Caver v. Central Alabama Electric Cooperative

Plaintiff and others filed a putative class action in state court on behalf of members of CAEC, alleging that CAEC wrongfully had refused to pay out “excess revenues” in cash to its members. After removal to federal court, the district court granted CAEC's motion to dismiss. The court affirmed the district court's ruling that when CAEC’s revenues exceed its operating costs and other expenses, CAEC does credit each members’ capital account with the cooperative, and the district court's holding that CAEC’s distribution of excess revenues to its members by making credits to their capital accounts, as opposed to making cash payments, complied with Alabama state law. View "Caver v. Central Alabama Electric Cooperative" on Justia Law