MAXWELL, J., for the Court:
¶ 1. The motion for rehearing is denied. The court's original opinion is withdrawn, and this opinion is substituted in lieu thereof.
¶ 2. T.C.B. Construction Company, Inc. (TCB) sued W.C. Fore Trucking, Inc. (Fore) for breach of contract. The suit was based on Fore's non-payment for work TCB performed removing debris south of Highway 53 in Harrison County, Mississippi, after Hurricane Katrina. Fore disagreed that the subcontract between the two companies was modified to include this area. Although the jury found Fore had modified the subcontract, it awarded TCB only $3,577,583.34 in damages, which in effect compensated TCB for only half of the work it undisputably performed. On appeal, TCB argues it was entitled, as a matter of law, to $6,634,436.69, based on the undisputed amount of debris it removed. Specifically, TCB claims it was entitled to summary judgment or a directed verdict in its favor because Fore was estopped from denying the subcontract's modification.
¶ 3. Under Mississippi's quasi-estoppel doctrine, a party cannot claim the benefits of a transaction and at the same time repudiate its obligations. Fore accepted the benefits of the modified subcontract with TCB, billing Harrison County (County) for each cubic yard of debris TCB removed south of Highway 53. And Fore admits that neither it nor any other subcontractor besides TCB performed the work for which Fore was compensated. Based on Mississippi's quasi-estoppel doctrine, we find Fore is estopped from denying it owed TCB any portion of the approximately $8.5 million it collected from the County for TCB's work south of Highway 53. Thus, the circuit court erred by submitting the issues of modification and damages to the jury. We reverse the circuit court's $3,577,583.34 judgment and render judgment in TCB's favor in the amount of $6,634,436.69.
¶ 4. The circuit court correctly awarded TCB prejudgment interest of eight percent. But we find this interest should have been awarded from the date of breach, not the date TCB filed its complaint. Therefore, we remand to the circuit court to calculate prejudgment interest. We affirm the circuit court's directed verdict in favor of Fore on the issues of punitive damages and attorney's fees.
¶ 5. On August 29, 2005, the County began clearing debris left in the wake of Hurricane Katrina from its right of ways. It divided the county into three zones. Fore won the contract to remove debris in Zone 2. The County agreed to pay Fore $10.64 per cubic yard of debris removed from this zone.
¶ 6. On September 16, 2005, Fore entered into a subcontract with TCB to haul debris in Zone 2 north of Highway 53 for $8.90 per cubic yard. The subcontract required TCB to send Fore daily reports, referred to as "truck tickets." The subcontract also had an express good-faith clause, which stated "the contract can and will be modified based upon facts and circumstances of all debris removal."
¶ 8. An independent accounting firm, R.W. Beck & Associates (Beck), oversaw the debris removal. Each day Beck inspected the trucks removing the debris. It also calculated the cubic yardage and verified the location from which the debris had been removed. Once Beck approved the truck tickets, it sent copies to Fore. TCB also sent Fore weekly invoices. Fore utilized the figures contained in TCB's invoices to create its own invoices, which Fore submitted to the County for payment. Beck verified the invoices and told the County these invoices should be paid; and the County, in turn, looked to the Federal Emergency Management Agency (FEMA) for funds to pay Fore's invoices.
¶ 9. Fore claims in March 2006 it first learned TCB had been hauling debris from south of Highway 53. Although Fore stopped paying TCB's invoices at this point, it does not dispute it billed the County for all of the debris TCB hauled south of Highway 53. And the County paid Fore in full for each invoice submitted. In total, Fore received $12,292,176.10 from the County based on debris cleared by TCB. This represents approximately 1,155,280 cubic yards, at $10.64 per cubic yards. TCB claims it is entitled to $10,273,125.77 of that money, or $8.90 for each yard it undisputably hauled. Fore's payments to TCB totaled only $3,638,689.08, a difference of $6,634,436.69.
¶ 10. TCB sued Fore for breach of contract. To recover for breach of contract, a plaintiff has the burden to prove by preponderance of the evidence: (1) the existence of a valid and binding contract, (2) the defendant's breach of the contract, and (3) resulting monetary damages. Warwick v. Matheney, 603 So.2d 330, 336 (Miss.1992). TCB argued: (1) the subcontract, in which Fore promised to pay TCB $8.90 for each cubic yard of debris it removed, was orally modified to include debris removal south of Highway 53 as well as north of Highway 53; (2) TCB removed debris south of Highway 53 on Fore's behalf, but despite having billed the County for this work, Fore did not pay TCB; and (3) TCB suffered damages of $6,634,436.69. Fore countered that the subcontract only concerned the area north of Highway 53 and was never modified. But Fore conceded it had billed the County for TCB's work south of Highway 53, received payment in full, and did not compensate TCB. Fore argued TCB was only entitled to $3,117,958 for the approximately 350,332 cubic yards TCB cleared north of Highway 53. Fore counterclaimed for the difference between what it paid TCB ($3,638,689.08) and what TCB earned north of Highway 53 ($3,117,958.09) — an alleged "overpayment" of $520,730.99.
¶ 11. Before trial, TCB moved for summary judgment. It argued there were no disputed facts concerning the modified subcontract's existence because Fore actually utilized TCB's invoices to bill the County for debris removed south of Highway 53, thus proving the subcontract had been modified. The circuit judge denied
¶ 12. The circuit court submitted the issues of the modified subcontract's existence, breach, and the amount of damages to the jury. TCB questioned whether the jury should decide the amount of damages and argued that if the jury found the subcontract had been modified then it should award TCB the set amount of money represented by invoices Fore accepted from TCB and billed to the County. The circuit judge rejected TCB's argument that the amount of damages was set, deciding "to leave the amount of the verdict up to the jury in its discretion...." In a special interrogatory verdict form, the jury found the subcontract had been modified but that TCB was only entitled to $4,098,314.33 for breach of the modified subcontract. It also awarded Fore $520,730.99 on its "overpayment" counterclaim. The result was a $3,577,583.34 net award for TCB.
¶ 13. The circuit judge awarded TCB prejudgment interest of eight percent, accruing from the date TCB filed its complaint. The circuit judge refused to submit TCB's punitive damages claim to the jury.
¶ 14. On appeal, TCB argues the issues of the existence of the modified subcontract and the amount of damages owed for Fore's breach should not have been submitted to the jury. Instead, TCB claims, as a matter of law, that Fore owed it $6,634,436.69 based on Mississippi's doctrine of quasi-estoppel, as applied in Hoerner v. First National Bank of Jackson, 254 So.2d 754, 761-62 (Miss.1972). Fore asserts the doctrine of quasi-estoppel is not applicable to TCB's claim. And even if the doctrine did apply, Fore contends TCB waived the argument at the trial level by not specifically pleading and arguing estoppel.
¶ 15. As to prejudgment interest, TCB claims that because the amount of damages was liquidated, it is entitled to the eight-percent prejudgment interest from the date of breach, not the later date of filing the complaint. Fore cross-appeals on this issue, asserting TCB's damages were unliquidated; thus, the award of prejudgment interest was an abuse of discretion.
¶ 16. TCB also requests that we remand the issue of punitive damages for a jury trial.
¶ 17. TCB moved for a directed verdict in its favor on its breach-of-contract claim. We review the denial of a directed verdict de novo. Figueroa v. Orleans, 42 So.3d 49, 52 (¶ 11) (Miss.Ct.App.2010) (citing Windmon v. Marshall, 926 So.2d 867, 872 (¶ 20) (Miss.2006)). "If the Court finds that the evidence favorable to the non-moving party and the reasonable inferences drawn therefrom present a question for the jury, the motion should not be granted." Entergy Miss., Inc. v. Bolden, 854 So.2d 1051, 1055 (¶ 7) (Miss.2003) (quoting Pace v. Fin. Sec. Life of Miss., 608 So.2d 1135, 1138 (Miss.1992)). "However, `our rules and case law allow for
¶ 18. The circuit court found W.C.'s denial of the subcontract's modification was sufficient to create jury questions on the issues of modification and damages. But our review shows there were no jury issues to be resolved. Fore admits it did not reject a single one of TCB's daily truck tickets or weekly invoices. Likewise, prior to TCB filing suit, Fore did not protest that TCB was working in an area outside of the area covered in the subcontract. Fore also admits it billed the County — and received payment from the County — for TCB's work represented by these invoices. Mississippi law prevents Fore from simultaneously benefitting from the modified subcontract — by receiving over $8.5 million from the County because of TCB's work south of Highway 53 — and then in turn repudiating any obligation to pay TCB its approximately $7.15 million share. Fore's undisputed conduct, as a matter of law, established the subcontract's modification. And TCB's unquestioned invoices proved Fore owed TCB a remaining balance of $6,634,436.69.
¶ 19. Quasi-estoppel is an equitable principle that applies to certain bars, such as ratification, acquiescence, or acceptance of benefits. This long-standing doctrine is applied to preclude contradictory positions by preventing a person from asserting, to another's disadvantage, a right inconsistent with a position previously taken. Wood Naval Stores Exp. Ass'n v. Latimer, 220 Miss. 652, 664, 71 So.2d 425, 430 (1954). Quasi-estoppel is based on the unconscionability of allowing a person to maintain a position inconsistent with one to which he acquiesced or from which he accepted a benefit. Bailey v. Estate of Kemp, 955 So.2d 777, 782 (¶ 21) (Miss. 2007). This doctrine "applies where `the conscience of the court is repelled by the assertion of rights inconsistent with a litigant's past conduct[.]'" Harold H. Huggins Realty, Inc. v. FNC, Inc., 575 F.Supp.2d 696, 712 (D.Md.2008) (applying Mississippi law) (quoting Unruh v. Indus. Comm'n of Ariz., 81 Ariz. 118, 301 P.2d 1029, 1031 (1956)).
¶ 20. In addressing the equitable concepts embodied in the quasi-estoppel doctrine, the Mississippi Supreme Court has explained:
Wood Naval, 220 Miss. at 664, 71 So.2d at 430 (citation omitted).
¶ 21. In Hoerner, the Mississippi Supreme Court applied the doctrine of quasi-estoppel to reverse a chancellor's ruling that Fred Hoerner was not personally liable under a guaranty agreement. Hoerner, 254 So.2d at 761-62. The guaranty agreement required Hoerner's prior approval before the bank issued a guaranteed loan. Id. at 760. At trial, Hoerner adamantly denied giving approval for the loans. And the trial court rejected as inadmissible parol evidence the testimony by bank employee's that Hoerner had approved each loan over the phone. Id. Thus, based on Hoerner's "undisputed" testimony, the trial court found he was not liable. Id.
¶ 23. The supreme court held proof of Hoerner's actual approval was unnecessary because Hoerner's "acceptance of the benefits flowing from [the loans] could not be other than an implied approval by operation of law." Id. at 762 (emphasis added). The Hoerner court recognized: "Where one having the right to accept or reject a transaction takes and retains benefits thereunder, he ratifies the transaction, is bound by it, and cannot avoid its obligation or effect by taking a position inconsistent therewith." Id. Thus, "based on equity and good conscience[,]" the supreme court reversed the judgment in favor of Hoerner and rendered judgment in the bank's favor based on evidence of Hoerner's conduct. Id. at 761-62.
¶ 24. Earlier, in Wood Naval, the supreme court similarly looked to the conduct of two association members. Wood Naval, 220 Miss. at 664-65, 71 So.2d at 429-30. Because the two members elected to continue as members of the association and "availed themselves of the advantages which the association had to offer," they were estopped from denying their continued membership. Id. at 664-65, 71 So.2d at 430.
¶ 25. More recently, in Bailey, the supreme court relied on the same estoppel principle to uphold a contract for services provided to sell out-of-state rental properties. The Bailey court held:
Bailey, 955 So.2d at 782 (¶ 21) (internal citation and quotations omitted). In Bailey, our supreme court found the contract should also be upheld "as a matter of equity," because to avoid the obligations the contract created would have resulted in a "windfall." Id. at 783 (¶ 24).
¶ 26. As equitable principles go, our inquiry focuses solely on the application of the doctrine of quasi-estoppel, as expressed in Hoerner, Wood Naval, and Bailey, to Fore's actions related to the subcontract. Because Judge Carlton's separate opinion delves into equitable estoppel, quantum meruit, and unjust enrichment, we briefly note these equitable doctrines are inapplicable to this appeal. These doctrines, which are not relied on by the appellant nor the majority, are neither synonymous with quasi-estoppel — or with each other.
¶ 27. In Hoerner, Wood Naval, and Bailey, quasi-estoppel operated to prohibit the defendants' assertions that were inconsistent with their previous acceptances of benefits — subsequent bank loans (Hoerner), continued association membership benefits (Wood Naval), and real-estate investment services (Bailey) — and, therefore, prohibited the defendants from denying the existence of the contractual basis for the plaintiffs' claims. Here, the unambiguous contractual language stated the subcontract between Fore and TCB "can and will be modified based upon facts and circumstances of all debris removal." TCB essentially argues Fore is estopped from denying the modification of its subcontract with TCB since the "facts and circumstances of all debris removal" undisputedly showed (1) Fore's previous acceptance and ratification of TCB's invoices for debris removed south of Highway 53, (2) Fore's submissions of these invoices to the County for payment, (3) Fore's receipt of payment from the County for debris TCB removed south of Highway 53, and (4) the fact that TCB — not Fore nor any other company — was the only contractor that had removed debris south of Highway 53. Because Fore ratified, accepted, and greatly benefitted from TCB's debris removal south of Highway 53, TCB argues quasi-estoppel precludes Fore from later flip flopping to an entirely inconsistent position aimed solely at shirking its obligation to pay TCB.
¶ 28. Generally, "[q]uasi-estoppel is a factual determination and thus the province of the jury[.]" Stinnett v. Colo. Interstate Gas Co., 227 F.3d 247, 258 (5th Cir.2000). But if the evidence is undisputed as to the material facts, estoppel may be established as a matter of law. M.R.C.P. 56(c). See Allen v. Dempster Mill Mfg. Co., 402 S.W.2d 809, 810 (Tex. Ct.App.1966) (finding estoppel established as a matter of law because of undisputed record).
¶ 29. Bearing in mind that quasi-estoppel "precludes a party from asserting, to another's disadvantage, a right inconsistent
¶ 30. Fore argues W.C. was the only corporate agent that could bind Fore to the modified subcontract, and W.C. testified he did not know TCB was working south of Highway 53 because the "ladies" in the bookkeeping department handled these invoices without his knowledge. Therefore, Fore argues it cannot be bound to the modified subcontract through quasi-estoppel. But what Fore does not argue is that its bookkeeping employees were unauthorized to accept the invoices or submit them to the County for payment or that Fore, the corporation, was without knowledge it was accepting the benefit of TCB's work.
¶ 31. First, only TCB, not Fore nor any other subcontractor, removed debris from that area. Second, TCB submitted invoices to Fore's accountants depicting TCB had removed debris from this area. Fore then reviewed TCB's invoices and utilized the figures provided by TCB to generate its own invoices, which Fore submitted to the County for payment. Third, an independent accounting firm also inspected TCB's trucks daily before they left the area south of Highway 53. This process required that Beck calculate the cubic yardage and verify the location from which the debris was removed. After approving the truck tickets, Beck sent copies of these tickets, which included the removal location, to Fore. Fourth, by submitting invoices to the County, Fore represented to the government that the amount and location of debris being removed from Zone 2 was accurate. And Fore has never
¶ 32. Fore does not deny these interactions or dispute that only TCB performed debris removal south of Highway 53. Instead, Fore simply argues it gets to keep every cent of the over $8.5 million the County paid it for TCB's debris removal south of Highway 53 because the subcontract was not modified. We find, as a matter of law, that Fore cannot keep this windfall. See Bailey, 955 So.2d at 783 (¶ 24). As in Hoerner, we find Fore's acceptance of the benefits of TCB's work "could not be other than an implied approval by operation of law." Hoerner, 254 So.2d at 762. Quasi-estoppel applies because "the conscience of the court is repelled" by Fore taking the position it does not have to pay TCB its contract rate when Fore operated as if the subcontract included debris removal south of Highway 53. Huggins Realty, 575 F.Supp.2d at 711-12.
¶ 33. Judge Carlton's separate opinion focuses on the denial of TCB's motion for a judgment notwithstanding the verdict and finds the evidence supports the jury's verdict. "Our standards of review for a denial of a judgment notwithstanding the verdict and a directed verdict are ... identical." Sperry-New Holland v. Prestage, 617 So.2d 248, 252 (Miss.1993) (superseded by statute on other, unrelated grounds) (citing Munford, Inc. v. Fleming, 597 So.2d 1282, 1284 (Miss.1992)). Under this standard:
Id. (citing Munford, 597 So.2d at 1284). "The above standards of review, however, are predicated, on the fact that the trial judge applied the correct law." Id. (emphasis added). "If the trial court `has exercised its discretionary authority against a substantial misperception of the correct legal standards, our customary deference to the trial court is pretermitted... for the error has become one of law.'" Id. (citing Southern v. Glenn, 568 So.2d 281, 284 (Miss.1990); Nationwide Mut. Ins. Co. v. Evans, 553 So.2d 1117, 1119 (Miss.1989); Gibson v. Manuel, 534 So.2d 199, 204 (Miss.1988)). Here, we find the trial court erred by failing to apply the doctrine of quasi-estoppel to the issue of the subcontract's modification. Based on the undisputed facts presented at summary judgment and at trial, Fore is estopped from disclaiming its obligation under the modified subcontract. See Hoerner, 254 So.2d at 761. Thus, the trial court should have granted TCB's motion for a directed verdict.
¶ 34. Just as the issue of modification was not a jury issue, neither was the issue of damages. The circuit court decided to leave the amount of damages to the jury's discretion. We find the submission of the issue of damages to the jury to be error. Fore presented no evidence to dispute the
¶ 35. Judge Carlton's separate opinion claims TCB failed to submit a jury instruction asking for damages in the set amount of $6,634,436.69. But TCB moved for summary judgment, arguing there were no disputed factual issues, and then moved for a directed verdict for the same reasons. We hold that the issue of damages should not have gone to the jury. Nonetheless, TCB explained to the circuit court that it had not prepared an instruction on damages because it was unsure whether the court would award it the amount of its claim or submit the issue to the jury. Though TCB continued to maintain that it should be entitled to the set amount, the circuit court decided to submit the issue of the amount of damages to the jury.
¶ 36. In A & F Properties, this court held it was error to find the defendant breached the contract but not award the undisputed amount plaintiff would have received but for the breach. A & F Props., LLC v. Lake Caroline, Inc., 775 So.2d 1276, 1281-82 (¶¶ 13-17) (Miss.Ct.App. 2000). In that case, we reversed the jury's award and rendered an award in the amount of plaintiff's full claim. Id. Similarly, TCB is entitled to be placed in the same position it would have been absent Fore's breach of the modified subcontract. Therefore, we reverse the jury's damage award and render judgment in TCB's favor in the amount of $6,634,436.69.
¶ 37. Fore argues TCB did not plead estoppel — only breach of contract — and, therefore, cannot recover under this equitable theory of quasi-estoppel. Fore further claims TCB neither asserted "estoppel" in its motion for summary judgment nor in its ore tenus motion for a directed verdict but instead raised this equitable theory for the first time on appeal. TCB counters that quasi-estoppel was not a separate claim or an alternative ground for recovery. Instead, quasi-estoppel arose as TCB's response to Fore's breach-of-contract defense that the subcontract was never modified. Having considered Fore's argument, we find TCB did not waive the application of quasi-estoppel.
¶ 38. Quasi-estoppel is not an independent claim that must be pled. E.g., Hoerner, 254 So.2d at 762 (applying quasi-estoppel to a breach-of-guaranty claim). Rather, quasi-estoppel is an affirmative defense. See M.R.C.P. 8(c); see also Stimpson v. Plano Indep. Sch. Dist., 743 S.W.2d 944, 945 (Tex.Ct.App.1988) (discussing the affirmative defense of estoppel). Typically, it is the defendant who affirmatively pleads quasi-estoppel to show the plaintiff's claim is based on an inconsistent position. E.g., Wood Naval, 220 Miss. at 659, 71 So.2d at 427 (noting that the defendant alleged estoppel in its answer). But a plaintiff like TCB may also assert quasi-estoppel in response to the defendant's answer. See Schachar v. N. Assur. Co. of Am., 786 S.W.2d 766, 768 (Tex.Ct.App. 1990) (discussing how quasi-estoppel may be asserted as "a defense urged by the original plaintiff to the defendant's affirmative pleading").
¶ 39. TCB correctly points out that Mississippi's pleading rules do not require the plaintiff to file a response to the defendant's
¶ 40. TCB pled that the subcontract existed because Fore accepted the benefit of the modified subcontract. And in its motions for summary judgment and motion for a directed verdict, TCB argued W.C.'s inconsistent testimony that the subcontract had not been modified could not be used to dispute Fore's previous conduct. Specifically, when moving for a directed verdict, TCB's attorney argued:
While TCB did not use the magic word "estoppel," it did argue W.C.'s denial of the modification was not "sufficient to overcome the completion of the contract and the acceptance of the work and the money...." Thus, we find TCB sufficiently raised and argued the application of quasi-estoppel to the circuit court.
¶ 41. Further, we note that in Hoerner, a case that directs us to apply quasi-estoppel under these circumstances, the supreme court did not attribute its application of estoppel to the bank's pleadings or defenses below. Hoerner, 254 So.2d at 760. Instead, the bank appealed the trial court's refusal to admit its evidence refuting Hoerner's denial of the loan approval. Id. at 760-61. Based on the record facts below, the supreme court applied quasi-estoppel, concluding that as a matter of law the loans were ratified by Hoerner's conduct. Id. at 761 ("We are of the opinion that Hoerner is now estopped...."). Reviewing the trial record here, we are of the same opinion as the supreme court in Hoerner and find no procedural bar to the application of quasi-estoppel to Fore's inconsistent assertions.
¶ 42. Both TCB and Fore appeal the circuit court's award of prejudgment interest. TCB argues, because its damages were liquidated, prejudgment interest should have been awarded from the date of the breach of the subcontract, not the later date when it filed its complaint for breach of contract. Fore claims, because TCB's damages were unliquidated, no prejudgment interest should have been awarded. We affirm the award of prejudgment interest but remand this case to the circuit court to calculate the interest from the date of the breach.
¶ 43. A trial judge may "award prejudgment interest to the prevailing
¶ 44. When damages are liquidated or there has been a bad-faith denial of payment, "the prevailing party in a breach of contract suit is entitled to have added legal interest on the sum recovered computed from the date of the breach of the contract to the date of the decree." Sentinel Indus. Contracting Corp. v. Kimmins Indus. Serv. Corp., 743 So.2d 954, 971 (¶ 53) (Miss.1999) (reversing denial of prejudgment interest on subcontractor's successful breach-of-contract claim); see also U.S. Fid. & Guar. Co. v. Estate of Francis ex rel. Francis, 825 So.2d 38, 50 (¶ 36) (Miss.2002) (finding that "[p]rejudgment interest may be allowed in cases where the amount due is liquidated when the claim is originally made or when the denial of a claim is frivolous or in bad faith"). "Liquidated" damages are "damages that are set or determined by a contract when a breach occurs." Moeller, 812 So.2d at 959 (¶ 18) (citing Black's Law Dictionary 395, 397 (7th ed.1999)). "The purpose of awarding prejudgment interest [on liquidated claims] is not to punish the wrongdoer but to compensate the innocent party for the detention of the overdue funds." Cain, 967 So.2d at 663 (¶ 19).
¶ 45. In contrast, "unliquidated" damages "cannot be determined by a fixed formula, so they are left to the discretion of the judge or jury." Moeller, 812 So.2d at 960 (¶ 18) (quoting Black's at 397). "No award of prejudgment interest is allowed where the principal amount has not been fixed prior to judgment." Estate of Francis, 825 So.2d at 50 (¶ 36) (citation omitted).
¶ 46. If there is a bona fide dispute as to whether the plaintiff is entitled to recover damages and in what amount, the claim is not liquidated. Estate of Gillies v. Gillies, 830 So.2d 640, 647 (¶ 25) (Miss.2002). In Gillies, there was a dispute not only over whether the defendant owed the plaintiff damages but also over how much was owed. Id. The trial court properly rejected the claim for prejudgment interest because the plaintiff's award was based on quantum meruit and his damages were measured by the reasonable value of his services, not a fixed contract rate for his services. Id.; see also Warwick, 603 So.2d at 342 (holding that damages were not liquidated because there were several contested issues surrounding the measure of damages — namely the value of stock the defendants contracted to buy).
¶ 47. But prejudgment "[i]nterest may be awarded when the amount of damages is certain, even if the fact of liability for those damages is disputed." Cain, 967 So.2d at 664 (¶ 23) (reversing denial of prejudgment interest on breach and remanding to trial court to calculate and award prejudgment interest). In Cain, the parties disputed whether a services contract had been orally modified. The plaintiff requested a set amount of damages — the amount in outstanding invoices sent to the defendant. Id. at 664 (¶¶ 21-22). The defendant argued the contract had been modified, and it owed nothing more to the plaintiff. Id. at 663 (¶ 20). The jury found for the plaintiff. The trial court denied prejudgment interest to the plaintiff because the defendant disputed it owed plaintiff any damages. Id. This court reversed the denial of prejudgment interest as an abuse of discretion because
¶ 48. Citing Gillies and Warwick, Fore argues the amount of damages was disputed; thus, the circuit court abused its discretion by awarding prejudgment interest at all. Though the contract rate of $8.90 was fixed, Fore argues the extent to the which the subcontract was modified required jury resolution. Fore supports its argument with the fact the jury returned a damages award for less than TCB's requested amount.
¶ 49. We disagree and find TCB and Fore's dispute is similar to that in Cain. Fore denied it owed anything for work south of Highway 53 because the subcontract had not been modified. But it did not dispute the amount of work TCB performed south of Highway 53. Indeed, it used the exact figures from TCB's invoices to generate the bills Fore sent to the County. As we determined Fore's undisputed conduct left no jury issue as to Fore's contractual obligation to pay these invoices, we find there is no dispute as to how much is owed on these invoices. Thus, TCB's damages are liquidated and were fixed at the time Fore breached the subcontract by failing to pay TCB for its work.
¶ 50. The circuit court correctly awarded TCB eight-percent prejudgment interest. But it erroneously set the date the interest began to accrue as the date TCB filed suit. This interest actually began to run at the time of breach. Mississippi Code Annotated section 75-17-1(1) (Rev.2009) provides: "The legal rate of interest on all notes, accounts and contracts shall be eight percent (8%) per annum, calculated according to the actuarial method...." And Mississippi Code Annotated section 75-17-7 (Rev.2009) provides:
In interpreting these two statutes, the Mississippi Supreme Court has made the distinction between judgments based on a contract and other judgments. In re Duckett v. Duckett, 991 So.2d 1165, 1181 (¶ 34) (Miss.2008). "Under Section 75-17-7, if the judgment of the lower court is not based on a contract or note, and the lower court decides to award prejudgment interest at `a per annum rate set by it,' it may only calculate that interest `from a date determined by the court to be fair but in no event prior to the filing of the complaint.'" Id. (quoting Miss.Code Ann. § 75-17-7) (emphasis added). But for judgments based on breach of contract, the supreme court, relying on both sections 75-17-1 and 75-17-7, has held eight-percent prejudgment interest should run from the date of the breach of contract. Sentinel Indus., 743 So.2d at 971 (¶ 53) (citing Stockett v. Exxon Corp., 312 So.2d 709, 712 (Miss.1975)); see also Estate of Baxter v. Shaw Assocs., Inc., 797 So.2d 396, 403-04 (¶ 30, ¶ 34) (Miss.Ct.App.2001) (discussing both the general rule that interest runs from the date of breach of contract and the supreme court's application of section 75-17-1 in determining prejudgment interest in breach-of-contract cases). On remand,
¶ 51. In addition to full compensation under the modified subcontract, TCB seeks remand of the issue of punitive damages and attorney's fees to the circuit court. We find the circuit court did not abuse its discretion in denying punitive damages.
¶ 52. The prevailing party in a breach-of-contract action may recover punitive damages "where such breach is attended by intentional wrong, insult, abuse, or such gross negligence as amounts to an independent tort." Fought v. Morris, 543 So.2d 167, 173 (Miss.1989). Attorney's fees are also recoverable when a punitive damages award would be proper. Puckett v. Gordon, 16 So.3d 764, 771 (¶ 26) (Miss. Ct.App.2009) (finding, absent a contract provision or statutory authorization, attorney's fees may not be awarded "unless punitive damages are also proper").
¶ 53. The Mississippi Supreme Court has cautioned that punitive damages "are appropriate, only in extreme cases" and "should be awarded only with caution and within narrow limits." Fought, 543 So.2d at 173 (citations and internal quotations omitted). That is because the purpose of punitive damages is punishment, not compensation. See Puckett, 16 So.3d at 771 (¶ 24) (describing punitive damages as exemplary "added damages"); Sudeen v. Castleberry, 794 So.2d 237, 249 (¶ 35) (Miss.Ct.App.2001) ("What is otherwise a windfall is deemed necessarily granted to the plaintiff as his reward for public service in bringing the wrongdoer to account.").
¶ 54. "Punitive damages may not be awarded if the claimant does not prove by clear and convincing evidence that the defendant against whom punitive damages are sought acted with actual malice, gross negligence which evidences a willful, wanton or reckless disregard for the safety of others, or committed actual fraud." Miss. Code Ann. § 11-1-65(1)(a) (Supp.2011). The trial court must consider the "totality of the circumstances to determine if a reasonable, hypothetical trier of fact could find either malice or gross neglect/reckless disregard." Doe, 835 So.2d at 81 (¶ 17) (citing Ross-King-Walker, Inc. v. Henson, 672 So.2d 1188, 1191 (Miss.1996)).
¶ 55. TCB asserts the question of whether to submit the issue of punitive damages to the trier of fact is one of law, prompting our de novo review. To this end, TCB argues the line of Mississippi Supreme Court cases relying on Hurst v. Southwest Mississippi Legal Services Corp., 708 So.2d 1347, 1351 (Miss.1998) — which instruct that our standard of review is abuse of discretion — are "an aberration." See e.g., Mariner Health Care, Inc. v. Estate of Edwards ex. rel. Turner, 964 So.2d 1138, 1148 (¶ 22) (Miss.2007); Bradfield v. Schwartz, 936 So.2d 931, 936 (¶ 15) (Miss.2006); Tillman v. Singletary, 865 So.2d 350, 354 (¶ 18) (Miss.2005); Doe ex rel. Doe v. Salvation Army, 835 So.2d 76, 81 (¶ 17) (Miss.2003).
¶ 56. However, "[t]here is no right to recover punitive damages. The award of such damages has always been discretionary." Tideway Oil Programs, Inc. v. Serio, 431 So.2d 454, 460-61 (Miss. 1983) (considering Mississippi law on punitive damages as far back as 1854) (emphasis
Miss.Code Ann. § 11-1-65(1) (Supp.2011) (emphasis added); see Doe, 835 So.2d at 79 (¶ 7) ("[T]he statute clearly states that if certain criteria are met then the court determines whether the issue of punitive damages may be submitted to the trier of fact.") (citing Miss.Code Ann. § 11-1-65(1)(d) (Supp.2011)). Thus, "[t]he trial court's determination whether a case warrants the consideration of punitive damages will not be overturned absent an abuse of discretion." Mariner Health Care, 964 So.2d at 1148 (¶ 22) (citing Bradfield, 936 So.2d at 936 (¶ 15)).
¶ 57. After the jury's verdict, the circuit court granted Fore's motion for a directed verdict on the issue of punitive damages because it found no evidence of malicious conduct by Fore. TCB argues Fore's decision not to pay TCB any part of the outstanding $6,634,436.69 in invoices is evidence of malice on Fore's part. While we find Mississippi law estops Fore, based on its conduct, from denying the subcontract had been modified, our holding does not necessitate a rejection of the circuit judge's finding that Fore's denial of the modification was not malicious.
¶ 58. The punitive-damages statute establishes a high evidentiary burden — clear and convincing evidence — and accords the trial court discretion over this issue. And the supreme court cautions punitive damages are for the extreme cases. Fore took a hard-line business position by arguing it owed TCB nothing for the work south of Highway 53, an approach prohibited under Mississippi's quasi-estoppel principle. But the circuit court found some validity in W.C.'s testimony that he did not know TCB was performing work for Fore south of Highway 53. Though the question is admittedly close, we do not find the trial court abused its discretion as gatekeeper by finding Fore's actions did not necessitate submission of the punitive-damages issue.
¶ 59. Because we affirm the circuit court's ruling on punitive damages, we likewise affirm its denial of attorney's fees. Puckett, 16 So.3d at 771 (¶ 26).
¶ 60.
GRIFFIS, P.J., BARNES AND ROBERTS, JJ., CONCUR. RUSSELL, J., CONCURS IN PART WITHOUT SEPARATE WRITTEN OPINION. LEE, C.J., CONCURS IN PART AND DISSENTS IN PART WITH SEPARATE WRITTEN OPINION JOINED BY IRVING, P.J., AND RUSSELL, J. CARLTON, J., CONCURS
LEE, C.J., concurring in part and dissenting in part:
¶ 61. I respectfully dissent as I find that the trial court erred in granting W.C. Fore's motion for a directed verdict on the issues of punitive damages and attorney's fees. The jury should have been allowed to consider T.C.B. Construction's (TCB) claim for punitive damages and attorney's fees. Fore blatantly decided not to pay $6,634,436.69 in invoices submitted by TCB. Fore made excuses as to why it did not pay TCB, but the excuses were found to be without merit at trial. Fore admitted it billed Harrison County and received payment for all work done by TCB. TCB bore the expense of its work and paying its employees while Fore denied payment. Fore should be punished for its willful conduct, and under our law, the means of doing this is to award punitive damages.
¶ 62. Punitive damages are to be awarded when the claimant can "prove by clear and convincing evidence that the defendant against whom punitive damages are sought acted with actual malice...." Miss.Code Ann. § 11-1-65(1)(a)(Supp.2011). "[T]he plaintiff is entitled to recover punitive damages `only if he has demonstrated a willful or malicious wrong or the gross, reckless disregard for the rights of others.'" McCorkle v. McCorkle, 811 So.2d 258, 270 (¶ 29) (Miss. Ct.App.2001) (quoting Boling v. A-1 Detective & Patrol Serv. Inc., 659 So.2d 586, 588 (Miss.1995)). "The kind of wrongs to which punitive damages are applicable are those which, besides the violation of a right or the actual damages sustained, import insult, fraud, or oppression and not merely injuries, but injuries inflicted in the spirit of wanton disregard for the rights of others." Summers ex rel. Dawson v. St. Andrew's Episcopal Sch., Inc., 759 So.2d 1203, 1215 (¶ 52) (Miss.2000). Attorney's fees are recoverable if the facts are of such gross or willful wrong as to justify the infliction of punitive damages. See Netterville v. Miss. State Bar, 404 So.2d 1026, 1028 (Miss.1981).
¶ 63. This is a clear case of wanton disregard for TCB's rights. Fore asserts that punitive damages and attorney's fees were correctly denied because it did not act maliciously. Fore claims that it did not know TCB was performing work south of Highway 53; thus, it did not know it owed TCB the money. I find this argument disingenuous and contradictory to the defense put on at trial. At trial, Fore's defense was that it hired TCB to perform debris removal north of Highway 53. TCB claimed that the subcontract was modified orally to include debris removal south of Highway 53. Fore denied knowledge of an oral agreement. Fore's denial came after TCB submitted invoices to Fore, and Fore billed the County for the work south of Highway 53. The performance of TCB's work was monitored by R.W. Beck & Associates. Beck audited all the bills, and the County paid Fore over $12 million for TCB's debris removal north and south of Highway 53. In addition, after TCB sent Fore a letter demanding to be paid, Fore responded on June 19, 2006, stating that TCB had not been paid because of a potential set off for interest on delayed payments from the County. Fore did not deny knowledge that TCB was performing the work.
¶ 64. I find that the foregoing facts present clear and convincing evidence of malicious conduct. Fore's actions were willful and inflicted in the spirit of wanton disregard for TCB's rights. Summers, 759 So.2d at 1215 (¶ 52). Fore blatantly denied payment to TCB despite TCB having
IRVING, P.J., AND RUSSELL, J., JOIN THIS OPINION.
CARLTON, J., concurring in part and dissenting in part:
¶ 65. I respectfully dissent in part and concur in part with the majority. I find that the record reflects that substantial evidence
¶ 66. Fore, in its motion for rehearing, also asserts that the majority misapprehended the law by applying an erroneous
¶ 67. In the case before us, the jury found in favor of TCB as to the existence of the disputed oral modification finding TCB orally agreed with Fore to perform as Fore's subcontractor in the removal of debris south of Highway 53 as a modification to its existing subcontract with Fore for work north of Highway 53. Fore unsuccessfully claimed that TCB had removed debris south of Highway 53 in violation of its contract and billed that debris as though collected in Zone 2, an area north of Highway 53 and covered by the written subcontract between TCB and Fore. Fore denied agreeing to allow TCB to haul debris south of Highway 53, and albeit unsuccessful, Fore denied possessing any knowledge that TCB was hauling debris from south of Highway 53 in violation of the contract.
¶ 68. After finding that the oral modification occurred, the jury then awarded TCB the amount of $4,098,314.33 for performing the oral modification of debris removal south of Highway 53. A review of the jury instructions
¶ 69. I concur with the trial judge's finding that disputes of material fact existed as to the oral modification as shown by the conflicting testimony and Fore's denial. I, therefore, find no abuse of discretion in the trial court's denial of TCB's request for a directed verdict as to the modification. Like the trial court, I find equitable estoppel fails to apply where disputes of material fact exist as to the alleged representation
¶ 70. With respect to the related doctrine of quantum meruit mentioned in TCB's post trial filings, the record shows that during the jury-instruction conference, TCB acknowledged that it failed to put on proof of reasonable certain compensation, other than the contract terms, as is required to recover on a theory of quantum meruit. See Tupelo Redevelopment Agency v. Gray Corp., Inc., 972 So.2d 495, 514-15 (¶¶ 56-59) (Miss.2007). After reviewing the findings of the trial court, I will return to address the application by the majority of estoppel by operation of law to reverse the jury verdict herein.
¶ 71. The jury found for Fore in its counterclaim against TCB, returning a verdict finding that Fore overpaid TCB for debris removal north of Highway 53. The record also shows that some of TCB's bills should not have been submitted to Fore for compensation. Therefore, since the jury verdict as to the counterclaim was also supported by substantial evidence, I respectfully submit that our standard of review requires affirmance of the jury's verdict as to the counterclaim as well.
¶ 72. I concur with the majority's opinion on the issue of punitive damages. Upon review, I find no abuse of discretion in the trial court's grant of Fore's request for a directed verdict on the issue of punitive damages, since a question of fact existed as to whether the parties orally modified the written subcontract between them. King v. Progressive Gulf Ins. Co., 913 So.2d 1065, 1068 (¶ 9) (Miss.Ct.App.2005).
¶ 73. I also find that the trial court properly awarded prejudgment interest from the date of the complaint, since such an award is within the trial court's discretion. Gordon v. Gordon, 929 So.2d 981, 984 (¶ 14) (Miss.Ct.App.2006). I note the damages were not liquidated,
¶ 74. As stated, I would not apply estoppel by operation of law to prohibit Fore from presenting its evidence of a denial of a material fact as to the oral modification. Instead, I would affirm the jury verdict since the record reflects substantial evidence in support of the verdict. The majority applies equitable estoppel by operation of law to reverse this case. Jurisprudence establishes that equitable estoppel should only be used in exceptional circumstances. Eagle Mgmt., LLC v. Parks, 938 So.2d 899, 904 (¶ 12) (Miss.Ct. App.2006) (citing Powell v. Campbell, 912 So.2d 978, 982 (¶ 12) (Miss.2005)). Moreover, equitable estoppel should not be applied by operation of law when disputes of material fact exist, and the trial judge found such disputes existed in this case. "Equitable estoppel [is] generally defined as `the principle by which a party is precluded from denying any material fact, induced by his words or conduct upon which a person relied, whereby the person changed his position in such a way that injury would be suffered if such denial or contrary assertion was allowed.'" Id.
¶ 75. When disputes as to material facts exist, generally, it is the role of the trier of facts to resolve questions raised by an allegation of estoppel,
¶ 76. The majority cites to a Texas case, Allen v. Dempster Mill Manufacturing Company, 402 S.W.2d 809 (Tex.Civ. App.1966), in applying equitable estoppel by operation of law. Allen pertains to an employee who kept receiving retirements checks while also receiving a salary, and no dispute of material fact existed.
¶ 77. TCB's post-trial filings comment upon quantum merit, and I will briefly address the applicability of this contractual remedy based upon the evidence and jury instructions in this case. The related contractual remedy of quantum meruit allows for recovery of work done outside of a contract, or not contemplated by the contract. However, TCB failed to present sufficient proof
The trial court then refused the jury instruction, and TCB asserted no objection but, as stated, agreed that this case was not a quantum-meruit case. Consistent with that representation, the jury instructions show that TCB failed to request any
¶ 78. The majority applies quasi-estoppel by operation of law to prohibit Fore from factually disputing the oral modification. My dissent evaluates the application of quasi-estoppel and also evaluates the application of related doctrines of equitable estoppel and quantum meruit, albeit briefly, while distinguishing between the doctrines.
¶ 79. The majority cites Bailey v. Estate of Kemp, 955 So.2d 777 (Miss.2007), Hoerner v. First National Bank of Jackson, 254 So.2d 754 (Miss.1972), and Wood Naval Stores Export Association v. Latimer, 220 Miss. 652, 71 So.2d 425 (1954). A review of these cases, however, reflects that the decisions substantively support the analysis of this dissent. In Hoerner, the Mississippi Supreme Court explained its application of estoppel as "hold[ing] a person to a representation made or a position assumed where otherwise inequitable consequences would result to another who, having the right to do so, under all the circumstances of the case, has in good faith relied thereon and been misled to his injury." Id. at 761. In the disputed breach-of-contract case before us, the oral modification of the subcontract constitutes the "representation made or a position assumed," as described in Hoerner — which TCB seeks to enforce against Fore by use of estoppel. Id. As previously stated, neither the doctrine of quasi-estoppel nor equitable estoppel serve to relieve the party asserting estoppel from proving the contract, representation, promise, or conduct upon with they relied to their detriment. For example, the guaranty agreement in Hoerner constituted a written contract, and the supreme court applied estoppel to prohibit Fred Hoerner from escaping liability for the continuing guaranty in the written contract. Id. In Hoerner, estoppel did not establish the prior written contract as claimed by the majority in this case. Similarly, in Bailey, 955 So.2d at 782 (¶ 21), the supreme court acknowledged that the equitable doctrine of quasi-estoppel "precludes a party from asserting, to another's disadvantage, a right inconsistent with a position it has previously taken," and "applies when it would be unconscionable to allow a person to maintain a position inconsistent with one to which he acquiesced, or from which he accepted a benefit." Id. In determining whether quasi-estoppel applied to that contract dispute, the supreme court recognized that it must first determine if there was a valid contract between the parties. Id. at (¶ 20). The court found a valid contract to exist, and, then, the court found that the contract should be upheld as a matter of equity. Id. at 783 (¶ 24). The Bailey court dealt with a formal written, signed and notarized contract where all the parties previously executed the agreement. The existence of the prior written contract was not in dispute; rather, the parties disputed the ability to enforce the written contract due to delay in enforcement of
¶ 80. The Bailey court cites to Bott v. J.F. Shea Company, Inc., 299 F.3d 508, 511 (5th Cir.2002), wherein the United States Court of Appeals for the Fifth Circuit addressed whether estoppel applied to preclude a claim of breach of a contract based on the failure of a subcontractor to obtain coverage for a general contractor as an additional insured. The construction contract between the general contractor and the subcontractor required the subcontractor to secure insurance coverage for the general contractor. Bott, 299 F.3d at 510. The contract specified how the general contractor's name should be reflected as an additional insured, but the insurance obtained and certificates provided by the subcontractor failed to use that specific name. Id. When the general contractor requested indemnity for a personal-injury liability, the insurance company denied coverage. Id. The general contractor then sued the subcontractor for breach of contract. Id.
¶ 81. In Bott, the Fifth Circuit recognized that quasi-estoppel "precludes a party from asserting, to another's disadvantage, a right inconsistent with a position [it has] previously taken. The doctrine applies when it would be unconscionable to allow a person to maintain a position inconsistent with one to which he acquiesced, or from which he accepted a benefit." Id. at 512. The Bott court found, however, that despite the general contractor's receipt of the insurance certificates with the improper name and despite the fact that general contractor allowed the subcontractor to commence work and be paid for its completion, the general contractor was not precluded from later enforcing the contract provisions against the subcontractor. Id. at 512-13. The court found that the general contractor's failure to enforce the contract provisions against the subcontractor was not a waiver of the subcontractor's obligations under the contract, even though the general contractor had acted inconsistently by accepting the insurance certificates with the incorrect name and allowing the subcontractor to work without proper insurance. Id; see also Wood Naval, 220 Miss. at 662-666, 71 So.2d at 429-30.
¶ 82. In conclusion, with respect to equitable estoppel, I concur with the trial judge's determination that a dispute of material fact as to the issue of modification existed and also as to damages; therefore, such disputes bar an application of equitable estoppel by operation of law. Based on our limited scope of review, we cannot retry the case for the parties on appeal nor can the parties retry their case on appeal. Gale v. Thomas, 759 So.2d 1150, 1159 (¶ 40) (Miss.1999). Therefore, I must respectfully dissent.
Dorris v. Carr, 330 So.2d 872, 874 (Miss. 1976); see also Flight Line, Inc. v. Tanksley, 608 So.2d 1149, 1160-61 (Miss.1992) (holding that an appellate court has no authority to vacate an award of damages merely because it believes the jury erred or because, had it been the trier of fact, it would have awarded a greater or lesser sum).