Patton Medical of Gulf Coast, Inc. v. Michael Relle

269 So. 3d 266
CourtCourt of Appeals of Mississippi
DecidedApril 3, 2018
DocketNO. 2017–CA–00122–COA
StatusPublished
Cited by4 cases

This text of 269 So. 3d 266 (Patton Medical of Gulf Coast, Inc. v. Michael Relle) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patton Medical of Gulf Coast, Inc. v. Michael Relle, 269 So. 3d 266 (Mich. Ct. App. 2018).

Opinion

CARLTON, J., FOR THE COURT:

¶ 1. Patton Medical of Gulf Coast, Inc. ("Patton Medical") claims that it entered into a joint business venture with Michael K. Relle ("Relle Sr.") and Orthotic & Prosthetic Specialists, Inc. ("O&P") to furnish orthotics and prosthetics in the Mississippi Gulf Coast area. The business arrangement failed. Believing it was still owed a portion of the joint venture's profits, Patton Medical sued Relle Sr. and O&P in Harrison County Court, seeking recovery under the parties' business venture agreement and under Mississippi's open-account statute, Mississippi Code Annotated section 11-53-81 (Rev. 2012).

¶ 2. On Relle Sr.'s motion, the county court granted summary judgment in his favor, finding Patton Medical could not establish a triable issue of fact on its claim that Relle Sr. was individually liable to it for unpaid profits. Having prevailed on all counts against him, including the open-account claim, Relle Sr. then moved for attorney fees under section 11-53-81. The county court granted Relle Sr.'s motion and awarded him $7,000 in attorney fees. The case proceeded to trial on Patton Medical's joint venture claims against O&P, and the jury returned a verdict for Patton Medical, assessing $101,316.69 in damages. The county court denied O&P's motion for a judgment notwithstanding the verdict ("JNOV motion").

¶ 3. The parties appealed the county court judgment and respective decisions against them to the Harrison County Circuit Court. The circuit court affirmed the county court's summary judgment in Relle Sr.'s favor, and its $7,000 attorney fees award under section 11-53-81. It reversed the county court's denial of O&P's JNOV motion and rendered judgment in O&P's favor.

¶ 4. Now on appeal to this Court, Patton Medical asserts that the circuit court (1) erred in granting O&P's JNOV motion, which reversed the county court's denial of that motion and reversed the jury verdict in Patton Medical's favor; (2) erred in affirming the county court's decision granting Relle Sr.'s motion for summary judgment; and (3) erred in affirming the county court's decision granting Relle Sr.'s motion for attorney fees brought pursuant to Mississippi's open-account statute.

¶ 5. Finding error in the circuit court's reversal of the county court's judgment on O&P's JNOV motion, we reverse and reinstate the county court jury verdict and $101,316.69 damages award in Patton Medical's favor because there was sufficient evidence to support its verdict and award. Finding no error in the circuit court's affirmance of the county court's summary judgment order in Relle Sr.'s favor and its related award of $7,000 in attorney fees under section 11-53-81, we affirm that aspect of the circuit court's judgment.

FACTS

¶ 6. Patton Medical is a medical supply business that sells orthotics and prosthetics and is located in Ocean Springs, Mississippi. Its principals are Jay Rubenstein and Keith Wade. In April 2010, Patton Medical's certified prosthetist gave notice. Neither Rubenstein nor Wade were certified orthotists or prosthetists at the time. Patton Medical needed a certified orthotist/prothetist to continue serving its patients, so Rubenstein and Wade weighed various options to fill that void. They ultimately decided to contact Relle Sr., then president of O&P, about Patton Medical's need to associate a licensed orthotist and prosthetist to treat its clients.

¶ 7. Relle Sr. and his son, Michael S. Relle ("Relle Jr."), 1 worked as O&P's certified practitioners, both were licensed to provide orthotic and prosthetic services. O&P's primary facility is in Covington, Louisiana.

¶ 8. Rubenstein, Wade, Relle Sr., and Relle Jr. had their first meeting in Slidell, Louisiana to discuss O&P and Patton Medical doing business on the Gulf Coast. In late April 2010 these individuals met a second time. Relle Sr. and Relle Jr. traveled to Ocean Springs to view Patton Medical's facilities and examine one of Patton Medical's clients.

¶ 9. According to Patton Medical, Relle Sr. participated in these meetings both individually and on behalf of his company, O&P. Relle Sr., on the other hand, contends he participated solely on O&P's behalf as its president.

¶ 10. According to the deposition testimony of Relle Sr. and the testimony of Patton Medical's principals, Wade and Rubenstein, at the second meeting Patton Medical, O&P, and, according to Patton Medical, Relle Sr., consummated an oral agreement to do business together on a temporary basis to see whether O&P could meet Patton Medical's needs. The parties agreed that there would be a 50/50 split of the profits from the business.

¶ 11. The evidence in the record reflects that the parties also agreed to the following division of responsibilities:

Patton Medical's Responsibilities O&P's Responsibilities supply patients supply a prosthetist once a week to see patients at the Patton Medical Ocean Springs facility provide the facility for seeing patients provide patient billing, technical support, purchasing, and accounting services perform marketing and sales cover warranty items secure medical information for patient charts

¶ 12. According to O&P, Patton Medical was responsible for fabricating (manufacturing) the orthotics and prosthetics. Patton Medical did start off sending someone to O&P's facility to do the fabrication for a few weeks. After about a month, however, O&P told Patton Medical it would take over the fabrication at O&P. Patton Medical agreed, and O&P did the fabricating from that point forward.

¶ 13. The business venture continued for four or five months. During this time O&P had business cards made for Rubenstein and Wade, identifying them as "practice managers" under O&P's name. In his deposition, which was read at trial, Relle Sr. admitted the business cards were prepared in furtherance of the oral agreement to do a joint venture with Patton Medical. O&P also hired another orthotist/prosthetist to work primarily with Patton Medical. O&P received all payments from billings, periodically provided an accounting to Patton Medical, and paid Patton Medical over $196,000 in 2010. Though, as noted, the parties agreed that there would be a 50/50 split of the profits; they ultimately disagreed on whether some costs, primarily fabrication costs, should be deducted as expenses before dividing the profits. According to Patton Medical, the profits were to be split after subtracting the cost of component goods. The record shows that the cost of component goods did not include fabrication costs.

¶ 14. According to O&P, Patton Medical was responsible for fabrication, and, under that scenario, it would receive 50% of the profits. O&P asserts that when Patton Medical was unable to fulfill this responsibility, O&P took over fabrication. Taking over fabrication caused O&P to incur these costs. The record shows that at this point, O&P then began subtracting the fabrication costs from profits before the 50/50 split.

¶ 15. Both Patton Medical's principals, Rubenstein and Wade, testified at trial that there was never an agreement that either company would charge fabrication costs against the income derived in the business. The jury also heard testimony from Relle Sr. (via his deposition read at trial) and Relle Jr.

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Bluebook (online)
269 So. 3d 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patton-medical-of-gulf-coast-inc-v-michael-relle-missctapp-2018.