Gulf City Seafoods, Inc. v. Oriental Foods, Inc.
| Docket Number: | 2006-CA-00987-COA Linked Case(s): 2006-CA-00987-COA ; 2006-CT-00987-SCT ; 2006-ct-00987-sct |
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| Court of Appeals: |
Opinion Link Opinion Date: 11-20-2007 Opinion Author: KING, C.J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Contract - Attorney’s fees - Section 11-53-81 - Prejudgment interest - M.R.C.P. 8 Judge(s) Concurring: LEE AND MYERS, P.JJ., IRVING, CHANDLER, GRIFFIS, BARNES, ROBERTS AND CARLTON, JJ. Non Participating Judge(s): ISHEE, J., Procedural History: Jury Trial Nature of the Case: CIVIL - CONTRACT |
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| Trial Court: |
Date of Trial Judgment: 01-23-2006 Appealed from: Jackson County Circuit Court Judge: Kathy King Jackson Disposition: JUDGMENT FOR ORIENTAL FOODS, INC. IN THE AMOUNT OF $102,385, INCLUDING PREJUDGMENT INTEREST AND ATTORNEY’S FEES. Case Number: CI-2004-00,276(2) |
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| Party Name: | Attorney Name: | |||
| Appellant: | GULF CITY SEAFOODS, INC. |
JOHN G. CLARK |
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| Appellee: | ORIENTAL FOODS, INC. | J. PAUL CLINTON |
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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 - Attorney’s fees - Section 11-53-81 - Prejudgment interest - M.R.C.P. 8 |
| Summary of the Facts: | Oriental Foods, Inc. filed a complaint against Gulf City Seafoods, Inc., alleging Gulf City owed $71,043.40, in principal, on an open account. Oriental filed a motion for summary judgment. While Oriental alleges that Gulf City Seafood owed $71,043.35 in principal, Gulf Seafood argued that the amount should have been $71,008.05 – a difference of $35.40. The trial court denied the motion for summary judgment based on the parties’ competing affidavits regarding the balanced owed. Oriental filed an amended motion for summary judgment, adopting Gulf Seafoods’ affidavit of the balance owed, giving Gulf Seafoods a credit of $35.40. The court granted the amended motion for summary judgment and awarded Oriental Foods a judgment of $102,385.20. This figure included $71,008.05 (principal), $7,731.47 (prejudgment interest calculated according to the actuarial method), and $23,645.68 (attorney’s fees of one-third of the judgment). Gulf City appeals. |
| Summary of Opinion Analysis: | Issue 1: Attorney’s fees Parties prevailing in a suit on an open account are entitled to attorney’s fees pursuant to section 11-53-81. Gulf City argues that the trial court erred in awarding attorney’s fees to Oriental Foods because Oriental failed to strictly comply with the statute’s requirements, i.e., Oriental’s demand letter did not correctly state the amount Gulf City owed on the open account. The open accounts statute does not require that the demand letter and the complaint list the same amount – just a correct amount. The trial court found that the evidence clearly showed that an open account existed, the required demand letter and supporting documentation were sent and Gulf City failed to pay the account. Thus, there is no error in the trial court’s decision. The trial court awarded $23,645.68 in attorney’s fees, which was one-third of the judgment amount. Gulf City argues that the award of attorney’s fees is excessive and unreasonable because the award should reflect the actual amount of time the attorney spent on the case and Oriental failed to present such evidence. The court reviewed the attorney’s affidavit for attorney’s fees and considered the reasonableness of these fees. The court also viewed, in open court, the attorney’s fee agreement with Oriental. Thus, the record contains substantial evidence which supports the award of attorney’s fees in the amount of $23,645.68. Issue 2: Pre-judgment interest Gulf City argues that Oriental was not entitled to pre-judgment interest because the amount of the debt was disputed. Pre-judgment interest may be allowed in cases where the denial of the claim is frivolous or in bad faith, but no award is allowed where the principal amount has not been fixed before the judgment. After Oriental adopted Gulf City’s affidavit in the amended motion for summary judgment, both parties agreed that $71,008.05 reflected the amount owed. The trial court had the discretion to award pre-judgment interest in this case. Gulf City also argues that Oriental was not entitled to pre-judgment interest because Oriental failed to make a specific request for the interest in its pleadings. The law requires the claimant to make a specific request for pre-judgment interest in the pleadings, and a general request for relief will not suffice. While Oriental did not use the key words “prejudgment interest,” its request for $5,680.20 in interest met the substance of a pre-judgment interest request. Oriental’s specific request of $5,680.20 was sufficient to place Gulf City on notice under M.R.C.P. 8 that pre-judgment interest was requested. |
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