Justia Civil Procedure Opinion Summaries

Almost two decades prior to this decision, the Mississippi Supreme Court handed down Farmland Mutual Insurance Co. v. Scruggs, 886 So. 2d 714 (Miss. 2004). In that opinion, the Court held that Farmland Mutual Insurance Co., the liability insurer for Mitchell Scruggs, Eddie Scruggs, Scruggs Farms & Supplies LLC, and Scruggs Farm Joint Venture (collectively, Scruggs), had no duty to defend Scruggs in a federal lawsuit by Monsanto Company. The reason no coverage applied was because Monsanto had alleged that Scruggs committed the intentional act of conversion by saving and using unlicensed seeds. Eight years later, a district court judge overturned a jury’s verdict that Scruggs had willfully violated Monsanto’s patents. Consequently, Scruggs was not liable for treble damages and attorney’s fees. Scruggs returned to state court in 2013. Citing Rule 60(b) of the Mississippi Rules of Civil Procedure, Scruggs asked the Lee County Circuit Court to reopen and vacate the final judgment entered in 2004 in favor of Farmland on the coverage issue. Scruggs asserted the Mississippi Supreme Court’s opinion had been erroneously decided based on facts that came to light in the federal case. The state court rejected the motion as untimely under Rule 60(b). Scruggs appealed. While Scruggs asserted the motion was timely, the Mississippi Supreme Court found the motion’s timing is irrelevant: Rule 60(b) was not a procedural vehicle for a trial court to overturn a mandate issued from the Mississippi Supreme Court. Because the trial court lacked jurisdiction to grant Scruggs’s request, the Supreme Court affirmed the circuit court’s denial of the motion. View "Scruggs, et al. v. Farmland Mutual Insurance Co." on Justia Law

The City of Biloxi and Harrison County, Mississippi adopted a joint resolution that authorized the lease of a piece of property to RW Development, LLC, for the development of a joint public/private pier seaward of Veterans Avenue. As a result, the State initiated this case seeking a declaratory judgment that the State was the sole and exclusive authority to lease Public Trust Tidelands, that the City had no authority to lease the subject property to RW, and that preliminary and permanent injunctive relief should issue against the actions of the City and RW. The Chancery Court of Harrison County denied the State’s requested relief and ultimately determined that the City and County had statutory authority to lease the property to RW for public use. Because the Mississippi Supreme Court agreed that Mississippi statutory law granted the City authority to build the pier, the court granted the chancery court's judgment. View "Mississippi v. RW Development, LLC, et al." on Justia Law

Heritage Hunter Knoll, LLC (Heritage), appeals the circuit court’s dismissal of its appeal for a lack of jurisdiction. The Lamar County Board of Supervisors (Board) amended the Unauthorized Dumping and Litter Ordinance (waste ordinance) to discontinue the county’s garbage collection service to multifamily residences, duplex developments, apartment complexes, and commercial properties. Notably, the amendment advised that “[a]ny citizen who [wa]s affected or aggrieved by this Ordinance may apply to the Lamar County Board of Supervisors (at its regularly scheduled meetings) for a Variance to the terms, provisions and applications of this Ordinance.” Heritage, a limited liability company, owned three properties in Lamar County: Hunter Lane, Heritage Cove, and Knoll Cutoff. Heritage received notice of the Board’s amendment to the waste ordinance by letter dated July 23, 2018. In August 2018, the Board passed a second, clarifying amendment to the waste ordinance. In September 2018, the Board approved Heritage’s variance request for the Knoll Cutoff property, but it denied the variance requests for Hunter Lane and Heritage Cove. Heritage did not appeal the Board’s amendment to the waste ordinance or the Board’s denial of its variance requests. In January 2019, the county implemented the amended waste ordinance. On February 1, 2019, Heritage filed suit in federal court claiming that the Board’s amendment to the waste ordinance was unlawful and that it violated Heritage’s constitutional rights. The Mississippi Supreme Court determined Heritage’s appeal was untimely as to the amendment to the waste ordinance but timely as to the Board’s denial of Heritage’s variance requests. The circuit court’s judgment of dismissal was affirmed in part and reversed and remanded in part. View "Heritage Hunter Knoll, LLC v. Lamar County, Mississippi" on Justia Law

Niyokia Lee and James Cooper sustained damages in separate, independent automobile accidents caused by negligent city emergency responders. Lee’s accident happened in Harrison County, and Cooper’s happened in Rankin County. The Mississippi Tort Claims Act afforded immunity to the negligent police officer, the fireman, and the governmental entities employing them. Because Lee and Cooper could not recover from the responders or municipalities, both sought recovery under their car insurance policies’ uninsured motorist provisions. Lee and Cooper had the same UM coverage carrier—State Farm Mutual Automobile Insurance Company. And State Farm denied UM coverage to both, citing Mississippi Code Section 83-11-101(1) of Mississippi’s Uninsured Motorist Act. As State Farm saw it, because the officer and fireman enjoyed police and fire protection immunity under the MTCA, neither policyholder was legally entitled to recover from the immune responders or their city employers. State Farm thus denied UM coverage to Lee and Cooper despite the fact that, in 2009, the state legislature had revised Mississippi Code Section 83-11-103(c) of the UM Act by adding a new subsection expanding the definition of “uninsured motor vehicle” to include “[a] motor vehicle owned or operated by a person protected by immunity under the [MTCA.]” The two trial courts considering the UM coverage issue reached opposite results. The Harrison County Circuit Court granted summary judgment in State Farm’s favor and dismissed Lee’s claims against State Farm, finding because the officer was immune, Lee was not "legally entitled to recover" and consequently, was not eligible for UM coverage. The Rankin County Court granted summary judgment in Cooper’s favor, against State Farm, ruling UM coverage did apply because, otherwise, the 2009 amendment to the UM Act, which expanded the definition of “uninsured motor vehicle” to include vehicles operated by persons who are immune under the MTCA, would be "rendered virtually meaningless." The Mississippi Supreme Court consolidating the two cases found that the plain language of the two provisions made it apparent that Lee and Cooper were entitled to UM coverage. It therefore reversed and remanded the decision of the Harrison County Circuit Court, and affirmed and remanded the decision of the Rankin County Circuit Court. View "Lee v. State Farm Mutual Automobile Insurance Company" on Justia Law

This case presented an issue of first impression for the Mississippi Supreme Court: whether an attorney’s representation of a general partnership created an implied attorney-client relationship between the attorney and the individual members of the general partnership, and, if so, whether the Mississippi Rule of Professional Conduct prohibiting communication by a lawyer with an individual represented by other legal counsel was violated. James Pettis, III, attorney for the plaintiff, appealed a chancery court order disqualifying him for a violation of Mississippi Rule of Professional Conduct 4.2, which prohibited a lawyer from communicating with a person they know to be represented about the subject of the representation. After a careful review of the law, the Supreme Court reversed the chancery court’s order, rendered judgment in favor of Pettis, and remanded for further proceedings. View "Pettis v. Simrall" on Justia Law

Mississippi Hub, LLC ("MS HUB") operated an underground natural gas storage facility mostly located in Simpson County. In 2007, MS HUB and Simpson County entered into a fee-in-lieu agreement regarding ad valorem taxes on the first phase of the facility. It was agreed that, in exchange for locating the facility in Simpson County, for ten years MS HUB would pay a third of what its taxes would have otherwise been. It was also agreed that the facility was industrial personal property for taxation purposes, that the value of the property would be determined in accordance with Mississippi Code Section 27-35-50 (Supp. 2021), and that economic obsolescence would be considered by the tax assessor at the request of the company. In 2017, MS HUB contacted the Simpson County Tax Assessor regarding market changes in the natural gas storage industry and how those changes affected the value of the MS HUB facility. The assessor ultimately concluded that a reduction of 20 percent for economic obsolescence should be applied for the 2019 tax year. The Simpson County Board of Supervisors, however, assessed the property at $56,527,560—which would correspond to a true value of $376,850,400, the assessed true value without the adjustment for economic obsolescence. MS HUB objected to the assessment at the board’s August 5, 2019 equalization meeting. The board dismissed the objections made by MS HUB without giving a written explanation. MS HUB thereafter filed a “Petition for Declaratory Judgment and, in the alternative, Petition for Appeal from Determination of Ad Valorem Tax Assessment.” Simpson County and its tax assessor, Charles Baldwin, were named as defendants. Simpson County argued that the appeal by MS HUB was untimely and its expert based his opinion on the wrong approach to valuation. The circuit court granted summary judgment, but the Mississippi Supreme Court reversed, finding there were no grounds upon which summary judgment should have been granted. Judgment was reversed and the matter remanded for further proceedings. View "Mississippi Hub, LLC v. Baldwin" on Justia Law

A Mississippi trial court dismissed David Saunders’s claims against the National Collegiate Athletic Association (NCAA) based on judicial estoppel because Saunders did not list these claims in his prior Chapter 7 bankruptcy. Until December 2010, Saunders served as football operations coordinator at the University of Mississippi. From January 2011 to October 2014, Saunders worked as an assistant football coach for the University of Louisiana. Based on Saunders’s alleged rule violations while at each institution, the NCAA conducted separate investigations and enforcement proceedings against both schools. The NCAA concluded Saunders had violated NCAA rules while at Louisiana. As punishment, the NCAA issued a show-cause directive to any NCAA member institution that may want to employ Saunders in an athletics position from January 2016 to January 2024. Saunders retained an attorney to represent him in NCAA proceedings. The attorney insisted financial strain prevented Saunders from traveling to defend himself personally. After a second show-cause directive, Saunders and his attorney discussed suing the NCAA, but at that time he did not pursue a lawsuit. Months later, Saunders filed a voluntary petition for Chapter 7 bankruptcy averring he had no claims against third parties. Saunders received a bankruptcy discharge in July 2018. Almost two years later, Saunders sued the NCAA: it was not until another football coach sued the NCAA, and made it past the summary judgment stage, that Saunders believed he had an actual shot at taking on the NCAA in court. The NCAA simultaneously filed an answer and a motion for summary judgment. In both, it asserted Saunders’s claims were barred by the doctrine of judicial estoppel because Saunders had not disclosed these claims against the NCAA in his 2018 bankruptcy proceedings. The court ruled that Saunders’s claims against the NCAA belonged to Saunders’s bankruptcy estate, so the bankruptcy trustee was substituted as the real party in interest and plaintiff in the action. Further, while judicial estoppel did not bar the trustee from pursuing these claims for the benefit of the bankruptcy estate, Saunders himself was barred by judicial estoppel from pursuing his claims against the NCAA, including the declaratory-relief claim abandoned by the bankruptcy trustee. The Mississippi Supreme Court concluded the trial court erred for two reasons: (1) the trial judge erred by estopping Saunders from pursuing this type of declaratory relief; and (2) it was error for the trial court to presume Saunders should be estopped based on his mere knowledge of the facts giving rise to his claims against the NCAA, coupled with his failure to list these claims on his bankruptcy schedule. View "Saunders v. National Collegiate Athletic Association" on Justia Law

The Greenville Public School District (“GPSD”) challenged the sufficiency of the bond amount that Yolanda Thomas posted to perfect her appeal pursuant to the requirements of Mississippi Code Section 37-9-113 (Rev. 2019). GPSD argued that, pursuant to Section 37-9-113, Thomas was required to post bond in an amount equal to the full cost of the hearing transcript. The chancellor ruled that, based on the language of Section 37-9-113 and Mississippi Code Section 37-9-111 (Rev. 2019), Thomas’s $200 bond was sufficient to perfect her appeal in the Washington County Chancery Court. The Mississippi Supreme Court affirmed the chancellor's decision. View "Greenville Public School District v. Thomas" on Justia Law

In April 2012, Bobby Gibson signed a contingency fee contract with Barry Wade Gilmer and the Gilmer Law Firm regarding a legal malpractice case. When the contract was signed, Seth Little, an associate of the Gilmer Law Firm, was assigned to the case. During the summer of 2013, Little left the Gilmer Law Firm and began working for Chuck McRae at the McRae Law Firm. Little continued to work on Gibson’s case while employed at the McRae Law Firm. A settlement was ultimately reached in Gibson’s case, but the McRae Law Firm never received any money. McRae hired Michelle Biegel and Bettie Ruth Johnson to sue Gilmer over the attorneys’ fees generated by the settlement of the legal malpractice case. Later, Gilmer filed a lawsuit against McRae, Little, Biegel, and Johnson, alleging, among other claims, that McRae, Biegel, and Johnson committed civil conspiracy. Gilmer’s suit was ultimately dismissed, and this appeal followed. After review, the Mississippi Supreme Court affirmed the trial court’s dismissal of Gilmer’s October 2, 2017 complaint and the trial court’s award of attorneys’ fees. The Court also concluded that the trial court did not abuse its discretion by denying Gilmer’s amended motion to amend. Finally, the Supreme Court found that Gilmer was procedurally barred from raising the issue of whether the trial court abused its discretion by assigning the costs of the interlocutory appeal to Gilmer. View "Gilmer v. McRae, et al." on Justia Law

A Mississippi trial court denied Watercolor Salon LLC’s motion for a temporary restraining order and preliminary injunction filed against Watercolor’s former employee Nealie Hixon. The motion was based on an employment, confidentiality, and noncompetition agreement. Because Nealie was twenty years old and thus legally a minor when she entered the agreement, the trial court held the agreement was unenforceable. On appeal, Watercolor argues its employment agreement meets the statutory exception that permits minors eighteen years or older to enter into enforceable contracts “affecting personal property.” The Mississippi Supreme Court found Watercolor's logic was flawed and stretched the statutory minor disability exception too far. "Just because an employment contract restricts an employee from taking intellectual property or covers what happens upon breach or termination does not completely change the fundamental nature of the contract. And here the fundamental nature of the contract was a noncompetition agreement that Nealie would give up her ability to work in a certain geographical area for a fixed time in exchange for continued employment at a higher hourly wage. So this employment contract was simply a contract affecting Nealie’s right to work, not her personal property. Thus, the statutory exception does not apply. And because Nealie disaffirmed the contract, it is unenforceable against her." The Court affirmed the denial of Watercolor's motion for injunctive relief, which was based solely on the unenforceable agreement. Whether Watercolor had any remaining claims against Nealie that were not based on the contract, such as the taking of trade secrets, remained to be determined on remand. View "Watercolor Salon, LLC v. Hixon" on Justia Law