First Alabama Bank v. Spragins

515 So.2d 962 (Ala. 1987)

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Nature of the Case

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Facts

Marion was formerly president and later chairman of the board of trustees of the First Alabama Bank (D). After settlement of his estate, he had a net trust of $556,881.73 at least 70% of which consisted of stock in D's own holding company. The Spragins (P) family brought suit against D as trustee of a trust created for them under the will of Marion. D was permitted to withdraw as trustee following a jury verdict against it for breach of fiduciary duty and mismanagement. That was later reversed on appeal and remanded with instructions to the trial court that the case should not have been tried by a jury and that no reasonable inferences existed to support a finding of bad faith or willful mismanagement that could justify an award of punitive damages. On remand, the trial judge found for Ps and ordered $685,560 in compensatory damages and $79,224 in interest.