Hembree Insurance Trust ("Hembree") leased a 135,847-square-foot industrial building in Scottsboro to Maples Industries, Inc. ("Maples") for five years starting January 1, 2020. The lease required Maples to maintain the property and share roof repair costs with Hembree. Hembree initiated a lawsuit against Maples in March 2024, alleging that Maples failed to repair or replace the roof as required by the lease.
The Jackson Circuit Court treated Maples's motion to dismiss as a motion for summary judgment and ruled in favor of Maples. The court found the lease "null and void" because Hembree did not own the property, which had been transferred to Woods Cove Industrial Property, LLC ("Woods Cove") in 2014. Hembree argued that it was the sole member of Woods Cove and had the authority to lease the property, but the trial court disagreed.
The Supreme Court of Alabama reviewed the case de novo. It found that Hembree, as the sole and controlling member of Woods Cove, had the authority to lease the property. The court noted that a tenant in possession generally cannot dispute the landlord's title and that Maples had accepted and benefited from the lease. The court concluded that Maples was estopped from challenging the lease based on Hembree being the named lessor. The Supreme Court of Alabama reversed the trial court's judgment and remanded the case for further proceedings. View "Hembree Insurance Trust v. Maples Industries, Inc." on Justia Law
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