Henry Marquar v. Brian C. Schweda

Court of Appeals of Mississippi·Decided March 16, 2021·No. 2019-CA-00632-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2019-CA-00632-COA

HENRY MARQUAR APPELLANT v. BRIAN C. SCHWEDA APPELLEE

DATE OF JUDGMENT: 03/12/2019 TRIAL JUDGE: HON. CHRISTOPHER LOUIS SCHMIDT COURT FROM WHICH APPEALED: HANCOCK COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANT: HENRY MARQUAR (PRO SE) ATTORNEY FOR APPELLEE: DAVID P. SULLIVAN NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED - 03/16/2021 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE CARLTON, P.J., GREENLEE AND McDONALD, JJ.

CARLTON, P.J., FOR THE COURT:

¶1. Henry Marquar appeals from the Hancock County Circuit Court’s judgment dismissing his complaint for breach of contract. On appeal, Marquar asserts the following assignments of error: (1) the trial court erred in refusing to allow Marquar to amend his complaint to add a party; (2) the trial court erred by holding a bench trial instead of a jury trial; (3) the trial court improperly transferred venue from Hancock County to Harrison County with no petition from either party; (4) the trial court erred by failing to hold a pre-trial conference; (5) the trial court erred in holding a trial despite the failure to set the case on the trial docket and despite Marquar not receiving all requested discovery; and (6) the trial court erred in not ordering the record to be supplemented with missing evidence.

¶2. After our review, we find the trial court did not err in dismissing Marquar’s case with prejudice. We therefore affirm the trial court’s judgment.

FACTS

¶3. Marquar filed a complaint for breach of contract against Brian Schweda, in his individual capacity. Marquar alleged that he and Schweda entered into an agreement for Schweda to purchase Marquar’s metal recycling and auto salvage parts business, Gulf Coast Recyclers LLC (Gulf Coast Recyclers). In his complaint, Marquar set forth the alleged terms of the agreement; namely, that Schweda agreed to lease Marquar’s property for the amount of $2,000 per month and agreed to purchase Marquar’s business license for $20,000. Marquar claimed that he prepared a standard lease and purchase contract that detailed the entire agreement. However, Marquar admitted in the complaint that Schweda never reviewed or signed the written agreement. Marquar attached a document titled “Commercial Lease Agreement” to his complaint as Exhibit A. This agreement was dated June 1, 2014. The agreement was not signed by Marquar or Schweda.

¶4. Marquar alleged that Schweda began operating his business on Marquar’s property in June 2014. Marquar claimed that during the ten-month period that Schweda operated this business, Schweda used Marquar’s Hancock County business permit and Marquar’s property, but Schweda never made any payments to Marquar. Marquar stated that Schweda agreed to install a seventy-foot truck scale at his own expense, and Schweda brought in an excavator to help with digging the foundation. However, Marquar claimed that Schweda refused to

complete the installation of the truck scale. Marquar stated that Schweda closed his business without any notice to Marquar. As a result, Marquar filed a number of liens on the scale and excavator. In his complaint, Marquar sought the following damages: $20,000 plus 8% interest for use of his scrap metal license; $48,000 plus 8% interest for 24 months of rent; $15,000 to complete or remove the truck scale; $10,000 for the use of Marquar’s scale and forklift; $2,000 to repair damage to the building caused by one of Schweda’s drivers; $8,000 to repair damage to a slab; and an undetermined amount to remove contaminated soil.

¶5. Schweda filed his amended answer and counterclaim1 on December 16, 2015. Schweda asserted that Marquar “failed to perform conditions precedent for the lease” and that no written lease agreement was ever executed between the parties. He alleged that Marquar wrongfully converted Schweda’s excavator and caused damage to it. Schweda also alleged that Marquar damaged the truck scale, leaving Schweda unable to operate the scale or operate his business.

¶6. On January 27, 2016, Marquar filed a “motion for leave to amend his complaint pursuant to [Mississippi Rule of Civil Procedure] 15(a), [Mississippi Rule of Civil Procedure] 20(a) and [Mississippi Rule of Civil Procedure] 15(d).” In his motion, Marquar requested permission “to add Stella Pierson as a plaintiff to [the] action” pursuant to Rule 20(a). Marquar explained that Pierson was his business partner, and she owned half of Gulf Coast Recyclers until Marquar sold the business to Schweda. Marquar alleged that Pierson

1 Schweda eventually withdrew his counterclaim.

“remains unpaid for her half of the sale of the business plus interest since [Schweda] never remitted the agreed upon sale price of $20,000 for the purchase of the business.”

¶7. On February 3, 2016, the trial court entered an order denying Marquar’s motion as untimely filed. The trial court explained that pursuant to the August 18, 2015 scheduling order, all motions to join additional parties had to be filed by September 18, 2015.

¶8. The trial court held a bench trial in the matter on August 10, 2018. At trial, Marquar claimed that he and Schweda entered into a handshake agreement for the purchase of Marquar’s property and business license. During cross-examination, Marquar admitted that he had no lease agreement with Schweda or his business, Quick Recovery of Mississippi Incorporated (Quick Recovery).

¶9. As for his alleged damages, Marquar introduced one exhibit, a document titled “Statement.” The document, dated December 1, 2015, is an invoice purportedly from one of Marquar’s businesses, Southern Auto Salvage, to Schweda’s business, Quick Recovery of Mississippi Incorporated (“Quick Recovery”). The invoice listed out a total amount of damages as $198,000 and itemized the alleged damages. However, during cross- examination, Marquar admitted that he “made up” the rental amount, created numbers, and put the numbers on the invoice in December 2015, nearly seven months after filing his complaint. Marquar also admitted that he never presented the invoice to Schweda or anyone from Quick Recovery prior to filing his complaint.

¶10. At trial, Schweda argued that Marquar was never an owner of Gulf Coast Recyclers,

and therefore Marquar lacked standing to file the complaint. During cross-examination, Schweda presented Marquar with a number of documents regarding the corporate entities involved in this case. The first exhibit, D-1, showed that Pierson formed Gulf Coast Recyclers on May 18, 2012. The record reflects that at the time of filing the registration papers for the company and in subsequent annual reports, Pierson was listed as both the registered agent and the manager of the LLC, and she was the only person associated with the entity. Marquar stated that although he viewed himself and Pierson as partners and co- owners of the business, “there is nothing written down.” Marquar also admitted that Southern Auto Salvage is not a corporation—just a name he uses for doing business. Marquar also admitted that he had never incorporated the business or registered the name Southern Auto Salvage.

¶11. Schweda further argued that Marquar sued the wrong party—instead of suing Quick Recovery, Marquar filed suit against Schweda as an individual. Marquar admitted that he did not sue Quick Recovery. Marquar also admitted, and the record confirms, that the alleged unsigned lease was between Marquar and Schweda, as an individual, and that each of the liens filed in this case were against Schweda as an individual.

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