USF&G Ins. Co. of Miss. v. Walls

911 So. 2d 463, 2005 WL 2234781
CourtMississippi Supreme Court
DecidedSeptember 15, 2005
Docket2002-IA-00185-SCT
StatusPublished
Cited by6 cases

This text of 911 So. 2d 463 (USF&G Ins. Co. of Miss. v. Walls) 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
USF&G Ins. Co. of Miss. v. Walls, 911 So. 2d 463, 2005 WL 2234781 (Mich. 2005).

Opinion

911 So.2d 463 (2005)

USF&G INSURANCE COMPANY OF MISSISSIPPI
v.
George K. WALLS and Roxie Ann Wells.

No. 2002-IA-00185-SCT.

Supreme Court of Mississippi.

September 15, 2005.

Luther T. Munford, Fred L. Banks, Jr., Jane E. Tucker, Jackson, attorneys for appellant.

Richard T. Phillips, Thomas Alan Womble, Batesville, attorneys for appellees.

EN BANC.

ON MOTION FOR REHEARING

GRAVES, Justice, for the Court.

¶ 1. The motion for rehearing is granted. The prior opinion is withdrawn, and this opinion is substituted therefor.

¶ 2. Roxie Ann Wells and George K. Walls were in a car wreck. Roxie sued George, whose insurer was USF&G Insurance Company of Mississippi. USF&G paid Roxie $22,632.50 for the loss of her 1995 Chrysler Concorde, since George had rear-ended her with his 1991 GMC pickup. This claim was paid before any personal injury claim of Roxie was examined.

¶ 3. Then Roxie attempted to recover from USF&G for her injuries. She was informed that George's policy had a single limit coverage of only $25,000 per accident—or just a little over two thousand dollars coverage left for that one accident. Roxie argued that the coverage was deficient under Mississippi statutory levels, and in a novel move, George agreed with her. Roxie dismissed her complaint against George, and together the two filed suit in chancery court against USF&G. However, we do not have before us today a complicated question of policy limits and insurance law. Instead, in their suit Roxie *464 and George invoked an ancient Mississippi doctrine that has long been disfavored.

¶ 4. Roxie and George filed suit in the Chancery Court of Panola County not just on behalf of themselves, but also "on behalf of a clearly ascertainable class of others similarly situated." This "class" allegedly consisted of USF&G insureds and those who were injured by USF&G insureds. The title of the complaint called it a "Class Action Complaint for Equitable and Injunctive Relief and Actual and Punitive Damages."

¶ 5. USF&G objected to the complaint and moved to dismiss, arguing that class actions could not exist under Mississippi law. Despite its objections, the chancellor denied the motion and certified the plaintiff class. We granted USF&G's petition for interlocutory appeal, see M.R.A.P. 5, which asks one question: does Mississippi recognize "equitable class actions" in chancery, despite an omission of Rule 23 from our Rules of Civil Procedure? After a review of the history of the law, we answer that question in the negative.

DISCUSSION

¶ 6. "Mississippi is one of only three states that never adopted Rule 23 as a part of their state rules of civil procedure." Richard T. Phillips, Class Action & Joinder in Mississippi, 71 Miss. L.J. 447, 453 (2001) ("Phillips"). "The other states which have no Rule 23 state court class actions, Virginia and New Hampshire, both expressly recognize `equitable class actions' . . . in consumer litigation." Id. at 453 n. 14. It has been theorized that Mississippi coped with the absence of a codified Rule 23 in three ways: "(1) the mass aggregation of individual claims under Rules 20 and 42 of the Rules of Civil Procedure, (2) the `ancient equitable remedy' of the `equitable class action' and (3) where all else fails, the prosecution of select individual cases for punitive damages." Phillips, at 455.

¶ 7. It sounds a bit irrational to speak of Mississippi's "adoption" of Rule 23 after remarking how Mississippi does not have class actions. Yet a rule was adopted— after a fashion. When the Rules of Civil Procedure went into effect on January 1, 1982, they read (and still read):

Rule 23. Class actions. [Omitted].
Rule 23.1. Derivative actions by shareholders. [Omitted].
Rule 23.2. Actions relating to unincorporated associations. [Omitted]

¶ 8. The numbering is a byproduct of the patterning of the Mississippi Rules of Civil Procedure after the Federal Rules of Civil Procedure, which do have class actions. See Owens v. Thomae, 759 So.2d 1117, 1121 n. 2 (Miss.1999). The comment to Mississippi Rule 23 was meant to convey our reluctance to adopt the elaborate mechanisms of the class action, since "[f]ew procedural devices have been the subject of more widespread criticism and more sustained attack—and equally spirited defense—than practice under Federal Rule 23 and its state counterparts." Miss. R. Civ. P. 23 cmt.[1]

*465 ¶ 9. Yet the comment was ambiguous. The first sentence reads: "[c]lass action practice is not being introduced into Mississippi trial courts at this time." (emphasis added). For it is a matter of fact and law that "class actions were recognized in Mississippi as a matter of general equity jurisdiction long before adoption of the Mississippi Rules of Civil Procedure," so no introduction was necessary. Phillips, at 455 (emphasis added). See also Marx v. Broom, 632 So.2d 1315, 1322 (Miss.1994) (noting that "[p]rior to the enactment of the Rules of Civil Procedure, this Court recognized the possibility of class action suits as a matter of general equity jurisdiction in chancery court under limited circumstances"). This has long been accepted. The "lawyer's bible" of chancery practice in Mississippi, Mississippi Chancery Practice, details the ambiguity.[2] "It was not necessary to introduce class action, as it already existed." Griffith, Mississippi Chancery Practice, § 130 (2000) ("Griffith") (emphasis added).

¶ 10. Furthermore, "[t]he Mississippi Code has long provided and still provides for costs in class action suits in the Mississippi chancery courts." Phillips, at 458 (emphasis added); see also Griffith, at § 130 ("[p]rovision is made for costs in class actions"). Miss.Code Ann. § 11-53-37 (Rev.2002), adopted in 1948, specifies:

Where a party hereafter institutes a suit for the benefit of himself and all others similarly situated, and thereby there is in such suit recovered or preserved property or a fund for the common benefit, the chancery court may make an allowance to such party of the reasonable costs incurred, which costs shall include the necessary disbursements, and reasonable solicitor's fees, out of the property recovered or preserved for the common benefit.

(emphases added). Section 11-53-37 presents a conflict with Rule 23.

¶ 11. Three commentators have noted the statute's existence and simply relied upon the section as evidence that Mississippi has class action suits at equity. See Geoffrey P. Miller & Lori S. Singer, Non-pecuniary Class Action Settlements, 60 Law & Contemp. Probs. 97, 146 (1997) (under the table "State Rules," showing that Mississippi "[r]ecognizes [a] common fund by statute," citing to Section 11-53-37); Phillips, at 458; Kurt A. Schwarz, Note, Due Process and Equitable Relief in State Multistate Class Actions after Phillips Petroleum Co. v. Shutts, 68 Tex. L.Rev. 415, 450 n. 84 (1989) (offering that while "Mississippi has no formal rule [pertaining to class actions] . . . section 11-53-37 permits costs and attorneys' fees in successful class suits").

¶ 12.

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911 So. 2d 463, 2005 WL 2234781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/usfg-ins-co-of-miss-v-walls-miss-2005.