Evans v. Clemons

872 So. 2d 23, 2003 WL 22077737
CourtCourt of Appeals of Mississippi
DecidedSeptember 9, 2003
Docket2001-CA-01819-COA
StatusPublished
Cited by3 cases

This text of 872 So. 2d 23 (Evans v. Clemons) 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
Evans v. Clemons, 872 So. 2d 23, 2003 WL 22077737 (Mich. Ct. App. 2003).

Opinion

872 So.2d 23 (2003)

Donald EVANS, Appellant,
v.
Odis L. CLEMONS, Appellee.

No. 2001-CA-01819-COA.

Court of Appeals of Mississippi.

September 9, 2003.
Rehearing Denied January 13, 2004.
Certiorari Denied May 6, 2004.

*25 Harry R. Allen, David W. Crane, Gulfport, attorneys for appellant.

Mack A. Bethea, Gulfport, attorney for appellee.

Before SOUTHWICK, P.J., BRIDGES and CHANDLER, JJ.

SOUTHWICK, P.J., for the Court.

¶ 1. The owner of a building appeals the damages awarded against him for breach of his obligations under a lease. We find error in an instruction regarding damages. More fundamentally, we conclude that the plaintiff's own proof of damages was confusing *26 and conflicting, with the defendant's responsibility for the shortcomings of the evidence not being resolved by the judge. We leave open a hearsay issue but invite the trial court to make more detailed findings if the evidence again is offered. We reverse and remand as to liability and damages.

¶ 2. On April 1, 1997, Donald Evans leased a building in the city of Gulfport to Odis Clemons for use as a nightclub. The lease called for different amounts of rent for each year of its three-year term. No rent was to be paid for the first eight months. It was anticipated that substantial repairs and purchases of equipment would be needed. In exchange for the abatement, the lessor Evans would own all equipment placed in the club. Clemons and two partners, Marvin Brundidge and Greg Dampeer, operated the property, called Club Unique, without apparent difficulty until some time in the late summer of 1998.

¶ 3. What happened to cause the rupture among the parties is contested. Clemons contends Evans insisted upon becoming a partner in the venture; Clemons refused, causing Evans to threaten him with a gun. Brundidge claims Evans told him not to return to the premises. Evans claimed Clemons approached him on several occasions about becoming a partner to which he finally assented in the summer of 1998, but then Clemons stopped paying rent. Whether Clemons continued to pay rent after July 1998 was a matter of dispute. After January 1999, when Clemons failed to return to the club, Evans claims Clemons abandoned the lease.

¶ 4. Clemons, Brundidge and Dampeer filed suit against Evans on April 2, 1999. They claimed that they had been forced out of possession of the premises, and that the covenant of quiet enjoyment had also been breached. A jury found against the defendant and awarded $250,000 in actual damages and $100,000 in punitive damages.

DISCUSSION

1. Partnership vs. personal claims

¶ 5. Although all three partners brought suit against Evans, two of them—Brundidge and Dampeer—moved to be dismissed on the eve of trial. Evans did not object. The motion was granted on the basis that only Clemons was in privity of contract with Evans.

¶ 6. Evans now argues that because all partners were not parties to the suit, any damages the partnership itself suffered may not be recovered. Instead, Clemons may recover only for losses, if any, that he had independent of those sustained by the business. There was no partnership document, but no party seriously disputes that Clemons, Brundidge and Dampeer were partners in the operation of Club Unique. Intent, control, and profit sharing form the basis for a partnership even if oral expressions alone provide those terms. Smith v. Redd, 593 So.2d 989, 993 (Miss.1991). We find overwhelming evidence that these three men intended to join in the business together, that each had a role in the club, and all were to share in the profits. There was a partnership.

¶ 7. Generally, if the subject matter of the litigation is partnership property, all partners must be joined. Scott v. Enco, 264 So.2d 409, 411 (Miss.1972). A partnership cause of action belongs to the partnership, not to individual members. Cates v. International Tel. and Tel. Corp., 756 F.2d 1161, 1176 (5th Cir.1985). All began the suit, but only one was left when trial began.

¶ 8. The claims made in this suit explicitly concerned the Club Unique enterprise *27 operated by the three partners. When two of the partners asked to be dismissed, their counsel made no initial explanation of the reason for the dismissal. The trial court stated "I think that's proper given that [Clemons is] the only one that has privity of the lease." Counsel then responded "That's the reason I was doing that, Your Honor." The Court then stated that having Clemons as the sole plaintiff "simplifies and narrows the issues." What that meant is unclear.

¶ 9. The defendant Evans argues that the simplification was to leave the relevant damages solely being those suffered by Clemons as an individual as distinguished from any that he suffered as a partner in Club Unique. For example, since Clemons was Evans' lessee, if the failure of Club Unique had prevented payments to Clemons for the club's sublease of the property, those might have been recoverable damages. No sublease was apparently entered; the lease barred subleases without Evans' approval. In fact, all of Clemons' meaningful potential losses arose from his membership in a partnership. The defendant Evans agrees, and therefore states that the entire array of damage testimony was irrelevant since it did not indicate how Clemons as an individual was injured.

¶ 10. However, even after two partners were dismissed, there was no amendment of the pleadings to remove the claims for losses by Club Unique. The suit continued as one regarding the club, operated as a partnership, yet with only one partner remaining as a party. Perhaps all damages were recoverable if the voluntary departure of the other partners in a suit over partnership damages relinquished their claims to the remaining plaintiff or at least allowed those claims to be resolved in their absence. Rulings by the trial judge, and arguments along the way by plaintiff's counsel, made it plain that it was only the defendant Evans who believed that claims of losses by Club Unique had been removed from the case by the departure of Brundidge and Dampeer.

¶ 11. The partnership had the claim. The partnership consisted of three men; two of them voluntarily departed with partnership claims pending. We conclude that the primary issue is whether the absent partners were indispensable parties for the claims over partnership damages. M.R.C.P. 19. The purpose of Rule 19 is to protect the interests of the absent parties so as to ensure a disposition that is fair and one that is complete. Shaw v. Shaw, 603 So.2d 287, 294 (Miss.1992). We examine the missing individuals' interests to determine whether the parties are indispensable; prejudice to the defendant is irrelevant since he failed to object to dismissal of those parties. Id. To the extent the defendant is arguing that no objection was needed since the necessary effect of the dismissal was to alter the case to one just of damages to Clemons' leasehold interest, we do not find that to be an accurate view of the factual basis for this dismissal.

¶ 12. When Brundidge and Dampeer sought dismissal from the suit, their counsel stated that it was because Clemons was the only signatory to the lease with Evans. The law of agency applies to partnerships, though. Miss.Code Ann. § 79-12-7(3) (Rev.2001).

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Cite This Page — Counsel Stack

Bluebook (online)
872 So. 2d 23, 2003 WL 22077737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-clemons-missctapp-2003.