The United States Court of Appeals for the Eleventh Circuit certified five questions to the Alabama Supreme Court on whether state law permitted WM Mobile Bay Environmental Center, Inc. ("WM Mobile"), a judgment creditor, to execute on certain real property owned by the City of Mobile Solid Waste Authority ("the Authority"), a public solid-waste-disposal authority established pursuant to the Alabama Solid Waste Disposal Authorities Act ("the Act"). WM Mobile sued the Authority, alleging that the Authority breached various provisions of a contract between WM Mobile and the Authority for the operation of a landfill (the 'Landfill') owned by the Authority. After a jury trial, WM Mobile obtained a judgment against the Authority totaling $6,034,045.50. To partially satisfy its judgment, WM Mobile asought a writ of execution against a 104-acre parcel of land (the 'West Tract') owned by the Authority that sat adjacent to the Landfill. The Authority purchased the West Tract in 1994 for the future potential expansion of the Chastang Landfill. At the time of the lawsuit, the expansion had not been needed. The Authority moved to quash WM Mobile's request for a writ of execution, asserting, among other things, that Alabama law prohibited execution on the West Tract because that land was owned by the Authority for public use. The district court agreed with the Authority and granted its motion to quash. The Supreme Court concluded: (1) property owned by a solid waste disposal authority did not belong to a county or municipality pursuant to section 6-10-10 Ala. Code 1975; (2) a creditor of such a corporation [like the Authority] cannot subject to attachment, execution or other legal process such of its property as it needs in the performance of its corporate functions and in carrying out of its franchise obligations towards the public; and (3) with regard to what standards were to be used in applying the common-law exemption to attaching a public corporation's property, the Supreme Court noted that the key inquiry was whether the property at issue was owned or used for public purposes. In its responses, the Supreme Court answered the federal district court's first, fourth and fifth questions; the second and third questions were declined. View "WM Mobile Bay Environmental Center, Inc. v. City of Mobile Solid Waste Authority" on Justia Law
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