Scruggs, Millette, Bozeman & Dent, PA v. MERKEL & COCKE, PA

804 So. 2d 1000, 2001 WL 1587918
CourtMississippi Supreme Court
DecidedDecember 13, 2001
Docket1999-CA-00406-SCT, 2000-CA-01370-SCT
StatusPublished
Cited by25 cases

This text of 804 So. 2d 1000 (Scruggs, Millette, Bozeman & Dent, PA v. MERKEL & COCKE, PA) 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
Scruggs, Millette, Bozeman & Dent, PA v. MERKEL & COCKE, PA, 804 So. 2d 1000, 2001 WL 1587918 (Mich. 2001).

Opinion

804 So.2d 1000 (2001)

SCRUGGS, MILLETTE, BOZEMAN & DENT, P.A. f/k/a Scruggs, Millette, Lawson, Bozeman & Dent, P.A., Richard F. Scruggs, Richard F. Scruggs, P.A. and Asbestos Group, P.A.
v.
MERKEL & COCKE, P.A., William Roberts Wilson, Jr., and William Roberts Wilson, Jr., P.A.
Scruggs, Millette, Bozeman & Dent, P.A; Richard F. Scruggs, Asbestos Group, P.A. and Richard F. Scruggs, P.A.
v.
Merkel and Cocke, P.A.

Nos. 1999-CA-00406-SCT, 2000-CA-01370-SCT.

Supreme Court of Mississippi.

December 13, 2001.

*1002 Daniel M. Weir, Jeffery P. Reynolds, Jim Warren, Jackson, James L. Carroll, Jackson, Charles E. Webster, Clarksdale, Myles A. Parker, Jackson, H. Hunter Twiford, Kate Margolis, Teri Dunaway Gleason, Attorneys for Appellant.

Charles M. Merkel, Clarksdale, Attorneys for Appellee.

EN BANC.

EASLEY, Justice, for the Court.

¶ 1. In September of 1997, Scruggs, Millette, Bozeman & Dent, P.A. ("SMBD") filed a lawsuit in the Jackson County Chancery Court against Merkel & Cocke, P.A. ("Merkel & Cocke"), Charles Merkel ("Merkel"), Cynthia Mitchell ("Mitchell"), William Roberts Wilson, Jr., P.A. ("Wilson") and Asbestos Group, P.A ("Asbestos Group"). Prior to SMBD bringing the Jackson County action, Scruggs assigned his interest in the Scott litigation over to SMBD. The lawsuit filed in Jackson County placed in issue the alleged mishandling of attorneys' fees received by Merkel & Cocke in 1994. These fees were derived from the Scott litigation, a wrongful death action against the asbestos industry.

¶ 2. Approximately six (6) months later, on March 26, 1998, Merkel & Cocke filed the instant action in the Chancery Court of Coahoma County seeking to interplead a share of the 1996 and 1998 attorneys' fees received from the Scott litigation. SMBD responded by filing a motion to dismiss Merkel & Cocke's complaint, primarily stating that the complaint should be barred by the doctrine of priority jurisdiction as the attorneys' fees were already an issue in the Jackson County Chancery Court litigation. Richard F. Scruggs, Richard F. Scruggs, P.A., and Asbestos Group, P.A., (hereafter collectively referred to as "Scruggs") also filed a motion to dismiss upon similar grounds. The Coahoma County Chancery Court denied both motions to dismiss and granted the interpleader relief, finding Merkel & Cocke to be a disinterested stakeholder with respect to the $4,953.43 of attorneys' fees interpled. The Coahoma County Chancery Court also discharged Merkel & Cocke from any liability for the handling of the interpled funds and transferred the remaining dispute over entitlement to pending litigation in the Circuit Court of Hinds County. Additionally, the Coahoma Chancery Court ordered SMBD to pay Merkel & Cocke attorneys' fees pursuant to Miss. R. Civ. P. 11(b). Both SMBD and Scruggs timely perfected an appeal to this Court. This Court, in its opinion dated *1003 July 20, 2000, dismissed the appeal. This Court held that "in the absence of a Rule 54(b) certification, the orders are interlocutory and are not appealable as final judgments," and the appeal was dismissed. Scruggs, Millette, Bozeman & Dent, P.A. v. Merkel & Cocke, P.A., 763 So.2d 869-872 (Miss.2000). From that ruling, Merkel & Cocke obtained certification of a final judgment pursuant to Rule 54(b) of the Coahoma County Chancery Court on August 4, 2000. This appeal is taken from the final judgment of the Chancery Court of Coahoma County.

STATEMENT OF ISSUES
I. WHETHER MERKEL & COCKE WERE REQUIRED TO FILE ITS CLAIM FOR INTERPLEADER RELIEF AS A COMPULSORY COUNTERCLAIM IN THE JACKSON COUNTY LITIGATION?
II. WHETHER MERKEL & COCKE'S ACCOUNTING ISSUES IN JACKSON COUNTY CHANCERY COURT SHOULD BE TRANSFERRED TO HINDS COUNTY CIRCUIT COURT?
III. WHETHER THE CHANCELLOR ERRED IN GRANTING THE INTERPLEADER AND RELIEVING MERKEL AND COCKE FROM LIABILITY?
IV. WHETHER THE CHANCELLOR ERRED IN AWARDING ATTORNEYS' FEES TO MERKEL & COCKE?

LEGAL ANALYSIS

I. Compulsory Counterclaim

¶ 3. Scruggs and SMBD contend that the Coahoma County Chancery Court erred in accepting jurisdiction and granting the interpleader requested by Merkel & Cocke. Scruggs and SMBD argue that Merkel & Cocke had a compulsory counterclaim which should have been filed in Jackson County Chancery Court as part of the already pending claims and litigation. In Fulgham v. Snell, 548 So.2d 1320, 1323 (Miss.1989), this Court stated that when a party does not file a compulsory counterclaim, the right to raise that claim in subsequent litigation is thereby waived. Mississippi Rules of Civil Procedure 13(a) establishes when filing a compulsory counterclaim is proper. Rule 13(a)(1)-(3) of M.R.C.P. states as follows:

(a) Compulsory Counterclaims. A pleading shall state as a counterclaim any claim which at the time of serving the pleading the pleader has against any opposing party if it arises out of the transaction or occurrence that is the subject matter of the opposing party's claim and does not require for it adjudication the presence of third parties over whom the court cannot acquire jurisdiction. But the pleader need not state the claim if:
(1) at the time the action was commenced the claim was the subject of another pending action; or
(2) the opposing party brought suit upon his claim by attachment or other process by which the court did not acquire jurisdiction to render a personal judgment on that claim, and the pleader is not stating any counterclaim under this Rule 13; or
(3) the opposing party's claim is one which an insurer is defending.
In the event an otherwise compulsory counterclaim is not asserted in reliance upon any exception stated in paragraph (a), re-litigation of the claim may nevertheless be barred by the doctrines of res judicata or collateral estoppel by judgment in the vent certain issues are determined adversely *1004 to the party electing not to assert the claim.

M.R.C.P. 13.

¶ 4. In Magee v. Griffin, 345 So.2d 1027, 1032 (Miss.1977), this Court further stated:

It is, and should be, a paramount concern of the judiciary to prevent multiple suits where one suit will suffice. There is a tendency, perhaps, to forget that one who undergoes the rigors of an action, with all of its traumatic impact, loss of time, delay, substantial expense and disruption of his affairs, with consequent appeals and possible retrials and still other appeals, should be spared having to do this more often than is strictly necessary. Even the successful party after bearing the expense of one trial and of one appeal is, in many instances, hardly a winner.

A logical relation must exist between the claim and the counterclaim for the counterclaim to be a compulsory counterclaim. M.R.C.P. 13(a); Fulgham, 548 So.2d at 1322.

¶ 5. This Court in Fulgham developed a test for whether the case in question arose from the same transaction or occurrence on which the opposing action was based as required under M.R.C.P. 13(a) for a compulsory counterclaim. In Fulgham, the Court used the following questions to determine the connection of the claim to the counterclaim:

(1) Whether the same evidence or witnesses are relevant to both claims;

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Bluebook (online)
804 So. 2d 1000, 2001 WL 1587918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scruggs-millette-bozeman-dent-pa-v-merkel-cocke-pa-miss-2001.