Hamilton v. Hopkins
| Citation | 834 So.2d 695 |
| Decision Date | 09 January 2003 |
| Docket Number | No. 2001-CA-01607-SCT.,2001-CA-01607-SCT. |
| Parties | Billy M. HAMILTON v. Gerald J. HOPKINS, Gay T. Hopkins and Buyer's Agent of the Mississippi Gulf Coast, Inc. |
| Court | United States State Supreme Court of Mississippi |
Felicia Dunn Burkes, New Orleans, LA, for appellant.
Wayne L. Hengen, Biloxi, Woodrow W. Pringle, III, Gulfport, for appellees.
Before PITTMAN, C.J., WALLER and GRAVES, JJ.
WALLER, Justice, for the Court.
¶ 1. Gerald J. and Gay T. Hopkins, as sellers, sued Billy M. Hamilton, as buyer, for breach of a real estate sales contract. Hamilton's broker, The Buyer's Agent of the Mississippi Gulf Coast, Inc., intervened, seeking a 3% commission. Hamilton counterclaimed for refund of the earnest money deposit and payment of attorney's fees. The Chancery Court of the Second Judicial District of Harrison County held that the Hopkinses could not recover punitive damages, the Hopkinses could recover their attorney's fees in prosecuting this action, The Buyer's Agent could recover its commission of $3,750, and Hamilton could not recover his earnest money deposit. We affirm the chancellor on all points except for the award of attorney's fees and commission, which we are compelled to reverse and render for lack of a legal or contractual basis for such awards.
FACTS AND PROCEDURAL HISTORY
¶ 2. On January 21, 1998, Billy M. Hamilton entered into an agency agreement with The Buyer's Agent of the Mississippi Gulf Coast, Inc., and agent Cynthia Pringle to assist him in purchasing a home. The Hopkinses listed their home in Biloxi, Mississippi, with Carolyn Catchot of Century 21 Bay South Realty, Inc. in July of 1998. On July 15, 1998, The Buyer's Agent submitted an offer on behalf of Hamilton to the Hopkinses to purchase their home. The Hopkinses accepted the offer and signed the contract on July 16, 1998. The contract, which was prepared by The Buyer's Agent, provided for, inter alia, a purchase price of $125,000, an earnest money deposit of $1,000, and a closing date of August 31,1998.
¶ 3. A home inspection conducted pursuant to the contract revealed problems with the heating, venting, and air conditioning (HVAC) systems. In response, the Hopkinses hired Charles Williams, a licensed heating and cooling contractor, to service the HVAC units. Williams performed the routine maintenance, cleaned off the normal accumulation of rust, and replaced one thermostat. After the servicing, Williams found that the units operated normally.
¶ 4. Beth Harriel, a broker for The Buyer's Agent, received Williams's report from Catchot and notified Hamilton. She noted that the results of the evaluation were satisfactory to Hamilton and that he wanted to move into the house by July 24 if possible. However, Hamilton contends that he told Harriel that he wanted the Hopkinses to replace the HVAC units or lower the price in an amount to cover their replacement.
¶ 5. On August 24, one week before the scheduled closing, Hamilton contacted Harriel and told her that he would not be needing the house because he had a job requiring him to travel. No mention was made of the HVAC units. At trial, Hamilton testified that he inquired of Harriel about lowering the price; however, Harriel denied having any knowledge of this. Hamilton further testified that he previously made these very same inquiries of Cynthia Pringle but was unable to contact either Pringle or Harriel during the preceding month. Harriel told Hamilton he should have contacted her earlier if he wanted to back out, but Hamilton asserts that he made it clear to Pringle that he would purchase the house if the price was lowered.
¶ 6. Hamilton contacted Catchot, informing her of his decision not to purchase the house. According to Catchot, Hamilton made no mention of the HVAC units. He likewise faxed The Buyer's Agent on August 28 in confirmation of his August 24 conversation with Harriel that he would not be purchasing the house. Hamilton again made no mention of the HVAC units.
¶ 7. Hamilton did not appear at the August 31 closing. During the days preceding the closing, Hamilton was looking for another house and subsequently found one on August 27. He signed a contract for that new house on September 1, 1998, and closed within the next two months.
¶ 8. The Hopkinses sued Hamilton on November 5, 1998, alleging breach of the July 16, 1998, contract and seeking specific performance or damages1 and attorney's fees. The Buyer's Agent intervened in the action, seeking the 3% commission allegedly due under its contract with Hamilton. Hamilton answered and filed a counterclaim seeking a return of the earnest money deposit and payment of attorney's fees. The parties stipulated to a partial dismissal of the claim for specific performance since the Hopkinses had sold the house to another buyer.
¶ 9. The chancery court entered summary judgment on the claim for breach of contract based on the liquidated damages provision.2 The chancery court also allowed the Hopkinses to amend their pleadings to allege tortious breach of contract, proof of which could entitle the Hopkinses to punitive damages and attorney's fees.
¶ 10. Following a trial, the Hopkinses were awarded $7,625 plus interest in attorney's fees. The Buyer's Agent was awarded its broker's fee of $3,750 plus interest. All other relief, most notably punitive damages, was denied.
¶ 11. Hamilton appeals and asserts the following issues:
I. WHETHER THE CHANCELLOR ERRED IN AWARDING ATTORNEY'S FEES TO THE HOPKINSES.
II. WHETHER THE CHANCELLOR ERRED IN ENTERING JUDGMENT FOR COMMISSION IN FAVOR OF THE BUYER'S AGENT.
III. WHETHER THE CHANCELLOR ERRED IN DENYING HAMILTON'S COUNTERCLAIM FOR REFUND OF EARNEST MONEY AND ATTORNEY'S FEES.
The Hopkinses, as cross-appellants, assert the following issue:
IV. WHETHER THE CHANCELLOR ERRED IN DENYING THE HOPKINSES' DEMAND FOR PUNITIVE DAMAGES.
STANDARD OF REVIEW
¶ 12. We will not disturb the findings of a chancellor when supported by substantial evidence unless the chancellor abused his discretion, applied an erroneous legal standard, was manifestly wrong, or was clearly erroneous. Cox v. F-S Prestress, Inc., 797 So.2d 839, 843 (Miss.2001); Holloman v. Holloman, 691 So.2d 897, 898 (Miss.1996).
DISCUSSION
¶ 13. Hamilton asserts that the chancellor erred in awarding attorney's fees to the Hopkinses. Paragraph 12 states that, with regard to attorney's fees, "If it becomes necessary to insure the performance of the conditions of this contract for purchaser to initiate litigation, then the losing party agrees to pay reasonable attorney's fees and court costs in connection therewith."3 Contrary to the chancellor's holding, we conclude that it was error to award attorney's fees to the Hopkinses.
¶ 14. Both parties go to great lengths in their briefs to illustrate that they "won" and are therefore entitled to payment of attorney's fees under the contract. The Hopkinses contend that, although they did not prevail on every issue, they did succeed in getting the earnest money as liquidated damages. On the other hand, Hamilton contends that he won since the claim for specific performance was dismissed and the Hopkinses lost on their claim for damages for an intentional tort of breach of contract.
¶ 15. A close reading of the pertinent contract terms does not require a determination of which party prevailed. The contract provided, "If it becomes necessary to insure the performance of the conditions of this contract for purchaser to initiate litigation, then the losing party agrees to pay reasonable attorney's fees and court costs in connection therewith." (emphasis added). Both the chancellor in his opinion and Hamilton in his brief quote the clause as "necessary to insure the performance of the conditions of the contract for purchase to initiate litigation ...." (emphasis added). Reading the contract as the chancellor did would naturally entail a determination of which party prevailed, since it assumes that either party could initiate litigation and be entitled to attorney's fees and costs. Under such an interpretation, whichever party in this "contract for purchase" was the "losing party" would be required to pay attorney's fees and costs.
¶ 16. We have held that parties may contractually provide that in the event of a dispute, the losing party will be charged with paying attorney's fees. Theobald v. Nosser, 752 So.2d 1036, 1042 (Miss.1999) (citing Grisham v. Hinton, 490 So.2d 1201, 1206 (Miss.1986)). However, a fair reading of this clause reveals that the right to payment of attorney's fees was contingent on the purchaser, i.e., Hamilton, initiating litigation. This contract, prepared by The Buyer's Agent, contemplated in Paragraph 12 that the seller was to accept the earnest money deposit as liquidated damages. We are, after all, obligated to enforce a contract when its terms are clear and unambiguous. Ivison v. Ivison, 762 So.2d 329, 334 (Miss.2000); Gulfside Casino P'ship v. Miss. State Port Auth. at Gulfport, 757 So.2d 250, 256 (Miss.2000); Delta Pride Catfish, Inc. v. Home Ins. Co., 697 So.2d 400, 403 (Miss. 1997); Century 21 Deep S. Props., Ltd. v. Keys, 652 So.2d 707, 717 (Miss.1995). Also, if attorney's fees are not authorized by the contract or by statute, they are not to be awarded when an award of punitive damages is not proper. Sentinel Indus. Contracting Corp. v. Kimmins Indus. Serv. Corp., 743 So.2d 954, 971 (Miss.1999); Miss. Dep't of Wildlife, Fisheries & Parks v. Miss. Wildlife Enforcement Officers' Ass'n, 740 So.2d 925, 937 (Miss.1999); Century 21 Deep S. Props., Ltd. v. Corson, 612 So.2d 359, 375 (Miss.1992); Smith v. Dorsey, 599 So.2d 529, 550 (Miss.1992); Grisham v. Hinton, 490 So.2d 1201, 1205 (Miss.1986); Stanton & Assocs., Inc. v. Bryant Constr. Co., 464 So.2d 499, 502 (Miss.1985); Bellefonte Ins. Co. v. Griffin, 358 So.2d 387, 391 (Miss.1978).
¶ 17. Here, an award of attorney's fees to the sellers was not...
To continue reading
Request your trial
-
In re Mclemore
...award of punitive damages is not proper.’ ” In re Guardianship of Duckett, 991 So.2d 1165, 1179 (Miss.2008) (quoting Hamilton v. Hopkins, 834 So.2d 695, 700 (Miss.2003)). ¶ 53. This Court has not addressed the precise question before us, although our Court of Appeals recently awarded fees t......
-
American National Property and Casualty Company v. Estate of Farese
...that any of the actions was done intentionally or maliciously, as required to support a cause of action for bad faith. See Hamilton v. Hopkins, 834 So. 2d 695, 703 (¶26) (Miss. 2003) ("To qualify for punitive damages in a breach of contract case, a plaintiff must prove by a preponderance th......
-
Reffalt v. Reffalt
...... unless the chancellor abused his discretion, applied an erroneous legal standard, was manifestly wrong, or was clearly erroneous.” Hamilton v. Hopkins, 834 So.2d 695, 699 (¶ 12) (Miss.2003). A chancellor's interpretation and application of the law, however, is reviewed de novo. Bond v. ......
-
In re Guardianship of Duckett
...authorized by the contract or by statute, they are not to be awarded when an award of punitive damages is not proper." Hamilton v. Hopkins, 834 So.2d 695, 700 (Miss. 2003) (collecting authorities). There is no contract between BancorpSouth and the plaintiffs which provides for the recovery ......