BOLIN, Justice.
Betty Bradberry and Inez T. Jones, as the "personal representatives of the heirs-at-law[
The plaintiffs and others sued the defendants on October 15, 2003, asserting a wrongful-death action and alleging that their decedents had died as the result of exposure to asbestos particles in their work environment at Marathon Oil Corporation and/or United States Steel Corporation between 1920 and 1990.
On November 9, 2007, the defendants moved the trial court for a summary judgment, arguing that there was (1) insufficient evidence indicating that the decedents had been exposed to any asbestos-containing products manufactured or supplied by each defendant, (2) that the claim was barred by the applicable statute of limitations, and (3) that the claim was barred by Alabama's common-law rule of repose.
On January 30, 2008, the plaintiffs moved the trial court to stay the proceedings
On July 6, 2010, approximately two-and-a-half-years after the proceeding was stayed, Presiding Judge J. Scott Vowell ordered the pending case transferred to the administrative docket where Circuit Judge Caryl Privett would manage the case through the preliminary stages of discovery, dispositive motions, and other pretrial proceedings.
On July 15, 2010, one of the defendants, Leslie Controls, Inc., filed a notice of bankruptcy in the trial court indicating that on July 12, 2010, it had petitioned for bankruptcy under Chapter 11 of the United States Bankruptcy Code and that the plaintiffs' action against it had been automatically stayed pursuant to § 362 of the Bankruptcy Code.
On August 16, 2010, the trial court set the case for a status conference on September 9, 2010. On August 18, 2010, the trial court entered an order setting all summary-judgment motions for a hearing on October 14, 2010, and requiring all responsive materials be filed on or before September 24, 2010. On September 9, 2010, the day of the scheduled status conference, the plaintiffs filed a notice of status stating that the case was stayed pursuant to § 362 of the Bankruptcy Code. The plaintiffs argued at the status conference that the case was stayed as to all defendants pursuant to the automatic-stay provision of § 362 as the result of the filing for bankruptcy by a number of the defendants, the most recent being Leslie Controls.
The plaintiffs further contended that a defendant in bankruptcy could not be effectively severed and the automatic stay still be complied with because of considerations involving the doctrine of collateral estoppel, discovery, and the applicable statute of limitations. The defendants argued that the Bankruptcy Code does not prohibit the plaintiffs' right to proceed against the solvent defendants. The trial court agreed with the defendants, stating:
Later in the status conference the trial court reiterated its intention to move the case forward as to the solvent defendants and the plaintiffs' counsel acknowledged his understanding of that decision:
The trial court again informed the parties at the status conference that the case was set for a summary-judgment hearing on October 14, 2010.
On September 15, 2010, the trial court entered an order requiring the parties to provide it with the names of the defendants that had filed for bankruptcy so it could enter an order severing, staying the action as to, or dismissing those defendants. On September 17, 2010, the plaintiffs filed a notice of objection to the severance or dismissal of those defendants that had filed a petition for bankruptcy, arguing (1) that the plaintiffs' action against the defendants—whether they were in bankruptcy or not—is a single cause of action that cannot be split into multiple actions; (2) that severing and staying claims against certain defendants does not eliminate the application of the doctrine of res judicata and/or collateral estoppel against both the plaintiffs and the severed defendants; (3) that the trial court should not sever from an action a defendant whose ultimate status has not yet been determined by the bankruptcy court; (4) that a sua sponte dismissal of a defendant simply because of the filing of a petition for bankruptcy is not appropriate as the plaintiffs have not agreed to dismiss their claims against that defendant; and (5) that this Court established precedent in Diaz v. Bill Vann Co. (No. 1090990, March 11, 2011), ___ So.3d ___ (Ala.2011) (table), an appeal from the Mobile Circuit Court, which this Court on June 28, 2010, stayed pending bankruptcy proceedings, for automatically staying an action as to all defendants pursuant to § 362 of the Bankruptcy Code.
On September 24, 2010, the plaintiffs responded to the defendants' motions for a summary judgment, arguing that the trial court's order of August 18, 2010, setting the defendants' summary-judgment motions for a hearing and requiring the plaintiffs to file substantive responses to those motions violated the automatic-stay provision of § 362 of the Bankruptcy Code. The plaintiffs further argued:
The plaintiffs' response to the defendants' motions for a summary judgment contained no evidence or argument rebutting
On November 4, 2010, the trial court conducted a hearing on the defendants' summary-judgment motions.
On February 2, 3, and 4, 2011, the trial court entered orders granting the solvent defendants' motions for a summary judgment. The trial court certified its summary judgments as final pursuant to Rule 54(b), Ala. R.App. P. On March 3, 2011, the plaintiffs moved the trial court to alter, amend, or vacate its orders. The plaintiffs stated that they had previously objected to the dismissal of Leslie Controls until the bankruptcy court had ruled upon its petition for bankruptcy and informed the trial court that the bankruptcy court had approved Leslie Controls' petition in bankruptcy and its plan for reorganization and that Leslie Controls could now be properly dismissed from the case without prejudicing the plaintiffs' claims against it. The plaintiffs asked the trial court to vacate its February 2011 orders and to enter a new order dismissing Leslie Controls and resetting the remaining defendants' motions for a summary judgment. On March 5, 2011, the trial court entered an order denying the plaintiffs' postjudgment motion. The plaintiffs appeal.
Gooden v. City of Talladega, 966 So.2d 232, 235 (Ala.2007) (quoting Prince v. Poole, 935 So.2d 431, 442 (Ala.2006), quoting in turn Dow v. Alabama Democratic Party, 897 So.2d 1035, 1038-39 (Ala.2004)). To the extent that the plaintiffs have raised issues on appeal relating to the trial court's refusal to stay the proceeding against the solvent defendants, that determination involves a question of law and will be reviewed de novo. Ex parte Graham, 702 So.2d 1215 (Ala.1997).
The plaintiffs argue that the trial court's order setting the defendants' motions for a summary judgment for a hearing and requiring the plaintiffs to submit substantive responses to those motions violated the automatic-stay provision of the Bankruptcy Code. This argument is premised on the plaintiffs' general contention that Leslie Controls' filing for bankruptcy completely stayed all litigation in which Leslie Controls was involved, including litigation involving solvent codefendants.
The plaintiffs have not cited any provision of the Bankruptcy Code or any caselaw in support of this position. Section 362 of the Bankruptcy Code provides, in part:
11 U.S.C. § 362. Section 362 specifically states that the filing of a bankruptcy petition operates as a stay of the continuation of a judicial action against a debtor. Section 362 makes no references to a stay of judicial actions against the debtor's solvent codefendants.
Beyond the plain language of § 362, courts have consistently held that the automatic-stay provision of § 362 does not act to stay proceedings against a debtor's solvent codefendants.
In Fortier, the Fortiers sued a group of defendants following a dispute arising out of the sale of a shopping center. One of the defendants filed for bankruptcy, and all proceedings against that defendant were automatically stayed pursuant to § 362. The case proceeded to trial against the remaining defendants, and a verdict was returned in favor of the Fortiers. The defendants argued on appeal that the bankruptcy filing by the codefendant stayed the litigation against all the defendants and divested the district court of jurisdiction to hear the case. The United States Court of Appeals for the Tenth Circuit rejected that argument, stating:
Fortier, 747 F.2d at 1329-30. This holding has been consistently applied in the context of asbestos-related litigation. See Williford v. Armstrong World Indus., Inc., 715 F.2d 124, 126-27 (4th Cir.1983); Wedgeworth v. Fibreboard Corp., 706 F.2d 541, 544 (5th Cir.1983); Austin v. Unarco Indus., Inc., 705 F.2d 1, 4-5 (1st Cir.1983); Pitts v. Unarco Indus., Inc., 698 F.2d 313 (7th Cir.1983); and Lynch v. Johns-Manville Sales Corp., 710 F.2d 1194 (6th Cir. 1983).
Accordingly, we conclude that Leslie Controls' petition in bankruptcy did not automatically stay the litigation as to all remaining solvent defendants and that the trial court did not violate the automatic-stay provision of § 362 by moving forward with the summary-judgment hearing in this case.
The plaintiffs next argue that their wrongful-death action cannot be split into multiple actions. The plaintiffs argued to the trial court that it could not move the case forward as to the solvent defendants without violating the automatic-stay provision of § 362 unless it first severed or dismissed Leslie Controls from the action. However, the plaintiffs also argued that Leslie Controls could not be severed from the case because the wrongful-death action was an indivisible claim and a severance would result in two separate actions being prosecuted. Therefore, the plaintiffs insist, the bankruptcy of Leslie Controls must necessarily stay the wrongful-death action as to all remaining solvent defendants.
We first address the plaintiffs' contention that the case as to Leslie Controls must first be severed and stayed or that Leslie Controls must be dismissed from the case before the case can proceed against the remaining solvent defendants. When a defendant files a petition in bankruptcy, an automatic stay goes into effect and abates any judicial proceeding against that party. See 11 U.S.C. § 362(a).
Constitution Bank v. Tubbs, 68 F.3d 685, 691-92 (3d Cir.1995) (footnote omitted).
When a bankruptcy petition has been filed, it is common practice for a non-bankruptcy court in which an action is pending against the debtor and others to sever the action as to the debtor and to proceed against the solvent codefendants. Here, the plaintiffs argue that the trial court could not move the case forward as it pertained to the solvent defendants without violating the automatic stay unless it first severed and stayed the action as to Leslie Controls or dismissed Leslie Controls from the action. The plaintiffs were seeking to prevent the trial court from moving forward with the defendants' summary-judgment motions. As discussed above, § 362 stays only an action against Leslie Controls; it does not stay the action against the remaining solvent defendants. Although the plaintiffs' argument that the trial court must first sever and stay the action against Leslie Controls or dismiss Leslie Controls from the action in order to avoid violating the automatic stay is in keeping with the spirit of § 362, this Court is not persuaded that the trial court is required to enter an order formally severing and staying the action as to Leslie Controls or dismissing Leslie Controls from the action. Again, the stay provision in § 362 was automatically triggered as to Leslie Controls at the time it filed its bankruptcy petition. It would seem that the trial court could simply proceed to a summary-judgment hearing as to the solvent codefendants while honoring the § 362 automatic stay against Leslie Controls. See Snow, supra, where the case proceeded to trial against the solvent codefendant after the debtor had declared bankruptcy where the trial court did not enter a formal order severing the debtor from the case. See also Genna Contracting, Inc. v. Frank Robino Cos., (No. 091-08-082(JTV), Sept. 6, 2010)(Del.Sup.Ct.2010) (not published in A.2d.).
Accordingly, we conclude that the trial court did not violate the automatic-stay provision of § 362 by letting the case proceed on the solvent defendants' summary-judgment motions without first entering a formal order severing and staying the action as to Leslie Controls or dismissing Leslie Controls from the case.
We next address the plaintiffs' contention that the trial court's allowing the case to proceed on the solvent defendants' motions for a summary judgment while the case was stayed as to Leslie Controls amounts to an impermissible splitting of this wrongful-death action. "`[I]n Alabama there is but one cause of action for wrongful death, i.e., [Ala.] Code 1975, § 6-5-410.'" Sledge v. IC Corp., 47 So.3d 243, 247 (Ala.2010) (quoting Alabama Power Co. v. White, 377 So.2d 930, 933 (Ala.1979)). This Court has stated:
Tatum v. Schering Corp., 523 So.2d 1042, 1044 (Ala.1988) (quoting Bell v. Riley Bus Lines, 257 Ala. 120, 122-24, 57 So.2d 612, 613-15 (1952)) (emphasis added).
In Shepherd v. Maritime Overseas Corp., 614 So.2d 1048 (Ala.1993), a group of former seamen sued a number of defendants alleging that the seamen had suffered severe illness and/or death because of exposure to asbestos while working aboard ships owned by the defendants. The defendants moved to dismiss the complaints on the ground that the former seamen already had separate actions pending in Texas seeking compensation from certain manufacturers and distributors of asbestos products. The trial court dismissed the seamen's complaints. The seamen argued on appeal that § 6-5-440, Ala.Code 1975, requires that an action be dismissed only if the plaintiff has a separate action pending against the same defendant or defendants in an Alabama court based on the same cause of action. In discussing the "splitting of causes of action" this Court stated:
614 So.2d at 1050 (quoting Jones v. Russell, 206 Ala. 215, 218, 89 So. 660, 662-63 (1921)).
Because a wrongful-death action may be prosecuted against joint tortfeasors either jointly or separately, the trial court's allowing the case to proceed against the solvent defendants while the action was stayed as to Leslie Controls pursuant to § 362 does not in itself amount to an impermissible splitting of the wrongful-death action in this case.
The plaintiffs next state that because the trial court proceeded with a hearing on the solvent defendants' summary-judgment motions, the plaintiffs would possibly be faced with the application of the doctrine of res judicata or collateral estoppel to bar later litigation against Leslie Controls. Under Alabama law the doctrine of res judicata will preclude the relitigation of a claim that was, or could have been, adjudicated in a prior action when the following four elements are established: "`"(1) a prior judgment on the merits, (2) rendered by a court of competent jurisdiction, (3) with substantial identity of the parties, and (4) with the same cause of action presented in both actions."'" Greene v. Jefferson County Comm'n, 13 So.3d 901, 910 (Ala.2008) (quoting Chapman Nursing Home, Inc. v. McDonald, 985 So.2d 914, 919 (Ala.2007), quoting in turn Equity Res. Mgmt., Inc. v. Vinson, 723 So.2d 634, 636 (Ala.1998)).
The doctrine of collateral estoppel applies when the following elements are shown:
Bonner v. Lyons, Pipes & Cook, P.C., 26 So.3d 1115, 1121 (Ala.2009) (quoting Dairyland Ins. Co. v. Jackson, 566 So.2d 723, 726 (Ala.1990)). Clearly, collateral estoppel would not be a bar to any subsequent litigation involving the plaintiffs and Leslie Controls for the same reasons that res judicata would not bar any subsequent litigation, i.e., the parties are not the same. Additionally, because the exposure analysis is specific to each defendant, the issue whether the plaintiffs' decedents were ever exposed to products manufactured by Leslie Controls would not have been "actually litigated" in determining the solvent defendants' liability. Nor would consideration of the exposure, or lack of exposure, of the plaintiffs' decedents to products manufactured by Leslie Controls be necessary for a judgment to be entered in the action against the solvent defendants.
The plaintiffs next contend that this Court has established precedent that a wrongful-death action is stayed in its entirety when one of the codefendants files a petition in bankruptcy. The plaintiffs point to an order of this Court issued in Diaz v. Bill Vann Co., supra, also a wrongful-death action involving multiple defendants, in which this Court stayed an appeal as to all defendants after one codefendant filed a petition in bankruptcy and was granted an automatic stay. Significantly, there was no briefing by the parties on the
Finally, the plaintiffs argue that in light of the automatic stay in place for Leslie Controls, the trial court should have resolved all questions of its authority to hold a hearing on the solvent defendants' pending summary-judgment motions before holding the hearing. Based on the facts presented to this Court as set forth above, we conclude that the trial court had firmly rejected the plaintiffs' contention that the case was stayed as to all defendants and had clearly informed the plaintiffs of its intention to move forward with summary-judgment proceedings as to the solvent defendants. Although the trial court had alluded that it would sever and stay the proceeding as to Leslie Controls or dismiss Leslie Controls from the action and in doing so would have been keeping with general practice, as discussed above, the trial court was not required to do so in order for the case to proceed as to the solvent defendants. Accordingly, the plaintiffs are not entitled to any relief as to this issue.
The trial court's summary judgments for the solvent defendants are affirmed.
AFFIRMED.
MALONE, C.J., and WOODALL, MURDOCK, and MAIN, JJ., concur.