Scruggs, et al. v. Wyatt
| Docket Number: | 2010-CA-00122-SCT Linked Case(s): 2010-CA-00122-SCT |
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| Supreme Court: | Opinion Link Opinion Date: 02-21-2013 Opinion Author: Randolph, P.J. Holding: Reversed and Remanded |
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| Additional Case Information: |
Topic: Contract - Arbitration agreement - Waiver - M.R.C.P. 12(b)(3) Judge(s) Concurring: Waller, C.J., Dickinson, P.J., Lamar, Kitchens, Chandler, Pierce and King, JJ. Non Participating Judge(s): Coleman, J. Procedural History: Motion to Compel Arbitration Nature of the Case: CIVIL - CONTRACT |
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| Trial Court: |
Date of Trial Judgment: 01-16-2010 Appealed from: Lafayette County Circuit Court Judge: Edward C. Prisock Disposition: Denied a motion to compel arbitration. Case Number: L-09-260 |
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| Consolidated: 2012-CA-00152-SCT David H. Nutt, Mary Kirchbaum McAlister, Nutt & McAlister, PLLC, David Nutt, P.A. and David Nutt & Associates, P.C. v. Derek A. Wyatt; Lafayette Circuit Court; LC Case #: L-09-260; Ruling Date: 12/22/2011; Ruling Judge: Edward C. Prisock | ||
| Party Name: | Attorney Name: | |||
| Appellant: | Richard F. Scruggs and SLF, Inc. |
JOSEPH ANTHONY SCLAFANI
CHRISTOPHER A. SHAPLEY
LAWRENCE ELVIN ALLISON
WILLIAM H. LISTON, JR.
WILLIAM LISTON, III |
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| Appellee: | Derek A. Wyatt | MICHAEL D. SIMMONS DONNA MARIE MEEHAN |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Contract - Arbitration agreement - Waiver - M.R.C.P. 12(b)(3) |
| Summary of the Facts: | The Scruggs Law Firm, Inc., Nutt & McAlister, PLLC and others formed the Katrina Joint Venture. Nutt & McAlister then entered into an oral employment contract with attorney Derek Wyatt. Wyatt and Nutt each take a different position with regard to what Wyatt was to be paid. In 2009, Nutt filed a “Verified Petition for Replevin and Complaint for Declaratory Judgment to Adjudicate Amount Owed by Nutt & McAlister, PLLC to Wyatt, or Amount Owed by Wyatt to Nutt & McAlister, PLLC.” Wyatt filed a separate action in a different court against Scruggs and Nutt. Nutt filed a motion to transfer venue which was denied. Nutt also requested that “[i]n the event that any claim asserted by Plaintiff is deemed to be governed by the SKG/KLG Joint Venture Agreement or the laws of this State governing joint ventures, then such claim “shall be resolved by mandatory binding arbitration” pursuant to the terms of the November 8, 2005 Joint Venture Agreement.” Scruggs filed a motion to compel arbitration which the court denied. Scruggs appealed, and the Supreme Court held that the arbitration provision in the Katrina JVA was valid and applied to Wyatt under the doctrine of direct-benefit estoppel. A week later, Nutt filed a motion to compel arbitration of Wyatt’s claims. The court held that, based on the Supreme Court’s decision, the arbitration clause of the Katrina JVA applied to Wyatt’s claims against Nutt. However, the court found that Nutt had waived its right to compel arbitration and denied the motion. Nutt appeals. |
| Summary of Opinion Analysis: | Arbitration can be waived where a party’s active participation in the litigation process prejudices the other party or a party’s conduct is inconsistent with the timely enforcement of the arbitration agreement. In Nutt’s responsive pleading, Nutt preserved its right in the alternative to compel arbitration and then timely filed a motion to compel arbitration after the Supreme Court decision. Based on these circumstances, Nutt did not waive its right to enforce the provision. Although Nutt filed an alternative motion to transfer venue, that action did not result in a waiver since that action was entirely consistent with the answer of Nutt. In addition, Nutt was complying with M.R.C.P. 12(b)(3) which requires Motions to Transfer Venue to be served at the time answer is due. |
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