The Alabama Supreme Court ordered Friday that part of a lawsuit involving the city of Fairhope and a regional developer be dismissed.

The state’s highest court ruled that Fairhope and the city’s planning commission have several forms of immunity from damages stemming from a negligence claim filed by 68 Ventures against the city and planning commission over two townhome developments that were rejected by the city.

68 Ventures, based in Daphne and owned by developer Nathan Cox, sought approval to develop two properties within Fairhope’s jurisdiction: Skyline Village and Gables on Lawrence.

Skyline Village would have been built on 17 acres along Dreyer Road, while Gables on Lawrence would have been built on about 19 acres along Lawrence Road. City officials denied both projects due to concerns such as drainage, traffic and general welfare.

The company filed suit against Fairhope in 2022, accusing the city and planning commission of negligence in their consideration and rejection of the Skyline Village and Gables on Lawrence projects.

The lawsuit was initially filed in the U.S. District Court for the Southern District of Alabama, but after the federal court ruled against the company on its federal claims and declined to hear the remaining state claims, 68 Ventures refiled the lawsuit in Baldwin County Circuit Court. The company asked the court to invalidate the denials as arbitrary and capricious while asserting a separate claim that the company was denied due process under the Alabama Constitution.

In 2025, the city of Fairhope and the planning commission filed a motion for summary judgment, arguing they have protection against the negligence claim due to several forms of governmental immunity. However, Circuit Judge J. Clark Stankoski denied their request and set a trial date for February this year.

Before the case could go to trial, Fairhope and the planning commission appealed to the Alabama Supreme Court, leading to the trial being put on hold as the Supreme Court reviewed the case.

The Alabama Supreme Court, in an opinion written by Justice Will Parker, sided with Fairhope and the planning commission, ruling that they have several forms of immunity from the negligence claim.

“Their consideration and denial of 68V’s applications is likewise ‘within the scope of their official functions and duties.’ And 68V does not claim that the commissioners were acting willfully or wantonly. As a result, the planning commissioners are immune from any alleged negligence in declining to approve 68V’s applications,” Parker wrote in the order.

Other claims challenging the legality of the denials are still pending in Baldwin County Circuit Court, including a claim that the city’s planning commission denials were arbitrary and a claim alleging a violation of due process. No trial date has been set.