Supreme Court rules in favor of city

Submitted by Sherry Sullivan
Posted 6/28/08

FAIRHOPE, Ala. — On Friday, June 13, the Alabama Supreme Court ruled in favor of the city of Fairhope in a 1993 lawsuit filed against the city by Baldwin EMC.

The lawsuit challenged the city’s right to provide electricity to customers located …

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Supreme Court rules in favor of city

Posted

FAIRHOPE, Ala. — On Friday, June 13, the Alabama Supreme Court ruled in favor of the city of Fairhope in a 1993 lawsuit filed against the city by Baldwin EMC.

The lawsuit challenged the city’s right to provide electricity to customers located within Fairhope’s corporate limits.

The main focus of the lawsuit was the right to provide electric service to customers living in the Quail Creek Estates subdivision. Baldwin EMC claimed the right to serve these customers based on the Service Territories for Electric Suppliers Act, which the Alabama Legislature approved in 1985. Fairhope opposed Baldwin EMC’s claims based on a long-standing agreement between Baldwin EMC and the city concerning electric service, and also argued that Baldwin EMC’s claims were not proper under the 1985 Act.

In September 2006, a Baldwin County jury reached a verdict in favor of Fairhope following a two-day trial in Baldwin County Circuit Court. After the trial, Judge James Reid ordered Baldwin EMC to pay Fairhope’s legal fees. Baldwin EMC then appealed the case to the Alabama Supreme Court. The Alabama Supreme Court ruled in favor of Fairhope earlier this year, but Baldwin EMC asked that court to review the matter a second time. This latest ruling by the Alabama Supreme Court puts an end to this 15-year old lawsuit between Baldwin EMC and the city of Fairhope. In 2003, the city resolved a similar lawsuit filed by Riviera Utilities.

When asked about the Alabama Supreme Court’s ruling, Fairhope Mayor Tim Kant said, “This is a great victory for the city of Fairhope, and we are pleased that we will be able to continue providing electric service and quality customer service to the residents of Quail Creek Estates.”

He also stated, “Even though Fairhope is regulated by state legislation regarding legal boundaries for electrical service, it is important to Fairhope leaders that the city of Fairhope be able to provide utility services to customers in our city’s jurisdiction.” Judge Reid’s original ruling was upheld, Kant added, stating that EMC will be responsible for all legal fees regarding this lawsuit.

In both lawsuits, Fairhope was represented by the law firm of Hand Arendall LLC, with Caine O’Rear, of Hand Arendall’s Mobile office, acting as the lead lawyer for the city.