Latest 6 Cases: Holland v. Murphy Oil USA, Inc. (Business Law), Anderson v. Wiggins (Civil Procedure), Smith v. Mississippi (Constitutional Law)

The Clients’ Waiver of Their Rights Under Regulation BI of the Securities and Exchange Commission

TAMAR FRANKEL

BU Law emerita professor Tamar Frankel discusses the Securities and Exchange Commission (SEC)’s Regulation Best Interest (BI), which imposes on broker-dealers a commitment to act in the best interests of their clients. Specifically, Frankel addresses the SEC’s treatment of client waivers of the Regulation BI, which goes even further than general fiduciary law to prohibit any waiver of the broker-dealer’s conflicting interests.

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Holland v. Murphy Oil USA, Inc.

Citation: 2018-CA-01491-SCT

Opinion Date: February 20, 2020

Judge: Leslie D. King

Areas of Law: Business Law, Personal Injury, Real Estate & Property Law

In 2016, Mario Holland parked his vehicle at Black’s Food Market and walked to West Lounge. Upon returning to his vehicle after patronizing West Lounge, Holland was shot and robbed in the Black’s Food parking lot. He alleged the assailant came from a vacant lot across the street from Black’s Food. Murphy Oil owned the vacant lot. Holland suffered serious injuries from the assault. The trial court granted summary judgment in favor of defendant Murphy Oil, finding that, as a landowner that owned land near the scene of an assault, it did not owe any legal duty to Holland. Holland appealed, arguing that the Mississippi Supreme Court should adopt Section 54 of the Restatement (Third) of Torts, which provided for instances when landowners might owe a duty to persons or property located off the landowner’s property. The Supreme Court determined it did not need to address the Restatement because it did not apply to the facts of this case. Further, the Court affirmed the trial court’s grant of summary judgment because the landowner did not owe any legal duty to Holland.

Anderson v. Wiggins

Citation: 2017-CT-00607-SCT

Opinion Date: February 20, 2020

Judge: Josiah D. Coleman

Areas of Law: Civil Procedure, Personal Injury

The Chancery Court granted summary judgment in favor of Darnice Wiggins in a conversion case she brought against Chastity Anderson, the fiancée of Wiggins’s deceased son Jhonte Sanders. Sanders and Anderson met each other while serving in the military in 2009. The two lost touch with one another. In 2011, Sanders was diagnosed with leukemia while living in Chicago, Illinois. In May 2013, Sanders reconnected with Anderson online. Sanders then moved to Rankin County, Mississippi and continued his chemotherapy treatment at University of Mississippi Medical Center (UMMC). In 2014, Sanders settled a personal-injury claim and received a monetary settlement in excess of $350,000. Sanders made multiple transfers of those settlement funds to Anderson. Sanders died soon after the transfer of his funds. Following Sanders’s death, the Chancery Court appointed Wiggins administratrix of his estate. Wiggins filed a “Complaint for Conversion” against Anderson, the crux of her complaint revolved around transfers Sanders made after his personal-injury settlement. In support of her conversion claim, Wiggins alleged that Anderson was aware of Sanders’s pending settlement, that Sanders qualified as a vulnerable adult, and that Anderson either unduly influenced him to transfer the funds or utilized her position of trust to take advantage of him while he was a vulnerable adult. During the summary judgment hearing, Wiggins offered multiple exhibits into evidence. Wiggins argued that the court should grant her motion because Anderson’s admissions, the established facts, and a doctor's affidavit proved that no genuine issue of material fact existed. The chancellor agreed and granted summary judgment, reasoning that the pleadings, answers to discovery and requests for admission, together with the affidavit of the doctor showed no genuine issue of material fact. De facto affirming the chancery courts decision by a 5-5 vote, the prevailing opinion wrote that Anderson’s failure to respond to the motion for summary judgment meant she rested upon her allegations, and those were insufficient to show there was a genuine dispute of material fact. The Mississippi Supreme Court determined the Chancery Court erred by granting the motion for summary judgment. Viewing the evidence in the light most favorable to the nonmoving party left genuine issues of material fact unresolved. The matter was remanded for further proceedings.

Smith v. Mississippi

Citation: 2017-CT-01725-SCT

Opinion Date: February 20, 2020

Judge: Josiah D. Coleman

Areas of Law: Constitutional Law, Criminal Law

Carlos Smith appealed the denial of his petition for post-conviction relief which was affirmed by the Court of Appeals. In his petition for post-conviction relief, Smith sought permission to proceed with an out-of-time appeal. The circuit court denied his motion, finding that it had no jurisdiction to allow the out-of-time appeal due to the 180-day time limit imposed by Mississippi Rule of Appellate Procedure 4(h). The filing was well past the 180-day deadline under the Mississippi Rules of Appellate Procedure; however, the petition was still within the three year time limit imposed for filing a petition for post-conviction relief under Mississippi Code Section section 99-39-5(2) (Rev. 2015). The Mississippi Supreme Court concluded the trial court erred by not considering Smith’s post-conviction motion for an out- of-time appeal under Section 99-39-5(2). Accordingly, it reversed and remanded.

Liberty Mutual Fire Insurance Co. v. Fowlkes Plumbing, L.L.C.

Citation: 2019-FC-01285-SCT

Opinion Date: February 20, 2020

Judge: Josiah D. Coleman

Areas of Law: Construction Law, Contracts, Government & Administrative Law, Insurance Law

In May 2015, the Chickasaw County School District entered into a contract with Sullivan Enterprises, Inc., for window restoration work on the Houlka Attendance Center. In July 2015, during construction, a fire began that completely consumed the attendance center. Liberty Mutual, the school district’s insurer, paid the school district $4.3 million for the damage to the building. Liberty Mutual then filed a subrogation suit against Sullivan Enterprises, Fowlkes Plumbing, LLC, and Quality Heat & Air, Inc. The United States District Court for the Northern District of Mississippi found that the waiver of subrogation did not apply to damages to the “non-Work” property, thus Liberty Mutual could proceed in litigation as to “non-Work” property damages. The United States Court of Appeals for the Fifth Circuit allowed an interlocutory appeal and certified a question to the Mississippi Supreme Court regarding whether the subrogation waiver applied to “non-Work” property. The Supreme Court determined that based on the plain meaning of the contract language, the waiver of subrogation applied to both work and non-work property.

Mississippi Department of Public Safety v. Herrington

Citation: 2019-CA-00145-SCT

Opinion Date: February 20, 2020

Judge: Leslie D. King

Areas of Law: Criminal Law, Government & Administrative Law, Labor & Employment Law

Justin Herrington, a law-enforcement officer with the Columbia Police Department, was convicted of violating Mississippi Code Section 97-3-104, which prohibited sexual activity between a law-enforcement employee and an offender on correctional supervision. The trial court ordered Herrington to register as a sex offender under Mississippi Code Sections 45-33-21 through 45-33-51. The trial court then amended its order and removed Herrington’s registration requirement. The Mississippi Department of Public Safety (MDPS) appealed and argued that the trial court erred by removing Herrington’s requirement to register as a sex offender. After review, the Mississippi Supreme Court agreed and reversed the trial court’s order dispensing with Herrington’s registration requirement.

In the Matter of the Estate of Julisa Matute

Citation: 2018-CA-01772-SCT

Opinion Date: February 20, 2020

Judge: Griffis

Areas of Law: Health Law, Personal Injury, Trusts & Estates

Sixteen-year old Julisa Matute, along with her sister and father, were involved in a motor-vehicle accident in Harrison County, Mississippi. Julisa was transported to Mobile, Alabama, and was admitted to University of South Alabama Medical Center, a hospital operated by University of South Alabama (USA). Julisa died there intestate. Julisa’s mother and sister executed an authorization for the donation of Julisa’s organs with the Alabama Organ Center (AOC). An estate was opened; Julisa’s mother was appointed administratrix of the Estate. Shortly thereafter notice was served to creditors, USA probated a claim against the Estate for medical expenses. The Estate filed a “complaint to contest illegal probated claim and compulsory counterclaim,” alleging that before Julisa’s death, USA representatives approached Julisa’s family and asked that they donate her organs and, in turn, Julisa’s hospital bill incurred at USA would be “totally wiped out and not be collected.” As a result of this alleged agreement, the Estate contested USA’s probated claim and asserted that the “probated claim [wa]s null and void and uncollectable.” In a counterclaim, the Estate alleged emotional distress, fraud, and punitive damages because, according to the Estate, “[t]he hospital told [Julisa’s family] that the bill would be wiped clean for allowing them to have [Julisa’s] organs . . . .” A wrongful-death lawsuit related to the motor-vehicle accident was filed then by the Estate. A settlement was reached among the parties in September 2018. Months later, a hearing was held on USA’s contested probated claim. The chancellor entered a judgment approving the Estate’s Petition to Receive First and Final Accounting, Discharge Administratrix and Close Estate. USA filed a motion to alter or amend the order granting the Estate’s Petition to Approve Settlement of Claims of Wrongful Death Beneficiaries of Julisa, and asserted that the chancellor’s reference to a “hospital lien claim” was erroneous. The chancellor denied the motion. USA timely appealed. The Mississippi Supreme Court determined that while the chancellor properly denied USA's probated claim as uncollectable, the chancellor erred in finding the probated claim was invalid and erroneously ruled on USA's hospital-lien claim. As a result, the chancery court's judgment was affirmed in part, reversed in part, and remanded for further proceedings.