Robert C. Wiggins v. Southern Securities Group, LLC and Brandi Hoover

Mississippi Supreme Court·Decided December 4, 2025·No. 2024-CA-00251-SCT·Published

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 2024-CA-00251-SCT

ROBERT C. WIGGINS v.

SOUTHERN SECURITIES GROUP, LLC AND BRANDI HOOVER

DATE OF JUDGMENT: 02/07/2024 TRIAL JUDGE: HON. ROBERT B. HELFRICH TRIAL COURT ATTORNEYS: L. GRANT BENNETT, SR.

S. CHRISTOPHER FARRIS

COURT FROM WHICH APPEALED: FORREST COUNTY CIRCUIT COURT ATTORNEY FOR APPELLANT: S. CHRISTOPHER FARRIS ATTORNEY FOR APPELLEES: L. GRANT BENNETT, SR. NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED - 12/04/2025 MOTION FOR REHEARING FILED:

BEFORE KING, P.J., GRIFFIS AND BRANNING, JJ.

GRIFFIS, JUSTICE, FOR THE COURT:

¶1. On April 1, 2018, Robert C. Wiggins and Brandi Hoover, both financial advisors, executed two documents. The first document was an operating agreement that designated them as members of Southern Securities Group, LLC (SSG). The operating agreement included a noncompete provision as well as a mediation and an arbitration provision. The second document was a purchase-and-sale contract under which Hoover purchased Wiggins’s interest in SSG. Under the purchase-and-sale contract, Wiggins remained employed at SSG after the buyout was complete and could only be terminated for cause.

¶2. In January 2024, SSG and Hoover filed a complaint in circuit court alleging that

Wiggins had been terminated for cause and was in violation of the noncompete provision. SSG and Hoover requested, among other things, a temporary restraining order, which the trial court granted. SSG and Hoover then moved for a preliminary injunction against Wiggins to enjoin against further violation of the noncompete provision. In response, Wiggins filed a “motion to dissolve the temporary restraining order and deny the motion for preliminary injunction” as well as a motion to compel mediation and/or arbitration and to stay the proceedings. Wiggins claimed that once Hoover purchased his ownership interest in SSG, he was no longer bound by the operating agreement, including the noncompete provision. Wiggins further claimed he was wrongfully terminated.

¶3. After a hearing, the trial court granted SSG and Hoover’s motion for preliminary injunction and “continue[d] injunctive relief until . . . the merits of this civil action and its claims [we]re resolved[.]” The trial court denied Wiggins’s “motion to dissolve the temporary restraining order and deny the motion for preliminary injunction” and his motion to compel mediation and/or arbitration and to stay the proceedings.

¶4. Wiggins now appeals. Finding no error, we affirm.

FACTS AND PROCEDURAL HISTORY

¶5. Wiggins formed SSG, a wealth-management firm, in 2008. Hoover began her employment with SSG in June 2017. On April 1, 2018, Wiggins sold his ownership interest in SSG to Hoover.1 As part of the business transaction, Wiggins and Hoover executed two documents, a limited-liability-company operating agreement and a purchase-and-sale

1 Wiggins owned 80 percent of the company, and Hoover owned 20 percent.

contract.

¶6. Under the purchase-and-sale contract, Hoover obtained an additional 20 percent membership interest in SSG each year until Wiggins’s entire membership interest was purchased.2 Hoover agreed that after the completion of the buyout, Wiggins would continue to be employed at SSG at “a salary consistent with his past W-2 earnings . . . and may only be terminated for cause.” The operating agreement, which noted Hoover’s buyout of Wiggins’s interest in SSG, included a noncompete provision as well as a mediation and an arbitration provision.

¶7. Hoover’s purchase of Wiggins’s interest in SSG was completed on June 1, 2022. Wiggins remained employed at SSG until January 3, 2024, when he was terminated for cause, specifically gross insubordination.

¶8. The day after his termination from SSG, Wiggins started working at another wealth- management firm that performs the same type of services as SSG. As a result, on January 25, 2024, SSG and Hoover filed a complaint against Wiggins in the Circuit Court of Forrest County.

¶9. In their complaint, SSG and Hoover alleged claims for breach of contract, tortious breach of contract, breach of implied covenant of good faith and fair dealing, promissory estoppel, equitable estoppel, and unjust enrichment. SSG and Hoover requested a temporary restraining order; a temporary injunction and/or permanent injunction enjoining Wiggins from violating the noncompete provision; as well as economic damages, noneconomic

2 Hoover paid Wiggins a total of $500,000 for his interest in SSG.

damages, costs of litigation including attorneys’ fees, pre and postjudgment interest, punitive damages, and a constructive trust on any monetary proceeds derived by Wiggins through actions violative of the noncompete provision. SSG and Hoover also filed a motion for an expedited hearing for a temporary restraining order and/or injunctive relief.

¶10. The trial court entered a temporary restraining order on January 26, 2024. SSG and Hoover then filed a motion for preliminary injunction and asked the trial court to set the motion for a hearing as soon as possible “to prevent [them] from sustaining any further immediate and irreparable injury, loss, or damage.”

¶11. In response, Wiggins filed a “motion to dissolve the temporary restraining order and deny the motion for preliminary injunction.” Wiggins asserted that he stopped being a member of SSG on June 1, 2022, when Hoover’s purchase of SSG was finally complete and that he is therefore not bound by the operating agreement, including the noncompete provision. Wiggins further asserted that he was not terminated for cause but was wrongfully terminated because he would not agree to a pay reduction. Wiggins also filed a motion to compel mediation and/or binding arbitration and to stay the proceedings. Wiggins asserted that under the operating agreement, any disputes between the parties were to be submitted to mediation and/or arbitration. He requested that the trial court stay the proceedings including the temporary restraining order and motion for preliminary injunction and send the matter to mediation, arbitration, or both.

¶12. After a hearing, the trial court granted SSG and Hoover’s motion for preliminary injunction, denied Wiggins’s “motion to dissolve the temporary restraining order and deny

the motion for preliminary injunction,” and denied Wiggins’s motion to compel mediation and/or arbitration and to stay the proceedings. The trial court found that “[b]ecause of the inconsistencies of the [operating] [a]greement . . . , this dispute with various claims [wa]s not one that the parties agreed to or intended . . . would be subject to the [m]ediation and [a]rbitration clauses[.]” The trial court further found that based on the evidence presented at the hearing, “there [wa]s a [n]oncompete [p]rovision binding on [Wiggins],” and it therefore enjoined Wiggins from competing with SSG in violation of the noncompete provision.

¶13. Wiggins filed in this Court a petition for interlocutory appeal. In his request, Wiggins raised three issues, two of which questioned whether he was bound by the noncompete provision. The third issue questioned whether the trial court erred by denying his motion to compel mediation and/or binding arbitration and to stay the proceedings.

¶14. In response to Wiggins’s petition for interlocutory appeal, the Court entered an en banc order. In its order, the Court noted that the “pleading s[ought] interlocutory review of an [o]rder . . . which included the denial of Wiggins’s [m]otion to [c]ompel [m]ediation and/or [b]inding [a]rbitration and [s]tay the [p]roceedings” and that “[t]he Court has previously taken petitions for interlocutory appeal based upon arbitration rulings and accepted such for filings as a notice of appeal.” En Banc Order, Wiggins v. S. Sec. Grp., LLC, No. 2024-M-00251-SCT (Miss. June 6, 2024). As a result, the Court concluded that Wiggins’s request for interlocutory appeal was “accepted for filing as a notice of appeal.”

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