Assurance General Contracting, LLC v. Helal Ekramuddin, Respondents/Cross-Appellants.

Missouri Court of Appeals·Decided April 14, 2020·No. ED107390·Published

Opinion

In the Missouri Court of Appeals Eastern District

DIVISION ONE

ASSURANCE GENERAL CONTRACTING, LLC, ) No. ED107390 )

Appellant, ) Appeal from the Circuit Court ) of St. Louis County vs. )

) Honorable Ellen H. Ribaudo HELAL EKRAMUDDIN, ET AL., )

)

Respondents/Cross-Appellants. ) Filed: April 14, 2020

Assurance General Contracting, LLC, the plaintiff in this case, (“AGC/Appellant”)

appeals, and HK Internal Medicine Associates, LLC (“Respondent” or “HK”) cross-appeals, from the trial court’s amended judgment, entered after a jury verdict awarding no money to AGC/Appellant but the trial court awarding pre-judgment interest to AGC/Appellant in the amount of $6,894.24. We affirm in part and reverse the award of pre-judgment interest.

I. Background

Respondent HK owns an internal medicine office building located at 2870 Netherton Drive, St. Louis, Missouri 63136 (“the Building”). Dr. Helal Ekramuddin (“Doctor”) is a member and owner of HK and practices internal medicine in the Building. Doctor originally contacted AGC/Appellant, a general contractor, to inspect and possibly repair the Building’s leaking roof. AGC/Appellant inspected the roof and concluded that the leaking roof was caused

by hail damage. AGC/Appellant, through its principal, Ladarryl Brown (“Brown”), suggested to Doctor that the Building’s insurance company, not HK or Doctor, might be liable to pay for the repairs. Brown also suggested to Doctor that the entire roof of the Building should be replaced rather than just repaired. AGC/Appellant did not inform HK that some person or entity other than AGC/Appellant would be engaged to do the roof replacement itself.

AGC/Appellant presented a “work authorization” to Doctor by which permission was given to AGC/Appellant to communicate with American Family Insurance Company, the insurance carrier for the Building. This was to enable AGC/Appellant to be paid for its work by the ultimate source of payment, the insurance company. AGC/Appellant explained to Doctor that the insurance company for the Building would be responsible for paying for the repair work because the hail damage was covered by the insurance policy.

The first step in the repair process was to do “mitigation” work, which included drying out the inside of the Building. The repair work took a long time. Doctor and his staff voiced concerns to AGC/Appellant’s member, Brown, about the delay and the fact that the roof was still leaking even after several months of AGC/Appellant being on the job. Doctor said the repair work was taking too long with little results and ultimately asked the insurance company if a different contractor could be hired to fix the roof. The insurance company agreed and a new contractor, Atlas Roofing (“Atlas”), was approved to actually complete the roof repairs and to replace the roof with a new one. Atlas fixed the roof and found mold in the interior of the Building due to the amount of time the roof continued to leak without being repaired. Atlas engaged a mold remediation company to remove the mold.

For payment, AGC/Appellant submitted its billing directly to the insurance company, not to HK. AGC/Appellant never sent an invoice to Respondent or Doctor. The insurance company

would receive and review AGC/Appellant’s bills and send a check to Respondent without any advance notice. Once approved, the insurance company would issue a check payable jointly to Respondent and to the mortgage company who held a deed of trust on the Building. Doctor would endorse the check on behalf of Respondent and would mail the check to the mortgage company in order for the mortgage company to also endorse the check. After endorsing the check, the mortgage company would send the check back to Respondent, who would then deposit the check into Respondent’s checking account. Finally, Respondent issued a check to AGC/Appellant for payment.

At many points during the course of the parties’ relationship, Respondent was dissatisfied with the lack of work being done by AGC/Appellant and the delay in the work. Respondent therefore held onto approximately $30,000 that the insurance company had previously issued. Just before trial, Respondent, through its counsel, sent to AGC/Appellant’s counsel a check for $30,000 payable to AGC/Appellant. AGC/Appellant accepted the check without explanation of what it represented, although it was alleged that the check represented funds that came from American Family Insurance Company.

ACG/Appellant originally sued Doctor for quantum meruit, breach of contract and unjust enrichment. Shortly before trial, AGC/Appellant amended its Petition to add HK as a party defendant. HK and Doctor filed counterclaims against AGC/Appellant for breach of contract as well. A trial took place on August 27, 28, and 29, 2018. During AGC/Appellant’s case-in-chief, Brown testified about three potential other projects that AGC/Appellant was lined up to do, and that his contracting company would not be able to take them on because it was doing the roof work on the building for Respondent. Therefore, AGC/Appellant would not be able to earn a profit on those other jobs. Brown attempted to testify as to the profit and/or revenue that

AGC/Appellant would have earned if AGC/Appellant were able to perform the work on the three other projects, but Respondent objected and the trial court sustained the objections.

Counsel for AGC/Appellant admitted that there were no estimates that had even been prepared with respect to the three other projects and argued about what Brown may be able to testify about in order to lay a proper foundation to admit evidence of lost profits from the other jobs. AGC/Appellant’s counsel made an offer of proof outside of the jury’s presence by argument, but Respondent objected to the lost profits relating to the three other contracts and the trial court sustained Respondent’s objections. AGC/Appellant did not submit any other evidence or argument during its offer of proof.

After the evidence was presented at trial, AGC/Appellant decided to submit to the jury one claim for breach of contract against Respondent only and not against Doctor. This was the only claim submitted to the jury for consideration. The jury returned a verdict in favor of Respondent and against AGC/Appellant on AGC/Appellant’s breach of contract claim. The jury entered its original judgment on the verdict on September 4, 2018, awarding nothing to AGC/Appellant. AGC/Appellant filed a motion for a new trial and/or to amend the judgment, which the trial court granted in part by entering a first “Amended Judgment” dated November 29, 2018, awarding prejudgment interest against “Defendant” Respondent in the amount of $6,894.24 pursuant to Section 408.020, RSMo. This amended judgment did not specify which defendant was liable to pay the pre-judgment interest, Doctor or Respondent.

Respondent filed a motion to amend the Amended Judgment by challenging the award of pre-judgment interest in general, as well as asking the trial court to specify which “defendant” party was liable to pay the interest. On January 3, 2019, the trial court entered an “Order and Judgment” amending or clarifying the Amended Judgment of November 29 by specifying that

the trial court’s award of pre-judgment interest as expressed in the Amended Judgment was directed against Respondent only, and not against Doctor individually. The trial court otherwise denied Respondent’s motion to amend the Amended Judgment.

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Assurance General Contracting, LLC v. Helal Ekramuddin, Respondents/Cross-Appellants., (Mo. Ct. App. 2020).

Assurance General Contracting, LLC v. Helal Ekramuddin, Respondents/Cross-Appellants. (Assurance General Contracting, LLC v. Helal Ekramuddin, Respondents/Cross-Appellants.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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