Sanderson Farms, Inc. v. Austin, et al.


<- Return to Search Results


Docket Number: 2003-IA-02490-SCT

Supreme Court: Opinion Link
Opinion Date: 10-06-2005
Opinion Author: Easley, J.
Holding: Reversed and Rendered

Additional Case Information: Topic: Fraudulent concealment - Statute of limitations - Section 15-1-49 - Fraudulent inducement - Section 15-1-67
Judge(s) Concurring: Smith, C.J., Waller and Cobb, P.JJ., Carlson, Dickinson and Randolph, JJ.
Non Participating Judge(s): Diaz and Graves, JJ.
Procedural History: Bench Trial
Nature of the Case: CIVIL - OTHER

Trial Court: Date of Trial Judgment: 06-17-2004
Appealed from: Jefferson Davis County Chancery Court
Judge: J. Larry Buffington
Disposition: The trial court denied all of SF’s affirmative defenses, including, arbitration, subject matter jurisdiction, venue, and statute of limitations. SF filed its petition for permission to appeal from interlocutory order and emergency motion to stay. The trial court denied the petition for certification and stay.
Case Number: 02-0225
  Consolidated: Consolidated with 2002-IA-01938-SCT Sanderson Farms Inc. (Production Division) v. Tanya Ballard, Rann McGraw and Willie McIntosh; Lawrence Chancery Court; LC Case #: 2000-0246; Ruling Date: 11/22/2002; Ruling Judge: J. Buffington

Note: Motion to take Judicial Notice filed by counsel for Sanderson Farms, Inc., is dismissed as moot. Motion to take Judicial Notice filed by counsel for Kenny Austin, Charlett N. Hathorn, Leroy Spring, Tanya Ballard, Rann McGraw and Willie McIntosh is dismissed as moot.

  Party Name: Attorney Name:  
Appellant: Sanderson Farms, Inc.




JAMES LAWTON ROBERTSON, HENRY E. CHATHAM, JR., ROBERT M. FREY, W. SCOTT WELCH, III, JOE DALE WALKER



 

Appellee: Kenny Austin, Charlett Hathorn and Leroy Spring JOHN DUDLEY BUTLER  

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.

Topic: Fraudulent concealment - Statute of limitations - Section 15-1-49 - Fraudulent inducement - Section 15-1-67

Summary of the Facts: Tanya Ballard, Willie McIntosh, and Rann McGraw, individually and as class representatives, independent contractor broiler growers, filed suit against Sanderson Farms, Inc. in the Lawrence County Chancery Court. In a separate action, Kenny Austin, Charolett Hathorn, and Leroy Spring, individually and as class representatives, independent contractor hatching egg growers, filed suit against Sanderson Farms, Inc. in the Jefferson Davis County Chancery Court. In the Ballard action, Sanderson Farms removed the case to federal court and answered the first amended complaint. The case was remanded to the chancery court. Ballard received leave of court to file a second amended complaint. Sanderson Farms raised the following defenses: that the parties had agreed to arbitrate; that the circuit court, not the chancery court, had jurisdiction; and that venue was improper. Sanderson Farms also raised the defense that Ballard’s claims were barred by statute of limitations, the plaintiffs were misjoined, and the plaintiffs could not represent a class. The trial court denied all of the affirmative defenses. The Supreme Court granted Sanderson Farms’ petition for interlocutory appeal. In the Austin action, Sanderson Farms filed a motion to dismiss and/or to transfer jurisdiction and/or to compel arbitration and/or for change of venue. The trial court overruled Sanderson Farm’s motion to dismiss, transfer, compel arbitration and for change of venue. The Supreme Court accepted Sanderson Farm’s notice of appeal and consolidated the two appeals.

Summary of Opinion Analysis: The plaintiffs argue that Sanderson Farms fraudulently or negligently induced them into housing and tending to flocks and gathering and/or storing hatch eggs by knowingly making false representations about their future income, costs, expenses, equipment requirements, company policies, and working relationships. Sanderson Farms argues that the plaintiffs’ allegations of fraudulent inducement and misrepresentation to enter into the contracts are barred by the statute of limitations. In Mississippi a claim of fraud has a three-year statute of limitations in accordance with section 15-1-49 concerning actions without a prescribed period of limitation. A fraud claim accrues upon the completion of the sale induced by such false representation, or upon the consummation of the fraud. Based on the record, it is clear that the plaintiffs were aware of the matters that were allegedly misrepresented to them by Sanderson Farms well in excess of three years before the suits were filed. Therefore, we section 15-1-49 operates to bar the plaintiffs’ claims. As such, there are no disputes to remand to the trial court to compel arbitration. In response to Sanderson Farm’s assertion that the fraudulent inducement claims are barred by statute of limitations, the plaintiffs intertwine fraudulent concealment into their contentions that they were fraudulently induced by Sanderson Farms into the contracts containing the arbitration provision. However, the plaintiffs make no assertions as to any affirmative act by Sanderson Farms to conceal anything. Therefore, the plaintiffs fail to meet the elements required to establish fraudulent concealment in order to toll the statute of limitations. Pursuant to section 15-1-67, the cause of action for fraudulent concealment accrues when the person, with reasonable diligence, first knew or first should have known of the fraud. The plaintiffs do not provide any details of how Sanderson Farms concealed its alleged fraudulent actions. Merely alleging that the other side has complete control of the data simply will not suffice. The second prong to establish fraudulent concealment requires the exercise of due diligence to obtain the information. Here, the plaintiffs do not demonstrate any action by them to obtain any of the allegedly concealed information.


Home | Terms of Use | About the JDP | Feedback | Using JDP | MC Law Library | Mississippi Supreme Court