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Scruggs, Millette, Bozeman & Dent, P.A. v. Merkel & Cocke, P.A.

Citation: Not availableDocket: 1999-CA-00406-SCT

Court: Mississippi Supreme Court; April 27, 1999; Mississippi; State Supreme Court

Original Court Document: View Document

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In September 1997, Scruggs, Millette, Bozeman, Dent, P.A. (SMBD) filed a lawsuit in the Jackson County Chancery Court against Merkel, Cocke, P.A., and others, alleging mishandling of attorneys' fees from a wrongful death case involving asbestos. In March 1998, Merkel initiated an interpleader action in Coahoma County Chancery Court to settle a share of attorneys' fees from the same case. SMBD responded with a Motion to Dismiss, asserting priority jurisdiction due to the ongoing Jackson County case, which the Chancellor denied. The Chancellor granted interpleader relief to Merkel, recognizing it as a disinterested stakeholder for $4,953.43 in fees, discharging it from liability concerning the funds, and transferring the remaining dispute to Hinds County Circuit Court. The Chancellor also ordered SMBD to pay Merkel's attorney fees under Mississippi Rule of Civil Procedure 11. Both SMBD and Richard F. Scruggs appealed the decision. 

Background details include a collaboration between Richard F. Scruggs and William Roberts Wilson, Jr. starting in 1984 to handle asbestos-related cases, which led to the formation of Asbestos Group, P.A. Merkel was retained to pursue claims in 1984 for William H. Scott's heirs due to asbestos exposure. Following the settlement of the Scott case and subsequent distribution of fees, Merkel's handling of funds came under scrutiny, especially after payments were made solely to Wilson in 1994 after Luckey's termination from Asbestos Group. Luckey later sought recovery of fees he claimed were wrongfully withheld, further complicating the legal landscape surrounding the attorneys' fees.

The complaint requested an accounting of fees from the Scott litigation, where Merkel received settlement funds in 1996 and 1998. Merkel deducted its claimed percentage of the fees and held the remainder in escrow. On March 26, 1998, Merkel initiated an action in the Chancery Court of Coahoma County to interplead the escrowed funds, and the court granted this request on January 22, 1999, discharging Merkel from liability for the funds from the time of receipt.

The court addressed the appealability of its orders, noting that under Rule 54(b) of the Mississippi Rules of Civil Procedure, a judgment involving multiple claims or parties can only be considered final if there is an explicit determination of no just reason for delay. Without such certification, orders resolving fewer than all claims remain interlocutory and not subject to appeal. 

The Coahoma County chancellor issued three orders: one on January 22, 1999, concerning interpleader and dismissal of Merkel; a second on February 10, 1999, related to transferring the case to Hinds County; and a third on April 27, 1999, about attorney's fees. None of these orders terminated the action or made adjudications regarding other parties involved, nor were they certified as final under Rule 54(b). Consequently, the appeal was dismissed due to the interlocutory nature of the orders.