Entente Mineral Co. v. Parker

956 F.2d 524 (1992)

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Entente Mineral Co. v. Parker

United States Court of Appeals for the Fifth Circuit
956 F.2d 524 (1992)

RW

Facts

Entente Mineral Company (Entente) (plaintiff) drafted a contract to buy McKinley Young’s land interest for $25,000. At the advice of his banker, Young consulted the Barrett, Barrett, Barrett, and Patton law firm (firm) (defendant) for advice. The firm assigned the matter to Derek Parker (defendant), one of the firm’s partners, who met with Young and agreed to review the contract overnight. Parker researched Young’s land and found that it was potentially worth more than $25,000. The next day, Parker offered $27,000 for Young’s land interest. Young accepted the offer. Entente filed a federal diversity suit against Parker and the firm for damages. Based on its interpretation of the applicable Mississippi law, the district court reasoned that the firm could not be held liable for Parker’s interference with Entente’s business relations because Parker’s purchase of Young’s land interest was outside the scope of Parker’s employment. Entente appealed to the Fifth Circuit.

Rule of Law

Issue

Holding and Reasoning (Thornberry, J.)

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