Barker v. Danner

903 S.W.2d 950, 1995 Mo. App. LEXIS 1436, 1995 WL 478356
CourtMissouri Court of Appeals
DecidedAugust 15, 1995
DocketWD 49814
StatusPublished
Cited by22 cases

This text of 903 S.W.2d 950 (Barker v. Danner) 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
Barker v. Danner, 903 S.W.2d 950, 1995 Mo. App. LEXIS 1436, 1995 WL 478356 (Mo. Ct. App. 1995).

Opinion

*952 ELLIS, Judge.

Plaintiffs, Donna J. Barker (Barker) and Terry Clark Construction Company (Clark), appeal from orders of the circuit court of Clay County, arising from a breach of contract action against Defendants, Shane M. Danner (Danner), Claire LaBrunerie (Claire), and Walker LaBrunerie (LaBruner-ie). Specifically, they appeal from an order by Judge David W. Russell sustaining Defendants’ Motion for Summary Judgment against Barker and an order by Judge Larry D. Harman granting Defendants’ Motion for Judgment on the Pleadings as to Clark.

The facts are set forth in detail since they are necessary to an understanding of the proceedings. On June 6, 1986, Clark Construction Co., Inc., 1 Shane Danner, and Walker LaBrunerie executed a partnership agreement, forming the Willow Lake Partnership (the “partnership”) to construct, own, and operate the Willow Lake Apartment complex. The agreement gave Clark a 60% interest and Danner and LaBrunerie a 25% interest each. That same day, Clark entered into an agreement with the partnership to serve as general contractor for the project. Both the partnership agreement and the construction contract named “Clark Construction Co., Inc.” as a party.

On August 28, 1986, an amended partnership agreement was signed by the parties substituting “Terry Clark Construction Company, a Missouri corporation” for “Clark Construction Co., Inc.” in the partnership agreement. The same substitution was made in the construction contract. The Amended Partnership Agreement stated that, “the parties were under the mistaken belief as of June 6,1986 that Clark Construction Company was a validly existing corporation when in fact said entity had not yet been formed, ...” 2 and that thereafter, “on August 21, 1986, Terry Clark Construction Company was validly incorporated as a Missouri corporation.” The record shows that the name “Terry Clark Construction Company” was used in subsequent agreements between the partners, but “Clark Construction Co., Inc.” was also used, apparently indiscriminately, by the partnership, Defendants and Clark.

On August 29, 1986, Walker LaBrunerie assigned his general partnership interest to Claire LaBrunerie, with the consent of the other general partners. On December 2, 1987, Claire and Danner entered into a 'written agreement with Clark Construction Co., Inc. to purchase Clark’s partnership interest, the purchase price being eighty-five thousand dollars ($85,000.00). In addition to a timetable for payments of the purchase price and various other provisions, the contract stated that: 1) the partnership, at any time on written notice, could replace Clark as general contractor without terminating Clark’s obligations under the agreement or releasing it from liability for past performance under the agreement; and 2) Clark would provide a certified corporate resolution authorizing the corporation to complete the sale of its share of the partnership in accordance with the agreement, and an incumbency certificate showing the officers, directors and shareholders having power to authorize the acts of the corporation.

In accordance with the agreement, Clark provided Claire and Danner with a preprint-ed form titled, “Corporate Certificate of Clark Construction Co., Inc.” which was signed and certified by Terry J. Clark (Terry) as Secretary of the corporation. The typed-in portions of the certificate stated that Clark Construction Co., Inc., was a Kansas corporation, that it was authorized to issue one hundred (100) shares of common stock, and that Terry J. Clark was the sole shareholder, director, and officer of the corporation. It also stated that included was a “true copy” of a resolution approved by the Board of Directors of the corporation on December 2, 1987, authorizing the officers of *953 the corporation to enter into the agreement, which resolution was typed on the form.

After executing the agreement, Clark assigned identical 25% interests in the Willow Lake Partnership to Claire and Danner, thereby giving each of them a 50% interest in the partnership, and they, in turn, paid Clark the first scheduled payment of five thousand dollars ($5,000.00). Both assignments as well as the agreement itself were signed by Terry J. Clark for Clark Construction Co., Inc., and were notarized, the acknowledgments asserting that Terry was the president of Clark Construction Co, Inc., a Kansas corporation.

In December of 1987, or January of 1988, a group of investors negotiated with Danner and Claire to purchase the partnership. The potential investors calculated that the completion cost of the apartment project would exceed the estimated completion amount shown by Clark in the December 2, 1987 agreement by approximately four hundred eleven thousand dollars ($411,000.00). On February 24, 1988, the partnership wrote a letter addressed to Terry Clark, “Clark Construction Co., Inc.,” notifying it that it had been dismissed as general contractor for the project. The letter noted problems with the work done to date by Clark and stated that Clark had failed to adhere to some of the specifications in the construction contract.

On September 8, 1989, Terry J. Clark, individually, filed a Pro Se “Petition for Collection of Notes” against Danner in the district court of Johnson County, Kansas. In the unverified petition Terry stated that, “on December 1 1987, Clark Construction Co. Inc. assigned the note to Terry J. Clark.” (Emphasis added). The petition did not identify the December ¾ 1987 agreement as the “note.” However, it did allege that Dan-ner had failed to make the December 31, 1987, payment of fifteen thousand dollars ($15,000.00) and the May 1,1989, payment of twenty thousand dollars ($20,000.00), which is consistent with the payment dates specified in the agreement. On the other hand, as can be observed, the alleged assignment date was the day before execution of the agreement. Service was never obtained on Danner in this lawsuit.

On November 30,1989, an assignment was made by “Clark Construction Co., Inc., a Missouri Corporation” to Donna J. Barker of Clark’s interest and rights to payments under the December 2, 1987 agreement from Claire and Danner. The assignment to Barker, Terry J. Clark’s mother, states that it was given for “one dollar and other good and valuable considerations”. The record shows that the consideration consisted of loans and/or advances made by Barker to Terry. There is some dispute over whether these loans and advances were made for Terry’s individual benefit or also for the benefit of Clark.

Barker filed a Petition for Breach of Contract and Money Damages in the circuit court of Clay County on July 23, 1991, asserting that Claire LaBrunerie and Danner breached the December 2, 1987 agreement, and that, as assignee of Clark, she was entitled to recover eighty thousand dollars ($80,-000.00) from them. An amended petition was filed on December 10,1992, which joined Terry Clark Construction Company as an additional party Plaintiff and added Walker LaBrunerie as an additional Defendant. On April 18, 1994, Defendants filed a Motion for Summary Judgment or, in the Alternative for Partial Summary Judgment against Barker and Clark. They filed a summary judgment motion against Clark only on May 10, 1994.

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Bluebook (online)
903 S.W.2d 950, 1995 Mo. App. LEXIS 1436, 1995 WL 478356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barker-v-danner-moctapp-1995.