JB Accounting Services, LLC; JB Accounting Tax Service Check Cashing, LLC; JB Accounting Tax Services, LLC; and Jennifer Beverly v. Brittany Winters, Adonijah Dale-Winters, and Ashley Hughes (Appeal from Mobile Circuit Court: CV-23-900402).
SC-2024-0441
Ala.May 9, 2025Background
- JB Accounting contracted with Brittany Winters, Adonijah Dale-Winters, and Ashley Hughes (the tax preparers) to provide tax-preparation services during the 2022-2023 tax season.
- The contracts stated that tax preparers would not be paid if they quit or were fired before the end of the contract term.
- All three tax preparers were fired and claimed they were not paid for most of their completed work, leading them to sue for breach of contract and other claims.
- After a bench trial, the Circuit Court found the contracts enforceable and denied the breach-of-contract claims but awarded damages based on quantum meruit (unjust enrichment).
- The defendants appealed, arguing quantum meruit was unavailable because valid express contracts existed and were not challenged for validity at trial.
- The majority of the Alabama Supreme Court affirmed, while a dissent argued that awarding under quantum meruit contradicted clear precedent when an express contract exists.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to compensation after firing | Tax preparers are owed commission for completed work, even if fired. | Payment not owed per contract if fired or quit. | Plaintiffs not entitled to contract damages after firing. |
| Quantum meruit recovery | Entitled to the reasonable value of services rendered. | Quantum meruit barred due to existence of contract. | Quantum meruit allowed (majority); dissent: not allowed. |
| Validity of contractual bar on payment | Contract's payment provision should not bar recovery for work done. | Contracts enforce explicit bar; plaintiffs agreed. | Contract term enforced; no contract damages awarded. |
| Relief under Rule 54(c), Ala. R. Civ. P. | Court can grant appropriate relief even if not specifically pleaded. | Lack of notice bars unpleaded quantum meruit claim. | Relief granted; dissent: improper without notice. |
Key Cases Cited
- Mantiply v. Mantiply, 951 So. 2d 638 (Ala. 2006) (when an express contract exists, quantum meruit is generally unavailable)
- Brannan & Guy, P.C. v. City of Montgomery, 828 So. 2d 914 (Ala. 2002) (existence of express contract precludes implied contract claims)
- Vardaman v. Florence City Bd. of Educ., 544 So. 2d 962 (Ala. 1989) (express contract excludes implied agreement on same matter)
- Homes of Legend, Inc. v. McCollough, 776 So. 2d 741 (Ala. 2000) (contract interpretation based on intent of the parties as discerned from contract terms)
- Avis Rent A Car Sys., Inc. v. Heilman, 876 So. 2d 1111 (Ala. 2003) (appellate courts do not reverse based on arguments not presented below)