Chester Short and Linda Short v. The Break Land Company, LLC

Court of Appeals of Mississippi·Decided October 1, 2024·No. 2022-CA-01180-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2022-CA-01180-COA

CHESTER SHORT AND LINDA SHORT APPELLANTS v. THE BREAK LAND COMPANY, LLC APPELLEE

DATE OF JUDGMENT: 11/14/2022 TRIAL JUDGE: HON. ALBERT B. SMITH III COURT FROM WHICH APPEALED: BOLIVAR COUNTY CIRCUIT COURT, FIRST JUDICIAL DISTRICT

ATTORNEYS FOR APPELLANTS: JOHN THOMAS LAMAR III TAYLOR ALLISON HECK

ATTORNEYS FOR APPELLEE: ARNULFO URSUA LUCIANO JAMIE FERGUSON LEE

BETHANY ANN TARPLEY

NATURE OF THE CASE: CIVIL - TORTS OTHER THAN PERSONAL INJURY & PROPERTY DAMAGE

DISPOSITION: AFFIRMED - 10/01/2024 MOTION FOR REHEARING FILED:

BEFORE BARNES, C.J., SMITH AND EMFINGER, JJ.

BARNES, C.J., FOR THE COURT:

¶1. This lawsuit stems from the spring of 2017 when farmers Chester and Linda Short had severe damage to their crops from deer eating their soybean plants.1 The deer were traveling from land controlled by nearby hunting clubs to the Shorts’ crops. To protect their livelihood, the Shorts obtained depredation permits to shoot the deer on their cropland. The Shorts allege that in response, the hunting club to which they belonged, ‘27 Break Hunting

1 This case is the fourth lawsuit and third appeal to arise out of the same operative facts.

Club Inc. (Break Hunting Club), adopted a rule in June 2017 stating any action taken by a member that is deemed detrimental to the club may result in fines and suspension or revocation of privileges. The Shorts were members of this hunting club due to their joint possession of three equity membership interests in The Break Land Company LLC (Break Land), which owns the hunting club’s land. These three membership interests have an aggregate total market value of over $1,000,000.

¶2. In May 2020, the Shorts sued several defendants, including Break Hunting Club, for the deer’s damage to their 2017 crops.2 In response to the lawsuit, in September 2020, Break Hunting Club suspended all the Shorts’ membership privileges. In September 2021, the Shorts filed the instant lawsuit in the Bolivar County Circuit Court against Break Land, Break Hunting Club, and several individual directors of the hunting club for claims related to the suspension or revocation of the Shorts’ hunting club membership. The lawsuit’s claims included corporate freezeout, breach of fiduciary duty, conversion, breach of contract, bad faith, and intentional infliction of emotional distress. Break Land filed a motion for judgment on the pleadings under Mississippi Rule of Civil Procedure 12(c), arguing the Shorts had stated a claim against only Break Hunting Club and not Break Land. After a hearing, the trial court granted the motion, dismissing Break Land with prejudice. The trial court certified the judgment as final as to Break Land under Mississippi Rule of Civil

2 The Shorts and their farming operation (JLS Farm Partnership) sued Break Hunting Club and others in the Bolivar County Circuit Court. Claims included tortious interference with business relations, breach of contract, civil conspiracy, and private nuisance, among other claims. That case’s appeal is currently before this Court, styled JLS Farm Partnership, Chester Short and Linda Short v. ‘27 Break Hunting Club, Inc., ‘27 Break LLC and Kennedy Properties, LLC, No. 2023-CA-00434-COA.

Procedure 54(b); thus, the appeal is properly before this Court.

STATEMENT OF FACTS AND PROCEDURAL HISTORY

¶3. In the spring of 2017, the Shorts’ farming operation sustained heavy crop damage when hundreds of deer from nearby land owned by Break Land came onto their leased cropland and ate new soybean plants. In response, the Shorts obtained depredation permits from the Mississippi Department of Wildlife, Fisheries and Parks (Department of Wildlife) to shoot the encroaching deer outside of hunting season. When nearby hunting clubs, including Break Hunting Club, learned of the permits, they became upset. The Shorts claim that the clubs took various actions to undermine their farming operation, including loss of the permits,3 loss of the farming contract to certain land, and loss of soybean yields. Further, on June 16, 2017, the board of directors of Break Hunting Club adopted the following rule:

The Board of Directors shall enforce the Rules as adopted by the Board. It may require any member whose actions are detrimental to the club’s membership, or its values, ON or OFF of the Club property to appear before the Board; and after hearing and/meeting the Board may impose such fines or revocation of privileges as it deems in the best interest of the Club and its members; including expulsion, revocation of hunting privileges and use of Club facilities for such periods as are necessary.

(Emphasis added). The Shorts claim the board instituted this rule to punish them for protecting their farming livelihood.

¶4. About three years after this rule was instituted, on May 29, 2020, the Shorts and JLS

3 The Shorts filed a complaint in the Hinds County Chancery Court to enjoin the Department of Wildlife from terminating the permits. The case’s appeal is currently before this Court in Chester Short and JLS Farm Partnership v. Dr. Sam Polles, In His Official Capacity as Executive Director of The Mississippi Department of Wildlife, Fisheries and Parks and The Mississippi Department of Wildlife, Fisheries and Parks, No. 2023-CA- 00607-COA.

Farm Partnership filed a lawsuit against Break Hunting Club and others in the Bolivar County Circuit Court to recover for lost crop yields and other damages. See supra note 2. After process was served on Break Hunting Club, its board of directors sent a letter to the Shorts stating the board would determine whether the Shorts had violated this rule by filing this lawsuit, and what penalties, if any, should be imposed. Then, in a letter dated September 17, 2020, the board of directors for Break Hunting Club suspended all the Shorts’ privileges of ownership in Break Hunting Club, using the rule its board adopted in June 2017. The letter stated, in part:

The Board at its meeting found that your actions have been so detrimental to the Club, its Members and its activities as to warrant impositions of penalties against you as follows:

Hunting, fishing and use of the Clubs rights are suspended for Chester Short, Linda Short . . . and any immediate family member for an indefinite time and at least until the litigation currently pending in the Circuit Court . . . of Bolivar County styled JLS Farm Partnership . . . Chester, Linda . . . Short vs. 27 Break Hunting Club, Inc., 27 Break, LLC . . . or any successor litigation against the same defendants remains unresolved. This includes any appeals of said litigation or a similar litigation. Once the litigation is resolved the Board may reconsider the suspensions.

The suspension rights applies to your 27 Break Membership numbers 4 and 5.

....

The suspension not only applies to hunting and fishing but to any and all use of club facilities or club properties. You are aware that Break Land Company has leased all property except for the lots so 27 Break Hunting Club controls access to these lands as well as the hunting and fishing rights.

Under the rules of the Club your memberships . . . for future years will be deemed Inactive which will require a payment of one-half (½) of the normal dues and assessments to remain as Inactive memberships.

¶5. On September 14, 2021, the Shorts filed the instant lawsuit in response to the revocation of their memberships in the hunting club, suing both Break Land and Break Hunting Club, as well as several directors of Break Hunting Club. The September 2020 letter was attached to the complaint as the only exhibit. In the complaint, the Shorts explained that they had been longtime members of “the hunting club and land company.” They and their family members had abided by all the club’s rules and timely paid their dues and assessments. The Shorts also asserted:

The hunting club is not a mere social club open to members by invitation but is integrally tied to and is a material component of the Plaintiffs’

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