Woodkrest Custom Homes Inc. v. Cooper
108 So. 3d 460
| Miss. Ct. App. | 2013Background
- This is the Cooper plaintiffs' second appellate challenge after a default judgment; the prior award of damages was vacated and remanded for an on-the-record damages hearing.
- On remand, the circuit court awarded $75,977.32 in compensatory damages, $30,000 for emotional-distress/mental-anguish, $100,000 in punitive damages, and $29,798.86 in attorney’s fees; emotional-distress damages were entered after a damages hearing.
- The complaint asserted breach of contract, misrepresentation, conversion, misappropriation, and an accounting; it did not plead a claim for emotional distress.
- The Defendants defaulted; the initial motion for default judgment sought substantial liquidated and unliquidated damages, including punitive damages and fees.
- The Mississippi Supreme Court remanded for an on-the-record damages hearing; findings of fact and conclusions of law were filed January 18, 2011.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mental anguish damages in breach of contract | Coopers allege emotional distress from delay and misrepresentations. | No independent tort was pled; damages not supportable. | Emotional-distress damages improper; reversed and rendered. |
| Punitive damages under the default judgment | Punitive damages are proper given evidence of misconduct. | Record lacks outrages conduct justifying punitive damages. | Punitive damages affirmed. |
| Consideration of net worth in punitive-damages award | Net worth should be considered per statute. | Net worth need not be proven for punitive damages as a prerequisite. | Issue found meritless; net worth not required to award punitive damages. |
| Attorney's fees tied to punitive damages | Fees reasonable and recoverable with punitive damages. | Fees should not be awarded if punitive damages were improper. | Attorney’s fees affirmed as part of the judgment. |
Key Cases Cited
- Williams v. Univ. of S. Miss., 891 So.2d 160 (Miss. 2004) (emotional-distress damages in breach of contract require independent tort and specific harm)
- Warren v. Derivaux, 996 So.2d 729 (Miss. 2008) (punitive-damages review affords deference to trier of fact with limited reversal)
- Hurst v. Sw. Miss. Legal Servs. Corp., 708 So.2d 1347 (Miss. 1998) (malice, gross negligence, or reckless disregard required for punitive damages)
- Capital One Servs. v. Rawls, 904 So.2d 1010 (Miss. 2004) (on-the-record damages; unliquidated damages require hearing)
- Moeller v. Am. Guar. & Liab. Ins. Co., 812 So.2d 953 (Miss. 2002) (definition of liquidated vs unliquidated damages)