RE/Max Real Estate Partners v. Lindsley

840 So. 2d 709, 2003 WL 1343375
CourtMississippi Supreme Court
DecidedMarch 20, 2003
Docket2001-IA-00639-SCT
StatusPublished
Cited by23 cases

This text of 840 So. 2d 709 (RE/Max Real Estate Partners v. Lindsley) 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
RE/Max Real Estate Partners v. Lindsley, 840 So. 2d 709, 2003 WL 1343375 (Mich. 2003).

Opinion

840 So.2d 709 (2003)

RE/MAX REAL ESTATE PARTNERS, INC., Re-Max Real Estate Partners, and Judith H. Corts
v.
Pamela LINDSLEY.

No. 2001-IA-00639-SCT.

Supreme Court of Mississippi.

March 20, 2003.

*710 Kristen A. Horton, Ridgeland, G. Todd Burwell, Jackson, for appellants.

Jack W. Land, Michael K. Randolph, Joe D. Stevens, Hattiesburg, for appellee.

EN BANC.

DIAZ, Justice, for the Court:

¶ 1. At issue here is whether a chancellor abused his discretion in refusing to transfer this case to circuit court. Pamela Lindsley (Lindsley) sued Re/Max Real Estate Partners, Inc., Re-Max Real Estate Partners, and Judith H. Corts (defendants) in chancery court seeking damages for breach of contract, cancellation of contract, accounting of funds, and other relief. Lindsley alleged that the defendants breached a duty to her by failing to instruct and supervise their agent in such a way as to prevent a breach of fiduciary responsibilities. Defendants filed a motion to transfer to circuit court, alleging the chancery court lacked subject matter jurisdiction. The chancellor denied that motion. This Court granted the defendants' petition for interlocutory appeal by permission. See M.R.A.P. 5. Finding the chancellor's retention of this matter proper, we now affirm and remand.

FACTS

¶ 2. In February 1998, Lindsley entered into a listing agreement with Re-Max Real Estate Partners (Re-Max) for sale of Lot 39 in the Fieldstone Subdivision in Lamar County, Mississippi. Debbie Wheat (Wheat) was listed as salesperson. Lindsley had previously purchased Lot 39 for $19,000.00.

¶ 3. During the period of the sales contract for Lot 39, Lindsley and Wheat were involved in other joint real estate ventures. Lindsley alleges that she loaned Wheat $15,000 and that Wheat used the money for personal reasons. In her petition, Lindsley seeks to recover this money, inter alia, from Re-Max.

¶ 4. In May 1998, Lindsley needed money to finish building a house on the lot for sale. Lindsley alleges that Wheat represented to her that Wheat could obtain funds to complete the construction if Lindsley would transfer title to Lot 39 to Wheat. Lindsley alleges that she complied and then Wheat, without her consent, borrowed $100,000.00 against the title to the property, paid $19,000.00 to Lindsley, *711 and, without Lindsley's knowledge, retained $81,000.00 for her own personal use.

¶ 5. Some time later, Lindsley demanded that Wheat reconvey title of the lot to her and learned of the additional $81,000 incumbrance. Wheat has failed to repay the $15,000 loan, the $81,000 loan, or to pay the bank the interest on the $81,000 loan. The bank has foreclosed on the property.

¶ 6. Lindsley allegedly hired an accountant to trace the money Wheat borrowed, but the accountant could not complete his investigation because certain information was not available to him.

¶ 7. In February 2001, Lindsley filed suit against the defendants in Lamar County Chancery Court seeking damages for breach of contract, cancellation of contract, accounting of funds, and other relief. Lindsley specifically alleges that defendants breached their duty to Lindsley to "instruct and supervise Wheat in such a way as to prevent a breach of the fiduciary responsibilities" owed to Lindsley by Wheat and defendants.

¶ 8. In March 2001, defendants filed their motion to transfer to circuit court alleging the chancery court does not have subject matter jurisdiction. The chancery court denied that motion, and defendants sought permission to file an interlocutory appeal. In April 2001, the chancery court denied this request. In November 2001, this Court granted defendants' petition for interlocutory appeal by permission.

DISCUSSION

¶ 9. Defendants cite the following issue on interlocutory appeal:

I. WHETHER THE CHANCERY COURT ERRED IN DENYING DEFENDANTS' MOTION TO TRANSFER TO CIRCUIT COURT.

¶ 10. Whether a trial court has jurisdiction over the subject matter of a claim is a question of law and subject to de novo review by this Court. Burch v. Land Partners, L.P., 784 So.2d 925, 927 (Miss. 2001).

¶ 11. Lindsley's chancery court complaint alleges (1) that defendants breached their duty to Lindsley by failing to instruct and supervise a third party; (2) that defendants' failure to instruct and supervise constitutes gross negligence and/or intentional conduct entitling Lindsley to punitive damages; (3) that defendants breached a listing agreement entered into by the parties; and (4) that Lindsley is entitled to an accounting. Defendants argue that, with the exception of (4), these claims are legal in nature, not equitable. Therefore, they insist that circuit court, rather than chancery, is the proper forum for this dispute.

¶ 12. The chancery court has "full jurisdiction in all the matters and cases expressly conferred upon it by the constitution." Miss.Code Ann. § 9-5-81 (Rev. 2002). The Mississippi Constitution grants the chancery court concurrent jurisdiction with the circuit court over

suits on bonds of fiduciaries and public officers for failure to account for money or property received, or wasted or lost by neglect or failure to collect, and of suits involving inquiry into matters of mutual accounts; but if the plaintiff brings suit in the circuit court, that the court may, on application of the defendant, transfer the cause to the chancery court, if it appear that the accounts to be investigated are mutual and complicated.

Miss. Const. art. 6, § 161.

¶ 13. Chancery courts have historically had jurisdiction over suits for accounting. Tillotson v. Anders, 551 So.2d 212, 213 (Miss.1989). It is well established *712 that, where there is in a case one issue of exclusive equity cognizance, such an issue can bring the entire case within subject matter jurisdiction of the chancery court and that court may proceed to adjudicate all legal issues as well. Thompson v. First Miss. Nat'l. Bank, 427 So.2d 973, 975 (Miss.1983). Furthermore, chancery courts have the discretion to award legal and even punitive damages as long as the chancery court's jurisdiction has attached. Southern Leisure Homes, Inc. v. Hardin, 742 So.2d 1088, 1090 (Miss.1999).

¶ 14. However, "[t]he circuit court should be wary of attempts to camouflage as a complicated accounting what is in essence an action at law for breach of contract." Thompson, 427 So.2d at 976, citing Dairy Queen, Inc. v. Wood, 369 U.S. 469, 82 S.Ct. 894, 8 L.Ed.2d 44 (1962). This Court has indicated that, in cases in which some doubt exists as to whether a complaint is legal or equitable in nature, the better practice is to try the case in circuit court. Southern Leisure Homes, 742 So.2d at 1090. Southern Leisure Homes also noted that "[i]t is more appropriate for a circuit court to hear equity claims than it is for a chancery court to hear actions at law since circuit courts have general jurisdiction but chancery courts enjoy only limited jurisdiction." Id.

¶ 15. In light of the foregoing, this Court's duty in this case is to determine whether there is an actual need for an equitable accounting in this case. If there is, the chancery court is within its authority to retain the entire case, including the legal claims for damages.

¶ 16.

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

Related

State of Mississippi v. Walgreen Co.
250 So. 3d 465 (Mississippi Supreme Court, 2018)
KD Hattiesburg 1128, Inc. v. Turtle Creek Crossing, LLC
237 So. 3d 157 (Mississippi Supreme Court, 2018)
Paul M. Newton, Jr. v. Betty Lou Brown
198 So. 3d 1284 (Court of Appeals of Mississippi, 2016)
Lisa Learmonth v. Sears, Roebuck & Co.
710 F.3d 249 (Fifth Circuit, 2013)
Big River Oilfield Services, LLC v. Wilcox Drilling Co., LLC
109 So. 3d 123 (Court of Appeals of Mississippi, 2012)
Mississippi Department of Revenue v. AT & T Corp.
101 So. 3d 1139 (Mississippi Supreme Court, 2012)
Teeuwissen v. JP Morgan Chase Bank, N.A.
902 F. Supp. 2d 826 (S.D. Mississippi, 2011)
Mark S. Bounds Realty Partners, Inc. v. Lawrence
34 So. 3d 1224 (Court of Appeals of Mississippi, 2010)
Schmidt v. Catholic Diocese of Biloxi
18 So. 3d 814 (Mississippi Supreme Court, 2009)
Derr Plantation, Inc. v. Swarek
14 So. 3d 711 (Mississippi Supreme Court, 2009)
Derr Plantation, Inc. v. Thomas L Swarek
Mississippi Supreme Court, 2007
Winters v. AmSouth Bank
964 So. 2d 595 (Court of Appeals of Mississippi, 2007)
Bayer Corp. v. Reed
932 So. 2d 786 (Mississippi Supreme Court, 2006)
ERA Franchise Systems, Inc. v. Mathis
931 So. 2d 1278 (Mississippi Supreme Court, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
840 So. 2d 709, 2003 WL 1343375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/remax-real-estate-partners-v-lindsley-miss-2003.