On August 1, 1993, the Alabama Legislature enacted the Civil Recovery Law, which entitles retailers to bring a civil cause of action against persons who committed or attempted to commit theft of property of goods held out for sale in the retailer’s establishment.  The primary purpose of the law is to provide an alternative form of deterrence that would eliminate shoplifting and employee theft, which have reached epidemic proportions and continue to be a source of problems for retailers.  However, merchants who seek to recover monetary damages under the law are not prohibited or limited from bringing any other course of action (i.e. criminal) against a person who unlawfully takes merchandise from the merchant’s premises.

6-5-271.  Liability for theft or attempted theft, liability of parents of unemancipated  minor; liability for defrauding an eating establishment; liability of foster home.

(a) An adult or emancipated minor who commits or attempts to commit a theft of property consisting of goods for sale on the premises of a merchant in violation of Sections §13A-8-3, 13A-8-4, or 13A-8-5  shall be civilly liable to the merchant in an amount consisting of all the following:

(1) The full retail value of the merchandise if not recovered in merchantable condition at its full retail price.

(2) Expenses for recovery of the merchandise in the amount of $200.

(3) Reasonable attorney’s fees and court costs not to exceed $1,000.

(b) Parents or legal guardians of an unemancipated minor under the age of 19 shall be liable in a civil action for the minor who commits or attempts to commit a theft of property consisting of goods for sale on the premises of a merchant in violation of Sections 13A-8-3, 13A-8-4, or 13A-8-5, to the merchant in an amount consisting of all of the following:

(1) The full retail value of the merchandise if not recovered in merchantable condition at its full retail price.

(2) Expenses for recovery of merchandise in the amount of $200.

(3) Reasonable attorney’s fees and court costs not to exceed $1,000.

(4) Parents or legal guardians of an unemancipated minor under the age of 19 shall only be liable in a civil action in any calendar year for up to three offenses under the provisions of this article with a maximum liability of $750  for each offense.

(c) A customer who orders a meal in a restaurant or other eating establishment, receives at least a portion thereof, and then leaves with the intent to defraud the eating establishment, without paying for the meal, is subject to liability under this section, if such meal is received by the customer in a good and merchantable condition.

(d) Persons operating a certified foster home are not liable under this section for the acts of children not related to them by blood or marriage who are under their care, nor shall parents or legal guardians whose child is not living with them or where the juvenile violates Sections 13A-8-3, 13A-8-4, or 13A-8-5, with the intent to make the parent or legal guardian liable, be held liable under this article.

Under the law, the amount of monetary damages that a merchant is entitled to recover is dependent on the classification of the shoplifter as either a minor or adult offender.

Adult shoplifters or those who attempt to steal the merchant’s property may be held civilly liable for:

(1) the full retail value of the merchandise if not recovered in merchantable condition at its full retail price;

(2) expenses for recovery of the merchandise in the amount of $200;

(3) reasonable attorney’s fees not to exceed $1,000.

For minor shoplifters under the age of 19 and who reside at home, merchants must seek civil recovery from the parents or legal guardians of the juvenile, (based on the liabilities applicable to adult offenders). However, parental liability for minor shoplifters in any given calendar year is limited to three (3) offenses with a maximum award of up to $750 per offense.  Persons operating certified foster homes are not liable for the acts of children in their care who are not related to them by blood or marriage.

This provision also applies to a customer of a restaurant or other eating establishment who receives at least a portion of the meal ordered and then leaves with the intent to defraud the eating establishment without paying for the meal.

§6-5-272.  Conviction or plea of guilty not prerequisite to suit; letter of demand for remittance.

 (a) A conviction or a plea of guilty to the criminal offense of theft of property as defined in Title 13A, Chapter 8, is not a prerequisite to the bringing of a civil suit, obtaining a judgment, or collecting that judgment under this article.

(b) The fact that a merchant may bring a civil action against an individual as provided in this article shall not limit the right of the merchant to demand, in writing as set out in subsection (c) below, that a person who is liable for damages and penalties under this article remit the damages and penalties prior to the consideration of the commencement of any legal action.

(c) The demand letter must be prepared and include the following:

On (insert date), you were apprehended for taking possession of, without paying for, merchandise belonging to (name of retailer/merchant).  Under Alabama statute, a retailer/merchant is granted a civil cause of action against the person who intentionally deprives or intends to deprive a retailer/merchant of any merchandise without paying for it.  The statute further provides that, separate from, and in addition to any criminal action arising from your conduct, you may be held civilly liable for:

(a) Cost of merchandise, if damaged;

(b) Expenses for the recovery of the merchandiseof $200; and

(c) Court costs and reasonable attorney’s fees.

This letter represents a demand from you for $(amount) as a means of satisfying this civil matter.

We do not wish to file a civil action against you.  However, if we do not receive payment within 30 days from the date of this letter, we will make every effort to enforce our rights under this statute, which may include a civil court action.

In order to initiate a civil claim, there is no requirement that persons who steal or attempt to steal the merchant’s property first be convicted or have pled guilty to the crime of theft of property.  To effect recovery of monetary damages, merchants may utilize a “demand letter” to request payment of damages and penalties from theft offenders prior to the consideration of the commencement of any legal action.  The demand letter should adhere to the language prescribed in the statute.  (See the Appendix for the format of the demand letter).

If the theft offender or parent of a juvenile theft offender fails to remit payment as specified in the demand letter to the merchant within thirty (30) days after service of the written demand, merchants may bring an action for recovery of monetary damages and penalties in any court of competent jurisdiction in the county where the merchant is located.  Recovery may be sought in the small claims division of a district court if the total damage sought does not exceed the jurisdictional limit of the small claims division.