Two years of litigation went for naught as the Mississippi Supreme Court threw out all orders in the Mockingbird investor lawsuit as it ruled Hinds County Circuit Judge Debra Gibbs improperly transferred the case to another judge last month.
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| This image is a use of satire and parody. |
Mockingbird Cannabis is a medical marijuana company with facilities in Raymond and Clinton. The company recruited Mississippi investors. However, the company woefully under-performed expectations. A group of investors sued several company official and a board member (See synopsis posted below). The lawsuit accuses the defendants of looting the company while making sweetheart deals among themselves.*
The first lawsuit was filed on July 3, 2024 in Hinds County Circuit Court but was never served on the defendants. The case was assigned to Circuit Judge Debra Gibbs. Defendant Samuel Millette, III (No relation to Francois) filed a motion to compel arbitration, arguing the plaintiffs signed an operating agreement that required arbitration to settle disputes. Mr. Millette is a member of the Board of Directors. The plaintiffs filed an amended complaint on September 18. The Court approved the filing of the amended complaint.
The case was assigned to Hinds County Circuit Judge Debra Gibbs. However, Special Circuit Judge assumed control of the case and started issuing orders on October 2, 2024 when he gave the plaintiffs permission to file an amended complaint. Judge Ford issued several more orders. There is just one problem. Judge Gibbs never recused herself nor did she formally reassign the case.
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Mr. Millette saw his opportunity and pounced by appealing to the Mississippi Supreme Court. The appeal states:
Petitioner Samuel Martin Millette III (""Millette"") seeks permission to appeal an interlocutory Order of the Hinds County Circuit Court reflecting that Special Appointed Judge Barry Ford assumed jurisdiction over the case below without authority under any Special Judge Appointment Order and without any recorded order of reassignment from the originally assigned trial judge. Further, the Order at issue (granting the Plaintiffs' motion for leave to file an amended complaint) was entered by Judge Ford during the pendency of Millette's motion to compel arbitration, impliedly denying Millette's Motion to Stay, in violation of this Court's mandate that ""all proceedings"" are suspended pending resolution of the arbitration issue. These procedural and jurisdictional infirmities should be reviewed and corrected.
The appeal exposed a dirty little secret of the Hinds County Circuit Court. The Mississippi Supreme Court appointed James Bell and Barry Ford as Special Circuit Judges to assist Circuit Judge Debra Gibbs with her docket several years ago. Judge Gibb's caseload is strewn with cases assigned to her that contain orders signed by Judges Bell and Ford with no notice of transfer or recusal.
Justice Kenny Griffis authored the unanimous opinion. The Justice stated the issue was whether Judge Ford had the authority to "execute the October 2, 2024 order" granting the plaintiff's motion for leave to amend the complaint. The opinion notes Chief Justice Michael Randolph appointed Judge Ford as a Special Circuit Judge in Hinds COunty in February 2024. However, Justice Griffis stated the Special Judge can only serve on a temporary basis.
The plaintiffs argued the Supreme Court gave Judge Ford the authority to hear the case. Justice Griffis said not so fast, my friend, holding:
the February 21, 2024 order did not specifically list the cases to be reassigned to or overseen by Judge Ford. Instead, the order specifically stated that it applied to cases “currently pending” on February 21. The Chief Justice’s statutory authority under Section 9-1-105(2) specifically provides: “[t]he Chief Justice, in his discretion, may appoint the special judge to hear particular cases, a particular type of case, or a particular portion of the court’s docket.” § 9-1-105(2) (emphasis added). The June 27, 2023 and November 20, 2023 orders appointed Judge Ford to hear “particular cases,” while the February 21, 2024 order appointed Judge Ford to hear “a particular portion of the court’s docket”—those cases that were then pending in the court.
Translation: The Supreme Court ordered to help Judge Gibbs with active cases filed on or before February 21, 2024. Judge Ford's order in the Mockingbird case does not apply since the complaint was not filed until later in the year.
Judge Griffis lowered the boom on the alleged victims:
Accordingly, we find that Judge Ford had no authority to enter the order that granted the plaintiffs leave to amend the complaint or to consider any motions filed in this case. Therefore, we reverse and remand this case for further proceedings before the properly assigned circuit-court judge.
Thus the case bounces back to Judge Gibbs and the clock is reset to zero.
Attorney Allyson Mills represents the plaintiffs while Stephen Montagnet represents Millette.
Kingfish note: So the case starts all over again because Judge Gibbs did not transfer the case. It appears under the Court's jurisprudence, Judge Gibbs may not be able to transfer the case. Who wins? The lawyers.
Question for the lawyers: Does this mean if Judge Ford took on any cases filed after February 21, 2024, his actions are invalid?
Mockingbird
recruited Mississippi investors. The Mockingbird Crew "encouraged"
investors to set up LLC's and invest through them. The plaintiffs
followed the instructions. The complaint states the defendants pooled
the money into a larger LLC. The lawsuit called the arrangement "a
pyramid." The company established facilities in Raymond and Clinton.
The complaint claims although Millette told investors the decision was only a speed bump, Patterson eyed getting a medical marijuana license and facility in Missouri. Thompson allegedly told Patterson he could not use the investors' money for such a purpose. The complaint claims Patterson removed Thompson from the board of directors.
Patterson, Wilkin, Bunch, and Croft set up shell companies in Missouri, funding them with $4 million allegedly withdrawn from the Mockingbird (Mississippi) investments, and obtained a license and facility in Missouri. They named the facility "Navarro Farms."
The Gang of Four allegedly offered shares of Navarro Farms to the Mississippi investors without disclosing they were already funding the operation. The complaint accuses the Gang of Four of engaging in more shenanigans:
* Investors funds were allegedly used as personal slush funds. The complaint charges Mockingbird paid $2 million in management fees and another $1.5 million in travel expenses in 2021 and 2022 to a number of officials and directors. No records of the compensation were ever produced despite requests from investors, if the complaint is to be believed.
* Patterson and Wilkin allegedly diverted $7 million from Navarro Farms to buy out partners in another operation. The facts of said buyouts are not known as the Defendants (allegedly) would not produce any records.
* The complaint charges Croft shirked her duty as company lawyer to comply with state and federal law as well as any contracts. She stands accused of allowing Patterson to engage in unlawful activity or expose Mockingbird to liability. She did not ensure the company kept adequate financial records while investors money was "misappropriated."
*
The 160,000 square foot Raymond facility was valued at $25 million.
However, Patterson sold it to Gaylon Patterson of the Patterson Family
Trust in Oklahoma for $10 million. Gaylon is Clint's uncle. The
complaint claims Gaylon, Gary Patterson, and Elizabeth Patterson are
members of the trust. Gary is Clint's firs cousin. Elizabeth is
married to Gary.
The
trust leased the facility back to Mockingbird at $100,000 per month for
10 years. Investors claim they had no clue the transaction took
place.
The plaintiffs claim Millette and Brown consented to the sale as members of the Board. However, they told investors the facility was a fixed asset, not leased property. The complaint states an April 2024 update said the Raymond facility was a company asset while never admitting it was no longer owned by the company. The investors asked for records of the transaction but the defendants allegedly would not provide them.
* The complaint claims Josennhans admitted $8.3 million "had been misappropriated. Wilkin allegedly fessed up to loaning investors' funds to fund operations in other states while lying he divested himself of all Mockingbird and Navarro Farms holdings. However, filings at the Secretary of State's office state Wilkin was still the manager.
*
The plaintiffs requested the following records but to no avail: all
operating agreements, an organization chart, names of Board members as
well as their terms, identities of all corporate officials as well as
their starting and ending dates of employment, minutes of all meetings
of the Boards of Directors, and a schedule of all who hold "units or
interests."
The plaintiffs claim the true state of Mockingbird and Navarro Farm's assets are unknown. The following passage says it all:
The true state of Mockingbird's and Navarro Farm's assets today is unkown. but Plaintiff's losses are clear: There is nothing to show for their investments - Defendants can not even tell them who owns what today - and Mockingbird, which raised as much as $32,000,000 has nothing.
* The lawsuit takes full aim at the Jackson law firm of Cosmich, Simmons, & Brown. It alleges John Cosmich and Brown's brother served on the Navarro Farms Board of Directors. Brown and partner Warchol allegedly solicited investments for "Mississippi Grow" and "Missouri Grow."
Cosmich
lawyers stand accused of helping investors establish LLC's while
assisting them with background checks and disclosure forms.
The
plaintiffs claim Cosmich, Simmons, & Brown PLLC is a "substantial
investor" in Mockingbird. Cosmich is allegedly counsel to Mockingbird.
* Plaintiffs and their LLC's:
Marcus Burger: NLWH, LLC
Nathan McHardy: Red Work Capital, LLC, Fire Wheel, LLC. Disclosure: McHardy's Briarwood Liquor Store is an advertiser on this website.
Winston Thompson: Cropshare, LLC
Tonyatta Hairston: Felix Allen, LLC
Brandon Baggett: BBG Investments, LLC, Salo Investments, LLC
John Burns: High Times, LLC, High Times Two, LLC
Kimberly Hardy: Generational Wealth Investments, LLC
Palo Giscombe & CHristian Groff: Petit Bois 68, LLC
Zachary Harvey: 2901 Investments, LLC
Patrick Taylor: DFT Capital, LLC
Defendants
Patterson is CEO of Mockingbird, Navarro Farms, and Navarro Farms Vandalia Oklahoma resident.
Wilkin is COO of Mockingbird and Chairman of the Board of Navarro Farms. Oklahoma resident
Bunch is CFO of Mockingbird. Oklahoma resident
Croft is a Madison attorney and was Chief Legal Officer of Mockingbird.
Millette is a Director of Mockingbird companies
Brown is manager of Navarro Farms and several Mississippi LLC's. He is a partner in the Jackson law firm Cosmich, Simmons, & Brown.
24 comments:
The statute that allows this is all about the Benjamins, not about "medicine." Lots of palm greasing got this passed.
Seems like some people should be in jail.
Marcus Burger was a 16 year old track star when, at about 40, I raced him at soccer practice the length of a soccer field and back. I barely won.
Recall!!
Gibbs is incompetent and everyone knows it. Ford does all her work because she has to be coddled and protected from life itself
All right, stick to the subject of the post, not debating whether MM should be legal or how evil it is.
It's always been about the kickbacks. Always will be.
Not really a "Raymond facility". It is on Springridge Rd. just outside the Clinton city limits. About seven miles from Raymond.
Thank you for your attention to this matter.
No one even bothered running against the highly incompetent Gibbs. Hinds County shall get what it deserves.
The legal address is "1577 Springridge Rd, Raymond, MS 39154 -
Thank you for your undivided attention to this matter.
Well the issue - are plaintiffs claims subject to arbitration? As I recall it’s the unlicensed sale of securities that’s the focus of Mills claims?. I don’t think that’s arbitrable imho. But who knows.
@11:00am - Gibbs certainly won’t know
@10:47 PM ZIP Code city names do not follow municipal boundaries. This is no more in Raymond than Castlewoods is in Brandon. Thank you for your incredibly undivided attention to this matter.
Mockingbird has a cultivation facility on Parsons Road in Raymond.
Some people want to be a judge without doing the work.
Parsons Rd. is much closer to Byram or Terry than it is to Raymond.
Hinds County ... A World of Difference ... and A Very Special Place!
Does the Supreme Court actually expect Gibbs to work?
There are at least four judges on the Hinds County Circuit and Chancery bench who want to be judges but don't want to work. Even when they do work they are fairly incompetent. Sad.
It's in the county, yall. IN. THE. COUNTY.
the obsession with Hinds County Circuit court judges is laughable, similar to your nickname, you fish through and seemingly omit reversals that happen in neighboring counties.. because there are many!
I live near the Parsons Road facility. I understood that Mockingbird sold it several years ago and no longer owns it. It was a successful family-owned plant nursery for decades until the owners decided to retire and sold it to Mockingbird. It never met the physical/building/security requirements for a pot farm. The only thing I saw Mockingbird do there was to put a fence around the place.
All I can say is that a sucker is born every minute and "medical marijuana' is for suckers.
Gibbs is useless as a Judge. She is getting paid for sitting and doing nothing.
That's now under a holding company from Texas. Connected to them or sold? The property looked abandoned last time I went by there.
Sounds like another timber deal to me!
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