Eli Investments, LLC v. Silver Slipper Casino Venture, LLC
118 So. 3d 151
| Miss. | 2013Background
- Silver Slipper purchased and moored the President Casino barge at Broadwater Beach Marina in Biloxi; the barge was secured by a six-dolphin mooring system designed to allow tidal rise to 15–20 feet above normal tide levels.
- Mississippi Gaming Commission ordered closure of the casino on August 28, 2005; utilities were disconnected and access ramp raised before Hurricane Katrina struck on August 29, 2005.
- Katrina’s storm surge exceeded 15 feet (reported up to 25 feet in Biloxi); the barge broke free during the surge and allided with Eli Investments’ Biloxi Beachfront Hotel, causing extensive damage.
- Eli sued Silver Slipper (and Broadwater) for negligence and gross negligence, claiming inadequate mooring and failure to account for foreseeable storm surge; Broadwater’s summary-judgment win was not appealed.
- Silver Slipper defended on two main grounds: compliance with Mississippi Gaming Commission mooring regulation (requiring moorings to withstand Category 4 winds and 15-foot surge) and that Katrina was an Act of God beyond reasonable foresight.
- The trial court granted Silver Slipper summary judgment; the Mississippi Supreme Court reversed, finding triable issues of fact on negligence and on applicability of the Act of God defense.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Silver Slipper breached a duty to take reasonable precautions to protect nearby property | Eli: moorings were inadequate; prior storms showed significant surges were foreseeable; expert Perkin says moorings insufficient | Silver Slipper: complied with Gaming Commission regulation; expert Seawell says mooring met regulation and removal was impracticable | Reversed — genuine dispute of material fact exists (battle of experts) requiring jury resolution |
| Whether compliance with Gaming Commission regulations conclusively precludes negligence | Eli: regulatory compliance is not conclusive proof of reasonable care | Silver Slipper: compliance demonstrates it met its duty | Held: Compliance is not dispositive; regulation is licensure condition, not an absolute standard of care |
| Whether Hurricane Katrina is an Act of God that defeats causation | Eli: if Silver Slipper’s negligence was the proximate cause, Act of God does not absolve liability | Silver Slipper: Katrina’s unprecedented fury was unforeseeable and thus an Act of God | Reversed — Act of God defense is inappropriate on summary judgment because causation is disputed; if negligence could have prevented damage, Act of God fails |
Key Cases Cited
- Davis v. Hoss, 869 So.2d 397 (Miss. 2004) (standard of review for summary judgment)
- Rein v. Benchmark Constr. Co., 865 So.2d 1134 (Miss. 2004) (elements of negligence)
- Lyle v. Mladinich, 584 So.2d 397 (Miss. 1991) (breach is question of fact for jury)
- Donald v. Amoco Prod. Co., 735 So.2d 161 (Miss. 1999) (reasonable-person standard of care)
- Millers of Jackson v. Newell, 341 So.2d 101 (Miss. 1976) (foreseeable hazards and duty to protect)
- Hill v. Mills, 26 So.3d 322 (Miss. 2010) (resolving expert conflicts is for the jury)
- Howard v. Estate of Harper, 947 So.2d 854 (Miss. 2006) (administrative compliance does not confer powers or change standards of liability)
- Mantachie Natural Gas Dist. v. Mississippi Valley Gas Co., 594 So.2d 1170 (Miss. 1992) (conflicting sworn accounts create triable issues)
- City of Jackson v. Brummett, 80 So.2d 827 (Miss. 1955) (Act of God defense defined)
- McFarland v. Entergy Mississippi, Inc., 919 So.2d 894 (Miss. 2006) (extraordinary natural events and Act of God analysis)
- City of Hattiesburg v. Hillman, 76 So.2d 368 (Miss. 1954) (injuries preventable by ordinary care are not Acts of God)