Thursday, March 9, 2000
Frankenmuth Mutual Ins. Co. v.
Ernie Lee Magaha
No. 96,384
Place of Origin
Escambia County
Facts
Escambia County comptroller Joe Flowers entered into
long-term lease agreements worth nearly $5 million with
Unisys Corp. to obtain and finance computer equipment.
Frankenmuth obtained the lease by assignment. On August
1, 1995, the Legislature abolished the comptroller's
office after Flowers was indicted for illegal activity
in office, including matters related to the leases.
Afterward, Escambia County did not appropriate funds to
make further payments under the agreements, and
Frankenmuth sued the county and its clerk of court,
Magaha, in federal court. The judge declared the bulk of
the agreements valid and held that the county had
effectively ratified them. On appeal, the Eleventh
Circuit Court certified questions to the Supreme Court
about the legal issues at stake.