The case revolves around a dispute between the City of Gulf Shores and Coyote Beach Sports, LLC. The city passed a municipal ordinance regulating the motor-scooter-rental business, which required renters to possess a specific type of license. Coyote Beach Sports, a Louisiana-based company that rented motor scooters in Gulf Shores, claimed that this ordinance effectively halted its business as most customers did not possess the required license. Consequently, Coyote filed a complaint against the city, seeking a judgment declaring the ordinance invalid, monetary damages, and attorney fees and costs.
The case was first heard in the Baldwin Circuit Court where, after a jury trial, the court declared the ordinance preempted by state law. The jury awarded Coyote $200,416.12 in compensatory damages. The city appealed the trial court's judgment. Later, Coyote filed a motion for attorney fees, and the trial court awarded Coyote $59,320 in attorney fees without holding a hearing. The city appealed this order as well.
The Supreme Court of Alabama reviewed the case and the issue of whether the municipal ordinance was preempted by state law. The court concluded that the ordinance was not preempted under any of the three recognized circumstances under which municipal ordinances are preempted by state law. The court found a distinct difference between the state's requirement for a license to operate a motorcycle or motor-driven cycle and a municipality's regulation of the rental of such vehicles. The court also found no conflict between the ordinance and state law. Therefore, the Supreme Court of Alabama reversed the judgment of the circuit court and the order awarding Coyote attorney fees, remanding the matters for further proceedings. View "City of Gulf Shores v. Coyote Beach Sports, LLC" on Justia Law
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