Business Communications, Inc. v. Banks
90 So. 3d 1221
| Miss. | 2012Background
- BCI sued Banks for breach of the BPA and RCA; breach of BPA concerned noncompetition and related covenants.
- Trial awarded BCI $1,000 for BPA breach and $9,000 for RCA breach; JNOV later granted in Banks’ favor.
- Court of Appeals reinstated the BPA verdict ($1,000) but reversed on RCA and remanded for attorney’s fees.
- Mississippi Supreme Court granted certiorari to address elements and damages for BPA breach involving noncompetes.
- Court held monetary damages are a remedy, not an element, and that BCI failed to prove compensatory damages for BPA breach.
- Because damages were not proven, the BPA verdict may be treated as nominal damages; remand ordered for attorney’s fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages element vs. remedy in breach of contract | BCI contends monetary damages are recoverable as element. | Banks argues damages are simply a remedy, not an element. | Damages are a remedy, not an element. |
| Propriety of compensatory damages for BPA breach where no actual damages shown | BCI seeks compensatory damages for breach. | Banks asserts no actual monetary damage occurred. | Compensatory damages not proven; nominal damages appropriate. |
| Whether nominal damages were correctly available and limited | Nominal damages should be available if contract breached without provable actual damages. | Nominal damages should be limited and not exceed minimal amount. | $1,000 nominal damage award affirmed as within nominal range; remand for attorney’s fees. |
| Remand for attorney’s fees | BCI seeks statutory attorney’s fees as prevailing party. | No dispute on fees should proceed only after damages ruling. | Remanded to circuit court to consider attorney’s fees. |
Key Cases Cited
- Warwick v. Matheney, 603 So.2d 330 (Miss. 1992) (monetary damages are not an element of breach; remedy rule)
- Callicott v. Gresham, 161 So.2d 183 (Miss. 1964) (nominal damages when no actual injury)
- Thomas v. Global Boat Builders & Repairmen Inc., 482 So.2d 1112 (Miss. 1986) (proof of damages required for monetary relief)
- Ivison v. Ivison, 762 So.2d 329 (Miss. 2000) (equitable remedies do not speak in terms of monetary damage)
- Franklin Corp. v. Tedford, 18 So.3d 215 (Miss. 2009) (harmless error where evidence supports punting on compensatory damages)