LaTonya McCain v. James Sneed and Vernetta Smoot

Rel: October 10, 2025

Notice: This opinion is subject to formal revision before publication in the advance sheets of Southern
Reporter. Readers are requested to notify the Reporter of Decisions, Alabama Appellate Courts,
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SUPREME COURT OF ALABAMA
OCTOBER TERM, 2025-2026

_________________________

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_________________________

LaTonya McCain

v.

James Sneed and Vernetta Smoot

Appeal from Calhoun Circuit Court
(CV-23-900575)

LEWIS, Justice.

LaTonya McCain ("the lessor") appeals from a judgment entered by

the Calhoun Circuit Court ("the trial court") in favor of James Sneed and
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Vernetta Smoot ("the lessees"). We affirm the trial court's judgment in

part, reverse it in part, and remand this cause to the trial court.

Procedural History

On December 20, 2023, the lessor filed a complaint against the

lessees, requesting that the trial court declare the parties' rights to

certain property located in Calhoun County ("the property") and award

her possession of the property and damages for lost profits. On January

22, 2024, the lessees filed an answer and a counterclaim, alleging breach

of contract, unjust enrichment, and promissory fraud. The lessor filed a

reply to the counterclaim on February 15, 2024. After a trial, the trial

court entered a judgment on December 20, 2024, stating:

"This matter came before the Court on the 18th day of
December, 2024[,] with the [lessor] present represented by
Jake Mathews and the [lessees] present represented by
Gerald Sills. This matter was before the Court pursuant to
the Ejectment action filed by the [lessor] and the
Counterclaim filed by the [lessees] alleging Breach of
Contract, Unjust Enrichment and Promissory Fraud.
Following presentation of testimony and evidence, the Court
finds as follows:

"1. A valid lease to purchase contract between the
parties exists.

"2. The [lessees] have complied with the terms of the
lease to purchase contract.

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"3. The [lessor] has a mortgage debt remaining on the
subject property, in the amount of approximately $21,024.57.

"4. Monies are being held by the [lessor] and/or attorney
for [the lessor], as well as the attorney for the [lessees], that
were paid by the [lessees] either directly to the [lessor] or
being held by the [lessees'] attorney, which represent
payments made in accordance with the parties' contract for
the months of November 2023, December 2023, January 2024,
February 2024, and March 2024, as well as a $3,000.00
annual payment made in March 2024, which is held in the
trust account of the [lessees'] attorney.

"Based on the testimony and evidence presented, as well
as the above findings of fact[,] it is hereby ORDERED,
ADJUDGED and DECREED as follows:

"1. All monies being held mentioned in paragraph 4
above should be immediately paid to the [lessor] and the
[lessor] shall immediately pay all of these monies to reduce
the principle of the mortgage on the subject property.

"2. On or before March 1, 2025, the [lessor] shall satisfy
in full the mortgage against the subject property, and any
other liens or encumbrances against the subject property.

"3. On or before March 1, 2025, the [lessor] shall execute
a deed to the [lessees] conveying clear, fee simple title of the
subject property to the [lessees].

"4. The [lessees] shall be responsible for the payment of
the 2024 property taxes associated with the subject property.

"5. All other requests made by the parties, not
specifically addressed herein, are denied."

(Capitalization in original.)

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On January 15, 2025, the lessor filed a postjudgment motion,

requesting the following relief:

"1. Pursuant to Rule 52[, Ala. R. Civ. P.], the [lessor]
requests the Court to amend its Order to state the facts and
conclusions of law for its holding that the [lessees] complied
with the provisions of the Lease-Sale Contract.

"2. To vacate the Court's Order and enter an Order
denying the relief requested by the [lessor] and enter an Order
awarding [the lessor] possession of the property on the
following grounds.

"a. There is insufficient evidence to support
the holding that the [lessees] had complied with
the Lease-Sale Agreement contract in that the
[lessees] were not timely in making the October
and November 2023 payments as defined by the
terms of the Lease-Sale Agreement which states
that in the event the [l]essees fail to pay said rent
as set forth on the date which it is due, failure on
their part to make good said default within twenty
(20) days from the due date thereof will authorize
the [l]essor to terminate and cancel the lease at
her option

"b. There was no evidence that the [lessees]
ever gave written notice to [the lessor] of their
desire to purchase the real property in dispute as
called for in the Lease-Sale Agreement.

"3. To order a new trial on the basis of new evidence.
After trial, the [lessees] produced money orders that show
that the payments for March, April, May, June, July, and
August of 2024, were not timely because they were not made
by the 1st of the month pursuant to the terms of the Lease-
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Sale Agreement. Copies of the referenced money orders are
attached hereto as Exhibit 1. Furthermore, it is unclear from
the $3,000 check drawn on Stubbs, Sills & Fry whether the
[lessees] paid it in March of 2024. Moreover, [lessee] James
Sneed stated at trial that he had called [the lessor] multiple
times in November, 2024, and the [lessor] has pulled phone
records reflecting that no such calls were made.

"4. To alter or amend its Order changing the deadline
for the [lessor] to pay off the mortgage from March, 2025 to
August, 2025.

"5. To alter and or amend its Order to address the issue
of insurance. The insurance is paid through escrow by the
mortgage company."

The trial court denied that motion on January 16, 2025. The lessor filed

her notice of appeal to this court on February 25, 2025.

The Lease

The "Lease with Option to Purchase" ("the lease") provides:

"THIS LEASE, made and entered into on this the 1st
day of October, 2016, by and between LaTonya McCain, a
single woman, hereinafter called 'Lessor', and James Sneed
and Vernetta Smoot, hereinafter called 'Lessees.'

"WITNESSETH:

"That Lessor does hereby lease and rent unto the
Lessees [the] property ….

"….

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"for use as a residence during the term of ninety-six (96)
months, beginning on the 1st day of October, 2016, and ending
on the 30th day of September, 2024.

"IN CONSIDERATION WHEREOF, the Lessees agree
to pay the Lessor, on the first day of each month of said term,
in advance, as rent for said premises herein leased the sum of
Eight Hundred Twenty-Five Dollars ($825.00) per month,
plus additional payments on March of each year as set out
herein. Lessees further agree to make an initial payment to
Lessor of $10,800.00 which shall apply toward purchase.

"THIS LEASE is made on the following Terms,
Conditions and Covenants:

"1. The Lessor covenants to keep the Lessees in
possession of said premises during said term.

"2. Nothing herein shall be construed as a warranty that
premises are in good condition or are fit or suitable for the use
and purpose for which they are rented or leased. The Lessor
has made no representations or promises with respect to said
premises except as herein expressly set forth.

"3. The Lessees will, upon the expiration or termination
of this lease, surrender the quiet and peaceful possession of
said premises in like good order as the same were in at the
commencement of said term, natural wear and tear excepted.

"4. The Lessees will indemnify, protect and save
harmless the Lessor herein from any loss, cost, damage or
expense caused by injury to persons or property while in, on
or about said premises herein described.

"5. In the event the Lessees fail to pay said rent as set
forth herein on the date which it is due, failure on their part
to make good said default within twenty (20) days from the
due date thereof will authorize the Lessor to terminate and
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cancel this lease at her option. Lessees further agree to pay a
late payment fee of ten (10%) percent of the payment received
by Lessor which is more than six (6) days past its due date.

"6. It is understood and agreed that Lessor currently has
a mortgage on subject property and Lessor agrees to keep the
said mortgage payments current to include any tax and
hazard insurance escrow during the term of this lease and
Lessees may require Lessor to provide written evidence that
the Lessor's mortgage payments are current. Lessor further
agrees that she will not make any additional mortgages or
other liens against said property.

"7. Lessees further agree that they will not commit any
waste on the property or allow any waste to be committed to
the property and will keep repairs to the property, including,
but not limited to, electrical, plumbing, mechanical, painting,
and lawn maintenance. Any fixtures removed from property
without the expressed written consent of Lessor shall be
immediately replaced with a fixture of equal or greater value.
Lessor shall have the right of entry onto the premises for the
purpose of inspection upon reasonable notice to Lessees.

"8. Lessees have agreed to make a deposit of Ten
Thousand Eight Hundred and No/100 ($10,800.00) Dollars
with Lessor upon the execution of this agreement and further
Lessees agree to pay to Lessor the sum of Three Thousand and
No/100 Dollars ($3,000.00) each March 15th beginning March
15, 2017, which said $3,000.00 payments will be counted as
prepayments in the event Lessees exercise the option to
purchase, along with the $10,800.00 down payment toward a
total purchase price of $114,000.00.

"It is agreed that Lessees may make the $10,800.00
down payment and the $3,000.00 annual payment by form of
a money order made payable to Lessor[]. Lessees may require
Lessor to get a payoff statement from time to time showing
Lessor's mortgage balance. In the event Lessees exercise their
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option to purchase and have made all payments to Lessor as
set out herein, Lessor will be responsible to pay the then
mortgage balance in full assuming full payment by Lessees to
Lessor.

"9. The Lessees agree to make no unlawful or offensive
use of said premises during the term of this lease and any
violation thereof shall authorize the Lessor to terminate and
cancel this lease at her option.

"10. Lessees agree that in the event they should vacate
the premises at any time during the term of this lease or
should they fail to comply with the term set forth herein, all
of their monies and rights thereunder shall immediately cease
and terminate and become null and void. Lessees further
assume the risk of Lessor incurring additional involuntary
liens against subject property.

"11. Lessor shall maintain hazard and fire insurance
insuring said residence. Lessees shall, at Lessees' option,
maintain at Lessees' expense an insurance policy covering the
contents and personal property owned by Lessees. In the
event of a total loss, the insurance proceeds shall pay the
existing mortgage and Lessees receive the balance.

"12. Lessees shall not assign or in any manner transfer
this lease or any estate, interest, or benefit herein, or sublet
said premises or any part or parts thereof. Each and every
transfer or assignment of this lease or any interest therein or
rights and privileges contained herein, shall be null and void,
unless the written consent of the Lessor be first obtained
thereunto.

"13. As part of this lease, and subject to all the terms
and conditions thereof, the Lessor does hereby give and grant
unto the Lessees the option and privilege of purchasing the
leased premises for the full purchase price of One Hundred
Fourteen Thousand and No/100 Dollars ($114,000.00).
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"14. The Lessees shall have the right to exercise this
option of purchase at any time before the expiration of the
term of the lease agreement referred to herein, subject[,]
however, to the following terms and conditions:

"A. That said lease referred to herein shall be
in full force and effect and that the same has not
been canceled or terminated and that the Lessees
are still in possession of said premises under this
Lease.

"B. That Lessees shall have observed and
complied with all the terms, conditions, and
covenants of the lease referred to herein.

C. That the Lessees shall give written notice
to the Lessor at least thirty (30) days prior to the
expiration date of this lease of [their] desire to
exercise this option to purchase.

"D. Lessees agree, in the event of [their]
exercising this option of purchase, that they will
pay all closing costs.

"E. The annual March 15 payments of
$3,000.00 each shall be treated as principal
reductions and will shorten the amortization.

"F. Lessees agree to pay actual property
taxes of mentioned property each year directly to
Lessor for the duration of this agreement.

"In the event the Lessees do not exercise their option to
purchase, or fail to comply with any term set forth herein, the
property shall be returned to the Lessor and all monies paid
hereunder shall be treated as rent for past occupancy which
amounts are hereby agreed to be reasonable, to include the
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$10,800.00 down payment and the annual $3,000.00 principal
reductions. Lessees may make additional prepayments in
addition to scheduled monthly rent and the $3,000.00
payments which will further shorten the amortization period.
The total payback including down payment will be
$114,000.00.

"IN WITNESS WHEREOF, the parties have executed
this Lease with Option to Purchase on the date first above
written."

(Capitalization in original.)

Standard of Review

" 'Because the trial court heard ore tenus
evidence during the bench trial, the ore tenus
standard of review applies. Our ore tenus standard
of review is well settled. " 'When a judge in a
nonjury case hears oral testimony, a judgment
based on findings of fact based on that testimony
will be presumed correct and will not be disturbed
on appeal except for a plain and palpable error.' "
Smith v. Muchia, 854 So. 2d 85, 92 (Ala. 2003)
(quoting Allstate Ins. Co. v. Skelton, 675 So. 2d
377, 379 (Ala. 1996)).

" ' " 'The ore tenus rule is grounded upon
the principle that when the trial court
hears oral testimony it has an
opportunity to evaluate the demeanor
and credibility of witnesses.' Hall v.
Mazzone, 486 So. 2d 408, 410 (Ala.
1986). The rule applies to 'disputed
issues of fact,' whether the dispute is
based entirely upon oral testimony or
upon a combination of oral testimony
and documentary evidence. Born v.
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Clark, 662 So. 2d 669, 672 (Ala. 1995).
The ore tenus standard of review,
succinctly stated, is as follows:

" ' " '[W]here the evidence
has been [presented] ore
tenus, a presumption of
correctness attends the trial
court's conclusion on issues
of fact, and this Court will
not disturb the trial court's
conclusion unless it is
clearly erroneous and
against the great weight of
the evidence, but will affirm
the judgment if, under any
reasonable aspect, it is
supported by credible
evidence.' "

" 'Reed v. Board of Trs. for Alabama State Univ.,
778 So. 2d 791, 795 (Ala. 2000) (quoting Raidt v.
Crane, 342 So. 2d 358, 360 (Ala. 1977)). However,
"that presumption [of correctness] has no
application when the trial court is shown to have
improperly applied the law to the facts." Ex parte
Board of Zoning Adjustment of Mobile, 636 So. 2d
415, 417 (Ala. 1994).'

"Kennedy v. Boles Invs., Inc., 53 So. 3d 60, 67-68 (Ala. 2010)."

Fort Morgan Civic Ass'n v. City of Gulf Shores, 100 So. 3d 1042, 1045-46

(Ala. 2012).

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Discussion

I.

On appeal, the lessor first argues that "[t]he trial court erred by

denying the [l]essor's claim that [the l]essees breached the lease/purchase

agreement." Lessor's brief, p. 24. Specifically, she argues that the lessees

"defaulted [on the lease] by failing to pay the October 2023 property taxes

and November 2023 rent within twenty (20) days from when those

payments were required." Id., p. 25. As the lessees point out, however,

the lease does not provide that the property taxes must be paid in the

month of October. The lease simply states: "Lessees agree to pay actual

property taxes of mentioned property each year directly to Lessor for the

duration of this agreement."

With respect to the late payment of the November 2023 rent, we

note that Sneed testified that the lessor had instructed the lessees to

notify her before delivering payment. The lessees submitted evidence

indicating that Sneed had sent the lessor a text message on November 3,

2023, stating: "Hey are you at home. I wanna bring the taxes and

mortg[]age thru." Thereafter, on November 5, 2023, Sneed sent another

text message to the lessor stating: "So do you want me to bring mortgage

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and go pay the taxes tomorrow? Or how did you want to handle it?" Sneed

testified that the lessor did not respond to either of those text messages.

Instead, the lessor mailed the lessees a letter dated November 21, 2023,

stating that the lessees were in default of the lease and notifying them

that she was exercising her option to terminate the lease. On November

29, 2023, the lessees placed a money order dated November 3, 2023, for

the November 2023 rent in the lessor's mailbox.

"A party to a contract who has caused a failure of performance by

the other party cannot take advantage of that failure." Big Thicket

Broad. Co. of Alabama v. Santos, 594 So. 2d 1241, 1244 (Ala. Civ. App.

1991). Considering the evidence presented by the lessees, the trial court

could have properly determined that the lessor had prevented the lessees'

performance of their November 2023 payment obligation in order to take

advantage of the breach by canceling the lease.

Based on the foregoing, we cannot conclude that the lessor has

demonstrated that the trial court erred by rejecting the lessor's argument

that the lessees breached the lease.

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II.

The lessor next argues that "[t]he trial court erred by requiring the

[l]essor to convey the property to the [l]essees for less than the full

amount of the payments specified in the lease/purchase agreement."

Lessor's brief, p. 34. The lone authority the lessor cites in support of her

argument is § 12-13-11(a), Ala. Code 1975, which provides the statutory

grounds for granting new trials; however, the lessor did not make this

argument in her postjudgment motion. Therefore, the only citation to

authority she provides is inapplicable. Because the lessor has failed to

comply with Rule 28(a)(10), Ala. R. App. P., on this issue, we decline to

consider it.

III.

The lessor's final argument is that "[t]he trial court erred by

crediting the monthly rent as a prepayment toward the purchase price."

Lessor's brief, p. 36. The lessor notes that "option contract[s] must be

strictly construed." Id., p. 38 (citing, among other cases, Colonial Baking

Co. of Alabama v. Pine Dale, Inc., 436 So. 2d 856 (Ala. 1983)). She also

points out that the lease does not state that the monthly rent payments

would be applied to the purchase price. Indeed, the lease specifically

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provides that an initial deposit of $10,800 as well as annual payments in

the amount of $3,000 are to be applied to the $114,000 purchase price.

Because there is no ambiguity in the lease with respect to what payments

are to be applied to the purchase price and because option contracts must

be strictly construed, see id., we conclude that the trial court erred by

holding that the monthly rent payments applied to the purchase price.

Therefore, we must reverse the trial court's judgment to the extent that

it so held.

Conclusion

Based on the foregoing, we affirm the trial court's judgment in part,

but we reverse the trial court's judgment to the extent that it held that

the monthly rent payments applied to the purchase price. We remand

this cause to the trial court for the entry of a judgment in accordance with

this opinion.

AFFIRMED IN PART; REVERSED IN PART; AND REMANDED.

Stewart, C.J., and Wise, Sellers, and Cook, JJ., concur.

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