Busby v. BancorpSouth Bank

Summary

The Alabama Supreme Court granted BancorpSouth Bank’s petition for a writ of mandamus concerning the trial court’s refusal to strike Thomas L. Busby’s jury demand. The court held that the jury-trial waivers in Busby’s guaranty agreements were enforceable under the applicable factors and broadly encompassed his fraud, declaratory, and related claims. The court directed the trial court to vacate its order and grant the Bank’s motion to strike the jury demand.

Holdings

1. The jury-trial waivers in Busby's guaranty agreements were enforceable because they were not buried in a lengthy contract, the parties had equal bargaining power, and Busby knowingly and intelligently waived his jury-trial right.
2. The broad waiver language covering any action in any way connected with the guaranty, related transactions, loan documents, or the debtor-creditor relationship encompassed Busby's fraud, misrepresentation, breach-of-duty, and declaratory claims.
3. The Bank established a clear legal right to have Busby's jury demand stricken, and mandamus was proper.

Questions Presented

1. Whether the contractual jury-trial waivers in Busby's guaranty agreements were enforceable.
2. Whether the broad jury-trial waivers covered Busby's fraud, misrepresentation, breach-of-duty, and declaratory claims arising from or connected with the guaranty agreements.
3. Whether the Bank established a clear legal right to mandamus relief requiring the trial court to strike Busby's jury demand.

Disposition

writ_granted