A federal court has ruled in favor of former LSU and Tampa Bay Buccaneers wide receiver Michael Clayton in the ex-NFL player’s long-running dispute with local contractor Nathian Hossley.
U.S. District Judge Brian Jackson ruled Dec. 18 that Hossley’s construction company, First Millennium Construction, owes Clayton more than $283,000—money Clayton had invested in the firm in 2009.
Clayton invested $300,000 in First Millennium Construction to help it fulfill a contract to do several home weatherization projects, according to court documents. The contract was through a U.S. Department of Energy-sponsored program called SMILE that sought to improve the energy efficiency of homes in low-income neighborhoods. First Millennium guaranteed Clayton’s investment would be repaid in full and also promised Clayton a 25% share of any profits generated from the work.
But the project generated just $25,600 in profits, according to court documents, and Clayton was unable to recoup his initial investment. He filed suit against Hossley and First Millennium in August 2013. The matter went to trial in June.
In his ruling, Jackson said while there are many ambiguities in the contract between Clayton and First Millennium Construction, it is clear that Clayton is entitled to recover his initial investment. The ruling notes, however, that First Millennium has already paid Clayton $22,849—nearly 90% of all the profits generated by the SMILE project—so Clayton is not entitled to any additional profits from the project. The ruling also finds that Hossley is not personally liable for the judgment against his company.
Because Clayton has already received $22,849 from First Millennium, Jackson ruled he is owed $283,566.
Neither Clayton’s attorney nor Hossley returned a call seeking comment in time for publication.
The suit between Clayton, who played for LSU in the early 2000s, and First Millennium is one of several lawsuits involving Hossley and First Millennium Construction detailed in a November Business Report story.
Hossley disputes most of the allegations in the story.
—Stephanie Riegel
