Ex parte Dangerfield

• Decision Date: 14 May 2010
• Docket Number: 1090276.
• Citation: 49 So.3d 675
• Parties: Ex parte Efé DANGERFIELD et al. (In re Forrest Frost et al. v. Efé Dangerfield et al.).
• Court: Alabama Supreme Court

49 So.3d 675

Ex parte Efé DANGERFIELD et al.

(In re Forrest Frost et al.

v.Efé Dangerfield et al.).

1090276.

Supreme Court of Alabama.

May 14, 2010.

Glenmore P. Powers II and John J. Breckenridge, asst. counsel, Alabama Department of Revenue; and George Beck, Jr., and Terrie Scott Biggs of Capell & Howard, P.C., Montgomery, for petitioners.

J. Mark White, William M. Bowen, Jr., Andrew C. Allen, and Hope S. Marshall of White, Arnold & Dowd, P.C., Birmingham, for respondents.

WOODALL, Justice.

Efé Dangerfield, Lisa McKniqht, Carol Murphy, and Charles Crumbley, defendants in an action in the Montgomery Circuit Court, petition this Court for a writ of mandamus directing the Montgomery Circuit Court to grant their motion to dismiss the complaint or, in the alternative, to quash subpoenas issued in the case. We grant the petition in part and deny it in part.

I. Factual and Procedural Background

On August 6, 2009, a complaint was filed in the Montgomery Circuit Court by (1) Crown Motors, Inc. ("Crown"); (2) Forrest Frost, a director, shareholder, and officer of Crown; and individuals who were employees of Crown at the time of the events made the basis of this action, namely, (3) Marie Hatcher, (4) Donald Reuger, (5) Kevin Roden, and (6) Theresa Schoonover. Hatcher, Reuger, Roden, and Schoonover were "service advisor," "service manager," "body-shop manager," and "office manager for the body shop," respectively. Named as defendants in the complaint were certain officials of the Alabama Department of Revenue ("the Department"), namely, (1) Carol Murphy, (2) Special Agent Efé Dangerfield, (3) Sales, Use, and Business Tax Supervisor Lisa McKnight, and (4) Investigations Divisions Director Charles Crumbley. The complaint contained the following factual allegations:

Crown sells new and used automobiles at dealerships located in Gadsden, Anniston, and Fort Payne. The Gadsden dealership is owned and operated by Frost. For approximately two years immediately preceding the events made the basis of this action, Murphy, on behalf of the Department, had been auditing Crown's sales-tax reports.

On the morning of May 14, 2009, Dangerfield obtained a warrant to search the premises of Crown's Gadsden dealership.At around noon on May 14, approximately 35 representatives of various governmental agencies, including the Department and the Federal Bureau of Investigation, converged on the premises of the Gadsden dealership. According to the complaint:

"The agents sealed off every entrance/exit way with law enforcement vehicles and roped off the areas with yellow tape. The agents, armed with firearms, stormed the two separate buildings located on the car lot. The agents announced their purpose and 'corralled' everyone into the front portion of the main building of the dealership. This included employees and customers present anywhere on the premises. Office personnel were segregated from everyone else. Females were not allowed to bring their purses with them. No one was permitted to use a cell phone or telephone. The agents refused to allow anyone to contact the owner Mr. Frost. Everyone was told that they could leave only after talking to an agent. Employees were not permitted to leave for lunch. Roden ordered pizza for the employees from a local restaurant. Roden was escorted outside by agents to the pizza delivery vehicle, where the pizza was searched by the agents before the pizza was permitted into the dealership....

"17. The agents obtained everyone's name and contact information. With the employees and dealership management still corralled in the front of the showroom, the interviews began. Each individual was questioned separately in a private office in the back of the building. Individuals who needed to use the restroom were escorted by an agent.

"18. After several hours and after the agents and officers had obtained the information they wanted, the detainees were informed that all employees except office personnel could leave; however, once they left they could not return. Still, before anyone was permitted to exit the lot, their motor vehicle was stopped by two state troopers who asked if there was any 'illegal contraband or paperwork' in the vehicle. Schoonover was forced to open personal correspondence for inspection by the state troopers before she was allowed to leave the premises.

"19. Although all of the employees and customers at the dealership that morning were in fact in custody and were held incommunicado and not free to leave, no one was informed of any constitutional right. Everyone believed that each had to answer the interrogator's questions before they would be permitted to leave.

"20. During the time the 'house arrest' continued, customers were unable to get their cars repaired or serviced. With only one exception, customers were not even permitted access to their vehicles which were ready for pickup. During the time of the search and seizure, the entire daily business of Crown was shut down. In addition, the Department seized virtually every scrap of paper, every computer and every flash drive.

"21. The Department removed enough documents and filing cabinets to fill at least two Ryder [brand rental] trucks and several vans. Computers were placed into a Chevrolet Suburban [sport-utility vehicle]."

(Footnote omitted.) A few days later, the Department obtained and executed another search warrant at the Gadsden dealership. Pursuant to this warrant, all documents in the attic of the main building of the dealership were seized.

On June 3, 2009, Crown "attempted to file a Motion for Return of Property" withthe Department, seeking the return of the seized documents. However, the Department disallowed the filing, asserting that there was "no pending case" with which to associate it. When Crown attempted to file the motion in the district court and the circuit court of Etowah County, its attempts were met with the same response.

The complaint contained 11 counts. All the defendants were sued in both their individual and official capacities. Count 1 (alleging a violation of due-process rights) alleged that Dangerfield, McKnight, Murphy, and Crumbley "acted willfully, wantonly, maliciously, in bad faith, beyond their authority, under a mistaken interpretation of the law, and intentionally," in order to deny the "plaintiffs their contractual and property rights without Due Process of law." Compensatory damages were sought under count 1.

Count 2 (alleging unlawful search and seizure) was brought solely on behalf of Frost and Crown. It alleged that the defendants "acted willfully, wantonly, maliciously, in bad faith, beyond their authority, under a mistaken interpretation of the law, and for the purpose of interfering with, destroying and denying ... Frost's and Crown's rights" in conducting an unlawful search of the premises of the dealership. Relief sought in count 2 included compensatory damages, punitive damages, and "return of all property illegally seized."

Count 3 alleged intentional interference with business and contractual relations and was brought solely on behalf of Crown. Under that count, Crown sought compensatory damages, punitive damages, and "return of all property illegally seized."

Count 4 alleged conversion and was brought solely on behalf of Crown. It alleged that the defendants "acted willfully, wantonly, maliciously, in bad faith, beyond their authority, under a mistaken interpretation of the law and for the purpose of converting Crown's property," that is, "virtually every scrap of paper, every computer and every flash drive within its possession." Relief sought under count 4 included compensatory damages, punitive damages, and "return of all property illegally converted."

Count 5 (seeking return of chattels in specie ) was brought on behalf of Crown and sought the recovery of Crown's property.

Count 6 (class claims alleging unlawful detention) was brought on behalf of Hatcher, Reuger, Roden, Schoonover, and "all others similarly situated." It alleged that the defendants "acted willfully, wantonly, maliciously, in bad faith, beyond their authority, under a mistaken interpretation of the law, and for the purpose of falsely imprisoning Hatcher, Reuger, Roden and Schoonover and others similarly situated." Relief sought under count 6 was compensatory damages and punitive damages. Count 7 contained a similar class claim alleging false arrest, and count 8 alleged conspiracy.

Count 9 sought a judgment declaring (1) that the search warrants under which the Department conducted the searches of the premises of the dealership were "null, void, and without any effect whatsoever and were issued without authority and in violation of the law"; (2) that the "defendants' acts and omission" were in violation of the law; (3) that the defendants' acts or omissions interfered with and denied Crown's contractual/property rights and business relationships; and (4) that the defendants' acts or omissions "constitut[ed] the false imprisonment, detainment, and arrest of Hatcher, Reuger, Roden, and Schoonover and all others similarly situated."

Count 10 sought to enjoin "the enforcement of any future search warrants," aswell as all further actions in alleged violation of the plaintiffs' rights in contract, property, and liberty.

Finally, count 11 (request for return of property) was on behalf of Crown only. It sought, pursuant to Rule 3.13, Ala. R.Crim. P., the return of all property that was removed from the Gadsden dealership. Rule 3.13 provides, in pertinent part:

"A person aggrieved by an unlawful search and seizure may move the court for the return of the property seized on the ground that he or she is entitled to lawful possession of the property which was illegally seized. The judge shall receive evidence on any issue of fact necessary to the decision of the motion. If the motion is granted, the property shall be restored. If a motion of return of property is made or comes on for hearing after an indictment or information is filed,

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