Mississippi Department of Audit v. Gulf Publishing Company, Inc.

236 So. 3d 32
CourtMississippi Supreme Court
DecidedNovember 16, 2017
Docket2013-CT-02002-SCT
StatusPublished

This text of 236 So. 3d 32 (Mississippi Department of Audit v. Gulf Publishing Company, Inc.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mississippi Department of Audit v. Gulf Publishing Company, Inc., 236 So. 3d 32 (Mich. 2017).

Opinions

BEAM, JUSTICE, FOR THE COURT:

¶ 1. The Court of Appeals reversed and rendered a final judgment entered by the Harrison County Chancery Court, in which the chancery court held that: (1) Gulf Publishing's (GP) records request under the Mississippi Public Records Act (MPRA) was not subject to any exemptions contained in the act; (2) the Department of Marine Research (DMR) acted in bad faith by asserting defenses for the purpose of delay in violation of the Mississippi Litigation Accountability Act (MLAA); (3) DMR willfully and wrongfully denied GP's records requests; (4) the State Auditor acted in bad faith and willfully and wrongfully denied GP's requests; (5) the State Auditor was in civil contempt from November 4, 2013, until it purged itself on December 5, 2013, when it filed a motion with the federal district court, seeking permission to release the records requested by GP, which were then in the custody of a federal grand jury; therefore, the State Auditor was liable for attorney's fees and expenses resulting from the contempt; (6) GP was entitled to attorney's fees under the MPRA, the MLAA, and relevant caselaw for contempt and monetary sanctions for bad faith; (7) DMR and the State Auditor were jointly and severally liable for attorney's fees and other expenses; and (8) the following individuals were fined $100 each pursuant to the MPRA, for their participation in the willful and wrongful denial of GP's public-records request: State Auditor Stacey Pickering, Attorney General Jim Hood; Director of Investigations David Huggins, Investigator Chris Lott, Special Assistant Attorneys General Melissa Patterson, Joseph Runnels, Sandra Chestnut, and Harold Pizzetta.

¶ 2. GP petitioned this Court for writ of certiorari, which was granted. Having reviewed the record and considered GP's claim(s), we find the Court of Appeals should not have reached the question of whether the investigative-report exemption under the MPRA applied in this instance. As will be explained, that claim was waived. Therefore, that portion of the Court of Appeals' judgment holding that the public records sought by GP were exempt under the MPRA's investigative-report exemption is overruled.

¶ 3. We find that the Department of Audit, as a public body defined by Mississippi Code Section 25-61-3(a), is liable to GP for the civil penalty prescribed Mississippi Code Section 25-61-15, along with reasonable expenses and attorney's fees as found by the chancery court, for denying GP access to public records not exempt from the provisions of the MPRA. 1

¶ 4. Also, we find no error in the chancery court's decision to fine Huggins $100 under the penalty provision contained in MPRA. See Miss. Code Ann. § 25-61-15 (Rev. 2010).

FACTS AND PROCEDURAL HISTORY 2

¶ 5. In 2012, a joint federal and state task force began investigating DMR for misappropriation of funds. The investigation lead to the indictments and convictions of several individuals, including former DMR Director Dr. Bill Walker; DMR Chief of Staff Joe Ziegler; DMR official Tina Shumate; D'Iberville City Manager Michael Janus; and Dr. Walker's son, Scott Walker.

¶ 6. During the investigation, on November 14, 2012, GP's subsidiary newspaper, The Sun Herald , submitted a written records request 3 to DMR, in accordance with Mississippi Code Section 25-61-5 of the MPRA. Miss. Code Ann. § 25-61-5 (Rev. 2010). DMR communicated its willingness to comply with the newspaper's request, but DMR and the newspaper could not agree on costs.

¶ 7. The newspaper submitted a second request on December 27, 2012, for additional records. 4 Before DMR's compliance or response was due, the Harrison County grand jury subpoenaed the same records covered by the newspaper's November 14 and December 27 requests.

¶ 8. The subpoenas, issued at the behest of the Department of Audit on January 6 and 9, 2013, required DMR's records to "to be 'retained in-place,' " to "be accessible upon demand by agents of the Mississippi Office of State Auditor," and to "be released to no entity other than [the Department of Audit]." The subpoenas also stated, "This subpoena ... may be satisfied by mailing or delivering a certified copy of said records[.]" Alleging the subpoenas prohibited DMR from releasing its records to anyone other than the state auditor, DMR informed The Sun Herald in writing that it could no longer comply with the public-records requests.

¶ 9. On January 15, 2013, the Department of Audit took possession of the records pursuant to the subpoenas. Almost all of the records had electronic copies. But a few records existed as uncopied and unscanned originals.

¶ 10. The next day, on January 16, 2013, GP sued DMR in the Harrison County Chancery Court to compel production of the records, without service upon the Attorney General, but instead upon DMR's director.

¶ 11. A week later, on January 22, 2013, special assistant attorneys general assigned to both DMR (Joseph Runnels) and the Department of Audit (Melissa Patterson), worked together to submit a protective order to the Harrison County Circuit Court. 5 DMR filed the motion for protective order in the circuit court, and the Department of Audit, through Patterson, signed off on the motion. The circuit court found "the ... subpoena ... prohibit[ed DMR] from complying with the [MPRA]." Therefore, the circuit court modified the subpoena to permit DMR to release to GP public records in its possession, even if those records also were subject to the subpoena.

¶ 12. On January 23, 2013, Counsel for GP Henry Laird and Counsel for DMR Runnels appeared before the chancery court. Laird told the chancery court that the parties were still working on a resolution and announced that he did not see any reason to go forward with the expedited hearing set for that day. Laird said there were two categories of records, one computerized, the other comprised of hard copies, which were voluminous. 6 According to Laird, they were attempting to work out an arrangement for GP to have access to the boxes containing the hard copies so GP could identify what documents, if any, within those boxes they wanted, and then have DMR make copies for GP.

¶ 13. Days later, DMR downloaded 22,215 records to a "DVD+R" and handed it over to GP. The only records that were not released to GP were the uncopied and unscanned originals no longer in DMR's possession, but in the Department of Audit's possession.

¶ 14. Another hearing was held on April 23, 2013, at which the chancery court heard GP's claim that it was still seeking the records for which no electronic copy was available. DMR moved to dismiss, claiming GP had failed to prove that DMR wrongfully had denied the requests.

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Bluebook (online)
236 So. 3d 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-department-of-audit-v-gulf-publishing-company-inc-miss-2017.