Townsend Scientific Trust v. Food Technology Investors, L.P., et al. v. Townsend Scientific Trust and John Townsend

This case stems from a business deal gone sour. This is the third time that these parties have brought identical claims against one another. In the previous versions of this suit, the cases were dismissed without prejudice. At this trial, both the plaintiff’s claims and the defendants’ counter claims and third-party claims were dismissed with prejudice based on the doctrine of laches. Upon a motion to alter or amend judgment, the trial court modified its order to dismiss all claims without prejudice based on a failure to prosecute. In this appeal, appellants ask this Court to determine (1) whether the chancery court erred when it amended its judgment with prejudice granting the appellants’ motion to dismiss based on the doctrine of laches to a judgment without prejudice based on a failure to prosecute and (2) whether the chancery court erred when it dismissed the plaintiff’s complaint sua sponte. The appellants argue that the chancery court should not have amended its judgment dismissing the defendants’ counter and third-party claims because the facts presented at trial warranted a dismissal based on the doctrine of laches. Further, the appellants argue that the trial court should not have dismissed the plaintiff’s complaint sua sponte based on the doctrine of laches because the defendants did not demonstrate at trial any undue prejudice to them. We affirm.