4021 Iowa, LLC v. K&A Delmar Property, LLC

CourtMissouri Court of Appeals
DecidedJanuary 21, 2025
DocketED112681
StatusPublished

This text of 4021 Iowa, LLC v. K&A Delmar Property, LLC (4021 Iowa, LLC v. K&A Delmar Property, LLC) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
4021 Iowa, LLC v. K&A Delmar Property, LLC, (Mo. Ct. App. 2025).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION TWO

4021 IOWA, LLC, ) No. ED112681 ) Respondent, ) Appeal from the Circuit Court ) of the City of St. Louis vs. ) Cause No. 2122-CC00025-01 ) K&A DELMAR PROPERTY, LLC, ET AL., ) Honorable Elizabeth B. Hogan ) Appellants. ) FILED: January 21, 2025

Opinion

K&A Delmar Property, LLC (K&A), Daggett Property, LLC, Joseph K. Robbins, and

Justin M. Hollensteiner (collectively, Appellants) appeal from the circuit court’s reinstatement of

default judgment in favor of Respondent 4021 Iowa, LLC (Iowa). Appellants raise three points

on appeal. Point One argues the circuit court lacked jurisdiction to award damages in excess of

what Iowa pleaded in its petition. Point Two contends the circuit court abused its discretion by

awarding attorneys’ fees that were not supported by sufficient evidence. Finally, Point Three

maintains the circuit court erred by determining post-judgment interest accrued from the date the

default judgment was originally entered because a superseding appeal required revising the

accrual date. Because any issues with the scope of the pleaded damages did not divest the circuit

court of jurisdiction over the case, we deny Point One. Appellants’ argument that Iowa produced

insufficient evidence in support of its request for additionally incurred attorneys’ fees does not warrant overturning the award in light of the circuit court’s expertise in determining the

reasonableness of such fees. Therefore, we deny Point Two. Because the circuit court properly

found post-judgment interest accrued from the date the default judgment was originally entered,

we deny Point Three. Accordingly, we affirm the circuit court’s judgment.

Background

Iowa is the assignee and successor in interest to Blackline Real Estate, LLC (Blackline).

On December 17, 2018, Blackline entered into a contract with K&A to purchase a commercial

property. After the sale fell through, Iowa filed a petition against Appellants, alleging breach of

contract, fraudulent misrepresentation, unlawful conspiracy, and alter ego.

Appellants failed to file an amended answer as directed by the circuit court, and Iowa

subsequently secured a default judgment against Appellants on March 8, 2022. In support of the

damages award, pursuant to the contract, Iowa submitted evidence of special damages and

attorneys’ fees via affidavits.

Nearly one year after the default judgment was entered, Appellants moved to set it aside

on the grounds that the damages exceeded the pleadings, which the circuit court granted. Iowa

then appealed, and this Court reversed and remanded for the circuit court to reinstate the default

judgment because Appellants’ motion to set it aside was untimely filed. 4021 Iowa, LLC v. K&A

Delmar Prop., LLC, 681 S.W.3d 309 (Mo. App. E.D. 2023). This Court noted the circuit court

on remand did not need to hold a hearing on damages, as Appellants failed to preserve their

challenge through their untimely motion. Nevertheless, the Court directed the circuit court to

find the source of an apparent summation error in the damages award and correct it when

reinstating the default judgment.

On remand, Iowa moved for the circuit court to reinstate the default judgment consistent

with this Court’s mandate. Iowa submitted affidavits in support of $67,338.08 in additional 2 attorneys’ fees for opposing the motion to set aside, prevailing on appeal, and moving for the

default judgment to be reinstated. Appellants attempted to reopen evidence as to damages and

contested the amount of damages and attorneys’ fees, arguing that actual damages should be

limited to what was pleaded in Iowa’s petition and that Iowa’s requested attorneys’ fees

following the first appeal were not warranted. Following a hearing, the circuit court reinstated

the default judgment on April 16, 2024. The circuit court adjusted the damages award to

$245,216.46 in actual damages, reflecting its correction of the apparent summation error. The

circuit court also awarded Iowa its requested additional attorneys’ fees, $70 in costs as directed

by this Court, plus interest and court costs. The judgment stated that $44,138.96 in post-

judgment interest accrued since the entry of default judgment on March 8, 2022. This appeal

follows.

Discussion

I. Point One—The Circuit Court’s Jurisdiction Is Not Implicated In Its Award of

Damages.

Appellants assert the trial court lacked jurisdiction to enter judgment awarding damages

exceeding the amount pleaded in the petition. Appellants’ jurisdictional argument, which must

precede any other inquiry, is not well taken.

There are only two categories of jurisdiction: personal and subject matter. Ball v. Ball,

638 S.W.3d 543, 549 (Mo. App. E.D. 2021) (citing J.C.W. ex rel. Webb v. Wyciskalla, 275

S.W.3d 249, 252 (Mo. banc 2009)). Neither are implicated here. Over a decade ago, the

Supreme Court clarified that the nebulous third concept of “jurisdictional competence” is not

recognized in our state. Webb, 275 S.W.3d at 254; accord State ex rel. Robison v. Lindley-

Myers, 551 S.W.3d 468, 473 (Mo. banc 2018) (rejecting “the outdated concept of ‘jurisdictional

competence’”); State ex rel. Zahnd v. Van Amburg, 533 S.W.3d 227, 231 (Mo. banc 2017) 3 (reiterating the Court has “roundly rejected” the “antiquated concept of ‘jurisdictional

competence’”). Arguments in this category include precisely the argument raised by Appellants:

that the circuit court “has proceeded ‘beyond the allegations of the pleadings and the prayer for

relief.’” Webb, 275 S.W.3d at 254 (quoting In re Marriage of Hendrix, 183 S.W.3d 582, 588

(Mo. banc 2006)). Such arguments “do not question the court’s subject matter or personal

jurisdiction and really go to the court’s authority to render a particular judgment in a particular

case.” Id. (citing Hendrix, 183 S.W.3d at 588).

Where “[t]he present case is a civil case . . . the circuit court has subject matter

jurisdiction, and, thus, has the authority to hear the dispute.” Karrenbrock Constr., Inc. v. Saab

Auto Sales & Leasing, Inc., 540 S.W.3d 899, 902 (Mo. App. E.D. 2018) (quoting Webb, 275

S.W.3d at 254). The circuit court here had jurisdiction over the civil matter following remand.

See id.; Allen v. Atain Specialty Ins. Co., 585 S.W.3d 289, 293–94 (Mo. App. W.D. 2019)

(quoting Durwood v. Dubinsky, 361 S.W.2d 779, 783 (Mo. 1962) (explaining an appellate

court’s mandate confers authority and jurisdiction back to the lower court “to take such steps as

are directed”)). The circuit court was not divested of jurisdiction due to the scope of petition’s

plea for damages. See Karrenbrock Constr., 540 S.W.3d at 902 (citing Webb, 275 S.W.3d at

254); see also, e.g., Puetz-Anderson v. Puetz, 629 S.W.3d 95, 98 (Mo. App. E.D. 2021)

(dismissing a point on appeal alleging a trial court lacked jurisdiction due to improper venue

because “venue and subject matter jurisdiction are distinct concepts, and improper venue, while

erroneous, does not divest a trial court of jurisdiction”).

In their reply brief, Appellants attempt to course-correct by reframing their argument as

one challenging the circuit court’s authority rather than its ability to have entered judgment.

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