Lane v. Lampkin

The Chancery Court found that Ronald Lampkin had breached his fiduciary duties to Limestone Products, Inc. (“Limestone”). Lampkin and James Oldrum Smith Jr. jointly owned and operated Limestone with a line of credit they each personally guaranteed. Upon Smith’s death and his estate’s refusal to guarantee the line of credit, Lampkin formed Delta Stone, a new corporation which operated on the same property, used the same facilities, and sold rock to the same clients to whom Limestone had sold. Lampkin sought a declaratory judgment against the estate that he was not violating his fiduciary duties to Limestone. The executors of the estate counterclaimed for lost profits and attorney’s fees. At the liability stage of the bifurcated trial, the chancellor determined that Lampkin had breached his fiduciary duty to Limestone by usurping a corporate opportunity. In the damages stage of the trial, the chancellor considered expert testimony, awarded damages, and denied the executors’ request for attorney’s fees, expert-witness fees, and punitive damages. The executors appealed and the Court of Appeals affirmed. The Mississippi Supreme Court reversed the Court of Appeals and found that the chancellor had abused his discretion in calculating the damages award. The Supreme Court remanded for the chancellor to re-evaluate damages. On remand, the chancellor reassessed the damages due to Limestone as a result of Lampkin’s breach of his fiduciary duties. The executors appeal again. After review, the Supreme Court affirmed the chancellor’s judgment on every issue except for the calculation of lost assets. Concerning the calculation of lost assets, it reversed and rendered judgment for $64,363.50. View "Lane v. Lampkin" on Justia Law