Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Henderson v. Copper Ridge Homes, LLC

Supreme Court of Mississippi

March 14, 2019

CINDY HENDERSON AND JOHN HENDERSON
v.
COPPER RIDGE HOMES, LLC, RICHARD CONEY, INDIVIDUALLY AND FIRST BANK, A MISSISSIPPI BANKING CORPORATION

          06/28/2017

          COURT FROM WHICH APPEALED: PIKE COUNTY CIRCUIT COURT HON. MICHAEL M. TAYLOR

          TRIAL COURT ATTORNEYS: MACY DERALD HANSON DENNIS L. HORN SHIRLEY PAYNE W. BRADY KELLEMS JOSEPH PRESTON DURR ALFRED L. FELDER

          ATTORNEY FOR APPELLANTS: MACY DERALD HANSON

          ATTORNEYS FOR APPELLEES: DENNIS L. HORN W. BRADY KELLEMS SHIRLEY PAYNE

          BEFORE RANDOLPH, C.J., MAXWELL AND BEAM, JJ.

          BEAM, JUSTICE

         ¶1. This appeal stems from a breach-of-contract and tort case in the Pike County Circuit Court. John and Cindy Henderson filed suit against Copper Ridge Homes ("Copper Ridge") and First Bank regarding the construction of their new home in Magnolia, Mississippi. However, the case quickly spiraled into foreclosure proceedings upon the Hendersons' defaulting on their loan with First Bank. The judge granted First Bank's motion for judicial foreclosure.

         ¶2. After that, the Hendersons unsuccessfully moved multiple times to amend their complaint to add wrongful foreclosure. The judge granted Copper Ridge's and First Bank's motions for summary judgment on the Hendersons' claims, finding that the claims, which arose from the alleged faulty construction of the house traveled with the title to the property. Because the Hendersons no longer owned any interest in the house and land, the judge found that they had lost their right to seek damages.

         ¶3. On appeal, the Hendersons argue that the trial court erred by granting First Bank a judicial foreclosure, by granting Copper Ridge's and First Bank's motions for summary judgment, and by denying their motions for leave to amend and to add wrongful foreclosure to their complaint. Finding that the trial court erred in granting Copper Ridge's and First Bank's post-foreclosure motions for dismissal of the Hendersons' claims, the Court affirms the grant of judicial foreclosure, reverses the grant of summary judgment to both parties, and remands the case to the trial court for determination of the Hendersons' claims.

         FACTS AND PROCEDURAL HISTORY

         ¶4. The Hendersons and Copper Ridge entered into a new-home construction contract on May 9, 2014, in Magnolia, Mississippi. Shortly thereafter, on May 24, 2014, the Hendersons contracted with First Bank to finance the construction of their new home.

         ¶5. The Hendersons' complaint stems from a dispute over the price of the home and whether the contract was a fixed-price or cost-plus contract.[1] The Hendersons contend that the contract was a fixed-price contract for $320, 000, but Copper Ridge contends it was a cost-plus contract.

         ¶6. The construction contract contained a provision regarding the changes to the scope of work: any changes to be made had to be in writing. The record contains no evidence of any change orders. Yet the Hendersons received two invoices from Copper Ridge for overage charges in the amounts of $24, 386.07 and $29, 829.44.

         ¶7. The Hendersons further allege that First Bank, which exercised sole and exclusive control over the disbursements, had paid approximately $316, 000 to Copper Ridge, leaving approximately $4, 000 to complete the house under the fixed-price contract. John Henderson was asked to sign three backdated draw disbursements for First Bank. However, he refused to sign a final disbursement because the house was not close to being completed. ¶8. Dissatisfied with Copper Ridge and First Bank, the Hendersons filed their complaint on April 30, 2015, alleging breach-of-contract and tort claims against both parties. Shortly after filing their complaint, the Hendersons did not make their payment on May 23, 2015, as required by the promissory note. First Bank amended its initial answer on October 1, 2015, to include a counterclaim for judicial foreclosure. In response, the Hendersons filed a motion for leave to amend their complaint so they could add wrongful foreclosure, fraud, and breach of the duty of good faith and fair dealing to their complaint.

         ¶9. Because the foreclosure had not occurred at that time, the judge disallowed adding wrongful foreclosure, but he allowed the Hendersons to amend their complaint to include fraud and breach of the duty of good faith and fair dealing. At the summary-judgment hearing on judicial foreclosure, the trial court found that the Hendersons had not produced sufficient evidence to rebut the foreclosure; therefore, the judge granted First Bank's motion for an order of judicial foreclosure.

         ¶10. Following the judicial foreclosure, the Hendersons sought leave to amend their complaint to add wrongful foreclosure a second time. Simultaneously, Copper Ridge and First Bank sought to dismiss the Hendersons' claims altogether. The trial court denied the Hendersons' motion for leave to amend and granted Copper Ridge's and First Bank's post-foreclosure summary-judgment motions, finding that the claims arising out of the alleged faulty construction of the house traveled with the title to the property. In view of the foreclosure, the trial court found that because the Hendersons no longer owned any interest in the house and land, they had lost their right to seek damages.

         ¶11. A third time, the Hendersons moved for leave to amend their complaint to add wrongful foreclosure, and the trial judge denied the motion. Aggrieved, the Hendersons appeal the orders entered by the trial court.

         LAW ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.