Justia Contracts Opinion Summaries

At issue in this case before the Mississippi Supreme Court was a dispute between an automobile manufacturer and one of its dealerships. Specifically, the issue reduced to whether the dealer filed a timely complaint under Mississippi Code section 63-17-73(1)(d)(iii) after the dealer received the manufacturer’s notice it would terminate the applicable dealership agreement. The Court determined the statute was unambiguous, and its plain meaning provided a dealer may file its verified complaint within the sixty day notice period, i.e., the sixty days preceding the effective date of termination. Because the statute was unambiguous and conveyed a clear and definite meaning, the Court did not resort to the rules of statutory construction. The Court found the dealer’s complaint was timely filed within the sixty days immediately preceding the effective date of termination. View "Nissan North America, Inc. v. Great River Nissan, LLC d/b/a Great River Nissan" on Justia Law

Rex Distributing Company was a wholesaler of Anheuser-Busch’s beer. When Rex sought to sell its business, Anheuser-Busch asserted a contractual right to “redirect” the sale to its preferred buyer, Mitchell Distributing Company. Rex alleged the redirect provision was void under Mississippi’s Beer Industry Fair Dealing Act (BIFDA) and that Anheuser-Busch’s interference with the sale caused it damages actionable under the same statute. The trial court dismissed Rex’s claims against Anheuser-Busch and Mitchell for failure to state a claim upon which relief can be granted. The Mississippi Supreme Court reversed, however, concluding Rex alleged a valid cause of action. The dismissal of Rex’s BIFDA claim against Anheuser-Busch and the derivative claims against Mitchell were reversed and the matter remanded for further proceedings. The Supreme Court affirmed the trial court’s judgment dismissing Rex’s other claims. View "Rex Distributing Company, Inc. v. Anheuser-Busch, LLC" on Justia Law

James Allen Insurance Brokers (JAIB) and Certain Underwriters at Lloyd’s, London, Subscribing to Certificate No. FRO-100944 (Lloyd’s) petitioned the Mississippi Supreme Court for interlocutory review of the Simpson County, Mississippi Circuit Court’s order granting partial summary judgment in favor of First Financial Bank (FFB). The trial court held that FFB was entitled to insurance proceeds from a fire loss that occurred at Luther and Freda Feazell’s poultry farm, because JAIB and Lloyd’s failed to comply with Mississippi law requiring notice of cancellation of property insurance. JAIM and Lloyd's claimed the Feazells' premium was not received on time; the effective date of the policy at issue here was reset to the date premium was paid. The Supreme Court determined coverage was effective December 13, 2013, and under the terms of the binder, and FFB having been listed in the binder as a mortgagee/loss payee, triggered Miss. Code Ann. Section 83-5-28(1)’s notification requirements. JAIB and Lloyd’s failed to comply with those statutory notification requirements; therefore, they were liable to FFB for its loss. Accordingly, the Supreme Court determined the trial court correctly granted partial summary judgment in favor of FFB. View "James Allen Insurance Brokers and Certain Underwriters at Lloyd's, London, Subscribing to Certificate NO. FRO-100944 v. First Financial Bank" on Justia Law

Johnson Electric sued Robinson Electric Supply for numerous claims, including breach of contract, fraud, and a variety of other torts. Johnson asserted that Robinson Electric Supply carried out a fraudulent scheme to overcharge Johnson. Robinson Electric Supply counterclaimed for balances due on Johnson’s accounts. Both parties requested an accounting. The chancellor appointed a special master to hear the case due to its complexity and size of the amount in controversy. The chancellor stayed discovery until the special master could release her findings; however, the chancellor also ordered Robinson to release numerous business records sought by Johnson. Before the accounting was concluded by the special master, Johnson Electric was administratively dissolved, and as a result, the chancellor dismissed the claims brought on behalf of the corporation. After the special master released her recommendations and a supplemental report, the chancellor agreed with the special master’s findings and adopted the report. On appeal, Johnson challenged the chancellor’s decision to dismiss Johnson Electric from the lawsuit, the chancellor’s adoption of the special master’s report, and the chancellor’s decision to stay discovery until an accounting could be conducted by the special master. The Mississippi Supreme Court found that because Johnson Electric was administratively dissolved, it could not "maintain" a claim as a corporation under Mississippi law. Furthermore, the Court determined neither the chancellor's acceptance of the special master's report nor the chancellor's discovery rulings were an abuse of discretion. View "Wayne Johnson Electric Inc. v. Robinson Electric Supply Company, Inc." on Justia Law

Dorothy Smith sued her homeowner's insurance carrier, Mississippi Farm Bureau Casualty Insurance Company (“Farm Bureau”), after Farm Bureau denied her claim based on the earth-movement exclusion in the policy. Smith filed suit against her home builder, Larry Brown, d/b/a Brown’s Construction Company, and Farm Bureau after learning that her home’s foundation was defective. Smith filed a claim for the repair of the foundation. Farm Bureau filed a motion for summary judgment, which was denied by the trial court. Farm Bureau then filed a petition for interlocutory appeal by permission, which the Mississippi Supreme Court granted. The Supreme Court found the trial court erred in denying Farm Bureau’s motion for summary judgment: the earth-movement exclusion was unambiguous and excluded coverage for the property damage suffered by Smith. View "Mississippi Farm Bureau Casualty Insurance Company v. Smith" on Justia Law

An interlocutory appeal went before the Mississippi Supreme Court after a circuit court denied Defendants’ motions for transfer of venue and summary judgment in a silica case. On appeal, F&S Sand, Inc.; F&S Sand Abrasive Company, Inc.; Dependable Abrasives, Inc. (Dissolved); Mississippi Valley Silica Company, Inc.; Empire Abrasive Equipment Corporation; Dravo Basic Materials Company, Inc.; and American Optical Corporation (collectively, “Defendants”) asked the Supreme Court to review whether venue was proper in Jefferson County and whether the claim was time-barred by the statute of limitations. The Court reversed the Circuit Court’s denial of summary judgment and rendered judgment in favor of Defendants: the venue issue was moot because the claim was time-barred. View "F & S Sand, Inc. v. Stringfellow" on Justia Law

Land Holdings I, LLC, d/b/a Scarlet Pearl, LLC (“Casino”), sought to expunge a lien filed by GSI Services, LLC (“GSI”). The chancellor denied the Casino’s petition to expunge the lien because GSI performed work at the Casino within ninety days of filing its lien. Finding no error, the Mississippi Supreme Court affirmed the chancellor’s order. View "Land Holdings I, LLC d/b/a Scarlet Pearl, LLC v. GSI Services, LLC" on Justia Law

In a contract dispute between film producer Adam Rosenfelt and the Mississippi Development Authority ("MDA"), Rosenfelt claimed the MDA promised loan guarantees so he could make movies in Mississippi. He made one film, which was not financially successful, and the MDA refused to guarantee the loan for his next project. Rosenfelt claimed the MDA breached a contract with him, personally. The Mississippi Supreme Court concluded Rosenfelt lacked standing to file suit: the actual documents showed any agreement was between the MDA and one or more LLCs, not Rosenfelt personally. Furthermore, the Court determined no error has been shown as to the dismissal of one of those LLCs, Element Studios, LLC, for want of standing. View "Rosenfelt v. Mississippi Development Authority" on Justia Law

From November 2004 to January 2011, The Door Shop, Inc., used $36,081.86 of electricity from Alcorn County Electric Power Association (ACE). But because of a billing error, it was charged only $10,396.28. Upon discovering the error, ACE sought to recover the $25,658.58 difference via supplemental billing. The Door Shop refused to pay, which prompted ACE to file suit. ACE maintained that The Door Shop was liable for the underbilled amount and moved for summary judgment, which the circuit court granted. This appeal followed. Finding no reversible error, the Mississippi Supreme Court affirmed. View "The Door Shop, Inc. v. Alcorn County Electric Power Association" on Justia Law

Singing River Health System a/k/a Singing River Hospital System (“Singing River”) sued KPMG, LLP, alleging separate counts of breach of contract and negligence and/or professional malpractice based on the audits KPMG performed for Singing River in fiscal years 2008 through 2012. Singing River alleged that KPMG failed to comply with the professional auditing and accounting standards expressed in GAAS (Generally Accepted Auditing Standards), GAGAS (Generally Accepted Government Auditing Standards), and GAAP (Generally Accepted Accounting Principles), which KPMG had agreed to follow. Singing River specifically alleged that KPMG’s audits were replete with computational errors and incorrect assumptions, and that KPMG had not performed basic tests to substantiate its opinions. Singing River separately alleged that KPMG was negligent and committed professional malpractice by failing to use the skill, prudence, and diligence other reasonable and prudent auditors would use in similar circumstances, as expressed in the GAAS, GAGAS and GAAP. Singing River alleged, inter alia, that, as a direct and proximate result of KPMG’s audits, Singing River was unaware that its employee-pension plan was underfunded by approximately one-hundred-fifty million dollars ($150,000,000.00). Further, Singing River alleged that it was unaware that it was not in compliance with certain bond covenants due to KPMG’s negligence. KPMG sought to compel arbitration of Singing River’s claims. The circuit court declined to order Singing River to arbitration. The Mississippi Supreme Court determined KPMG’s 2008, 2009, 2010, 2011, and 2012 letters were not spread across the Board’s minutes. The Court could not enforce these contracts or the dispute-resolution clauses attached to them. KPMG’s additional arguments concerning the delegation clause, collateral estoppel, and direct-benefit estoppel were without merit. The trial court’s order denying KPMG’s motion to compel arbitration was affirmed, and the case was remanded for further proceedings. View "KPMG, LLP v. Singing River Health System" on Justia Law