Alabama State Employees Credit Union v. Devin Jemison (Appeal from Montgomery Circuit Court CV-24-403).
CL-2025-0004
| Ala. Civ. App. | May 16, 2025Background
- Alabama State Employees Credit Union (ASECU) sued Devin Jemison for defaulting on a contractual obligation, seeking $15,075.38 plus costs and attorney's fees.
- Jemison signed a waiver of exemptions on September 30, 2024, as part of a negotiated settlement agreement with ASECU.
- The district and then circuit courts entered judgments in ASECU’s favor but did not include the waiver of exemptions, despite both parties requesting it.
- ASECU filed post-judgment motions to have the waiver recognized, which the circuit court denied, citing absence of a waiver in the original contract and concerns about unequal bargaining power.
- ASECU appealed, arguing the court erred in refusing to enforce the separately executed waiver agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of Waiver of Exemptions in Judgment | Jemison signed a written waiver; it is valid | No waiver was in the original contract | Circuit court erred; waiver in settlement must control |
| Effect of Settlement Agreements Modifying Contracts | Settlement agreements are binding contracts | Bargaining power was unequal | Later agreement controls over earlier contract |
| Authority to Enter Consent Judgments | Court must follow parties' consent judgment | N/A | Entry of judgment is ministerial if parties agree |
| Unconscionability based on Bargaining Power | N/A | Claimed terms were unfair to Jemison | No evidence of unconscionability; waiver enforced |
Key Cases Cited
- Broadway v. Household Fin. Corp. of Huntsville, 351 So. 2d 1373 (Ala. Civ. App. 1977) (waiver of exemptions is permitted if in writing and signed by the debtor)
- Cavalier Mfg., Inc. v. Clarke, 862 So. 2d 634 (Ala. 2003) (later agreements may modify earlier contracts and control if inconsistent)
- Nero v. Chastang, 358 So. 2d 740 (Ala. Civ. App. 1978) (settlement agreements are as binding as other contracts)
- Blackledge v. Blackledge, 134 So. 3d 891 (Ala. Civ. App. 2013) (judgments must accord with settlement agreements when no contrary evidence is presented)