Alabama Supreme Court upholds ruling in Phenix City’s lawsuit against Russell County

The Alabama Supreme Court has upheld a decision in a lawsuit filed by Phenix City against the county where it’s located, Russell County.

The lawsuit was filed by Phenix City in 2018 after Russell County stopped paying Phenix City proceeds from a gasoline tax distributed to Russell County as required by law, according to a news release from Phenix City.

On Jan. 10, 2024, Montgomery Circuit Court Judge Brooke E. Reid ruled in favor of Phenix City and stated that Russell County is obligated to pay Phenix City gasoline revenue as set out by a local act, according to a news release at the time.

She also ordered Russell County to immediately resume paying the gasoline tax and for a hearing to be set for the money owed to Phenix City, according to that release.

Russell County appealed the decision to the Alabama Supreme Court. On Jan. 10, 2025, the Alabama Supreme Court held that Russell County was obligated to pay Phenix City the contested gasoline tax proceeds, Phenix City announced Friday.

A news release from Phenix City says it is estimated Russell County will owe Phenix City nearly $2.5 million.

“Obviously, the City is satisfied with the court’s ruling, and is eager to put the delinquent funds into the maintenance and improvement of its roads, streets and bridges,” attorney Chan Gamble said in the news release. Gamble represented Phenix City in circuit court.

Gamble told the Ledger-Enquirer, “The city is hopeful that this decision will be the last in a long line of lawsuits, which the city considers to be frivolous, that were filed by Russell County, and that the city and the county can move forward and move forward in a more cooperative way to benefit the citizens of Phenix City and Russell County.”

The Ledger-Enquirer reached out to an attorney who represented Russell County in the lawsuit, but no response was received before publication.

This story was originally published January 13, 2025 at 12:09 PM.