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First Southern Development Corp. v. Chandler

Citations: 494 So. 2d 63; 1986 Ala. LEXIS 3701Docket: 85-518

Court: Supreme Court of Alabama; July 25, 1986; Alabama; State Supreme Court

Narrative Opinion Summary

In this case, a petition for a writ of mandamus was filed to challenge a trial court's order requiring the deposit of ownership documents pending the execution of an $818,000 judgment in favor of First Southern Development Company. The case arose from a lawsuit involving a $2.1 million note, with Chandler Associates and Terry W. Chandler, providing a personal guaranty. After First Southern Development obtained a summary judgment, it sought immediate execution of assets or their delivery during the automatic stay period. The trial court granted the latter, prompting Chandler, a Florida resident, to argue the court lacked jurisdiction over out-of-state assets. The court acknowledged that execution must occur in the property's state of location and that the order exceeded its jurisdiction by requiring asset deposits that included out-of-state property. Despite Chandler not filing a supersedeas bond, a $250,000 bond was posted in response to a stay order. The writ of mandamus was granted, directing rescission of the order mandating document deposits, as it was clarified that Chandler could not be compelled to bring Florida property into Alabama for execution.

Legal Issues Addressed

Affidavit Requirement for Immediate Execution

Application: To seek immediate execution of a judgment, the requesting party must provide sufficient cause via an affidavit, which First Southern Development did.

Reasoning: Section 6-9-22 mandates that a party seeking immediate execution must provide sufficient cause via an affidavit, which First Southern Development did.

Jurisdiction Over Out-of-State Property

Application: The court in Alabama does not have the authority to compel a Florida resident to deposit property located in Florida for execution of a judgment in Alabama.

Reasoning: Chandler, a Florida resident, contends that the court lacked authority to compel him to present assets located in Florida for execution in Alabama, which is upheld by legal precedents indicating that property execution must occur in the state where the property is located.

Mandamus Relief for Exceeding Jurisdiction

Application: Mandamus is appropriate to rescind a court order that exceeds the court's jurisdiction by requiring actions beyond its legal authority.

Reasoning: The order's requirement for Chandler to deposit assets in Alabama exceeds the court's jurisdiction, although it does not specify the property's location for deposit.

Stay of Execution Pending Appeal

Application: A stay of execution pending appeal can be granted if the appellant posts an adequate bond, which Chandler did by posting a $250,000 bond.

Reasoning: The court granted a stay contingent upon Chandler posting a $250,000 bond.