TURENNE v. TURENNE

• Decision Date: 30 December 2003
• Citation: 884 So.2d 844
• Parties: Roger W. TURENNE et al. v. Patti W. TURENNE et al.
• Court: Alabama Supreme Court

884 So.2d 844

Roger W. TURENNE et al. v. Patti W. TURENNE et al.

1021056.

Supreme Court of Alabama.

December 30, 2003.

Eddie Leitman and Christopher R. Hood of Leitman, Siegal & Payne, P.C., Birmingham, for appellants.

Thomas G. Mancuso and Robert E. Poundstone IV of Maynard, Cooper & Gale, P.C., Montgomery; and Robert W. Tapscott, Jr., of Maynard, Cooper & Gale, P.C., Birmingham, for appellees.

HARWOOD, Justice.

This appeal arises from a second lawsuit involving Roger W. Turenne and Patti W. Turenne. The dispute concerns a marital settlement agreement, which was incorporated and merged into the parties' divorce judgment. In the first lawsuit, Roger filed a motion for relief in the domestic relations division of the Montgomery Circuit Court, asserting that his former wife had not complied with some of the terms of their marital settlement agreement. On April 15, 2002, the domestic relations court entered an order; that order stated:

"The Court ... finds that the Domestic Relations Division is not the proper forum to hear the issues being complained of concerning the contractual obligations of the parties as [they] relate[ ] to the nursing home and retirement matters.¹

"For the foregoing reason, the requested actions by the parties in the Domestic Relations Division are hereby terminated and this file is closed.

"The parties may seek their relief through the Circuit Court of Montgomery County, Alabama."

Roger did not appeal from this order.

On May 14, 2002, Roger W. Turenne, the Roger W. Turenne 2001 Revocable Trust, and Turenne PharMedCo, Inc. (hereinafter referred to collectively as "the plaintiffs"), sued Patti W. Turenne, individually and as trustee of the Patti W. Turenne Revocable Trust; Christopher R. Schmidt, Patti's son, as trustee of the Patti W. Turenne Revocable Trust; Timothy W. Schmidt, Patti's son, as trustee of the Patti W. Turenne Revocable Trust; Talladega Healthcare Center, Inc.; Albertville Healthcare Center, Inc.; Hillview Properties, LLC; as well as other fictitiously named defendants, on claims alleging in count I, fraudulent inducement; in count II, suppression of material facts; in count III, breach of contract against Patti Turenne; in count IV, breach of contract against Talladega Healthcare Center, Inc., Albertville Healthcare Center, Inc., and Hillview Properties, LLC; in count V, anticipatory breach of contract against Talladega Healthcare Center, Inc., Albertville Healthcare Center, Inc., and Hillview Properties, LLC; and in count VI and count VII, money due and owing.

Patti Turenne, Christopher Schmidt, Timothy Schmidt, Talladega Healthcare Center, Inc., Albertville Healthcare Center, Inc., and Hillview Properties, LLC, moved to dismiss counts I (fraudulent inducement), II (suppression of material facts), III (breach of contract as to Patti Turenne), and V (anticipatory breach of contract as to Talladega Healthcare Center, Inc., Albertville Healthcare Center, Inc., and Hillview Properties, LLC) because, they stated in their motion, "as a matter of law, these claims fail to state claims upon which relief can be granted." The motion to dismiss also stated that those four claims "all stem[med] from a Marital Settlement Agreement entered between [Roger Turenne] and Plaintiff's former wife, Defendant Patti Turenne." The plaintiffs filed a response in opposition to the motion to dismiss. The circuit court granted the motion to dismiss, stating in relevant part:

"The Court finds that Counts I, II, III and V of Plaintiffs' Complaint arise out of the Marital Settlement Agreement, and accordingly, the Court holds that it is without jurisdiction to adjudicate said claims, and that the appropriate court to hear such claims is the Domestic Relations Division of the Circuit Court of Montgomery County, Alabama.

"The Court hereby grants Defendants' Motion and dismisses Counts I, II, III and V of Plaintiffs' Complaint.

"With respect to the dismissal of Counts I, II, III and V, the Court hereby directs entry of a final judgment as to the dismissal of these claims, as the Court expressly determines that there is no just reason for delay and expressly directs the entry of judgment, as the Court finds that appellate review of this Order will expedite the ultimate resolution of the above-styled cause."

The plaintiffs appeal, arguing that "the trial court erred in holding that it was without jurisdiction to adjudicate the claims stated in Counts I, II, III, and V of Plaintiffs' Complaint."

The standard of review for a motion to dismiss is well-settled.

"`The appropriate standard of review of a trial court's [ruling on] a motion to dismiss is whether "when the allegations of the complaint are viewed most strongly in the pleader's favor, it appears that the pleader could prove any set of circumstances that would entitle [the pleader] to relief." Nance v. Matthews, 622 So.2d 297, 299 (Ala.1993); Raley v. Citibanc of Alabama/Andalusia, 474 So.2d 640, 641 (Ala.1985). This Court does not consider whether the plaintiff will ultimately prevail, but only whether the plaintiff may possibly prevail. Nance, 622 So.2d at 299. A "dismissal is proper only when it appears beyond doubt that the plaintiff can prove no set of facts in support of the claim that would entitle the plaintiff to relief." Nance, 622 So.2d at 299; Garrett v. Hadden, 495 So.2d 616, 617 (Ala.1986); Hill v. Kraft, Inc., 496 So.2d 768, 769 (Ala.1986).'

"Lyons v. River Road Constr., Inc., 858 So.2d 257, 260 (Ala.2003)."

Liberty Nat'l Life Ins. Co. v. University of Alabama Health Servs. Found., P.C., 881 So.2d 1013, 1017 (Ala.2003).

The record reveals that on December 12, 2001, Roger Turenne and Patti Turenne entered into a marital settlement agreement. On December 13, 2001, a final judgment of divorce was entered, divorcing Roger Turenne and Patti Turenne. The judgment stated, in pertinent part, that "the `Marital Settlement Agreement' entered into between the parties on the 12 day of December, 2001, is hereby incorporated and merged into this Order, the same to be legally binding on both parties and enforceable by either." The marital settlement agreement provided for a property division between Roger Turenne and Patti Turenne. Before their divorce, the couple jointly owned several businesses, including a medical-supply company and two nursing homes. Under the agreement, Roger received, among other things, PharMedCo, a pharmaceutical and medical-supply company, and Patti received the two nursing homes — Albertville Healthcare Center, Inc., and Talladega Healthcare Center, Inc. Hillview Properties, LLC, operates a nursing home under the name Hillview Terrace. According to the plaintiffs' complaint, "Patti Turenne is a 60% member of Hillview Properties, and ... Chris Schmidt is a 40% member of Hillview Properties." The marital settlement agreement did not purport to change the ownership of Hillview Properties.

Section 3.3(D) of the marital settlement agreement provided:

"Pursuant to the `Interim Settlement Agreement'² dated September 20, 2001, PharMedCo and Albertville Healthcare Center and Talladega Healthcare Center shall execute a pharmacy and medical supply agreement developed on terms and conditions satisfactory to both parties, but which shall provide generally for a term of 4 years, prudent buyer standards, and other customary terms and conditions for Albertville and Talladega. The contract will be for four (4) years at Albertville Healthcare Center and Talladega Healthcare Center commencing effective as of the signing of the contracts. PharMedCo and Hillview Terrace Facility shall enter into an extension of the existing contract for an additional three years at Hillview Terrace Facility commencing effective from its current termination date. The contracts for Albertville, Talladega and the contract extension for Hillview will be signed not later than January 31, 2002. If not signed by that date, the court will be requested to resolve or appoint a mediator to resolve that issue. In the event of a change of control for PharMedCo, said change of control being defined as a fifty (50%) percent or more change in ownership, during the term of the Albertville and Talladega contracts, either party shall have the right to terminate such contract."

The contracts between PharMedCo and Albertville Healthcare Center and Talladega Healthcare Center, as well as the contract extension between PharMedCo and Hillview Properties, were not signed by January 31, 2002.

The plaintiffs argue on appeal that "the Civil Division of the Circuit Court of Montgomery County is the appropriate forum in which to litigate [their] claims...." They explain:

"The Domestic Court properly exercised its preference not to retain jurisdiction over the claims that are the subject of this appeal, as it recognized that those claims were in essence nothing more than a commercial dispute, and accordingly held that the Domestic Relations Division of the Circuit Court of Montgomery County was not the proper forum within which to litigate those claims. Therefore, the judgment of the trial court is due to be reversed."

The judgment divorcing Roger and Patti specifically stated that "the `Marital Settlement Agreement' entered into between the parties on the 12 day of December, 2001, is hereby incorporated and merged into this Order, the same to be legally binding on both parties and enforceable by either." In Killen v. Akin, 519 So.2d 926, 930 (Ala.1988), this Court explained:

"`The question whether a separation agreement or a property

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