William T. White and William T. White d/b/a White Haul Transport, Inc. v. Patsy B. White

CourtCourt of Appeals of Mississippi
DecidedAugust 16, 2022
Docket2021-CP-00333-COA
StatusPublished

This text of William T. White and William T. White d/b/a White Haul Transport, Inc. v. Patsy B. White (William T. White and William T. White d/b/a White Haul Transport, Inc. v. Patsy B. White) 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 T. White and William T. White d/b/a White Haul Transport, Inc. v. Patsy B. White, (Mich. Ct. App. 2022).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI

NO. 2021-CP-00333-COA

WILLIAM T. WHITE AND WILLIAM T. WHITE APPELLANT D/B/A WHITE HAUL TRANSPORT, INC.

v.

PATSY B. WHITE APPELLEE

DATE OF JUDGMENT: 07/14/2020 TRIAL JUDGE: HON. ROGER T. CLARK COURT FROM WHICH APPEALED: HARRISON COUNTY CIRCUIT COURT, FIRST JUDICIAL DISTRICT ATTORNEY FOR APPELLANT: WILLIAM T. WHITE (PRO SE) ATTORNEY FOR APPELLEE: PAUL E. ROGERS NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED IN PART; REVERSED AND REMANDED IN PART - 08/16/2022 MOTION FOR REHEARING FILED: MANDATE ISSUED:

BEFORE WILSON, P.J., McDONALD AND SMITH, JJ.

WILSON, P.J., FOR THE COURT:

¶1. This is the third time that William White and his mother, Patsy White, have been

before this Court concerning related business disputes and conveyances of real property. See

White v. White, 325 So. 3d 666 (Miss. Ct. App. 2019) (“White I”), cert. dismissed, 291 So.

3d 1111 (Miss. 2020); White v. White, 314 So. 3d 128 (Miss. Ct. App. 2020) (“White II”),

cert. denied, 314 So. 3d 1161 (Miss. 2021). In this case, William’s complaint asserted claims

for damages and also sought to recover and to impose a constructive trust on certain land that

he had deeded to Patsy. The circuit court dismissed William’s complaint, holding that his claims for damages were barred by the statute of limitations and that the complaint failed to

state a claim for a constructive trust. For the reasons explained below, we conclude that the

circuit court properly dismissed William’s claims for damages based on the statute of

limitations, but the circuit court erred to the extent that it dismissed William’s claims to

recover and impose a constructive trust on certain real properties that he previously deeded

to Patsy. Accordingly, we affirm in part and reverse and remand in part.

FACTS1 AND PROCEDURAL HISTORY

¶2. Prior to 2002, William worked for his parents, Larrye and Patsy White, in the family

business of selling manufactured homes. In 2002, Larrye and Patsy desired to retire and sell

their business and “sales center.” William agreed to buy the sales center with owner

financing from Larrye and Patsy. An essential term of the sale was that Larrye and Patsy

agreed to provide William a $500,000 line of credit for the purchase of new inventory.

¶3. In 2005, Larrye and Patsy lost their largest line of credit, which they had used to

finance their line of credit to William. In addition, one of Larrye and Patsy’s creditors sued

them and obtained a judgment against them for approximately $800,000. Around the same

time, Larrye and Patsy asked William to pay off his debt to them by obtaining a new loan

against the sales center. Larrye and Patsy promised that they would then use the funds to

1 Because the circuit court dismissed William’s complaint pursuant to Mississippi Rule of Civil Procedure 12(b)(6), we accept the factual allegations of William’s complaint as true. City of Meridian v. $104,960.00 U.S. Currency, 231 So. 3d 972, 974 (¶8) (Miss. 2017).

2 continue to provide William a line of credit for new inventory. William obtained a $330,000

loan from a bank, which he used to pay off Larrye and Patsy. However, Larry and Patsye

failed to honor their agreement to continue to provide William a line of credit. As a result,

William eventually was left without product to sell, he was unable to meet his business’s

other financial obligations, and he was forced to close his business.

¶4. After Hurricane Katrina hit the Gulf Coast in 2005, William, Larrye and Patsy, and

William’s brother agreed to enter into a joint venture to provide temporary housing and other

services to hurricane victims. The joint venture was operated through White Haul Transport

Inc., a corporation that William owned. White Haul obtained several FEMA contracts, but

its largest contract was with Coastal Bridge Company LLC. After several months of work

by White Haul, Coastal Bridge breached the parties’ contract and owed White Haul more

than $1,000,000. In May 2006, William hired a New Orleans law firm to file suit against

Coastal Bridge. The lawsuit, which was filed in federal court in Louisiana, progressed

slowly. William incurred significant out-of-pocket expenses and “was forced to devote his

time exclusively to the prosecution of the case.” In order for William to “focus solely on the

prosecution of the case and thereby maximize the [joint venturers’] recovery,” Larrye and

Patsy “agreed to fund the remainder of the . . . litigation” against Coastal Bridge and cover

William’s business loans and personal expenses.

¶5. Although William diligently pursued the Coastal Bridge litigation, Larrye and Patsy

at times failed to honor their commitment to make payments on William’s business and

3 personal loans. As a result, properties that William or his business owned were subjected to

foreclosure. In addition, the trial in the Coastal Bridge case had to be continued, resulting

in a delay of more than a year. In March 2009, “[k]nowing that [their] actions had placed

[William] in a vulnerable position, [Larrye and Patsy] drafted and demanded that [William]

sign an assignment agreement” and a related agreement governing the disbursement of any

recovery in the Coastal Bridge litigation. The disbursement agreement provided that any

recovery would first be used to reimburse Larrye and Patsy for legal costs they had paid. The

balance would be split among the joint venturers, but William agreed to repay Larrye and

Patsy from his share for any expenses they had paid on his behalf.

¶6. In addition, in December 2008 and June 2009, Larrye and Patsy insisted that William

deed them five properties he owned. William had over $500,000 in equity in the properties,

which included his home and approximately thirty-six acres in Pike County and Lincoln

County. William alleges that the deeds were not intended to be “absolute deeds but were

deeds in lieu of deeds of trust”—i.e., a form of “collateral” for expenses Larrye and Patsy had

paid on his behalf. William continued to exercise possession and otherwise act as the owner

of the properties. William alleges that Larrye and Patsy promised to return the properties to

him once they were repaid from any recovery in the Coastal Bridge litigation.2 Larrye died

2 William alleges that Larrye and Patsy also wanted him to deed them the properties in order to hide assets from William’s creditors. William claims that he did not want to hide assets from his creditors but assented to his parents’ demands because of his vulnerable financial position. One of William’s creditors later sued William, Larrye, and Patsy in the Pike County Chancery Court, and the chancellor found that three of the deeds at issue were

4 in March 2010.

¶7. In May 2010, White Haul settled its lawsuit against Coastal Bridge for $597,000.

After legal fees and expenses were deducted, White Haul received $536,700.59. Pursuant

to the assignment agreement and disbursement agreement, White Haul paid Patsy almost all

of its recovery—$528,500. However, Patsy failed to keep her commitments to William.

According to William, Patsy refused to pay him his share of the recovery, as required by the

disbursement agreement. In addition, Pasty refused to reconvey William’s properties to him,

as she had promised, even though she had been more than repaid for all expenses that she

previously paid on William’s behalf.

¶8.

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William T. White and William T. White d/b/a White Haul Transport, Inc. v. Patsy B. White, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-t-white-and-william-t-white-dba-white-haul-transport-inc-v-missctapp-2022.