Broadband Voice, LLC d/b/a Fuse.Cloud, LLC v. Jefferson County, MississippiAnnotate this Case
Broadband Voice, LLC, d/b/a Fuse.Cloud, LLC (Fuse), appealed a Mississippi circuit court's dismissal of its complaint with prejudice. Fuse entered into four contracts with Jefferson County for telephone and internet installation and services. In January 2020, an entirely new board of supervisors took office. The County notified Fuse on November 3, 2020, that it would be terminating the contracts entered into by the 2019 board of supervisors. The termination was to take effect on November 16, 2020. Fuse notified the new board of supervisors that an early-termination fee of $116,984.02 would be imposed if the County terminated the contracts. Fuse disconnected the County’s service before the November 16, 2020 termination date, and sued when the County refused to pay the fee. On August 23, 2021, the circuit court dismissed Fuse’s complaint with prejudice, finding that there were no triable issues. Fuse argued on appeal to the Mississippi Supreme Court that it was entitled to $116,984.02 in early-termination fees from the four contracts. Finding that the early-termination-fee provision was negotiated by the prior board, and that prior board could not limit the ability of a subsequent board to terminate that provision or any other provision of the four contracts, the Supreme Court held the early-termination fee was not enforceable. The circuit court's dismissal was affirmed.