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77 So. 3d 139
Ala.
2011
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Background

  • Matador supplied materials to Stratford for converting HoPo’s leased property into a production facility; Stratford defaulted on rent and Matador filed a materialman’s lien securing judgment against Stratford goods and the lease term; HoPo, as lessor, contested the lien and the unjust-enrichment claim; lease prohibited liens on HoPo’s reversion and required Stratford to comply with plan/insurance/licensing requirements; HoPo’s property manager and Stratford’s lessee relationship were central to notice and knowledge issues; trial court held Matador’s lien could attach to the goods and the unexpired lease term, but denied unjust enrichment.”,
  • Matador sought to collect $47,915.24 for materials and asserted lien on HoPo’s property; HoPo argued statutory lien rights did not attach due to Stratford’s lease-terms violations; the trial court denied the unjust-enrichment claim and upheld the lien only to the extent consistent with the lease restrictions; on appeal, the Alabama Supreme Court consolidated the Matador v. HoPo appeals.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether unjust enrichment supports Matador against HoPo Matador HoPo Unjust enrichment denied; no misrepresentation or reliance shown by HoPo.
Whether Matador’s materialman’s lien is enforceable against HoPo’s property Matador HoPo Lien unenforceable against HoPo’s property due to Stratford’s violation of lease terms.
Whether the lien attaches to the unexpired lease term as permitted Matador HoPo Lien cannot attach given lease-terms violations and lack of authorized lien procedures.

Key Cases Cited

  • Portofino Seaport Vill., LLC v. Welch, 4 So. 3d 1095 (Ala. 2008) (unjust-enrichment standards applicable in aid of restitution)
  • Welch v. Montgomery Eye Physicians, P.C., 891 So. 2d 837 (Ala. 2004) (unjust enrichment elements and proofs)
  • Jordan v. Mitchell, 705 So. 2d 453 (Ala. Civ. App. 1997) (unjust-enrichment retention of benefit requires donor mistake or recipient misconduct)
  • American Family Care, Inc. v. Fox, 642 So. 2d 486 (Ala. Civ. App. 1994) (elements of unjust enrichment: knowledge, retention, and expectation of compensation)
  • Reed v. Board of Trs. for Alabama State Univ., 778 So. 2d 791 (Ala. 2000) (ore tenus review limitations and standard of review)
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Case Details

Case Name: Matador Holdings v. Hopo Realty Investments, 1091700 (Ala. 8-5-2011)
Court Name: Supreme Court of Alabama
Date Published: Aug 5, 2011
Citations: 77 So. 3d 139; 2011 WL 3375658; 1091700 and 1091790
Docket Number: 1091700 and 1091790
Court Abbreviation: Ala.
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    Matador Holdings v. Hopo Realty Investments, 1091700 (Ala. 8-5-2011), 77 So. 3d 139