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Newton County v. State ex rel. Dukes
133 So. 3d 805
| Miss. | 2014
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Background

  • 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)
Read the full case

Case Details

Case Name: Newton County v. State ex rel. Dukes
Court Name: Mississippi Supreme Court
Date Published: Mar 6, 2014
Citation: 133 So. 3d 805
Docket Number: Nos. 2011-CT-01500-SCT, 2011-CT-01501-SCT
Court Abbreviation: Miss.