News

11/11/2009 - Capell & Howard attorneys obtain dismissal of lawsuit against Alabama Department of Finance officials

Citing sovereign immunity, the Circuit Court of Montgomery recently granted a motion to dismiss a lawsuit against the Alabama Department of Finance, and three of its officers. Capell & Howard attorneys Jimmy McLemore and Bob Northcutt defended the State. After the Department had terminated an equipment contract for cause, the contractor sued for damages and to restore the contract. Although the Complaint pleaded “bad faith” conduct, an often used exception to immunity, the Court declared that the allegation alone does not establish an actionable claim. An allegation which serves as an exception to a defense does not in turn create a cause of action where none previously existed. Presiding Judge Charles Price issued the opinion.

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