Creek Scott v. Magnolia Lady, Inc.


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Docket Number: 2002-CA-00428-COA

Court of Appeals: Opinion Link
Opinion Date: 04-15-2003
Opinion Author: King, P.J.
Holding: Affirmed

Additional Case Information: Topic: Breach of contract - Established course of dealings
Judge(s) Concurring: McMillin, C.J., Southwick, P.J., Bridges, Thomas, Lee, Irving, Myers, Chandler and Griffis, JJ.
Procedural History: Summary Judgment
Nature of the Case: CIVIL - CONTRACT

Trial Court: Date of Trial Judgment: 02-19-2002
Appealed from: Coahoma County Circuit Court
Judge: Al Smith
Disposition: SUMMARY JUDGMENT FOR DEFENDANT
Case Number: 14-C1-98-0019

  Party Name: Attorney Name:  
Appellant: Creek Scott d/b/a Classic Coach




CHARLES M. MERKEL JACK R. DODSON



 

Appellee: Magnolia Lady, Inc., d/b/a Lady Luck Rhythm & Blues Casino-Hotel CHARLES E. WEBSTER H. HUNTER TWIFORD  

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Topic: Breach of contract - Established course of dealings

Summary of the Facts: Creek Scott, d/b/a Classic Coach, entered into a series of agreements with Lady Luck Rhythm and Blues Casino-Hotel, under which Scott would provide tour bus service to individuals who wished to gamble or secure hotel rooms at Lady Luck. When Lady Luck became dissatisfied with Scott's unilateral cancellations of bus tours and modifications of the number of rooms reserved, Lady Luck withdrew approximately sixty contract offers. Scott initiated a breach of contract action. The court granted Lady Luck's motion for summary judgment. Scott appeals.

Summary of Opinion Analysis: Scott argues that the court erred in finding that no contract existed between Scott and Lady Luck. The formation of a contract, either oral or written, requires an offer, acceptance of the offer, and consideration. Lady Luck extended an offer to contract by submitting to Scott for approval and signature approximately sixty separate written documents. Scott failed to execute any of the documents. Scott argues that the parties were obligated to continue the past course of conduct, under which Scott never signed any written contracts and never paid any room deposits. While a valid contract may exist where one party, to his detriment, relied on an established course of business dealings, the party seeking to alter the established course of dealings can avoid such a claim by clearly and timely indicating the intent to alter the established pattern of conduct. Lady Luck avoided such a claim when it wrote to Scott and informed him of its "bus program" which required that he execute written contracts and pay room deposits. This was sufficient to put Scott on notice that Lady Luck declined to do business under the old practices. Scott could accept or reject the offer, and there is no evidence of any such acceptance in the record.


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