Court: Supreme Court of Alabama; August 23, 1991; Alabama; State Supreme Court
Defendants William L. Cloud and Cubberd Enterprises, Inc. are appealing a trial court ruling that awarded damages to Callen Corporation of Alabama and enjoined the defendants from using Callen's property. Cloud, as owner and president of Cubberd, entered into marketing contracts with E.L. Garner, Inc. in 1983, signing as 'the marketer' without designating his corporate title. These contracts required 'the marketer' to operate Garner’s gasoline equipment and remit sales proceeds to Garner while receiving half of the net profits. Callen Corporation acquired these contracts and related equipment from Garner through bankruptcy proceedings in September 1988, and subsequently notified Cloud and Cubberd of this ownership. Despite the notice, the defendants continued to use the equipment without purchasing gasoline from Callen. Consequently, Callen filed a lawsuit seeking an injunction against the defendants and specific performance of the contracts, later amending the complaint to include a claim for damages due to lost profits from the defendants’ actions. The trial court denied specific performance but issued an injunction against the defendants and awarded Callen $17,100 in damages for property use and lost revenue. Following the denial of post-judgment motions, Cloud and Cubberd appealed, arguing insufficient evidence for the judgment. The trial court’s findings included recognition of Callen as the rightful owner of the property and the marketing contracts, following proper notification to the defendants. The appellate court will affirm the lower court’s ruling unless it is found to be plainly and palpably wrong based on the evidence presented.
The Court determined that the defendants have possessed and used the plaintiff's property since September 20, 1988, without fulfilling contractual obligations, such as paying commissions or reporting sales. The defendants continued to utilize the property during the trial, as confirmed by defendant Cloud's testimony. They operated two stores in Alabama, located at 1101 Litchfield Ave., Gadsden, and 200 North Fourth St., Attalla, from 6:00 a.m. to 11:00 p.m. daily. The Court found the reasonable value of the property’s use to be $45 per day per store, leading to a damages award of $17,100 for 190 days. However, the calculation revealed only 163 days from September 20, 1988, to March 2, 1989, which adjusted the damages to $14,670. The judgment was modified to reflect this amount and was affirmed. Additionally, Cloud testified that the corporation's official name is Cloud Enterprises, Inc.
