Alabama Insurance Guaranty Ass'n v. Water Works & Sanitary Sewer Board of the City of Montgomery

In Jefferson County v. Reach, 368 So.2d 250, 252 (Ala.1978), the supreme court stated:

“The distinction between a claim ex contractu and one ex delicto is found in the nature of the grievance. Where the wrong results from a breach of a promise, the claim is ex contractu. However, if the wrong springs from a breach of a duty either growing out of the relationship of the parties, or imposed by law, the claim is ex delicto.”

In the case now before us, the claim asserted by the Alabama Insurance Guaranty Association (“the AIGA”) is not based on a promise; consequently, it is not a contract claim.…