Ex Parte Town of Lowndesboro
Ex Parte Town of Lowndesboro
Opinion
The plaintiffs below, the Town of Lowndesboro and Lee Frazer (hereinafter "the petitioners"), were awarded "interim" attorney fees and expenses in their declaratory-judgment action against the Alabama Department of Environmental Management ("ADEM"). The petitioners' declaratory-judgment action arose out of ADEM's approval of the construction of a landfill in Lowndes County. ADEM appealed the trial court's order, and the Court of Civil Appeals reversed the trial court's decision. Lowndesboro and Frazer then petitioned this Court for certiorari review. We granted the petition, and we now affirm the judgment of the Court of Civil Appeals.
In August 2000, while their appeal was pending before the EMC, the petitioners filed a declaratory-judgment action in the Montgomery Circuit Court alleging numerous statutory and regulatory violations by both ADEM and ADSL, including an allegation that ADEM had failed to adopt a State Solid Waste Management Plan ("State Plan") as a "final" regulation pursuant to Ala. Code 1975, §
In November 2000, the circuit court entered an order staying the appeal that was then pending before the EMC. ADEM and ADSL appealed that order, and while the appeal of that order was pending, ADEM adopted a State Plan, and the circuit court lifted the stay. The Court of Civil Appeals thus dismissed the appeal as moot. See Alabama Disposal Solutions-Landfill L.L.C., v.Town of Lowndesboro,
Shortly before the circuit court entered the summary judgment, the petitioners filed a motion requesting an award of attorney fees against ADEM. This request argued that, as a result of the petitioners' efforts, ADEM had adopted a State Plan that benefited the citizens of Lowndes County and of the State. The petitioners argued that under the common-benefit doctrine they were entitled to attorney fees, which they alleged totaled $1.6 million. In December 2002, the circuit court entered an order awarding the petitioners $338,618 in interim attorney fees and expenses. ADEM appealed; the Court of Civil Appeals reversed the circuit court's order, holding that an award of attorney fees and expenses against ADEM violated Ala. Const. 1901, § 14. See Alabama Dep't of Envtl Mgmt v. Town of Lowndesboro, [Ms. 2020385, April 8, 2005]
Hutchinson v. Board of Trs. of Univ. of Alabama,"During the early years of our history as a State our rule of state governmental responsibility was directly opposite from what it is today. Our first Constitution provided:
"`The general assembly shall direct, by law, in what manner, and in what courts, suits may be brought against the State.'
"Ala. Const. Art.
6 , §9 (1819)."The constitutional mandate of 1819 remained unchanged until the Constitution of 1865 was adopted when the provision granting a right to sue the state was changed to read:
"`That suits may be brought against the State, in such manner, and in such courts, as may be by law provided.'
"In 1875, the Legislature repealed all acts granting the right to sue the State, and the Constitution of 1875 contained a provision, that `The State of Alabama shall never be made defendant in any court of law or equity.' Section 15, Const, of Alabama, 1875. Section 14 of the 1901 Constitution is the same as Section 15 of the 1875 Constitution. *Page 1206 The adoption of the 1875 Constitution closed the door to litigants who had claims against the State, and the door has remained closed continuously by subsequent constitutional provisions and court decisions interpreting those provisions.
"Section
14 of the Alabama Constitution of 1901 specifically prohibits the State from being made a party defendant in any suit at law or in equity. This Court, construing Section 14, has held almost every conceivable type of suit to be within the constitutional prohibition."
Section 14 has been described as a "nearly impregnable" and "almost invincible" "wall" that provides the State an unwaivable, absolute immunity from suit any in any court.Alabama Agric. Meek Univ. v. Jones,
The appellate courts of this State have generally held that an action may be barred by § 14 if it seeks to recover damages or funds from the State treasury. Ex parte Alabama Dep't ofMental Health Mental Retardation,
This case presents an issue of first impression: whether § 14 prohibits an award of attorney fees and expenses against a department or agency of the State of Alabama. The Court of Civil Appeals held that the attorney-fee award in this case did violate § 14:
"We return to the language of the Constitution. Section 14 simply states that `the State of Alabama shall never be *Page 1207 made a defendant in any court of law or equity.' We likewise return to the basic principle that an action is one against the State when, among other things, the relief sought will impact the State treasury. . . . [W]e conclude that no decision of our Supreme Court stands as precedent for the proposition that the language of § 14 serves to protect the State treasury any differently from an award of attorney fees than from an award of money damages. Qualitatively, the effect on the treasury — and ergo the implication for the immunity of the State — would be the same in both cases.
"Corroborating the dispositive import of the basic principle against invasion of the state treasury that underlies our holding today is the recent decision of our Supreme Court inHaley v. Barbour County, [
"On appeal, the commissioner argued that the monetary sanctions violated § 14. The Supreme Court held:
ADEM v. Lowndesboro,"`Section 14 prohibits actions against state officers in their official capacities when those actions are, in effect, actions against the State. Lyons v. River Road Constr., Inc.,
858 So.2d 257 ,261 (Ala. 2003); Mitchell v. Davis,598 So.2d 801 ,806 (Ala. 1992). "In determining whether an action against a state officer or employee is, in fact, one against the State, [a] [c]ourt will consider such factors as the nature of the action and the relief sought." Phillips v. Thomas,555 So.2d 81 ,83 (Ala. 1989). Such factors include whether "a result favorable to the plaintiff would directly affect a contract or property right of the State," Mitchell,598 So.2d at 806 , whether the defendant is simply a "conduit" through which the plaintiff seeks recovery of damages from the State, Barnes v. Dale,530 So.2d 770 ,784 (Ala. 1988), and whether "a judgment against the officer would directly affect the financial status of the State treasury," Lyons,858 So.2d at 261 . Moreover, we note that claims against state officers in their official capacity are "functionally equivalent" to claims against the entity they represent. Hinson v. Holt,776 So.2d 804 ,810 (Ala.Civ.App. 1998). . . . In this case, the commissioner represents [the Department of Corrections], which, as a department of the State, is entitled to sovereign immunity. Rodgers v. Hopper,768 So.2d 963 ,968 (Ala. 2000) (holding that DOC is entitled to sovereign immunity under § 14, because a judgment against it would be paid from the treasury of the State)."`The issue presented in this case is whether, in light of § 14, the commissioner, in his official capacity, may be *Page 1208 assessed civil sanctions for his failure to comply with the trial court's injunctive orders. The parties are unable to provide this Court with any precedent directly addressing this issue; indeed, this Court has found no caselaw addressing whether § 14 prevents the trial court from assessing contempt sanctions against the State.
"`It is clear that. the particular sanctions in this case "directly affect the financial status of the state treasury." Lyons,
858 So.2d at 261 . While the counties claim that the sanctions punish the commissioner for his contempt and seek to compel compliance with the court's orders, the effect of the trial court's order is to impact the treasury and divest it of funds. Section lb, however, forbids such an assault on the state treasury. See Lyons,858 So.2d at 261 ; see also Patterson,835 So.2d at 142 (holding that § 14 prevents the State from being sued, and a suit against the state "`cannot be indirectly accomplished by suing its officers or agents in their official capacity, when a result favorable to plaintiff would be directly to affect the financial status of the state treasury.'" (quoting State Docks Comm'n v. Barnes,225 Ala. 403 ,405 ,143 So. 581 ,582 (1932))); and Southall v. Stricos Corp.,275 Ala. 156 ,158 ,153 So.2d 234 ,236 (1963) (holding that an action against an officer was not an action against the State, because the relief sought would not "take away any property of the State, or fasten a lien on it, or interfere with the disposition of funds in the treasury"). Thus, we hold that the trial court's order assessing against the commissioner in his official capacity monetary sanctions for contempt violates § 14.'"Haley,
885 So.2d at 788-89 (some emphasis original, some emphasis added; footnotes omitted). See also Alabama Agrie. Mech. Univ. v. Jones,895 So.2d [867 ] at872-73 [(Ala. 2004)] (denying a tenured professor's claim for retrospective monetary relief against the State in conjunction with injunctive relief because the retrospective monetary relief was prohibited by § 14); State v. Pullman-Standard Car,235 Ala. 493 ,179 So. 541 (1938) (holding that § 14 prohibits the awarding of costs against the State as a defendant); cf. State v. Inman,239 Ala. 348 ,359 ,195 So. 448 ,458 (1940) (opinion on rehearing) (distinguishing between an award of costs against the State, as a defendant, which is `against the provisions of [§ 14] of the Constitution,' and an award of costs against the State when it `is a party plaintiff)."In addition to the straightforward nature of the principle applied in Haley, that case's significance for our purposes today is further enhanced by two facts. First, the power to punish a party for contempt at issue in Haley is an inherent power of the court. See, e.g., Ex parte Wetzel,
243 Ala. 130 ,132 ,8 So.2d 824 ,825 (1942). Likewise, our courts have held that the equitable exception to the American rule regarding attorney fees upon which Lowndesboro and Frazer base their claim is attributable to the inherent power of the court. See, e.g., Alabama Alcoholic Beverage Control Bd. v. Pelham,855 So.2d [1070 ,1083 (Ala. 2003) ] (quoting Ex parte Horn,718 So.2d [694 ,702 (Ala. 1998) ]). The Supreme Court's decision in Haley stands for the proposition that the inherent nature of the trial court's power does not extend to an invasion of the state treasury in the face of a § 14 challenge."Moreover, Lowndesboro and Frazer's central argument regarding attorney fees is that an attorney-fee award *Page 1209 that would otherwise be permissible under our law (i.e., because it falls within one of the recognized exceptions to the American rule), is not barred by § 14 of the Constitution if the underlying claim in connection with which the claim for a fee is made is not barred by § 14. In Haley, however, the underlying claim was not barred by state immunity. That fact did not prevent the Supreme Court from unequivocally `drawing the line' at the plaintiffs' attempt to extend the State's vulnerability to suit to a form of relief that would invade the state treasury."
On appeal, Lowndesboro and Frazer argue that because the underlying action falls within an exception to the bar found in § 14 the award of interim attorney fees and expenses likewise is not barred. This Court has previously noted certain exceptions to § 14:
Ex parte Alabama Dep't of Transp.,"[Section] 14 sovereign immunity does not protect State officers and employees under circumstances where a plaintiff alleges that they acted `willfully, maliciously, illegally, fraudulently, in bad faith, beyond [their] authority, or under a mistaken interpretation of the law,' Phillips [v. Thomas,
555 So.2d 81 ,83 (Ala. 1989)], nor does it protect them from `a suit to compel the performance of a legal duty, a suit to enjoin the enforcement of an unconstitutional law, a suit to compel performance of a ministerial act, or a suit brought under the Declaratory Judgments Act.' Mitchell [v. Davis,598 So.2d 801 ,806 (Ala. 1992) ]."
The petitioners contend that the underlying action, which seeks a declaratory judgment, falls within an exception to § 14. Furthermore, the petitioners cite numerous cases that fell within exceptions to § 14 in which courts have awarded attorney fees against the State. See, e.g., Brown v.State,
None of these cases cited by the petitioners actually addresses whether § 14 bars an award of attorney fees against the State. As the Court of Civil Appeals noted:
ADEM v. Lowndesboro,"`For a case to be stare decisis on a particular point of law, that issue must have been raised in the action, decided by the court, and its decision made part of the opinion of the case; accordingly, a case is not binding precedent on a point of law where the holding is only implicit or assumed in the decision but is not announced.'
"20 Am.Jur.2d Courts § 153 (1995) (footnotes omitted). As our Supreme Court recently observed, `[a]rguments based on what courts do not say, logically speaking, are generally unreliable and should not be favored by the judiciary; this is especially true when the judiciary *Page 1210 is faced with, as we are here, a contrary constitutional mandate.' Ex parte James,
836 So.2d 813 ,818 (Ala. 2002) (emphasis added). See also Pennhurst State School Hosp. v. Haiderman,465 U.S. 89 ,119 (1984) (`"When questions of jurisdiction have been passed on in prior decisions sub silentio, this Court has never considered itself bound when a subsequent case finally brings the jurisdictional issue before us."' (quoting Hagans v. Lavine,415 U.S. 528 ,533 n. 5 (1974))); and American Portland Cement Alliance v. Environmental Protection Agency,101 F.3d 772 ,776 (D.C. Cir. 1996) ('That the court has taken jurisdiction in the past does not affect the analysis because jurisdictional issues that were assumed but never expressly decided in prior opinions do not thereby become precedents.')."
None of the cases cited by the petitioners holds that § 14 allows an award of attorney fees and expenses against the State; indeed, this issue, even if raised in those cases, was not decided by the courts and made part of the opinion of the case.2 Thus, those decisions cannot be binding precedent on the issue.
The petitioners further argue that this Court held inAlabama Alcoholic Beverage Control Board v. City ofPelham,
The petitioners also cite State Board of Education v.Waldrop,
Additionally, the fact that an action seeks a declaratory judgment and thus purportedly falls within an exception to § 14 does not necessarily open the doors of the State treasury to legal attack. The exception afforded declaratory-judgment actions under § 14 generally applies only when the action seeks "construction of a statute and how it should be applied in a given situation," Aland v. Graham,
Although the petitioners' underlying declaratory-judgment action may not have been barred by § 14,6 it is clear that an award of interim attorney fees and expenses impacts the State treasury and divests it of funds in the very way forbidden *Page 1212
by § 14. Haley v. Barbour County,
The petitioners argue that the Court of Civil Appeals' reliance on Haley was misplaced. Although Haley holds that § 14 forbids the State from being assessed a sanction for contempt, Haley cannot be construed, the petitioners contend, to hold that § 14 bars an award of attorney fees. Specifically, the petitioners note that inHaley the trial court awarded attorney fees against the State, and the State paid those fees. Because this Court, on the appeal from the award of sanctions, did not vacate the attorney-fee award, the petitioners maintain that Haley cannot stand for the proposition that § 14 bars an award for attorney fees. We disagree.
In Haley, funds were appropriated by the legislature to bring the Department of Corrections into compliance with certain orders of the trial court in that case. See Haley,
The petitioners further argue that their action "would have been cognizable" under
In James, three plaintiffs were awarded attorney fees in an action against the State. Two plaintiffs were awarded fees under
The holding of James, however, is inapplicable here. In that case, we held that the plaintiffs' pleadings invoked
The petitioners further argue that if this Court holds that § 14 bars an award of attorney fees and expenses, it should apply this rule prospectively and allow the award in this case to stand. The petitioners contend that applying our ruling retroactively — thus vacating the award in this case — would amount to "changing the rules after the game has been played." The petitioners, however, cite no authority in their initial brief in support of this argument.
McCullar v. Universal Underwriters Life Ins. Co.,"The United States Supreme Court has suggested consideration of the following factors in choosing whether to apply a judicial decision prospectively:
"`First, the decision to be applied nonretroactively must establish a new principle of law, either by overruling clear past precedent on which litigants may have relied, see, e.g., Hanover Shoe, Inc. v. United Shoe Machinery Corp., [
392 U.S. 481 ,496 ,88 S.Ct. 2224 ,2233 ,20 L.Ed.2d 1231 (1968) ] . . . or by deciding an issue of first impression, whose resolution was not clearly foreshadowed, see, e.g., Allen v. State Board of Elections, [393 U.S. 544 ,572 ,89 S.Ct. 817 ,835 ,22 L.Ed.2d 1 (1969) ]. Second, it has been stressed that "we must . . . weigh the merits and demerits in each case by looking to the prior history of the rule in question, its purpose and effect, and whether retrospective operation will further or retard its operation." Linkletter v. Walker, [381 U.S. 618 ,629 ,85 S.Ct. 1731 ,1737-38 ,14 L.Ed.2d 601 (1965) ]. Finally, we have weighed the inequity imposed by retroactive application, for "[w]here a decision of this Court could produce substantial inequitable results if applied retroactively, there is ample basis in our cases for avoiding the `injustice or hardship' by a holding of nonretroactivity."'"
As we noted above, there is no "clear past precedent" indicating that an award of attorney fees and expenses against the State is not barred by § 14; thus, we are not required to overrule any prior caselaw. Indeed, as noted above, this case presents an issue of first impression. Moreover, several Justices have previously questioned whether § 14 immunity would bar an attorney-fee award, especially in the absence of a federal law that would arguably override such immunity.State v. *Page 1214 Brown,
Moreover, this Court has declined to give constitutional rulings prospective-only application. In Alabama State DocksTerminal Ry. v. Lyles,
"In general, with regard to civil matters, prospective-only decision-making within the realm of constitutional law is disfavored. `Since the Constitution does not change from year to year; since it does not conform to our decisions, but our decisions are supposed to conform to it; the notion that our interpretation of the Constitution in a particular decision could take prospective form does not make sense.' American Trucking Ass'ns, Inc. v. Smith,
496 U.S. 167 ,201 ,110 S.Ct. 2323 ,110 L.Ed.2d 148 (1990) (Scalia, J., concurring)."Even when this Court is not applying a rule of constitutional or statutory law, but is only addressing the effects of decisional law, our strong inclination is to avoid establishing rules that are to be applied prospectively only:
"`Although circumstances occasionally dictate that judicial decisions be applied prospectively only, retroactive application of judgments is overwhelmingly the normal practice. McCullar v. Universal Underwriters Life Ins. Co.,
687 So.2d 156 (Ala. 1996) (plurality opinion). "Retroactivity `is in keeping with the traditional function of the courts to decide cases before them based upon their best current understanding of the law It also reflects the declaratory theory of law. . . . according to which the courts are understood only to find the law, not to make it.'"687 So.2d 156 , quoting James B. Beam Distilling Co. v. Georgia,501 U.S. 529 ,535-56 ,111 S.Ct. 2439 ,2443-44 ,115 L.Ed.2d 481 (1991).'"Professional Ins. Corp. v. Sutherland,
700 So.2d 347 ,352 (Ala. 1997)."
Because prospective-only application of judgments is disfavored, especially within the realm of constitutional law, our judgment must apply retroactively. Therefore, the award of interim attorney fees and expenses in this case must be vacated.
AFFIRMED.
NABERS, C.J., and SEE, LYONS, HARWOOD, WOODALL, STUART, BOLIN, and PARKER, JJ., concur.
"But we have held that when an officer of the State is confronted with an uncertain problem of what the law means which requires certain acts on his part, or whether the law is valid, and he proposes to pursue a certain course of conduct in that connection, which would injuriously affect the interests of others who contend that he has no legal right thus to act, there is thereby created a controversy between them and the Declaratory Judgments Act furnishes a remedy for either party against the other to declare the correct status of the law. The purpose is to settle a controversy between individuals, though some of them may be State officers."
See also Thurlow v. Berry,
"Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress. . . . "
Reference
- Full Case Name
- Ex Parte Town of Lowndesboro and Lee Frazer. (In Re Alabama Department of Environmental Management v. Town of Lowndesboro and Lee Frazer).
- Cited By
- 66 cases
- Status
- Published