Hyundai Lawsuit Appealed to High Court
By Mike Linn, Montgomery Advertiser, Ala.
Jan. 16–A city board and Hyundai Motor Co. will ask the Alabama Supreme Court to decide whether they breached a contract with landowners who sold property for the automotive company’s Montgomery plant, an attorney for the board said Monday.
The decision comes days after Montgomery Circuit Court Judge William Shashy declined to dismiss a lawsuit filed by landowners against the city’s Industrial Development Board and Hyundai. The suit alleges the board and Hyundai breached a contract to pay all landowners $4,500 an acre for land now owned by the Korean automotive company.
However, Shashy said in the order that the defendants could appeal immediately to the Alabama Supreme Court.
“I do agree with the judge on this: This is one the Supreme Court needs to rule on immediately,” said Tommy Gallion, who represents the Industrial Development Board. “If we lose, we go to trial. If we don’t, it’s over.”
The lawsuit is one of two filed against the board and Hyundai. The other lawsuit involves more plaintiffs, more land and more defendants, including former Gov. Don Siegelman, the city and the county.
That lawsuit also includes charges of fraud.
Both lawsuits allege defendants participated in a ploy that allowed the state to pay two holdout landowners about three times what the city and county paid other landowners for property now owned by Hyundai.
Frank Hawthorne, who represents the estate of George Earl Russell and Price McLemore in the lawsuit in question, said Shashy made the right decision because not all landowners received the same amount of money for the land as specified in the contract.
Gallion said the defendants couldn’t have breached the contract because they did pay all the landowners the same price — $4,500 an acre.
The state, which paid $12,000 an acre for two holdouts who owned 93 acres, is not bound by the contract with the Industrial Development Board, city and county, Gallion said.
In his order, Shashy noted that the appeal in this case also would affect the other lawsuit.
The case was scheduled to go to trial Feb. 12 but likely will be extended because of the defendants’ decision to appeal to the Alabama Supreme Court, attorneys said.
A trial date for the second case has not been set.
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