After saying the deal between the City of Guntersville and developers of its City Harbor project “kind of smells,” the U.S. Court of Appeals for the 11th Circuit ruled in their favor in a lawsuit brought by Joel Kennamer.
It was Kennamer’s fourth attempt at suing the City and developer Patrick Lawler over the City Harbor project, which he described as a “fraudulent, corrupt scheme” to deprive him and other Guntersville taxpayers of land dedicated for public use.
He argued that the City violated Alabama Code 94.01 by failing to hold a public referendum on the project. He also questioned the City's $10 sale of an adjacent lot to Lawler for a hotel.
“The defendants, using lies and deceit, acted willfully, and with fraudulent intent, misapplied the law, causing the court to dismiss a perfectly legitimate claim where the property was in use and a transfer was unlawful,” he wrote in his complaint.
After hearing oral arguments in May, the three-judge panel issued a ruling last Tuesday affirming the lower courts’ decision to dismiss Kennamer’s claims.
“The question is whether Mr. Kennamer set out sufficient factual allegations to make his claims plausible. But also relevant to our analysis is that the Alabama Supreme Court rejected some of Mr. Kennamer’s state-law challenges to the 2019 transaction, including a claim that the City’s actions were not authorized by Ala. Code § 35-4-410, which requires a referendum of voters before a municipality alienates public parks.”
The judges disagreed with Kennamer's claim that the Alabama Supreme Court had misapplied 94.01 and said they didn’t have the authority to rule on the state’s interpretations of its own laws. They also said the federal issues Kennamer raised were past the statute of limitations and that the law did not require the City to hold a referendum.
Kennamer could file a petition for panel rehearing or rehearing en banc. He reportedly told The Advertiser Gleam he plans to appeal his case to the U.S. Supreme Court.
In another statement to The Gleam, Guntersville Mayor Leigh Dollar said, “We are pleased that the Eleventh Circuit has affirmed the dismissal of Mr. Kennamer's claims. The City has consistently acted in accordance with the law and in the best interests of Guntersville. This decision allows us to continue focusing on serving our residents and moving our community forward.”
Lawler said, “It’s time to stop looking backward through the courtroom and start looking forward to what is best for the people of Guntersville.”
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