Derr Plantation, Inc. v. Thomas L Swarek

CourtMississippi Supreme Court
DecidedOctober 25, 2007
Docket2007-IA-02031-SCT
StatusPublished

This text of Derr Plantation, Inc. v. Thomas L Swarek (Derr Plantation, Inc. v. Thomas L Swarek) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Derr Plantation, Inc. v. Thomas L Swarek, (Mich. 2007).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2007-IA-02031-SCT

DERR PLANTATION, INC.

v.

THOMAS L SWAREK AND THOMAS A. SWAREK

DATE OF JUDGMENT: 10/25/2007 TRIAL JUDGE: HON. VICKI R. BARNES COURT FROM WHICH APPEALED: ISSAQUENA COUNTY CHANCERY COURT ATTORNEYS FOR APPELLANT: ROBERT R. BAILESS KENNETH B. RECTOR ATTORNEYS FOR APPELLEES: BRADLEY S. CLANTON WALKER (BILL) JONES BARRY W. FORD CHARLES WILLIS PICKERING ERIC WYNN HOSPODOR NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: REVERSED AND REMANDED - 08/06/2009 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE WALLER, C.J., RANDOLPH AND CHANDLER, JJ.

CHANDLER, JUSTICE, FOR THE COURT:

¶1. Thomas L. Swarek and Thomas A. Swarek (the Swareks) filed a complaint in the

Chancery Court of Issaquena County against Derr Plantation, Inc. (DPI), a Mississippi

corporation. The complaint alleged that DPI had breached a contract to lease and sell to the

Swareks an operational farm including acreage, equipment, and livestock. The Swareks

requested remedies including specific performance, a preliminary injunction, and compensatory and punitive damages. After the chancellor denied both parties’ summary

judgment motions, the Swareks successfully petitioned the chancery court to transfer the case

to circuit court.

¶2. This Court granted DPI’s petition for an interlocutory appeal of the transfer order. See

Miss. R. App. P. 5. We find that because this case was within the jurisdiction of the

chancery court, the chancery court erred by ordering its transfer to the circuit court.

Therefore, we reverse the transfer order and remand this case to the Chancery Court of

Issaquena County for further proceedings consistent with this opinion.

FACTS

¶3. In December 2004, Thomas L. Swarek entered into negotiations with DPI for the lease

and purchase of an approximately 8,350-acre farm known as Derr Plantation, which lies in

Issaquena and Sharkey Counties along the Mississippi River. The contemplated

lease/purchase included real estate, equipment, and livestock. On March 1, 2005, the

Swareks filed a complaint and a lis pendens notice in the Chancery Court of Issaquena

County. In the complaint, the Swareks asserted that the parties had negotiated a contract

providing for the Swareks’ lease and purchase of Derr Plantation; the Swareks attached the

contract documents to the complaint. These documents provided for a lease price of

$750,000 payable over a two-year period and a sale price of 7.5 million dollars. The Swareks

alleged that DPI had breached the contract after the Swareks refused to pay a higher price for

the property, and that DPI’s actions regarding the breach were willful, intentional, and

fraudulent.

2 ¶4. The complaint stated that the Swareks were ready, willing, and able to perform the

contract and were willing to close at the contract price “either now or later, and that “[i]t is

difficult to measure the damages for refusing to sell the property to Plaintiffs, hence Plaintiffs

are requesting specific performance of the contract of sale and are filing a lis pendens with

this complaint.” The complaint included the following counts:

COUNT ONE – SPECIFIC PERFORMANCE

7. Because of the nature of the breach of the contract herein, Plaintiffs are entitled to an order of this court directing specific performance ordering the Defendants to carry out the terms of the contract documents Exhibit A, B, and C.

COUNT TWO – PRELIMINARY INJUNCTION

8. Because the failure to permit the Plaintiffs to take possession of the property under the lease within the next 30 days will cause them immediate damage for which there is no adequate remedy at law, they are entitled to a preliminary injunction granting them a lease of the property according to the terms specified in the contract documents.

COUNT THREE – DAMAGES

9. Even if the Defendants go ahead and deliver the property according to the contract, the Plaintiffs have been damaged in that the cost of any loan will now be at least 1% per annum higher than it would have been had there been no breach. For breach of the agreement to lease, Plaintiffs are entitled to actual and consequential damages of not less than $500,000.00. For breach of the agreement to convey the equipment and cattle, Plaintiffs are entitled to actual and consequential damages of not less than $175,000.00. For breach of the agreement to sell the real estate, Plaintiffs are entitled to recover actual and consequential damages of not less than $1,000,000.00. By reason of its willful, intentional, and gross breach of this contract, [Plaintiffs] are entitled to recover punitive damages of not less than $5,000,000.00 together with reasonable attorneys fees and costs. Plaintiffs are entitled to pierce the corporate veil and are entitled to a judgment against the Defendants, jointly and severally.

3 The Swareks prayed for a preliminary injunction and for “specific performance according

to the terms of the contract documents and/or award actual and consequential damages of

$1,750,000.00 and punitive damages of $5,000,000.00 together with attorney’s fees and costs

. . . .”

¶5. DPI filed an answer without contesting the jurisdiction of the trial court, and a

counterclaim for reasonable attorney’s fees and costs and for damages suffered as a result of

the filing of the lis pendens notice. In the answer, DPI’s primary contention was that there

was no breach of contract because the parties had never formed a contract. Some discovery

ensued and, more than one year after filing their complaint, the Swareks filed a motion for

partial summary judgment on April 8, 2006, on the limited question of whether a valid

contract existed under Mississippi law. DPI responded and filed its own competing motion

for summary judgment, asserting that there was no contract. On December 4, 2006, the

chancellor denied both parties’ summary judgment motions, finding that there were genuine

issues of material fact for trial. The Swareks petitioned this Court for an interlocutory

appeal, which was denied.

¶6. On June 1, 2007, two years and three months after the Swareks initiated the case in

chancery court, and after suffering adverse rulings from the chancery court and this Court,

they filed a motion to transfer the case to circuit court. At the motion hearing, the Swareks

acknowledged their complaint’s request for specific performance, but they contended that

due to the passage of time, they now preferred the alternatively-pleaded remedy of

compensatory and punitive damages. The Swareks argued that when they filed the

complaint, their main issue for decision was enforcement of a contract, but once the

4 purported contract’s validity came into question, the nature of the case changed to a legal

claim for breach of contract. Invoking a right to a jury trial, the Swareks contended that the

breach-of-contract issue appropriately should be tried by a jury in circuit court. DPI argued,

inter alia, that the case should remain in chancery court because the Swareks’ complaint for

specific performance was within the jurisdiction of the chancery court and the Swareks’

request for a transfer was belated.

¶7. The chancery court ruled that the complaint ultimately sounded in breach of contract,

and that the chancery court lacked jurisdiction over breach-of-contract claims. The chancery

court granted the motion to transfer, and it entered an order transferring the case to the

Circuit Court of Issaquena County.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dockins v. Allred
849 So. 2d 151 (Mississippi Supreme Court, 2003)
Hutton v. HUTTON, ETC.
119 So. 2d 369 (Mississippi Supreme Court, 1960)
Busching v. Griffin
542 So. 2d 860 (Mississippi Supreme Court, 1989)
ERA Franchise Systems, Inc. v. Mathis
931 So. 2d 1278 (Mississippi Supreme Court, 2006)
Tyson Breeders, Inc. v. Harrison
940 So. 2d 230 (Mississippi Supreme Court, 2006)
Tillotson v. Anders
551 So. 2d 212 (Mississippi Supreme Court, 1989)
Bradfield v. Schwartz
936 So. 2d 931 (Mississippi Supreme Court, 2006)
Trustmark National Bank v. Johnson
865 So. 2d 1148 (Mississippi Supreme Court, 2004)
City of Starkville v. 4-County Elec. Power Ass'n
909 So. 2d 1094 (Mississippi Supreme Court, 2005)
Security Builders, Inc. v. Southwest Drug Co.
147 So. 2d 635 (Mississippi Supreme Court, 1962)
In Re Estate of Richardson
903 So. 2d 51 (Mississippi Supreme Court, 2005)
Lee v. Coahoma Opportunities, Inc.
485 So. 2d 293 (Mississippi Supreme Court, 1986)
Roberts v. Spence
209 So. 2d 623 (Mississippi Supreme Court, 1968)
Issaquena Warren Counties Land Co., LLC v. WARREN CTY.
996 So. 2d 747 (Mississippi Supreme Court, 2008)
Union National Life Ins. Co. v. Crosby
870 So. 2d 1175 (Mississippi Supreme Court, 2004)
Southern Leisure Homes, Inc. v. Hardin
742 So. 2d 1088 (Mississippi Supreme Court, 1999)
IP TIMBERLANDS OPERATING CO. LTD. v. Denmiss
726 So. 2d 96 (Mississippi Supreme Court, 1998)
Durant v. Humphreys County Memorial Hosp.
587 So. 2d 244 (Mississippi Supreme Court, 1991)
Rogers v. Eaves
812 So. 2d 208 (Mississippi Supreme Court, 2002)
Osborne v. Bullins
549 So. 2d 1337 (Mississippi Supreme Court, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
Derr Plantation, Inc. v. Thomas L Swarek, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derr-plantation-inc-v-thomas-l-swarek-miss-2007.