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Battle v. Alph Cemical And Paper Co.5/26/2000
Margaret S. Battle appeals from a summary judgment entered by the Circuit Court of Madison County on her breach-of-contract claim against Alpha Chemical and Paper Company ("Alpha"). The judgment was based upon her failure to list that claim as an "asset" in pending bankruptcy proceedings and on a lack of "standing." We reverse and remand.
On April 24, 1998, Battle filed this civil action in the Madison County District Court, alleging that she and Alpha had entered into a contract whereby Alpha had agreed to clean and store her property and that Alpha had subsequently breached that agreement by failing to satisfactorily perform cleaning services she said it had promised to perform. She sought damages of $3,059, plus prejudgment interest, attorney fees, and costs. Battle's action was assigned case number DV- 98-691.
On June 4, 1998, during the pendency of the district court proceedings, Battle filed a petition for relief under Chapter Seven of the United States Bankruptcy Code, in the United States Bankruptcy Court for the Northern District of Alabama, Northern Division. Neither Schedule B to that petition, which is labeled "Personal Property," nor Schedule C, which is labeled "Property Claimed as Exempt," lists Battle's claim against Alpha. However, under a section labeled "Suits and Administrative Proceedings" in an attached "Statement of Financial Affairs," Battle listed "DV 98-691" as being a suit to which she was a party within one year immediately preceding the filing of her petition. On July 20, 1998, Battle filed a motion in the bankruptcy court for leave to continue "her civil cases now pending in the Circuit and District Courts of Madison County, Alabama," noting that she was "involved in civil proceedings involving her insurance company and the claim she has filed due to [a house] fire." On that same day, the bankruptcy court judge endorsed a "Granted" stamp on that motion, and the clerk of the bankruptcy court gave notice that that court had entered an order granting Battle's motion to allow her to continue her pending civil actions. On September 30, 1998, Battle was granted a discharge from her debts under 11 U.S.C. ยง 727.
A representative of Alpha responded to Battle's complaint against it by sending a letter to the district court. Later, an attorney appeared on behalf of Alpha. After an ore tenus proceeding, the district court entered a judgment on January 26, 1999, in favor of Battle, awarding her $2,759.04 plus court costs. Alpha timely appealed from that judgment to the circuit court for de novo review.
In the circuit court, Alpha moved for a summary judgment, contending (1) that the doctrine of judicial estoppel applied to bar Battle's claim against it, and (2) that Battle lacked "standing" to assert her claim. In support, Alpha cited the cases of Luna v. Dominion Bank of Middle Tennessee, Inc., 631 So. 2d 197 (Ala. 1993), and Bertrand v. Handley, 646 So. 2d 16 (Ala. 1994), and attached pertinent documents it had obtained from the bankruptcy court. Battle filed a response in opposition. After a hearing, the circuit court entered a judgment in favor of Alpha on the bases of judicial estoppel and lack of "standing," and denied Battle's subsequent postjudgment motion.
Although the judgment was labeled a "dismissal" of Battle's claims, the circuit court entered its judgment after considering papers filed in the bankruptcy court that were supplied to the circuit court by the parties. Because the trial court could not have taken judicial notice of these materials (see Garrett v. Hadden, 495 So. 2d 616, 617 (Ala. 1986)), they constitute "matters outside the pleadings" that were "presented to and not excluded by the court," so that Alpha's mot
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