William C. Rodwell v. Michael Chrisman

149 So. 3d 566, 2014 Miss. App. LEXIS 595, 2014 WL 5333990
CourtCourt of Appeals of Mississippi
DecidedOctober 21, 2014
Docket2013-CA-00393-COA
StatusPublished
Cited by1 cases

This text of 149 So. 3d 566 (William C. Rodwell v. Michael Chrisman) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William C. Rodwell v. Michael Chrisman, 149 So. 3d 566, 2014 Miss. App. LEXIS 595, 2014 WL 5333990 (Mich. Ct. App. 2014).

Opinion

CARLTON, J.,

for the Court:

¶ 1. The Harrison County Circuit Court granted Michael Chrisman’s motion for *567 summary judgment in an action involving a foreclosure sale and default on the payment of promissory notes. William Rod-well argues that the circuit court erred in granting summary judgment and also erred in denying Rodwell’s motion for reconsideration. We dismiss for lack of jurisdiction due to Rodwell’s failure to file a timely notice of appeal. 1

FACTS

¶ 2. Mike Chrisman, William Rodwell, and Charles Tomasello formed CAL Investments LLC on February 2, 1998. The members of CAL formed several other related companies over the following two years before they terminated the business relationships through a purchase-and-sale agreement (PSA) dated January 20, 2000. Chrisman sold his ownership interest in CAL Investments to Rodwell and Tomasello. Rodwell and To-masello paid Chrisman $60,000 in cash and also executed a promissory note for $273,622, requiring monthly payments for ten years, with a final balloon payment due January 21, 2010. In May 2008, Rod-well and Tomasello defaulted on the note,owing a balance of $156,864.57. On April 8, 2008, Rodwell and Tomasello, on behalf of CAL Investments, executed a second note to Chrisman for $50,000. As security for the promissory notes, on May 6, 2008, CAL Investment executed guarantees to Chrisman for all liabilities and other indebtedness of CAL Investments. As further security for the promissory notes, CAL Investments granted Chris-man a deed of trust in certain real property located in Gulfport, Mississippi.

¶ 3. CAL, Rodwell, and Tomasello defaulted on their payments to Chrisman. On March 24, 2010, Chrisman sent a demand letter to CAL Investments, stating that they were in default on their payments and that if full payment of the amount due was not received by April 24, 2010, Chrisman would foreclose on the real property.

¶ 4. On August 24, 2010, after posting and publication of the Notice for Sale, the Trustee foreclosed on the subject real property. Chrisman offered the highest bid at the foreclosure, obtaining the real property for $8,000. On February 4, 2011, Chrisman then filed suit for the remainder of the money owed him, as well as attorneys’ fees and costs.

¶ 5. On April 26, 2011, Chrisman filed his first amended complaint. Between June 10, 2011, and July 25, 2011, Chrisman filed his application for entries of default against Rodwell, CAL, and Tomasello. The circuit clerk filed its entry of default on all three defendants.

¶ 6. On July 25, 2011, Eric Wooten, counsel for Rodwell and Tomasello, contacted Chrisman to inform him that, after receiving Chrisman’s complaint, he informed Rodwell and Tomasello of a potential conflict of interest, and that he would be unable to represent them in the matter. Wooten assumed that Rodwell and Toma-sello would contact their other counsel to represent them, but Rodwell and Tomasel-lo failed to understand Wooten’s instructions on the matter, and never retained different counsel. Upon hearing of the misunderstanding, Chrisman agreed to waive the conflict of interest and allow Wooten to represent Rodwell and Toma-sello, but refused to withdraw his motions for default.

¶ 7. On July 29, 2011, CAL, Rodwell, and Tomasello objected to Chrisman’s motion for default and disputed the trial court’s subject-matter jurisdiction to hear Chrisman’s claims. CAL, Rodwell, and *568 Tomasello also filed a motion to transfer the case to chancery court. After filing the motion, CAL, Rodwell, and Tomasello assert that counsel for both parties discussed Chrisman’s failure to have the property appraised prior to the foreclosure of the deed of trust. On March 1, 2012, Chrisman filed a notice of hearing on the motion for default and on March 9, 2012, Chrisman filed a supplemental motion for a default judgment, or in the alternative, summary judgment. CAL, Rodwell, and Tomasello filed a motion objecting to Chrisman’s motion for summary judgment.

¶ 8. On April 20, 2012, the circuit court heard arguments on the following: (1) Chrisman’s supplemental motion for a default judgment, or in the alternative, summary judgment; and (2) CAL, Rodwell, and Tomasello’s motion to set aside default and motion for discovery. 2 The circuit court granted partial summary judgment in favor of Chrisman, but found genuine issues of material fact to exist, including: the value of real property at issue at the date of the foreclosure; the manner in which Chrisman determined the price paid for the subject real property at the foreclosure sale; and the total amount of indebtedness owed to Chrisman by CAL, Toma-sello, and Rodwell. The circuit court also granted CAL, Tomasello, and Rodwell’s request for discovery, and allowed both parties to conduct discovery limited to the remaining issues.

¶ 9. On May 2, 2012, Wooten informed Chrisman of CAL and Tomasello’s decision not to pursue their defenses in the action, and attached a proposed consent judgment.

¶ 10. On May 22, 2012, Rodwell filed a motion for a protective order, requesting the circuit to restrict the discovery Chris-man propounded upon Rodwell to the three areas of limited discovery allowed by the circuit court. Chrisman then filed a motion to compel Rodwell to fully and completely answer requests for admissions, or in the alternative, deem certain requests admitted.

¶ 11. On May 28, 2012, the trial court entered an order setting aside the clerk’s entries of default against CAL, Rodwell, and Tomasello. However, the circuit court held that it indeed possessed jurisdiction over the matter, since Chrisman’s claims originated on two promissory notes for damages, which are “at law” claims and “do not sound exclusively in equity.”

¶ 12. On June 28, 2012, Rodwell filed a motion to compel responses to discovery and for a continuance, requesting the circuit court to order Chrisman to fully respond to the interrogatories and document requests propounded on him by Rodwell and to continue the trial, which the circuit court set for September 10, 2012.

¶ 13. On July 2, 2012, Chrisman filed a second motion for summary judgment, requesting the circuit court to grant summary judgment in favor of Chrisman for the balance due under the promissory notes after giving Rodwell credit for the value placed on the foreclosed real property by Rodwell’s appraiser.

¶ 14. The trial court granted Chris-man’s second motion for summary judgment, finding that under Mississippi law, no obligation existed for Chrisman to determine the value of the real property prior to the foreclosure sale. The circuit court further held that Mississippi law only required Chrisman to give Rodwell credit for the fair value of the property *569 against the balance due under their promissory notes, which Chrisman did through the reduced demand for judgment in his second motion for summary judgment.

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Bluebook (online)
149 So. 3d 566, 2014 Miss. App. LEXIS 595, 2014 WL 5333990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-c-rodwell-v-michael-chrisman-missctapp-2014.