Radco Fishing and Rental Tools, Inc., Dynasty Energy Services, LLC, and Stewart F. Dubose v. Commercial Resources, Inc.

CourtMississippi Supreme Court
DecidedMarch 13, 2025
Docket2023-CA-00376-SCT
StatusPublished

This text of Radco Fishing and Rental Tools, Inc., Dynasty Energy Services, LLC, and Stewart F. Dubose v. Commercial Resources, Inc. (Radco Fishing and Rental Tools, Inc., Dynasty Energy Services, LLC, and Stewart F. Dubose v. Commercial Resources, 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
Radco Fishing and Rental Tools, Inc., Dynasty Energy Services, LLC, and Stewart F. Dubose v. Commercial Resources, Inc., (Mich. 2025).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2023-CA-00376-SCT

RADCO FISHING AND RENTAL TOOLS, INC., DYNASTY ENERGY SERVICES, LLC, AND STEWART F. DUBOSE

v.

COMMERCIAL RESOURCES, INC.

DATE OF JUDGMENT: 03/16/2023 TRIAL JUDGE: HON. DAL WILLIAMSON TRIAL COURT ATTORNEYS: CAREY R. VARNADO TERRY L. CAVES MARK A. NELSON JOHN G. HOLADAY JOHN A. PIAZZA COURT FROM WHICH APPEALED: JONES COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANTS: JOHN G. HOLADAY DONALD W. MEDLEY JOHN A. PIAZZA ATTORNEYS FOR APPELLEE: MARK A. NELSON TERRY L. CAVES RISHER G. CAVES NED A. NELSON NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED - 03/13/2025 MOTION FOR REHEARING FILED:

BEFORE KING, P.J., CHAMBERLIN AND SULLIVAN, JJ.

CHAMBERLIN, JUSTICE, FOR THE COURT:

¶1. Commercial Resources, Inc., won a jury verdict against Dynasty Energy Services, Inc.,

Radco Fishing and Rental Tools, Inc., and Stewart Dubose for outstanding principal and interest under an Accounts Receivable Line of Credit agreement. After trial, attorneys’ fees

were awarded by the trial judge to Commercial Resources. Dynasty, Radco and Stewart

appeal and argue multiple errors occurred before, during and after trial. This Court finds no

error and affirms the judgment.

FACTS AND PROCEDURAL HISTORY

1. Accounts Receivable Line of Credit

¶2. In June 1984, John Dubose Sr. formed Radco Fishing and Rental Tools, Inc., a

business, interestingly enough, engaged in the repair of oil wells. In June 2004, John offered

the family business to his son Stewart Dubose, who had been working in the oil business

since he was young. At that time, Radco did not have many clients, and Stewart had a

separate successful swabbing business.1 Stewart sold his swabbing business and agreed to

take over Radco.

¶3. John and Stewart engaged an attorney who helped them form the Dubose Limited

Family Partnership, with Stewart as executor and John as coexecutor. The Dubose Limited

Family Partnership was intended to own all shares of Radco; however, the shares were never

transferred. John informed Stewart and the attorney that the stock had been lost.

¶4. Stewart, nevertheless, began to grow Radco’s business and maintained a title at the

company as “president, CEO.” Stewart controlled the corporate checkbook, maintained the

1 Stewart explained in a deposition that “swabbing” is “basically a rig that’s got 18,000 foot [sic] of cable and it – it swabs natural gas wells.”

2 corporate records and signed the corporate tax returns. John received a salary and at

Stewart’s specific request would take jobs for the company. Looking for a way to increase

Radco’s cash flow, Stewart engaged Commercial Resources, Inc., for an accounts receivable

line of credit. Commercial Resources was a business formed in 2000 by Doug Montague and

his father for the investment of their retirement funds. Montague knew Stewart personally

and offered a more competitive rate than Stewart’s previous lender, Interstate Billing.

¶5. In July 2013, Commercial Resources and Radco entered into an Accounts Receivable

Line of Credit agreement for $200,000 at an interest rate of 1 percent per month on the

$200,000 line of credit. Stewart signed a personal guaranty of the debt. The terms of the

agreement were that Radco would present Commercial Resources with a duplicate bill it had

sent one of its customers and that Commercial Resources would provide to Radco the full

amount of the bill. Within sixty days, Radco would be obligated to pay the money back to

Commercial Resources, preferably from the money that Radco collected from the customer

along with the 1 percent interest per month. The agreement was later amended by a second

written Accounts Receivable Line of Credit agreement with the same terms, except the credit

line was increased to $300,000 in available cash. Stewart also personally guaranteed this

new agreement.

¶6. Commercial Resources advanced more than two million dollars to Radco under the

agreement from July 2013 to June 2015. In June 2015, Commercial Resources advanced its

last payment to Radco. In July 2015, Montague became chief financial officer (CFO) of

3 Radco. Stewart was frequently out of the office working on oil rigs for Radco and explained

that he asked Montague to take the job essentially to safeguard the checkbook and to keep

people from coming into the office and writing checks while he was away. At the time,

Montague was also Stewart’s attorney, and Stewart testified that he trusted Montague to

safeguard the checkbook and to negotiate payments with his vendors/creditors.

¶7. In late 2015, John took control of Radco from Stewart and Montague following an

incident when John went to Radco’s office in Laurel to get a check and discovered that the

checkbook was at Montague’s law office. John allegedly went to Montague’s office,

threatened Montague and took the checkbook and Stewart’s signature stamp. On December

10, 2015, Montague stepped down from his role of CFO at Radco. On December 18, 2015,

Stewart stepped down from his role at Radco. John then allegedly began liquidating assets

of Radco.

¶8. In January 2016, John and Montague, on behalf of their companies, Radco and

Commercial Resources, respectively, had a meeting about the overdue payments under the

Accounts Receivable Line of Credit agreement. Montague agreed to lower the interest rate

to 4 percent per year instead of 1 percent per month. In February 2016, Radco made one

final payment of $833 on the Accounts Receivable Line of Credit agreement under the new

negotiated rate. No further payments have been made.

2. Settlement Agreement

¶9. On June 17, 2016, Stewart filed a complaint in the Jones County Chancery Court

4 against John, Radco and the Dubose Family Limited Partnership for dissolution of the

corporation, damages for breach of fiduciary duties and access to financial records. In

proceedings not on review before this Court, Stewart and John agreed to settle their chancery

court dispute. As part of their settlement, Stewart and John would sell Radco to Dynasty

Energy Services, LLC. Stewart agreed in the order of dismissal that “John M. Dubose, Sr.

owns all right, title and interest in and to the capital stock of Radco[.]” Stewart testified that

he agreed to the settlement in exchange for indemnification for debts that he personally

guaranteed for Radco.

3. Dynasty’s Purchase of Radco

¶10. On August 16, 2016, Dynasty entered into a Letter of Intent with John and Radco

proposing to purchase all issued stock of Radco and all assets of Radco and John.2 Dynasty

stated in the Letter of Intent, that upon assumption of ownership of Radco, it would agree to

“[a]ssume and be responsible for timely paying and satisfying, or causing the company to

timely pay and satisfy, all indebtedness, accrued liability and expenses of ongoing litigation

of the Company outstanding as of the closing” and that “Stewart F. Dubose will be released

of all personal guarantees as related to Radco business.” The terms of the letter of intent

were set to terminate on October 31, 2016, unless the parties mutually agreed to extend them

or the parties manifested an intention for the terms to survive.

¶11. On November 28, 2016, Dynasty entered into a Purchase Agreement with John and

2 It appears from the record that the Radco stock was no longer lost.

5 Radco.

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

Related

Bryant v. Cameron
473 So. 2d 174 (Mississippi Supreme Court, 1985)
Mauck v. Columbus Hotel Co.
741 So. 2d 259 (Mississippi Supreme Court, 1999)
MS Credit Center, Inc. v. Horton
926 So. 2d 167 (Mississippi Supreme Court, 2006)
Busching v. Griffin
542 So. 2d 860 (Mississippi Supreme Court, 1989)
Lamb Const. Co. v. Town of Renova
573 So. 2d 1378 (Mississippi Supreme Court, 1990)
Lovett v. Anderson
573 So. 2d 758 (Mississippi Supreme Court, 1990)
In Re Estate of Thomas
962 So. 2d 141 (Court of Appeals of Mississippi, 2007)
Byrd v. Mississippi Power Co.
943 So. 2d 108 (Court of Appeals of Mississippi, 2006)
Davis v. Singing River Elec. Power Ass'n
501 So. 2d 1128 (Mississippi Supreme Court, 1987)
Williams v. Ace Transportation, Inc.
33 So. 3d 400 (Louisiana Court of Appeal, 2010)
Solanki v. Ervin
21 So. 3d 552 (Mississippi Supreme Court, 2009)
Neal v. State
15 So. 3d 388 (Mississippi Supreme Court, 2009)
Jones v. FLUOR DANIEL SERVICES CORP.
32 So. 3d 417 (Mississippi Supreme Court, 2010)
Estate of Grimes v. Warrington
982 So. 2d 365 (Mississippi Supreme Court, 2008)
A & F PROPERTIES, LLC v. Lake Caroline, Inc.
775 So. 2d 1276 (Court of Appeals of Mississippi, 2000)
Forbes v. General Motors Corp.
935 So. 2d 869 (Mississippi Supreme Court, 2006)
Estate of Parker v. Dorchak
673 So. 2d 1379 (Mississippi Supreme Court, 1996)
Turner v. Terry
799 So. 2d 25 (Mississippi Supreme Court, 2001)
Huff v. Shopsmith, Inc.
786 So. 2d 383 (Mississippi Supreme Court, 2001)
White v. Stewman
932 So. 2d 27 (Mississippi Supreme Court, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
Radco Fishing and Rental Tools, Inc., Dynasty Energy Services, LLC, and Stewart F. Dubose v. Commercial Resources, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/radco-fishing-and-rental-tools-inc-dynasty-energy-services-llc-and-miss-2025.