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63 So. 3d 1256
Ala.
2010
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Background

  • Dispute concerns construction of a residence in Montgomery County; Lighting Fair, Cherry Marble, and Texture Crete sue Taylor, Taylor Homes, Rosenbergs, and Regions for liens and related claims.
  • Rosenbergs executed a construction contract with Taylor Homes to build a home for about $756,000, with progress-based disbursements and an arbitration clause under the FAA.
  • Regions provided a loan to the Rosenbergs and Taylor Homes, with disbursements governed by a schedule, and Regions disclaimed agency status and inspection duties.
  • Rosenbergs signed a loan contract with Regions; Regions performed limited inspections and disbursed funds per Rosenbergs’ signed requests, with each disbursement bearing warranties that subcontractors were paid.
  • Materialmen supplied materials after 90% loan disbursed while house was only about 78.5% complete; liens were filed by Lighting Fair, Texture Crete, and Cherry Marble against the Rosenbergs.
  • The trial court granted summary judgment for Regions and the materialmen against the Rosenbergs; it ordered arbitration of the Rosenbergs’ cross-claims against Taylor and Taylor Homes; and it later certified a final judgment under Rule 54(b), which the appellate court ultimately dismissed as improper.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the Rosenbergs’ cross-claims against Taylor and Taylor Homes were properly appealed. Rosenbergs contends the arbitration order was appealable. Arbitration order timely; untimely filing bars review. Untimely appeal; dismissal of that portion.
Whether the March 22, 2010 Rule 54(b) certification was proper. Certification no just reason for delay; appropriate to finalize. Certification proper given finality of those claims. Certification improper; appeals dismissed in their entirety.

Key Cases Cited

  • Branch v. SouthTrust Bank of Dothan, N.A., 514 So.2d 1373 (Ala. 1987) (no improper piecemeal review when intertwined claims pose risk of inconsistency)
  • MCI Constructors, LLC v. City of Greensboro, 610 F.3d 849 (4th Cir. 2010) (factors for Rule 54(b) no-just-reason-for-delay review including mootness risk)
  • Allis-Chalmers Corp. v. Philadelphia Elec. Co., 521 F.2d 360 (3d Cir. 1975) (interrelationship of claims governs 54(b) certification)
  • Bowater, Inc. v. Zager, 901 So.2d 658 (Ala. 2004) (appeals from arbitration orders governed by Rule 4(d))
  • Centennial Assocs. v. Guthrie, 20 So.3d 1277 (Ala. 2009) (no-excessive 54(b) certification when remaining claims closely tied)
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Case Details

Case Name: Lighting Fair, Inc. v. Rosenberg
Court Name: Supreme Court of Alabama
Date Published: Nov 24, 2010
Citations: 63 So. 3d 1256; 2010 WL 4777543; 2010 Ala. LEXIS 220; 1091077 and 1091105
Docket Number: 1091077 and 1091105
Court Abbreviation: Ala.
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