Carl Boyanton, Individually and on behalf of Farmer Fresh Produce, Inc. v. Brothers Produce, Inc. and Brent Erenwert;

Court of Appeals of Mississippi·Decided September 1, 2020·No. NO. 2019-CA-00269-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2019-CA-00269-COA

CARL BOYANTON, INDIVIDUALLY AND ON APPELLANT BEHALF OF FARMER FRESH PRODUCE, INC.

v.

BROTHERS PRODUCE, INC. AND BRENT APPELLEES ERENWERT

DATE OF JUDGMENT: 12/28/2018 TRIAL JUDGE: HON. CLAIBORNE McDONALD COURT FROM WHICH APPEALED: PEARL RIVER COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANT: KRISTOPHER W. CARTER ATTORNEYS FOR APPELLEES: CHRISTOPHER HOWELL MURRAY KRISTI ROGERS BROWN

NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED IN PART; REVERSED AND REMANDED IN PART - 09/01/2020 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE CARLTON, P.J., WESTBROOKS AND LAWRENCE, JJ.

CARLTON, P.J., FOR THE COURT:

¶1. Carl Boyanton, on his behalf and on behalf of Farmer Fresh Produce Inc. (Boyanton), sued Brent Erenwert, Brothers Produce Inc. (Brothers Produce), Michael Alise,1 Christi Alise, and Gulf Coast Produce Distributers Inc. (Gulf Coast Produce), claiming that the parties had formed a joint venture pertaining to the storage, transport, supply, and distribution of produce using a warehouse Boyanton owned in Picayune, Mississippi. Boyanton alleged contractual and negligence-based causes of action against the defendants. The Pearl River

1 Unless otherwise indicated, references to “Alise” below are to “Mike” Alise.

County Circuit Court granted summary judgment in the defendants’ favor on all of Boyanton’s claims against them and dismissed Boyanton’s lawsuit with prejudice. Boyanton appeals. In the course of the appeal, the Alises and Gulf Coast Produce settled with Boyanton. The remaining appellees are Erenwert and Brothers Produce.

¶2. As addressed below, we find no error in the circuit court’s decision to grant summary judgment in Erenwert and Brothers Produce’s favor on Boyanton’s claims for breach of contract based on the alleged joint venture, breach of contract based on the Picayune warehouse sublease and sub-sublease, promissory estoppel, negligent misrepresentation, and fraudulent misrepresentation. We therefore affirm the circuit court’s summary judgment on these claims. Regarding Boyanton’s equitable estoppel claim, we find no error in the circuit court’s decision to grant summary judgment in Erenwert and Brothers Produce’s favor on Boyanton’s equitable estoppel claim relating to the alleged joint venture, and we therefore affirm the circuit court’s summary judgment on this claim. However, based upon our review of the record, we find that a genuine issue of material fact exists with respect to Boyanton’s equitable estoppel claim relating to the Picayune warehouse sublease and sub-sublease, and we therefore reverse the circuit court’s decision to grant summary judgment in Erenwert and Brothers Produce’s favor on this specific claim.

STATEMENT OF FACTS AND PROCEDURAL HISTORY

¶3. In July 2016, Boyanton, on his behalf and on behalf of Farmer Fresh, sued Erenwert, Brothers Produce, the Alises, and Gulf Coast Produce based upon an alleged joint venture

that Boyanton claims was formed “among the parties” relating to the produce storage, transport, supply, and distribution out of a warehouse that Boyanton owned in Picayune, Mississippi. He alleged causes of action for “breach of contractual agreement(s) and detrimental reliance,” negligent misrepresentation, tortious interference with prospective business relations, and promissory estoppel. He later also asserted claims for equitable estoppel and fraudulent misrepresentation. The Pearl River County Circuit Court granted summary judgment in the defendants’ favor on all of these claims and dismissed Boyanton’s lawsuit with prejudice.

¶4. Boyanton appealed. During the course of this appeal, the appellees Mike Alise, Christi Alise, and Gulf Coast Produce were dismissed with prejudice based upon their representation that they “settled this matter” with Boyanton. Erenwert and Brothers Produce are the only appellees. We turn now to a discussion of the facts relating to this appeal.

¶5. Boyanton was deposed in this matter in March 2017. He testified that he is the owner and president of Farmer Fresh, a company that at the time of his deposition was primarily in the produce brokering business. Boyanton and Farmer Fresh own a 100,000 square-foot warehouse in Picayune, Mississippi. In 2013, Boyanton sold the produce-distribution portion of Farmer Fresh’s business to Andrew Mercier and Merchants Foodservice (an entity owned by Mercier). Boyanton retained the name Farmer Fresh. The ownership of the Picayune warehouse is subject to the terms of the 2013 purchase agreement with Mercier. Specifically, the warehouse is covered by a self-renewing twelve-month lease between Farmer Fresh and

another entity owned by Mercier. This lease contains a requirement that Mercier eventually purchase the warehouse. Farmer Fresh received $10,000 per month under this lease.

¶6. Erenwert was deposed in this matter in May 2018. He testified that Brothers Produce is a produce distributer located in and doing business in Houston, Texas. During the relevant time period, Brothers Produce conducted most of its business in the surrounding Houston area and western Louisiana. At all times relevant to the underlying lawsuit, Erenwert was the president of Brothers Produce. As noted, Gulf Coast Produce and its principals, Mike and Christi Alise, were also defendants in the underlying lawsuit. Gulf Coast Produce is a produce distributor located in Biloxi, Mississippi, and provided services primarily in the south Mississippi and south Alabama areas during the relevant time period.

¶7. The record reflects that in early 2015, Gulf Coast Produce and Brothers Produce saw a potential opportunity to grow their respective businesses into the Louisiana market. In order to explore this possibility, Mike Alise (for Gulf Coast Produce) and Erenwert (for Brothers Produce) had discussions to determine if the two companies could potentially “join forces” and compete for business in the New Orleans and Baton Rouge areas, particularly casino businesses in those markets. Erenwert testified that in discussing this idea, they talked about using the name “Gulf Coast Brothers” (a combination of both entities’ names) for this project. Erenwert and Alise were both quoted in a March 2016 article in a trade publication, The Packer, about their plans to form Gulf Coast Brothers and operate out of “[a] 90,000-square-foot distribution facility in Picayune, Miss[issippi].”

¶8. As a result of these conversations between Gulf Coast Produce and Brothers Produce, Alise reached out to Boyanton in February of 2015 for his insights regarding the produce distribution market in Louisiana. Boyanton’s company, Farmer Fresh, had been involved in the Louisiana markets before Boyanton sold the company in 2013.

¶9. According to Boyanton, after several conversations, Farmer Fresh (Boyanton), Gulf Coast Produce (Alise), and Brothers Produce (Erenwert) began discussing “the possibility of a joint venture.” When asked to elaborate on the parties’ discussions, Boyanton said that they “discuss[ed] the potential of us putting together a joint venture to take and get all the business in Louisiana.” Boyanton could not state with specificity when the discussions with Alise and Erenwert reached the point where there was an alleged agreement, but he thought it occurred in the middle of 2015.

¶10. Boyanton admitted that there was never any written memorialization of any agreement other than what may appear in text messages or emails. Regarding Erenwert, specifically, Boyanton testified that there was only one text exchange between him and Erenwert because “[he] talked to [Erenwert] in person.” Boyanton also testified that Erenwert “flew in anywhere from four to six times to see [Boyanton and Alise] and sit down and talk about it.”

¶11. In his deposition, Boyanton described the proposed business plan as follows:

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Carl Boyanton, Individually and on behalf of Farmer Fresh Produce, Inc. v. Brothers Produce, Inc. and Brent Erenwert;, (Mich. Ct. App. 2020).

Carl Boyanton, Individually and on behalf of Farmer Fresh Produce, Inc. v. Brothers Produce, Inc. and Brent Erenwert; (Carl Boyanton, Individually and on behalf of Farmer Fresh Produce, Inc. v. Brothers Produce, Inc. and Brent Erenwert;) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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