Cmty. Bank of Miss. v. Stuckey
| Docket Number: | 2008-CA-01521-COA Linked Case(s): 2008-CA-01521-COA ; 2008-CT-01521-SCT ; 2008-CT-01521-SCT ; 2008-CT-01521-SCT |
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| Court of Appeals: |
Opinion Link Opinion Date: 12-01-2009 Opinion Author: LEE, P.J. Holding: REVERSED AND REMANDED |
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| Additional Case Information: |
Topic: Contract - Arbitration - Third-party beneficiary - Equitable estoppel Judge(s) Concurring: MYERS, P.J., GRIFFIS, ISHEE, ROBERTS, CARLTON AND MAXWELL, JJ. Dissenting Author : KING, C.J., with separate written opinion. Dissent Joined By : BARNES, J. Concurs in Result Only: IRVING, J. Procedural History: Motion to Compel Arbitration Nature of the Case: CIVIL - CONTRACT |
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| Trial Court: |
Date of Trial Judgment: 08-06-2008 Appealed from: Covington County Circuit Court Judge: Robert G. Evans Disposition: MOTION TO COMPEL ARBITRATION DENIED Case Number: 2006-115C |
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| Note: | This judgment was later reversed and the circuit court's judgment reinstated and affirmed. See the SCT opinion at: http://www.mssc.state.ms.us/Images/Opinions/CO65447.pdf | |
| Party Name: | Attorney Name: | Brief(s) Available: | ||
| Appellant: | COMMUNITY BANK OF MISSISSIPPI AND
RAYMON MCALPIN A/K/A RAYMOND
MCALPIN |
ALAN W. PERRY,
J. CHASE BRYAN,
AMANDA BARDIN ROBINSON,
CLAY L. SLAY |
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| Appellee: | DONNA STUCKEY | DAVID SHOEMAKE | ||
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 - Third-party beneficiary - Equitable estoppel |
| Summary of the Facts: | Mike and Donna Stuckey offered certain personal property to Community Bank of Mississippi as collateral for loans made in connection with their cattle business. After the Stuckeys defaulted on the loans, Community Bank filed a replevin action against the Stuckeys to obtain the property. Donna filed a separate answer and counter-complaint, alleging the following claims against Community Bank and Raymond McAlpin, one of its employees: forgery; conversion; misrepresentation; breach of fiduciary duties; tortious breach of good faith and fair dealing; tortious breach of warranty; intentional/negligent infliction of emotional distress; damage to credit reputation; and grossly negligent and/or intentional conduct. Community Bank answered Donna’s counter-complaint and requested that the trial court compel arbitration against Donna. Community Bank also filed a motion to compel arbitration and to stay the proceedings. Donna responded that she was not subject to arbitration because she did not sign an arbitration agreement. The trial court agreed with Donna and found that Donna was not a third-party beneficiary to the agreement. Community Bank appeals. |
| Summary of Opinion Analysis: | Conflicting testimony was presented regarding who had signed the arbitration agreements. Community Bank argues that the testimony showed that Donna had signed at least one arbitration agreement, which was sufficient to make the arbitration agreement enforceable. However, for purposes relating to the enforcement of arbitration, it is unnecessary to determine which documents Donna did or did not sign. Community Bank argues that regardless of whether Donna signed any of the arbitration agreements, she is still bound to arbitrate as a third-party beneficiary. Arbitration agreements can be enforced against non-signatories if such non-signatory is a third-party beneficiary. In support of its argument that Donna is a third-party beneficiary to the cattle loans, Community Bank cites to Donna’s answer and counterclaim, in which Donna states that she was an owner of an interest in Stuckey Farms, and that she suffered personal detriment and damage when McAlpin took profits from the sale of cattle without her knowledge or permission. Donna repeatedly states throughout the pleadings that she is a co-owner of and interest holder in Stuckey Farms. In her deposition she states that her name is on the business checking account, and she writes payroll checks. Since Donna was a co-owner in the cattle operation and claims that she suffered because of the relationship with McAlpin, she is a third-party beneficiary to the loan agreements. Donna is also a third-party beneficiary to the deed of trust. Donna was a co-owner of the eleven-acre parcel purchased through the deed of trust and now claims detriment because of misrepresentations made by McAlpin in association with the development of the land. Also, Donna is equitably estopped from bringing an action based on the loan documents. She is estopped from filing suit based on breaches of duties associated with the loan documents and at the same time claiming that she is not bound by the provisions in the documents. Thus, the trial court erred in denying Community Bank’s motion to compel arbitration. |
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