Associate Engineering Co. v. Webbe

795 S.W.2d 606, 1990 Mo. App. LEXIS 1303, 1990 WL 125162
CourtMissouri Court of Appeals
DecidedAugust 28, 1990
Docket57162
StatusPublished
Cited by14 cases

This text of 795 S.W.2d 606 (Associate Engineering Co. v. Webbe) 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
Associate Engineering Co. v. Webbe, 795 S.W.2d 606, 1990 Mo. App. LEXIS 1303, 1990 WL 125162 (Mo. Ct. App. 1990).

Opinion

GARY M. GAERTNER, Presiding Judge.

Appellant, Associate Engineering Company, appeals from a final judgment of the Circuit Court for the City of St. Louis denying its claim for damages arising out of work performed at the Gateway Hotel in 1984. We affirm.

Char-Sor, Inc., was a Missouri corporation, originally incorporated in 1977 and dissolved on February 11, 1985. At the time the articles of dissolution were filed, there were four individuals listed as directors of Char-Sor, Inc.: Sorkis Webbe, Sr.; Sorkis Webbe, Jr.; and the respondents, Peter Webbe and Victor Sayyah. One of the functions of Char-Sor, Inc. was to operate the Gateway Hotel. This was done in conjunction with Sorkis Webbe, Sr. who had a triple-net lease with the owner of the Gateway Hotel, the Say-Web partnership. The partners of the Say-Web partnership were Victor Sayyah and Peter Webbe. Under the terms of the lease, the Say-Web partnership was to be paid $3,000.00 per month in rent for the Gateway Hotel and Char-Sor, Inc. and Sorkis Webbe, Sr. were to operate the hotel, be liable for all necessary repairs, and keep all resulting profits or losses.

In the fall of 1984, Sorkis Webbe, Sr., and the appellant entered into a contract for the installation of a heating and cooling piping system at the Gateway Hotel. Sork-is Webbe, Sr. signed these contracts in an individual capacity; there is no indication of his signing them on behalf of Char-Sor, Inc. or the Say-Web partnership. There is also no evidence that the respondents were involved in the negotiation of the contracts or were looked to for payment at the time the contracts were entered into.

The appellant completed the work on the Gateway Hotel in December of 1984 and submitted a bill on January 2, 1985, for $20,116.00. This bill was sent to Sorkis Webbe, Sr. An additional bill was sent on January 9, 1985 — also to Sorkis Webbe, Sr. The total amount owed on the contracts was $41,058.15.

On February 11, 1985, Char-Sor, Inc. filed articles of dissolution with the Secretary of State. The articles of liquidation were signed by Sorkis Webbe, Jr. and filed on March 7, 1985. Article III of the articles of liquidation states “all debts, obligations and liabilities of the corporation have been paid and discharged, or adequate provision has been made therefor.”

Sorkis Webbe, Sr. continued to operate the Gateway Hotel until his death in early May in 1985. After Sorkis Webbe, Sr.'s death, and after Sorkis Webbe, Jr. was no *608 longer able to run the hotel, 1 the Say-Web partnership took immediate steps to create the Gateway Hotel Corporation to manage the hotel.

In 1986, after repeated failure to collect on his contract with Sorkis Webbe, Sr., appellant met with respondent Sayyah to discuss the debt. Sayyah failed to make any payments.

On September 11, 1987, appellant initiated this suit seeking recovery in quantum meruit for labor and materials. Appellant also sought to impose a constructive trust upon the personal assets of the respondents because they were involved in the “unlawful dissolution and liquidation of Char-Sor.” A bench trial was held on February 21, 1989, and on July 5, 1989, the trial court denied appellant’s claims. This appeal followed.

We initially note the standard of review in this case. In bench tried cases, this court will sustain the judgment of the trial court unless there is no substantial evidence to support it, unless it is against the weight of the evidence, unless it erroneously declares the law, or unless it erroneously applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976).

Quantum meruit or unjust enrichment occurs where a benefit is conferred upon a person under circumstances in which retention by him of that benefit without paying its reasonable value would be unjust. Erslon v. Vee-Jay Cement Contr. Co., 728 S.W.2d 711, 713 (Mo.App., E.D.1987). The principal of unjust enrichment has given rise to the doctrine of quasi contract, also known as a contract implied in law, as a theory of recovery. Id. Courts generally recognize that the essential elements of quasi contract are: (1) a benefit conferred upon the defendant by the plaintiff; (2) appreciation by the defendant of the fact of such benefit; and (3) acceptance and retention by the defendant of that benefit under circumstances in which retention without payment would be inequitable. Id. This last requirement— that the enrichment of the defendant be unjust — is the most significant and, indeed, is the most difficult of all the elements to apply.

Neither party to this appeal has provided this court with cases analogous to the present one, relying, instead, on more general applications of the law. This court has found several cases, however, disposi-tive of this issue.

In Puttkammer v. Minth, 83 Wis.2d 686, 266 N.W.2d 361 (1978), the Supreme Court of Wisconsin was presented with facts very similar to our own. In Puttkammer, Minth was the owner of a supper club which he leased to a third party. Puttkam-mer, at the request of the third party, resurfaced the access and surface areas of the supper club with the knowledge of Minth “who stood by and acquiesced” in its completion. Puttkammer at 362. When the third party failed to pay for the work and was adjudged bankrupt, Puttkamer sued Minth in quantum meruit. The court stated that

this case is representative of the usual case in which the owner has no part in initiating the work and is merely a passive beneficiary of the work performed at the instance of another. The unjust enrichment or restitution claim is asserted by one who did the work, and produced an incidental gain to the owner, by merely performing his contract with another and is now dissatisfied because the return promised under the contract is not forthcoming. In a sense it can be said that the contractor, at least to the extent of the gain, seeks to make the owner an insurer of the contract entered into by the defaulting procurer. The fact that the owner knew of the work, acquiesced in its performance and voiced no disapproval of the work, does not make the owner liable. There is no allegation in the instant complaint from which it can reasonably be inferred that the work was done by authority of the owner.

*609 Id. 266 N.W.2d at 365. [Footnote omitted.] The court further recognized the general rule that:

[A] landlord or lessee [sic] cannot be held liable for materials furnished and labor performed by plaintiff on the leased premises where plaintiff entered into the undertaking looking only to the tenant or lessee for payment in the absence of anything to show that the landlord ordered the work, or authorized anyone to have it done, or ratified the work after it was done, and notwithstanding the landlord ultimately benefits from the work that was done by reason of his ownership of the property. 2

Id.

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Bluebook (online)
795 S.W.2d 606, 1990 Mo. App. LEXIS 1303, 1990 WL 125162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associate-engineering-co-v-webbe-moctapp-1990.