Taxpayers & Citizens v. City of Foley

The taxpayers and citizens of the City of Foley, Alabama, represented by the district attorney of Baldwin County, appeal from a judgment validating an ordinance authorizing the City of Foley to issue warrants as an incident to establishing a mutual insurance corporation. The circuit court confirmed the issuance of the warrants and validated the actions of the city, pursuant to Ala. Code 1975, § 6-6-750 et seq.

The City of Foley, which was faced with rapidly escalating insurance premiums and a concomitant reduction in coverage, sought to organize a mutual insurance company for its own benefit.…