Limehouse v. Hulsey

Lawton Limehouse, Sr. ("Father") and Lawton Limehouse, Jr. ("Son") each sued attorney Paul Hulsey, and his law practice (collectively, "Hulsey") for defamation arising out of statements Hulsey made about L&L Services, LLC ("L&L"), a staffing agency they owned. Local newspapers published articles concerning housing raids performed on homes rented by L&L and fines assessed for overcrowding, inadequate heating and plumbing, and running illegal boarding houses. Hulsey filed a class action lawsuit in federal court on behalf of former employees of L&L, alleging violations of the RICO Act and other state and federal laws. One article quoted Hulsey as stating that L&L engaged in a "classic racketeering scheme . . . just like Tony Soprano." Neither Father nor Son was mentioned by name in the article. The case was moved to federal court based on the RICO claim; the federal court remanded the case back to the state court on the ground it lacked federal question jurisdiction over the issues presented. After the remand, the state court clerk of court entered a default against Hulsey. Following a damages hearing, a jury awarded Father $2.39 million in actual damages and $5 million in punitive damages. While the appeal in Father's case was pending, a damages hearing was held for Son's case. A jury awarded Son $1 million in actual damages and $2.6 million in punitive damages. Hulsey appealed both judgments. Upon review of the matter, the Supreme Court found that the state court proceedings were void as the lack of a certified remand order precluded the state court from resuming jurisdiction over the cases. The cases were remanded back to the circuit court to start over from the procedural point at which the state court received a certified remand order from the federal court. View "Limehouse v. Hulsey" on Justia Law