MEC, Incorporated v. Lowndes County Board of Supr

CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 11, 2019
Docket18-60083
StatusUnpublished

This text of MEC, Incorporated v. Lowndes County Board of Supr (MEC, Incorporated v. Lowndes County Board of Supr) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MEC, Incorporated v. Lowndes County Board of Supr, (5th Cir. 2019).

Opinion

Case: 18-60083 Document: 00514791513 Page: 1 Date Filed: 01/11/2019

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT United States Court of Appeals Fifth Circuit

FILED No. 18-60083 January 11, 2019 Lyle W. Cayce MEC, INCORPORATED, doing business as The Pony, Clerk

Plaintiff - Appellant

v.

LOWNDES COUNTY BOARD OF SUPERVISORS; LOWNDES COUNTY CHANCERY CLERK; LOWNDES COUNTY; JOHN DOES 1-10,

Defendants - Appellees

Appeal from the United States District Court for the Northern District of Mississippi USDC No. 1:16-CV-151

Before JONES, CLEMENT, and SOUTHWICK, Circuit Judges. PER CURIAM:* This case requires the court to determine whether res judicata bars the Plaintiff MEC Incorporated’s case because of its similar suit pursued in state court. The court concludes that because all of res judicata’s elements are met and MEC received a full and fair opportunity to litigate in state court, the district court properly held that res judicata applies. Accordingly, this court AFFIRMS.

* Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5TH CIR. R. 47.5.4. Case: 18-60083 Document: 00514791513 Page: 2 Date Filed: 01/11/2019

No. 18-60083 BACKGROUND This case began as a dispute over a nightclub. MEC operates an adult entertainment club called The Pony in Lowndes County, Mississippi. In 2013, the county passed an ordinance restricting the business hours of such places. Under the ordinance, nightclubs may only operate from noon to 1:00 a.m. The ordinance requires all customers to leave nightclubs by 1:30 a.m. and the “owner, management, employees and band will only be allowed inside the building after 1:30 a.m. to remove equipment.” The ordinance provides that restaurants and/or bars may apply for an exemption to these restrictions if they meet certain conditions. MEC applied to the Lowndes County Night Club Regulations Committee for such an exemption. The Committee, however, denied the request. MEC appealed the Committee’s decision to the Defendant Lowndes County Board of Supervisors. On December 7, 2015, the Board also denied the exemption. MEC appealed the Board’s decision to the Circuit Court of Lowndes County, Mississippi, on December 16, 2015. 1 In the Circuit Court, MEC argued that the Board’s decision should be reversed because it “violated MEC’s constitutional substantive due process rights, took away property rights of MEC in violation of the U.S. and Mississippi Constitution, [and] acted arbitrarily and capriciously in denying the exemption application without substantial evidence supporting their decision.” MEC contended that, although the Board had afforded MEC procedural due process, it had denied

1 Under Mississippi law, a party wishing to appeal a county board of supervisors’ decision has to file an appeal in that county’s Circuit Court within ten days of the decision. See Miss. Code Ann. § 11-51-75 (2012). Essentially, the Circuit Court, although generally a trial court, functions as an appellate court in these situations. See id. This statute was changed in the 2018 Mississippi legislative session, affecting how the appeal is commenced and the preparation of the record. See 2018 Miss. Laws Ch. 448 (effective July 1, 2018). References to the statute are to the version that existed at the time of the 2015 appeal. 2 Case: 18-60083 Document: 00514791513 Page: 3 Date Filed: 01/11/2019

No. 18-60083 MEC substantive due process. Without directly saying so, MEC also appeared to contend that the Board’s actions amounted to an unlawful taking. The Circuit Court understood MEC’s arguments as asserting that “it has been deprived of its due process rights because the ordinance takes from [MEC] a portion of [its] right to use [its] property and that the Board[’s] decision to deny [the] request for an exemption was not supported by sufficient evidence and was, therefore, arbitrary and capricious.” The Circuit Court held that because no taking occurred, no due process violation occurred. It also ruled that the Board’s decision was supported by substantial evidence and was not arbitrary and capricious. The Circuit Court did not separately address MEC’s substantive due process claim. It dismissed MEC’s appeal with prejudice. MEC then brought the present suit in federal district court, arguing that the ordinance amounted to an unlawful taking of MEC’s property and that the Defendants violated MEC’s substantive and procedural due process rights. The Defendants moved for summary judgment, asserting that both res judicata and collateral estoppel barred MEC’s claims because they were previously litigated in the Mississippi Circuit Court. The district court granted summary judgment on that basis. MEC timely appealed. STANDARD OF REVIEW “The res judicata effect of a prior judgment is a question of law that this court reviews de novo.” Test Masters Educ. Services, Inc. v. Singh, 428 F.3d 559, 571 (5th Cir. 2005). DISCUSSION The primary issue on appeal is whether res judicata bars MEC’s case. MEC makes two arguments to that end. First, it contends that the elements of res judicata under Mississippi law have not been met. Second, MEC argues that it was denied a full and fair opportunity to litigate in the state court, so

3 Case: 18-60083 Document: 00514791513 Page: 4 Date Filed: 01/11/2019

No. 18-60083 the state court’s judgment should not have preclusive effect. 2 The court will address each contention in turn. In the alternative, MEC argues that we could also affirm on the basis of collateral estoppel. That also will be discussed. I. Res Judicata’s Elements The court concludes that all of res judicata’s elements are met, with one qualification that will be mentioned. Res judicata is a doctrine that bars claims that were litigated or should have been litigated in a previous action. Hill v. Carroll Cty., 17 So. 3d 1081, 1084-85 (Miss. 2009). “To determine the preclusive effect of a state court judgment in a federal action, federal courts must apply the law of the state from which the judgment emerged.” Black v. N. Panola School Dist., 461 F.3d 584, 588 (5th Cir. 2006) (quotation marks omitted). Accordingly, Mississippi law applies to this case. Under Mississippi law, “it is frequently recognized that the rule of res judicata applies when an order or decision of an administrative agency in the exercise of a quasi-judicial or adjudicatory power has been affirmed by a reviewing court.” City of Jackson v. Holliday, 149 So. 2d 525, 527-28 (Miss. 1963) (quotation marks omitted). “For the bar of res judicata to apply in Mississippi there are four identities which must be present: (1) identity of the subject matter of the action; (2) identity of the cause of action; (3) identity of the parties to the cause of action; and (4) identity of the quality or character of a person against whom the claim is made.” Harrison v. Chandler-Sampson Ins., Inc., 891 So. 2d 224, 232 (Miss. 2005). “In addition to the four identities, a fifth requirement is that the prior judgment must be a final judgment that was adjudicated on the merits.” EMC Mortg. Corp. v. Carmichael, 17 So. 3d 1087, 1090 (Miss. 2009). The court will address each requirement.

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