Miller v. Talton Telecommunications Corp.

907 F. Supp. 227, 1995 U.S. Dist. LEXIS 18602, 1995 WL 728119
District Court, S.D. Mississippi·Decided September 25, 1995·No. Civ. A. No. 3:93-CV-311WS·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION AND ORDER

WINGATE, District Judge.

Before this court is defendant’s motion for summary judgment pursuant to Rule 56(b),1 Federal Rules of Civil Procedure. Defendant Taitón Telecommunications Corporation (hereinafter “Taitón”) contends in its motion that it is entitled as a matter of law to judgment in its favor on plaintiffs’ breach of contract claim. Plaintiffs Coleman Miller, Edward Bishop and James Johnson filed this breach of contract action on June 28, 1993, against the defendant Taitón herein alleging that Taitón had breached its contract with plaintiffs and refused to pay them just compensation for plaintiffs’ efforts in helping defendant to secure a prison inmate coinless telephone service contract with the State of Mississippi for the Southeast Mississippi Correctional Facility, located in Leakesville, Greene County, Mississippi. In their motion, defendants deny any breach of contract, arguing instead that the undisputed facts and the plain wording of their contract with [229] plaintiffs show that their successful grant of the service contract with the State of Mississippi to service the Southeast Mississippi Correctional Facility was totally beyond the scope of their written agreement with plaintiffs. This court has studied the parameters of the contract between the parties in issue and is persuaded by defendant’s argument. Accordingly, for the reasons which follow, this court grants summary judgment to the defendant.

PARTIES AND JURISDICTION

Plaintiffs Coleman Miller, Edward Bishop and James Johnson, are adult resident citizens of Mississippi. Defendant Taitón is an Alabama Corporation doing business in Mississippi.

Plaintiffs originally filed this action in the Circuit Court of Hinds County, Mississippi, First Judicial District, as a breach of contract action against Taitón for the recovery of Eight Million Dollars ($8,000,000) in damages, plus interest and all court costs. Upon proper petition of defendant, this cause was removed from state court to this court pursuant to Title 28 U.S.C. § 1332,2 inasmuch as this is a controversy wholly between citizens of different states, and the amount in controversy exceeds the sum or value of Fifty Thousand Dollars ($50,000), exclusive of interest and costs. Of course, since this court’s basis of jurisdiction is diversity-of-eitizenship and since all of the events forming the background of this suit occurred in Mississippi, this court is obliged to apply Mississippi’s substantive law. Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938) (in federal courts, except in matters governed by the Federal Constitution or acts of Congress, the law to be applied in any ease is the law of the forum state); Boardman v. United Services Auto. Association, 742 F.2d 847, 849 (5th Cir.1984); Mitchell v. Craft, 211 So.2d 509, 516 (Miss.1968) (Mississippi’s choice-of-law rules directs its courts to apply a center of gravity test).

UNDISPUTED FACTS

The Mississippi Department of Corrections operates correctional facilities at Parchman, Rankin County and Greene County and 17 community work centers located throughout the state. Prior to 1992, South Central Bell Telephone Company provided via contract the local telephone service at the State’s correctional facilities within South Central Bell’s service area which included Parchman, the Rankin County facility and many of the various community work centers located throughout Mississippi. The Southeast Mississippi Correctional Facility was outside the South Central Bell service area. The local telephone carrier in that area decided that it did not want to provide inmate telephone services to the Southeast Mississippi Correctional Facility.

In 1992, the Mississippi Public Service Commission conducted hearings on providing coinless telecommunication services to inmates of correctional facilities in Mississippi. The Commission was to consider whether to terminate the existing contracts with South Central Bell and award a master contract to a private bidder to provide inmate telephone service at all of the state correctional facilities, including service to the Southeast Mississippi Correctional Facility.

During this time, specifically in April 1992, plaintiffs Coleman Miller, Edward Bishop and James Johnson and defendant Taitón came into contact with each other. They soon discovered that they had mutual and, possibly, advantageous financial interests. Taitón yearned for the master contract with the State of Mississippi. Plaintiffs desired a satisfactory measure of compensation for the expertise and political contacts they could expend in an endeavor to help a company such as Taitón win the State bid. So, after a few rounds of discussions, a marriage of purposes occurred and the parties entered into a written contract. The contract obligated plaintiffs to deliver “an acceptable 5 year contract to provide exclusive inmate pay tele[230] phone service for the State of Mississippi Penal institutions” in return for specified compensation. The contract also contained the following provision:

In the event you (i.e., the plaintiffs) are not successful in securing this contract, it is understood we (i.e., Taitón Telecommunications Corporation) will not be liable to you for securing any contract directly on our behalf.

On June 24, 1992, Taitón Communications, among other interested parties, was notified via letter by the Mississippi Central Data Processing Authority (CDPA), the entity handling the bidding process, that CDPA had decided to keep its existing contracts with South Central Bell intact and offer for bid only the inmate telephone system at the Southeast Mississippi Correctional Facility.

Thereafter, on June 15, 1992, Julius E. Taitón, Sr., president of Taitón, sent a letter to plaintiff Coleman Miller telling him that the deal was off. Referring to the CDPA letter, Taitón stated that the CDPA letter “pretty much tells what is going to happen as prison telephones are concerned in Mississippi for the next couple of years.” Taitón added:

Therefore, it appears our agreement entered into on April 21,1992, becomes moot. It is important to point out to you that part of our letter of understanding stating Tai-tón Telecommunications might proceed to secure prison business in the event you were not successful in securing the master prison contract. The letter irom Mr. Steb-bins [executive director of CDPA] also states they are preparing bid specifications for an inmate telephone system for the Southeast Mississippi Correctional Facility located in Greene County. We, of course, will proceed on our own to bid this job when we receive the specs from the Central Data Processing Authority.

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Miller v. Talton Telecommunications Corp., 907 F. Supp. 227, 1995 U.S. Dist. LEXIS 18602, 1995 WL 728119 (S.D. Miss. 1995).

907 F. Supp. 227 (Miller v. Talton Telecommunications Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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