Property Subject To A Lease Cannot Be Acquired By Adverse Possession Until After the Leasehold Interest Terminates: Alabama Supreme Court Reverses Judgment of Tuscaloosa Circuit Court

EBSCO Indus., Inc. v. Ballard

By H. Reed Wagoner

In EBSCO Indus., Inc. v. Ballard, the Alabama Supreme Court addressed whether a party could acquire property through adverse possession when the party held a leasehold interest in the disputed property. The Plaintiff, EBSCO Industries, Inc. (“EBSCO”), appealed after the trial court ruled in favor of the Defendant, Michael R. Ballard (“Ballard”), holding that Ballard had acquired the disputed property through adverse possession. Specifically, the trial court held that Ballard’s extended use and improvements on the land allowed him to satisfy the adverse possession requirements. However, on appeal, the Alabama Supreme Court determined that the trial court’s ruling was “plainly and palpably wrong.” The Court reversed and remanded the case, holding that Ballard lacked essential elements . . . .

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