Home » NEWS » Banking & Finance » Justices uphold decision to throw out jury award against Trustmark

Justices uphold decision to throw out jury award against Trustmark

JACKSON — The Mississippi Supreme Court has upheld its decision to throw out a $3.72 million jury award against Trustmark National Bank in a lawsuit brought by a construction firm.

The Clarion-Ledger reports the construction company had accused the bank of improperly giving the state $1 million from the firm’s account.

In 2009, A Hinds County Circuit Court jury returned the award in favor of Roxco, Ltd. in a breach-of-contract lawsuit.

The Supreme Court initially threw out the verdict in December. On Thursday, the justices denied the company’s request to review the case again.

The case centered on whether Roxco defaulted on four state projects totaling $36.6 million. Roxco maintains it didn’t.

Trustmark contended Roxco defaulted on the state contracts, was sent default letters and its CEO admitted it knew the default letters were sent but never advised the bank or the state of anything to the contrary.

Roxco had a contract with the state in the 1990s for construction projects on college campuses.

In November 1998, a bonding company for Roxco, without authority from the company, wrongfully sent out letters incorrectly reflecting that Roxco could not complete its construction projects, according to the lawsuit.

The lawsuit said the state received four of the letters, one for each of the jobs. At the time, Roxco was actively working on the projects, the lawsuit says.

The state wrongfully stopped paying Roxco. Thereafter, the state and the bonding company prevented Roxco from completing the projects, according to Roxco’s lawsuit.

The lawsuit goes on to say the state never declared the company was in default of the contacts.

On April 12, 1999, the state treasurer demanded Trustmark redeem certain securities Roxco owned and transfer the funds into the treasurer’s state Trustmark account, the lawsuit says.

Roxco objected. The bank said it acted properly because Roxco was in default on the projects.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*