Opinion ID: 1811432
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: The issue raised by this appeal is whether corporate directors are personally liable when the corporate manager of an agricultural grain warehouse wrongfully converts the farmers' grain and applies the proceeds to the debts of the insolvent corporation. Since the evidence against all directors sued was insufficient to demonstrate that all of them authorized, directed, or actively participated in the wrongful conversion, or that all of them had knowledge of the conversion amounting to acquiescence, or that they all breached any duty owed to the farmer plaintiffs, this Court holds that there is no liability as to the appellants here. George Turner and Robin Carter were unpaid corporate directors of South Central Mississippi Farmers, Inc., a grain warehouse. Two farmers, Howard Wilson and Fred James, sued six of the directors in the Circuit Court of Smith County for wrongful conversion of their soybeans and received a $45,589.81 judgment against George Turner and Robin Carter. The third director, G.A. Henderson, against whom judgment was rendered, did not appeal. Turner and Carter present two issues for our consideration. First, they contend the trial court erred in submitting jury instructions which articulated no standard of care or duty owed to creditors of a corporation by the corporate directors for tortious acts committed by the corporation or its employees. Second, Turner and Carter assail the sufficiency of the evidence establishing their individual liability as corporate directors for the tortious acts of James Overby, their general manager. This Court holds that the trial court should have granted a directed verdict for two of the three directors, the appellants Carter and Turner, on the insufficiency of the evidence as to these two appellants.