Watts v. Pennington

598 So. 2d 1308, 1992 WL 79207
Mississippi Supreme Court·Decided April 22, 1992·No. 07-CA-59354·Published·Cited by 23 cases

Opinion

598 So.2d 1308 (1992)

Kenneth WATTS, Grace Watts Mitts and Southern Farm Bureau Casualty Insurance Co.
v.
John H. PENNINGTON.

No. 07-CA-59354.

Supreme Court of Mississippi.

April 22, 1992.

Kenneth Watts, Grace Watts Mitts, Eppes Watts & Shannon, Meridian, for appellants.

Laurel G. Weir, Thomas L. Booker, Jr., Weir & Booker, Philadelphia, for appellee.

EN BANC.

DAN M. LEE, Presiding Justice, for the Court:

This is an appeal from an order issued by the circuit court judge of Neshoba County, Mississippi, wherein the court sanctioned attorneys Kenneth Watts, Grace Watts *1309 Mitts, and their client's insurer, Southern Farm Bureau Casualty Insurance Company [hereinafter Farm Bureau]. The trial judge ordered a $900.00 sanction against both attorneys and Farm Bureau, jointly and severally, for failure to abide by the judge's deadline to either settle their case before the end of the pre-trial conference, or else risk the imposition of sanctions should the case be settled at some point after the pre-trial conference.

We find that this appeal begs an answer to a specific question. Can a circuit court adopt a deadline which directly contravenes a Uniform Circuit Court Rule regarding the amount of time which a party has to report a settlement to the court? After a review of the record, briefs, and arguments of counsel before this Court, we answer this question in the negative and reverse the order issued by the Neshoba County Circuit Court sanctioning Mr. Watts, Ms. Mitts and Farm Bureau.

FACTS

John H. Pennington was the plaintiff in the original lawsuit which arose from an automobile accident, but the accident itself is of little consequence to this appeal. The defendants were Michael Cloud, Virgil Brown, Henry Slaughter, and Harvis Carney. Defendant Virgil Brown never made an appearance in the suit, and defendants Henry Slaughter and Harvis Carney were dismissed from the suit by way of summary judgment. Thus, Michael Cloud[1] remained as the lone defendant with an active defense. Cloud's insurer was Farm Bureau, and pursuant to the terms of Cloud's policy, Farm Bureau retained attorneys Kenneth Watts and Grace Watts Mitts to represent Cloud in the defense of this suit.

The case was set for trial at the regular docket call of the Neshoba County Circuit Court for March 7, 1988, but it was later continued until March 17, 1988. On February 9, 1988, the trial judge sent a form letter to all attorneys of record which announced a pre-trial conference[2] to be held on February 29, 1988. This letter included several instructions, one of which was the following.

[I]n order to accomplish all the purposes of conducting the pre-trial hearings, each party and attorney should consider that that (pre trial conference) is the last opportunity to settle and that `the jury is in the box.' When the pre-trial and related matters are concluded, your case will either be settled or definitely for trial!

(Emphasis by the trial judge).

In strong, terse terms, the letter stated that the pre-trial conference would be the last opportunity to settle the case. The attorneys were instructed to either bring the parties to the conference or to have them available by telephone so that any settlement developments could be communicated between the parties.

As a matter of practice, Mr. Watts and Ms. Mitts notified Farm Bureau that a pre-trial conference was scheduled but did not inform them of the judge's "last chance to settle deadline."[3] Attorneys Watts and Mitts steadfastly maintain that it was their considered judgment and opinion that prior to the pre-trial conference, there was no liability on the part of their client. Specifically, they considered proximate cause to be a close question, and they also cited an independent intervening cause which they thought was detrimental to the plaintiff's case. They simply were not entertaining any thoughts of settlement. But for whatever reason, this view of no liability on the part of Mr. Watts and Ms. Mitts changed as a result of the pre-trial conference and from events learned on February 29 and March 1, 1988. Mr. Watts and Ms. Mitts *1310 formed a new assessment of the case. On March 2, 1988, Mr. Watts wrote a letter to Farm Bureau which advised of a recommendation to settle and requested authority to settle in the range of thirty to fifty thousand dollars [$30,000.00 to $50,000.00].

One of the claims adjusters[4] testified that Farm Bureau was completely unprepared for this new evaluation from Mr. Watts since they were previously under the impression that this was a no liability situation for their client, defendant Michael Cloud. Consequently, there were several phone calls between the attorneys and Farm Bureau during the next two weeks. The claims adjuster stated that when this new evaluation came in from Mr. Watts and Ms. Mitts, Farm Bureau forwarded the file to their general counsel for further review and advice — a second opinion, if you will. During this two week period between pre-trial conference and trial, the trial judge was kept informed of Farm Bureau's re-evaluation of the case, and the judge extended the deadline for settlement until 10:00 a.m. on Friday, March 11, 1988.

Mr. Watts testified that he informed the claims adjuster that the time in which to settle was, in fact, a limited time offer or else, "we would be exposed to sanctions." But the claims adjuster testified as follows: "We were told if we made any type settlement negotiations or it was settled anytime prior to 5:00 o'clock the day before trial, no sanctions."

After the claims adjusters and general counsel for Farm Bureau had studied the case further in the two week period following the pre-trial conference, all concurred in the settlement recommendations made by attorneys Watts and Mitts. The case was ultimately settled near the hour of 4:00 p.m. on Wednesday, March 16, 1988, the eve of trial. The court administrator was immediately notified, and then the judge was notified by telephone. The court acknowledges that it was notified of the settlement prior to 5:00 p.m. on the eve of trial, and this fact is not in dispute. However, since notification occurred after the deadline established by the court, the trial judge instructed Mr. Watts to appear in his chambers the next day at 8:45 a.m. for the consideration of sanctions.

The court issued an opinion and order on March 22, 1988. The judge originally sanctioned the defendant, Michael Cloud, and his insurer, Farm Bureau, for $900.00,[5] jointly and severally. The court stated the following as the reason for sanctions:

On many occasions, the attorneys for the Defendant, Cloud, both Ms. Mitts and Mr. Watts, were instructed to advise their client that upon final communication to the Court, that the Court considered the matter definitely for trial and that all settlement discussions were closed, and that the Court would consider and likely impose sanctions in the event of a change in that position.

Attorneys Watts and Mitts filed a motion to alter or amend the opinion and order. The judge noticed a hearing on the motion which was held in Carthage, Mississippi, on April 5, 1988. The hearing in Carthage accomplished very little. At the Carthage hearing, the trial judge simply ordered the attorneys to appear at yet another hearing on April 18, 1988, in Newton County and to bring with them the two claims adjusters with Farm Bureau who had worked on this file. Mr. Watts and Ms. Mitts appeared in Newton County for the second hearing and *1311

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

Watts v. Pennington, 598 So. 2d 1308, 1992 WL 79207 (Mich. 1992).

598 So. 2d 1308 (Watts v. Pennington) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Knight v. Knight
85 So. 3d 832 (Mississippi Supreme Court, 2012)
Van Sullivan v. Sullivan
43 So. 3d 536 (Court of Appeals of Mississippi, 2010)
State Farm Mutual Automobile Insurance Co. v. Jones
37 So. 3d 87 (Court of Appeals of Mississippi, 2009)
Pool v. Pool
989 So. 2d 920 (Court of Appeals of Mississippi, 2008)
Flandermeyer v. Bonner
2006 OK 87 (Supreme Court of Oklahoma, 2006)
Cucos, Inc. v. McDaniel
938 So. 2d 238 (Mississippi Supreme Court, 2006)
Cucos, Inc. v. Jerry McDaniel
Mississippi Supreme Court, 2005
Peden v. City of Gautier
870 So. 2d 1185 (Mississippi Supreme Court, 2004)
Morgan v. Greenwaldt
786 So. 2d 1037 (Mississippi Supreme Court, 2001)
Genia A. Morgan v. Brenda Greenwaldt
Mississippi Supreme Court, 1999
Estate of Stowers v. Jones
678 So. 2d 660 (Mississippi Supreme Court, 1996)
Dew v. Langford
666 So. 2d 739 (Mississippi Supreme Court, 1995)
In Re Merrell
658 So. 2d 50 (Mississippi Supreme Court, 1995)
Thomas v. Hilburn
654 So. 2d 898 (Mississippi Supreme Court, 1995)
Yarbrough v. Camphor
645 So. 2d 867 (Mississippi Supreme Court, 1994)
Koerner v. Crittenden
635 So. 2d 833 (Mississippi Supreme Court, 1994)
Delie Mae Shepard v. Kierra Brachell Jones
Mississippi Supreme Court, 1993
Matter of Estate of Taylor
609 So. 2d 390 (Mississippi Supreme Court, 1992)