeals held that a corporation that had been solely owned by a divorcing wife and husband at the time of their divorce was bound by the divorce judgment, despite the fact that the corporation had not been made a party to the divorce action, because the corporation was "a nonparty who had an interest sufficiently close to the matter litigated and who had an adequate opportunity to litigate the issue in the [divorce action]." 41 So.3d at 812. See also Simmons v. Simmons, 99 So.3d 316, 321 (Ala.Civ.App.2011) (concluding that, even if a daughter, an alleged joint owner of a house with her
In sum, as to Helen Sherrod, all the elements of res judicata, including the necessary substantial identity of parties, are present in this case. Accordingly, Helen Sherrod is barred from filing the circuit-court action.
Having concluded that both Donald and Helen Sherrod are barred by the doctrine of res judicata from filing the circuit-court action, we are left with the question whether State Farm also is barred by the doctrine of res judicata.
As Webber correctly observes, "[u]nder the equitable doctrine of subrogation, `a subrogee steps into the shoes of its subrogor and that subrogee only gets those rights that its subrogor has. The subrogee can have no greater rights.'" Trott v. Brinks, Inc., 972 So.2d 81, 87 (Ala.2007) (quoting Star Freight, Inc. v. Sheffield, 587 So.2d 946, 958 n. 5 (Ala. 1991)). Because State Farm's rights as a subrogee extend only as far as the rights of the Sherrods, State Farm also must be barred from filing the circuit-court action.
Commercial Union Ins. Co. v. Blue Cross & Blue Shield of Alabama, 540 So.2d 1368, 1370 (Ala.1989) (quoting Miller v. Auto-Owners Ins. Co., 392 So.2d 1201, 1203 (Ala. Civ.App.1981)).
83 C.J.S. Subrogation § 88 (2010) (footnotes omitted). See also 73 Am.Jur.2d Subrogation § 71 (2012).
Unfortunately for State Farm, it simply cannot avoid the fact that, because its claim is based solely on its rights as a subrogee, it "`steps into the shoes of [the Sherrods] and [State Farm] only gets those rights that [the Sherrods] ha[ve].'" Trott, 972 So.2d at 87 (quoting Star Freight, Inc., 587 So.2d at 958 n. 5). As we explained in Part III.B of this opinion, the Sherrods are precluded by the doctrine of res judicata from bringing the circuit-court action against Webber. Therefore, State Farm is likewise barred from participation in the circuit-court action.
We conclude based on the foregoing that the doctrine of res judicata bars the Sherrods and State Farm from bringing the circuit-court action. Accordingly, the circuit court should have granted Webber's motion for a summary judgment on all the claims against him. Because of our disposition of this case on the ground of res judicata, we need not address Webber's double-recovery argument. We grant the petition for a writ of mandamus and direct the Pickens Circuit Court to vacate its August 19, 2013, order and to enter a summary judgment in favor of Webber as to all claims.
PETITION GRANTED; WRIT ISSUED.
STUART, BOLIN, PARKER, SHAW, MAIN, WISE, and BRYAN, JJ., concur.
MOORE, C.J., dissents.
This Court has stated that Alabama follows "a test that in certain respects is similar to, but which is not the same as, the `same transaction' test, which is found in Restatement (Second) of Judgments and which is applied in the federal courts." Equity Res. Mgmt., Inc., 723 So.2d at 638. Because the Sherrods and State Farm concede that the two actions involve the same cause of action, the difference between the two tests is irrelevant to the observation made above.