Brewer v. Tip Top Credit Union (In Re Brewer)

65 B.R. 75
CourtUnited States Bankruptcy Court, W.D. Missouri
DecidedSeptember 15, 1986
Docket19-50133
StatusPublished
Cited by7 cases

This text of 65 B.R. 75 (Brewer v. Tip Top Credit Union (In Re Brewer)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brewer v. Tip Top Credit Union (In Re Brewer), 65 B.R. 75 (Mo. 1986).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW AND FINAL JUDGMENT THAT PLAINTIFFS HAVE AND RECOVER THE SUM OF $6666.67 FROM DEFENDANT

DENNIS J. STEWART, Chief Judge.

Plaintiffs, the debtors-in-possession in these chapter 11 proceedings, bring this action for the purpose of recovering damages on the basis of the defendant’s alleged breach of an agreement which was approved by the court in a prior adversary action. See Brewer v. Tip Top Credit Union, Adversary Action No. 85-0268-SW-11 (Bkrtcy.W.D.Mo. Sep. 16, 1985). It is the primary contention of the plaintiff that the court’s final judgment in that case does not contain a correct rendition of the oral agreement between the parties insofar as it states that the tenancy agreement between the parties was, after the 1985 harvest, “terminable at will” and that the defendant breached the real agreement between the parties by forcing the debtors to vacate the premises after the 1985 harvest. The merits of the. action came on before the court for hearing on July 11, 1986, in Joplin, Missouri, whereupon the plaintiffs appeared personally and by Sylvia Byrnes-Ales, Esquire, their counsel, and the defendant appeared by counsel, Daniel E. Scott, Esquire. The evidence which was then adduced showed that, in the former adversary action, the debtors sought an accounting by Tip Top Credit Union for certain funds which Tip Top had received as preferential or otherwise unlawful transfers; that, by order of August 1, 1985, this court set a hearing of the merits of that adversary action for September 6, 1985, at 2:00 p.m. in Joplin, Missouri; that, at the time thus established for hearing, the debtors did not appear, either personally or by counsel, and only the Tip Top Credit Union then appeared by Bruce A. Copeland, Esquire, its counsel, who related to the court that the parties had reached a compromise and settlement of the action, the substance of which he then related to the court; that the court, therefore, on September 16, 1985, issued its written order approving the compromise and settlement, and stating that the agreement between the parties, as reported by Mr. Copeland, was to the following effect:

“(1) The defendant will, within 7 days of September 6, 1985, return the sum of $5,000, which defendant allegedly wrongfully collected, to plaintiff.
“(2) The debtors and defendant will ‘sharecrop’ the 200 acres with respect to which the automatic stay was relieved in favor of Tip Top Credit Union in the *77 confirmed plan of reorganization. Under such ‘shareerop’ arrangement, the debtors are to provide all expenses and labor necessary to plant, cultivate, and harvest crops and they will take % of the crop proceeds while Tip Top will be entitled to V3 of the crop proceeds. The sharecrop arrangement will last through the harvesting and sale and division of this year’s anticipated crops and thereafter will be terminable at the will of the Tip Top Credit Union.
“(8) The court’s prior order of August 14, 1985, confirming the debtor’s proposed plan of reorganization will be deemed amended to show that the balance due to the class 7 creditor is $78,-503.65 which will be amortized over 20 years at the rate of $1,212.18 per month.
“(4) The within adversary action will be dismissed with prejudice and debtors will release Tip Top with respect to any and all claims or defenses based upon Tip Top’s alleged lack of priority or lack of security interest in the milk assignment”;

that, in the meantime, Mr. Brewer, on or about September 13, 1986, met with his counsel, Thomas L. Williams, Esquire, and was informed by Mr. Williams that the judgment of the court was about to be issued to the above effect; that Mr. Williams knew at this time that the approved agreement did not include a term certain past the 1985 harvest because, on September 6, 1985, Mr. Copeland had written to Mr. Williams as follows:

“At today’s hearing Judge Stewart insisted on making an entry reflecting our settlement agreement. We should be receiving his formal order next week. He decided that the increase of monthly payments to Tip Top as a result of our settlement was sufficiently insignificant to allow him to modify the confirmed plan without notice to all parties. I had a problem explaining to him what I understood to be the term of our sharecropping arrangement. After telling him that I understood the agreement would continue until Tip Top sold the 200 acres, he decided that the arrangement was terminable at the will of Tip Top because there was no agreement between Tip Top and the Brewers as to a minimum sale price for which Tip Top could sell the 200 acres. As a result, his order will reflec-tithat the sharecropping agreement is terminable at will”;

that Mr. Williams informed Mr. Brewer of the agreement to this effect and Mr. Brewer gave no indication of any desire to appeal from the court’s judgment approving the agreement; that Mr. Brewer, in his testimony before this court, contends that this was because Mr. Williams told him that “there was nothing we could do about it”; that Mr. Williams’ testimony is to the contrary and to the effect that he did not tell Mr. Brewer that “there was nothing we could do about it”; that he did not recommend appeal because of attempts which then ensued to work out another agreement with Tip Top Credit Union on behalf of the debtors; that it was not possible to work out any such subsequent agreement; that the debtors, nevertheless, in reliance on the provision that the lease continued after the 1985 season, albeit terminable at will, obtained sufficient seed to plant crops which, according to Mr. Brewer’s uncontra-dicted testimony, would have yielded $10,-000 in proceeds of the sale of the crops; that these crops were never planted, however, inasmuch as, according to Mr. Brewer’s uncontradicted testimony, he went to the field at planting time only to find that Tip Top Credit Union had given over its custody to another farmer, who was in the process of undoing whatever preparations Mr. Brewer had made for planting his crops; that Mr. Brewer, again according to his uncontradicted testimony, had no certain knowledge of the precise terms of the agreement related to the court by Mr. Copeland until he was sent a sheaf of papers by Mr. Williams in March of 1986; and that Mr. Brewer claims never to have received any adequate accounting for Tip Top Credit Union’s disposition of the monies which constituted the subject matter of the prior adversary action.

Conclusions of Law

Formerly, in the hearing of September 6, 1985, in apprising the court of the terms *78 and nature of the agreement between the Brewers and the Tip Top Credit Union, Mr. Copeland characterized the arrangement between the parties as being in the nature of a “sharecrop” agreement. If so, the arrangement did not have the status of a tenancy at will under the law of Missouri and the Brewers were entitled to no notice by Tip Top Credit Union as a prerequisite to termination of the agreement. See Busby v. Stimpson, 542 S.W.2d 551 (Mo.App.1976); Brunner v. Gorley, 227 S.W.2d 81 (Mo.App.1950).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
65 B.R. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brewer-v-tip-top-credit-union-in-re-brewer-mowb-1986.