Supreme Court of Alabama

Once Upon a Time, LLC v. Chappelle Properties, LLC, and Sara Boehme

May 27, 20162016 Ala. LEXIS 68

Summary

The Court held that the indemnity clause covering injuries or property damage occurring "in, on or about" the leased retail space does not extend to an incident occurring in a separate, vacant retail space that OUAT had not leased. Applying de novo review to the certified legal question, the Court concluded that the phrase was unambiguous in context and that the indemnity agreement could not reasonably be extended to the separate premises. The Court reversed the denial of OUAT's summary-judgment motion and remanded for entry of a consistent order. Justice Murdock, joined by Justice Bryan, dissented, arguing that the phrase was ambiguous, required consideration of factual circumstances, and was not properly reviewable through a Rule 5 permissive appeal.