Jackson Motor Speedway, Inc. v. Ford

Jackson Motor Speedway, Inc. v. Ford

Opinion

 [*780]  NATURE OF THE CASE: CIVIL - REAL PROPERTY

EN BANC.

ISHEE, J., FOR THE COURT:

P1. The Appellees, D.L. Ford, James M. Ford, and The Ford Company ("Fords"), filed suit against the Appellant, Jackson Motor Speedway ("JMS"), seeking damages and partial rescission of an agreement for the sale and purchase of assets ("agreement") previously executed by the parties. After trial on the merits, the Chancery Court of the First Judicial District of Hinds County granted judgment in favor of the Fords. From that decision JMS timely appeals.

FACTS

P2.  [**2]  On November 10, 1995, the Fords entered into an agreement for sale and purchase of assets with JMS. Within the agreement, the Fords conveyed to JMS buildings, equipment, and other property which the Fords had previously owned and operated as a quarter mile dirt track under the name "Jax Tracks." Because the property being conveyed was landlocked, the agreement also necessarily included the grant of an easement across certain real property, also owned by the Fords. The easement granted to JMS crosses railroad tracks owned by the Illinois Central Railroad Company ("ICRC").

P3. While under the operation of JMS, there have been at least three train/vehicular accidents on the easement. At least one of these accidents is the subject matter of a pending lawsuit against JMS. On April 12, 2002, the Fords notified JMS by letter that they were unilaterally terminating a portion of the easement due to JMS's failure to use and maintain a portion of the easement. On April 17, 2002, the Ford's filed their complaint for breach of agreement and discharge of performance, for temporary restraining order without notice, preliminary injunctive relief, and other relief. Pursuant to Rule 56(b) of the Mississippi [**3]  Rules of Civil Procedure, the chancery court entered a temporary restraining order barring JMS from conducting races until April 30, 2002.

P4. On May 1, 2002, the Fords and JMS entered into an agreed order that allowed JMS to continue to use the easement and stated (1) that JMS would have two law enforcement personnel present and directing traffic at the railroad crossing on the easement; (2) that there be two million dollars of liability insurance covering the facility; and (3) that JMS agree to indemnify and defend the Fords for any liability occurring from the use of the easement for  [*781]  racing purposes. On May 8, 2002, JMS entered into an agreed preliminary injunction which allowed JMS to use and operate the raceway and all easements until a trial upon the merits or, upon motion, by further order of the chancery court.

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