McLemore v. Hyundai Motor Manufacturing Alabama, LLC
Alabama Supreme Court
7 So.3d 318 (2008)
The task of Montgomery, Alabama's Industrial Development Board (IDB) (codefendant) was to attract outside businesses by offering them tax breaks and other incentives. IDB targeted Hyundai Motor Manufacturing Alabama, LLC (Hyundai) (codefendant), which needed a free tract of land on which it could build its new plant. IDB entered into option contracts with Price McLemore and other landowners (plaintiffs) to buy their land for a Hyundai industrial park. The contracts included a most-favored-nation (MFN) clause promising each landowner the same $4,500 per-acre that IDB would pay the other landowners. Joy Shelton refused to sign an option contract, so IDB initially left her property outside project boundaries. IDB changed its mind when it learned that railroad tracks had to be laid over Shelton's land in order to service Hyundai's plant. Shelton's property was suddenly indispensable. IDB was willing to pay Shelton much more than $4,500 per acre, but it balked at having to pay the same high price to the other landowners. City, state, and Hyundai officials helped IDB circumvent this problem by working together, without IDB's direct involvement, to arrange Hyundai's purchase of Shelton's land for $12,000 per acre. The city treated this land as an independent parcel rather than as part of IDB's industrial park. McLemore and the other landowners sued IDB and Hyundai for breaching the MFN. The trial court granted summary judgment for IDB and Hyundai, and the landowners appealed to the Supreme Court of Alabama.
Rule of Law
Holding and Reasoning (Stuart, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 725,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.