Justia Business Law Opinion SummariesArticles Posted in Supreme Court of Mississippi
Boatright v. A & H Technologies, Inc.
In June 2014, Chester Abbott, as majority shareholder and director of A&H Technologies, Inc., formally noticed a special shareholder meeting. The meeting was to be held on July 23, 2014, in Mississippi. William Boatright, the only other shareholder, could not attend because he was working on an A&H project out of state. Despite William’s conflict, Chester proceeded with the meeting as the sole shareholder in attendance. Chester re-elected himself the lone director of A&H. He further determined he had been the only elected director of the company since 2001. Finally, he addressed the six-figure bonus he gave himself in December 2013, recording on the minutes that it was based on “his extraordinary work and effort to continue to build business and upon his forgoing any bonus for 2009 to 2012.” Chester held a board-of-directors meeting that same day. Chester elected himself president of A&H. Chester replaced William as vice president with his daughter-in-law Cynthia Abbott. And he replaced William’s wife, Kelley Boatright, as secretary/treasurer with his own wife, Carol Abbott. William sued Chester and A&H the next day, alleging that Chester’s oppressive conduct toward William was detrimental to A&H. In his complaint, William sought both to replace Chester as president of A&H and to become majority shareholder. Alternatively, he requested dissolution. Before the lawsuit, Chester owned 51% of A&H’s shares, and William owned 49%. After four years of litigation, the chancellor met William halfway, ordering a stock transfer that would have made William a 50% owner, equal with Chester, and directed William have equal say. The Mississippi Supreme Court gave deference to the equitable remedy the chancellor chose, because it was properly within his authority and discretion. Thus, the Supreme Court affirmed the chancellor's judgment. View "Boatright v. A & H Technologies, Inc." on Justia Law
Taylor Construction Company, Inc. v. Superior Mat Company, Inc.
Michael Montgomery, an employee of Taylor Construction working as a truck dispatcher, called Superior Mat Company to rent mats for Taylor Construction’s use. From June 9, 2017, to June 27, 2017, Taylor employees drove to Superior’s location in Covington County and picked up more than seven hundred mats. When Taylor returned the mats, Superior alleged that many were in varying degrees of dirtiness, or in some cases, damaged beyond repair. Taylor paid Superior for the mats until Superior additionally billed Taylor for the mats Taylor did not return. Taylor later stopped payment on all invoices from Superior. Superior filed suit against Taylor in Covington County Circuit Court, alleging breach of contract, open account, quantum meruit, and bad-faith breach of contract. Taylor filed its answer along with a motion to transfer venue under Rule 82(d). After hearing arguments, the circuit court denied Taylor's motion. Taylor appealed. The Mississippi Supreme Court affirmed, finding the record demonstrated credible evidence that substantial events or acts occurred in Covington County. View "Taylor Construction Company, Inc. v. Superior Mat Company, Inc." on Justia Law
Mississippi State Board of Contractors v. Hobbs Construction, LLC
At stake in this appeal before the Mississippi Supreme Court was the ability of Hobbs Construction, LLC, to continue doing business in the state as a commercial general contractor. The Mississippi State Board of Contractors revoked the certificate of responsibility (COR) held by Hobbs. The chancery court granted Hobbs’s motion for a preliminary injunction and enjoined the Board’s revocation decision during the pendency of the appeal. Later the chancery court entered an order reversing the Board’s decision and reinstating Hobbs’s COR. The Board appealed, arguing that the chancery court erred because the Board’s revocation decision was supported by substantial evidence, was not arbitrary and capricious, was within the Board’s power to make, and did not violate Hobbs’s statutory or constitutional rights. The Board argued also that the chancery court erred by granting a preliminary injunction. The Supreme Court determined the Board violated Hobbs’s constitutional right to due process of law by not providing sufficient notice of the charges that were considered at the revocation hearing and were a basis for the revocation decision, therefore it affirmed the chancery court's. Furthermore, the Supreme Court found the chancery court did not err by granting a preliminary injunction. View "Mississippi State Board of Contractors v. Hobbs Construction, LLC" on Justia Law
Jackson Mac Haik CDJR, Ltd. v. Hester
Mac Haik appeals the circuit court’s denial of its motion to compel arbitration. In 2016, plaintiff Brenda Hester purchased a used 2014 Dodge Ram from Jackson Mac Haik CDJR, Ltd. (Mac Haik). Hester executed a retail-installment sale contract with Mac Haik for the purchase of the vehicle. The contract contained an arbitration provision. In 2017, Hester sued Mac Haik, American Financial Warranty Corporation (American Warranty), Randy Miggins d/b/a M&S Towing, and Randy Miggins, alleging that the vehicle she bought from Mac Haik “was defective in materials and workmanship from and after the date of purchase” and “that said defects have existed since the Plaintiff started using said vehicle.” She alleged further that American Warranty issued her a warranty but failed to repair her truck. Hester never served American Warranty with a summons and copy of her complaint. Hester alleged that Mac Haik took possession of her vehicle to make warranted repairs and later allowed it to be towed. Mac Haik, finding that all of Hester’s claims, which sounded in tort or contract and related to her purchase or condition of the vehicle at issue, argued that the claims were subject to arbitration. Mac Haik appealed the circuit court’s denial of its motion to compel arbitration. Because the Mississippi Supreme Court found that the claims fell within the scope of the valid arbitration provision, and that no defenses existed to bar arbitration, it reversed reverse the circuit court’s order denying Mac Haik’s motion to compel arbitration and ordered the claims to arbitration. View "Jackson Mac Haik CDJR, Ltd. v. Hester" on Justia Law
Holland v. Murphy Oil USA, Inc.
In 2016, Mario Holland parked his vehicle at Black’s Food Market and walked to West Lounge. Upon returning to his vehicle after patronizing West Lounge, Holland was shot and robbed in the Black’s Food parking lot. He alleged the assailant came from a vacant lot across the street from Black’s Food. Murphy Oil owned the vacant lot. Holland suffered serious injuries from the assault. The trial court granted summary judgment in favor of defendant Murphy Oil, finding that, as a landowner that owned land near the scene of an assault, it did not owe any legal duty to Holland. Holland appealed, arguing that the Mississippi Supreme Court should adopt Section 54 of the Restatement (Third) of Torts, which provided for instances when landowners might owe a duty to persons or property located off the landowner’s property. The Supreme Court determined it did not need to address the Restatement because it did not apply to the facts of this case. Further, the Court affirmed the trial court’s grant of summary judgment because the landowner did not owe any legal duty to Holland. View "Holland v. Murphy Oil USA, Inc." on Justia Law
G4, LLC v. Pearl River County Board of Supervisors
G4, LLC, entered into a lease in 2009 with the City of Picayune, Mississippi, for land on the grounds of the Picayune Municipal Airport. After the Pearl River County Board of Supervisors assessed ad valorem taxes on the leased land, G4 paid the taxes under protest and petitioned the Board for a refund and for a refund of taxes it had paid on lots in the Tin Hill subdivision. The Board denied G4’s petition, and G4 appealed to the Circuit Court of Pearl River County, which affirmed. G4 appealed, asserting that, according to the Mississippi Supreme Court’s decision in Rankin County Board of Supervisors v. Lakeland Income Properties, LLC, 241 So. 3d 1279 (Miss. 2018), it was automatically exempt from paying ad valorem taxes on the airport property. The Supreme Court agreed, reversed and remanded the circuit court’s decision that affirmed the Board’s refusal to refund the airport property taxes. The Court affirmed the circuit court’s decision that G4 was not entitled to a refund of taxes paid on the Tin Hill subdivision lots. View "G4, LLC v. Pearl River County Board of Supervisors" on Justia Law
Hinton v. Sportsman’s Guide, Inc.
In 2012, Timothy Hinton was deer hunting when he fell from his tree stand. He was using a fall-arrest system (FAS), but the tree strap snapped, and Timothy plunged eighteen feet, eventually dying from his injuries. In 2013, Timothy’s parents, Marsha and Thomas Hinton, filed a wrongful-death suit based on Mississippi products-liability law. The defendant manufacturer, C&S Global Imports, Inc., defaulted and was not a source of recovery. So the litigation turned its focus to the manufacturer’s insurer, Pekin Insurance Company. After the Mississippi Supreme Court ruled Mississippi had personal jurisdiction over the Illinois-based insurer, Pekin successfully moved for summary judgment based on the clear tree-stand exclusion in C&S Global’s policy. Retailer Sportsman’s Guide, which sold Timothy the tree stand and FAS in 2009, also moved for and was granted summary judgment, giving rise to this appeal. As grounds for its decision, the trial court relied on the innocent-seller provision in the Mississippi Products Liability Act (MPLA), and found no evidence of active negligence by Sportsman's Guide. The Hintons argued in response: (1) Sportsman’s Guide waived its innocent-seller immunity affirmative defense; (2) a dispute of material fact existed over whether Sportsman's Guide was an innocent seller; or (3) alternatively, Mississippi’s innocent-seller provision should not control: instead the trial court should have followed Minnesota’s approach - the state where Sportsman’s Guide is located (under Minnesota’s law, innocent sellers may be liable when manufacturers are judgment proof, like C&S Global was here). Finding no reversible error in the trial court's judgment, the Mississippi Supreme Court affirmed. View "Hinton v. Sportsman's Guide, Inc." on Justia Law
LAGB, LLC v. Total Merchant Services, Inc.
Federico Garcia, president of Mama Kio’s, entered into an agreement with Total Merchant Services (TMS) for credit-card financial services for the restaurant. Two months after opening Mama Kio’s, Garcia noticed that the bank deposits through TMS were considerably less than expected. TMS later discovered the cause was an improper code in its software that had failed to collect the tips authorized by the customers. The missing tips totaled approximately $14,000. TMS attempted to remedy the error by running the credit cards again for the uncharged tip amounts. However, the customers were charged not only for the uncollected tips but also for the entire charged amounts. More than three thousand customers’ transactions were double and/or triple billed, resulting in more than $400,000 taken from Mama Kio’s customers’ accounts. Mama Kio’s worked with the credit-card companies for more than a month to repair and mitigate the damages. Mama Kio’s was forced to close its restaurant for lack of customers. LAGB, LLC, a commercial landlord, filed suit against Mama Kio’s for breach of its lease contract and sought damages for rent, insurance, taxes, and capital improvements. LAGB also sued the companies that provided credit-card processing services to Mama Kio’s, alleging that the negligence of the credit-card processing companies caused Mama Kio’s to breach its lease with LAGB. Mama Kio’s filed a cross-claim against the credit-card processing companies, alleging misrepresentations and tortious interference with its business. The credit-card processing companies filed motions compelling LAGB and Mama Kio’s to arbitrate. The trial court granted the motions. The Mississippi Supreme Court determined that while the trial court did not err by compelling Mama Kio’s to arbitrate its cross-claims, it did err by compelling LAGB to arbitrate its claims. View "LAGB, LLC v. Total Merchant Services, Inc." on Justia Law
Jourdan River Estates, LLC v. Favre
From 2007 to 2014, the parties employed significant resources in litigating “the rights of the various parties as to Nicola Road, a [Mississippi] county road that allowed the various property owners access to Highway 603.” Jourdan River Estates (JRE) prevailed in that litigation, securing much-needed access to Nicola Road for the purpose of developing its 269-acre tract of land and constructing hundreds of condominiums. “[T]he seven year delay has been costly for” JRE and Jourdan River Resort and Yacht Club, LLC (Yacht Club). In December 2011, JRE and Yacht Club sued Scott Favre, Cindy Favre, and Jefferson Parker - neighboring property owners who opposed development - for damages, asserting fifteen different causes of action. All of the causes of action were based on the allegations that defendants delayed development of the condominium complex. After years of protracted proceedings, the circuit court granted partial summary judgment in favor of defendants. In its order, the circuit court divided its analysis between JRE and Yacht Club, disposing of each cause of action by: (1) applying the statute of limitations bar; (2) finding that plaintiffs lacked standing to bring the claim; or (3) utilizing the Noerr-Pennington doctrine, which immunized defendants from tort-based liability for having petitioned the government. The trial court denied defendants’ request to apply judicial estoppel to all of the remaining claims. JRE and Yacht Club appealed the order granting summary judgment, and defendants cross-appealed regarding the court’s application of judicial estoppel. During pendency of the appeal, the Mississippi Supreme Court sua sponte requested the parties address the issue that JRE, a foreign limited liability company, was not in good standing with the Mississippi Secretary of State prior to filing its complaint. The Court found that the parties waived the issue. Thereafter, the Supreme Court affirmed the circuit court’s grant of partial summary judgment in favor of defendants, but reversed and remanded the court’s application of judicial estoppel. View "Jourdan River Estates, LLC v. Favre" on Justia Law
Okoloise v. Yost
This appeal involved a business dispute between two physicians. William Yost, M.D., owned and operated a pain-management clinic, Doctors Medical Center, LLC (DMC-Slidell). Within six months of opening DMC-Sidell, the Louisiana State Board of Medical Examiners (LSBME) began an investigation of Dr. Yost for illegally operating a pain-management clinic. Yost surrendered his Louisiana license, and closed DMC-Slidell. Yost then opened a new clinic, Doctors Medical Center of Picayune, LLC (DMC-Picayune), and began seeing patients, including his former patients from DMC-Slidell. The Mississippi State Board of Medical Licensure (MSBML) required that all pain-management clinics be registered and issued a certificate; Yost submitted an application for registration to the MSBML, but the certificate was not immediately issued. Mayor Okoloise, M.D. met with Yost to discuss affiliating. As a result of these discussions, Okoloise began practicing medicine with Yost at DMC-Picayune. They formalized their relationship and signed a “Personal Services Contract” in August 2012. At trial, Okoloise testified that, at the time he signed the agreement, he was unaware of the LSBME’s investigation of Yost,and he was unaware that Yost was not properly credentialed in Mississippi. The MSBML was not aware of the Louisiana investigation either and approved Yost’s application practice in pain management, issuing the required certificate. Dr. Okoloise resigned from DMC-Picayune; when he learned of the investigations, Okoloise testified the clinic was being operated illegally, and, thus he believed his contract to have been void at its inception. After Okoloise resigned, several other DMC-Picayune employees unexpectedly resigned. Testimony was presented that Okoloise made plans to open another clinic before he submitted his resignation, Hope Medical Services, LLC. Okoloise offered several members of the DMC-Picayune staff jobs at Hope Medical. The Drug Enforcement Agency (DEA) investigated Yost and DMC-Picayune, the result of which did not end in charges filed. But, on February 13, 2013, the DEA closed DMC-Picayune. That same day, Yost voluntarily surrendered his Mississippi medical license. Notwithstanding these investigations and the closure of his clinics, Yost sued Okoloise and Hope Medical and the DMC-Picayune employees that worked for Hope Medical. The chancellor determined there was sufficient evidence to sustain several claims against Okoloise and Hope Medical: trover/conversion, defamation, breach of contract, breach of duty of good faith, and misappropriation of trade secrets. The chancellor found “[Dr. Yost and DMC-Picayune] should be equitably compensated for the damages they incurred for these claims and losses.” He awarded a judgment against Okoloise and Hope Medical in the amount of $188,622. The Mississippi Supreme Court determined the chancellor’s findings were based on equitable measures, with no legal basis, and were therefore manifestly wrong. "The record evidence was insufficient to show losses attributable to Dr. Okoloise or Hope Medical. The judgment is manifestly wrong, clearly erroneous, and not supported by credible evidence. We reverse and render." View "Okoloise v. Yost" on Justia Law