61 So. 3d 964
Miss. Ct. App.2011Background
- Meridian Southern owns and operates a short-line railroad with spurs along its line; spurs are owned by Meridian or other entities.
- Meridian stores railcars on the spurs, using some at Meridian facilities and others on spurs.
- In March 2000, Meridian began using a spur on Clarke County land, initially under an oral license from Griffco Plastics; Griffco later abandoned the property and Meridian continued using it.
- Clarke County never objected to Meridian’s continued use; no owner notified Meridian of any change before 2006.
- Clarke County sold the land to Rega on December 28, 2006; Meridian received no notice of the sale and continued using the spur for about 20 months.
- In September 2008, Rega installed and locked a derail device on the lead railcar, trapping six Meridian railcars; Meridian attempted removal, replaced the lock, and departed after Reeves objected.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the spur constitutes convertibile property | Rega asserts Meridian converted Rega’s property by continued storage. | Meridian contends the spur is a fixture of realty, not movable property, so no conversion. | No conversion; spur is fixture of realty. |
| Whether Meridian was unjustly enriched at Rega’s expense | Rega contends Meridian benefited from storing railcars on Rega’s spur without compensation. | Meridian argues laches bars equity and that enrichment is not unjust given lack of timely objection. | Laudable defense of laches; summary judgment on unjust enrichment affirmed. |
| Whether Meridian trespassed by placing railcars on the spur without permission | Rega asserts Meridian trespassed by occupying land without license after the license from Griffco terminated. | Meridian claims an oral license existed and that no termination notice was provided. | Trespass occurred; Restatement-based license termination applies; nominal damages awarded; Court reverses and renders $10.00 in favor of Rega and Reeves. |
Key Cases Cited
- Community Bank, Ellisville, Miss. v. Courtney, 884 So.2d 767 (Miss. 2004) (definition of conversion as intentional dominion inconsistent with owner's rights)
- First Investors Corp. v. Rayner, 738 So.2d 228 (Miss. 1999) (standard for conversion and dominion over property)
- Whitten v. Cox, 799 So.2d 1 (Miss. 2000) (nominal damages available for trespass when no actual damages shown)
- Estate of Davis v. Stennis, 510 So.2d 798 (Miss. 1987) (equitable defenses, including laches, apply to unjust enrichment)