BLUEWATER LOGISTICS, LLC v. Williford

55 So. 3d 177, 2009 Miss. App. LEXIS 929, 2009 WL 4801017
CourtCourt of Appeals of Mississippi
DecidedDecember 15, 2009
Docket2008-CA-00250-COA
StatusPublished

This text of 55 So. 3d 177 (BLUEWATER LOGISTICS, LLC v. Williford) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BLUEWATER LOGISTICS, LLC v. Williford, 55 So. 3d 177, 2009 Miss. App. LEXIS 929, 2009 WL 4801017 (Mich. Ct. App. 2009).

Opinion

IRVING, J.,

for the Court.

¶ 1. This appeal arises out of a dispute between James Stewart Williford Jr., Patricia L. Mosser, Marquetta Smith, and Michael J. Floyd, all of whom are joint owners 1 of a limited liability corporation known as Bluewater Logistics LLC (BLL). 2 In 2006, Mosser, Smith, and Floyd (referred to collectively as “remaining members”) decided to oust Williford from BLL. Thereafter, Williford filed a complaint in the Forrest County Chancery Court, requesting that he be allowed to remain a member of BLL. Sometime after the filing of Williford’s complaint, the remaining members decided to grant Willi-ford’s request rather than oust him. Regardless, the case went to trial, after which the chancery court found that Williford had been improperly ousted from the corporation and granted him $316,768.25 in damages. Feeling aggrieved, BLL and the remaining members filed this appeal, asserting that the chancellor: (1) applied an erroneous legal standard and abused his discretion in his final judgment; (2) adopted Williford’s findings of fact verbatim, thus lessening the deference that his findings are entitled to; (3) erred in granting a legal remedy not authorized in law or equity; (4) erred in granting a judgment outside the scope of the pleadings; (5) erred in granting monetary relief not authorized in the pleadings or by the evidence presented at trial; (6) erred in “not accepting the fact that an attorney can and does act on behalf of the attorney’s clients in litigation;” (7) erred in not granting BLL’s motion to dismiss; and (8) erred “in determining that the pleadings request the relief granted by the court, and erred in determining that any law justifies the relief granted by the court....” Williford cross-appeals and asserts that the court erred in declining to award him attorney’s fees.

¶ 2. We find that all of these issues can be condensed to the following issues: (1) *180 whether we should employ a heightened standard of review due to the court’s adoption of Williford’s proposed findings of fact, (2) whether the relief granted was beyond the scope of Williford’s pleadings, and (3) what effect the Mississippi Limited Liability Company Act (MLLCA) has on the outcome of this case.

¶ 3. We conclude that the chancellor improperly granted relief that was beyond the scope of the pleadings filed by Willi-ford. Therefore, we reverse and render the decision of the chancery court. Since we find against Williford, we necessarily find no merit to his contention that he should have been awarded attorney’s fees.

FACTS

¶ 4. BLL was formed in the summer of 2004 to bid on government contracts. The individuals who formed the corporation were Williford, Mosser, Smith, and Floyd, 3 each of whom owned an equal share in the corporation. In addition to owning the corporation and sharing in its profits, all four worked as employees for the corporation in various capacities. The agreement that established the corporation contained a “right of redemption” whereby:

[T]he Company and the Members agree that the Company may, by a 75% Super Majority Vote of the Members, redeem any Member’s Interest for its then fair market value if the company determines, in its sole and absolute discretion, that that Member has either committed a felony or under any other circumstance that would jeopardize [sic] the Company’s status as an approved government contractor.

¶ 5. On January 31, 2006, Mosser, Smith, and Floyd met and decided to oust Willi-ford from the corporation. Williford was informed of the ouster shortly thereafter. The official notification of ouster stated that Williford would be paid for his one-quarter interest in the corporation as soon as a determination of the-value of BLL had been made. On February 10, 2006, Williford filed a complaint for a preliminary and permanent injunction to prevent his ouster from the corporation. In addition to requesting a temporary preliminary injunction, the complaint stated multiple claims against BLL and the remaining members. In count three, Williford requested “all rights and remedies available under the applicable statute, Miss.Code Ann. § 79-21-101, et seq. [sic].” 4 Willi-ford also asserted a number of tort claims, including negligence, negligent infliction of emotional distress, intentional infliction of emotional distress, gross negligence, and intentional and willful breach of contract. Paragraph 17 was titled “DAMAGES AND RELIEF SOUGHT,” and stated, in total:

1. Upon the giving of proper security as the Court deems fit, the plaintiff seeks a preliminary and then permanent injunction against the defendants which enjoins the defendants from the proposed action taken and orders that plaintiff is and remains a member of Bluewater Logistics, LLC and Bluewa-ter Bay, LLC, with all concomitant rights established by the Agreement, statutes[,] and other applicable laws. There is a likelihood of success on the merits, and the plaintiff will suffer irreparable loss and damagefe] in the way of *181 lost income and other benefits if the injunction is not granted.
2. An accounting of all assets, books, documents[,] and other papers relating to Bluewater Logistics, LLC and Blue-water Bay, LLC.
3. An inspection of all documents relating to Bluewater Logistics, LLC and Bluewater Bay, LLC, in accordance with the provisions of the MLLCA.
4. An appraisal of the company to determine the proper current fair market value of the plaintiffs interest in accordance with applicable common law and the MLLCA.
5. Production of all information and records of the company in accordance with Miss.Code Ann. § 79-29-308.
6. Compensatory damages to the plaintiff in the amount of lost income and lost benefits, damages for mental anguish and emotional distress, damages for humiliation, embarrassment, harm to his reputation[,] and other incidental damages caused by the unlawful activity of the defendants, attorney’s fees, interest, court costs, and punitive damages, all in a sum sufficient to compensate the plaintiff for his losses and punish the defendants for their unlawful conduct.
7. An order enjoining the defendants and all members of the LLC from engaging in any similar future conduct.
8. The court should order that the defendants be prohibited from using any LLC funds to pay for the defense of this case (including attorney’s fees and expenses), and further order any and all LLC funds expended in defense of this case be refunded by the individual members to the LLC.

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Bluebook (online)
55 So. 3d 177, 2009 Miss. App. LEXIS 929, 2009 WL 4801017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bluewater-logistics-llc-v-williford-missctapp-2009.