Marvin's, Inc. v. Robertson
| Decision Date | 20 November 1992 |
| Citation | 608 So.2d 391 |
| Parties | MARVIN'S, INC. v. Michael H. ROBERTSON. 1910971. |
| Court | Alabama Supreme Court |
John E. Medaris, Alabaster, for appellant.
Howard M. Miles of Stockham & Miles, Birmingham, for appellee.
This case involves an action by a creditor to enforce a guaranty agreement against the guarantor of a corporate commercial charge account. Marvin's, Inc., a building supply company, sued Bordeaux Construction Company, Inc., and Michael H. Robertson for the balance due on Bordeaux's commercial charge account with Marvin's. Robertson was the sole individual guarantor on an account that Bordeaux opened with Marvin's in 1981. The trial court, sitting without a jury, entered a judgment for Marvin's and against Bordeaux in the sum of $10,802.50 plus costs, but it also determined that Marvin's had failed to make out a case against the individual defendant Robertson as guarantor, and, therefore, rendered a judgment in favor of Robertson as well. Marvin's appeals from the judgment in favor of Robertson.
The record reveals that Bordeaux opened a commercial charge account and entered a security agreement with Marvin's on June 4, 1981, and that Robertson signed the agreement as individual guarantor. Isahc Titshaw, the corporate credit manager of Marvin's, rejected an earlier agreement dated May 28, 1981, because Robertson had signed that agreement as guarantor in his capacity as president of Bordeaux, which violated a Marvin's policy that all corporate accounts be personally guaranteed. Although there was only one credit agreement, Bordeaux was billed by individual charge accounts for each construction project.
Bordeaux was one of the best customers of Marvin's, and its credit limit was increased to approximately $100,000 by 1987. When Bordeaux's account became delinquent in 1987, Marvin's froze the account, no longer allowing Bordeaux to buy materials on credit and requiring cash payment for purchases while the account remained delinquent. In 1988, after Bordeaux had paid off the balance of its delinquent account, Marvin's again allowed Bordeaux to charge on a commercial account. Bordeaux and Marvin's signed no new agreement at this time, and Bordeaux's credit limit was set at $7500. When Bordeaux's account again became delinquent in 1989, Marvin's sued both Robertson as individual guarantor and Bordeaux for the balance due.
Robertson contended at trial that when Marvin's allowed Bordeaux to charge purchases again in 1988, either a novation of the 1981 agreement occurred or a new oral security agreement was created with Bordeaux that did not hold Robertson as an individual guarantor. The trial judge apparently accepted one or both of these theories when he ruled in Robertson's favor, thus releasing him from any personal liability on the remaining debt.
In reviewing the judgment of a trial court, this Court will not presume error and will affirm the trial court's judgment if it is supported by any valid legal ground. Turner v. Clutts, 565 So.2d 92, 94 (Ala.1990); Odom v. Blackburn, 559 So.2d 1080 (Ala.1990). Where ore tenus evidence is presented to the trial court, a presumption of correctness exists as to the court's conclusions on issues of fact; its determination will not be disturbed unless it is clearly erroneous, without supporting evidence, manifestly unjust, or against the great weight of the evidence. Gaston v. Ames, 514 So.2d 877, 878 (Ala.1987); Cougar Mining Co. v. Mineral Land & Mining Consultants, Inc., 392 So.2d 1177 (Ala.1981). The judgment of a trial court based on ore tenus evidence is presumed correct, and its findings "will not be disturbed on appeal unless they are palpably wrong, manifestly unjust, or without supporting evidence." McCoy v. McCoy, 549 So.2d 53, 57 (Ala.1989). However, when the trial court improperly applies the law to the facts, no presumption of correctness exists as to the court's judgment. Gaston, supra; Smith v. Style Advertising, Inc., 470 So.2d 1194 (Ala.1985); League v. McDonald, 355 So.2d 695 (Ala.1978).
We find the evidence insufficient to support the novation theory. ...
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