Jay P. Altmayer v. City Daphne Jay P‪.‬

STEAGALL, JUSTICE. In October 1990, David Arnold, in his capacity as city manager for the City of Daphne, entered into a purchase agreement
with Jay P. Altmayer and others (collectively referred to as "Altmayer"), whereby the City would purchase certain real property
for $3 million. Arnold transferred $250,000 in municipal funds to an escrow account at SouthTrust Bank of Baldwin County as
earnest money under the agreement. The City thereafter rejected the purchase agreement, and Altmayer sued the City, alleging
breach of contract and fraudulent concealment. While this action was pending, both the City and Altmayer claimed ownership
of the funds in escrow. SouthTrust Bank thereafter filed an interpleader action, and both Altmayer and the City filed claims
for the money. Altmayer also counterclaimed against SouthTrust Bank, alleging that the bank had been negligent in allowing
Arnold to transfer municipal funds into the escrow account.