Jack Parsons and Parsons Law Firm v. Vernon Walters and Donyell Walters

Mississippi Supreme Court·Decided June 18, 2020·No. 2018-CA-01272-SCT·Published

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 2018-CA-01272-SCT

JACK PARSONS AND PARSONS LAW FIRM v. VERNON WALTERS AND DONYELL WALTERS

DATE OF JUDGMENT: 08/28/2018 TRIAL JUDGE: HON. CHARLES W. WRIGHT, JR. TRIAL COURT ATTORNEYS: ROBIN L. ROBERTS JAMES A. WILLIAMS

COURT FROM WHICH APPEALED: LAUDERDALE COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANTS: WILLIAM T. MAY ATTORNEYS FOR APPELLEES: ROBIN L. ROBERTS CHRISTOPHER D. NOBLES

NATURE OF THE CASE: CIVIL - LEGAL MALPRACTICE DISPOSITION: ON DIRECT APPEAL: AFFIRMED IN PART AND REVERSED AND REMANDED IN PART. ON CROSS-APPEAL: DISMISSED AS MOOT - 06/18/2020

MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE KITCHENS, P.J., COLEMAN AND CHAMBERLIN, JJ.

CHAMBERLIN, JUSTICE, FOR THE COURT:

¶1. Vernon Walters was injured in a work-related incident in October 2006. After receiving workers’ compensation benefits, he and his wife, Donyell Walters, filed a third- party claim against the company operating the train involved in the collision, Kansas City Southern Railway Company (KCSR). The Walterses hired the Parsons Law Firm to represent them in their suit, and Tadd Parsons took on the case.

¶2. The Walterses’ lawsuit against KCSR was ultimately dismissed with prejudice in September 2010 for, among other reasons, failure to prosecute, failure to comply with discovery obligations and fraud upon the court. Tadd never told the Walterses that their case had been dismissed and led them to believe their case was ongoing. Three years after the case had been dismissed, Tadd admitted that he fabricated a settlement offer from KCSR in the amount of $104,000 and advised the Walterses to accept the offer, which they did. When eight months passed after Tadd informed the Walterses about the fabricated settlement, the Walterses demanded to meet with Jack Parsons, the other general partner at the Parsons Law Firm. Jack offered the Walterses $50,000 to settle any claims they may have had against Tadd based on his conduct in representing them in the KCSR lawsuit. The Walterses refused Jack’s offer and then filed a claim against Tadd, Jack and the Parsons Law Firm, alleging claims of fraud, defamation, negligent representation, negligent and intentional infliction of emotional distress and punitive damages.

¶3. The trial court granted partial summary judgment for the Walterses on the matter of liability, finding that Tadd and the Parsons Law Firm were liable for fraud and intentional infliction of emotional distress. The court then held a jury trial on damages.

¶4. The jury verdict awarded the Walterses $2,850,002 in compensatory damages, which exceeded what the Walterses had demanded in compensatory damages in their complaint and in their motion to set damages. Accordingly, the trial court held that the jury’s verdict shocked the conscience and that a remittitur should be entered to remedy the issue. The trial

court remitted the damages awarded to the Walterses to $1,034,666.67 in a second amended final judgment. Parsons appealed to this Court, and the Walterses then cross-appealed.

FACTS AND PROCEDURAL HISTORY

¶5. On October 10, 2006, Vernon Walters was injured while carrying out the duties of his job with Powell Transportation Company when the vehicle he was driving was struck by an oncoming train operated by Kansas City Southern Railway Company (KCSR). Vernon filed a workers’-compensation claim against his employer, which ultimately resulted in a settlement in Vernon’s favor. As a result of the workers’-compensation case, Vernon received a lump-sum amount of $195,471.66 in workers’-compensation benefits.

¶6. In addition to the workers’-compensation claim, Vernon and his wife Donyell Walters filed a third-party negligence claim against KCSR related to the railroad-crossing incident. The settlement Vernon received in the workers’-compensation claim would act as a lien against any recovery Vernon recovered from his suit against KCSR. The Walterses hired Tadd Parsons, a general partner at the Parsons Law Firm, to represent them in their negligence claim against KCSR. The case was removed to the United States District Court for the Southern District of Mississippi on November 18, 2009. The Walterses’ case against KCSR was ultimately dismissed with prejudice on September 24, 2010, following KCSR’s motions to dismiss for fraud on the court and for failure to comply with discovery orders. During Vernon’s deposition for the federal lawsuit, Vernon testified under oath that he had not suffered from any hearing loss before the train/truck collision, but KCSR produced evidence showing that Vernon had been deaf in his right ear since infancy. In its dismissal

order, the federal court stated that Vernon’s false deposition testimony and Tadd’s failure to comply with discovery obligations and failure to prosecute Vernon’s claim warranted dismissal with prejudice.

¶7. Tadd did not inform the Walterses that their case had been dismissed with prejudice. For the next two and half years, Tadd led the Walterses to believe that their suit against KCSR was proceeding in federal court. After nearly three years of the Walterses’ making repeated status inquiries to Tadd about their suit, Tadd told the Walterses that KCSR had made them a settlement offer in the amount of $88,000 on behalf of Vernon Walters and an additional $16,000 on behalf of Donyell Walters, bringing the settlement offer to a total of $104,000. Tadd then told the Walterses that if they accepted the settlement offer, they would receive $53,100 after attorneys’ fees and expenses were deducted. Tadd advised the Walterses to accept the settlement offer, and they did as he advised. It is undisputed that Tadd completely fabricated this purported settlement offer.

¶8. After about eight months of inquiring about their settlement offer, the Walterses sought a meeting with Jack Parsons, Tadd’s father and the other general partner of the Parsons Law Firm. During this meeting, Jack offered the Walterses $50,000 as a settlement of any claims against Tadd. Jack admitted to the Walterses that he was not sure if the workers’-compensation payment would still act as a lien on this settlement he was offering them since the money would be coming from him and/or Tadd, individually, and not from KCSR. Jack told Vernon that he did intend to inform the workers’-compensation carrier about their compromise and that the funds would be coming from a third-party source and

not from KCSR. The Walterses did not accept Jack’s proposed settlement compromise and sought independent legal counsel.

¶9. On October 25, 2013, the Walterses sued Tadd Parsons, Jack Parsons and the Parsons Law Firm, (collectively, Parsons) alleging claims of fraud, defamation, negligent representation, negligent and intentional infliction of emotional distress and punitive damages. In their complaint, the Walterses claimed actual damages of $105,000, which represented the amount of Tadd’s fabricated settlement offer from KCSR; general damages of $145,000 for “other torts/breach of contract” and an additional $5 million in punitive damages.

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

Jack Parsons and Parsons Law Firm v. Vernon Walters and Donyell Walters, (Mich. 2020).

Jack Parsons and Parsons Law Firm v. Vernon Walters and Donyell Walters (Jack Parsons and Parsons Law Firm v. Vernon Walters and Donyell Walters) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

American Income Life Ins. Co. v. Hollins
830 So. 2d 1230 (Mississippi Supreme Court, 2002)
Lift-All Co., Inc. v. Warner
943 So. 2d 12 (Mississippi Supreme Court, 2006)
Morrison v. Means
680 So. 2d 803 (Mississippi Supreme Court, 1996)
Bush v. State
895 So. 2d 836 (Mississippi Supreme Court, 2005)
Whitten v. Cox
799 So. 2d 1 (Mississippi Supreme Court, 2000)
COMMUNITY BANK, ELLISVILLE, MS v. Courtney
884 So. 2d 767 (Mississippi Supreme Court, 2004)
Leaf River Forest Products, Inc. v. Ferguson
662 So. 2d 648 (Mississippi Supreme Court, 1995)
Sumler v. East Ford, Inc.
915 So. 2d 1081 (Court of Appeals of Mississippi, 2005)
TG Blackwell Chevrolet Co. v. Eshee
261 So. 2d 481 (Mississippi Supreme Court, 1972)
Brown v. North Jackson Nissan, Inc.
856 So. 2d 692 (Court of Appeals of Mississippi, 2003)
Stewart v. Gulf Guar. Life Ins. Co.
846 So. 2d 192 (Mississippi Supreme Court, 2002)
Gamble v. Dollar General Corp.
852 So. 2d 5 (Mississippi Supreme Court, 2003)
Wilson v. General Motors Acceptance Corp.
883 So. 2d 56 (Mississippi Supreme Court, 2004)
Adams v. US Homecrafters, Inc.
744 So. 2d 736 (Mississippi Supreme Court, 1999)
Herring v. State
691 So. 2d 948 (Mississippi Supreme Court, 1997)
Richardson v. Canton Farm Equipment, Inc.
608 So. 2d 1240 (Mississippi Supreme Court, 1992)
Johnson v. ST. DOMINICS-JACKSON MEM. HOSP.
967 So. 2d 20 (Mississippi Supreme Court, 2007)
Entergy Mississippi, Inc. v. Bolden
854 So. 2d 1051 (Mississippi Supreme Court, 2003)
Yoste v. Wal-Mart Stores, Inc.
822 So. 2d 935 (Mississippi Supreme Court, 2002)
HOLMES CTY. BANK & TR. v. Staple Cotton Co-Op.
495 So. 2d 447 (Mississippi Supreme Court, 1986)