Ex Parte Loma Alta Property Owners Association, Inc. (in Re Carol Mahoney v. Loma Alta Property Owners Association…

Summary

The court held that the appellate standard governing an award of attorney fees under the Alabama Litigation Accountability Act also governs a denial of such fees, with review depending on whether the alleged lack of substantial justification is factual or legal. Applying de novo review to the legal question, the court concluded that the claims against Mahoney were groundless in law because ownership was an essential element and the association alleged that her former husband, not Mahoney, owned the property. The court therefore affirmed the Court of Civil Appeals' judgment requiring further proceedings on Mahoney's fee claim and distinguished the prior decision involving claims that were unsuccessful but not sufficiently frivolous or groundless. Justice Murdock and Justice Woodall dissented, reasoning that the litigation history and Mahoney's conduct supported the circuit court's denial of fees.