Parker Towing Co. v. Triangle Aggregates, Inc., 143 So. 3d 159

Background

Parker Towing mined sand and gravel on its 40‑acre parcel and on adjacent parcels under a series of short-term leases from neighboring landowners; leases required reclamation (including planting pines) after mining ceased.
Parker sold its property and related assets to Triangle; the sales agreement transferred Parker’s “remaining interest” in the leases and included a contractual indemnity: Triangle agreed to perform outstanding lease obligations (including reclamation) and to indemnify Parker for claims arising from those duties.
After the sale Triangle continued mining (including on some nonleased land). The landowners sued Parker, Triangle, and others alleging breach of the reclamation provisions (count one) and various torts (trespass, negligence, etc.) based on activity on nonleased property (counts two–eight).
Parker paid $25,000 to settle the landowners’ suit (and later released its carrier EMC for coverage disputes); Parker then asserted a cross‑claim against Triangle seeking indemnity for the $25,000 and for attorney’s fees and litigation expenses incurred defending the claims.
The trial court denied Parker’s cross‑claim; on appeal the Alabama Supreme Court affirmed denial of indemnity for the $25,000 settlement but reversed as to attorney’s fees and litigation expenses allocable to defending the reclamation (lease) claim, remanding for allocation.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Triangle must indemnify Parker for the $25,000 settlement	Parker: payment was caused by Triangle’s failure to perform reclamation and/or vicarious liability for Triangle’s torts	Triangle: Parker voluntarily settled; tort claims were joint tortfeasor claims not subject to indemnity; reclamation claims were satisfied by settlement time	Court: Affirmed — no indemnity for the $25,000 (joint‑tort rule & factual finding that reclamation claim no longer supported payment)
Whether common‑law indemnity exists for Parker’s exposure to tort claims (counts 2–8)	Parker: exposed to vicarious liability for Triangle’s torts, so Triangle should indemnify	Triangle: separate corporate entities; no agency; claims are joint tortfeasor claims — no indemnity or contribution absent statute/contract	Court: Held no common‑law indemnity — joint tortfeasors rule bars indemnity/contribution absent contract/statute
Whether contractual indemnity covers attorney fees and litigation expenses Parker incurred defending reclamation claim	Parker: sales agreement indemnity covers attorney fees and expenses incurred defending lease/reclamation claims	Triangle: Parker voluntarily assumed defense and didn’t show fees were allocable to reclamation claim	Court: Reversed trial court — contractual indemnity covers fees/expenses incurred defending the reclamation claim; remand to allocate reasonable portion
Whether the voluntary‑payment doctrine bars recovery of defense fees under the indemnity clause	Triangle (and trial court): Parker voluntarily chose its own counsel and thereby cannot recover under indemnity	Parker: choice of counsel and insurer reservation of rights is irrelevant to Triangle’s contractual indemnity; collateral‑source principle applies	Court: Voluntary‑payment doctrine inapplicable; indemnity governs between contracting parties; collateral‑source rule supports recovery of fees under contract

Key Cases Cited

Ex parte Stenum Hosp., 81 So.3d 314 (Ala. 2011) (no contribution or indemnity among joint tortfeasors absent statute or contract)
Parker v. Mauldin, 353 So.2d 1375 (Ala. 1977) (recognizing rule barring indemnity among joint tortfeasors without statutory/contractual basis)
Mount Airy Ins. Co. v. Doe Law Firm, 668 So.2d 584 (Ala. 1995) (application of voluntary‑payment doctrine in indemnity contexts)
Jones v. Regions Bank, 25 So.3d 427 (Ala. 2009) (Alabama follows the American rule: attorney’s fees recoverable only by statute or contract or special equity)
Smith v. Muehia, 854 So.2d 85 (Ala. 2003) (ore tenus standard of review for bench trials)