Supreme Court of Alabama

Richard Scrushy v. Wade C. Tucker and the Wendell J. Cook, Sr., Testamentary Trust, John P. Cook

January 28, 20112011 Ala. LEXIS 18

Summary

The court affirmed a $2,876,103,000 judgment against Richard Scrushy in a derivative action brought on behalf of HealthSouth. It held that the allegedly deficient original complaint did not deprive the trial court of subject-matter jurisdiction, that Scrushy could not raise limitations and res judicata defenses for the first time on the second appeal, and that the remaining challenges to compensation forfeiture, insider-trading liability, joinder, business-judgment protection, and evidence admission failed. Justice Murdock concurred in the result but declined to join the court's analysis of the statute-of-limitations and res judicata issues and the compensation-forfeiture issue.