Baldwin County Elec. Membership Corp. v. City of Fairhope
Baldwin County Elec. Membership Corp. v. City of Fairhope
Opinion
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 450
This appeal and cross-appeal arise out of a civil action between two electric suppliers — Baldwin County Electric Membership Corporation ("Baldwin") and the City of Fairhope ("Fairhope"). Baldwin alleges that Fairhope is wrongly supplying electricity to premises Baldwin should be serving under the Service Territories for Electric Suppliers Act, §
Baldwin appeals, arguing that the trial court erred by admitting certain evidence at trial and by refusing to give certain jury instructions Baldwin requested. In its cross-appeal, Fairhope argues that the trial court erred by denying Fairhope's motions for a judgment as a matter of law because, Fairhope alleges, Baldwin did not provide notice to Fairhope as required by the Act and because Baldwin's claims were untimely. We find no merit in Baldwin's appeal and therefore affirm the decision of the trial court, rendering moot Fairhope's cross-appeal, which we dismiss.
Before trial, Baldwin filed a motion in limine, asking the court to exclude "any evidence of an oral territory service agreement allegedly entered into by the parties prior to passage of [the Act]," and argued that, even if such an agreement existed, it *Page 452 had been abrogated by the enactment of the Act. Similarly, Fairhope filed a motion in limine, seeking to exclude evidence of those claims Fairhope argued were time-barred. The trial court denied both motions. The action was tried by a jury, which rendered a general verdict in favor of Fairhope. As the prevailing party, Fairhope sought, and was awarded, attorney fees, costs, and expenses totaling $295,945.27. See § 87-14-37(b), Ala. Code 1975.6 Baldwin now appeals from the judgment entered on the jury verdict and asks this Court to set aside the fee award. Fairhope cross-appeals, arguing that the trial court erred by denying its motions for a judgment as a matter of law because, it says, Baldwin failed to establish that its claims were timely or, alternatively, because, it says, Baldwin failed to prove that it had provided notice to Fairhope that Baldwin believed Fairhope was wrongly providing electric service to customers.
"`"The second principle `is that a judgment cannot be reversed on appeal for an error [in the improper admission of evidence] unless . . . it should appear that the error complained of has probably injuriously affected substantial rights of the parties.'"`" Middleton,
A motion in limine seeking to exclude evidence, which is denied by the trial court, is, "unless the court clearly indicates to the contrary, the legal equivalent of an announcement by the court that it reserves the right to rule on the subject evidence when it is offered and is not a final ruling made in a pre-trial context." Owens-Corning Fiberglass Corp. v. James,
"An appellant who suffers an adverse ruling on a motion to exclude evidence, made in limine, preserves this adverse ruling for post-judgment and appellate review only if he objects to the introduction of the proffered evidence and assigns specific grounds therefor at the time of the trial, unless he has obtained the express acquiescence of the trial court that subsequent objection to evidence when it is proffered at trial and assignment of grounds therefor are not necessary."
Baldwin argues that the trial court's denial of its motion in limine was "unequivocal . . . absolute and unconditional" and that an objection was therefore unnecessary. Baldwin's reply brief at 5. In support of this argument, Baldwin quotes the trial court as saying that "[t]he issue that I think needs to be presented to the jury is, is there a contract, or is there not a contract between the parties. After that it seems to me all of this is just details." Baldwin's reply brief at 6. Although the trial court did make this statement, it was not made in reference to Baldwin's motion in limine.10 The trial court denied Baldwin's motion in limine, saying: "I am going to deny the motion in limine as to the oral agreement. I think we have got some other matters." Although the record certainly supports an argument that the trial court made statements indicating that it believed that the oral-agreement issue was dispositive, the record does not reflect that the trial court "clearly indicated" that further objections to the admission of evidence of the oral service-territory agreement *Page 455
were unnecessary or that Baldwin obtained the "express acquiescence" of the trial court that subsequent objections to such evidence were not required. Liberty National,
Because Baldwin's motion in limine was insufficient to preserve for appeal the question of the admissibility of evidence of the oral service-territory agreement, we are left to address whether Baldwin took the appropriate steps during trial to pre-serve the issue for appeal. For Baldwin to preserve error, it had to make "a timely objection . . ., stating the specific ground of objection, if the specific ground was not apparent from the context." Rule 103, Ala. R. Evid. See also Ex parteWilliamson,
Baldwin argues that it made a timely objection when the evidence was introduced. Baldwin's reply brief at 6. Fair-hope, on the other hand, argues that Baldwin failed to object in a timely manner.
Fairhope's brief at 40. The record supports Fairhope's argument.
During Fairhope's cross-examination of Baldwin's first witness, John Larson, at one time a supervisor of engineering and engineering services for Baldwin, the following colloquy occurred, without objection:
*Page 456"Q. Now, you had a number of discussions, did you not, over the years with Mr. Aaron Norris [of the City of Fair-hope] here concerning electric territories and who was going to serve particular subdivisions and who was going to serve particular customers, as they came up, did you not?
"A. We have had multiple conversations, yes.
"Q. And Mr. Norris in those multiple conversations on this subject told you consistently, did he not, that the city of Fairhope was going to serve subdivisions and customers within its city limits, based on an agreement that had been entered into between Baldwin EMC and Fairhope, correct?
"A. I've heard Mr. Norris mention that there was an agreement, but, as far as us discussing an agreement, no, I've never discussed an agreement with Mr. Norris.
"Q. But he told you on these occasions that they were going to serve these customers based on this agreement, did he not?
"A. He said he was going to serve this subdivision because it was in the city limits.
"Q. Because there was an agreement that they could serve in the city limits? "A. I don't know if that was in every conversation or not.
"Q. He told you that on at least some of the occasions, did he not?
"A. He has mentioned that to me.
"Q. You never objected to that, did you?"A. No, because I do not know of any agreement.
"Q. You never denied the existence of an agreement to him, did you?
"A. No, because I didn't discuss it with him.
". . . .
"Q. In fact, the City of Fairhope sent [Baldwin] a letter which said that under our agreement we have no intent to serve any customers off of this line outside the city limits, didn't they?
"A. I don't know if it was mentioned in there of any agreement. But it just said that they did not plan to serve any of our customers. But I don't believe there was any mention of an agreement in that letter."
On redirect, Baldwin's counsel had the following exchange with Larson:
"Q. Let me see if this is a fair statement. Did Mr. Norris ever at any point in time dispute the fact that if you go by the closer-to rules, the territory, the premises that we are arguing about, are in [Baldwin's] service territory? Did he ever dispute that?
"A. Not that I remember.
"Q. What Mr. Norris said was that he felt like the City had a right to serve it under some preexisting oral agreement?
"A. That's what I understand. That's correct.
"Q. If it's in the city limits, the City can serve it, regardless of what [the Act] said?
"A. That's correct.
"Q. Did he ever produce for you any sort of agreement to that effect?
"A. No, he did not.
"Q. Have you ever seen any acknowledgment of an agreement to that effect in [Baldwin's] files?
"A. No, I have not."
From these exchanges it is clear that Baldwin not only failed to object to the introduction of evidence concerning the oral agreement, but also elicited evidence concerning it. It does not appear that Baldwin objected to Fairhope's admission of evidence concerning the alleged oral agreement until Fairhope's direct examination of Jim Nix, a former mayor of Fairhope, in which the following occurred:
"Q. Was there ever any concern expressed to you by Baldwin about the fact that City of Fairhope might be going outside its city limits to pick up electric customers?
"A. Well, they didn't like it.
"Q. Didn't like it. Was there anything said to you about that by anybody from Baldwin EMC?
"A. Yes. Don Sutherland, he was the manager at the time. He talked to me. That's when we worked out an agreement with him.
"[BALDWIN'S COUNSEL]: We object to any testimony concerning the agreement for the reasons we argued to Your Honor this morning.
"THE COURT: Overruled.
"[BALDWIN'S COUNSEL]: We ask that we be given a standing objection so that we don't need to repeatedly object. "THE COURT: You have your objection."
Baldwin argues, without citing any authority, that "it was unnecessary for [Baldwin] to object to this testimony during Fair-hope's cross-examination of [Baldwin]'s witness (Larson) because his brief testimony was not substantive evidence that the parties had entered into an agreement nor did it address in any way the contents of *Page 457 the claimed agreement." Baldwin's reply brief at 7. Baldwin's argument is unpersuasive. Larson's testimony, as quoted above, appears, in fact, to be substantive evidence as to the existence of the alleged oral agreement and, in some measure, the substance of it. This was the exact type of evidence Baldwin sought to exclude with its motion in limine. See Baldwin's motion in limine ("[Baldwin] seeks the issuance of an order precluding the parties from making any reference to or submitting any evidence concerning the oral service territory agreement which Fairhope contends that it entered into with [Baldwin]." (emphasis added)).
It is clear from the second question that Fairhope asked during its cross-examination of Larson that Fairhope was attempting to introduce the testimony Baldwin alleged was improper. Baldwin was required to object at that time, and it did not.HealthTrust,
The earlier recited testimony of Larson also supports Fairhope's second argument that Baldwin cannot allege prejudice, even if the trial court's ruling on the evidence was erroneous. Baldwin, by eliciting testimony about the oral service-territory agreement on redirect examination and by failing to object to Fairhope's cross-examination of Larson, cannot now claim to have been prejudiced by similar evidence later admitted over its objection. See B M Homes, Inc. v. Hogan,
Finally, even assuming that Baldwin could allege that it was prejudiced by the admission of the evidence, it does not appear that Baldwin has effectively made that argument.12 The burden is on Baldwin to do so. See Middleton,
Because Baldwin has not preserved for appellate review its objection to the testimony regarding the existence of an oral agreement and because Baldwin has not, and, in fact, cannot, demonstrate that it was prejudiced by the trial court's evidentiary ruling, we affirm the judgment of the, trial court on this issue.
Baldwin now argues that it was prejudicial error for the trial court to refuse to give Baldwin's requested jury instructions on those statutes. Baldwin contends that the jury should have been instructed that "Alabama law mandates that contracts of municipalities be in writing, executed by the proper city official and by the other contracting party, and that Alabama law also addresses the role of [Baldwin]'s Board of Trustees in approving contracts to which [Baldwin] is a party." Baldwin's brief at 37. Baldwin argues that this error was further compounded by an instruction that the trial court did give, which stated that "there is no rule of law that all contracts must be in writing." Baldwin's brief at 37.
Fairhope argues, however, that "Bald-win's failure to even mention its defenses based on these statutes prior to the last day of trial justified the trial court's refusal of the proposed jury charges." Fairhope's brief at 61. Relying on Rule 8(c), Ala. R. Civ. P., 17 Fairhope contends that Baldwin's jury charges "related to two unpleaded affirmative defenses to the counterclaim asserted by Fairhope. These defenses should have been raised in a responsive pleading before trial, not in a motion to strike in the middle of trial and in jury charges offered at the end of trial." Fairhope's brief at 62. Fairhope argues that Baldwin waived these defenses by failing to appropriately and timely plead them in its answer to Fairhope's counterclaim. Fairhope's brief at 62. We agree.
"The rule is that a party is entitled to have his theory of the case, made by the pleadings and issues, presented to the jury by the proper instructions." Alabama Farm Bureau Mut. Ins.Serv., Inc. v. Jericho Plantation, Inc.,
The record supports Fairhope's claim that Baldwin did not answer Fairhope's counterclaim or address either of these statutes or defenses until the last day of the trial, which was 13 years after the original pleadings and 3 years after Fair-hope last asserted its counterclaims. Baldwin's answer, which was filed without leave of court, was untimely.See Rule 12(a), Ala. R. Civ. P. ("A party served with a pleading stating a cross-claim against that party shall serve an answer thereto within thirty (30) days after the service upon that party. The plaintiff shall serve a reply to a counterclaim in the answer within thirty (30) days after service of the answer or, if a reply is ordered by the court, within thirty (30) days after service of the order, unless the order otherwise directs."); Rule 15, Ala. R. Civ. P. ("Unless a court has ordered otherwise, a party may amend a pleading without leave of court, but subject to disallowance on the court's own motion or a motion to strike of an adverse party, at any time more than forty-two (42) days before the first setting of the case for trial, and such amendment shall be freely allowed when justice so requires. Thereafter, a party may amend a pleading only by leave of court, and leave shall be given only upon a showing of good cause.").
Therefore, Baldwin's affirmative defenses, asserted in its untimely pleading, are waived. Rule 8(c), Ala. R. Civ. P.See also McCrary v. Butler,
Because Baldwin's claims were not properly before the trial court, the trial court did not err by refusing to give the two instructions Baldwin requested on Bald-win's untimely defenses.19 *Page 462
1060475 — AFFIRMED
1060545 — APPEAL DISMISSED.
COBB, C.J., and WOODALL, SMITH, and PARKER, JJ., concur.
section.
"(1) . . . [E]ach electric supplier is hereby granted a legislative franchise and assigned the sole obligation, in areas out side existing municipal limits and within existing municipal limits to the extent the standards of this section are made applicable by subdivision (a)(5) of SectionSee also Alabama Power Co. v. Citizens of Alabama,37-14-33 , for provision of retail electric service to all new premises located in closer proximity to existing distribution lines of such supplier than the nearest existing distribution lines of any other electric supplier (including areas annexed to municipalities on or after April 26, 1984 whether or not a municipal franchise has been granted to the electric supplier to whom an area annexed has been assigned or to any other electric supplier). . . . Thus, the assigned service area of each electric supplier in areas outside existing municipal limits is defined as the area or areas consisting of a line or lines drawn equidistant between the existing distribution lines of such electric supplier and the nearest existing distribution line of any other electric supplier. Where a premises is located in the assigned service area of two electric suppliers, the supplier in whose assigned area the majority of the square footage of the premises falls shall provide the service."
"(b) If an electric supplier believes that another electric supplier has already rendered or extended electric service at retail to a premise which was designated to be served by the aggrieved electric supplier, the aggrieved electric supplier shall give notice in writing to the offending electric supplier of the potential violation of this article. The offending electric supplier shall have 45 days to determine whether it is in violation of this article. . . . If the offending electric supplier does not cease rendering service and remove its distribution facilities within the 45 day period or within such longer period designated by the aggrieved electric supplier, the aggrieved electric supplier may file suit . . . to enjoin the offending electric supplier from continuing such rendition or extension and for damages. If a violation of this article is proved, the offending electric supplier shall (1) remove its facilities constructed for the rendition of retail electric service to the premises at the time and upon the schedule designated in writing by the aggrieved electric supplier; and (2) pay to the aggrieved electric supplier 25 percent of the gross revenues derived by the offending electric supplier from the sale of electric service in violation of this article from and after the date that is 45 days after the date on which the notice of violation was given."
"In addition [if the aggrieved electric supplier is successful], the offending electric supplier shall reimburse the aggrieved electric supplier for all witness fees, court costs, reasonable attorney fees and other expenses incurred in any litigation to enforce the aggrieved electric supplier's rights under this article. If the violation is not proved, the aggrieved electric supplier shall reimburse the offending electric supplier for all witness fees, court costs, reasonable attorneys fees and other costs incurred in the litigation. All actions or proceedings for injunction or for damages shall be brought within three years after the offending electric supplier first renders or extends electric service at retail in violation of this article."
"Contracts entered into by a municipality shall be in writing, signed and executed in the name of the city or town by the officers authorized to make the same and by the party contracting. In cases not otherwise directed by law or ordinance, such contracts shall be entered into and executed by the mayor in the name of the city or town and all obligations for the payment of money by the municipality, except for bonds and interest coupons, shall be attested by the clerk."
"A cooperative shall have the power:
". . . .
"(13) To make any and all contracts necessary or convenient for the full purpose of the powers in this chapter granted . . . and in connection with any such contract to stipulate and agree to such covenants, terms and conditions as the board of trustees may deem appropriate. . . ."
Baldwin's second argument is that the alleged agreement was rendered void and unenforceable upon the passage of Act because the agreement contained territorial-assignment rules that were contrary to those established in the Act. Baldwin's brief at 30-31. Put another way, Baldwin argues that the alleged agreement was in derogation of the Act and was, therefore, void and unenforceable, citing Marx v. Lining,
Third, Baldwin argues that it was reversible error for the trial court to admit evidence of the alleged oral agreement because the agreement was not in writing, as required by §
Finally, Baldwin asserts that evidence of the alleged oral service-territory agreement should not have been admitted because, it argues, the alleged agreement lacked sufficient certainty to be enforceable. Baldwin's brief at 38.
"We respectfully except to Your Honor's refusal to give the two additional charges that were presented earlier today. The first charge, it's not numbered, but it is the charge that states that contracts entered into by municipalities shall be in writing, signed and executed in the name of the proper officer. It's quoted from section11-47-5 of the [Alabama] Code [1975],". . . .
"The other charge is a similar charge that relates to contracts executed by Coops, and it is a quotation from § 37-6-313 of the [Alabama] Code [1975]."
It appears that Baldwin's objection is insufficient to preserve this issue for appeal. See Burnett v. Martin,
"Contracts entered into by a municipality shall be in writing, signed and executed in the name of the city or town by the officers authorized to make the same and by the party contracting. In cases not otherwise directed by law or ordinance, such contracts shall be entered into and executed by the mayor in the name of the city or town and all obligations for the payment of money by the municipality, except for bonds and interest coupons, shall be attested by the clerk."
"A cooperative shall have the power:". . . .
"(13) To make any and all contracts necessary or convenient for the full purpose of the powers in this chapter granted . . . and in connection with any such contract to stipulate and agree to such covenants, terms and conditions as the board of trustees may deem appropriate. . . ."
"In pleading to a preceding pleading, a party shall set forth affirmatively . . . statute of frauds . . . and any other matter constituting an avoidance or affirmative defense."
Reference
- Full Case Name
- Baldwin County Electric Membership Corporation v. City of Fairhope. City of Fairhope v. Baldwin County Electric Membership Corporation.
- Cited By
- 13 cases
- Status
- Published