Pratt Capital, Inc. v. Boyett

• Decision Date: 28 June 2002
• Parties: PRATT CAPITAL, INC. v. Thomas BOYETT and Nelda Boyett.
• Court: Alabama Supreme Court

840 So.2d 138

PRATT CAPITAL, INC. v. Thomas BOYETT and Nelda Boyett.

1001653.

Supreme Court of Alabama.

June 28, 2002.

J. Myron Smith, Prattville, for appellant. Clifford W. Cleveland and Kelly Tipton Lee of Cleveland & Colley, P.C., Prattville, for appellees Thomas Boyett and Nelda Boyett.

Harry W. Gamble, Jr., of Gamble, Gamble & Calame, L.L.C., Selma, for appellee The Peoples Bank & Trust Company.

MADDOX, Retired Justice.

The dispositive issue presented by this appeal is whether the plaintiffs can amend the complaint to add new defendants after a certificate of judgment had already been entered against the defendant named in the original complaint, where no appeal was taken from that judgment. Because we hold that, based on the facts of this case, the Alabama Rules of Civil Procedure do not permit the trial court to allow the plaintiffs to amend their complaint to add additional defendants after a certificate of judgment has been entered, we reverse the judgment of the trial court that permitted the plaintiffs to so amend their complaint, and we remand the cause to the trial court for further proceedings.

Facts

Because a statement of the facts of this case is helpful in understanding the reasons we conclude that the judgment of the trial court should be reversed, we set out those facts for a more complete understanding of what led to the original dispute between the original parties and why we conclude that the plaintiffs should not have been permitted to amend their original complaint to add Pratt Capital, Inc. ("Pratt Capital"), as a defendant. We will, however, confine our discussion to those facts and the procedural history that relate to the issue presented.

On August 27, 1999, the plaintiffs, Thomas Boyett and Nelda Boyett, individually and doing business as Prattville Roller Rink (hereinafter referred to collectively as "the Boyetts"), sued George Creel in the Autauga Circuit Court,¹ alleging breach of contract, fraud, and conversion. The Boyetts alleged that they and Creel had agreed to acquire property in Elmore County on which they planned to build an entertainment facility to be known as the Action Zone. The Boyetts alleged that they had provided $61,500 for the purchase of the property and over $80,000 for improvements. They said that Creel had agreed to provide similar amounts of cash but that he did not. They also alleged that Creel had had title to the property placed in his name only, contrary to their agreement, and that on July 19, 1999, Creel had told them that the building would not be used for the Action Zone, but would be used for a restaurant. The Boyetts alleged that Creel stated that he would return the money the Boyetts had already invested within 30 days, i.e., by August 18, 1999. When Creel did not return the money, the Boyetts sued.

On September 27, 1999, Creel filed an answer. Neither party requested a trial by jury, and on October 25, 1999, the case was set for trial on February 1, 2000.

On November 5, 1999, Creel's attorney at that time filed a motion to withdraw as counsel, alleging that Creel had not complied with the employment agreement between Creel and him. On February 1, 2000, the case was continued, apparently because Creel did not attend the trial set on that date.

On March 1, 2000, the Boyetts filed a request for admissions, a motion to shorten time, and a motion to set the case for trial.² On March 7, 2000, the court ordered that Creel respond to the request for admissions on or before March 22, 2000.³ On March 21, 2000, the case was set for trial on April 25, 2000, at 1:30 p.m.

On March 22, 2000, the Boyetts filed a motion to compel discovery. In their motion they alleged that Creel had failed to respond to the request for admissions. On March 22, 2000, the court ordered that Creel respond to the request for admissions on or before April 5, 2000. On March 24, 2000, the Boyetts filed a motion for a summary judgment, alleging that, based on Creel's failure to respond to the request for admissions, there was no genuine issue of material fact and they were entitled to a judgment as a matter of law.

On March 29, 2000, the Boyetts' motion for a summary judgment was set for hearing on April 25, 2000, at 9:00 a.m. On April 19, 2000, Creel, represented by attorney J. Myron Smith, apparently responded to the request for admissions,⁴ but his response does not appear in the record before us. On April 22, 2000, just three days before the hearing on the motion for a summary judgment, Creel deeded the property that is the subject of this dispute to Pratt Capital; the president of Pratt Capital was Creel's attorney, J. Myron Smith. On April 25, 2000, the trial court entered a summary judgment for the Boyetts against Creel. The docket notation states, "Case called for testimony on damages. Testimony taken. Upon hearing the evidence, testimony on damages alone taken, Judgment is entered in favor of Thomas Boyett and Nelda Boyett and against George Creel in the amount of $168,767 compensatory damages plus $100,000 punitive damages plus cost of court."

On April 26, 2000, a certificate of judgment was issued. On May 25, 2000, Creel, appearing pro se, filed a motion to alter, amend, or vacate the judgment and for findings of fact. On June 6, 2000, the court denied the motion. Creel did not appeal.

On September 13, 2000, the Boyetts filed an amendment to their original complaint, attempting to add as additional parties Pratt Capital, Inc., The People's Bank & Trust Co., and fictitiously named defendants A, B, C, and D. On that same day, the Boyetts also filed a motion to set aside the transfer of the property by Creel to Pratt Capital, and they asked the court to perfect and enforce a lien on the property and to order its sale. On September 14, 2000, the Boyetts filed a motion for an injunction preventing Pratt Capital and Creel from encumbering or transferring the property.⁵ On September 25, 2000, the trial court set the motion for an injunction and the motion to set aside the transfer of property for a hearing on November 7, 2000, at 9:00 a.m. On October 20, 2000, Pratt Capital filed a motion to dismiss, alleging various grounds, including:

"The attempted Amendment of the cause of action originally filed against Defendant, George Creel, is improper in that such action was concluded by a judgment entered by the Court on August [sic] 25, 2000. There has been no appeal. The attempted Amendment erroneously presumes that the case remains an active viable action which is capable of amendment. In fact, the case had been finally concluded by entry of the judgment on August [sic] 25, 2000, which was some 19 [sic] days prior to the attempt at adding Pratt Capital, Inc., as a party and stating a cause of action against Pratt Capital, Inc.

"....

"The plaintiffs have erroneously attempted to add Pratt Capital, Inc., as a Defendant after the trial of their case and after judgment was rendered and the `Amendment to Complaint' is a nullity, and must be disallowed as to Pratt Capital, Inc."

(Emphasis original.) In the motion to dismiss Pratt Capital also alleged that Pratt Capital, Inc., was improperly named as a defendant and also as a garnishee, and that the motion to set aside the transfer of property should have been filed in Elmore County, where the real property was located, rather than in Autauga County. On October 31, 2000, the trial court set the motion to dismiss for hearing on November 20, 2000, and on November 7, 2000, the trial court made the following entries on the case action summary sheet:

"11-7-00 Motion for Injunction—argued—by agreement Injunction to issue—Pratt Capital is enjoined from further encumbering, transferring etc. to subject property. SR

"11-7-00 Motion to set aside transfer argued—granted—See Order to follow SR

"11-7-00 Motion to dismiss by Pratt Capital as set 11-20-00 argued this date—denied. SR"

On January 23, 2001, the trial court made the following entry on the case action summary sheet: "Motion to set aside transfer order of 11-7-00 is set aside. No written order following that 11-7-00 entry. Pratt Capital to file answer in 20 days. Case set for 2-20-01 @ 9:00 a.m." On February 20, 2001, the trial court made the following entry to the case action summary sheet: "Motion to set aside transfer is set for trial on 3-20-01 at 9:00 a.m. Before the Court this date, Plaintiff offers to move cause to Elmore County if Defendant Pratt Capital wants to change venue to Elmore County. Case transferred to Elmore County.... Case set in Elmore 3-28-01 @ 9:00 before this Judge."

On March 29, 2001, the trial court entered the following order on the motion to set aside the transfer of property:

"This cause coming on before this Court upon the Motion to Set Aside the Transfer of Real Estate as filed by the original Plaintiffs, Thomas and Nelda Boyett as against Pratt Capital, Inc., as filed in the original cause of action in Autauga County, Alabama, and upon taking testimony of this cause in Elmore County, Alabama, on the issue presented in said Motion the Court does hereby find as follows:

"By way of review, the Court does give this history:

"1. This cause was originally filed by the Plaintiffs against George Creel in Autauga County, Circuit Court with service on George Creel on August 27, 1999 for Breach of Agreement (Contract), Fraud and Conversion. Defendant filed Answer through Hon. Stephen Langham.

"2. Plaintiff files Motion for Summary Judgment, the same being granted and date being set for hearing on damages.

"3. Hearing on damages held on April 25, 2000, and judgment is entered in favor of Plaintiffs and against Defendant, George Creel in the sum of $268,767.00.

"4. Motion to Alter filed and denied.

"5. Plaintiff files Motion to Set Aside Transfer and adds Pratt Capital and People's Bank and Trust.

"6. Plaintiff files Process of Garnishment.

"7. Cause of Action transferred to Elmore County on motion for trial of issue of the setting aside the

...