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To SERVE THE PuBLIC ........ •.... . .

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LAw WEEK ACTIVITIES .... , ...... , ......... .

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CONSUME;R FlNANCE.- THE FuEL THAT

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DRIVES TIlE ECONOMY B~ Maur;ce L. Shellin ......... , ....... .

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ALABAMA's POVERTY INDUSTRY By Thoma> L Methvin ....... , .... . .. ...

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ALA8A.\\A Lt:GAL M n£STONES . _............ . ... . ..... .244

ALABA."IA'S ARBITRATION CASES: WHERE DoES THE NO:-,'-SIGNATORY STANO? By Patricia J. Ponder ....... . .. , ......... . ~"'_IJZJ

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DEPARTMENTS

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PRESIDENT'S PAGE lJg liamm 8. Ugh/fOOl

• "Tilf 111)' bst artlck k>r ~ AkIl>oma .ILouy..r with mixed fecli. This put )'I'ar hall been pretty hectic but gratifying. We h:M,> gotten some things done and tw." come up short 00 oIhm. The single imprwem<nt modo al the obi' bar has bttn the .rnpIoymmt fA uun "..00 iJ a\~\;lbIt 10 httplOlepnctitionm and snWl fi ..... with ~tt"riution and offioe ~mtnl. MI.. ~~ if; highly qualified lIld has been ~ing in Moo~'Y "ith Blirdlard 0; Calloway. In the ~illll months. we will be publicizing Laura and hr. t kills and

Cal......,..

Reflections ...

el'oCOOraging )'011. our membtn. to 1Ak. ~

doo ~lilits. On thr ncg.RiYt side we were UNbI. 10 get 1I pay ~ lor ~I'$ dtl'roding inoligmts. Our bwym 11M bem pUllor )'eIIr'S at the ~Iy low rat\' fA $40 an hour lor in-GlUrt time lind S20 an hour for out4-<wrt lime (both nles ore tht lo...est in the ""lion). The board 0( bar

commissioners unanimously ~ a rmuHon urging the ltgislature toror· rtct!his tmiblt lilUltion: Ktjlh Norman .lIld r met with Iht CoYtmor lIld "ith Bill Gray ~..mo gave III tMi. unqo.Wifttd suPJIQII). but the ltgisWion failtd to pUs. This prOOItm simply must be addressed • toon • pouibIe. !lack on tho p:l$lliYt siOt, we instituted the leglI MilulOnt. l'rOIIram, cooceMd ~ "", era,'u 0( 111,11115\;11., "n.,reby memorials ...m be dedicated [rom tim< to time around the $lat. tommelllOl'aling hi$torical ~ of alIJ~ Of' rectitude by

w....... II. Ughtfoot

OUr roIltagues 1_ I rticlt on page 244 DC thi> iss_ I. W. aotW an F.1dtr t.o S«tioa. "tlich is 1'4i~ to assist the ~kkrl)' with Ifgal prObItmo. We «ltbnt· nlLaw Wedc and continutd oor Bar·

School Partnorship I'rognm on. statewide basis with doztns (i school'

poorticipating. W. producN l .'idto, which is now a""ibblt at local bar assoo:i . ltions and libraries. to infonn tilt public about whal our members 00. both inside and outside the profession. W. COIl'UjIOI'Ided with the {;owmot' a$king thai ht allow the judicial P"Il' nUt bill to b«omt ~. UnfortUOlltely. lit dISJCrffiI ..... th us nI vttotd the bill. I think the ~ (i oor membmhip i!; that we II1UJt Pf'\l'o'i<It wfflcieot P"Il' to main· lain ~11tna among oor ;udiciuy. and lilt pay niH bill would 1m.. bttn. Slf/l in the righl direction. f inally. by tilt tilnt JIOO r&d this. I hotle that tilt Judicial St l«lion CommillH will haw rqx>rtnI the mullS of its hard work to the BoanI of lbr Comrni5Montri and that wr board will haw ado!Ud its ~ IXInItilulionai omcodmtl1l ;OS l reoorrnnmdltion to the Itgisbture. Fnnk m40n cll.1ired thai oommil1H and tilt ott..... hardworking mtmbtrs wt"re JOf, CUoady. Fml C~. .... rry Mom •. TaIlor No-'ai<. Jim l'nt!. Sian Slamfl. and M;m1Wl l1mbtrlab. W. all owe them .. debt of gratitude for the houri thty \moe spent ... thi!; ~ The work has 1",,1)1 bHn noopoortisan in _1)1 mpect nI h;os bHn I CUJuint dJort to i~ our sysWn of xlecting ,,","ILlt. judges.. The rurrmt 5)'Jkm may bt pref.rm! from time to tilnt by whichever political group believes it il in control. but rTIO:!t of tilt public believes it is il1ll'\lfllllNte. if r>Ot degrading. for judld•.1 ~idales to \moe to raist prOdi. gious $UmI of rT'IOJntY iIld then to Sf)md it ..nin unditniflt'd orrtpooigM. If the legislalure adopts this ' ..... '.".,odllion. thm the J)I'OIIOHd con.titutional amtnd· ",",I ,,;11 bt on lhe ballot in No-'tII1btr 1998. and if the public aw,..,.,.., it. we will ha-.t token a significant .tf/ltOW)rd

restonng Mnity aM rr~tige to the selection 0( our appellate judges. I dose with a not. ci thanks. a note 0( appm:i1Ition to all 0( you lor alkJo".ing "'" to se",,,,. and a not. of detp gratitude to all those among our "",mber.s who work so hard C\"'ry day to malre ruTassociation a better one and to se. that OUr profession fulfills its obligations 0( leadership to the public. I am reminded 0( the passage from the &xJ< oIl,u1re \hal cuts lICn.>:I$ all crNds: "To whom much i, given. much is required: You. OUr members. have been given a great deal. in terms 0( intellectual ability, the capability ci pnoritizing. the gift of analy.\is, a work tthic; day in and day rut. )IOU are using those talents to imprwe our profession aM the quali!)1 of Iii. the public in general. You who go about those tasl<s--tJelpi"ll a small busi · ness su",i\.,; fumWling judgment to a board. a councilor commiti«". assisting the j"lO'o<",rless; insisting that a corporation rttOgniu proper ooIlduct; teaching a daM in church or synagogue; taking a stand for pnnciple; carvi"ll out Ii"", from a bus» sclle<iul. to raise a child; or be a mentor to <II"IOI.her--)lOU are our wuung heroes, 3M )IOU are the people who daily make a diff.rence. Your name is legion. •

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EXECUTIVE DIRECTOR'S REPORT Hv Keith 8. Norman

One of th~ cUlalitiu of lhis yur's IrgislaliW! stj.$ion IOU HOUR Bill 692. Sponsortd by Iawyf:r.legi.lator Otmd rlu. NtwlGa of Birmil4ilharn. U.B. 692 would have ilKftued tht <:OmptmltiOfl (or Itto.llt)'llippoinltd

HOUSE

BILL 692

in crimin.ll caul. Tho cu.nnl $20 poe. !lou. out-of-court md $40 pt. hotIT in-court comprlUllion ...-as lui ilKrtued in 19811' r~r and f~r lIuomrys lire willing to lundlt crimi_ ruo' CiKi btaUK of tht low .... Its of comptnHtiO<1 for appointed coun"!. II is worth notinQ that attorneys .epresenting the 11.Ilt in civil matle" arr p;lid /I minimum (If $85 per hour. Sptcifialiy. H.B. 692 would have done the following: L. R.JiHd the hourly rille paid to IIllomeys IIppointed 10 rep._nl ;ndi~nll in crimhu.1 u.w,; to $55 per hour boll> in UId oul of court. 2. lUoiKd Ih. muimum .. llowablt ''''110 tht foIlowi"llItv!Is: ... No limit in a pitol cun; b. 53.500 ..mr. lilt orllinal Clul A Felony; d ...gt ... c. 52.500 wilt •• the original chuse wn iI Clus 8 Felony; ~. S]'500 whue Ihe original ,harS. Wit.< iI Clan C Felony; e. 52.000 in juvtnile tau.; f. 52.000 for tach lew1 of appel· lile work; and S. S]'OGO for post·conviction work. 3. A<.Idit~ upenKS incurred by this ItJl,islilion woold ha\~ bttn funded by iI $28 incR~ in the fiI_ illJl Ito (OT criminal ..nd c",il ~ filing,. The S55 nat note provided in H.B. 692 would haw bten in addition 10 reimburKment of Ruonable cxpenK' that may indude office overhead. The

·ilJ.

Itehha. Nonnen

office overhead inue wa, d~cidfd by the Alabama Court <>f Criminal Apllt'al. in 1993. Mag v. Siale. 692 s.:..2d 1307 (Ali. Cr. App. 19931. (A;I. Quashed. 672 So.2d 1310 (Ala. 19951. Miny te1tphoont ealb and letters ""rt written by members 01 the Board of Boor Commiuioners ind others ur{!illJl the ~ge of H.B. 692. Other people. such u Indi,.,nt DefenK Committee membtr Joel \\,Hiaml of Troy. persomlly visited legislators _kins their support for ItB. 692 . For iI while. durinQ this )'tar" resular union, it 3ppeared that H.B. 692 had a ''try good chance of becoming law. The Il oUK WiYJ lnd Means Committee gave the billl favorable report lnd the H(J4JK RuLes Committe. gave it i favorable pLa",,ment on the U(J4Jse Cilendir. Unfortunately. is the Rmilinine Itg'slaIN! ~ dwindled ... log Pm 01 pending l..isLation dr\"tJoped. RWOking it impossible for ItB. 692 to be coo,idued .. nd I"'nsmilled to the Senate in lilm for f&\'Dribl. o<1ion. (A .imiLIOr bill introduced by la~r·legi.lator lIowlrd IIlwl< of Arab was unsuccess· ful du rinQ last yur's regular session.) There is good rta$On to hope thaI legislation to increase the com per",,· lion for attorneYJ appointed to represent indiQent criminal dtfendanu can be succusful in nat yur's regular seuion, II IIr.lt deil of grolUld work his lJHn bid during the list two nguLar senioru to malee 1'lIisllto", "WiITe of this sillniflCil1t problem ind iu likely ntgilivt: iflll)Olct on the .. dminis· t",tion of justin in our .tilt•. If this legislation il to be succe..ful in the future. we nud the help of the enli r. logal profusion. 1 hope thaI you will make it I point 10 contarl your state

t".

u preHnlltiV1I lnd l\.lle It.... and u.ge them to support this importa.nt and much ntt<kd legislalioo lhe nut time it is introductd.

Why 6,000

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$35,388

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ABOUT MEMBERS, AMONG FIRMS About Memb.... AJ. Cooper aJlf'oOI.I/lCQ ~ change oi ~ 10 1050 11th SirHt. N.W. Suik 400, Yt'ashir«ton.l>.C. 20036. Phont

{202J 293-5910. t.. \'utint SiabIn", Jr. ~thf, optning IX his otra lit 600 Luckie I>rive, Suite 412. Binningham, 35223. '!'he lTIolil · ;ng~""", is P. O. Box 531161 -1161. Phone (2OS}802·i290. Gary P. " ' .killJOn, formerly with Hill , Young & Wilkinson. ;mOOW'l(tI lhtOptningoihiso(ficeat 115112 Mobil. Plaza, ~'Iore", •. 35630. Thr

=iling addrus is P. O. Ilox 689, 35631.

30030. The l11IIiling ~t't$I is P. O. Box ZMZ, 30031·2242. f'hone (41)4)~. Richanl W. \\lIittakn MI!>OIJI'ItQ a change 0( address 10 JOO K I.H Strm. ErUrprist. 363lO. Tht mailinll addnss is P. O. Box 311166. 36331-1166. Phont (334) 393-5146. r Ju1 G. IleLaitKh annour.w tho: rdonlion 01 his offiu to 6m Taylor Cire". Mon\i<.lmtrY. 36117. Phone (334) 244· 1934. John A. Canl. bllit.1y with Lb;d. Scrtibu & Cray. iII1I'IOUI1W tho: opening oihis office iI1 4 Office I'lIrk Circle. Suite 215. Birmingtwn.35223. Phone (205)

I'hont (205) 764· 1947. Meltedu Mund ilInIlOlIIlCeS tho: calion dhio ~ to 315 W.1'\:Ifn de Leon Ao.omue, Suite 533, Decalur, G«lrgio

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SIJftI. P. O. BoI;61(15. 'W~ lS16!.

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addraJ 10 1813 Montdiir DrM. Vestavia Hills. 35216Mart.ll. Owsley. fom\f1'ly ,,;th Robbins. 0Ns1ey« Wilkins. anroour.w thr opmi~ 01 his office it 211 E. North Phone (205) )62..1821. ROIl O. MuIow arulCJIII'aS the ~ oIhis ofI"tce ill 1612 3" Avenue. North. Suitt A. Bwemer. 35021l. Phone (2(15)

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address 10 Tlinily Unitrd Mtthodist Olurdl. 607 Airport ROlid.llunlsYille. 35802. Phone 12(15) 883-J2OO. lim W. FIomi"" formerly with the TlimrnieT Uw Firm.annountt:I thr opminll 01 his office at 2504 Oauphin ~, Suitt K. MobiIe. l6606. Phone (334)4~

Edward E. Price, fonntrly ,,;ih Cleveland OJ CoII~........... oc(S thr opm. irijl 01 his oI'fi« at 50 lightwood Road (HoItviJItJ1'ibp:IutI. Dtatsville. 36022. Phone (33&) :m.1144.

""-'OR_ Alfa Inl urance ComPOII)' ~ Al Stott 01 Montgomery is the r-. tmrnI CI.UlKI and IfCrrtI!y lor the AIflI ~

The moilirijl iddras is P.O. 80111100. Montgomery. 36111.1'hone (334) 613-4313.

R~ L,.'JIn "andfflonl imOOUOC(S a change 01 adtlrw to the Ofr",* or the Oiltrid AtlonM)'. 25 W. II~ Strm, lI0II10, AnnisIon. 36210.1'hont (205) 231 · 1170. I)a,.;d \'ana Luc:u Iw bem promotfd to Kl'lior cou~1 ofl ntntnPb eor,:.or.tlon at ill COf\1OI'3te htadqu.irtm in Hunts.ille. Phone (2(15) 7JO-22-U J_ L Su",ner, J r. ~ a ~ 01 addras 10 thr Alahuno Eth;a CommiNion. P.O. 8011~. MontgOmery. 361(1l~. J. Langford Fio)'d Iw been appointfd IlaIdwin County ])Ulric! JIMIgt. The n~l. iog address is P.O. 80111452. Boy Minflte,

""'.

n olmsing, ~ Sinu &. LndI anoounct5 tNl R. Abn AkuncIrr Iw bfcome a member, and J. Cue» I'iptl lw bocomr an ~f. The mailing addras is P.O. lIOII 'Zl67, Mobilt 36652-2767. Phone (334) m-5521. Miller. liamiltOl1, SniLtor &. 00I0m ~ thal li..,., C. JIoicbon, 111, Il,,;d F. W~ and 'J'bomu J. Woodfonl haYt becomt IS5OCiatIlS. Offoas i~ Iocil' td in Mobilt. Mon\iQmrTy ¥od \Yash~

D.c.

1IGsJty. \\".uo.., AlIrn. .' Wn" Ctow anroour.w thaI Blalno C. J. Cole Portio and W. Dlniol Mile .. 111 h.wt bfcome roonbt .... OffICeS are Ioooltd II. 218 CO"'OIOOI% Stfft\, P. O. 80114160. MorotaomtrY. J61Ql..t160. Phone (334)

su."""

~"" Balch "

Binglwn ;wmDlJ!lCQ thaI

W. Smith. Clenn G. WadeleUand Loia S. WoocIwlorol ha\-e becomt p.l.rtnt .... Martin E. Bu". CIwIrs A. Burtdlart. IitnobII Co o..n-. Robftt P. foMrr. Miriam C. Harris, Jomison II. Hinkle. M. loh H...uon, Dou«iu B. KauffRWl, John W. •l1cCullouglo. John I'\ckmnl. ~'tllon

\\"~Iiam W. Stewart, SpeO>l%T M. 1'I)ior. and Angola F. ThomhiUhave becomt

........

Jtlfrty L Luihrr and R..... Co

0Idtnbwf announce the Ionrotion 01 Lulhrr &. OIdtnburs. and tNl nanll)' J.

CoIlitr, Jr. MId MidlMl A. Montgomfty hM: bK<lmt MIOCiMts. otIices rontinue 10 be located in tilt AmSou!h Caller at 63 S. Royal Stfftt. Suite 609. MoIJik.

1'arulrr" Guln anroc:...rus !hat J. Hu\a>Id I~ ~ become I wreMlder. 0If1US iIni IocaI.fd ... 1711 U!Wersity IIouItv¥d, T"SQiooN 354(lJ. I'hono

3ti602, Tht rNilirlll UJftSI contirues to be P.O. !kG 1003,l6603. Phorw: (334)

(205) 349-t300. Todd II. BubdoIit aOO StIWl y. JoII..-. _ _ tht IonNtion 01

""""'-

Fftd, li}'dt, ~" &t Wathtimer announca !hal Robert Canlner ~ bK<lmt Nl wocilOle. Offiw are located at 2100 SoulhBn..J:g.e l'lrkl.o\y. Suitt Binningl\3.m. 35209. Phor.o: (21lS) 802-7575.

Hu;r, ,'tmlOmbuaj &t

annour«$lNt I'hi~p It. CoUlnJ has br(:omr an MIOCi&tt. Oft'w.:rs aN Iocaln! ill 800 Rtgions Bank Building, 417 20th Stfftt. North. Rinningham. 352Ol. Phone (205) 251-1 19:1 ~. Ledyatd. I.;oU, &t W........ ~ tNt Edward G. 1.-.. 80wnIn 1m jointd tlw finn. 0IfJas aR located at 1110 Montlirl'loV I>r'Ne. Sum

900, Mobik. 36609, Phorw: (334) 344.5151. IlaniJ, Caddell &t Shaw announces loot l>J,.id W......."ton has ~ an owociale. Offices ~re Ioc.iIted at 214 JohtW.on Strttl. 5.1;., and the mailing address is P.O. I\oJI 268fl. lJtcatur. 35602. Phorw: (205) ~. Ki,.,: &t $pIIdinC anoounc:es thai ~ M. Btll hasjointd tlw finn. otIices aR loaIed ill911'tachltft $Ired, ~ ~ 3(l3(l3.1763. Phone (4(It) 512-46GO.

Jolla A. 'NIn: . . ichatl l\'. Rountrft.

Joh..-..

Barbdale " OffIUS are Wlfd al 13 OIfa l';Irk Cirde. Suites 12 and 12A. Sinnilllllwn. 35223, Phont 121lS)

87t·5630. 1~I1INn,

tloob, IhoUon" Ilollis

anllOUllCts thlot Michael C. 1It'ldley has jointd the finn, OffICes are Ioc.iItM al 1100 Park I'Iac:t Tbwor. Binningham. 35203. Phone (205) 322.sB80. Capowono. Sm~h, lUi11M' iII'flOlIncts tlw I't'k:olion 0( oIroca 10 322 AIaIwnIo Stfftt. Mon\g(Jmrfy, 36I(l.1. Thr ..wl;,..z addrf$1; will rtnWn P. O. Dr.Iwrr 4689. JliI0J.4689. Phono (334) 8:u-3891. CII!yfon " CII!yfon annouroas the reJo. calion 01 otrlCts 10 224 W. 80wd Stfftt. Eufaula.,J6(rZ7. Phont (334) 681~ Z;rINn. SpttgIt, OIdweiltr &t Jadcson /II'II'IOUl'oCQ lhat Anthony M. Ilolfman br<:arnt a member, Offica ~re Ioc.ltrd at

W,...., "

John T. Clmpl!tU aOO JeffRy E. R_1t anllOllra the formI,tion of Complwll & RO\WIt. Off"" are locati<!

.,.0 w • free q1.lOOCe OIl policies ..... oting from S I 00.000 "p 10 $25.000.000 1<1 OO'"p. ''' ..-ith ) 'OUr CU'TaU life in. ...........,.,.

$250.000 Level Tcnll C",enrogc Male Preferred NonSmo ker

announeo tlw Iorm:otiDn 01 bber,

Roont"", Singkton &t , - ". Oft'1US rerroin ~I 200 Inlenute Park Dffle. Suite 237, HOIl!jlOmt1)', 361{)9..54(l3. Phone (3341 171).8291 , Robbie J. f'riell and Peter ua.;s announc:e tilt opening 0( their otrl« at 412 S. Court Stfftt. Suite 411. Sholb Cll'I'n Buiklire. F'Iorern, 3563(l. I'hono t21lS) 764·1711. Loftin, IItmdon .. Loftin anrooura:s !hal I'atl'IdI O. Miller 11M become an ;ro.sociile. Otroca iIni Ioc:akd ... 1105 7" A\'mIJt. Phtnix City. 36867. Phorw: (334) 297-1870. Krilb J. N.dkr, rOlTTltfly with Najju Dmaburg. announcts the formation 0( Nadkr &t AuociaIU. OffICes are located al3800 CoIonrodt Parkway. Suite 630. llinningl\3.m.35243. l'hont (2{)5)

344-5000.

ARE YOU PAYING TOO MUCH FOR LIFE INSURANCE? Til"""", Drane a Auocl. I«. you ",,11 pun;:h.oe . fford .. bk lerm ~fe in,,,......,., f....... JUthI)...I.,! insu..nce companie/o, To . ,-oid o"crp&)int.

Sponn A SUltldon ;nI 8ra11t1ty W. ~

107 St. Francis Stntt, 3200 First NatiQn.)\ Bank Building. Mobile. 3ti602. Phono 133') &).1-1700. LuI<. ..",Icy. ~cAlist ... " S imms ;onnounas \h;ol N'KOk M«:iU John....., Da\id T. Whitt. III and LH T. Cbnlon ~ become assoc~ltS. OffICes I,e mlfd II 1901 6th AYtnut. North. Sult~ 1700, AmSoutMl~rberl Pbu.. Birmingham. 352(13, PlIOM (21lS) 323.7100. lIumham " t(IIMrflter announces IhIoI knnlf... lI . \\llkirl$On aod TImothy C. Ilurge.. hM:,ioirlfd lht finn. OffICes an \oo:ale.ht l(l()(l Quintin! Awnue. SouIhTrust Bank Buikli'1!l. Suil. 401. P.O. !kG 1618.. Anniston. 36202.1'hono: (21lS) 237.a515. R_. Cool<. SItdgt.. lb..... CuroII .. ....... MIIl(IlIIlCQ thai. Clw1ts A lbiOhis become of C'DU1ISft 10 tlw firm. otIices iIni Ioc:akd ... 2117 Rr- Road, P. O. So. zm. TlISQ~ 35401. Phone (205)

",. 10Yne 15 Ycar

2OY•• r

$ 100.000 Le"el 'ferm Cl\<cnroge Male Preferred NonSmoker

"'"ye... 10

15 Y.... ;";':;~ 20 , ,.,.,. I •• ,,_

..... _

Orw.. " Auoci.,.

Cnrtu H. Ora""

1-800-554-4599

969·16(16.

~--

bo tIicJodr ....~.

(Continued""", page 199)

I; .. -

at Isn ~klnlj/orTM'ry II~. Suile 2 10. Birmingham. 35216.. Phone (205)

n)T .. ~flO ; :7 .:-s. " ,

~so ~a · ~ . U;;'l

.....

UCourt surety service no ordinary agellt call match"

: CIVIL COURT BONDS BY PHONE... I BY TOMORROW

CURATORS. INJUNCTION. APPUIL • ATTACHMENT. DETINUE AOMINISTRATORS • GARNIS HMENT. LAN DLO RD · TENANT CONSERVATORS. All OTHER FEDERAL l STATE COURT BONOS

1-800-274-2663

979-9070. Broom. Hudgens annQUr>a:S thol "'lliam A. Donald ... n btcame a mem· ber 0( lhc form. Offices art mltd al 1~95 UnMrsity Bou ......rd, P. O. Box 16618. Mobile, 36616-0818.1'hont (334) J.t4.n44. Rumberger. Kirtr" CUlwell ;\/1OOU1lW tht optIling 0( oIflCCS il AmSoulMIarbert Plaza. Suite 2020. 1901 6th Awn>t. NortI\. Birm~ 352Ol. c..,.;g p. t.".....thal lm bK:omc a partnn' and AUl.oon O'~al Sian.... ~ bccomt an as.ocial .. Phone (205) 327-5550. r - AMf " "'~ announctS thai D. B1"Utt PttwI!1 t-.. joined the Arm. Offices om Ioc3tw in Birmingham liO<.I SheIIidd n.. Law Offkn ore. Thomu \'..,.,..t. and DuoU " Spi ... ~ that they haw mngtd. tilt new firm rwnt is Oudl. \"tarout " spaa. Tht firm I.,m OlfIKIIidaI. oftka. in Bi~ in the rail 0( 1997 at a "..,.Iocation.

•

ALABAMA DIVORCE, ALIMONY AND CUILD CUSTODY HORNBOOK TIURD EDITION by

PC:DDY A. Davas •• d Robc:rC L. McCurlc:y. Jr.

REORGANIZED FOR CONVENIENT QUICK REFERENCE

Over

AI ........ Divorw, Alimony and Child CUSlody Hornbook. Third Edilion. is the mosl comp~h.n.iv. book on AI. baJm, divorce law .""iloble. II has been rt:Of&II1lz1ed inlo 0 chapt=. taking the pracliliantt throu&h no;.h lIep oflhe divorw process.

....

TpK"II IoosI, A L J S-I86

New Edition of the Leading Reference relied upo n by the Alabama Bench and Bar for over te n years.

LAWYERS £ DUC AT IONAL PR ESS Posl OfTlc-e Do, 1281

FORMS

.........

_._ _ ......

pagn

forms

an:

tonvenie'llly orpnlzled with the busy lawyt"r in mind. Am"",!hem ore new foon, on posmupti.1 agreemems and uncontesrtd divOttn. ~veral forms have been reviKd, inch.diD& the elimt in divorce eonmoa, .,-.mrcm conltmpl_ion of divorce told property ..ultmml.

.•. _ . _ - - _ .•.

__._._.-

Abo .... ... ;I. bl~' LAW O FF IC E PRACTI C £ DES KBOOK, Sixllr Edilion with SUpplemcnl .. $67.10 ($60.00 plu, 57.10 . ..... po$Uie and IurIdling. 1994 Pockn Pans of the t.. ... O fTlc-e r no<t;oc Ot$kbook., 523.00 each (520.00 plul 53.00 lax. pO'la,. and hiU\dling) .

..... "'" _ _ copies of ALA BAMA DIVO RC E, ALIMONY AN D CIIILD CUSTODY 1I0RNBOOK, Third Edilion." $79.40..m (570.00 plu, 59.40 .... , POSll8ear>d handlin&). AU orden mull be P REPA II). Make chocks payable 10 L .... WyERS EDUCATIONAL PR ESS. If nol "'i,fitd you mlY mum lhe book within 10 dI)'I for a full ~fund.

Cumherland School of Law Continuing Legal Education The Cumberbnd School of Law afSamford University is indebted to the many Alabama attorneys and judges who contributed their time and expertise to planning and spea king at our educational seminars during the 1996-1997 academic year. We gratefully acknowledge the contributions of the following individuals to the success of our CLE programs. Helen Johnson Alford

M. Oar Alspaugh Orrin K. Ames, III David B. Anderson Harold I. Apolinsky Stephen R. Arnold D. Leon Ashford W. Michael Atchison Lee E. Bains,Jr. Leslie R. Barineau Hon. Pamela W. Baschab Jerry L. BattS T.8rad Bishop H. Hampton Boles Joseph P. Borg Karon O. Bowdre Nicholas T. Braswell,!II Richard J. Brockman Stephen E. Brown Richard E. Browning Pamela H. Buey Hon. Jack Caddell H on. John C. Calhoun,Jr. Andrew P. Campbell Mary Lynn Campisi T.). Cames Charles F. Carr Rhonda Pitts Chambers , . S. Christie, Jr. John S. Civils, Jr. William N. Oark Charles O. Cole John J. Coleman, III Justice Ralph D. Cook Deane K. Corliss Soott COIxadden Judith S. Crittenden

Phillip B. Price

Gregory S. Curran Timothy C. D~viS R. Alan Deer

WilHam H. King. III JeffreyC. Kirby

John T. Kirk

Walter J. Price, III Michael C. Quinn

Creggory M. Deitsch Charles L. Denaburg Lesley Smith DeRamus Tammy L Dobbs David R. Do""ldson Susan D. Doughton G. Whit Drake J. David Dresher Charles H. Durham III Gerard J. Durward Thomas E. Dutton D~vid A. Elliott Michael J. Evans Gregg 8. Everett C. R. Femambucq Steven W. Ford W. lewis Garrison, Jr. W. Oark Goodwin Mac B. Greaves William B. Hairston III lames O. Haley Hon . Anhur J. Hanes,Jr. A. Lee Hardegreoe, III Samuel A. Heldma n Henry T. Henzel Lee M. Hollis Oay Hornsby Edwin Et. Humphreys David G. Hymer H. C. lreland,111 Garve lvey, Jr. Robin Windham Jones Leigh Ann King M. Christian King

Thomas L Krebs

JaneG. Ragland

Frederick T. Kuykendall, III Ardie C. Lamb, Jr. Forrest S. Latta Kristi DuBose Lee Robert W. Lee, Jr. John A. Lentine Dorothy Littleton David H. Marsh Rodney A. Max Joseph B. Mays,Jr. Hon. Edward B. McDermott Candis A. McCowan BruceJ. McKee J. Anthony Mclain Richard A. Meelheim Hon. Tamara O. Mitchell Anne W. Mitchell John K. Molen Hon. Roger M. Monroe Mac M. Moorer Wendell Morgan Richard D. Morrison Randall H. Morrow Anne R. Moses ). Julian Motes P. Russel Myles Lisa Narrell-Mead Thomas L. Oliver, II Lynne Stephens ONeal John E. Ott Michael R. Pennington Denise j. Pomeroy Harlan 1. Prater,IV

Barry A. Ragsdale Bruce A. Rawls Alan T. Rogers Jackson R Sharman III Maurice L. Shevin Wilbur G. Silbennan Susan J. Silvernail William H. SiS$()n Bradley J. Skla r Hon. James S. Sledge T. Dwight Sloan Laurie N. Smi th William G. Somerville III Gary G. StankO Jack P. Stephenson, Jr. William B. Stewart Luther J. Strange James R Sturdivant Jennifer F. Swain Lanny S. Vines Laurence D. Vinson, Jr. Charlie D. Waldrep Ann C . Walthall Howard P. Walthall Leonard Wenlleimer, III C. Larimore Whitaker John P. Whittington John R Wible James C Wilson, Jr. R. Wayne Wolfe L. Stephen Wright, Jr. Ralph H. Yielding

BAR BRIEFS • Rttirtd /IIonl,A!olllft)' Clrcui! Judgt

Davis, III has bHn JliIJTled ~ "Alumni of. the Year" a\ Cumbfcrland School of Law. Samford Univenity. The OOnortel;. r«ognil«J at ~ 1.... 10' W•• k banqutt in March. nt in kttping ""ith 1M CUrlIMrlMld tradition

"''0

0( rrcQgni:il\ll

graduates from two tm

alld """'lion$. OaI.;s. a 1971 graduate, wOVfd 2 . ~ ...

as a Montgorntry Family Court

judgt. H. has served on a rommiuion

thIot studifd AIabarnlI's jU'J!ni~ ;..sti« ~.m.

and _

lUCUliw chiinnan d the Subsbnct AbuM

Youth Nttworlti"l! OI'gMliution (SAYNO) ...'OO1 Montgomery', lInli.;,lrug prOQ""" Was foor.dtd in 1989. Th. Montgomery County boot camp. " ,.habilitation program dnigntd 10 'nstill dis.ciplint and •• If·nlum in juvenile triminals, was n.mtd for Davis upon hi. r.lin . menl in hnlla,),.

' 1'lmtri.l S. lhil kill 0( [ng.l. Hairston & Jolwoon in Binningham Iw bun admitttd to menm.nhip in the Com",.." ... , I..low L«iue 0( America. Tht e l LA '''is fou,*d in 1895 and is 1M ludirq! international org;aniDlion 01' ~k ruplcy lind tOmmen:i.llllow pro(e.sionili. • RMtrt E. jollU. III and JoMoph C. EIIIY "'- b«omr Fellows o(Ult Amorian CoII~ 01 TrialLawym.. Crotfd in 1950 to) ~iR t>:ttllmce in tri;r.IIa,...~rs. the CoIltlit includes members from ~ry ~nt of the civil ind crimi_ ....1 triAl b.u of the United Statts and Can.ida. The induction ttrmlOO)' rfC~tl)' took pIa,ce ~t the Spring ~teeti"4 0( the Colltllt in Boca Raton. FIoridil. Jones is a I\lrtnn in the Florence finn 0( Jones & 1'rou$date and E",py is il ft.lrtner in the MonlgOmttyfinn 0( M.lton. E",py, Williarm & ~

• ,'\Iont.omery Clm.!! Judge Charlu Prico was rtttntly innoun«d tilt winlltr 01 the 1997 John F; Kenntdy Profile in Counge A",lOrd. The a..... rd. described by i Iormer r«;pient II the "Nobtl in GoYtmment," ii presmted innu.J1y to i public: otrocw who tw withstood strong OJIPOIition from constitu~t:> and J)OI<Ierful intutst groups to follow ",hat the individual belie\... is the right Ju~ Pr;.;. O«Il/Jlt DU'IIrris COUIU of action. from C4ro1i"" Krn.H!d§. "Judge Pritt demonstrated both inteSrity and courage in his rul-

;~ to iUpport Our Ilition', historical Stp.. IIration of church and statt." said Caroline Kennedy. president of lhe Ken~ Library Fou ndalion. "IRlathe. than tellCh }'OUnS Ammaru to ridicule the mtn and women who Ktiw/y partid_ p.)Ie in politics. .... ihould off.r them eumpits of ucelitTItt and courag.. Judgt: Charln Pric. is suth lin tnmple." Pasl win""rs of the iWard include former Unittd Slalei Congrwman earl Elliotl. Sr. 01 Alwma.

Quola from Judge Price ~ acceplunc. ~h,'

"Ill h.¥.·e alway> believed lhal elected official. mUSI adhere to i high standard of lrulhfulness and forthrightness. f\"<!n when Iheir "'-tl«tion 15 Ihreatened.1 ha~ lrit\! to .mb~e 0fW! of Presidenl !.incoln·, philosoplliu. 'ut lIS ha~ filith that righl makts mighl. and in lhal fllilh let lIS 10 the md dare 10 60 OUr duty as we undtrsWld it'

,,,

"[A[s an .lmed.iud#. [ long • made II ~ to fts4I«t tho 1Iw. inltlJlrd. tho taw. obty the Iiw. and iIlPIY tilt law "-d on ~ decisis. court drdsions. ~or legislaln... statult:J.md lIC!S. New1' ~ r committtd myotlf illS I judge 10 make I d«ision "-d on popularity or political uptditnC)'.

.""dwe

.. ,

"I ha~ no intentions of evlding tough and hard d«i$lon5. for 10 do so would make me unworthy of 11K honor you ha~ ~Slowtd on me wilh Ihi' award. I hopo I shall continue 10 M a ,redil 10 y<;IU. the judiciary, my family ~nd. mosl importanlIy, myself. I hop<' I.hall remain fomoer in tlK same clns illS lho... President Kennedy ~mirtd and inclulk'd in his 0001< • Ptofila in •

On a peifect beach

a new town is taking shape.

f<;C<:ndy cl.oo.tn '0 build 'Mi, btach homos in ll00enmy lIcach.

p..O SEMA R y BE A C P.O. 110. 4101 Son\> R.,.. Ik><h, FL .I1H9 (80<1) 716 · 0877 (9{1 +) HI·1900 'QIO"" 1>< h •• ol.(om

SCf.NIC ROUn JllA I MILf.s EAST OF Sf.ASmF.

BUILDING

ALABAMA's

COURTHOUSES

&J sam:Jd A: ItUiiIOi'i Jr.

111"'0 County

larke County.locat~ in 1O)Uu.....t A1lbuna, is a county 0( lingering mystery and uoans~rtd historical '1ut$liom. Pe.hap$ the mosllignificant quution lUrrour.d$ De Solo's famous EIoonle of Mauvila. Did that NIUe llkt pbct within tlw boondlO!)' of prQent~y Clarke County? A 5Kond unanJWutd question i. which Clarke. a father or a SOIl, was the county's namtSllk.? !'inally.

why_thc~a

tho! beao_ the county sui knoIo." by $0 many differ. tnt namn in its c.orly YU"', and from what JOUIUS ~u thor YilOous

Clarke County

Jr., Miglionico & Rur1lOr¥, 1230 IJrou:n Marif Tou-er, Birmingham.

Alabama 35203.

~--

Only ~ilioNl ,rchHological expl&-

ration will stottlt this iss"". De Soto'~ Battlt of MalNil. is ",puled to bt tilt .ingle bloodiest encounter of lndiins with , r.ur0pw>5 within the preomt boundary 0( tilt United States. Reports range from II lust 6,000 to ~ 1I\il<l)'~

. ."r.

="""

you have any photographs of early or present COIIr/hooses, p/ea$l! fQfword them 10: Somwl A. Rumore,

11.000

Indw.. killrd. De Soto had 82 mm killed, all of the rut namudfr~? De Solo's Spanish wounded. and solditr$ wnlu •• d ITIOOt or his bagg.gr "*<Jd",",,,"~_.IIwCJri<~ into prcstnt-diy MId 1tora OOiroyrd. eo..Jt lIlT/_I. The ruson lot tilt point durinll h~ disparity in los5a expedition ......ich wu due to the lasted from 1539 to ]543. Although it is swords. guns. armor MId horses .....hich undisputed thaI he traveled through the Indians had ~r s«n. much of the southu:item Unitt<! Slott$. Clarke County is Iotatrd bttwttn two indudiJlll ~ Mler ~ tNn 450 great riYrn. Its e.utcm. _ m and )'Urs it is still impossible to ii)' with .outhtm boo.Jndmes nt formed by tilt ~Iute «minty lhit De Soto \>isittd AIab.unlo MId Tombi~ riYrn. BecaUH any $JI«ific .itt.""~;uon lor this 0( tilt rivers. malll' Indians m3dt this u",.rtainty is the lack physical tvi· ttrritoty their home until white settl., -xnct Itft bthind by his 'rmy. ment btgan in tilt litt 1700s MId urty In 1935, Congrus ~1'tIIIed ~ cr~ ISOOs. Burial. «mnoniaJ and habitation ;otioo or tlw: Uniltd Stoot.. De Soto mound!. Ior:lotrd . . " tho riw:rs giVl' his· Expedition Commission to liIudy tilt torN: evidern or tilt IndiiHl preSI'TI(t. routt 0( De Soto and makt appropriatt TIlt oldest whilt settltmmt in tho lIrea recommendatioru; lor a 400th was located at Choctaw Bluff. 00 the AnniVl'rsoory ctttbralion. As p.o.rt tilt Abhil<l1a R;'"\'r. It was Joondotd by the commission report, tho Ioeation or tho JlImtS and OarrirlgWn w"ili.. in 1789. BaUlt of MlIuvit.o----n.timn Spellrd IIto;:atJse or thrir proIinty to the MabiLl. Maubila. Maubilla or MauvillaIndiom and to the_d~ was plaud in Clarke County btho.'em pooo.-idtd by tilt river sysItmS. the 51'ullrs

"""""

The folloo:ing W/llinUl'.$ Q history 01 A/aooma ~ COUll''I CQ{Jrlhousutheir origins al!d some 01 the peo(Jffl u1w contributed 10 their flTlJU·lh. If

the forks the Atabama and TombigbH rivers. n.., commission did not pinpOint" Spt<:ifoc Nttlt site. This p\a«rnfnt t.. bftn dtbotrd for )'toan. Somt historilns and urnwoto. gists btli""" thai De Solo did not travel tNI lar south. but Instead fought at the forks the Tombillb« wd Black Warrior riwrs. whkh would pbct tilt Nttle in pmmt-lYy Crttm County.

_J John Cl.I.rb, Elijah's 500, ~ been born In North Caroli~ in 1766 but mowd with his t..mily to CfOrgia. At age IS John Clarke was apfM)inttd a litutelWlt in Itw: Continmllli filmy, At ~ 16 M ~a CIjlUin, He stMd lIfIIk. his btMr in a nu""," rJ balUn.. By "lit 21 tw: ....as PromoItd 10 major, John C"'rkt continued with his mili_ IlIry arttr, lit distinguished himstlf in actions the Indians In ~ Lin his fMhn tw: rust to ttw: rank rJ 11m' ""lIn 1812, CoYnnor fMty rJ Gro.gia; ~ him ccmmand rJ the Iorca assigM;! to protect ttw: staCOMt and defend the southern boundary of Georgia, II WU II this lime I.... t Itw: Mis.sissippi

,..,1\$\

Gentral John a...u~~"v/_I899""~路

___

~_JJJ.IQI

!'I.lITItd (or him. t'

::.-

nurby crttk, ~ "o芦InIm wo~ 'IU'roundtd: oo...W!r, ISiOtC Ha~. stting \his graw sit~tion, attacktd tht Indians with his PKk ofhunlini: hounds. History uf.1'$ 10 this incident as H~n'I路Doi Charge"whic:h Mnt I wriUbl. "canine lTTIlY",agaimt lhe Indiam. This di,'mion 1.11owW all but tsca.pe b.xk 10 the wore

Bulldtntll ...18.......... Cou,tltou. . . (CIntInutd

rn... _

2(J5J

~ plitt Sotlocled by tilt commis· siontn WAS not far from the ruidcn« of Coile. II village soon grew around thf: site. Thislocalion served AS the county ... at of Clarke County from 1819 to 1832. On December 7. 1820. the legisla. ture dtcidc<l that it should be officially known by the name of Clarkesvilk. Clarkavilk did not prIM: 10 bo popular as the IXIUnty ...... k:otion due in brge ~ to lin irI;ockquot. watc supply. On hno.wy 15. 1831. the Iftidatu,., c:lIlrd for lin ekction 10 be held on the fir$! ~ in Nlril 183t. to poll public smtimtrlt on keeping the cou~ at Clarkesville Of ITIQ'o'ing ilto the geographical ttnttr of the county. Rallots in the election Q/'ritd the !'IiI1leI "Cbrke5viIIe" and "Cmttr: The tIrction mutt ~lrd for I ~

~ duignations may ha,~ IIftn local family rwnes. bul ilistorillns lire not iIl",- To idol 10 tho wnfulion. James ~n wu lilt pol\JlIlISttr in this Siffit lIreo 011 post office. established on Apri121. 1820. wIlich WAS officially c:.liled PO$t Oak Lfwl. TIlis post office was discontinued in 1824. but f.·.. tabli$hed on May 24. 1827. On April 16. ]828. thf: I'IIIIm of the POSt off"", was changed offw;ialty to GI'CM Hill. btc.aUSot of II stand 01 oak Irca on the pllttllu whtrf lilt town was Ioc:.ltrd.

~\Ik. neYeI' I ~ ~. bfawnt

;USC anotha- rur.tl town IIIld \,}ttr di$appeartd mtirdy. FM commluionen ..... ,., IP!)Ointed to seled tilt lite for the courthouse Ilear the ctnt.. of tho counly. ThtSot commissioners we rt William Murrell. John Loftin. I commi""iomr in 1819. lIobert Ilmin. Joshua Wilwn. Ind Jamu ~n. The Iocalion thry cIIos.e had bftn known by seYmll _ . which brings up thf: third Club County hillOric;ollTl)'5tery. "''hy ..tout tilt,., 10 ITIlIny rwna? From whe,., werf thf:Sot l\llmes derived? Ouring the Cr •• k Indian War of 1813 to 1814. a small defensi"" fortific:.ltion had grown up in tM ctnl .. of the coun· Iy. c:.llied Fort While. The 1\1111\1 po65ibly arose McaUSot the fort was intended 10 proIKI "White" Sdtltrs. Or pe-rhips it took its I\IImt from a >tiller l\llmed \\'hil•. The actual dcrMtioo dlhe I\IIIm il unknown. In 1815 JatnQ MagotIin from Philadelphia. who would se!VI: on the o:.>Unty seat selection commwion in 1831. Optnt</ a smoJl e:IIablishmtrll ntar Fort \\'hite. The settlcmmt that gnw up &rOI.IfKl his business bu-amt known as ~Llgo/I'",'I SlOI't. fobgoffin's 5I0Ft_ midt I pOll~ pb« as wIy as 1818. Within a frw ~rs lilt irca btarm known by two otho:. l\llmes. In some docummts it ..'aS called Smitm'lIe.lInd in others il was c:.llled Macon. Both of

At some point in the 1840.. the "cen· ter" of Clarke County. at ~arious limes krIown as Fort "'hit•• M<ItofIin's Ston:. SmitIMlle. ~ I\:l$t 0. ~1.lIIld C..,.... flill. btarrM: OIlI'\IOIidatod under tho name GTOYt Hill. MO$t early court documtn~ tISfd the I\IImt Macon. but sin« th... was ~]IUI.\)' I MlIoon rtc:Og. n;ud by tho: post off"", ~rtment in another county of Alabama. the official post office ""1m of Grow Hill e\~ntually became tho: official town nalm. Tht lWeI d;Jote isa mystery lost in ~ hmory. Tht first COUTU wtre held in lilt new county $flit on Dec.mbtr 28. 1832. II framt courthouM: building wu 0011· structed in Cn)\~ mil around that timt. II photog~ ulctn shortly btfort lilt . truetur...-u tom down in 1898 u---s I 0fIt.5tOry building surfO\lndtd by a

ftntt. Thtrf appnr to be lit", OYtr the ftnet. The jlIilwulocatrd bthind this building. The building had i front muanc. con"'ining an mended porti· a) and • sick tntranc. aMreli by an awning. ThiJ firll G",,~ Hill court· house WAS replatt<! by a handsome brick structure completed in 1899. The construction of a brand new courthouse in C""", Hill in 1899 was not I (Oftgont dttd. n..rf ..... ,., st\'tnll m()\~mtnU that could haw chanjIH Clarke County history. ~ were ec0nomic. Othtn _ political. First d lIlI. the single biggest change in CI_rIIe County follo..ing the Civil War was It.. arrival ofth. railroad in the lale 1880s. The lint came up from Mobile. crossed the TombigbH Ri'~f at Jacbon. 010'ltd up the Ba.swtt Creek valley tilt of C..,.,.. flill, ~ through Whatley. ind mer>ded up to 'lllomasvilk in the north on its 'Q1 out d tho: county inlO Wilool County, ind on tOWird $c:lma. Communiti.. pr05!"'red lIlong the nlilrOllfJ. ~lany busy sawmill to'l<'IU sprang up. TIlt large municipality of Thomasville ~ i~ very existern:t to the rlilroad . On tht other hand, CrOYt Hill. tM county $flI1. was by-~. Another factor arose in north Clarke County. Cilium began a ""IlY!'mml for the CftlIlion of II new county. II would COR!Iist d. portion of northern Clarke County. southtrn Marengo County and western Wilcox County. TIlomuvilie would be th. hub and county -Will of this new creation. Th. proposal wAS to name the new county Herndon. In 1891. tilt IIlwlTIlI 5ol\llt. ckfuted tilt Iltrndon County bill by only fi"" votes. II third imporfllnl ~nt took plact in NOYtmM. 1892. II bill ~ tM ~ lalure allong for an election 10 "perTlY' !\fntly locale tht a'lUnty oat: The eleclion . Sotl for March 13. 1893. pitied Crove Il ili. tilt centrally located count~ seat , again.lt Jackwn. on the railroad and tilt Tombigbu II i"" •. and ",~Uey. a newly .mblished town located on the railr(Yd IJIproxilTllltely rM mil .. south. tlISI of GI'OYt Hill. The IIltl\IOI'kIS of Jadt.wn ftI. that they shoukl win lilt .I«tion brause thtir city was on ~ river and II railroad. Also. JlItbon hood .!trona $UppOr\ from th. ~;lIe 11I'a. Many r<$idmts from Thornasvilk

thougttI. thIIt if .bckson ~ oounlY

t;;;;:;.:..__.:..--,;;;:=:;;---'

Df"''"''''i. the Ioc:ll ~ in 1856. stated \h;It lIarry Hull and Sam

"""'""" Ewina

~ the «JU!'lhoo.K in gml dtUil stating in hii 5laCCatO sl)ie is follows:

'"Building. Q...ef.aI66 fttt long and ~ feet ...ide and ii dassic st)'It ohrctn. \edure. On first fIoof is CoonI)' n-um'1i ofIia. oIfia of fudge 01 Probate "i!h pm"3le offltt atbChed. Back 01 probate oIf.a: is ~ fin:·prOOf .......It for books ond n:conIs. All is on north si(\e of along 1\;111 which Tllf\S the whole \mgth 01 the house. On tht JOUlh side of!WI then: is off.a: of Clerk 01 Circuil Court and priVott off.a: lor same, offia -'" pri\r.lte oIfou b Sheriff. On the sewnd tIO<)' is iv::ated the Court Room. 44 boy 48 !eel with ga/ltTy 12 by 48 f«t. the whQIe pn:Nided ...ith btnche!; capabk

l<JNtr runnin.S up from ground tQ tip of rmiil ibout 9'! fftt. The lar# COlIrt

room is lighted and vtntilated boy 17

lio~ winOOwr; which an ibout 3 lett widtond<MT 12 fttt high. All the "indo;rws in lhe house have the Wilby p;Il£1ll \'ffitIiln Blind. The tntin: houH is ....ainscottd to a htight 013 fett ...ith j't'lkM pint ceiling. The w~l\S ;w plastered ...i!h /ant Pat£1ll Cement as hard is rock. The ...-alis an built ofbrick made .limos! 00 the $fJOl. hard and gray in color. The roof is <i lhe best Bangor slate and ...iUlast lor .lI1 lilnt. Tht gutters an of rower and tht COI'I"Iitt of p....miud iron. thoroughly protected agairut ""'." PhotOf of tM 1899 "",rthouH $how that il was an imposing structure for .udl l small, rural county. Ho.... r:ver. by 1911 , the build~ was found to lit too small , An annu ~ to lit built. The cont'~tors ~re Strailon BrDlher. ~ Ward.. The ~ WIS $10,000. By the mid·2Oth «otmy the 1899 C~ County Courthouse ...~ no Iongtr adoquatelor the nttd:I 01 the rountY. The pmtnt OOlIrthooJst was $larted in 1954 ond compIde<.! in 1955- The archilect was 0lMIts Ii. McCauky oI llirm ......... ;ond the ooiloo was S. J. Cuny and Compa/l)r.

•

The author ac\!no::JI;~tdges the _ista~e of hmesA. Cox, publisher of The

Clarke County DmIot;rai; Iormtr Probate Judge Fred L. Huggins; Thomasville attorney Edmon H. McKinley; and tht ~ II~ COmmiuioo lor assistance in obu.,mng male,ill. u~ in this article. SOURCES, . , _ . . - liN Cconj _ " CIofIo.e

ea..o.._' II>oCllo<oo~~ _,_2!!.'_C/ofIIO~

I."""'"

Socoooy~ ........ 2.1'01 11113. _ _• _ _ _ CIIo<oo~

'SfO 10 If".• . . . . - , H. BoI.

'8iS2._

19R_"()oMCo:o.n\I.#<>_anr.... ___ "()oM~_

()ooIIoO:U'<r_~.

,177

_ ,I.. J •. _A."-'-,).. "...

.__

--I ---.---

R...........

lure aoo lulhoriud the OOIlnly CQnlmis.ion to iswt $15.000 in bood5 for lhe ccnstruction of a new COlIrthous.e. However, corn;truction did not \Ilk. plact until s.iJ. years lioter. wIltn the 1899 Ciarkt County CoorthouH ~ and buill boy F.1l ~ W. S. Hull. archiItcU and buiklers. of J~kson. Mississipp. This firm _ the QmI' ont Il\;It duigntd the Choctaw County ~ in 1906.;ond the WJ;Shingtoo Coonty CoorthouH in 19()8. Thry;Wo complete<.! the CI,burn<: County CoorthooH in north AIabam;o in \901 . The construction of the new Clio""" County Cou1"tho:lwe began in 1898 and took <MT I yW 10 comp\cll. Tht lotal 0051 was $\3.500. An article dated N(Mrnber 23. 1899 in 11w CIarlre Coun1y

d suting romfort.bIy Q...ef 400 pe0ple. A \wlII5cJme jlKlge'$ stand ond bar rail Kt off tilt other trod <i the room - the west end. On the same tIO<y au \ocate<.! the two prlil jury rooms. ~ theK is the grand julY room and l ....aitilllt room attathed. All rooIIIS can be heated and made CQrn. IortabIe. with ~rtpbca; {)Ir stows. The COlIrt room ctililllt is 20 lett /III:!o:M the floor, the oIfK~ 00 firs.1 floor are 12 fttt from floor ID ailing. On the north-usl comer is a \wlII5cJme

COIJllty seat. • At tht t.i ...... of the el«tion, lhe \qIisb·

Ewir€ wtft the g)O\OOOI'J,

two"'.

.eat. 1hom.1S\;lIe would t...... a bdter chaneI: <i gttting.wppor\. for the em\). lisbnml of tht new rountY of Herndon II1IIlhliJ b«:omt a countY - ' itsell'. Grow Hill. though not 00 a nil""'" or rMr. was still tht afl\rally \oQkd sitl. Its citizens f.1t it ...-as lhe most <;Or"NtMnl location for the majority oonlested eltction. Grow u m hiId 1.552 'IOtes., Jack.1on. 518. and WNlky.:'111. CrtM' IIi" r=aioed lht

The building consists bled portico wpported t.; four large Ooric- <;OIunnl. The buildirt/. is modem but mnif\Uoffit Iond, tlOOXI walls. The c~ntral 5«lioo is nank,d by two oIigt1tly rtCUM<I ...ings. Tho: rod lints are flat bul lilt roof <i the cenlral SK1;ioo is highlr tNn lhe rod <i Iht wings. Thor §OI.Llh wing fonns an .L .l\;Ipe and projectt out f'()Illthe hon· IOfItal Ii"" of tho building. The ""'rthou~ ....... rtmO<Ieled in 1976. The archi\ed for thi l lal~t project _lIIthor 1Ii11 and tht contndor W~ Southern <A:ntral ConlractorJ, loco It is anticipated tNt the pu~nt "",rt· houH will H1W Clim County lor many more years. I

$cfIooI

1.*0- . .

".P

'liN

_1.*0--. ..... ,,_ .... 0<1_N_II~ & -'- _N .... _'" _CIooA"'""" ....-_...... ...... _"11>0_

---

...... ~--IIIII

LEGISLATIVE WRAP-Up

Wetf... R.form The recently ~lI.lCtl<l Fld.I'lI! Welfart R.fonn Act rt<juires uch SUit to pass certain Iiws 10 coolin~ to obWn mkr~ fund,,,," In AIaIwnI.!hi!; rQullW in the following r"", bills bring~: I . Stat. Dlrtctory of N~ Hirt_ Ad 1228 ThisAet requira the ~~nt 01 lndustri.ol R.latiOf\$IO utahlish a SUtl Directory of New Hirtl. TIlt new "porting proudure sl1.ill uquifi' "II tm~ en 10 obUin wuin inlormation from ntWIy hired., r«.;oIltd

or rthim! individ-

lJ.lls. This information will be usN by the Department 0( Human RtsOUrcu 10 (ross-1m!,h ~ indiYid.w. with individuals who 11:.1"" ouutmding Ieg.JI child support obligllions. Furthtrmor •. the

information procured under lilt New Hi •• Oir«tory ...~tI b<: ,..,..maldw<l with individuah ~n.t .....ur's ~ ptllS.l.lion bmelili \0 tlimil1.lle individu-

als from reai.ing worker's compensation benefits ...'hen they llfi' simultaneously 1!llj)1oyfd. Addition&lly, ptQON who "-' rt<:eh'td mor. food stamp benefiu than tile)> wert enhUtd 10 shall be ickntifitd at the linw 01 ilPPliation lor urwrnplormenl C(lnllII'ruation. R~Plymml will be through dtduction and wiUlhoIding 0(

unemployment bon. fits, EfftctM October 1. 1997. 2. Support CoIIrcUons-Acll229 Section 38-1(1.8 d the Ctxk 01 Alabama is amended to provide for the delintlltion of distributions relating to

_L alee_" "'. _l..~. Jr ..... _ot

-..,-"'-__ ..--... --~-~ -.~ ~-~ ....

--.

support collections. It Sp«ifiall}> pr0vides for the dutribution when there are two or I1"oOre uis\ing child support onIn$. When then u both I current child support order and om irNoIvin!I ~ prior order of iICC\Imulated arrea~ the current wpport ordtr ha:I priority. If tho am(IO.UIt coIlectod is ;...wrocient to satisfy III the SUppOrt II1d Irreuagts due. the ckpartment U directed to allocate a pro rata Ih.tre of tl>( iltnOUnt coIlectod in the !flIIV>fr Pl"f:Kribtd by thi$ ..edlon. The state lIU$oJrcr is di~ to deposit the coIltdion of supporta rect ived by tht statt dep1lrtment into. sq>,I.rat., inttmt.bu.ring ..occunt. The inttml credited to tNt xoount is to be cmJikd to the Public Wtlfm -rru.t f'und$ "ith tho int.rc.t to be ustd for the gtntral wtltan purposes under that fuod. The ~ btcomes tffectM on the lirst day d the third month following its becoming law. Efff(:tjVl'!July 1.1997. 3. Ulliform ll1t.nlat. FamIly Support -Act .245 The AIWmII..oo .... Institutt btgln a study sew ••1yursago revitwing the Uniform int"'slat. Family SuPPOrt Act drafted by the National Con~rtn« of Commissionm on Uniform Statt \..lI<.-s which had bftn drafted by the Commi.sion in 1992 and ~ed by .. majority of the jurisdictions in the United Slatts. In 1996 the Iiw ""lOS ammdtd to proIIide. smoothu transi . lion bdwttn thoM jurisdictioN .... ho hid ~ed UIFSA. ... well M to make other jmp~nts. UlI'SA will rqlliC<! ~'. cumntInttrst."lteIncome Withholding laws. Section 20 1 forms the Wiis for jurisdiction ........ non· ruidents. It includos, othtr drcumslmta, jurisdiction ....... r a non-residtnt who hils <lSKrted p1Irentage in the new Alabll"",', PunitiVl'! tJther'. Rogistf)l as pn.widtd in AI.a. CcI<M f 26-1 Oc· I. Section 202 de.iJ with one of the

amone

",*,r probltms of tl>( cumnl Inltntate Income Withholding laws .... hich is thaI ther. ""'1 be _ral support orden from difftrent slatu in d fKl. at the: sa_ time. UlFSA. adopts. one-order . ysltm and resolves disputes bdwttn COffipoting Jurisdictional asKrtions by tsIOlblishing. priorily lor the: tribuNI in the child's home .tatt. If the child .so.:. not have ~ home .tale. then the firs t iiiing controls. A major chanjlt undtr Ul FSA. will be the COIlCtpt of continuinll =1... i,1; jurisdiction owr a child support ordtr (CEl) . Under Section 205 if Alabllma i.sues • child support order consil tent with thiJ ~ it has continuing, aclu_ si,... juri$diction ....... r the child support orders as long as Ont 0( two circum· stances continues to e~ilt: first. SO long as ~1No relNoiJIIlhe residtr>« of the obligor, tht obligee or the child for .... ho~ bentfil5 thc: support order is i•• UN to. and. second. Alabama retains CEJ unlus all of the parties file .... rilltn constIlU with an Alabama courlto allow another court to modify Alabllma·. order and a»ume contlnu · ing, uciusiVl'! jurisdiction. Liktwiw. ~ma will be nquim! to 'KOgn.i:l.t the continuing, ad ... "", jurisdiction of another tribunal .... hich hils issued. child support order under a law substantially limill.. to this iId. ~r. a ttmponf)l order tm.t i. i.surd f!X purle or ptndinll. ruolution of a jurisdictioNI conflict does not cu · itt continuing, ucl ... ivt jurisdiction in tm.t issuing italt. Howt\'Cr. if I child support order of this state i. modified by . nother .tate in compliance with thiJ act then AlabalN loses iU continuing. rulusivt jurisdic· tion with rtprd \0 the porspectivt enforcement of AlabJ,ma's order and may ooly enforce tht order thai wlS modified as to the ounounl5 accruing before the modirlUlion and enforce the non-modi· f.ablt aspectS of the order iUId provide

other appropriate relief lor violatiOIl$ 01 Alabama's order which occurred belore the dledive dat~ 01 the modification. Under subRction (fl, if Alabama is.o;ues a spousal support order then it has con· tinuing. oxelusive juri.diction throughout the e.istence of the support obliga· tion. Con,-ersely. Alabama may not mod· ify a spou$./ll support order that is issuffi by another state that has continuing exctusM juri.diction over that order. Section 207 provides that if there is only one child support order then that order must be recogni~ed. rurthermo .... this section provides that if two Or mor~ child support orders haw bttn issuffi with regard to the same obligor and child a procedure is establish"" whereby Alabarm will determine which order to recognize for purposes of continuing. exd ... i.... juri.diction. Under Section 3OS. il Alabama is the responding state ro>aiving a pdition lor support it may order the obligor to comply with it including ordering income withholding. setting aside property to $./Itisfy the support order or pladng liens and ordering execution On the obligor's property. f urthermore. the court may order the obligor to s«k appropriate employment by specific met~, order reasonable atlorney Ie.. and grant any other a"ailable reli~(. The act specifically prohibits Alabama or any other state from conditioning payment of support upon compliana by a party with provi · sions relating to visitation. Section 310 provides that the [)(:partment of Human Resources (DHR) is the inlormation agene)' under this act. Section 312 provides that il a court Or ,,*ncy finds that the health. safety or liberty of a party or child would be unrnsonably put at ris)c by the disclosure 01 identifying information. it may order that lhe address of the child or party or other identifying information not be disclosed in. pleading or other document that is filffi under this act. Section 313 concerns cost and Ie« and specifically provid ... that the peti· tioner. whether it is the obligor Or the oblige •. may not be required to pay a fil · ing f« or other costs. H~r, ilthe obligee prevail. the court or agency moy asse.. against the obligor the cost of the ming 1«5. reasonable attorney fets and other costs. necelU.ry t,,,,,,,I;md oth..

expense. incurred by the oblige. or the obligee', witne."... Attorney f... may be taxed as costs and may be ordered paid directly to the attorney who rm)' then enfo"ethe ord.. in the atlorney', own ...me. Subs.ection (c) requires the trio bu ...1to order the payment of cO!ts and reasonable attorney fe« if the tribu ... 1 determines that the hearing was requested primarily for delay. Section 314 provides limited immunity for the petitioner who is physically pre5'.'nt in the ,tate to participate in a proceeding und .. thi' act SO that the petitioner is I10t ame ... ble to se",ice of ci~il process. Section 316 provide, 'pecial rules of evidence and proc.dure to be used in the enforcement of this act. Article 5 provides a new procedure whereby an income withholding order may be sent directly to an employer in a second state without the necessity of utilizing a court in that state. Under section 502(b) an employer who ..coiw. an inrome.withholding order from "not her state ,hall treat that income withholding order as if it had been issued by a court of this state. Sedion 504 provides that an employer who complies with an inc(lme·wilhholding order that has been issued in anoth· er state in accordance with this act is not subject to civil liability to the indi_ ~idual or agene)' .. garding that with· holding of child ,upport Irom the oblig· or's income. Conwrsely. Section 50S establi,hes a penalty lor an emplO)lor who willfully fail, to compl)' with an in.:ome-with· holding order issued by another statt. The $./Inctions will be the $./Ime that would be imposed on an employer for failing 10 comply with an AI.harm income withholding order. Section 506 provides that an obligor may contest the .... Iidity of the income withholding order issued by .noth.. .tate in the same manner as if the order had "'en issued by an Alabama courL Section 507 provides a mechanism in which a party may seek enforcement of a support order or income withholding order that has been issued by another state to Department of Human Resources. The Department of j'luman Resources may u,"" any administrative procedure, it is authorized 10 use in

Alabamo to enforce the support order or income withholding order. If the obligor d"". not conlest the adminis_ trative enforcement then the order need not be registered. ff the obligor contests the validity of the administra· ti~e enlorcement of the order then DIlR must register the order pursuant to Article 6 of the act. Article 6 provides the mechanism for the enforcement and modification of a support order after registration. Section 6()2 provide' the procedu ... to register an ord.. for enforcement. Section &03 provides that an order from another state that is registered in Alabama is enforceable in the same man· ner and is subject to the $./Ime proce· dures as an order that has "'en issued by an Alabama court. Section 605 provides for notice of the registration 01 the support order or in.:ome withholding order that has been issuffi in another state. The failure to contest the ".lidity of the order within 30 day$ after the date of seovice obtainffi

frf-~'"

J. f (lrrtS4« I.I<Bu}s. lit Yoo C$labtish goal. fo< orealing wealth. W. help you meet yoor goal,. while

pt(>ICCting your f",nity and eslate.throogh insurance and

financial produclS.

1m",,,,,",, C,.", 1'1"", Sui" 500 8;""i"8_III. 35242

11)1

')95-//11

unlltr the Abbama Rults oICivil l'To«dure willl't$Ult in "" oonIirmation of the order. This win rrKluok lily flIrthtr contest of INot order "ith respect 10 any maUu that could haw bun asKrlw. When registration of an incOfl"lt order has bun compltlw the court will notify "" obliaor·s tm~r purswont 10 the AIWmI incomt withholding law. Stction 606 esablishes the procedure to contost the validity or tnforc.mtnt of the regiltered order. Section 6()7 provides the deftmn that are avaiwm to contest the registration or enlor«ment of an order. Stction 611 prtI'\IiOts lor timittd circunulMKu in "-hich ~ .... ""'y modify I child sUPllOrt order that has bun registered in this sute. Once Alabama has properly ilSSumw jufisdictiOf\ tG modify .. child iUPPGrt Grde. that has bun i$Sued in another mIt Alabama btoornes the court h.wing oontinuint. m:1~ jurisdiction. SedilWl 61) opotirouJly ptWidr:s tNot

NEW WlXDO\lS VERSION _ ,ClH-&"

ToII",."a.--s."on _ _

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' ,,*, 1&13, 7·1I·ll.IJ& .......... ~ 6Ol.I9'.w-y-&dG_

001·_............

tou. SI). a 5'o1lt:l T. r. 11m

1.800.492.8037

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if "lithe parties Ire residents 01 A.L1ba"", and the child dGts not reside in tht ....It iuuing the child suppOrt order then A!.aban\ll has jurisdiction to en/(II"ce lInd modify the other .tat,·s order in a procmling to register this order. Article 7 establishes" procedure for" dtttrmi ... tion 01 pa,"",,,,,,. Section 905 proridos that tfectM hnuaty I. 2000 sections JO+8O through 98 and JO.3.90 \hrouitI99 01 the CadtoF AJobamo "ill be RpI'>IItd. ~. after Oectmber 31. 1997 00 actioos may be filed u... the pnailing ~ Section 906 ptWidr:s that all proceedings that.re filed prior to hnwory I . 1998 wll be geMmed by the Iiws in e««Ilt tht time 01 the rornmenctment of the procndings. Ilowevtr, thoot proceedinas shall br go\'emw by this act afler D«ember 31. 1999. I'rocmlings filw lifter JiIIlUiry I. 1998 shall be iOI'emtd by this act. Thi" IICI Wets tff«l January I. 1998. 4. Flmily AuiltlllU PTDfr"lm-IBill 4id nGl paul This Ad c.... tes I family as,sistlnct program to be operated by the Department 01 Human Ruourcu /Gr providing benefits tG nwJy familiu pur· $lWII to .... I'f:rsorW RUpOnSibility and Worle Opportunity R«onc:iliMion Act of 1996. the Ftde ...1Welfare Rtform Law. Ull<kr Stction 5 the De~rtment is charged with the responsibility of uta\).. li.!hing eligibility requirement.! and b€n · tfit levels for the progrllm. For exam pit. under WMectioo (d) btnefilS kI. a family "",y not be incrustd upon the birth 011 dlild tm mooths or more after .... dlte of .... ~rtI\'Il 01 this /w;:L Stction 7 establishes I(ImI: minimum eligibility requiremenlS including II requirement of .Iucctssful participation in the work program. no. r«ipitnt o. application fGr family assislince bmdilS mll$\ wist in .... e1I.Ibiishmenl 01 paternity 01 tht flther 011 child "too is bGm outside oImarriage. FurthtrlT>(ll"t. the IflPlicant must indieate wh<1htr any individual member of the housth<>ld has been CGrWicted for the pOlStSSioo. use Or distribution of i controlled substance. Sub.l«tion (b) establishes circum· sunc:ts in which benrfits under "" Family As.IiStint program will be dmitd. FGr uomple. tlltrt is ~nerall)' 160month limit upon rettipt of bendits.

Aoo illtligible "ill be individwols "too: m how bem <nn\icted of making fraudulent ""lements in order to re«iw cu· tlin !tde ...1 bentfits: (2) art n.eing to avoid confinement after they have been convicted 01 certain crimes: GT (3) Ire neei"ll1xc>U.II' they t>avt violatw a condition 01 probation or parole. Mflrt<Mr. III indMdual who is corwicttd 011 felony thit has lIS an tltmtnt .... posses. sion, use o. di"ribution oIa controlled .ubstancf i. al>o intlil/iblt. UnQualified alien. must be denied benefLt.I. Stction (9) ~fieI tNot 00 J<lult in the Wnily as.istanc% """"' pn)f/J3I1I funded I7y the fetlmI gowmment shall be ~ by ill ~ if I ptI'TTIiI1tfll empIoytt if Wd off in Grdtr to crtiI. a VIQIIC)' to lit filled with the adult ...eking to rwt~ in the work act;"';tiu PUf"$Uinl to the federal wi~ program. Section (10) requires any perSGO "too is ZO)'Un or Gkler ..too is Gtht ....ist tligible for family assistanU pfOir;lm 10 Ittend school if that person has not gqdu.1.ted from high school or obtained a CED equivalent and i. phyiitally;and mentally able to attend school. MGre~r. the person must be a parent (II" taretlker 01 .... deperldmt child ..ith child gr. available and in a worIc pmgram oIlt lust 20 houn I Wftk and his or her usm.mmt indicatts that idditional educatioo is Ilffiltd. Subaection (bJ requires t~t I caretaktr ....110 is rw:Mng Ixndils ml.lJl fOSUrelhat the minor. drpendent dtikl attmds.orhool. Section (II) RqUireJ that lIS I condi· tion 01 tligibility lor bmdits through the Flmily Auisl.lra Proc""", ~ IflPlignt muM usign 1/1)' rights to suppOrt to the Department. no. ipplicant mull coor>trate in establishing the paternity of a child born out oI .... edloc~. 1/ the Deport",."",t det~rminn tNot the a!"Plitant is failing to COOperate .... Dtpartment shall reduct or ttrmi ... te assislin« to .... family. Under Stction (12), in order tG rKeM bentfils. an unrTl/lrritd individual under 18 ....1>0 hu a mioor child that is atl.ast 12 .... teks old and has TIOt Gbtaincd a high school educatioo CIT equivalency must 1M "ith his or her parmt or gwordian uniQll "" Dtpartment dettr _ mintS that such living am.,.ment would be not in the best intemt of the miTIOr child. If a mioor child in this sit-

uation is not living with his or her paT' ent or legal guardian or other ajljlropri· ate adult relatiw. then the iXpartment will make appropriate living ar .... nge· ments. The mioor will ~ placed in $Orne othe""i.., appropriate adult supervised suppOrti,-e livi!lJ! arrangement. Section (14) requires the Department to tlfO'ide child care for eligible participants who require wth care for t2 monu.. $0 that they may acapt employment <II' remained emp~<ed. ~lore<Mr. they must provide traruportation up to si~ months or ~Ie r.imbu~t for ~ period of s"' months \0 allow individuals to partici· pale in an allowable work activity. Section (15) creates a State Pamily Welfare Reform Coordinating CQundl that i.< to..,,,,,, as the coordinati!lJ! body for wtlfare r.form. Section 116) crtales tilt Alabama \\'fIfar. Reform Oversight CQmmission. II is the duty of the commission to .... ure Alabama's compliance with tilt Personal RespOnsibiHty and Work Opportunity Recor.ciliation Act of 19%. Section (17) Mlabli.<he:sa County Welfare Rct'orm Coordinating Council for each county. Tht council is established 10 further the goals of the family assl<taru work program. Each CountyWelf... Norm Coordinating Council is \o.>ct 115 a facilitator bet-...... n local county etl1llk»"rs and applicants for and recipients of tht fam ily assis\anoe benefilS. Section (17) requires the Department \0 oo..lop a pe""",,1 ........,.,..ibility contract for each family. Among other things the plan is to establish employment goals and to inform the ind"idual of the services the Departmmt may pl'Ullide that individual toward reaching those goal!. Sechon (20) pl'Ol'ides that generally each caretaktr rttI'iving assistance under the prog .... m is requir.d to engage in work once the Oepa.rtrnent dder· mines that the recipient i, ready for work. Subsection (c) e",mpts adults from mandatory work activit;· under sptCified circumstances. Subsection (d) sets up the minimum average number of hours to work per "'ffk 115 not fe>l"r than 20 per ....e.k or 35 houl'S pt. w.ek for a two-parent family. The Kt becomes effecti,,, July I, 1997. 5. Alabam. Child SUPpOrt Rdonn Ad "f 1997--S.458 Section 3 authori,., the State Tille IV·

o Agency to enter into agreements with financial institutions whereby when a financial institution receives notice of a lien or If'\/}' from the agency the fonan· eial institution .hall encumber and sur· render to the agency any amounts up to the amount of the lien in an account with the finaocial institution in the n.1m of or av.Hable to be withdr .....n b}' any non·eustodial paTtnt .... ho i. subject to a child support lien or If'\/}'. Subsedion 4 provides that the state Title Iv·n Agency may secure informa· tion regarding an individual and the individual's empl"),,r through admini.· tratiw subpOena to any public or private company or agency such as a utility Or cable television company. Section 5 requires a SociaJ Security number 01 each party .ubj«t to • divorcr to be included in the divorce certificate filed in the offICe 01 ",tal statist;cs. MOI"I'()Ytr, all diwT<:t de<:reu. suwort orders, paternity detenninations and ilCknowledgments shall ioclude in the record the SociaJ Security number of each party subject \0 the de<:rff order OJ deter·

mination or acknowiedgmenL Litre...ise the Social Security number 01 both parms to the marriage shall be placed on the mar· riage license and C<!rtificate .somtto the Offict 01 Vital Statistics. The Social Security number 01 each dectased individ· uaI shall be placed by the OffiC<! 01 Vital Stati.<tics on the death certificate. ~ction 6 prO\-'ides for the e,tabli.h· ment and ope .... tion of the State Dishur..,m.nt Unit that .hall provide for the collections and disbursements of payment, made under sUPpOrt orders. Subsection (el delineates the respOn.i . bili ti .. of the State Dishu,...,ment Unit which includes providing one location for tilt employer to send the income withholding payments. Section 7 pl'Ol'id" for the e,tabH!h. ment of a state Case Registry. Section 8 provides the state title IV·D agent, with broad powers in situation. .... hen the .. is no action pending before a court relating to parti.. or issues to establish paternity or to establi sh. modi · fy or enforce support orders. Specifically. they are provided the authority to order

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genetic lesting, to SUbpoel1lo infOl'mlllion. 10 0I'dtT lhe 'mple· ..... n~ion oI ...~lhhoIding ordl'l'$ ...J intruM !he amounl 01 monthly support pa)TnmlS intlude if lheu is ~rdue support. Abo in cues ...i\m theu is II wpport Ilru/1r· ~ lhe agency may inlua.pI or sotiN periodic or lump SIlrn paymmts from a stale or Ioc.il agency including workers com' ptlISIItion ~nd 10Utry winnings, U w~1I ;as sotizing ilSS<'lS of the obligor held in financial instilutions and auaching public lind privale reliremenl funds. This seclion includts provisions for due prouss saftgwords inclu-ding rurulurroenls for OOIice lind OI)I)OTIunity to contest tilt actions mil /III otlPOfIunity 10 IIpptlll on tilt record 10 II judk;,J IribunllJ. Section 9 c.onctms filing of OOIice ofliens lIg,Jinst rut or ptl'SOlat prof>trty by the roon<Wlodilll parent ...-ho resides or owns prfl\\tl'ty in this stal~ lind owes pUl due support poyrroents under 42 U.5.CA f 666411(4). S«tion 26-17·22 of the Cock 01 AJllbonw is amendt<.! to provide Ihal II signed, voluntary acknowledgment of palernity thaI is comrleled in accordance wilh lhat sotctlon is considered a legal finding of paternity subj«1 10 II righl of rescission of 60 dilys. After tht 6O-day period, tilt ligntd, voIuntary;ocknowl· Namtnt of p.lltmity moy be chal~ in court onlyon the louis of fraud. dum. Or "",terial mistake of fKl. The bunko of proof in tNl i~ is ~ tht challmtfr. Section 30·3·60 is IImmded 10 ap.lnd lhe definition of i~ to 'ntlud, any other continllOl.ls or periodic income from whate-.>t. source, whelher eamed or untamed ..copt as

lI.m,...,

apftuly limited by 1IIw.lt 'Pt(irlQlly proYidtl; IhIot income includts paymmlS rnacIo puDlWlt 10' ~ns,on or ntirtmtnl program u,,~II;as untmployment compmsation ~ work, """,'$ oomperual.;';" mil di$llbility ....ymmlS. Efftdiw July J. 1991. Acrv.nc. Dlr.ctlv. for H. . lth eare 1"htsot two atlS thaI deal with advance directi\'ts amend Ala. <AdIl If 2-8A·2Ihrough 22·80\·11) and a sotrond billlhlol amends f 26-1·2. Ad ' 187-Advan« OirtCtiws ror Health Coort tnurroera[tI tIW ORr can U«lIt£ a do<;umtnl IhIoI ....y indudo! lliving will, tht ~inlmt111 of heallh Qfe proxy Of both. II furlhe. sotls ool. a llatulory Iorm which iJ to be ligned by I"" penon granting the _ r ~ witnw.td by two parties II!Id l ligned illCCfplan« by lhe person illCCfpting tlw health Qrt dirtCtiv«. This Act was signed by till' Cow:mor .nd wasoffecliw on April 15,1997. Ad 1360-The second act, which i$ an amendmenl to Al.ooma'5 current durable ~'er ofattome)' ja,.', apftuly proyj,du [hilI. person !NY duiJIN.le, under a durable ~r 01 dlarney. an individu.ll who will be £rnp<l\'I'f"f"ed to niP. holth Qrt drcisionl; on behalr of an individual in the IIWVItr sotl forth in tht Nalural Doth Act. It pn:Mdes rurther 111M 1111 durable _1'$ of attorney UtcU[ed prior 10 !he .«ecti>'t lAt. ollhi. act shall be tffectiw 10 tho exlent 'Pt(ifiQlly providW in this act Thi. bill i•• fftctiyt May 8, 1997.

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The foll""'ing Law Inslitule drafted bills .... r. atoo ~ by Iho ag;slalurc: Unoform Multiple Persons Accounl AcI-H.375 uee Articl. 5 (I.eU.1'$ 01 eredit}-Il.37~ Uniform InlO1"Sl.itt Family Support Act-Act 1'245 Transfer on Oalh Stcuritiu Rtgi5tration-ll.707 5« March 1997 AJa/xlnw LtnJoJl("" for rtview 011,,"- bills. The nut "~gislat''''' I'Irar·Ur" will includ. all other itoms pused dUfing Ihe 1997llegular Session or Ihe ~gillatufe.

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I.-lnstitut.'s home paao. Durini tilt St:ssion the llatus 01 thot Uoow bilt:. ..... bem kepi up to dill. tach Fridq. The tat of lhese bills isllOO _ilable online Iiong with bill numiltl'$ and sponiOl'$ . Under the "Unks to l.Jw" r.lat.d dtt. tlwr. is a "dick on' to lhe hom. page for .lal. govornrroent, which includes the t.tgislalure, Slate agencies lind constilulional officors such &I lhe Gowmo(s office lind Secrtiliry of Stat •. Theu are also conntdions to the statt I»r, ,lJ.ab;,jnu SdlOOl of Law lind Cumberland School of 1.-, ~ wWling -.y other 01' furthtr iNonnation concerning tht Instiluk or any of its pn:iJects may obWn this ~ t,on by conlaCting Bob McCurley, Director, AlabamILMw Inslitult, P,O. Boll 861U5, Tuscaloosa. AIaba"", 35486·0013: fu (205) 348-8411 or phone (205) 348·7411. •

Spring 1997

STATISTICS

N T ERE S T

Number sitting lOr exam ..........•.••.••..•..••.•................................................ 369 NumIx. ~rtir.td 10 Suprnnt Court 01 AlWm.I ........................................................ 186 Cc:rtif.atW)l'l 1'Io1~' ............... ..........••.••...•.. ......... _...•...•.••..••.•......... 50.4 pnulll

c.rtiflcatlon ......,.ntaee.: Universi ty 01' AbbooIN School of Law .•.••.••..•...•..•...•..•..•• . ••..•..••.••..•...•..•...•.•• 7] ptTcent Cu,,*,!an<.l School 01 Law . •..•...•..••.••..•...••.•......•..•..•.••••••••••••••••••••••••••• 75 ptrunt Birmingham School of Law •..•...•..••.••••••••••••••••••••••..• ...••. •..•.•.••.•••••.. ....• 38 pt.«n! Jones School of Law ...•......•..•......•..•......•......•.....•...•..•......•......•...... 55.1 ptrcent

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MEMORIALS

Lisa Michelle Shannon

Silt is surviwd by hr. ~rmll;, Dr. Williirn M. &nd ~rlollt A. Shannon; a sister. Mrs. Kimberly A. flulldl; i brother. Mr. David M. Shannon; a grllnd!nolht •• Mrs. Edna M. Shulnon; "unu Ms. RegiN M. Shannon &nd Mrs.ludjo K. Rushing; VI undt. Mr. WiIIWn M. Striplin. III; &nd i btlovtd rltfl/ltw. JW.oy D. Hulin!. In honor oIlis.a·s mt1OOry. tilt liN Michelle Shannon Memorial fUnd has been establ ished 10 benefil , deselVing studtnl it Veslivia Hills J.igll School tiCh )'Qr. Contributions an be Hnt to:

ho A1ab.ima S~le RIo. lost 00f of illnewut Ollld moil! promis-

Ing mtmbors on March 13, 1997

with 1m death ofLw. MkllrJlt

SNnnon. 19t 25. Uu _In a.so(~lt with ~ law firm 01 Cabmm,

Johnston. G.ordner. Ourms " O'Neal ;n Birmingham, ALlba ..... Lisa "'''' born on May 24, 1971 in

Birmingham. Atabarna. SholUeooro lhtavia Hills High School MId gradWIled in ]989 <l$ its ulut.lItoriln. She Wente.! ...... mber 01 her high KhooI ~lt tum -r durifllil her senioI' yeo. _ namrd lilt _I

Rirmillihml Kiwani> Club Youth 01 the Yea. iOd tIw WVTM.(;hanntl 13 Yoolh oIlhe Year. Usa all.oded Wake FO~tt Uniwrsily on I Reynolds Schobnhip and tuned lilA, wmmtl rom laude. in EnaJish liln_ Iture in 1993. On lht dun', list aU • i,g,ht Hmutus. shE was na~ 10 a nllm~r of academic honor SOCitlies. including Phi Beta KapPl-. Omicron Odta Kappa. Colden Key 1l000r SoddY. Mortar iIoud, and Sigma 'tou ~lt.I.. Despite her busy xadtmic sched. ult it \\'ab: FOftSt, 10M $Iii! found the lilnt 10 >'OIunttcr asa 8i, Si&ter in the Big BrotMl1IBig Si'lus O'l/ll1izallon, As. crowning achievement of he. undergraduate C/llUr. she was chostn to speak Illler comlml'lCfll'lenL

Mer Wake 1'0000,l.iu lltmclrd the Un",",i!), of Virgirm School 01 Uw. She WJS &II rditoriaJ booord mtnUr of lilt Virginio b!t;ronmenlalLl;rut Joom(ll"nd a teaching assistant in

r"/o'~j. HIH,

m". !kItod

do M.. MrrilefJ DWttJ.. iNIJote Coiu:It

223S U- Rod: ROtMI

first·~ar ItAll rnorth md wriling ~lolSS6. Slit rtteiwd IItr J.D. from

Virginil in 1996 and Wi.! admiUtd 10 Iht A~ma Stale fiar lhal same year. Lisa t..l" p;w;ion lor tht lru and for Im>tl. Slit pL1~ tht clu$iQl pi."lno. ilud,(d lIrt ItistOl'Y.1nd rud liltr.llurt \/OI'Kfously. Slit QP«i,Iolly ~ rudins British romanl ic pOtt!)' (John

Kellis Wi.! her lavorile) Ind was in tlCcelltnl pod hem II. Jler Ira\/tls took her 10 Italy. England. Pr.lnce. Spain. lnd Germany. and in 1988 silt "'tnt to tilt loootr Sovin Union as VI Amtri~ Youth

Ambissidor.

The number 01 individ",ls ",110

10'Vt Lisa and miss lit. grtitly;, legion.

J_pbY.M ....

IIltnl1 ......"'. AIaIoo ....

Arthur Oavis Shores Th~

Birmingham Bar A$wcilllion losl l one of Its most dynamic members through the death of Arthur Davis Shorl's on Monday. [kcember 16, 1996. He""" a nati".., of Birmingham. having been born in what is known as the Wenonah section of the city on September 25. 1904. and attended the Tel Schools and Ihe Birmingham Public Schools. Arthur Shores was a graduale of Thlladega College and LaSalle Uni"..,r.ily. Beginn;ng a greal carttr in 1937 afler having se_d as a leacher and principal in the Ikssemer City School S~stem for a number of ~ear •. Arthur Shor'" entued the arena of law well prepared 10 face the vagaries of pracI;ce. Hi. was a gene. al practice , but

because of the life and times of the 1930•• 1940s. 1950. and 1960•. Arthur Shores became known as Ihe protector of personal rights and civilliberti ••. He was involved in landmark deci,inn' affecting equal pa~ for minorit~ teache", open accommodations in public faeiliti",. voting .ight. and public 5Chool desegregation. Nol .topping with those nntable achievements. Arthur Shores was instrumental. work ing with Dr. A.G. Gaston.;n establishing the Citiuns Federal Savings Bank in 1956 and was a part nf the group that founded the American National Bank. now known iLl the National Bank of Commer,e. Known 10 many u a protfCtor. Arthur Shores exemplified the very but in manhood. lie was a loving hus· band and f.ther. a proud serving mem·

be. of hi. church and a lirele.. civic

W<l.ker. He was known natinnally and internationally. but most impOrtant. he was wen known in this state and this city. Whereas, the Birmingham Bar Association mourns the death at One of its proud members who se1Vl'd untir. ingly in the legal profe.. ion for more than 50 years; and Whereas. Arthur Shnres waS a true friend. gentleman and a fine example of what is good and honorable in men;

'0"

\\'heuas. we a.e all bell.. people and the quali ty of life in the State 0( Alabama has !mn advancci because at hi> work.

---Carol MR Smith, pr..ldtnt Birmi nt\llm liar Auqciatlon

SlJR~1

Robert Harold Allen

T.n..... um

F,gliu AFB, Florida

Birmingham

Admitted: 1975

AJimitted: 1924

Died: February 24, 1996

Wllt.r Eu,ono GI"..,n

Dkd: April 14. /997

Uriah Gwrge R"", B.II

Mmillcd: /953

John Edward \\lI..,n. J r.

Birmi1lgham

Died: April 25. /997

Mobile Admit/cd: 1936

Admilled: 1947 Died: February 28. 1997

ThoIQ3 C. Hollingsworth

Died: January 1. 1997

William D. Bolling

Admillcd: 1!l82

Arthur J. " ann

MoMe

Dkd' Decllmber IQ. 1996

Hirmingham

Admil/lcd: 1948

Admillcd: 1948 Died: Noveml>er 17. 1995

H.rbert S. Rico, S r.

Died: May S. 1997

MonlgomCTy LarT)'

"'·lyn. Dobbinl

Admitted' 1937

MkltHl Do ....1d Cook

Died: April 24, 1997

Val/ey

Admilled: 1978

Admittcd: 1973

Died: January 26. 1997

Died: May 11. /997

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ASI!', on8oing dfort to ~nswtr thiJ quution ltd to lhe develop"",n! 01 a video pruenlat;oo

fw la""'ltrl to wily WI in their own communi!i ... "'To StM

Public' .. a compku public strvi« video fH'tKnlalion IN.I includes an eight-

minuu vidto. , Iwldbook aispHCh pOInu. MId dNilni informotiooW bmchu,.. for 1M audiMcf.

Daitned lor ..... in o.puIUn(j to (Me md «MM"IUI"Iily arouP6. Including schoob.. -.y loa! boor ~~ion

in the 'Uo~e

Highligh~td

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lUll 000:

~ C<II'Y of

the VIdeo p.esm~ation and 300 bmchu ....

programs indU<k Lawyor R.(ural Service. Aller1\ll~i .... DispulO ReiOlulion Cenw, Law

W«k. Dru8 Aw.,..,nns projtcl$ ~ School Partnership programs. Leo lkhtli P"roduo::tio::o ofBinninglwn -...orked with a sub-committ ... ol tho t.a..yer Public ItdHions ~ ... sho::Itirc. «LlJIlII...t fIOOl·pro-

ducbon oltho \Ode(\. The AS8 60itd olllM ConwniMionm mt/>'oSi¥60'1y funded and "-"PO<"ltd tho: mil", ~ Fiw doyo ol.t.loling in cmlralloc:a· lions mabltd diwrsity In ICl'IWS and opJI(Ir!unititJ lor (;Ner 60 ~

ancVilr 6...,... to participatt. DaignI:d lor ~ du~ the urramilll!

th. . to 1M! I'f2I'- tho video aIsoailows rdibrC 01 JO.....t tiO0fCIlnd ~ lor I'ldio and ttJc-,isioo, ~.

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ol.lDnII-rvee rNtions pbn. The kty to the prQllram·. SOCttS$ lin with each bar

mtmber. If the \/Ideo i$ root s«n by ~he public. OUr efforu will

ha,,. !xcn

lor naughtl Seoe p;oge 221 to find out how you an gd. !Ius l"'II"fUont ......... to your DDmnW.lfOit)<

fOr mMI information, ronllKt /"" C4mmunkrzlions l)q>artmnol 011"" sidle /xl, 01 (334)26!J·1515. txl. 8,

J~·6154

o, comm@U(dOOWTf/.

Law Week Activities Merlling lhe 40" Low Dey uiebr..,ion, 1hi, V,,"'I Low C.y theme w" ·Celeb<.,e You, F,_m" , Included In Ihe S181, blor-sponsored lICIiv~ie1I we'" P,"""..hlp Program, placing l,wverS in a y.ar.long pIInne rship with individual clu,·

room •• end Ihe ,&cond .nn"ol Law Day E•• av and Poste, cente.t, whleh drew over 1,000 entries thl' ye.,. In odd;';on.

during Low W_ AI.bamo eno,neys voluntH'ed to Spe.k ,I ocI>ool,.nd civic grQu!)$, conduct counhou.. touro and provide enawerS 10 legal quef,tionl ,hrDUgh IrN logo' ","1I·in lin"_ A unique po-OQnom 11\" lIu W<ln naliono l and state recognition took place In ElCambi. Countv. where high

school .. nlo .. made up the jury In aClual dreuit coun ca .... ond d.nlrmiMd Ike outcome ol,.d, ".... The winne .. ", lhi. yea"l buy ond Pos,e, Contest wer.: Post.. Coni.... G.adn K-3 Am PI.oc.r_DeRyen Austin, Union Si>fings Ellm,nUl", S&COM PI,c. - Mag.n $ . G'OVI', Cre.tline Elementary. l1al1HlI& Third Pl8Cft -ll.honda Wheeler. Union Sprlngl Elementary HonorabhJ M~.iOfl-Chloe Jtflrlet. Walke. EltmenUlry. NOf'Ihpon _

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408

Firs. PlIICII- T.J. Sclrbtough. B.ke. ElemenUlry. Mobil, 5ec<md PlIICII -Chri. Roberti. Se ker Elementlry. Mobile Third Place-lyle Cu rry. Floyd Middle $(:hool. Montgomery

Honorable M,rUlon (tie}_ Matthew McKim. Held Elementary. Montgomery; Kimberly Cauthe n. Vaughn Road Element;lry, Montg.omery; tluako Osemwotl. Bear E~pIoration School. Montgomery i .... y Cont. .l .

G._

1 ·9 First PI_-lvnene F",.ie •. Baldwin Junior High School. MontgOmery

S«:ond PI_ _ R'chel McAbee, H,nselle Junior l1igh School Third PI,ce - Bill Welke r. Hertsell, Junior l1i gh School i .... v Con".t. G r _ l()'U First PI_ -S.rah Beasley. Muscle Shoals High School Second PI_ -U.. M. Sunemeld. Cenoll High School. Third PI..,._K.lle Cokeley. (:1"011 High School. 0 ..... Honorable M'ntion-Keren Andrews. Carroll High School. O.lrk

Oz,'"

In addition. tha State Law library awarded. opedal Award 01 Merit lor Cre81ivily 10 lou nh.grader Fae Zirion of Holtlnger's 1,Iand School in Theodore for the mOlt creative polter. Fl.s" second Ind third plKe winners receive U.S. Sivings Bondi. Honorable mentions ... welt II alt participating IdIools 1Ilroughout the SUIte. racei", ceniflQltl 01 recogn~"'" for their participallon.

199i Law Dav Poster

"It Is l'fIal/y powerful • .• "

"The '-owyer's Creed WQS so

""pres.~i/Je-it

" It

reminded me of what a fowl/fir itl

s lIppfMed to he • • • "

makoti mo proud again to be u lawNer." _ 1.AWYEllS· COMMENTS ON THE VIDEO

" I did" 't reoff::e how mUflN progrums /lO ll had to help the publlc:. " " J/OW COil our $chool purtle/pult! III Nour plJrillershlp program?"

"It UJUS u" excelle"t video ... wllh lots of helpful illformatiOIl."

TI mPUBLIC'S COMM~; NTS ON TilE VII)W

HOW CAN YOU DO YOUR PART? • Mlfke .Uflf rOUf btu ...ocilfl/on •••• Ih. Ifld. o .. ,oon '" PD"ibl• • • TeK' IfVlry opportunity to thow thn prftfJIIlfJtKm in yOur community, frOm uhool. to d1un:hH to civic 1/fOUP' end ortJMIll.'Iont. • If rou hltv. n't ' /r'/tdr vo/untllr. d, ch.ck YES b. ,ow 10 Ifo/untllr to prfJI.nl the prog,.m In rOllr .,,' wh.n " qufJlte d. Th . n f/t1l the form to COMMUNICATION. It t (334} 281·8310.

TO SBRVB TilE PUBUC is (l complete ])\Iblic service video presentation that includes an eight-minute video, a handbook of speech points and detailed informational brochures fo r the audience. De~igncd for use in $peakin~ to civic and community groups, incl uding schools. every l(Kal bar <llsociation in the state received at least one free COpy of the video presentation and 300 brochure$. Highlighted fjrogral'l'lS include Lawyer IMeml Service. Alternative Di~p u te Ilesolution Center. Law Week, Drug Awareness Project~ and School Partnership Programs. Using guidelines and infor· I'nation provided to lhen" Leo Ticheli Productions of Birmltlgham worked with a $ub-COIYlInillee of the Lawyer Public Relallon~ Committee on shooling. ediling and flnal ilroduction of the video. The ASH Board of Bar Commissioners enthusiastically funded and supported the enti re project. Five days of shooting in central locations enabled diversity in scenes lind opportunities for over 60 lawyers lind/or firms to fjarticiPilte, Designed for lise during the upcoming three to five years, the video also allows editing of 30- and 60·second segments for radio and television announcemen t~ as part of a long-range public relations plan. Objectives of the Lawyer I'ublic Relations Commitlee project. were to: I ) highlight public service programs and resources of the stale bar, f(Kusing on the public as Ihe true beneficiary of our legal system; 2) featu re real Alabama lawyers involved in their comm(mities to present ~ pOsitive messJJ;e (Ib~nl \ the legal fjrofes$ion in AIJb,lInJ, JIld 3) mJkc it easy for individual attorneys to take this message out to their communities. The key to the success of the program lies with each individual bilr member. If the video is not seen by the public, our efforts will h av~ betn (or naughLi The chalfenge now is for Alabama allomeys to use this preSeT/lalion ill each of Iheir commullilies 10 help create Ihal posllive image ... ~olle lawyer (/1 (/ time-.

FOR FURTHER INFORMATION, CONTACT COMMUNICATION S, ALABAMA STATE BAR AT (334) 269- 15 15, 1-800-354 -6154, OR comm@o{obtJr.org. _ YES. I will vQl ur\teer to usist in fjresentlng the ASB TO SERVE THE PUBLIC video to civic, school and community groufjs in my area. NAM E_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BARASSOCIATION _ _ _ _ _ _ __

JUlV 'UU' 11 '

DISCIPLINARY NOTICE

Relnst.teme.,t - Former Birmingham attorney Cecil W. Elledge, Jr. was reinstated to the practice of law by order of the supreme court. effective April 14 , 1997. lPcL No. 92-0071

repented requests for Information from the Office of Ceneral Counsel. The Disciplinary CommIssion furthe r ordered that ftllaUhews be restricted (rom maintaining a trust 2ccount, (Rule 20{a); Pel, No. 97.091

DI •• blllty

. Cadsden attorney Jim Leater Wilson was transferred to dlSllbility inactive status. effective April 15, 1997. Wilson's transfer was ordered by the Supreme Court of Alabama pur· SU/lnt to a prior order of the Disciplinal')' Board of the Alabama Stlltt B<lr.I Rule 27(<:): Pet. No. 97.03J

eBirmingham attorney Michael Alan Newsom was trallS(erred to diS/lbilit)l inl'lctive status. effective "larch 7, 1997. Newsom's transfer was ordered by the $(lPreme Court or Alab/lma pursuanllo a prior order of the Disc:iplinal)l Board of the Aillbarnll State Bar. IIhde 27(c); Pet. No. 97-021 Dlsb.rme"" - Birmingham attorney Anthony M. Falletta. III has con$ented to disbarment by order of the Alabama. Supreme Cavrt, dated April 17, 1997. His name has been stricken from the roll of attorneys licensed to prilctice law in the State of Alabama. Fal1wa'~ disbarment was a result of his haying been conylcted In the United State District Court for the Northern District of Alabama for conspiracy to commit extortion. fail · ure to file an Inconlt tax return in connection with II cash· related tranMction and tampering with a witnu5.lIh1ie 23(a)(2): Pet. No, 97-M1 - ft' obile lawyer Thomas Earle Bryant. Jr. was disbarred by order of the Supreme Court of Alabama effcctiyc March 26, 1997. Bl)'ant hilS oonsented to disoormel11 based upon his fclony conviction in the Circuit Court of f.lontgomery Covnly, Alabama for a charge of six counls of theft of property, first degree. (Rule 23; Pet. No. 97·011

Su.pen.lon. - Pelham attorney WIlliam fo'ellIC Matthews was interimly suspended by Order of the Disciplinary Commiulon or lhe Alabama State Bar, effective May 23, 1997. Matthews was SU5' ~nded pursuant to I{ule 20(a), Alabama Rules of Disciplinary Procedu re. The Office of Ceneral Counsel filed a petition pursuant to nule 20(a) based upon ft'atthews' refusal to comply with ''''JUl~

,g,,,

- F.ufaula attorney Christie Gregol)' Pappa. WM interimly suspended by Order of the Disciplinary Commission of the Alabama State Bar. effective May 20, 1997, rappasw:u suspended pursuant to Rule 20(a), Alabama Itules o( Discipllnary I'rocedure. The Office of Geneml Counsel flied a petition pursuant to Rule 20(a) based upon affidavits evidencing that Pappas had engaged in and continued to engage in a pattern o(multiple instances or unprdusional, Improper and fraudulent conduct. The l)i5t:iplinary Commission further order~d !lull Pappas be rest ricted from maintaining a trust account. (IMe 20(a): Pet. No. 97-081 - On March 27,1997, Mobile lawyer Harry S. Pond, IV was temporarily suspended from the practice of law by the Disciplinary COmmission of the Alabama Slate Bar, Based on information provided, the Disciplinary Commission concluded that Pond's continuing conduct was likely to cause immediate and serious injury 10 II client or to the public. The Alabama State Bar must bring formal charges against r ond within 28 days of the inlerim suspension.I Rule 20(41). r et. No. 97·0021 - On March 21, 1997, 1\ucaloosa lawyer Darryl Clarence lIardln was temporarily suspended from the practice of law by the Disciplinary Commiuion of the Alabama State Bar. Biased on informatiOn provided, the Disciplinary Commi!sion concluded thall-lardin's continuing conduct was likely to cause Immediate and serious injury to a client or to the public, Rule 20(a): Pel. No. 97-0031 - On April 14 , 1997, Th:iCaloosa lawyer John Archie Acker, Jr. was temporarily suspended frOm the practice of law by the Disciplinary Commiuion of the Alabama State Bar. This sus· pen~ion follow Acker's conviction of a "sedous crime" pursuant to Rule 20 o( the Ilules of Disciplinary Proctdure, (Rule 20(a): No. 97-0041 - On April 21, 1997, Uirmingh."\ffi lawyer lI uel j\1alone

Carter was tem~rarily suspended from the practice of law by the Disciplinary Commission of the Alabama State Bar, This suspension follows Ca.rler's convictions of "serious crimes" pursuant to Hule 20 of the Hules of Disciplina.ry Procedure, IRuie 20(11): No, 97-0061 -On Aprit 21, 1997. Birmingham lawyer Robert James 111I.}'t3 was temporarily $u~p(:ndtd from the practice of law by the Di~cip1inary Commission of the Alabama State Bar. This

suspension follows Hllye's convictions of "serious crimes" pur· §U1\nt to Hule 20 of the Rules of Di sciplinary Procedure. liM e 20(a): No, 97.0071 - On April 21. 1997. Birmingham lawyer Hobert IJryan noden was temporarily suspended from the practice of law by the Disciplinary Commission of the Alabama State Bar. This suspension follows I~ oden's convictions of "serious crimes" pursuilnt to Hule 20 of the Rule$ of Disciptir\lIry Procedure. Inule 20(a); No. 97·0051 - By order of the SUllreme Court of AJllbamll. Birmingham attorney David E. Ilampe. Jr. was suspended from the practice of Jaw In the Slllte of Alabama for a period of 60 days effective April 25. 1997. Hl'lmpe was fou nd gUilty of sharing legal fees with II non. lawyer in violiltion of Hule 5.4. Alabama Hules of Professional Conduct. IASB No. 94-71 1 - On May 9, 1997 the Alabama Supreme Cou rt entered an

order suspending Bllroal'll C. /'Ill11er fo r a period of 91 days effective May 9, 1997, Miller was initially 5u~ptnded by the Disciplinary Board of the Alab,Lma State Sal' on October 18, 1995. Miller appealed to the Alabama Supreme Court and the $USpHL5ion was ,,-ffirmed on September 6, 1996. An application for rehearing was ollcrrulcd on April 16, 1997. A suspension of 91 dllY~ or more requires the lawyer to petition to be reinstat· cd to practice law. lASH No. 95. 1921 Public Reprimand

- Bessemer lawyer Richard 1..a1T)' /'IlcClendon received II public reprimand witholL! !lenetal publication for having fail ed to comply with a request for information from a disciplinary authority. a violation of !lule a.l(b). AlabaLlla !lule$ of Proft~sionil i CMducL Four separate grievances were filed altllinsl McClendon with the Alabama State Bar. However. attempts by the Office of Genera! Counsel of the bar to investigale these malteu were frustrl'llcd by McClendon's failure \0 timely respond to the grievances in question. t-'cClendon pled guilty to a violation of Hule a. l (b) in each of the fOIL I' matt.ers. and received a separate reprimand for each case me. Further, t-1cClendon WIIS placed on alwo·yeilT p rob'L t ion~ry period. duro ing which time he is to fil e semi-annual reports to the Office of Ceneral Counsel concernin!! his continued evalu<Ltion and counseling by iI professional counselor. lASS Nos. 92-368. 92· 0160,93·3 17 & 93·3681 •

L-8(IO."H"" 1.\.00 sail

Or ~, rbod 101

5e>111e 1'ubIIIh"'S, P,Q

lZO·ll

r"MUST.SEE~ Ir PLENARYl

S EYON D COMPUTER BA ICS,

GOOD LAWYERING IN TH E '90"

TelccolJllllunicnlions :Iild

_.1 u ,wycr6 \'Inti Secrets GOU'U T heir Be~t ClientS Know Noted la ..... verlll\llhor Sleph~1\ '" Mcl.cun Vlrjlln eo""s"e'(. '

shard h ill insightS.

. .. \u., Weil Group Co-spon50tc:u v,

lind ASS.

Ihe 11lfCr nc I (o r L", F l ' wyers I'e( eric S, Ollum "ork. N. Y. helps YOU '","eIY dl (he prC'$e Kover nt - ond Iht' (ulure - 0II.~ ~W '''' I I Co. . I Ie "'''rnel . SpI)nSOred by LCl(15. Nelli.'l llIlU ASo.

1'" "

Alabama State Bar

120th

ANNUAL MEETING Jul y 16路 19, 1997 Mon tg mery

huUday morning's plenary speaker. Stephen W. Comiskey, .....iIl mOllvate you while discussing why you should be Ius concerned, or even unconcerned, about the public's appa rent dinatlsfnct ion with the lellal profesaion lIenerally, and more concerned, or even only con路 ce rned, about whether clients lire satisfied wit h you as their lawyer, Comiskey will explain why you can on ly be a good lawyer \0 you r own clients, and why that's what you should

FOCUS ON - , THE FUTURE '~I

A路Z, N UTS AN D BOLTS OF STATE COURT PRACTICE

~~ IeJminar (c:alutt" ,

SUpremc

ustk:e Ralph Cook lUlu onllt'r Ore J '" hnon p un L gc Kennelh In

AI~b."~

t," wyers ""'",," by tlon . A~il,

measure your own succus and satisfaction allainst. Comiskey's specific guideposts for 1l00d lawyerinll are (ound in his book, A Good lAwver, as well as some of the pri nciples and traits of Ill100d lawyer. A Good LAwyer will be available for Pllrchase at Ihe stale bar's rellislrHtion table for a reduced price of $20 each or )lOll may Pllrchase a copy directly from Comis k e~ & Hunt at $25 per copy.

PACT - A State Program for College Savings Are you WOrried about the affordobllity of II college education for your chlldren7 Tho rl$lIlg cost 01 higher educliltlon IS one 01 thO mllJor concerns facing families today According to the United Stat05 General Accoun trng Oillce, college tUition hIlS Increased 23<1 percent since 1960. In contrast, the medilln family I,come increased by only 82 porcent Accordingly, tho porlion of family In:ome required to pay college tUition nearly doobled As the cost 01 college tUition continuos to Increase at an alarming rate, families are uncertain 01 how to plan and saye to meet coIl098 e~penses . Alabama's Prepaid Alfordable College TUlton WACn Program oilers a solutIOn, PACT IS a slate j)(00 gram adminrste"ed by Slate Treasurer Lucy Baxley's ollrce. A conu&Ct for the Pfepayment of foor years of college tuitIOn and mandatory fees 1$ offered to the publIC for Alabama children In the ninth grade or youngor. PerentS, grar'lciparonts or any other sponsor may purchase a contract for a child whO IS a resident 01 the state Tho prrce of thO contract is b!l~ed on tho age of the child at Itle tlmo of purchase, wi th a chOice of three pay'ment options. Currently, the average public tui tion for one year is $2,331 , Based on this aver8ga end future Increases, PACT Will pay !'IPpfoxlmet&ly $11,900 lor a 1997 high school graduate's college tuitIOn . When you contrast thiS With the 1997 lump sum payment of S7.457 for a newborn, PACT shoold appeal 10 mosllamllie, who are looking for a good sa ....lngs plan The 1997 enrollment period Will be September I路September 30. For oddl\lonal mformatron and an application, call the PACT office at 1-800-252-7228 or !334) 242-7514

Here's a business propQ5iliol'l born Avi5 just rnemberof A1abanul SUole Bar, We'Q giYe)'OU special discoonlS at ~nicip.Jti"ll Avi5loca1ions. FOf example, ~ke 20% 0/1 OUr Avil Select Dally IlIIeS and 5" 0/1 promoIionaIllItes. Wh.Jl's mtIrf, Avi5 has some of the rnosI competitive rail'S in the industry, And ...illl the Alis Wizatd路 Sysrem. )'00'11 receive our best available rille when )'OU mention )'OUr Avi5 Worldwide Discwnl (Awn) number. A530100, But A,'is 5a1'eS you more than money. Avi5 5a_es you time, 100. fllght Ched r. oilers up.t<){he-minute Hight Information in our car remallO! at major airport Iocalions. comple1e with a computer prinl<J\ll. Enroll in Avb uprfMl" and)'Oll bypass the rental counter at many majot' aifJlOf1S. Simply head directly to the A_If UP""' area whert acompleled rental agreement will be ready lor you, During peak periods at these Iocallons, A_If Ro\'IDgllapld Return-lets you a'o'Oid lilll'$ when ~you'rea

Especialty for Alabama State Bar Members

Save SIS Off A Weekly Renta1!

you return )'OUtcaf. An Avi5represental~ wlU _you riRbt M the Of and hand )'OU a printed reo:tipIln _Duds.

So maIr.e il )'OOr business 10 take Ad'van. of ,II tile member btnefilS lha! A\'is has wa~ing 1or)'OO, Please show)'OUf Avis Member Savin85 Card or AssDcialiDII Membership IOcard al li_oI ~tal. For more inkJnna. lioI'I or reser.-ations, call Avis at: 1-300-83 1-8000, And be sure 10 ITI('ntOon your Mis Worldwide Discount (AWO) number, A530100,

AVIS

It Is a great feeling when you help someone who really needs it. Plus you are helping yourself because the feeling you get will make your day. That's the reword you get from doing pro bono work. You have the opportunity to help a family keep their home, help the elder1y obtain benefits or help straighten out family problems. With your help, they can look forward to better days. So please volunteer.

To find out more about the Alabama S1ate Bar 'vUIunteer lCl'tJ'V9fS Program. con the Alabama state Bar at (334) 269路1 515 or visit their web site 01 hltp:/Iwww.alobor.org.

Cuml,erland School of Law of Samford University Continuing Legal Education IE?all 1997 Seminar Schedule September

12 19 26

Develop me nts and T re nds in Heal th Care Law 路 Birmingha m Insurance Coverage Issues - Birmingham lawyeri ng Skills 101 - Binningham

October

8th An nual Bank ruptcy Law Seminar - Birmingham

Evidence Law: Artis by an d Advocacy in th e Courtroom featuring Thomas A . Mauet - Birmingham Elder Law: What Every Practitio ner Must Know in Giving Legal Advice - Birm ingham Medical Malpractice - Birmingham Civil ProcedurefAppellate Practice - Birmingham

24 31

November

7 14

December

11th Annual Wo rkl'rs' Com pensation Sem inar - Birmingham Litigating th e Class Action La wsuit - Birmi ngham The Art of Effective Speaking fo r Lawyers fea turing S teven D. S tark - Birmingham

Emerging Trends in Civil Liabilit y - Mobile Emerging Trends in Civil Liabili ty - Birmingham II Curre nt Issues in Employment Law ~ Birmingham 19 Scientific Evidence - Birmingham 30-31 CLE By The Ho ur - Birmingham

Brochures describing th" sp芦Hk topics 10 be addressed with a listing of the speakers for each of the semi""", will be mailed approximately six we<lks priG' to the semina r. [f for any reason you do not receive a b rochure for a p"rticul.n semiNr, write Cumberland CLE, Box 292275, 800 lakeshore Drive, Birmingham, AL 35229-2275, or caU 810-2391 or 1-800-88S-7454, Additional programs may be added to the schedule. Sorn/ood Uni"""';ty is"" EqI>Ol Opportunity instil'llti<Hl ond w. kom .. oppli.ca1ioN /or .mploym..,t and tducahonal all individual. fOg<><d1Ho 01 rate, 0010.-, oe<. handicap, ",. ",,~onal or ttMie origin.

pros""'"

from

R ECENT DECISIONS 8g Wilbur C. Silberman

Third Circuit folio ..... Ea.v-th eire"," in holding ~ dam.".. .....rung '-" "fraud judo. m.It" _ non.d!SCM,g.ltlll

CoItfn ... [)tLQ Cruz (In,.,

Cohm,.

106 .'.3d. 52, (3ro eir. Feb. 6. 1997). Landlord was hdd to hi>Jt bHn llUilty 01 ft1lud by.U$Ofl of over-clliTlling hiJ knant. 1'lK l:mdlord nioo chapter 7. Tho bankruptcy court. which was atfil1Tltd by tIM IMtrict Court. ~k1 tIlil tIw dtbtor !wi violated tho Stole law and a11owa1 Ircbit ~ 11M: total amount 01 the judgment "<15 determined to be oon4ism,'lI<obk. On appa1lo tht llIird Circuit, tilt question w.u lilt dischargeability 01 punitive damaQes. Tht court fim mit<! IIIiI \lOOt. S«tion S23(1)(2)(A). IIltI1' ;1 a confIiet imong tIw ,imlits "" to its intnpm..lion. Tho .w-rtion prmntly ruck: "(l) i dischorgt undtr ... this titl. dots not discharge an individ,,",1 dtl>to. from any debl .. . (2) for money, property, services. o. an ntension. "MWII or rrii.~nd", of 'rodil. II> the ntent obtained by

tAl I.ls. prtWlStl, i filM

ft1)r~

lion. or act,w (.. ud .... " The Ninth

Circuit Iw htld thot 1M words '0 the uttnt obtained by"jimit the uuplion \0 compensatory darnagu only ...... hile lilt f:l~nth Circuit held that tilt lan _

WI_a.

_ .--..... -'_ ..... --"- .. IIR

,,_

_0-. ..

.... '" '·9_" .....

-~" ...,_ ........-.-~

gual/e dot, not

=Iud~ pullili~

dam·

ilItU. 1M Third Circuil in lhiJ cut delmnir.td lhal il would follow the Ek>ltnlh. In so doing. it I"U5OIlfd that liability under $tat~ ~ lor ~ incurwl by f"""d. pllllitMl: as weU as compelWllOt». constitule I debt uoder lilt Bankruptcy COOe. The Third Circuit dblinguidwd the 3T1/1lysi$ of lilt Ninth CimJit. and flatly disagrHd. Jtaling that 1M Ninth CireuifJ rusoning "stnintd lilt IoIructuu of the IUtule as a ...-hoIe .•..• TM opinion concluded by holding that thl: bnguagt in qutSlion dots no! di$\inguish Kt~1 from puni. H\It da""I/e$, but ratllt. cOlltrattual debU \.Ijnt~d with fnud from debl5 for meu conlrad or failuu 10 pay. Commtnt: Note that Iht decision IoIIows Iht EleYmth Circuit. M Ihal U. s!.MuIt: refers only to"falst prrtmsu, " falw: ...".. ram\.llion, or actual fraud.' ~ thll$ punitiw damages unless C(M!nd by anoIhtT actplioo. oould be dbch>rgeable.

Second Circuit .dmonl ..... dlttrlct Joud'lla. on ,..1181 fTom unar §363(ml In .... Cum, lOS F.2d 837 {2nd Cir. Jan. 30. 1997). Th~ bankruptcy court authorized the chapter l ltruste( to stU lilt Cucci trademlloo and linnsing rigllb. Certain putia immfdiately sought I ~ pending appcalto the d.... lriel court which was dmied. The d.... triet court affirmed tilt bankruptcy court, and dtniod II 'l.i.)I pending appeal to the ,ircuit court. The district judge also denied II brief stay to aUow lilt appellants time to _k /I JI/I)' in the Second Cirruit. On 1lA't1l1, the Sttond Circuit fi.-.t mttd that for;m unslolf'/d ordtr 01 ule. its power was Hmitod to ..iltther Iht property was bought by a purchaser

.t."

in good failh. ciling Iht EltV(nlh Circuil COst of fn Tf! 1m C/lQTler (;() .. 8Z9 F.2d 1056 {l987); rt21rdless 01 the merit 01 the chaUenge. lilt IIppelblt court. in abstnct of" sUy C3f1not modi. fy or ~nt. other thin lor the lack of good f"ith by the ""rchut •. The appellate court then added lMI il i, important thai district judgts "appRcim tilt sptcial constqutncu 01 dtnyifIIIl sUy 01" bankrupky $Ik. evHI II wry britf JUy 10 pamit this coort time 10 cuu.ider whtthtr it belil'ou I JUy pending lIppr.oI is ...lIrnnttd. ...• liln this iIl!t 01 wirt fund tnnsfers. a dislrict judse d«iding u.·helher to stay I banKruptcy salt pendingappul or pending apptl~te consideration oI_h a stay. should be al,'are IhaI a closing «aming irnrTWdiately afttr " sUy is dmied ..ill subJt;mtiat1y ~mit the ~ 01 mllPllt3l. Comment: The admonition refers only 10 the di$lrici court. but it would stem thai il would ~ually awly to lht bank· ruptcy court ...-here the fim motion for ,,~is.-Jt.

.ankruplc, Jud'lla J.ck C.ddall . .nclions e~tt union $15,000 for violation of

dlseh.'1I. InJunetlon Moller oIllorveg L. AnIOid, 206 B.R. 560 (Bln1q N.D. Ala.). Tht credit union pursued dtbtor's wi~ lOr a>tlection of "

defICiency booLloot 01 SS.395..81 on m IlUtomobilt loan 0{ which oht was • 00debeor. and ...ilich was diKharged in her husband's bankruptcy. After deblor"5 "ire could not mol,", t.... ~lIt., tht crodil union rtquirtd debtor to a,gret 10 Pi)' the "difc"hougtd debe'. wIlich would ,,11ow him 10 rtjoin tho: credit union. II note was a«uttd by both. with O'I'tr lI O.ooo being paid O'I'tr the nut rIVe years. Afttr diSCO'>'tring lilt crodil union might bt

guilty 0( the discharge injunction. the debtor initi~tro a proceroing to have the matter reopened. The bankruptcy CQUrt rorst hel d that the cmiit union laHro to....,.t the r~uirements 0( §524(c) 01$ to r~rmation . that repayment wou oot voluntar)' under §524(f) 01$ it,.... mode under extreme pressure. and that under the EI.wnth Circuit opinion in In re IkmJy. 97 F.3d 1384. 1388. sanctioru may be awardw. albeit c<oution w.ould be ... frcis.d. Judge Caddell then determined that the credit union wou guilty 0( willful "disrtgard and disrell]>tCI 0( the bankruptcy laws with malicious intent: and requimi a credit 0( funds col· lected in full satislaction 01 the wile·s debt. refund 0( the balance to the debtor with 18 percent interest. refund 0( certain other pa)ments. payment o(.uomey·s fee 0($2.43125. and $15.000 punitive damages.

In-State Mediation Training IApproved for CLE credit and Alabama Center lor Dispute Resolution roSIer reg lstrat'onl Jutv 10-12 Birmir>gMm Medi.tion Proc_ ond tho Skitls 01 Confllet Resotutton. The MMli.tion Co.po •• tion ADR·FIRM 21 Hours

August 13·17 Comm.n!: Thi. W01$ an egregious case. but it should be a wake·up call to ~rzealous lenders.

Release of chapt.r 1 d.btor from guaranty of corporation Is reasonabl. equlval.nt valu. to def.at mudulent conv.yanc. claim, but Is not new val"e lor purpose of pref.... nc. if corporation is insolv.nt In re Mar/in, 206 B.R. 646 (Bkrtcy M.D. Ala. 1993). The trust •• preference action for recovery of SI05,062.49 paid within 90 days 0( a chapter II bankruptcy. The defendant insurance company contendro the debtor, Don Martin . and C&C Land Company were alt.r egos and that C&C gave new ,·alue making the alleged preference oon-avoidable. According to the facts. C&C in March and April 1980 contncled to pur· chase 50 ... idential lots from .... Ifa. and on .... pril 6. 1988 in addition to cash ga.'"\' a mortgage 01 $242.500 to Alfa. Martin executed the note as president 0( C&C. and .Iso ga.IIt ~ person· al guaranty. Mler various payments and extensioru. on N~mber 3. 1989. Martin Realty and Construction Company paid $105.062.49 to ....11. in full payment 01 the balance. The trustee sued to r"""""r this payment as a fraudulent con· W)-·~nce 01$ M.rtin.!hi: debtor. received no consideration. the value having gone to C&C. The court rejected thi' contention. detennining lhat debtor was ~ contingent cr~di tor brolus. 0( the guaranty, and as ,uch the .. was ...asonable equivalent v~tue by the extinguishment 0( the guaranty. Th. trw;t.,., also contended that the paym. nt W01$ prefe .. ntial. .... Ifa defended on the ground that C&C was the alter ego of the debtor. and would be paid in full from the ban kruptcy pr<.><:«d. 01$ a ..cumi creditor. The court denied the alt.r ego thoory on the facts. It also held against AU. on the argument that Don Martin indirectly received a benefit 01$ the sole stock. hold.r of C&C. stat ing that as C&C W01$ insolvent. there was nO monetary l>ener.1. Lastly. il ..jected affirmative defenses under §54 7Ic)(l) and (2) holding th. .. was no substantially contemporaneous exchange for new value. as the allegro new value did not go to the debtor.

m.d.

Commut: 1 haY<: no opinion as to why. 1993 taU i. now being reported. This wa.\ .. portro in the April 9, 1997 a<!vanet sheet of West. The cue W01$ affirmed on appeal to the Eleventh Circuit. •

Monl~ry

Dtvooce Ind Chitd Custody Medlltlon Tr.ining. Schoot lor Disput. R.-solution, Ine. {4041373-4457 40 Hour. September 4-6 B"mlr>gham Medilllon Process I nd the Skill s of C<onfliet R.-solution, The MMllatlon Coopo. ltion ADA·FtAM 21 Hours

Septemt>er 24-2"6 Huntsville MMlI.!ionIC<onftict Manlgem..,t T•• lnlng. e.me. Business 8u.eau. C<ommunity MMlll tion Cent ... (2051539-2118 20 Hours October 23-25

MO<1lgo<"r"1&1"\1 Medi.tion PrOCft, "nd the Skitl$ 01 Confliet Resotution. The MMli.lion C<o.po •• tlon ADR·FIRM 21 HolMS

November 12·16 Monl~ry

Dlvoree and Child CUltody Mediotion T•• 'n ing, Schoot 10. Disput. Aosolution. Inc. 373-4457 40 Hours

Novembe,2().22 B"mingham MMI'ation P.ocn, and the Skitl. <>1 Con"let Resotution. The MMliation C<o'pouti(ln (BOO) ADR·flRM 21 Hoors

To da'e. •'1 """""'" ""'"' _ opprowd ",. ,he Gen, .. Pluse _ the Int""'" MedIal", SIBnd8rds ...... ~ ... 10 rno~ s ... coo'se nours ... ,0(1 """ . .".tv the for odIJi_ traonong. it>CIuOong coo, .... ., A""IB. Gr>orll'l. coIllIlo AIobomo Ceol... for ~ (3341 269-0409

"-If.,iOn

'''11''1'''_ , _ " o.sw.. ........."'" .,

OU1-ol-S'.,.

'UJ~ If)'riv;e~

Unikd SAm of Amtric:lo tw produmI tht mos.t m\~ systems of go...emrnenl and rconomia in the world. Our democratic ..... ues an: the ITIOdd fQr frm!om.loYing peoplt everywhen:, Ou. dtmocl'lltic fonn of I/IM'm".,.,nt tw losttred the dev\>lopmmt 01 opitalism. 11 is the J\3ft. nmhip belwHn capitalism and democrat}' that Iw

~rred the deveHlpment and production of (00.... mer goods thai havt made OUr liws both rkhtr and I1'IC>fe fulfilling.

A W.lk Throueh Time ConMuner goods wm not aM~ 9:'l .-lily <Mil· ;,bit in wr 0lUfltr)', In thr lilt 19th ctntury. thr United Slat.,. ",,"oomy "lIS undergoing ~ lion from an agrarian to an industrial sacitt)'. The", ~re no .......·manufxturtd oonwmer goods to spulc d. The average ~ng-clw ciliun.1ltWIy urtwliztd. coold Tartly itt accw to ewn small amounlJ 01 rndiL n.. flNllcial S)'llmI in existtra;oj II-. timr did not fill this rwcd. &nics, it tNt limt in our ru...",y. ,,~ basicilIly .... , ... \e,ciaj lendirc ,nstiMions. Wt ~ such a wide rangt ri d10ica IOdiy fw the obtaining d emlit (t.Q., banks, thrifU. crtdit unions, credit cards. retailtr$, Il'IOI'tga$ banks. and fir'\aln «JIllI)iU1ies) that it is

1h@1l:

tJ1le;

I'wd to ilNgh:liIt without c:mJit SOlh'ttS. HowevtT. ~ of wnsumtr atdit Mld cmIit opportooitia Wgdydid not ai$t in the 19th o=lury. Banksalont cmIro1led~. and tNt norm. !hot lOr tht ~ prnon no nlOIleY was lllailabk. AnoIhtr copiWSOUTOe was clurIy r.redtd and c:ame in lhe 101m 0( the con·

sumer fi~ <XlJllpa/1)'. Tho origins d the fi~ indUSl'Y started "i!h the jewelry bu.Ww:a. F~ ~ was a jewtltr who btr.'In otrmng Ul\$tC\Jrtd personal loans to r.omge inoomt consumm in ordtr to JUppOrt lhe pu~ rJ his goods. This is ' - ' 11ouKhoId._ ~

start<d in ]878, btcontirt Iht first 01 nwoy ~ that hM: oIqlprd in to $OM lhe tndil n«di of Amtrica's oonsumtr$. (CIcIxJI FuminglLoaJI lAnding: ~ Market FuntkrJ Corzsum,>r Lmding IrrdusI'1I. 1'ui'<M Ii: Com;lany. Aprill99S.) There were u.1y legal impediments, indueling usury Laws which did not permit lending at rat'" ~ weft profitablo rr>O\litl to sup(lOI1 ti~ $lilts. In the !alt. 19th CtnI:ury..... stwb weft~. ~ ~ in!msI. ralts. The lad! <i ~rrWt COR!iUITII'I' crej~ and the problems as.socWt<I with the undngn.uId rnukd prorI1lIt<I I study in 1907 by the Russell Sag. l'(IUrIdoti(ln. ~ a result <i the study. there was widtspread adotltion ri tht Unilom! Small Loan law drafled in 1916. (1'«hnk:aJ Stud"" of tIM!

1972. p. 388.) Th~ law established guidtli""" for the prOVisions of small cash loans. It mandated an all·inclusM fee to pre-oenl hidden ehargts.1t abo raised the usury ceilings to make small lending pro/it.lble. setting the ceiling for lmIlllo.ms ~t 3.5 percent per month. By 1922. 24 states had /IIJoptW rtlorm \egi1>lation ""t_ temed alter the Uniform Small loon law. Today'. Alabama Small l.can Act rate ~ 3 percrnt per month <J(l amounts not in ex«:Sli of $200. and 2 percmt per month on the next $550. !See § 5-13-15 Code ofAJabamo (1975. as amende<I).) The Uniform Small Loan law effectMIy legitimized the conloUme. finance indUSlI)'. allo7.o.ing it the opportuni\)' to grow and prosper. Until the 1930$. finance ;.ompanies were ....,nlially the only consume. im<lf ... in the Uniled Statts. The first large com· mercial bank "ith a ;.ommitted consume. loan p.ogram was Nalional Cil}> ll.mk of New York in 1928. the p~ to CitiCorp. Commerciaillank$ did not ...,Ier the consume. loan market to a ,igniflColnt <legT« until the bte 1930s. Prior \0 that time. some banks had an experti5e in discounting and taking auignment of COOlWllle1" e.I'dit contracts. (lr,e example 0/ such • bank active in Loui'iam and the ...... th ,.... the Bunke ll.mk 01 Louisiana. Thus. these banks were indirectly in the ooruumer

Nalionn/ OitmnisWn on Consumer F'innnai.

fi~

business. During the Creat Dep.es.sion. finance companies enabled their customers to purchase hard good.<. a;>pIiancts and can. "toile the banks "i!hdrew from the market Throughout its history. the <:O<WJmer finance industry has been responsible for most 0/ the inn<lYatioos in consume. finance. including credit cards. automobile financing, and home tquily lill('J; of c.",m. World WarU caUKd great interruption in consumer finance in the Uniled Statts. By the 1950>. howevE •. demand for consumer credit re~ and oonsumer finance lerode ... played that decade's prominent role in proo.iding credit \0 blue roIlar. lower and middle income worker$. Beginning in the 1950s. Americl """ the finance rompanies affiliated "ith the aut<'lml:>bile manufacture .... .uch as Ford Moto. Credit. CMAC and Ch~ler Financial. begin to take off. Whal 101101'0'1'<1 "lIS an unprecedmtl'd growth in the sale 01 automobiles 10 the "",rag. roosomer. Similarly. as a I"fSUll 0/ the programs originated by liousehokl. Bmeficial and othe .... durable oonsume. goods became "idely available. The typeS 01 loan products offeml by COrI$Umer fir.ance com· panies illdude 5eCUmI and ~red personalioans. the financing 0/ small ticket items at rebil stores to the financing 01 the purchase 01 automobiles. home equity lines 01 credit. rt.$i. dential first mortgages and credit CMds. It is undeniable that the a\",i\ability 0/ roosomer emlit has not only suppOrted. but driven. the """" production 01 oonsumeT goods. which has in tum driven the American KOIIOIIW \0 ever in<:rea5ing height...

A Highly Regul.lod Indu.try Tho consume. finance industry ~ one of the most heavily regulated industries in the United States 0/ America today. Since most of us. from lime to time, borrow """"'Y or mak~ purchases on an installment basis, the gooRmment rightfully .egulates this industry. The finance industl)' is ~t to a mul· titude 01 federal statutes including: the Foo..ral Truth·ln· Lending Act. the Consume. Ltasing Act. the Fair Housing Act.

the Fair Credit Reporting Act. the Equal Credit Opportunity Act, the !'air Credit Billing Act. the Real F..state Settlement I"n:«dures Act. the flomt Mortgage l)isclosu", Act, and the F'air Debt Collection PYactkes Act, to name just a few 0/ the fro_ erallaws. There a", COWItl... federal .-.,gulations .., ..... l1. includ· ing a .'IL'l\ array 0/ trade ..,guIation rules promulgated by the Federal Tra<leCommission and the f ederal ReseM Board. In addition. evel)' state in the United States regulates the con· loUmer finance industl)'. Thus. oonsumer finance companies which operate in ~ than one $lale art lktrl$ed and examined by each $late and must comply "i(h a differ<'1lt .wi 0/ rules in """'Y .late in which they operate. 'I"he:s. rules commonly include limitations on rates of inte.est. malu,;1}> and typeS 01 loan. In addition. the stales frtquently regulate the method 01 rale calculation. rebate requirements. loan size limit.~· nimce and advantag< testing. maximum rates on credit insur~. and Jl"laTldatofy disclosures. Further. consumer finance companies are .ubject to the i"lII'ral (n",rlay 0/ federal law and regulatioru including anti · trust. equal.mployrnent OppOrtunity. environmental laws and so forth. The large finance com""nies that go 10 the capi. tal markeu for money must also be concerned with the rating 0/ their debt $('Curnie$. Awlrdingly. not only are all 1."..1. of ~mment in...,l~ in oversight. but ma.ket forces provide some 01 the best oversight in connection with coruume. finance lending. ~areover 1.200 licensed consumer finance companies opnating in Alabama today. ompioying thousands 0/ Alabamians. These licensees' gross outstanding in 19!i6totai more than $10.3 billion. The scrutiny that licensees undergo in our state is formidable. Only a handful 0/ industries COffiI.' anywhere close to h;ning the ~ level 0/ ove ... ight Ttl. Cu.toll'lflr •••• Unlike commercial banks. consumer finance companies tend to $I'M 11"O)re marginal <:On5Umer$. The QJStomer base t..oo. to be older than the gtneral population for all product Ii""". The median rustomt. for almost """'Y product IiIII' offered by finance companies ~ closer \0 40 and ~ "",II aI»ie 40 for real estate-",latl'd borrowing. The median age in the United States 0/ America in 1995 "'..., 34 years. {SU""'l' results und<rtak~n by l'urash ... Company) The custome. base 01 finance companies tends \0 include more blue roIhr workers and m ired people. i. •.• ~ not gonerally ""rved well by commercial banks. The customer 01 con-

Richard Wilson & Associates Registered Professiona l Cou rt Reporters 804 S. l'efry St,,,,,, Mon!Somery .... Iab'llm 16104

264-6433

6naroce c:ornpanies It'Ilds to ~ .. lower hou5dloId incomt than the median nalioNoI hooJOdIoId incomt IeY!:I d $33.290. The median family ir.:omt d finaroce com~ OOrrowe!1lor homt equity loans in 1993 was $35.000 ...m.. $50.000 for banlc and thrift rustomtr kMI. (Un;"'!1ity d Michigin. Survey d ~ Nowrmn- 1993 to MaId!. 1m) AIxording to f"edmI RaeM Bo;ord dIU ClJIl1lIltd in a 1992 SUMjl.1'in<Intt ~. cwtoo>rr ba$t "- <I highrr perantage d non-whil. and Ililpanic homfoo,.".rs-22 perantlor fi~ CIOIT"IJ*Iies vtnU!I 5 ptl'l:tflt ill !:ranks and tlrils. ~ avaiLobie fn:m the f"tcIeraI ReseM SUMjl ~ that 000SUI"IltT Iinana: ~ bon'owm tend to ~

sumtf

Joo,.,.r inroma. Thry 1m Ies5 educalld,

and include I higher perantage 01 non.,...hilt borro....e!1. are Itss likely to 0I<"Tl a homt.1es5 li~1y to "'- a chtcking ICaIWIt n "'- I slightly hiaI>er ratio 01 dd!t ~ts to incomt borrowm. Q:rUinIy. the finana COOilpaol}l cuslo!ntrI ~ Ies5 sophisticated than tilt b.mIc CUSIomtr ,., tilt ""'ngt. Thry tend to haw more olthtirfinanci.l.l wets in

than""'"

retimnml ~ ard cash..alut d life insuraIn.iw in stocks. lftllual turds aod bondi, mil about tilt _ .t>art in lJ"at\gc(ion acwunts, COs nl sa-.ings bonds n olhtr ~ furKb. Ho.... ev.r. the important point that mUJI not be owrlool<td is that if only bank 1000RJ Wfcrtc :wailable to Ameriuon ronsumt!1. tho credit n«<b d ()Ur lWion would bt vutly under-Krwd. "ThoK customers .... oo are credil im!"-ired btau ... lhoy ha....: low income. no credit histol)'. poor cr.dit hislol)', or have madelifeslyle cooices thai limiltheir abilily to iel b.o.nk 1000RJ woold haw .. WIY difficuil limo: ITIIkinIl pun::t...... on emiL Custcwmrs wIth comple. financial situations. SIKh U Hlf~mp~ people. would not find it tlsy to borrow al comml'rci.1 bank$. And. there are peoplt .... ho are simply inlimidated and .... ho do not feel Wi:lcorned by banks..

The .u.I..... A_Illy

TypioUy. it is easier n quicktr to Ild <I klan ill a firwla corrop¥I)' Ilwl at a bank. Finaroce ~ oomtIimH charge a

When you need expert valuation or litigation support, call the specialist. Ctniflfd F•• OId Eumlf>l1 l.oIph Suo.".1tIbd, CPA. IIo<dr>Qod a QI((f

101I>IIlnC_-..,.s.,dotapm ......... lJi cI!foi'kI" hIIp. n:I mfo. !Mod lnllylillhol jGlr car. ""'""'

that we as Amrricaru surdy ttC(IfIniu ;as bt-ing tilt hallmark 01 capitalism.

-~ for .,..,.1I.)j'Oin, ~ "" .......

Iifd on him fOr~ vatualloni, fo.

ttruIc &malo' i".. Invesllp'M:or;· tIlWtlln:ll (<M and <lIn*IaI """"'I. n:I~and..uwcl!p.rti. AI In .... """""l~found hlshdp In....... i n _ d.. ~ lit ""'"..,... /00.

fat ~ frtt """"I,.IIM. Ral lJh Summerford,

I --__ en:, _ ePA

~rn..

_Jriot~CJ\Io._

CoII _

~--

higher price for loins than 00r0IcJ....-b.I wtainly not~"lI)IS. It is unqt>l$lionabIe that firw>a cnmponies lib on mon: risIu.. offer loans tNt rtQUirt mon: inttr.JCIion with the Ix>n"ower. i!nd provill< mort Hrviu and flexibHity than commerciallmders. The tradoe-offbetwten pritt: on the ..... 1wId n ~ aod flexibility on tilt othrr is.,..,. 01 tilt ~ioling r.:tors between tilt I>W ~ ollmclm. The cosI.! to rlfWlO! CIOIT"IJ*IIt$ 01 the ~i\ioNl ri>b they ~ and ri proyiding the serviu i!nd fledbility tNt thty oIftr. often account for tilt price difl"tr· mea. Lending to ertdit ilTlJlllirtd and Joo,.,.r ino:me individo.ods rtqUiru mon: intmction by the ImcItr with the bomJw. tf. "CharKUr" 01 the bom:Jwtr is a critical Iactof .n the li~lihood 01 f"t1li)'ITItOI. n mmt be rtlled upon ""'" mort hr.av;1y in tilt ~dfinancial resources available 10 middle and higher i~ born!wm with)\n:wlg ertdit historia. It is. bet that Iowrr irv;omo ~ Irt mon: li~1y 10 skip ~ frtqutntIy...vor default. This typr ollmding rtQUim I speciII opc11iK and a oommitmo:nt to .1ouoIi1.ed dultibution .,...tern. The fixed cost 01 making snull loans u a Ixtor tNI abo ~ not lit Ignored. It tIka tilt _ amount d or mon: dJoI'I 10 ~ and sen-itt • JrNIl "- 01 than allr&< one.. Fundi'1l cosI.! lOr tilt fitWlO! CQmpafI}I 11M traWtioNJly betn higher 1'1 well. ThmfOrt. intertSl rates must ~r ttw. higher oost.s 01 fUnding and 01 Hrvicing the Iolns 1'1 "'Til 1'1 COWI"irqj the hiaI>er risIu.. while ~ kftping in mind that tilt (llJrJlOse for entering bo.JI.iness is .. mum on equity. i~ making • proIit.l'n:Ifil is not a dirty word, aod.,..,.

CIIII todllY

205-716-7000

When yOU put all of thislogelher. lholending ri,ks. Ihe C()$I of Qpital, the distribution s)'Stem lI«H$<I1Y for the operalion of cOIl$umtr finance companies. the burden d regubtOtY ~rsighl .•nd lho mIIrket owrsigill. il is eu~ 10 understand why consumrr finance companies often musl charge rales in txc ..s of thO$e 01 commercial banks in onkr to milk. an acceptabl. level 01 profit. W....n OM siudies the rdatiomhip between the Amtrian economy and the COIl$umrr. it ............ s usier 10 understand tho valuable Hr· viet ~rformed by consume. finance

C(lmpani •• , and Ih. role lhallh."

50''''''

in our economy.

Th. Human R• • lity There;ore thooe in Alabama and elwwholll ",tJO see the finance company lender as the Shylock in Shakespeare'. ~!lofHmia. The)' painl all companies that firw« r~les or ~ CQlUumer loans ",ith the same brushwhether a multi·billion dQllar aut<.>mobilt finarn company, a major retailer in the markd. a k>cal finance CQrIlIWl)', or a pawn shop. check<aShing OU~d. or a renHo'<:AA'Il cente •. Such g.-:n· eralizations are g.-:nerally misguided. and if allowed to ~m our actions. would result in a devastating blow to the ecooon-.. iQ 01 our .tat., if such vkw$ prevail. Pore,',,1")' .101")' that a consumer ""'-"ocIIt. relales oooceming the unlairnes.s, immorality or unlov.iuJ conduct 01 a finance CQrIlIWl)' tmployee. there are tqually compelling stories that lenders can relatt aIx>ot how a C(l(\$umer uofairly. imtnOl<llly and illqpdly enlered into a C<JruI.lffi<1" crediltraJl.$llction "'ith the specific inttnt to defraud tht lende. or credit retaile •. The bankruptey reporters alll full 01 cases dealing "'ith consumer fraud. Credit insurance companies too frequently Ili'l' claims (lilly to fir<l that prMXisting conditiom ",.. re not truthfully dis· dO>td. And what 01 tho pe ....... ;.... standard which -= to have become the nonn toot rontra.ctual amounts and due dates 01 payment alll awarently (lIl1y"targets'" and "goats". and not binding obligations? The f""" i~ 01 obnoxi<.>u> and HceJ. ....... lendo. behor.ior make lor great anecdotes and ......., better lawsuiu. However. ~ are still .tatistical anomaties. There have a~ bttn. and always ",m be. bOO actQfS in .....1")' w.>Ik oIlif•. We have politicians who wmetilllf:S abU';e the public \rust. We have J.n..yers who .omdi""", stealthoir dimts' money. However, 10 ""int an politicians as corrupt and an attor· neys as thieves would be not (lilly untrue. but tragic. Alab<lma .... ffers from chronic illiteracy and PQ\-.. rty. These cQOditiQnS do acrount for the many low· paying jQb$ loot a/xlund in QUr .tat• . Low·inc;orne earners a<:c<)Unt f<;.r a large percrnta,ge 01 finance company cmt""", ... H<"IWeV<r. thi. Kg· menl 01 the tcOJ1QIt1y is entitted ~ law 10 credit. Only ut.opian social planners would deny credit to I""""r and middle income COOSurl1ero, To Ia)' the hil;toricaJ factor of illiter~ and powrty at the doorstep of the consumer finance indmtry il; patently absurd. To $1ly that crooit iTI5IJt"aTlCes that are >old in connection with consurne, credit tJ"aTllactions are a woste 01 mont)' and areper s.t fraudulenltransa.ctions. only lhows the failure of under· ~ing 01 !.hose who would ""'-"ocIIte such a po6ition. The fact 01 the malter is that credit insurara is a '-l'luable product to ,...ist thox who borrow "'ith the intent to repay their debts, bul are set back by disability. unemployment and ..... n death. The fact is that lower irocome. blue collar wor1<ers are not ofttn 5Qlicited ~ life insurance agents to buy 5landard lenll or wllOlt life pOlicies, The best availability 01 such products for these ron· SUl"Ill'TS il; often found at the finance company or credit retailer. n.. premium (lIl 5UCh i!l5l,ll"M'oCt:5 il; not pure profit There il; a real risk which is iTI5IJred. and irnurance claims alll paid each and .....1")' day on beooll 01 customers who have CO'>'tred Iwes. There are more consumer finance transactions ent.red into in the Uniled States 01 America 00 a daily basis than aTI)' other

I);le 01 bi!attral transaclion. It is

not unreasonable to expect that there "'ill be a large number 01 abuses, even occurring daily. lI""""",r, for the hundreds 01 millions 01 traJl.$llctions that ocrur each jI<'M, the percentage 01 (".O(\$umer credit transactions that are C()n5Ummatro to the coruumer'. $1ltWaction. and in accordance ",ith law and regulation, is extremely high.

Conclus ion Do "''' indict an indmtl")' because of a few practices thai OOme deem unworthy? ",'hilt 001 adYoc.ating for a pulllly frre mafl<et, 'anything goes" approach 10 CDruumer finance. I hope lhat we are long past the point in this rountry thai Big Brother tell. m woot lifestyle decil;ions to makt. Regulation is the art 01 drawing a fine line, Regulation must be carefully thrught through. Poor and 0'>"e1"1y restrictiw Lw.oo and regulation can shut dawn the avaiiabilil» 01 credil I do not think that a!l)'CIIlt 'MlUld argue lor that. although some seem to think that they """"" ",+>at is best for the rest 01 us. On lhe other hand. rea>ooabte r",trictions that .1iI1 enable those in the CDruurl1er finar.ce induslry to make a profit do serve the legit; · mate interest of all citizens. The ronsurner industry in the United States and in tho State 01 Alab<lma advocates reasonable legal r ..trictioru; and regulatioru;.lt i• the OOTISIlmer finance industry in thi. state that led the push for refonn in 1995 and 1996. Because 01. hostile legal cl;maw. consumer finance Wa5 in danger 01 drying up in Alabama, and those in tho indmtry recognized and responded to this danger. Yes. there il;. profit moIiw . and COIISUI1>fr finance il; an industl")', not a public .."ie<. H""""",r. ron· .... mer finance is the most impOrtant fuel in drilling the W)TIQI11ic succw of this counll")' and this Stilt. To chara.cterize it as a "poyer' I» industry" is .. misch/lra.cttriza· lion 01 historical proportion.

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lor IN'll" AlWIN mi\knts. Unlortunately. tilt growth of !how tiving in l'O''f:rty is nurtured by iUl ;l1odu$uy tNt continually develops new ~ to tighltn its h.r)Id on tilt... AWwnilins.. AIabuni's pOWrty indllSlry is comprised of _no! diff• ....,t industritl-«ll\Sumtf finance COIllp.Jnies. pawn shops. check c.uhing ooUets, renl· lo-own cWlers. and dfbit iruu",nce COOlp.Jnits. Allbioma proYiliu II ~t ha""n for this indllSlry due to oor I~k of regulation and oor neglect of publ ic education. In ~batna. one in six adults are functionally imltrale.' Ont in every three ~ults do not have. high I<:hool education or C.t::.D. certificate.' During the 1993,94 ",hool ft'ar. otiKr ,tatr, $ptnl an a""ragc of $5.767 pt. itudenl on tducalion.' Allbioma. ~ •. $ptnt only $01.037 ptr !tu· IItnt, AIabuni nnks 46th oot of 50 sUles in IIolllrs SIltnt pt. child on tducation.' In addition to our hiah illilenq ",I., ~ hu some oflh< ,,'Uk. ts! tonsumt. prot«l.ion laws in tho w lirt counlry, ~iaIly in tho a_ of COIlSUmtr filWl«. for ~pIe, mo&t &Ules haw Ilimil on tho intertsl r.ltt tNt can be charged on COI1SWTIH I~ In A\ab;oITli, on loaN 0IIt, $2 .000. lhort is roo numtricallimit on tilt inteml nit charged. UktwiM, lhert ;s""ry linle rttulalion on ~ shops. rtnl,to. own unttrs and check.ashing ootid". since thei , t",ru.actions art not conlidtrtd loam. Pawn shops are a ll",,~ 10 d..arjJf. ~ annual ;ntrrtOl ntt of 300 perc~nt on their tranw:tions. The dl"tcti""lntertst rale on II t)'l!ital renlelo-own traruaet ion can be '" high", 600 10 700 percent.

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Further. molt ltat£t; ha'Jll a strtlflg decel'ti'Jll trade practice.o; act . The.. acts often prohibit unlair practices of the l'O'"trty industry. In Alabama. many finance companies and all insurance compani •• art exempt lrom our lkcepti'Jll Trade Practice. Act. Our onl\' regulation> dealing with consumer finance are lound in the Mini·Code. The Mini·Code is called "M ini ·Code" because it started out as a very stringent set of regulatiOn> and was gradually watered by tf,., finance and banking lobby. Thus, the re.o;ull was. "Mini-Code". The Mini·Code is rea lly mini· regulation. As .taled abo'JIl. Alabama's uneducated population coupled with its lack of rtgulalion make it a natural choice for the plM'rty industry. Below is a discu.>Sion 01 var;QUS ways the Alabama """"rty industry wreak. havoc Qn il> victims.

"'""'In

Consumer Finance Industry ,"1any finance companies target Alabamians ""ho a"" unable to rteei"" a loan lrom tradltionallending SQUrc"". The finance companies make loan> to the.. coosumers at much higher interest rates than traditional banks. Marry times there are needleu and usele:s.s charges placed on the loons. ~1Q$t con · sumers are not aware of these char~.. Other time,. con_ sume" names are lorged to loan documenl>.' One con>um.. alleged her name was lorged to a mortgage and her home was foreclosW on and sold.' These predatory lending practices cannot be justified. ApparnlUy. some finance compani"" attempt to justify SOme of these practices by arguing that they are will· ing to make loans to people who normally could not rteeM credit. Ilow""er. the higher inte,...,t rate more than coml"'n~ttS lor any extra rilk. The extra risk lhould not be rtn. ded in add 00 I~. that are uselu. to coosumers. A. InlUTan« Packing There are 'o'arious types 01 insurana that prottGt ~ronce com· panies from lO$s, credit lile. credit disability. irwolunta'1' unem· ploymenl insu""",,,. rollate.,,1 protection insu"""",, non·filing insurance. and force·pla«<! insu."na. All pfO'.'ide major benef'l> to the finance company. but very lillk benefit to the roru;umer. ~ premiu .... lor this insur_ ance are financed at the pOint 01 salt. Of course. the consumer pays the premium plus intem! to the finance =Pi'OYFinan,e companies have a motive to place insurance on all loans. The actual loan is nothing mort than a lo:s.s leader lor ancillary insurarn:e products.' The insurance premium charged increases the amount financed. Which increases the inte,....I ilIld profit 10 the compa"l'. Also. the finance company or its employee.o; recei"" a commission lrom the sale of lOme 01 the.. insurance products. MO.l <i Ihe time. the .. Ie oI tf,., insurance product is through one of the finance compa"l"s subsidiaries or sister corporations. which adds to the profit. Alabama law al1o....s the finance compani .. to ..II insurance through their .ubsidiaries. if the relationship between the companies is di.d=d somewhere in the document {usually the fine print). Alabama all,-""" some 01 tf,., lowest lo:s.s ratio. in the country on these producl>. This means that the in.ur· ance companies.,... paying out very little in claims and a,... keeping mQ$t of the p,...mium dollar as profit. Credit lif. insurance i. One lonn 01 credit insuranu. It is designed to pay 011 the loan balance in the went of the con-

SUInt,'s d..,th. Alabama all,-""" nearly the highe.o;t credit insur_ ance ral"" in the entire country. Credil lile insurance is the most C<).';tly Iii. insurance sold in Alabama. The premium on this insurance il pure prof,t.' MilIlY CQIlsumers are told by finance companies that they art required to purchase credit lile insurance in order to receive the loon.' An ex·employee of one finance company doing bu,ine:s.s in Alabama stat.. that tf,., company trains its tmplo;:t'es to requirt credit life insur_ ance as a condition to making th.loan. ~ An ex-employee of another finance company doing business in Alabama states that lhe company has a credit life l"'netration rate 01 90 l"'rcen\. This ~ns 90 l"'rcent 01 its loans have credillife insur. ilIlet: on them'" H""..",·tr, it claims it does not ,"qui .. credit Iii. insurance. Of course, it is illegal to require cred it life insurance as a con· dition to making the 1000n. u In Lambert ~. Bill Heard CIu!uroIet Co_.~ the plaintiffs alleged that the car ~Ie.o;man told them that in order to obtain financing through Mercury Finance. credit lif. and crtdit disability insurance mu>1 be purchased. The trial court granted .ummary judgment lor the del.ndant based on the statute of limitations. stating that the documents the plain· tifls signed d..,rly contradicts whal they "'"ere told. ~ Alabama Court <i Civil Awea\, "".. rsed and ,...mar.:led based on Hicks v. Globe Lif. & Jlcciiknl 1m. Co.. ~ holding that the plaintiff, have a right to trust "'00 they deal with and are not l"I'quired to investigate the truthlul""", of ......'1' statement made to them. In Hides. JlIStice Shores stated in her COncurring opinion, "It is unrealistic to cooclude that a layman. even one with a colle~ education. such as Mrs. Hicks. could understand an iruuranre policy il she read it."~ Mall\' JI"OI'I. who deal with the finance companie. are unable to C(lmprehend the documents they sign.M~refor~. their trust in the people they d..,1 with 1..,\IIlS them wide open lor .bu~. In a rea-nt similar ca5t. Fisher v. JMIC Ufe 1m. 0;_," plain· tiff. "'00 had a mast ...s degru and laught school, purchased a used c.... Sf,., alleged that .he was told by the ..Iuman that credit lif~ insurance was rt<tuired in order to purchase the car. When she purchasedlhe car.• he did not ,ead the ... Ie< contract which clearly s........"i!d that the credit insurance was Optional. The court of civil appeal, reversed summary judgment stating that il plainliff presents .ubstantial ""ide"'" that ddendant lraudulmtly represented a material lact. "",n il the representation conflicts with the wrillen ltnns of a contract, plaintiffs

C AS E R IC HT , INC. MU>[<;AL....,CA~

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fr:\ud claim survives a motion (or 5ummllry judgment.

he w.u ~l1i n g would not pay any benefits

However, the court of civil app(:als In G(lmer /J. iMfC Life Ills. Co" II and the Alabama Supreme Court in Robinson /J. iMIC Ufe Ills. Co.,!' Tecently held that such an analysis doe:~ not apply to a suppression claim. In thesc casu, plaintiff claimed that defendant suppressed the fact that they were purchasing credit life insurance MIl though the t10cumentJ plaintiffs signed clearly showed they were purchasing the insurance. Plaintiffs could read and write. The courts held that lhe fraudulent suppression claim was due to go out on summary judgment because there was no suppreuion. The information was disclosed in I\. the documents. .~ The amount of credit life placed on loans in Alabama has been shown to be ucusive. In McCullar v. Uniw.rsal Underwrilers Life Insurullce Co.•• the plaintiff broulthl a fraud aclion based on the slIte of an excessive amount or credit life Insur· ilnce lissoclllted wilh an automobile purchase. The premium for Ihe credit life sold to the plaintiff was based on the total ilmount of Ihe plaintiffs p{\~ment 5 over time. I'laintiff alleged fraud based Oil the credit life insurance premiums being calculated em lhe total of the payments. $20.742. instead of calculating it based on the amount financed, $15, 108.54. Plaintiff argued that the most the insurer would ever pay on a claim was Ius than the total of the payments. The Alabaml"l Supreme Courl stated that charging for credillife insurance based on tht total of the paymentJ Wa5 wrong!' This practice of innating the amount of coverage and thereby, the premium, increases the profit for the finance and insurance compan ~. while causing the consumer to be deeper in debt. f.tosl of the time, there are health Questions that are required to be all5Wered before the credit life insurance poliCY can be issued. Some finance companies realize that if the questions are answered in a fashion showing the consumer is in bad health. the insurance wi11 not issue. Therefore. some don't ilsk Ihe health questions 50 that the poliey will issue. This practice is known a5 "clean sheeting". Later, when a claim is made. the insurllnce compnny can use the bad health of lhe consumer as growlds to deny Ihe claim.lit Mmer v. Dobbs Nobile IkIY, hlC" fl credit life insurance was sold to the insured during the JIl le and financi ng of a used car. The car s.llcslllan told the Insured thai withoullhe insur· ance. he would be unable to gel the 101ln. During the negolill' lions, the insured informed the snlesman that he did not wanl the insurance and lhat he was very 111. The salesman Indicated thal lhe Insur(lnce would be valid anyway and did not anSwer the health questions properly. Four months Iilter, Miller died of lung cancer. Aclaim against the credit life polky W3S denied due to f.1i11er's poor heallh condItion when he pur· chased the policy." The Alilbama Supreme Court held that the fraud clllim died with the insured. and that breach of contract and blId faith claims were a jury question.1I In liIlioll Sec. Life hIS. Co. v. Crocker,· the plaintiff brought II fraud action, based on the defendant's failure to diKlose material information. She complained that the defendant knew of her husband's heart condition and that the inSurance

Alabama Supreme Court held that whether an in~u ra nce agent has II duty to disclose the conditions of payment fo r the credit IUe policy was a question (or the jury. Another form of credit insurance, which has been required as II condilion to making a loan. is credit diSilbil ily or credit accident insurance. This insurance is designed to make the payments of the consumer if he becomu disabled or is In an accident. ~tany consumers don't even know they have this insurance. Other$ have made claims on such insurance that have nt\lfr betn paid." Aformer employee of one finance company doing buslnus in Alabama stated thai she was trained not to remind consumers thEYhlld this insurance when they came into the office to mllke a payment and looked disabled."" The most common basis used to deny ~ claims is Ihatlhe consumer waJ disabled at Ihe time he took out the poticy. However. many timn no Questions are asked regarding whether or not the consumer is disabled at the thoe th(l loan i$ mnde. This. agai n, is clean sheetin!!. In Wiley /1. Gelll!rC11 Nolor.~ Ac('X7Ji(JllC6 Corp .•" Daisy Wiley financ~d /I car nnd credit diSllbi1ity Insurance through the defen· dilnl. The credit disability Insurance was to make her payments if she became disabled. Mer suffering l\ stroke. r-1s. W ile~ missed two pa~ments. and the third WIIS made by the insurer, before the defendant repossessed and sold the car. The Alab.lma Supreme Court found substantial evidence that "GtAC [hadl tn.1de . ..an implied promise not to repossess the car if it knew that she had purchased credit disability insuriloce and that she had ...complied with the terms of the policy ....... Another type of credit insurance is involuntary unemploy. mtnt insurance. This insurance is designed to nuke the pay. m~nl$ of the consumer j( he loses his job involuntilrily. In the fine print of ml\n~ of these insurance policies. there is a provi· sion thai the consumer must be emplo~ed for 12 consecutive months before taking out the insurance. Again, many times. no questions are asked regarding the length of the consumer's employment at Ihe time he takes oullhe insurance. However, often the consu mer's lack of employment for the specified period is used by the insurance co mplln~ as grounds to den~ coverage. If the consumer knew of these reQuirements or was able to read altd compreh(lnd lhe operative langu3ge, he would not w(lste hl ~ molte~ on Stich tI.~ele$5 covernge. Another Mea of insurance packing ill the consumer finance industry deals with collaternl protection Insu rance. ~tnny fi nance companies requi re that collateral protection insurance be sold Ihrough the finllnce company. Of couue. it is perfectl~ permiulble to require insurance on the collateral. It is illegal. however. to require the consumer to purchase collateral pro· tection insurance through the finance comp.ln~.l l On many occasions, consumers are told Ihey must buy the collateral protection Insurance through the finance compall~ in order to obtain the loan.- The value of the col1ateral ofterlls ()V(:rSlIIled, which causes the premium on lhe insurance to be higher than the premium lhe consumer would pay elseY.here. A5 stat· ed ilhove, there is a motive for the fif\llnce company to charge

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as high /I premium as pouible. The finance coml)3.ny receives interest on the lotal amount financed: it also receives commissions. Onen, the insurance is sold through /I related corpora· lion which all()\\'s ed ra profit for the companies. The Federal Trade Commission has enacted strict regula· Hons regMding household goods being used as collateral in consumer 1000ns. Cenerally, most household Jloods cannot be used as collateral:" However, many flmmet companies take II security interest In these goods solely to ehnrge collateral protecHon insurance on it. Some finance compllllies hllve tllk ~n II security interest in such things as fishing poles, d ock rlldios, blankets, televisions, and other similar items. Since the finance compan~ has 00 intention of repossessing such items, it is not real colbteral, ilnd it is improper to charge insurance on II, This is simply another way the creative poverty industl')l eKtracU monty from its victims. Non.filing insural\Ce 1511 type of insurance wherein the finance company charges a fee to the customer in lieu of filing a UCC financing st,ltement. The finance comp.my chllrges a pre· mium and sUPpo5edly gives the premium to fin ins\l rance com· p,my to cover the fi nance company in cllse it nllcmpls to repo~~ess Ihe collnleraland is unable to do SQ, solely because II failed 10 perfect its security interest by filing II UCC financing st/lte· men\. Theor~tically, the finance company can then look to the insurance company for payment of the value 0( the collateral, There are many Ilbu.ses with non.filing insurance. Often, consumers art cllllrged premiums and there is no insurance at all, The finnnce company simply keeps the money. Other times. the money is paid to an insurance compJny and 100 percent of the premium is returned to the finance company. On other occasions, the non.filing Insurance i~ chllrlled on collateral that the debtor finances at the point of purchase. Non.filing insurance on this transaction is generally Uselc~5 because UCC financing statements are not required to perfect Ihe secur,ty interest in such goods. Therefore. non·filinJ:l insurance is not neces· sary in most cues. The motive for Ihls is to increase the IlmQurlt finllrlced. The final type of coliatHal protection insurance il force· placed i!\surallce. At Ihe time of lhe loan. many consumers take OUllheir own collateral protection .,... insurance from a sepJrate comp;!ny. However. if Ihe consumer does not keep the collaternl pro· tcction ill.mrance, the finance company hll.5 the right to pur· chase collateral protection insurance on the collateral. It is permiuible for the finance company to buy insurllnce similar to the Insurance thllt the consumer allowed to lapse. However. many finance companies have Ilbused this privilege by pur· chasing insuranc~ that gives them more protection than the consumer originally had with his own insurance. Por ellilmple, there are some policies force.placed thai protect the finance company against the COnSumer's default. In other words. if the borrower doesn't make his pa)'ments to the finarlct COrllp;!rly. the insurance policy will cover the payments. Other provisions provide Ihallhe policy only pays on claims if the collateral is repoucsscd. The IIremiums on these pollcies are the highest allowed by law and to mllke matters worse. the finance compa.

nies art allowed to charge interesl on the premium. Therefore, the finance company has it motive to t.nd lhe most expensive policy available. This rut,Jl~ in higher charge! to lhe consumer. The area with the most abust involves the method of talculating the premium. On many occasions, the insurance pfemiurn is based on the gTOM balance of Ihe loan. but in the event of a total 1055 of the collateral, the insurance will only pay the actual cash vallie, or depreci8led value of the collateral. Mllny lime5, the collateral is worlh less lhan the gross balance of the loan; l.e., eilts, mobile homes and other assets that depreciate. While tht consumer pays a higher premium baMd on the total amount owed plus interest, the most the Insurance will ever pay is II lesser Ilmounl, i.e., the depreciated value of Ihe collaleral. This practice violates the Alllbllma I)epartment of Insurance guidelines," Each of these insurance products provide wry little benefit to consumers. Finance companies rellp the relll ocneflts of Ihe5e products at the expense of consumers who clln least afford to pay U,e price. n. "RenewlnJl" Lollnt or Flipping Consumer finance companies not only profit from the amount of insurance sold, but their profit is alS() driven by repeat business. Unfortunately, repeat customers are not always made IIware of the options available to them. When customers borrow money from some fiNnce compa· nies, those companies begin the process of maintaining that customer's indebtedness. After several payffi(!nls ue 1Th1de, the consumer typically receives a letter from the company that tx.plains that they are entitled to additional money If they will come down and sign for it. Usually, this is a very small amount of money. I-Iowever, in order to get the additional money. the previous loan is "renewed", with all the necomplI· nying fees and charges of a new loan. This includes addi· lional premiums for alilhe insurancE products that are ~ing '"re'p;lcked" as part of a second 1000n. Further.tht operation of the Rule of 78s in the early payment of interest and Insurance chllrges results in a heavy penal· ty for those who refinance. In c'merg IJ. American Generol Finonce, ~ hIe,,· the plaintiff brought an Iletion under l..). 18 U.S.C. §§J961 el seq.. because sht received 11 leiter informing her that additional money had been set lulde especially for her. Furthermore. she pruented evi· dence thai the defendant had purposefully concealed her option to receive another 10M and intentionally "flipped" her current loan, thereby, increasing her indebtedneS5 al II much higher eost. [n her complaint, she alleged that the practice of "loan flipping" was a "'rllckfltering IIctivity' within the meaning of RICO 11962(c) .... The court recognized that "she has not been selected to receive the letter because sht is II good customer, but ~cause she helongs to II class of probably gullible customers for credit the purpose of offerong her more money is nOlto thank her fo r her business but to rip her off .... "1' The court further held that flipping is a sleazy sales practice.'" While the cOurt held there was no IUCO violation, it cerlainly agl'Ctd tluit nippirlg is egregious.

.(""'0 \1E R

F1'ppmg ,. wrong. A1liwlough AIaIwNo ~1I.1. courU hIYt newr ruled on Ihili PQCIi«. il iii taSy to see thaI such II ~ntm of intenli"""l1~ chutin8 unwphistiuled ConlUIMI'$ W()tJld p,uent " cause of action for fraudulent supp.ess;on Or an out · right IntentioNl misrep.esentation. C. Oral" ArnongH 1.o;In. Many COIWJfJlf1. tirww;~II~ionJ WI. pbu through <lulen.. i.l:~ KIl.nof goods such is em . mobile homti. leltvi · .ions. "eROS. and washing machines. MOlt of us have sun .~.li"men lS discussing &aler finar>eing for such" ".It. ~IOlt 01 tM limo: Ihis <kaler.a ..... ng.d tinaneing il h;mdled in tM following The tiflil"lC:t ~rry gives tilt dealer .11 of lhe ntCtsSiIry documtnillor tM COIUumu to CONUll1ITIIItt the !olin. I.•..• retail ,...""lImtnt ronlrad, mortgaa. or UCC linar>eing5tatemenlS. Truth ·in·Lendlng docUmtnll. tIC. After " li ing Ihe p,oduct. lhe doal .. gets lhe coruume. to sign all of the financ. pa"".s. In xtUo1lity. this is a loan from the lina"". COI'I1(larry to tht: consumer. wilh tht: consumer nuking all ~ menll to tM fi1WlC. COInIW')', not the <luI.,. On ~pr •• howt\'t1'. the &alt. ilshown 10 bt tM lenokr. This plpCf trail is emated so the fi~ ~ ran claim thaI it is purchasing the loan from the deaItr and not making a direct loan to the consumer. Since the fil"lil'U OOO"I1pany is purchasing the loan, it con -n that it con ~ the loan lor loss th;an Ixe \Ill ... 01 the Io:wI or at II discount. The discount is usually ~ to prior to the under· lying loan bring ronw~t td. In ,nlily. the finanee tompany simply keeps a portion oItllt amount tinar>eed in txh dul.ln other words. ,,'hen tilt lilllnce «IItIfWly "buys tilt Ioon-, tilt linin« ~ will keq>. for nample. $500 of tilt amOl",t filW1«d and never ~ il to lilt dealer, The amount retainw by lilt finar>e. company n~' loaWl; lilt hands of lilt fina""e compafl}'. \'t!1 lilt con · ,wmo:. is obligalw to PloY il back and io d~.gtd inl ••ut on it. Prxtiully. the :.<:1 of buying tho loon al a pre·appnwtd discounl or keeping pUI 01 t.ht amount tin.anctd requi.ts the Ileakr 10 ni" his price by $500 iu in lilt uampk ~llo Imke lilt w.om profit he would mab if the money had not bten kept by the fonance rompany. It h:u b..n . rguw lhat tht $500 thaI tht finance eom~ny k«ps ;s a fina~ charg•. u detintd in lilt Mini·Cock." If il is a Ii~ cha~. it should be diKlostd to tM buytr. Anothe. form 01 .s.lIk. discounl works u followo. The dtllk. will call 1ht fina"". compafl}' and u~ ~t ... hal inle.tsl rale Ih. finan« company is wi lling 10 ma ke a loan to a particulu con · sume •. Th. firwx:o. company ogrtt$ to mall. tht loan at 10 ~. etnl. for tumplo:. The dealer "ill then add 2 prrcenl on 10\'1 and make lilt loan "I 12 prrctnl. The deakr and fin.voc:t company will 5111,1 tht 2 ~runt. The COIUUmer is newr told lhal lilt r.nar>ee compafl}' Will willing 10 INn lilt money at 10 pt.cenl. This is som~timu .eferred to as Ih~ yield Sprtad p.~mi . urn." MMly timo:$. tilt wruumo:. would ha"" """". tnlt.~d inlo tht loin if he had known thai he could hIYt ,.,... di1'Klly 10 the fi1WlCt com~fl}' and gotlUl the li1WlCing ~ •. In Smith t'. First FllmilV FinatociaI Smm.~ the plaintiff brought a f",ud ildion bait<! on the defendant's failure 10 disdost a

rrwl""'.

yield IIW&d pmnium. 1hr ~ Supmnto Court held that the yield IjlI"Ud prtmium "'is • ct* ri ~ I1"IOI"ItY •• .11 is II Iml&rial fact tN.1 tht bom'Jwer is entitled to know btl'ort completing the Ioo.n clOlling. II is a ItlIOterial fact that , mortg;ljte broker has an obIiption 10 di$c:1oK to a ixIm:Iwer.Aft •• lilt Smith Opinion. lilt tinancing lobby ,wpportw and

secuftd pasAgt of an amendmtnt to tilt Mmi-Codt. "-hidl stltts lhal thtre is no duty to disclose tht ~ mo:ntioned yield spread p.emium." The a"",ndmo:"t du lt with tho Mini · CO<k only. It did not affect whether Ihere was a common law duty 10 disclose. After t.ht Mini<OfJe ~nt, t.ht toUrt 01 civil appeal, iswtd ~ signifrint .... Iing ,n Bromktt ... AWmson Foni and Ford Motor Ctedit cO'''' [" Brumlel/. lilt plaintiff broughll claim for f.... l.Idulent IU~ ba$ed on non-disclosu.e 01 II yield sp.tad prtmium. B.... mlett pu .chased a car from Adamson Ford and obt,iintd financing for tN.t purchase Ih1'OOgh ~'ord Molar Cmlit Coo1pany (FMCC). Adamson du.:1ooed to tho plain. tiff thaI the interest ",Ie WOI.lld be IS.49 prmnl AIttr bring loid that he would n:ctiw "the best financing " ... ibbl ..... Bramlett inquiftd is 10why the interul .... Ie was so high. Adarmon Ford told him lhat il"",,"as bwouse lilt] Wasil poor cml it risk. - The AJaN,.,.., Court of Civil Apptllb held that a duty to di$c:1ose the ag ... mtnl btlwffil Adamson and f MCC 10 split ~rt 01 the inteTUt eNr1t' arose whm Bramletl inquired ~t the r.T"IIOC4' thor1t'." II ~ hdd that the iswt of agency bttwtm AdaI"l'l$OTl fo.d and ~'onl Motor Credit w<ll a jury question. Obviously. Ihis amu1l/.eomnl promotes IUghtr li!>lllCe thorg.es and should bt du.:lostd. ........J OM ofillt mosl common dtf.nsts uKd in ~ these casu by Ih.l.rnler is that the car dealer is not their agenl . The.do.e, they stale Ihat Ihey cannot be liable for Ihe car dealtr's fail u•• to di5clou. In addit ion to BrtmI/ell, the . tetnt cut ri Sanford v.lfoou 01 Discount Tirr$,· refults thaI argumml. ln Sanfonl. plaintiff purchiKd li.es from Discounl TirtS bwouse il ""lIS offering .. r.... «II,,· I" lelf1)hon. through II stpa.lIte cellular telepho .... company. Plainliff , lItged lhat Discount Tirel. as a dealer and agent for the phon. compafl}'. mi,.eprtstntw lhat Ihe phone was fr... The lower court dismissed lilt caK iglIinst lllt c.lluliT phc-rK com~ny on sumll'lllry judgment. s""ting lhe.~ ""lIS no tvidt:nc~ of..,.ncy bttwttn il and DilCOUni Tirn.. The Court of Civil Appelli. "",",..td. holding lhat ~.ncy btlwetn Discount Tir.s and Ihe cellular pho"~ company. Wili ~ jury quution. Under the ~uoning of :Xmfonf. ag~ncy in, do~ler.l. nd" relalioruhip can be II jury qUfSlion. II is clt~. thai the sphl in inl.rest chargu.. )'Kid 5prud pre. miums and discounled car loans d";"" tilt pricu lOll lor Alwlm consumers lind ihoold bt disclosed. In fact. in ral ~s""te t.~nlactions, lilt ~i~ld sprfad pr~mium must bt disclosed 10 Ih~ consume. under Ihe Real ~:s""te Settlemenl Procwure Acl iRESPAJ. Miny ti"""l tM hike in price has II direct uLalion to tho t ,tt!itwor!hinw of tilt NltOmt•. This unounll to a "lI"""'rty tu" ,,-hich lIIh"'HSl!ly affects n'WI)I Alwmiaru. TheK thorgts should bt disclosed. 10) lhal too · sumers can ItlIOke mtllningful decisiON.

Po VER \.

charged by ch«k·cashing stoTes. and .wn

Pawn Shops A13bama ... ideol. wilh pOOr credit histo';'" or who are inexperienced with

traditional lending institutions are forced to use allemati".. sources for loans. Pawn soops and 'pawn your litle" bU.\inesse. have

become one of u,., l1lO5i widol}' used forms of financing in this state.

1>0 VER~ . 1 ).

these regulations aren't .""'ays hor.o ..d..... Many times the charge!;.re Il.I high as iO percent of the VIIluo of the chock. A>. more Alabama residents use alternative 5jl5lems for banking and loans. chock-c&$hing outlets will conlinue to p1USJI01" whil. Alabamians p.}y

e:wrbitanl fees and /"" regulations

protect

thtir interests.

Alabama allows pawn shops to char~ exorbitant interesl rates with "secured" transactions. By statute. a pawn shop is

allO'ol-'W to charge up 10 25 percent of the originailransaction amoon!. per month.- With regard \0 small loans. Alabama all"",.. interest rat .. of 2·3 percent per month depending on the outstanding balanct." Pawns are e~emptro from the Alabama Smalll.oan Act.~ Themore_ 11.5 compared to conwntional inlerest charges. a pawnbroker is all<JWed to charge much higher rat ... In fact a pawn broker can charge an annu· al interest rate of up to 300 percent on ont tran .... ction . This makes a pawn tran ....dion 0"" of the most profitable pOVerty indwtries in the sbte. Also. there is tremendow growth in the "paY." your titl<:" industry. Most "paY.ll)'OUr title" O!)e",tioru loan money on tho title of a car. Many limes the omount of money loaned is very SITIIOII in relation to the val"" of the whicl<: being pawned. The ~urner provides per>anal identirlCation. an eJCtra 5eI of car kql. ond their signed tar title for a nominal loon.~ The finance compa· ny charges on the -loan" can be 11.5 much as 2S pel'Clmt interest per month. AI the end of each month. the loan is ............d. If the CUS\On"leT become$ delinq""nt in his payments. the extra set of keys make. rrpossession 0<lS)'. S~ the consumer signed the title 0'>'fI" to the p.'ffi" ohop. he no longer 0WI1S his car. i\-ben <ustomrn; are desperale for money. they ...i ll pay almost anything to get it. This includes handing 0'>'1" their rM. which many times, is their only tl"ill1$JlOrtation to and from work. Cbviously. there is much room for abus< in this am.. In I'/ogd v. Title Exchange and Palm of Anniston." the Alabama Supreme Court determined that this questionable p.'ffi" transaction is permi .. ible under Alabama law. Controvtrsy aros.! over whether the car title was "tangibl. property". as defined in The Pawn Shop Act.'" The court remained SKeptical as to whether a titl. is tangible property which could be. pawned under the Alabama Code. but determined that a car title is not. "chose in aclion" which i, expr..... ly .xcluded.- Therefore. "pawn JIOUr title" ope",tions are anowed to make loans at uorbibnt inter.. t rates on collaleral that is often valu.d at """"",I tim .. the loon amount. When the consumer does not repay. he Ios.!s his vehicle or other valuable collateral. Check.ce.hlng Outlets Another type of business that is g!"O\'oing in Alabama is the check-cashing industry. This gr",,·th is aUribut.1ble to the number 0( Americans who do not wt banks Or other depository institutions. In 19n. 9 percenl of Americans did not wt banking",,,,ices. hut by 1996. that rogure had ri!;en to 14 per~nt.'" TYflically. check-cashing oullet. charge. per~ntage of the ,h&k for their ",,,,ice of cashing the check. Th~ percentage depends on the type of check "Only seven .tateslimit fees

Rent-To-Own Centers In the renH'rown industry. -jusl a few bucks a week" entices the pOOr into Iremendous debt and obligation. Por the poor. the chance to 0\<" a household applia""". such as a washer and d~r. is enough to contract away their savings potential. Rent ·toK>Wn customers routinely pay much more for product. than what they ray for the same item at mQ$t retailers." A Iypical effective annual interest rat. for many of these tr31lS/1ctions is 6()(1 to 700 perc.nt. Th"", consumers are unable to obtain traditional credit due 10 their low incomes. employment Or spOtty credit history. Therefore. the r~nt_to own centers are many times their only place to tum. Up to 70 of the cwtomers of some stor•• receiw govern· ment ...isbnc . ... In the typical transaction. the consumer makes wukly payments. As long as Ihe consumer completely conforms to the rental agrumenl. he can kup the muchan· dise at the end of th. agreement. 1I000.."... r. if one paymtnt is late or missci. th~ ,ustomer forfeits an of the previous rental payments and must begin the rental proc ..... OVer in order to kup the merchandise. In AJabama, these transactio'lS are I>Ot considered loans.Therefore. the industry is I>Ot r<'quirci to follow the Alabama Mini-Code. The ....1.. practices of some l'tnt-to-own compani.. can be. characterized as "hard .sen". Most salespeople in this indu.try are trained to quote payments in the "'~kly format. This makes the payment seem affordable. Some compani ... include warranty charges and insurance charges in the raym.nts. These charges provide ,~ry little benefit to Ihe consumers; howe-~r. they pay the prke for this on top of the already outrageous interest rates. The Debit Insurance Industry Sorm companies in the debit insurance industry have ~n major players in the Alabama poverty indwtry for many years. Insurance companiu are relatively unregulated in AJabama. The Alabama Departmtnt of Insurance is underfunded and understaffed. With a staff of 80. the Insurance Department ha.s only \W<) iJWestigalors charged .... ith the rUpOnsibility of im.·•• · ligating all consumer complainl5 against Alabama insurance companies. By contrast. the Florida Insur3nce Department has 72 people to inwstigate consumer camplainl5 ..... hile Ceorgia has seven." Alabama is prime hunting ground for debit insur_ ance companies lhat wanl to profit from the poor. Debit insu~ is distinguist>ed from other types of ;nsu~ because of the agenfs illVOlvement and the smaller w i"" of the pOlicies. The debit agent goes to the pOIiC}i1older's home once a month (or more often) and collects a small amount ri prrmium . usually in ca<h. /or the pOIici .... lYPical pOlicies are $500 burial insu~ policies, small life insurance pOlicies. ",cident expi'1\Si'

~--

poIicits, IwpitlI apen$e poIicieo. disobility poIicits, ana.. poI>dn.,lIld Mtditan suppk"1tI1l ~ Wh.... tilt poI~ gjva tht;tgent money. tilt .Ji#nl is buRed 10 ~ tilt Ii'OI7It)' bid< to tho all1'IIWl)' lIld credit it to tilt poIi<:yhoIdcO accounl Nonnally. tho agent is required to giYt tho policyholder a receipt .Ihowing ht his reaiYfd tilt m:Jr'IfY or to put a diKk mark in the poIicyhoIOO's P'I}mmt book ~i1€ that the Ii'OI7It)' has t....n

"""'"

Many '" the policytJokkn II~ low inoomt. iIIitu;ott iN1d in du)in,a "'i!h insufmtt. On IIWIl' (lCQ.

U~wiclltN

sions. thtse polkyholdtn hI~ thtir pOlkits canceled and the ash value stoltn by tilt agent. or the agent Ile\'tr credits thtir pOlicy with tht p.... mium PIIyment!hoy made. Policyholders hI~ loans taken out on their pOliq without tlltir Imowltdg•• aoo t~ lire talktd into canceling their old pOlicits with ash vallOt aoo taking out new poIicits. On otlltr ocasiom. pOlicy· hoIlkn 1\0\", thtir .JiINturn forgN to importllnt dorumml.$, 1100 t~ IIrt sold lIStless &nd dupliClltiYt policies. AIaIDrna's Supmnt Court his I't\Iiewtd man)' lUils irMiMng ddlit inso~ tIJIn1)inits.. Mr1 family rntmbtr who is misled :II1d injured by...m actions ~ have a aust <J action. In NaliQnal Slates /rNlrUIlOt u. .Jones.- thI: Alabama ~ Court htkl th;II; a nlea: hid standing to brii1€ an action rtprding Iltr aunt's pOlicy. oIthouI!h $hl_ mI tho owIic;ont, tho insomI, tht beneficiuy. « tho owner dtht policy. In Old Soutlwm tM Insuronce ~ ....OOdalf. the AL1birnIo Supmnt Court held that a husbIInd Olllid bring a fnoud daim rtgarding in insoJl1lOC( policy coYHing his "if.,. btcallSt tilt husband had ""'" the policy prt'l1li. ums. Wi! thI: w:1U5iYt pasty with whom thI: insonnu compan)' hid dolt. and hid sutrtrtd dil'tlCl injury, In Louw" Am... ,;...." Medim/ hIIem,- the ~ Supmnt Court htId thalli plaintiff ~ bring II misrtpmmlation dlim if silt CIIIl show Jhe his been ir1jortd At. stIlId oboYt• ., action may br broo..oaN by.,.,.ont who is misled;ond has in,iurits thalltiUlt m.n the mU~ « IUJ'PI'Wion, One of the primai)' d.fenstl used by this industry il the statute of limitations. Many ti ........ tilt policyholder dots not t¥tn know lit Iw been defrauded, Often the wrongful act took pillet mort thin two yun prior to tilt policyholder filing II l¥Nwil F« instanct, if the IIl!ent cashed in tilt consumer's pOlicy « did not credit InOIIqI to tilt polity I/XOUnt stVt1IIl yun prior, the pOlicyholder rn..y not hI~ betn aware oflt. In lI0<r0ro v. Mulual Sat••tgJ," tilt Alabama Supreme Court h~ld that the statute 0( limitatiON be~n to run wlltn tilt lawyer told tho client that she hid II CIIst. Hou.wd ii alj,O tilt first CIIst to lISt tht justif~lt ~IWta sWtdard illite.... d a tn· JONbIe relWta Sbndanl when dettnnininQ wlltn I fnud should I\o\'t been diKcMrtd. N i result, tht statutt of limita· tions ;s almost IIlwm II jUi)' CIUl'$tion. N long;as Alalumll's Insurance Department is under· funded and ullderstaffed. j,Omt debit insurance complllliu will be IIble to wreak IIlIvoe upOn Alaluma (ONu ....... Thii bck of supervision. coupltd WIth our uMduCllttd populillion, nuokti stopping the uniCrupulous practiees of some debit inluTance

C()mpaniu imposiible. T1Mo " _ s f Opinion RKfflt chmgts in the IIIw ..ill hive II signiflClllll impod on Jl(Mrt)' industries ability 10 thrive. The CIIst 0( Fomoosl Ins. Co. ... Parham." involvoed Plaintiffs' suit against FO.... l'IlO!It Insuran« Company (biming that F(H'fll'I(I4t wppfU'td the fad that the~ ...... an alrlI pn::rnium clwit lor adjKmt structure moIIile home CXWfTagt lind that FortmOSI. through its /IlIeI1ts. told l'II.intiffs that the lirst yw's mobile home proptrt)' insur· ance Wi! fret. l'Llintiffs stated they did not ~ the dorwnenI5 they signed bccallSt they trusttd Foremost's agenls. The docu· ments """''ed that the insurance W30S not frH. III that CIIst, the supreme court o~rruled lIi~k(1Jt u. SIO<~,- which established the justifiable relianct standard. That mndard eliminated tilt gentral duty on the,..rt of a person to rud tilt dorumtflls rtaWed in conn«tion with a t~ion. The «IOrt rtplKtd thot ilandaonl with tho TU· sooable relimte >W\danl. which is more c~ly aslOCiattd wilh Torres u. Siale Farm-. Under lilt new itandanl, which applies 10 cases med after Ihe date of the opinion, a Irial judge call entu a judgment III a matter of law in a fraud cast whore tho und,sputtd eviden« shows tllllttho party claiming f...ud was Cllpable 0( reiding and understantling tilt docu· ....,nls but rrIIIdt alleliberat. dttision to illflO«: tilt written

-~ Translllted to tilt p(Mrty industry. a perpttrlltor of fraud CIIn purposely (reatt I.ngthy documents with fine print tkat con· tradkt ",kal he islelling the consumer, As long;as the con· sumer .ig... the document, his claim is subje" to being Ihrown out on wmmai)' jod.gmcnl. reg.Jnllus of wlut ht w;as told. This oo.iously allows wrongdom to peT'ptt"'le fnud on unknowing citiuns. If t~ QfI tilt signature on the docummt, they are argmb/y off "K>,lI:I fr«", S\tSIg.stlons for RefCH"m The number one area tkat needs improwment in Alabamll is tdUClltion. Wt hI~ failtd pitifully in this regard. Our popula· tion is disproportionltely illiterale cornpf.rtd 10 the rozt <J tho COUtIlry. If OUr popobtion 'Ntrt to becomt mort lilentt, they might bt &bit to fight off tilt sltaZy salts pnctica of some mcmbrn of the p(Mrty iooustry. At. the Al.1bamll Legislature ~bates tort reform, many AWwna residents .... bring injur.d by fraudul~nl coru!umer practices. If some lort reform is P/ISStd, thert are many othtr areas 0( the bw thot Al.1bama lhould ilio reform. For n.a.mpIe. 'Nt should tltd. instead <J 1IPC'Oint. tho Commissiontr '" Insuranu. This would ho~ that office be more dirmly aa:ount. abk 10 consumers. Also. proper stalfing and funding 0( tht I>eP/Irtment of Insuranor would bttter protect consomers. Wt ,Iloold Ttquire p.....n broktn 100 ~nl·t..,...,..'1\ C(llters to charge commercially rtawnable ralts 0( inlertSI. and we should tnad a strong criminal fnoud law to lilOIivale AlIIbIIma', p(Mrty industry to clean up ~ I;OIT\lpt pn.ctkes. ],;asUy, AlabarN. should hold tht iruurllnte and finance industi)' awlUnl· &bIt undtr tht Dtc.pti~ Tnd. Practicts

Acl This would then lliow tm Attomey Central to bring suit dinctly against $.lJ(h off~ndfrs and allM.'lte the nti:d for so many priVllte civillaW$Uiu.

:II.". ':IO!.

Conch.I. lon AI ....."",'s poverty indwtry iJ lliw and thriving. lu.long as OUr population i.I ur>tduu.ted aid theu is wry little I1'IOney lWroprillted to reguillte this indmtry. it win cOfllinlif 10 thriw in Alablo!l\ll. ln order to dDP AIab.lrN.·, pOWrty indm·

try. reform is nttded. A InOI'f eduu.ted popubiion, <:ouplnl with mou retul.aotion oIlhiJ indmtry. should pulm on the right track. •

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Quutlon: "This I~tu ;$10 rtquu, a /QmW written ""inion from tho DiKip!'n.ary Commission coraminJIlhe utilization o(lm KeviKd Uniform PartnmhipAct pfO\Iisioos rtgarding lI~gill ered Limited L~bHily P~r\nu>;hipjl by la""l"'S who ar.lken$l:d 10 practice law in the Stat. aI Alabanu. -S«tion 1010 oithr i\labama Revised Unifonn Partntrship Act apptan to alkJ,o.' ~ to rtncIrr ~ 5n'vices lIS a manbrr Qir as 0IIl ~ oi a RtgisttmI Urnited Liobility hrtnmlUp whether iUCh Regiskml Umitw Liability Putnollhip is., AbI:wN. ~m1 Umited Liobilil)' Partnrnhip or a ~ Rrgisttrtd Limited Lability Plortnrrship. Paragnphs (d) and (0) of Section 1010 appear 10 limit this authority \0 the discretion of the IkmsiJ1llluthority. Section ]010 is "tlltctw.! hertlo and i1lCOl'J)Ol1lted h...in by this ..,f"tn«. "Hased upon the foregoing. we are concerned lha;1 without tile ;$SUIIOC. of a fo."",,1 opinion by the DiKi!,linary Commission.liwyen attempting 10 utiliu I IItglll "td Limiltd l.bbility Part~rship (whetlwr A1abooma or for_ Eignl in lhe ddMry d legal IotfVicO$, tither 011 membtrs Or lOS emplO)'<'to, may bt wb;tc1to disciplinary proctdura Thert/on:. wt would ipprtciatt your prooiding us ..,ilh a "";I\en dtcl ...itory ruling IS to tht following qutstionJ: "Under the AllbalTl/l Rutu of rrQIe!$ional Conduct. Rut~' of

I)isciplinary Procedure. AlabalTl/l Standard$ for ImpOSing Lo"'YI'r Discipline. and any other rules of tIw Alibi.rna Stat. 8.>r I/O"trni"ll tIw profusional Condud 01 ~rs. "ill it bo ponniJSiblt for (il ~rs who Irr littnstd 10 pnditt bw in tIw SUI. 01 Ahbuna to utiliu III AIWma RegiSlertd Limited Wbility Pirtm.rship in tilt dtlMry 01 l.gal KMen. (iii 1a,,'YI'rs who are littnstd to pndiC<' law in tIw: State d AlaNlTI/I to bt .mployetl by an Alabama Registered Lim ited Liability Partnushi" for the deli\'el)' of leII'll slNicu. (iiilla,,)'trs who arr Ikensod to pTKlic. law in tilt SUit d Alabama to utilin i (orrlgo lIegislered Limited liability I'irt~rship in the del;"" ery oIkpJ sorvicn lind (Iv) Ino')Trs who art licmHd to poetice law in tilt SUtt d AbbaJna to bo employed by i fortign Rtgisttrtd Limited Liability Partnership lor the delMI)' of Itpl soNicu? "ThtK quulioru iPPfU to be rei.· li""ly Jimplt quutions; ~r. a wril_ ten opinion W<luld be helpful to allow uS to illoiso our cHents concerning Ihe u~ of tIw ReQi.lertd Limited Liability hrtnership provisions of the Revised Untlom hrtnership Act." An .we r : ArI AIWma bwytr IN)' form i ~mittd liability partnenhip with other bwym or proIasioniI corpontions for tilt PTKlitt 01 ""'. SO long 011 tilt liwyers in tilt partnership mNin ,thicilly re5j)OOSible to tlltir clients for the COOSOqueflCes of their own idiom lind the iSCtions of the pll'$Om thoy $IlptMSO.

Disc u ss ion: In RO·93·16. the DisdpJinary Commiuion considered identical language to paragraphs (d) and (e) abovl' in the contnt of the Alabama Limited Liability Company Act. That opinion is attached hereto for reference pu..,oses. Paragraphs Idl and Ie) of S«lion 1010 of the Alabama R""i",d Uniform Partnership Act do not limit the right of 1""1"rs 10 organize as a limited liability partntrship. as you seem to suggest they do. Paragraph (d) simply states that professionals do not evade the jurisdiction of their licensing authority ~ registering under the Act. Lawyers would still be subject to the Rules of Professional Conduct and any other rule or regulations al'Jllicable to the praclice of law in Alabama. Paragraph (e) of Section 1010 state, that a licensing authority may impOse requirements in addition to the Act On its members seeking to operate as limited liability partnerships. Paragraph (01 of S«tion 1010 makes il dear thaI an emplO)"'e or partner of a limited liability partnership is rUpOnsible for the consequences of his Or he r Own conduct. While the Act has, in ell«l, elimin.ttd joint and severalliabilily among law partners, all lawyers slill re"",in ethically accountable for the wrongful conduct of those laW)'t'rs and non lawyers whom they supervise. No additional require· ments under paragraph (e) ha~ been imposed "I this time. IRO·96·()91 •

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Where

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Stand? "T'M ftdtr.ol Arbitration Ad. (I'M) proyidts tNt an arbilnlion clauK in -, contract evidencing a \JalUKtion irwol>'ing COO1ln(rce .. ,sllall be valid, irrtvOCatlif. ~nd enforceable, ~ UpOn luch grounds ill uilt at law or in equity for It.. revQC.a. lion of any contract -. As the Alab;o"", Sup •• me C(lUrt ...... ~Md. "the FeW ...1Arbitrlltioo Act ~lilllH a strong feden! policy fiVOring lIrbill'lllioo. requiring tNllhe courts 'riaorously enforce' aJbitl'lllion iifttmmts... !)apite this strong policy, iUl ubitr.otioo cllIuw Will not enforttabl. in A\ab.>ma prior 10 Allied.Bma Tenninix, I"c. ". [)obIon, 513 U.S. 265 (1995), unless the parliel 10 the agree-

ment had conttmplattd "substantial inttrstat. actiyity. '" Until ~ction 8·1-41(3) of the A/(1l1oma C«k WilS held to "ud...... the spr<:ifoc .n~.mrlll 01. pr<!.diJputt .rbilntion agrumenl unless ff'dt1'lllllw prtflnplrd WIlt Law.' In AlliaJ/Jru(y Terminix. ~r. the United Sta.tts Suprtme Court dttrnd \Not the •• need only be I ~'ing thit the \"'I\SKlion in qu ..tion affeds int.rstat. commcrte.' A$ p.ucribN by the Supreme Court. therefore. the law in Alaba~ no longer requires an~ subjKtI~ contemplation of interstate commerce on ~hilf of the parties ~fo« lin IIrbitntion ctllUM iJ trUornabtt.' Alt~ it is now Itdmol ami AlaIwna law tNot an ubill'lllion otgTHment in lo COOlract eYidmcing lo InnAClion involYillll commerce is enforcublt "to the limits of Congress' «Immerce Clause ~r, " quulions stilt rermin ~garding how br<»dly an Alabarm ('A)url wilt corutrue In arbitration prOl'lslon. The particullof ImbroQ.lio tng.J.ging the Alabama Supreme Coorl at thiJ moment is whether /I non·slgNtOl')lto II contract coolllining :an IIrbitr:ation ptO'ViPon may compel IIrbitr:alion purSlWll to tNot clause. ThiJ article disawes whether there is lo pattern to the court's r«ffIt decisioN on this issU(, and. sptcifialty. whelher Alabarm is aligned with the federal Ci\SeS in this regard.

that Ii"..."

AI.urn. Non.Slgnatory

c. ..s

Ouring 1996, four CIIstS ru.ched glaringly different conclusions on the non·signatory luue; €.x parI, Grail. 686 So. 2d 250 (Ala. 1996); €x pari' Murtil!. No. 1951420, 1996 WI. 6S0307 (Ala., Noy.8. 1996); Ex parteJone:s. 686 So. 2d 1166 lAb. 19961~ and Ex PQrlf! CtJles, 675 So. 2d 371 (Ala. 1996). In 1997. the AWwno Supftme Coorl continued this ImKt of apparent cont",riety in thl'« more decisioN. Ex PQrlf! Isbell. No. 19513S( 1997 WL 99725 (Ala.. Mar. 7, 1997). Prudentiil/ Securilies. Inc. u. Micro-Fab. Inc.• No. 1951265. 1997 WI. 99722 (Ala., Mar. 7, 19971. lind Ex parleSlripli"9. No. 1951001. 1997 WI. 121222 (Ala .. Mar. 21. 1997).' EltIImining these cases in chronological OI'Ikr. the AlabamlI Supreme Court's Nondlillll of the nonsignalOl')l qutSllon may ~ II aa of "one *II two lltplbKk. " Ex (Ala The plaintiffs in €x pari, Gaits. 675 So.2d 371 (Alio. 1996)brought claims sounding in f!"Jud. bruch ofwlor",nty and ncgligeru::e in connection with the sale of a mobile horne. A ~ndor. ill saJ.srnan and a ITWlllfactllrtr wtre co-defendants. and all southt to invoke an arbitration p~ in the $/Iits contract ..ilich IIddresstd "Ialll disputu. c!aims, or contrOYtrlies IlrUing /rom or rellotillll to thill ConlDct /]I" 1M molionship$ .midi result from thu Coolrad .. .... , The AlabamlI SuprerM Coorl found thil !anguagt sufficiently broad to hold tNo! all claims in the suit wtre rroperl~ arbitrable, (!esrite the (xt that neither the rmnuli'Ctllrer nor the ",Iurmn~ .. sig_ n.ltories to the rontnc\." o.ferring to the authority of AlfiftJ· Broce 'T'nminu. tht court conclucltd tNot the ••"" was appIic· 1IbIt. and thllS tht trill court did not err in COIllP(lIillllllrbil!"J· lion of 1111 dainu.."

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mr.....rd.

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The Alabama Supreme Coort Kt""lIy Nonded down tIo!o arbitration <kcillions burin" this titl •. arnlthey are diametri·

ca llI' opJ>QSed . In its initial Opinion. £.x parle.Joms. No. 1950111. 1996 WL 292060 (Ala .. May 31. 1996)("£.x parle Joner /"). the court coruiMred the plaintiffs' application for a writ of mandamus directing the trial court to vacate its ordor granting a non -signatory insurance company's motion to compel arbitration punuant to a loan agr«ment entered into between the plaintiffs and The Money 'T'r«. Inc .. a fin/lnct company. for the purcl"w<t of an automobile. A$ part of the loan tran"""lion, The Mon"\, Tree's agent had sold the plain tiff. a collateral iruu ranco policy i-'Sued by Fint Colonial lruurance Company. The cO$t of the policy "'.... financed.,; part of the loan. The car w.,; subsequently destroyed by fir•. and the plaintiffs sued The Money Tree. Fint Colonial and The ~I on"\' Tre.'s agent. alleging fraud and breach of contract. The loan agr«ment between The Money Tre. and the plain. tiff, had contained an arbitration agrffmenl whkh provided, in part. as follOl'/$: All disput .., controve",i.s or claims of any kind and nature between creditor and debtor arising out of Or in connection with the within agreement as to the existence. corutruc· tion, periorm21nce, .nforce. ment or breach thereof shall be submitted to arbitration pursuant to the procedures under the following p~·disput e arbitration agrffment .... " The plaintiffs argued that their claims ag;>inst Firn Colonial were excluded from arbitration beca~ Fi rn Colonial was not a signatory to this contract The trial court disagmd In denying the plaintiffs' writ of mandamus, the Alabama Supreme Court adhered to federal policy favoring the enforcement of arbitration clauses under the FAA. concluding, as it had in parle Gales, that the arbitration agreement was broad enough to encom· pass the iruuranee cGnt ract bel\o,'een the plaintiffs and First Colonial. Rderencing El eventh Circuit authority. the court ruled that the plaintiffs' claims against non ·sign/ltory Firsl Colonial ' should be arbitrated becau,. they are founded on and aT< intertwined with the facts surrounding the underlying contract that contains the arbitration clause."~ Sub"'Quentl;"Ilov.'eW!r. on September 13. 1996. the court. er mero molu, withdrew its origin/ll opinion in an abrupt about· face. In Ex par/elones. 686 So_2d 1166 (Ala, 1996)("£.x parle .Joms 11") the court held that the arbitration agrffment at i.. ue was enforttable only as to the signatories to the underlying loan transaction.- lnvoking general princip les of Alabama contract interpretation. W tn. court focu,.d on the l~nguage of the contract to hold tnat th~ non·signatory w.,; neither the referenced "d. btor" nor the "c~d itor." and thus laded standing to seek enforcement of the arbitration pr'(I\Jision : This Court has clearly held that one mw;t be a signatory

10 a contract in order to be bound by the contract: '[A[ party cannot be required to submit to arbitration any dis· pute he has not agreed to ,ubmit: Old Republic Ins. Co. v. L<tnier.644 So.2d 1258, 126(l (Ala. 1994). In Ex parte Stall ings '" Sons, [nc .. 670 So..2d 86[, 862 (Ala. 1995), we held: 'We nole that [one of the parties on appeal[ was not a party to the stock purchase agreement. Thus. [that party[ has no standing to W'k enforcement of the arbitra.. tion provision therein .. . " In a stronS dissent. Justice Maddox noted that the or iginal deci.ion, Ex parle Jlmes t , w.,; based upon "well -reasoned" federal law, and that nothing had changed since the date of that opinion "except that this Court has changed its mind,· ~ Justice Maddox also obSl'lVed that the question of the scope of an arbitration clauSl' had been previously addressed in Ex parle Gales. an opinion which he considered properly consis· tent with the federal authoritiu.£.x p<lrte Marlin In Iix parle Marlin. No. 19S1420, 1996

WI. 650307 (Ala .. Nov_8. 1996). W!n · dor/manufacturer relatiolUhips in connection with the ",Ie of a mobile home wer~ again involved. as in Iix parle Gales. This time, drawing upon its r."iSl'd opinion in £.x parle Jones II. the Alabama Suprem~ Court held that the manufacturer. a nomignatory. "was not within the scope 01 the arbitration agreement."" Signifkantl~, howt W!r. the court also revis it· ed Ex parle Gales and left that case standing as good law. although distinguished on its facts: The arbitrati on clause in Gales clearly contemplated arbitration of claims brought by the signatories 10 the agreements and al$(l arbitratiGn of the claims brought by other, unnamed parti ... if those claims arose from or related to the contract Or the 'relationships' that resulted from the contract. [f'N21 Nothing in the arbitration agr«ment the Martim signed indicates that its scope was intended to be so broad: the agreem. nt 'pecifically name. only lhe Martins and Blue Ribbon Homes as parties to the agre.ment. and it applies the arbitration procedures to 'both' parti.. or 10 'either' party. This court has rttently held that a non-signatory to a limited arbitration clause specifically refe rencing only the signing parti.. is not sufficiently broad to encompass" non-signatory defendant."

Exporte GI'/lg On D<:cember 13. 1996, the Alabama Supreme Court again considered the non -signatory issue in anoth .. decision dealinS with an arbitration provision in a retail buyer's order. In Ex parle Grav. 686 So.2d 250 (Ala, 1996), the toUrt held that. salesman who was an agent of a principal which entered into a

~--

cootl'Kt hiving 0Ul arbitntion pn:Mslon was alSO) tntitlrd 10 ccmpel arbitntion of ~ ch.ims Olgainst him. This decision _mod at Iu.lt a pmial mum to ~ (t6tnl principles mdorstd in €x part~ Cates. but tlvn WTH! 1997.

no. Court C ....... FlOll Clrel.: Ez

,..rt. ,..rt.

1."./1, I'nIfNntl,' s.elO,.m...... Mlcro-F,b ,net Ez Strlpl'ng In I',x f1(1rllllsl>ell, No. 1951384, 1997 WL 99725 (Ala .. MIT. 7. 1997). ~ nonsignatory _king 10 enfora tho: arbitration prcMsioo was l'd again a mobi~ horne minuiKtum fKing claims JOU/ldi"ll in fraud. bruch fA wlunnty. and ntg1i~n«. This linw. tho: court chme to distingo.W.h €x part~.Iana II. once Olgain tmbncing & part~ Cates and its ft6trat authori· ties. As sbtrd by tilt court: In several CW:$, this Court has refustd to bind nO'Higna. toriu to .rbit .... tion "lV«mtnts .•.. We r:.annot ignore. how· ever. the trend \(7Ward binding non·signatories to arbitra· tion agreemenlS in casu wIleu tho: language of tho: ~lI'\fnt b.-Jl)' includes mlIll' partits. This tm>d iI; nprciaJl)' (Vidmt in tho: Ifdtral

courU ....And _ note. U COUI$I!, ~ this Court in ~ a case invoNilll! Ilw wry WnE arbitration iICIftmtnt u tNt irrvol\.otd in this IItId tho! a non·signatory could ernorce ID agrttmtnl to arbit .... te to which it Wa:I not a pilrt~ if tilt language in the agreement was brood CMe,

"""",." Just as a cln' Ir",,", favori"ll E:x part. CDles and the ft6tral authorities appund to be emerging. in the WIlt Math tho: court handtd down Prudential Soom·lies. IrI(. U. Micro-Fa!>, IrI(.. No. 19512&5, 1997 WI. 99722 (AI •.. Mu. 7, 1997). In a dKision owing more perha!>s to cOl'JlOratt alter ellO theories than arbit ....tion policy. the court ulird 011« again 00 & parleJooes II. Prudential ~ argutd that Micro.F'aI's prHidml ~ such a cloM ..,LatiorWlip with his cornpatI)' as to bind Micro.rab to ~ Mbitration ague. mmt :appliClbk to ilS pmiclmt"s indMdUIol aoo:JUni. ewn though Micro.Fab was not :a poorty to thilt ~mmt :aod. in fKI. IW not )'tl opmtd its own Hpoonte aoo:JUnt :at the time tho: j'>U$idenl's contl'Kt was .igr>td." The oourt di..grttd, ..,.._ soning that. ·Iclonsidtring the plain nwaning of the language uHd in Ihe cont ract belween IMicro- Fab's president) and Prudenti,l, we r:.anoot hold lN.t thfY intended for their agrttnwnt 10 encomp;w ~ relationship betwun Micro-rab OUld Prudential thilt ~ not yet ",rum at the timo: U the ..grn:_ menl .... Morrowr. in the court's view. none of the fKlOn thilt dell"" a wrpont. al"'r rgo 5ilu;rotion had b«n impliClltrd in this cast.» Uruu",risi"lll)'. Cbiri Justiu Hoopers dis.wnt questioned whether il was necessary to consider this · rn>e .... pitrein& of tho corporate wil " argunwnt when. in his Opinion, lhe liberal language of the OrigiNI arbilralioo agreement

bttwHn Micro.Fab's pmidtnl and PYuclmtial was broid mough to uquiu arbitration u the cbims aglinst lN.t compoony, fA which ~ pmidenl was 1(11. """"'." Shortly therufter, in & parl~ Striplirwl. No. 1951901. 1997

wt 127222 (Ala.. Mar.. 21. 1997) tilt pi;rointilfs surd SoolhThJst Hank, SoothTrust 5«uriti.s and an "",p~ of SoothThJst Stcuriti~ on various thtori~ related 10 the alleged fraudulmt inducement of the plaintiffs to place Iheir invtlltmonts in a mut\llll fund. &std on an arbitration provi· sion C()l"ltair>td in applications the pl:aintiffs had signed for the SoothT'rust Securities KOOUnts. the trial oourt ~ onteml :arbilration of all thtir cbims.." The pert'""nt arlIil .... tion pro. vision rud ;as follow!: All cootroYmies which may afist between the undmigntd [Stripling and Tobin] and )'OU [SouIhTrus\ Securitiesl as introduci"ll or [~"'" brokn, )'OUr ~ts or "",pIoytts. C(lIIUming my tratUilClion or tho: CO/Utruction. perfor· mance Or breach of this or an~ other agreement between us ...shall be detennined by arbitration ...." Bttaust the complaint allegtd that the individml ""'p\.oyft w. liabl•• an "",ent" or """,ploytt" of SoothTNst Securilies. the coort found tmt the bngu:agt u the arbitn·

lion .....,....,ion __ broad mough to

the cbims aglinst him." As to SoothT'rust Bank. howevtr. the court found that the pl,intifl$' theory of r«O\ltry was apl"'rentl~ that the bank was liable for the actions of SoothT'rus1 5«urities as iu agent. and the individ\llli emp~. as SouthTrust's"1iIIlJ.. agent". In I strict ruding of tho: arbitration provision. the«fou. tilt court held lN.t the arbitration ~. ment could not appl)' to the claims brought Olgainst the bank becaUH SouthTrust Wall not alleged to be SouthTrust Securities' "agenl or employee". but the opposite-Its "principal..... In ~ition. the coort forKIostd my consideration u whether ~ arbitration provision "othtrwiH: .~Idl claims against SouthTrust as a noruitn;otory to the KC(Kml ~mmt". simply by citint & (Jflrtt .lotnes II." 5ignirocantly. tho: court then pronounad that & porle.lotnes II~ hoIdi"ll (and iu convt ....j sbtrd II lOot",1 rule of AIab.lIT\l Iliw: ... IF'Laintiffs] argu. thill , menl cast of this Court. EI poorte Jones. 686 So.2d 1166 (Ala. 1996). holds that a nonsignatory cannot be l>ound to an arbit .... tion proYi sion. Wt 'IIree that this is the geot",1 rule. The corwe .... of lN.t lOotlal role i.thlot, lOnerall)',:a roonsignatory annot compel arbitralion. Nothing in this cast indiates ~ _ aception .houId appIy." Accordingly. in Ex (Jflm Stripling. t~ AIlbam;ro Su~ Court 0f'PUrt<! to spin around yel agli", elevati"ll & parte ./I)nes If to geotlal rule status and ..,I.gating defe..,nct to E:x (Jflrlll GlJtllS and tho: (tde .... l principles to the di.um\" ·$ comer. once more. trICOIllpui

Federal Law Would Mo .. Freely Allow Non. Signatorie. to Compel Arbllr.tion As obseT\~d by Chief Justice Hooper in his diS!.tnt ta P<lrle Marlin. ftderai courts. including the Elewnth Circu it. haw liberally construed arbitratian agreements to ho ld that a non.signatory to a contract may enforce an arbitration agrtt· ment conlainN in that contract.~ These courts WO\lld g~nera!· Iy allow non·signatories to coml"'l arbitration whert there is a close . elaliaruhip betl<'een the .ignatory and the non·.ignato. ry. as "'ell as betw«n the claims subjtct ta lhe arbitration clause and the claims alleged." Whe •• federal substantiw law controls. therefa. e. there is generall y a much g.ealer probabil· ity that a strict reading af the arbitration pr()\lision will bow to greater emphasis upon agency p. inciples and the litigation', underlying dai .....• As stated in Thomson·CSF. SA. v. Anwielm Aroilralilm As.wciatirm, 64 F.ld 773 (Zd Ci •. 1995), in diKUS$ing the ~s for binding non·signatories to an arbitration ag.eement , "[t[raditional principles of agency law may bind a non·signato. ry to an arbitration agrttment."" Thus, in Sunk;"! &!II Drinks. 1m:. o. Sunk;"! Growers. !O F.ld 753 (11th Cir. 1993). cerl. denied, U.S . • 13(} L. £d. 2d 123 (10194). the court applied agency theory to all<lw a principal, although a non·sig· natory, to compel arbit ration where the charges against a par· ent company and its subsidiary were ~d on the same under· lying facts, although the parent was not. fonnal party to the arbitration agreement." Along wilh its emphasis On agency theory. the federal view also preKribes that "the focus of [the court'sl inquiry should be on the natu~ of the underlying ctai .... ;usertN _. .tO deter. mine whether those daims fall with in the !ICOI'" of the arbitra· tion clause contai ned in the .. .ag.e.ment. .... As statN by the F.le'I.~nth Circuit in Sunkist Soft Drinks. "Iwlhen the cha.ges against a parent company and its subsidiary ar~ basN on the same fact. and ar~ inherently i....,parable. a Court may rolu claims against tht parent to arbitration """n though the par· ent is not formally a pa.ty to the arbitration agreement."" As summariwi in Thomson·CSA. S.A. v. Ameriam Arbitration Association. supra, the common thread among the federal cases i.o; a ge.,.,ral reliance upon estoPl"'1 throri ..: Several CGUru of appeal haw. rtrognized an alt."'ati...., estoppel thwry requiring arbitration NtI<-een a signatory and non·signatory. ~ Sunk;"t Soft Drinks, 1m:, o. Sunki.t Grotl';>TS. Inc., l{l F3d 753, 757-58 (llth Cir. 1993). cer/. denied. U.S. , 115 S.Ct. 190. 130 L Ed. 2d 123 (10194): JJ. Ryan & Sons, Inc. v. Rhone Poulenc Tutile. SA., 863 F.2d 315. 320-21 (4th Cir. 1988); McBro Plmmin'J & Dw. Co. tJ; Trkmgle Elec. O=;tr. Co., 741 ~:2d 342. 344 (7th Cir. 1984). In these cases. a signatory "'as bound to arbitrate with a non .• ignatory at the non· .ignatory·s insi.o;tence because of ·the dose rolalioruhip bet:-wen Ih. entities involwd, as well as the .. tation.hip of the alleged wrongs to the non·signatory's obligations and duties in the contract. .. and Ithe f.ct that1 the claims ",e .. 'intimately founded in and intertwinNi with the underlying contract obligations' .... .. .these es.lappe/ cases all i>Wo/,>e claims u·hich ore integroUV l't!fI1ted It) IlH! CQI1IrrK1 COt,tainirlg lhe arlJilrotion cInuse.~

"Ie..

Should Feder.1 Law Control an Alabama PreDispllte Ag .. eme nt? In Doctor's ~.(ldale5, Inc. v. Casarollo, 517 U.S., 134 L Ed. 2d 902 (1996). the United Slates Supreme Court declam! that "(C1OUriS may not ... invalidate arbitration ag.... ments under state laws applicable only to a.bitration provi.ions .... In the year previous to (AsaroI/o. the EI"""nth Circuit had .ec· ognized that "It1he is.sue of arbitrability under the United States Arbitration Act i.o; a malter of federal substantive law.'" Indeed. the Alabama Supreme Court itself has held that "when there is an ag.eement ta a. bit.at. a di.pute under the provi · sioru of the f ederal Arbitration Act. this Court will enfarce that agreement. in accordance with the federal policy as exp~<Sed in the r ederal Arbitration Act and court decisions corutruing that Act.'" Another st.ong advocacy of federal principles came as ~ntly as April IS. 1997, in Coostal Ford, Inc. v. Kidde;. No. 1960005. So.2d (A1I. 1997): ... {Tlhe Fede.al Arbitration Act will apply to the arbitra· tion provision if the contract i. one ;nvol~i ng interstate comme rce in lact, ~ as to!)., within Congress's po'W'er to regulate under the Commerce Ctause .... ... Acourt laced with a motion to stay proceNings pur· suant to an arbitration agreement must determine "whether the language Or 'scope' of the arbitration c1au"" is brood enough to encompass the claims sought to be arbitratN: Allied·Bruce Terminu, 684 So.2d at 103 (cita· tion omittNj. 'Such a determirwtion mmt /)egin u'ilh a recognilion of Ihe (ederal poJicg (aoor;,'9 aroilra/ion ... : Id.. 684 So.2d at 104." There would seem to be a strong argument, therefore. that an Alabama court .hould apply federal ~ubstantiw law when interpreting an Alabama p. e-dispute agreement, at least whe re that ag ..ement invokes the Federal Arbitration Act. Leaving the lederal pr«mption iloSue for another day. howewr, on doser analysi, the Alabama and lederal authorities may be beroming more closely aligned than appears at fi rst blush. Re conc iling th e AI. bama C • ••• with Fe d e ,al Law It has long been the I"", in A1Ib11ma that "Ial party i5 estopped from assuming in a legal proceeding a position that is incorui.tent with one the party has previously asserted .... Thus, Alabama law;s arguably compatible with the federal

Richard Wilson & Associates Registered Professional Court Reporters 804 S. Peny SI.eet Montgomery, Alabama 361 04

264-6433

wookl p1"«I'" a ~rty from ~ill.ll on a Ilvory ~ a dd(ndint is I principal's ~nt lor purposa; 01 autrting liability ;again~ that principal, whil( taking th( inconsiilent position that the principal WlS not,I>O'I<'('\'er, part of the underlying AI., transac, lion for ~ul'\lOHS of invoking an ubitration agrHment.lndeed, cubin 01 the Alabama Suprttm Court't ~t arbitration casH suggat that, where all dt~ndinu are impliQted on agency principia undrr iM'I art"tration proyision ~rusing the voery claims a!!~d, a plaintiff should bt held equitably Htorped (rom asserting that only a signator)' may com~1 arbitration of the claims agaill$t him , ~ Certainly. the Alabama c-. art aligned with the f.... ral authorities in lheir rtCUrring empIwis upon agmcy rdationshipt.. In F.x JIQri(.hIes II, the court dmoed ttx ~"s riIIht to compol ~ .. tion.~, ~,the~WI'n'a "- agmcy m;\ the isSIXf 011 coIIattnl ~ pOIi<y. 1lK ~rotdl's did not (WfI\cnow thloIlhrrt "'lOS a ~ insurva ~ involvl:d until after their c:ar _ ~• Simibr1y, in f'rude.lIiaJ Securities" Micro-Fob, the cou rt clearly a'lruidt~ the f,.;t that. M'I1 though the claims oIthe individual and his COI'IlfWly involwd the same kind 0( 5tCUritiu. those cLlims could "Qist totally indtpendmt 0( one ~r" m;\ did not "rdatt to the _ traruaction.In rontrut, in F.x part( Cat~, vendor and lJWIIJbctu .... rtlatioruhips ""'rt implic.llted in a singula. t~ion, and the pWnti«, not only knew at the time of the AI. that thry 'ovotr( dul' ... "ith both partie$. but, bued upon the claims asserted, alltitdly rtlled upon this (,.;t. As explained by Chid Justice 1t0000r, unde. these focts it Wil$ a theor)' of rquitablt estoppel which allowed the oon·signatory to compel arbit.a· tion, dut to the clou- relationship bttween the signatory and nor..,ignator)', and the claims subject to arbit .. tion and the claims alleged.SubKq~nUy. in Ex parle CrllJ/, the Alabama Sup.emo! Court ItA no doubt that considmotion of agmcy rtlatiomhips inAucnad its dtci,ion to allow the non·lignatory to invoM the .. rtMtration agrHtmnt: As the tri ..1court noted in its orde. alnlptUing arbit ... tion, the thrust of Cray's comrlaint against Cr<'lY.... and Pardu( is that Pardue. as CrO'ol11's agent, while acting ",ithin the line and scope of his agency. falsely represent· ed the condition of the voehicl. Gray was buying. Clearly, Cray', d.lim c~ within the arbit .. tion agreemmt, and that agrttmtnt is binding UI'O" all the "",rtin and is tnloruable unde. the controlling law. See Ex .... rtt Coto:s.

If ,_q~nt courts contin ... to (0I1ow Ex parlll CtJI~. the Alabama casH may irocrusingly wre 1M ftdtral "rIP'" sis on agmcy .datioruhips and "the rIlItur. of the unde.lying claims lISRrted .. .tO ddmnine ",heth(, U>ow claims fall within tilt $Cope of the arbitration clause."" Indeed, as u~ressed by tht court in f:x partll Cates, "the 4WJ'Itiol (fW$tion is rMt.ther t~ ami/ration daw.. in

~uthoritiu wIlich

615 So.2d 311 (Ala. (966) .. "M

Finally, in F.x part~ Isbftf, tht court again rt(tftnctd Ex parl, CalfS. emphasiling tht fact that "1,,11l 01 tht dt(mdants p•.,1icl"",ted in a mutual busillUl urangetmnt, the purpose 01 ",hich

Wil$

to !ell mobile homes .....

lhat COIItrad applies /0 the/pluin· tiff's! claims.... The quos\ion rt .... ,.... howt\'t •• ,,-hethe. F.x fNlr/' SlripiitIg

.epresents a lOIidification of the court's position away (rom F.x par le Cal~ ("nd adherellU to (e"""l authorities). or is mer(ly tilt lat~st snapshot oIlhe court's Auctuating stance on thi, iuue. In that rega.d, thi, artick i. hardly a definit;,,! Slllte· ment of the Alabama Sup.em( Court's pOsition on tilt: non · signatory iss~. but mo!rtly iM'I attempt to 100 and \kfine its struggle in thai ugard. Conelu.ion At first blush. the Alabama Supreme Court', dtcisions on the i..... of the ngn.,ignaIOr)"s right to romptl arbil .. tion ap!lu•• to have fotloIO-ed no dn. ly disctmible Or p.ediclllble "",tlem. Upon c\ou-. anai)'lis,llowevotr, the case.\ may sUii!esl an increasing acknowledgment of federal ~rinci~les which woul~ WJor 1M oon·signatory's right to com~1 arbitrition, by focusi"ll more on the implic.llttd agency rtlatioruhips and claims auerled than on the f\OJTOW ~ of tht unde.ty· i"ll controct. Under the ~nl authorities, agmcy and t'Quj· tabIt estOppel principles will gtn...11y apply to f<WOl. ubit ..· tion ",hert a plainti" is involdng identical claims ;against joinl dd(n(\ants and procttding on II theory that om is the ~nt for JlUI'\IOHS of il.o 1I11tll'tions against all. If a t.ndency 10 faV\l. the f.d.ral view prevails, then something Ius than the precise arbitration provision from &: par/Q Catu rtl.lY suffi«- in lilt fulur( to anow a oon·signatory to involu an ubit .. tion agrf(ment. As the court obstrml in Koullas ... Rarrueg. 1996 \\1. 596900 (Ala., Oct. 18. 1996). "Iiln lhe evoent of iM'IalTlbiauity or un«rtainty eMr the awlic· ability 01 "" arbitration cbuse, (edenl policy dictatn thai il ~ moNed in b.vo. ofarbit.. tion ... (ede..1law favors Irbit.. tion wtl('( a """..,,,,,bk inte'1'.eUotion of the arbit..tion ag.f(. ment would cow. the dilopUt .... ENONOTES

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.... _ 0 . ' , .... _ _ 0..... _ 0 . _ ........

... Prooiding!ht lacesl information on!ht practice ~ law 1OOay, !his ASB brochure is !ht resuh of frequeru inqIUries tmd requests from !he public. Up:fat.ed ~ inc:Iude (I descriprion ~ !he tmious roles tmd responsibilities ~ being (I lawyer. how to prepare for /00, school, admission swtisrics, rt'qIIirements for admission to !he AlalxnI1(l Suue Bnr, tmd owommiries in !he law 1OOay. This exrelletu brochure exmnines!he opporrunilies tmd dwlengeJ of a career ill rhe law alld is ajJfnUPriate for lCie in civic, school or OM lawrelated eaucalion presematioru.

Alabama State Bar Publications Order Form lhe Alab;!m~ Slale Sa, is pleased 10 m.lle ~v~il~ble 10 ind,vidual a1!orneys. firms and local boI, a~ial """. at cmt ooly. a ~i~ oj b«xhor... on a va,ie!)' 01 1l'3.11IOpICS of inl..,. ...1 10 lhe general publiC. Below is a currenl li'>!ing of public infonnati<>n brochurl."l, available from the Alab.""a SIdle Ba, for diSlJibulion by local b;!, ~ssociahoos. under established guidelines.

Publications Law As A Career

$ 10.00 per 100

Qty. _ _ • _ _ __

... OJ)pOrtunit ies and challenges 01 a law Caree, Iociay.

l.awyers and legal Fees . .. J

$10.00 per 100 Qly. _ _ • _ _ __ lummary of b.osi~ information on common 1t'S"1 queslions aoo procedures for the ~nera l public

Last Will & Testament $ 10.00 per 100 ... covers aspeclS of escate planning and !he importaJlC(> of hav ing a ""ill

Qty. _ _ • _ _ __

$10.00 per 100

Qly. _ _ • _ _ __

l egal Aspects of Divorce ... off~ opIioos and choices involved in d,,,,,,,,:,,

$10.00 per 100 Qly. - - • "Tce-... oul1ines important consideration. and provides advice 00 financial maners affecting the individu~1 or family

Consumer Finances or "'Buying on Time " Mediation ... AnolherMelhod (or Newlving Oisputes

$10.00 per 100

Qty. _ _ • _ _ _ __

... prOV ldes an overvIew of the mediation IlfOCl'SS on question.and.answe, form Acrylic Brochure Stand $5.00 each Qty. _ _ ' ::::_ _ __ .. . ind'vid,,~1 stand imprinted with individual. firm or ba, association name for u,;e at distribution points. Olle SI,md per brochu,,,, is recommended. to imp, int on st.nd: _ _ _ _ _ _ _ _ _ _ _ __

N._

Shipping & HandlingS 5.00 TOTAL$ _ _ __ Plea,;e 'emit CH£C~ OR MONEY ORDER M..-\DE p.... r.... BLE TO THE ....I.ABMlA. STATE BAR for the amount listed on ti>e TOTAL line and foIward il with this order form to, Susan H. And"", D,recIOI' oiCommunicahons Alabama State 8ar. ro. Box 671. Nlonlgoll1l''Y. AL 36 101, (134l269·1 SIS

CLE

OPPORTUNITIES

The following in·slale programs haw beer! upprovW for credit btl the AJaboma Mandatory CLE Commission. lIowever. informa· lion is awi/able fr« of charg<! 011 wer 4.500 appro.oed programs 7Ulliw",;ide identified by location dale Qr sf)«iailll area. Contacllhe MCLE Commission ofTiQ? at (334) 269·1515, or 1-800-354-6/54, ami a complere CLE rulmdar u:ill be mailed 10 gOU_

...

JULY

13-17

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INSURMCE lAW

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Conferern:e Ctnter Auburn Uniwrsity School of For~'try eLE credit<;, 12.0 Cost: $295

(334) 844·1042 10-12 TilE MEDIAT ION PROCESS & SKILLS OF

CONFLICT RESOLtrflON Birmingham Mediation Corporation CLE credih: 22.7 Cost: $65() (800) 237·3476

BASIC PRORATE PROCEDURES

AND PRACTICE IN ALABA111A

Birmingham Ramada Inn 0; Suilt.! Nati(lfllli Busin.... Centor. Inc. ell': credits: 8.0 Cost $159 (7151835-8525

AUGUST

"Rt.'TURN·TO-WOfiK ISSUES IN

WORKERS' CO,\l PENSATION

THE INTELLECTUAL PROPERTY INSTITUTE FOR CORPORATE COUNSEL

Chicago Business Development Associates elf': credits, 11.5 Cost, 5995 (30 L) 565·2299

•

WORKSII OP fOR STATE TWOYEAR COLU:CE AD.\lINISTRATORS ON TIlE

ALABAMA fAIR DI SMISSAL ACT Montgomery Attom'1' C.""ral'. Office eLE credits: 6.0

(205) 242·7300

Birmingham

Lorman BusineM Center. Inc. CLE credits: 6.0 Cost: S165 (7151833·3940 INTRODUCTORY CONSTR UCTION ARBIT RATOR TRAINING WORKSHOPS Birmingham

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Orang_ Beach

Perdido Beach 110tel Lorman Businus Cenler, Inc. e lf: credits: 6.0 Cost: $65() 833-3940

Letter to the Editor Please accept th iS tener as an apology 10 bolh you and th@entire membership Of th@A1abamaStat@Barforthe negative publiCity my actions have brought upon the bar arising out 01 my failule to timely fi le Income lax leturns. I Sincerely apologize, I would further unequivoca lly state that I had no intent of dOing anyth ing wh ich would further demgrate the lawyms of th,s aSSOCiation In Ihe eyes of the general public. Thomas R. McAlpine. Mobile. Al<!bama

Notices In the Supreme Court of Alabama IT IS HEREBY ORDeRED !hal Rule 28t11.

Alabafn;j

RulH 01 OtscIphnary Procedure. be, and IS, emended 10

read as follows" 'a) Prohibition 01 PracllCe . A lawyer who has been dIsbarred by consent or aher heaung. or who 1\85 been suspended for more than 90 days. or who has been pla<:ed on disabIli ty inaC\W8 stalus pUfSuanllO Rule 27 of

these Rules. or who ""5 voIunw rlly $urrendered hIS or her locanse, may no1 resume the practice of law unlll rein-

stated by order of tile'

~ry

Board'

IT IS fURTHER ORDERED thalth" amendment be elf&e1fVl1 August !, 1997 Hooper. C.J., and Maddox. Almon, Shores. Houston, KeMtldv. Cool;, Buus, and SM. JJ .. concur WHEREAS, the Board of CommIssIoners of the Alabama SWle Ba r has recommended an amendmenllo Ru le

151b). Alabama Rules of DISCiplinary Procedure; and WHEREAS, the Court has consKlefed the Board's proposed amendment:

IT IS THEREFORE ORDERED thaI Rule 15(b), Alabama Rules of DISCIplinary Procedure. be arn&nded to read as follows: "(1:11 Ofhcial Duty Immun lty_ M embers of the fol lowing shall be Immune from $U'! for any oondllCt In the course of the" o!loeial duties "(I)

!he Execulrve Commillee 01 the Al3ba~ Stale Bat,

" (2) the Di$C,phnary Comm,SSIOIl;

" (3)!he D,sc,phnary Board; "(41 the General Counsel and the stal! of Ihe OHow of the Gener81 Counsel;

"(51 loca l g"e~ance comm,lIees and any eXOCUIIVe comm lnee 0< mem ber of a

w i ba r assoc"'tlon wh ile sarv路

IIlg as a pan of the local grievallCtl proces.s; and

"(61 a Bat Comml$sooner wtlile panlQPfltong on the g"evlnce procedure " In

adcitton. any lona!'I(:IB1 institut oon reporting an ova<drafl of a lawyer's !rus! accounl pursuant 10 lhe pr~

soons of Aule 1 ISle) of the Alabama Aules

of PmfeSSlQnll1 COr'Id<JCI shall be ,mmune from sua lor any oond<JCt ,n

the course 01 its ofllC",1 dut"s In Complying Wl!h Aule 1.15," IT IS FURTHER OADERED that this lmendment be effective August I, 1997, Hooper, C.J " end Madciox, Almon. Sho<H, Houston, Kennedy. Cook. Buns, and

See. JJ .. concur,

WHEREAS. !he Board of Bar Comm,SSione<S 01 the Alabama Stale Bar has recommended 10 this Coun that Aule 1,15 of the Alabama Rules 01 Professoonal Conduct be amended; and WH EREAS. the Coun has considered the recommended amendment and deems that amendment appropriate; IT IS, THEREFORE, ORDERED that Rule 1 15, Alabama Rules of Professoonal Conduct be amended to read In accordance With the appendIX anached heretO IT IS FURTHER ORDERED that thiS .mendment shall be elfec1rve August 1. 1997 Hooper, C.J., and Maddox. Almon. Shores, Houston. Kennedy, Cook, Buns and

See, JJ.. concur

Appendix

Rule 1.15 SAF EKEEPING PROPERTY A lawyer shall hold the property of clients or Ihird persons that IS in Ihe lawyer's POSseSSIon in conn&etiOl'1 With a representation separate 110m the lawyer's own property. Funds shall be ~ept in a separate account mainta ined in Ihe Slate where lhe lawyer's office is situated. or elsewhere w,1il Ihe consenl of the client or thlld person. No personal funds of a lawyer shall ever be deposiled in such a trust account. except (11 unearned altorney fees Ihat are being held unlll eamed. and (21 funds sufficient to cover rnaintenanC(l fees. such as servIce charges. on Ihe account Interest. if any, on lunds, less fees charged to the account, other than overdrafl and returned ilem charges, shall belong 10 Ihe client or Ihlrd person, except as provIded in Rule 1.1 5(gl, and Ihe lawyer shall have no righl or claim 10 the inleres\. Olher property shall be identIfied as such and appropriately safeguarded. Complete records of such account funds and Olher property shall be ~ept

by the lawyer and shall be preserved for six (6) years alter termination of tile representallOn .

A lawyer shall designate all such !rust acco<.rms, whether general or specific, as well as depoSIt shps and all checks drawn thereon. as !'!IIher an "Attorney Trust Account." an • Attorney Escrow Account.· or an "Attorney FidUCIary Account." A lawyer shall designate all business accounts, as well as other depos't shps and all ch&eks drawn Ihereon. as a "BUSiness Account." a "ProfeSSIonal Account," an "Office Account." a "General Account.· a ·Payroll Account,· or a

-Regu~r

Account." However, nOthing in this Rufe

shall prohIbit a lawyer from using aoy additIonal descoption or designatIon for a specihc business or trust account including, for e><ample, fiduciary acco<.rnts maIntained by the lawyer as ex&eutor, guardian, trustee, r&eeiver, or agent or in any otller fiduciary capacIty. (bl Upon recelV10Q funds or Olher property In which a cltent or third person has an interest from a source oliler Ihan Ihe client or the Ihord person, a lawyer shall promptly nolify the client or third person. Except as stated in thiS Rule

or olherw,se perm'tted by law or by agreement WIth tile dient a lawyer shall promptly deliver to the

chent or third person any funds or other property that the clienl or Ihlrd person is entItled to receive and, upon request by the client ~C)

third person, shall promptly render a full accounting regardIng thai property.

When In the course of representation a lawyer 'S io possession of property in which both the lawyer and

another person claim imerests, the property shall be kept separate by the lawyer until there is an accounting and a severance 01 their interests. 1/ a dispute allses concerning their respectill<l interests, the portIOn in dis· pute shall be kept separate by the lawyer until the dIspute is resolved Id) A lawyer shall not make d,sbursements of a Client's funds lrom separate accounts contain ing the funds of more than one chent unless the chent's funds are colle<:ted funds; prOVIded, however, that if a lawyer has a reasonable and prudent befief that a depoSIt of an instrument payable at or through a ban~ representing the cli ent's funds will be collected promptly, then the lawyer may, at the lawye(s

own risk,

disburse unCollected

cl ient's funds. 1/ collect ion does not occur, then Ihe lawyer shall, as soon as practical. but in no event more than five 15) working days after notice of nonco/lection, repface the lul">ds in the separate account. (e) A lawyer shall request that the finanClalmstilUtion where the lawyer maintains a trust account fife a report to the Olflce of General Counsel of the Alabama State Bar in every instance where a properly payable ,tern or order to pay IS presented against a lawyer's trust account with InsufloCtent funds to pay the item or order when presented and either (1) the 'tern or payment order IS returned because there are insufficient lunds in the account to pay the Item or order or, (2) if the request is honored by the financial instituboo, any overdraft created thereby is not paid within 3 business days of the date the financia l ,nSll\ution sends noul~

~--

calJOfl of the overdraft to the Iawver. The report of the hnaociallnstitulJOfl shall tonteln ttle same InformallOll. or a copy of that .,formatlOn. lorwarded to the lawye< whO presented the

lu~m

or order

A lawyer shall ente, IntO an agr&emeflt with th9 flO/llOCO&1 instltUIIOll that holds the IaWVflr'S trust account purSlJant to whdl the finaOCl8I,nstltut.an agrees to Ille the report requlfed by th,s Rute. Every lawyer shall have the duty 10 assure that his or her trust 8Ccounts maIntaIned wIth a ' ,naoc..,1 inst,tutIOn In Alabama are pursuant to slJCh an II(Ireement. This duty belongs to the lawyer and not to the financial instltullon. The liling of a report wIth the Offrca 01 General Counsel purSUilnt to this parll(lraph shall conS\lMe a prOPer baSIS for an invesugatlOn by the Olfice 01 Ganeral Cou<1sel of the lawyar who IS the subte<;t of the report. pUrsuent to the Alabama Rules of Orserplrnaty Procedure. Nothmg in this Rule shall preelu<le- a IIIl8IICiaI inStrtutlOO from chargIng a lawyer or a law

'Km a lee for pror:lucrng the report and malmaming the r800fds JeqUlfed by this Rule. Every lirNyer and law film malntelning a truSt account In Alabama shall hereby be conclUSIVely deemed to have consented to the reportIng and pror:luctlOn requlfemen\$ mandated by th,s Rule and shall hold harmless the lrnanclal InSlltut.an for lIS comphanee WIth the aloresa ld reportIng and production requllements. Neither the II(Ireement wllh the 'inanclallnstitutron nor the reporting or productIOn of re«>rds by a lrnanclllilnstltutron made pursuant 10 this Rule shell be deemed to create in the fIO/llnc..,lln",tutron a duty to a~ereise a stand!lrd of care or a COIl\l8CI WIth tllird parties tha[ may sustaIn a loss as 8 resll~ Of a lawyer's overdrawrng 8 trust accounl

A 1aW\'8f $hall not fa.1 10 produc. any of the re«>rds reqwed to be malnta,ned by these Rules at the request 01 the Offrca of General Counsel. the OiscrPhO/ilry CommISSIOn. or the OisaphO/ilry Board. ThIs obhgation shall be in &ddltKlll to. and not in heu Of. any Other requi rements of the Aules of ProfessIOnal Conduct or Aules of Discipl Inary Procedure lor lhe productIOn 01 documents and evidence. If) A lawyer.

e~cePI

a lawyer not engaged in actIve practice pursuent to Alabama Code 1975. § 34-3·17 end

lB. shall maintaIn a separate &Ccount [0

I\okj

funds of a dent If a lawyer does no[ hold funds lor a cl,ent.

tlien he ()( she shall gMI wnllllfl notrca to the S&crel&ry of the Alabama State Bar that Ihe Iawyar Wlif nol malnt_ such an account A tawyef must so advrse the Secfelary 01 the Alabama State &rr with,n

si~

(6)

months of admlSSron to practICe or of a return to actIVe practice. A lawyer who lias pr9VlOUSly given the notICe r&qUlred by thIS paragraph sh&1I

revo~e

thet notIce Immedra[ely upon establ-shlng a separate account

to hold the funds of a client by glVlng wrillen notlC9 of revocatron to the S&Cretary of the Alabama Sta[e Ba r. (II) Unless a lawyer sha ll have gIven the notice spe<: ,lred In Aule 1 15(h). a lawyer shltll hold [he funds of a chent or of a third person thaI lire norYllNI In amount or that the lawyer expecl S to be held for II short period Nl one or: mo<e Interest-be.lrrrOQ dePOSIt accounts m4lnl&lr.ed

a bank. savrngs bank. savings and loan asso-

Cl/ltlOO. or credit UNOll. whose deposits are Insured by an aoencv of the federal govemment. A lawyer shelf use the fC(;(lO)nt only for the purpose of holding funds of cll9nts or Ihlfd per-sons thltl are nomlO/ilI in amount I)(

WI! the lirNyer e>:peCIS to be held in ttle account fl)( a short penod. The account shall be malntamed

under a Wllllen agre-ament WIth the dePOSItory that prOVIdes, among other thIngs. that the depoSItory III WIll

not permit the lawyer to racelve any interest.

12~

w il l ramlt in[erest. less fees charged to the account lother

tllan overdraft and reMned Item charges). a[ least quarterly to the Alabama Law FoundatIon or the Alabam4 Civr! JUStICe FoundatlOfl. as [he lawyer shaa designate. (3) WIll transmIt WIth each reminance a Slatement reflectIng the name In which the accoun[ IS mallltarned and [he amount 01 Interest re<Tllned. WIth a copy to the

Iawver. and (4) WIll prOVIde inlormalJOn to the Alabama Law Foundatron or the Alabama CIVIl JUStICe

FoundatIOn. as approprrate. as to the rate or rates 01 Interest on the iICCOunt

!h) A lawyer. or a law I"m on behalf of I\S lawyers as d,sclosed in the notIce. may gIve w"tten notIce to

the Secretary of the Alabama State Bar that the lawyer does not intend to meintain the interest-ooanng

account otherwise required by Aule 1.15(9). ThIS notice must be Given within six (6) months of the

lawyer 's admiss ion to practice or rB lUrn to active practice, and may later be given only <.luring the period between Apr il 1 and June 1 of each yea r, to be effective as of June 1. The notice shal l remain in eVe)::! vntil revoked or changed by the lawyer, or by a law firm on behalf of its lawyers. Notice gn/en by

a)awye~

or law fi rm in compliance with prior DR 9-102IDI(3) to the Executive Director of the Alabama Stata Bar thallhe lawyer or law firm opted not to maIntaIn the interest-beanng account required by DfI-9-102IDI(21 sha ll remain effectIve without annual repetition. 10) All Inte rest trllnsminEm to and receivEm by the Alabama Law Foundation pursuant to Rule 1.15(g) shall be

d,stributEm by It for one or more of the following purposes: to provide legal aid to the POOl: to provide law student klans: to provide for the administration of lustice: to provide Iaw路re latEm educational programs to the public: to help ma intain public law

li b<a~es:

to help maintain a client security fund: to help maintain an inquiry

t~l>unal;

and

for such other programs for the benefit of the public as the Supreme Court 01 the State Of Alabama specifically approves from time to time.

ijl Al l interest transmitted to and re<:eivEm by the Alabama C;vil Justice Foundation pursuant to Rule 1.15(g1 shall be distnbutEm by It for one or more of the following purposes: To provide financial assistance to organizations or groups providing aid or assistanca to; undarprivileged children: traumat.cally Injured ch ildren

or adults:

the needy: handicapped children or adults: o r drug and alcohol rehabihtation programs. To be used in SUCh mher programs for the benelit of the public

as the Supreme Court of Ihe State of

Alabama specifically approves from bme !O time. (~I A laWVer sha ll

not fail to produce. at the request of the Office of General Counsel. the Disciplinary

Commission or the Disciplinary Board. any of the records required to be maintained by these Rules Tllis obligation shall be 10 addition to. and not in lieu of. any other requirements of Ihe Rules 0 1

ProleJsioo~r

Conduct or Rules of Disclphnary ProcEmu re for the production of documents and evidence

COMMENT TO RULE 1.15 AS AMENDED EFFECTIVE JULY 1. 1997. In addit ion to making styliSlic changes. the amendment added Ihe second paragraph in section la ~ added section (el and section (k). It also atlded a senlence 10 the fllst paragraph of section la\ to sat

conditions under which a laWVer can clePOSIt personal funds into a trust <KX:Ount.

6Ji. the I

CLASSIFIED NOTICES 'IN

R ATES: .... mb .,..: TWO. r~~ listings 01 SO words Of less pel bar membef per calendar year EXCEPT lOf "positioo

anted"

pos,toon offe<ed hstlngs - $35 per insertion of 50 words or less, $.SO per additlooal word,

Non.m ...... l'S ~ $35 per insertoon 01 SO words or less. $.SO per additional word. ClasSIfied copy end payment rrust be :ee&fved accordIng 10 the rollowing publishing SChedule: July ' 97 I. .... _ deadline May 15, 1997: Set'tember 9 7 ' . .ue - deadline July IS, 1997. No deadline exreosions will be made.

Send classified copy and payment , payable to TIle Alabama Ls"')'8t". \0: Alabama La~ Clltssifieds c/o Rita Gray P.O.

Box 4156. MontgomElfy,A.tabama36101 .

SERVICES

F....-ding lor I'OU and your dierJL" Broo:Ii<QI •• e He WORKERS' COMPENSATlOH PRE· MIUM DIsPUTES: Con1aod J. Layne

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"',.

FORENSIC AUDIO: Aiodiol"'P" nostora· 1ion _ cIriication bot cototifoec:t III.Idio

"iIJII_. WrIhouI tItering or damaging your or9nal lape _ reduce tape l;1li:

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'_a! o;oice: digitally 8r11oance

'ecording clarity, Ch'Irly OrdIard 7 13 Oliver Road. Mon\gonlefy. Alabama 36117. Phone (:n.) 272·3338, Visit QUI' web page:

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• PC LAW: North .a.m.nca'a leaclng time billing 1itIo:I-..raing d'wao • . Co.nar!Ity.......-.g ower 11 .000 ..... Iir.... Eroiov lIw ...... ocies 01Il00 ~ (16 or 32 bit) IuIy i,tegoatod ~oduct, Filly IWurld. complete Icoou,u,nlll)'alem inclIding corrIIict CI\aci<I arod a ease management option, AMICUS ATTOR NEY. We also CII1 SI.lppiy electronic data <:Or1\Ier$iQn

f'om most pall'popuIar IO/twa,es, on-

site implementation, CU5\Qmization and l<a;niog, or atlend 000 of 00f schedu~ <:lasses. Call ProBill (800) m-91n. TRAFF IC ACCIDENT RECONSTRUC· TION; Case evaluation p<>rtorrood w;th resp9C! to issues Lec>al testimony, lrduding depositiorl alld trial. Accidonl analysis, soor>e sca~ drawing and evi· deoce evaluation, Reg;stered professional oogi.-. Ted>1Iica1society membe<. Over 20 rears' engi.-ring ~ . Traffi<; accidem in\Ie$liga· lion training. 6ad<ground l!"dudes ted>· nical ar.d communication sklns, adver· sarial expe<iellCe and legal process lamiliarily, Contact John E. Raimard!, PO. 8o>c 6343, Huntsville, A1allama 35824. Phone (205) 837·6341, TRAFFIC ACCIDENT RECONSTRUC· TlON AND EVALUATION OF HIGH· WAY DESIGN: ReconstrUC1ed ove< 3.000 aooidents on highways. $tr"ts, railroads, highway construction zones inYoMng truci<s, vans, cars. pedestri· ans, fafm implements. Computer ani· mations aoo drawings prepared. Over 40 rears' enginee<ing experience. FuR ACTAR oonificalion. John T. Bat(l$, P.E. !oil free 1.1100.. 299·5950, RESEARCH AND INFORMATION SERVICES: Legal research aM writing services, Including memoranda , briels, pleadings aoo other doaJments. Exper! witness r&search. Medical researc/1 and Dusmess inlormation. Amicus Research Group. 3817 5th AI'9nu&, Soolh, Birmingham, Alabama 35222. P!looo (205) 595-9988. No fflPIesenta· too is made thai the quality of the legal services to be perlorrned is grealer than the quality ot Ie{;al services per_ lormed by other Iawye<s. DOCUMENT EXAMINER: Cenified F<>rllnsic Document tlarn;ntH". Chief doCIJroent examiner. Alabama D\lpartmem ot F(I(oosi<; Sciences, retired. American Board ot Forensic Dowmem E.ami""rs. Americal1 Academy of Forensic Sciences, American Society 01 Ouostioood Dowment Exemi""rs. Over 20 years' ""perience in sta,te aoo ledoolI courts in Alabama, lamar Miller, 11420 N. Kandan QriI'9, Suije 206-A, Miami, Florida 33176. In Birmingham, pho<1<I (205) 988-4153, In Miami, pho<1<Il305] 274·44(;9 Fax (305) 596·2618.

aUSIN ESS SALES, MERGERS AND ACQIJ ISITlONS: lr.It \IS ~p your family busl""ss client sell m..ir business in a confidential, fair and honest manner. We specialize in smail companies with 000 to 15 million (!oilers in a...... a1 sales. Contact Rick ScIloonovor lor mom in!ormation. NIIW Soutl1 Capital, Inc" 1702 Catheri"" Court, Suite 1· 0 , Auburn, Alallama 36830. Phone (334) 887·8786; fax (334) 887·2380. DOCU MENT EXAMIN ER: Examinat>on oj questioned doCIJments. Certified !orer.sic hall(tw'iting aOld doCIJmem E. am;ntH". Thirty yea",' experience in aII!orer.sic doCIJmem problems. Formerly, Chie1 Ouostioned Document Analyst, USA Climinal IrM.ISligalion l.aOOratO<ies. Diplomate (cerlilied)· British FSS. Diplomate ("""tified)· ABFDE . Member : ASOOE : IAI , SAFDE : NACDL. ReS<lmB and f6e<:!<J1e V!lO<' request. Hans Maye< Gidion, 21 S Merrymoot DrM!, Augl!Sta, Georgia 30907_ Phone (706) 860·4267. TOXiCOLOGIST: ChemicallO><icoIogist, 25 yea",' IIXperieoce in industry, gov. ernment aOld uniYersity research ar.d leaching. Sampling aoo expert witnoS$. OUI, prodllclliability, SOT and Act member. Dr. Richard L. Lipsey. P!looo (904)398·2168. HIGHWAY SAFETY AND TRAFFIC ENGINEER ING: ConstrUC11or1 work zones, roa<hiay hazarcls. roadside haz· ards, railroad \!lade crossings, accident reconslruclion. dr.... rea.ction, traHi<; r::on!fQIs and engiroeering salety stan· dards. GE loI1r, PE, 8o>c 12339, Charleston, South Cafofina 29422· 2339. Voice (803) 795·72189. SECURITY NEGLIGENCE: Special expertise in premise tiability. SOOJrity training and security prooedu.res. Authored tour security t1ll<tbook$, Thirty years' comb;ned 1ll<perience in security alld law entorCllmem. Colllacl Ron Vause, 1·800·726.(1191 . MEDICAL RECORDS REVIEW: RN. with litigation and 18 yea",' experience, wiU review, analyze ar.d summarize medlcaI records Major hospital experi. ence includes lOOensiw pediatrics. as well as neums<lloerr and adu~ OII"",al surOllf)'. WOI evaluate the slrengt~ and _aknesses ol your case. Reasonable hourty ra!(l$. P!lone (770) 977·8510.

AnOR NEY JOBS: Harvard Law Schoof caHs OUr publicatOO, "Probably the mosl comprehensiw source ot nationwide and intllrnational job open· ings roceived by our office and shoukl be tl1e starting pOint 01 any job searc/1 by lawya<s looking to change jobs_" Each monthly issue contains 500-600 aJffllnl (publiclpr;"'a!8 sect(l() jobs_ 545·3 moot~_ $75·6 mooths. Contact: LegaIE~mllntAepon. 1010 V\lrmoot Avenue NW, Ste_ 40S·A8, Washington, DC 20005. (800) 296· 9611 ). VisalMCJAMEX_

POSITIONS OFFERED ATTOf'INEY POSITlON; Small oIfiw pmctiIiorMK to reptI)S&I'II QOJ1.<>f_ fO"Iance <X:II"JlWIY reg.ardng tOO on, oosIi cation of IorI)ign montI)I ;..:v ''''' lIS and eX9OJtion upon such in tOO SlaI<! 01 AJabama. Reply 10 Managing Partner, !lox 2524, BaIa Cyr'M',od, I'emsyIv;ria

H••" TAXICORPORATElESTATE : Medium sized, eslablts.hed law fum on the GuH Coast seeks anorney 1<1 assist in well deYeloped practice areas ot estate/p<Obate, lIDe, corporate transactions. Partnership, anractive salaryibeoolits pad<.agII, r<>location bonus, All appIica· tions are kept irl strict conJidence. Seod ","",me to Managing Part""" P_O. 8o>c 2168, Mobile, Alabama 36652, ATTORNEY POSITION' Birmingham law firm, specializing in collections and banl<.ruplcy. seeks an associate with a minimum ol one yea(s experience. Compe1iIivfl salary and be""~t". Send fesUmll to P_O_ 8o>c 59708 , Birmingham , Alatlama 35259. ATTORNEY POSITION : Laleral associ· ate _ in Birmingham branch of nationally recognized I~iga.lion firm specializing in products liab;tity OOfertse_ Two to thr" years' ~tiga. t ion ""peri"""" (prlllernb!y prodlIcts liabili· ty) . outstanding academics (top 15 per. cent), aoo _;or Wfrnng skills r"'luired. Please fax rBS<Jme to (205) 326-6786 (I( mail 1<1 K. Daugherty, P.O. 8o>c 1873,0..0.000, Florida 32802· 1873.

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, LAW OFFICE: For 18 ygn Iox:Iiled 11 nl I·Ist A........ Noolh. 6O'mingharR. Alabama. (East l;oke AlN). s...n - . lWo baths. e. ' m oIfioI plan In aicIef 1'iouoH. _ Inance. (S9S,(Xl(l ~. $9.500 doom. $ f*<*il. 30 'fNIS. pIII,....,.m $687.96). cal ~ HatriI (205) 878~'39 Of 878-81«.

POSITION WANTED • ATTOfINEY

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with PocMti&iq In contrlQdranIncI, aoquisiIiont. SEC fWo;I;, .. oIaI ...., ~I - . - . goMfMWOtal retalionl. anIitrust c:otnpII_ . and ~~ . SMkI pc:Uion with .... firm "" buJlnoKL Admirtod in Alalwnil and M;~. PleilS4l reply

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. n.. Urwbook &dIange. Ltd. I;ufs. _

and """ ', . . . . major lawbooI< seta. C•• I·8O(}.422-6686. Of lax 1·903-686· 309EI. Mas,&rCard. Vita ilI'Id Amarie;oon Express aocepted. Cataklgues iss\>od In print and online _~oom,

to A.J. car•. 3800 Colonnade patl(way. Suite 490.

8i<mlnghliim. Alabama 35243.

• LAWBOOK$: w...m S. HeIn 4 Co., Inc .. ......,;.,g ""1IogaI community lot <Mil' 70 We buy, HI. appraiH ....... books. Send watillists II>: Iu (71B) 883-S595 Of phoonoI II·

• ATIORNEY POSITION:'AIIobImIo tuli¥e witI'i Georgetown law cIegrM..-.d 10 years>~ expeoieoooe. ~ In iIaI matten.. ...... 10 NIoQte doom South. Open 10 .. ~..., ....... 58IIirqs. Oil ...... ""., ... ,t.roI compIInce. ~ ard ~tion. H 1nIerested. please cal Dun Mori«M. Phone (202) Sfl6.29.t8.'

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LAW8OOKS: s.v. 50 Pf"O"III Oil ycu _ . C.. NPoNoI l8w Resource. Ametica'J IatQ8S1 Iawbool<s deale<. HuQe inYen,aries. LiiW8$' prbr,. EXQlIIent quality. Satistection guar. .nteed. Call us to sell )'00' YN'i8eded books. Neiid slieMng? WI...n __, boranCI nlnlt, 11l1li and wood shelving al dIIcounl p<Ion. Flee qootH. {I ·8O().279-7799}. N a~ l8w

FOR SALE

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• OFFICE SPACE: GalIef .. affNI. Sur*tI oIfioo spaao with toCOI5IlO 1irsI.Qilss coo>!eo .. Q room ard COtM'OOiI areas. eepor.. Iax.Iitnry. 1Utct.i........ rod tr.. pa1<Ing ...... ..... E,cII, ~ oppoo1unity lot I0Io practiilioo ... wtoowants _oitiH and ~ willi .kA'*1s In spoocMIQcI~.

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Preparation of Researcn Memos State & Federal Case Law Searches State & Federal Statute Searches State & Federal Regulation Searches WESTLAW Searches legislative Histories Cite Checkif1GlShepardizing OIAlOGfMEOUNE Searches Newspaper Searches Internet Searches Photocopy Service

Alabama Lav.yers Research Service University of Alabama School of Law Post Office Box 870383 Tuscaloosa, Alabama 35487-G383 Phone: (205) 348-0300 Fax: (205) 348-1112 E-ma~: ALAS OLAW.UA.EOU

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