Newton County v. State ex rel. Dukes
133 So. 3d 805
| Miss. | 2014Background
- Dukes and Jordan obtained judgments against employers under the Mississippi Workers’ Compensation Act; wives signed supersedeas bonds as sureties.
- Bounds, Newton County Circuit Clerk, approved the bonds without evaluating the Whites’ financial ability to satisfy them.
- The Whites bankruptcy led to Dukes and Jordan’s inability to collect on the supersedeas bonds; they sued Bounds, Newton County, and Union Insurance.
- Union filed a cross-claim against Bounds seeking indemnity under Bounds’s public-official bond indemnity clause, including counsel fees.
- Trial court held Bounds immune to plaintiffs but liable to Union for indemnity; Court of Appeals reversed on indemnity issue.
- This Court granted certiorari to resolve whether Bounds owes indemnity for Union’s attorneys’ fees incurred defending the suits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Indemnity for Union’s attorneys’ fees despite MTCA immunity. | Union argues indemnity covers fees and expenses under the bond. | Bounds contends no indemnity since he has no liability to plaintiffs due to immunity. | Remand to determine reasonableness/necessity of fees; indemnity available for Union's fees. |
Key Cases Cited
- Mohundro v. Alcorn County, 675 So.2d 848 (Miss. 1996) (no liability imputed to surety beyond principal; later limited by other grounds)
- Little v. Miss. Dep’t of Transp., 129 So.3d 132 (Miss. 2013) (overruled Mohundro on grounds related to indemnity and MTCA context)
- In re Estate of Taylor, 609 So.2d 390 (Miss. 1992) (indemnity limited to fees reasonably/necessarily incurred to protect surety’s interests)
- Perkins v. Thompson, 551 So.2d 204 (Miss. 1989) (factors for indemnity: reasonableness, necessity, good faith)
- Jackson v. Hollowell, 685 F.2d 961 (5th Cir. 1982) (public official bonds; Mississippi law applied to indemnity for defense costs)
- National Surety Corp. v. Vandevender, 235 Miss. 277, 108 So.2d 860 (Miss. 1959) (indemnity for attorney fees incurred in defending a bond)
