Spencer v. S. Boyd, Inc.
111 So. 3d 713
Ala.2012Background
- Contract for septic system between Spencer and K&K (Feb 27, 2007) included forum-selection clause selecting Tuscaloosa County courts.
- Spencer also contracted with Boyd for excavation; lawsuit filed in Greene Circuit Court (Jul 30, 2008) alleging multiple contract and tort claims.
- K&K answered (Oct 17, 2008) asserting improper venue and invoked forum-selection clause; discovery conducted; parties engaged in mediation.
- Nov 4, 2010: K&K moved to transfer venue or enforce forum-selection clause; extended pretrial activity followed.
- Oct 30, 2011: Greene Circuit Court granted transfer motion as to K&K and severed from Boyd claims; Boyd later stayed/dismissed; mandamus petition filed (Dec 12, 2011).
- Court grants petition; holds K&K waived right to enforce forum-selection clause by substantial invocation of litigation process; jurisdiction remains over K&K and Boyd’s solvent codefendants.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether mandamus is proper given bankruptcy stay | Spencer/Gee contend stay divests jurisdiction. | K&K argues stay limited to Boyd, not solvent codefendants. | Jurisdiction remains over K&K and Boyd’s solvent codefendants; petition not divested. |
| Whether K&K waived its forum-selection clause | K&K’s extensive litigation conduct shows waiver. | No waiver; right preserved until transfer motion filed. | K&K waived by substantial invocation of litigation process. |
| Whether automatic stay affected proceedings against solvent codefendants | Stay blocked all actions against all defendants. | Stay limited to Boyd; solvent codefendants proceed. | Stay did not bar proceedings against solvent codefendants; petition valid for those parties. |
Key Cases Cited
- Bradberry v. Carrier Corp., 86 So.3d 973 (Ala. 2011) (automatic-stay does not stay actions against solvent codefendants)
- Snow v. Baldwin, 491 So.2d 900 (Ala. 1986) (automatic stay not extend to codefendants; severance possible)
- Textron, Inc., 67 So.3d 61 (Ala. 2011) (waiver of forum-selection rights via unequivocal conduct)
- Ex parte Wood, 852 So.2d 705 (Ala.2002) (drastic mandamus criteria)
- Isom v. Johnson, 205 Ala. 157, 87 So. 543 (Ala. 1920) (waiver by clear intention required)
- Ex parte Fuller, 955 So.2d 414 (Ala.2006) (mandamus standard; jurisdictional inquiry)
- Soprema, Inc., 949 So.2d 907 (Ala.2006) (distinguishes forum-denial early vs. later waiver analysis)
- Crews v. National Boat Owners Ass’n Marine Ins. Agency, Inc., 46 So.3d 933 (Ala.2010) (substantial invocation of litigation process as waiver analog)
- Companion Life Ins. Co. v. Whitesell, 670 So.2d 897 (Ala.1995) (waiver analysis context for invoking rights)