First State Bank of Holly Springs v. Wyssbrod

124 S.W.3d 566, 2003 Tenn. App. LEXIS 511
CourtCourt of Appeals of Tennessee
DecidedJuly 23, 2003
StatusPublished
Cited by13 cases

This text of 124 S.W.3d 566 (First State Bank of Holly Springs v. Wyssbrod) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First State Bank of Holly Springs v. Wyssbrod, 124 S.W.3d 566, 2003 Tenn. App. LEXIS 511 (Tenn. Ct. App. 2003).

Opinion

*568 OPINION

W. PRANK CRAWFORD, P.J., W.S.,

delivered the opinion of the court,

in which DAVID R. FARMER, J. and HOLLY M. KIRBY, J., joined.

This case involves the enrollment of Mississippi judgments pursuant to the Uniform Enforcement of Foreign Judgments Act, T.C.A. § 26-6-101 et seq. Appellant, a Tennessee attorney, was admitted, pro hac vice by a Mississippi trial court, to represent a plaintiff client in a civil suit. Appellees-defendants in the Mississippi proceeding were, inter alia, awarded judgments against appellant and his client for attorney fees and expenses pursuant to the Mississippi Litigation Accountability Act of 1988, Miss.Code Ann. § 11-55-1, et seq. Appellees’ petition to enroll the foreign judgments against appellant was granted by the trial court, and appellant appeals. We affirm.

These consolidated cases involve actions filed pursuant to the Uniform Enforcement of Foreign Judgments Act, codified at Tennessee Code Annotated § 26-6-101 et seq., to enroll and enforce in Tennessee judgments entered by the circuit court of Mississippi against appellant Martin H. Aussenberg (“Aussenberg”). Appellant Aussenberg is a licensed Tennessee attorney engaged in the private practice of law in Memphis, Tennessee. In May 1995, Aussenberg was hired as lead counsel to represent Quality Pallets, Inc. (“QPI”), and its president William Wyssbrod (“Wyssbrod”) d/b/a W.W. Companies (“WWC”) in an action filed by Wyssbrod, individually and derivatively on behalf of QPI and WWC, against Jackson H. Wittjen (“Wittjen”) and First State Bank of Holly Springs, Mississippi (“First State”). The complaint, filed in the Circuit Court of DeSoto County, Mississippi, alleged actions for tortious breach of contract, bad faith, and interference with business relations. 1 For the purpose of representing Quality Pallets in this litigation, Aussenberg was admitted to practice in Mississippi pro hac vice.

In presenting the pertinent procedural history relating to the original claims filed by Wyssbrod individually and derivatively on behalf of QPI and WWC, and the counterclaims filed by Wittjen and First State, we quote at length from the Mississippi Supreme Court’s decision in Wyssbrod v. Wittjen, 798 So.2d 352 (Miss.2001):

*569 At the time the initial complaint was filed, the plaintiffs were represented by Martin H. Aussenberg, a member of the Tennessee bar. Leigh A. Rutherford served as Mississippi counsel for the plaintiffs until November 1995, when Sidney Beck was substituted for Rutherford. Beck requested and was allowed to withdraw in January 1996, and was replaced by Omar D. Craig.
An amended complaint was later filed, naming QPI and WWC as plaintiffs. Wyssbrod was not listed as a plaintiff on the second complaint. On June 10, 1996, a third and final amended complaint was filed naming QPI and Wyss-brod, d/b/a WWC, as plaintiffs. 2 Wittjen asserted a counterclaim for dissolution of QPI, and First State Bank counterclaimed against QPI and Wyssbrod for recovery of the amounts of the overdrafts.
On October 18, 1996, the circuit court entered a scheduling order in which it directed QPI, through Wyssbrod, to report all business transactions of QPI to Wittjen’s counsel on fourteen-day intervals. By order dated January 16, 1997, the court found that Wyssbrod had failed to provide a current set of corporate records as previously ordered by the court. The court found Wyssbrod in contempt and entered sanctions against him in the amount of $1,000. The court stated that the sanctions were to be paid from Wyssbrod’s personal funds and not from the funds of QPI.
On January 27, 1997, the court ordered that the parties and counsel appear for a status conference on January 30, 1997. On January 30, 1997, Wyss-brod filed a motion for relief from the order sanctioning Wyssbrod. Wyssbrod also filed, on that same day, a Motion to Dismiss Complaint and Counterclaims based on the filing of a bankruptcy petition by QPI that morning. 3 The status conference was held despite the filing of the bankruptcy petition. Aussenberg did not appear at the conference. 4 The court found that its previous sanctions against Wyssbrod were more appropriately placed on Aussenberg. The court then ordered that Aussenberg, rather than Wyssbrod, pay the $1,000 in sanctions. Pursuant to the court’s order of February 18, 1997, the case was stayed pending the outcome of the bankruptcy proceedings.
On April 1,1998, the bankruptcy court entered an Order and Notice of Dismissal of Adversary Proceeding of State Court Actions Removed to U.S. Bankruptcy Court and Abandonment of Property. The order dismissed the suit of QPI against Wittjen and First State Bank and assigned any remaining claims of QPI to Wittjen. The action proceed *570 ed in the circuit court in September 1998. 5
Wittjen and First State Bank filed motions for summary judgment. On January 5, 1999, the circuit court granted summary judgment in favor of Wittjen and First State Bank. The court noted that all claims of QPI against Wittjen and First State Bank were dismissed by order of the bankruptcy court. The court dismissed with prejudice all claims of Wyssbrod against Wittjen and First State Bank. The court entered judgment in favor of First State Bank on its counterclaim against Wyss-brod. The court awarded First State Bank attorney’s fees and expenses pursuant to the contract between the parties and awarded the same to Wittjen pursuant to Miss.Code Ann. § 79-4-7.46 (1996), stating that the action was without reasonable cause. The court found that Wyssbrod’s complaints were filed without substantial justification entitling Wittjen and First State Bank to recover attorney’s fees and expenses pursuant to the Litigation Accountability Act of 1988, Miss.Code Ann. § 11-55-5(1) (Supp.2000). The court also stated that Wyssbrod had no authority to expend corporate funds to retain counsel for the benefit of the corporation or for himself individually and found that Wittjen was entitled to judgment against Wyssbrod in an amount equal to the corporate funds expended to pay attorney’s fees.
The court held a hearing on January 19, 1999, to determine the reasonable and necessary expenses and attorney’s fees incurred by Wittjen and First State Bank and to determine whether Wyss-brod’s attorneys should be personally liable for any of the fees and expenses. In the resulting order of the court, the court considered each factor of Miss. Code Ann.

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

Related

Mantis Funding LLC v. Buy Wholesale Inc.
Court of Appeals of Tennessee, 2022
The Wolf Organization, Inc. v. TNG Contractors, LLC
Court of Appeals of Tennessee, 2019
Gary Guseinov v. Synergy Ventures, Inc
467 S.W.3d 920 (Court of Appeals of Tennessee, 2014)
Minor Miracle Productions, LLC v. Randy Starkey
Court of Appeals of Tennessee, 2012
Cadlerock, LLC v. Sheila R. Weber
Court of Appeals of Tennessee, 2011
Pearl Equipment, LLC v. Cartwright Construction Co.
Court of Appeals of Tennessee, 2010
W&T, Inc. v. Carol Ham
Court of Appeals of Tennessee, 2009
Mitrano v. Houser
240 S.W.3d 854 (Court of Appeals of Tennessee, 2007)
Shepard Barbash v. Monty Bruell & Anthony Smith
Court of Appeals of Tennessee, 2001

Cite This Page — Counsel Stack

Bluebook (online)
124 S.W.3d 566, 2003 Tenn. App. LEXIS 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-state-bank-of-holly-springs-v-wyssbrod-tennctapp-2003.