Brown Bottling Group, Inc. v. Imperial Trading Co., L.L.C.

District Court, S.D. Mississippi·Decided September 7, 2022·No. 3:19-cv-00142·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI NORTHERN DIVISION BROWN BOTTLING GROUP, INC. PLAINTIFF V. CIVIL ACTION NO.: 3:19-CV-00142-HTW-LGI IMPERIAL TRADING CO., L.L.C.; LONG WHOLESALE, INC.; AAA CASH & CARRY WHOLESALE, INC.; THE CORR-WILLIAMS COMPANY; THE H.T. HACKNEY, CO.; MS WHOLESALES 1 INC.; AND W.L. PETREY WHOLESALE CO., INC. DEFENDANTS ORDER Before the Court is the Motion to Bifurcate Trial [119] filed by Defendant The H.T. Hackney Co. and joined by Defendants Imperial Trading Co., L.L.C., Long Wholesale, Inc., AAA Cash and Carry Wholesale, Inc., The Corr-Williams Company, and W.L. Petrey Wholesale Co., Inc. Also before the Court is the Motion to Bifurcate Discovery [122], filed by Imperial Trading Co., L.L.C, Long Wholesale, Inc., Corr-Williams Company, and joined by The H.T. Hackney Co., W.L. Petrey Wholesale Co., Inc. and AAA Cash & Carry Wholesale, Inc. The movant-defendants are collectively referred to hereinafter as “Defendants”.1 Plaintiff Brown Bottling Group, Inc. (“Plaintiff” or “Brown Bottling”) filed a Response in Opposition to Defendants’ Motion to Bifurcate Trial [129], and Defendants submitted a Reply in Support of the Motion to Bifurcate Trial [133]. Likewise, Plaintiff filed a Response in Opposition to Defendants’ Motion to Bifurcate Discovery [131], and Defendants submitted a Reply in Support of the Motion to Bifurcate Discovery [135]. The Court, having considered the submissions, the record, and relevant law, finds 1 Defendant MS Wholesales 1 Inc. did not join in the motions (119), (122) . that the Motion to Bifurcate Trial [119] is GRANTED and the Motion to Bifurcate Discovery

[122] is DENIED, as discussed below. ANALYSIS I. Defendants’ Motion to Bifurcate Trial [119] Defendants seek to bifurcate the trial of the tortious interference claim into two phases: (1) liability and compensatory damages and (2) punitive damages. Plaintiff seeks punitive damages for its pendent state-law claim for tortious interference, with actual or prospective business relations. Defendants move for bifurcation, because they “expect [at the trial in this matter] that Brown Bottling will attempt to introduce evidence, or elicit testimony, regarding punitive damages prior to a jury finding of liability in connection with the tortious interference claim.” See Doc. [120] at 2. The decision to grant separate trials rests within the sole discretion of the trial court. Guedry v. Marino, 164 F.R.D. 181, 186 (E.D. La. 1995). Defendants’ Motion [119] seeks to bifurcate the trial into a phased trial rather than into separate trials, which is consistent with

Federal Rule of Civil Procedure 42(b) and the provisions of Mississippi’s punitive damages statute. Rule 42(b) provides, “for convenience, to avoid prejudice, or to expedite and economize, the court may order a separate trial of one or more separate issues, claims, crossclaims, counterclaims, or third-party claims.” Fed. R. Civ. P. 42. (Emphasis added). Mississippi Code § 11-1-65 mandates the bifurcation of liability and compensatory damages from that of punitive damages. While this court is not bound by the Mississippi state statute requiring bifurcation of punitive damages, federal district courts have followed the strict procedure outlined in § 11-1-65, in instances where granting the relief would be consistent with the provisions of Rule 42(b). See James v. Antarctic Mech. Servs., Inc., No. 3:18-CV-678, 2021 WL 4999012, at *2 (S.D. Miss. Oct. 27, 2021); Cooper v. Meritor, Inc., No. 4:16-CV-52-DMB-JMV, 2019 WL 1028530, at *2 (N.D. Miss. Mar. 4, 2019);

and Dykes v. Cleveland Nursing & Rehab. Ctr., No. 4:15-cv-76, 2018 WL 2967627, at *2 (N.D. Miss. June 12, 2018). “Specifically, Miss. Code Ann. § 11–1–65(1)(c) provides that ‘[i]f, but only if, an award of compensatory damages has been made against a party, the court shall promptly commence an evidentiary hearing to determine whether punitive damages may be considered by the same trier of fact.’” Boddie v. Walker, 280 F. Supp. 3d 920, 921 (N.D. Miss. 2017) (citing Miss. Code Ann. §11-1-65(1)(a)-(e) (Rev. 2000). The Northern District Court has noted “one arguable interpretation of this statute is that the ‘shall’ language requires an evidentiary hearing on punitive damages to be held in the event that such damages are sought and an award of compensatory damages is entered against the defendant at trial.” Munson v. C.R. Bard, Inc., 561 F. Supp. 3d 655, 679 (N.D. Miss. 2021). Further, “the Mississippi Supreme Court concluded in the decision of Bradfield v. Schwartz, 936 So. 2d 931, 938 (Miss. 2006):

that the detailed procedure outlined [in section 11-1-65(1)(e)] must be meticulously followed because, without an evidentiary buffer at trial, juries will ultimately confuse the basic issue of fault or liability and compensatory damages with the contingent issue of wanton and reckless conduct which may or may not ultimately justify an award of punitive damages.

Bradfield, 936 So. 2d at 938. The Court analyzes this motion, regarding the tortious interference action, by weighing the parties’ positions against the provisions of Rule 42(b) to determine if bifurcation will: 1) promote convenience, 2) expedite proceedings, or 3) avoid unfair prejudice to a party. The Court carefully considers each factor. However, “only one of these three factors must be met to justify bifurcation.” Daniels v. Loizzo, 178 F.R.D. 46, 47 (S.D.N.Y. 1998). See also Ismail v. Cohen, 706 F. Supp. 243, 251 (S.D.N.Y. 1989), aff’d, 899 F.2d 183 (2d Cir. 1990); Saxion v. Titan-C-

M fg., Inc., 86 F.3d 553, 556 (6th Cir. 1996); and MCI Commc’ns Corp. v. Am. Tel. & Tel. Co., 708 F.2d 1081, 1166 (7th Cir. 1983). A. Prejudice First, the Court considers whether bifurcation will avoid unfair prejudice to the parties. Defendants argue that allowing Plaintiff to “mention or present evidence pertaining to punitive damages during the liability/compensatory damages phase on the tortious interference claim – such as evidence or discussion of Defendants’ respective revenues or net worth – could lead to substantial prejudice against Defendants, especially considering Brown Bottling’s strong local presence in Mississippi, which some Defendants do not have.” Doc. [120] at 5. Defendants also submit that “ordering bifurcation will help to ensure that the jury does not return ‘an inflated compensatory damage award based on consideration of the wrong evidence,’ (i.e., evidence pertaining to punitive damages), during the liability/compensatory damages phase.” Id. Defendants claim that Plaintiff “will not be prejudiced by bifurcation, because the punitive

damages phase of trial will follow immediately after the liability and compensatory damages phase (in the event the Court determines that trial should proceed on the issue of punitive damages), and most witnesses presumably reside and/or do business in Mississippi.” Id. Defendants further argue that bifurcation is necessary to avoid what they perceive as a “real risk of prejudice,” adding: [S]ome Defendants are large companies without the sort of strong local presence Brown Bottling has.

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Brown Bottling Group, Inc. v. Imperial Trading Co., L.L.C., (S.D. Miss. 2022).

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