Brink v. Kansas City

221 S.W.2d 490, 359 Mo. 311, 1949 Mo. LEXIS 618
Supreme Court of Missouri·Decided June 13, 1949·No. No. 40918.·Published·Cited by 3 cases

Opinion

*313 ELLISON, J.

The defendant Kansas City appeals from a judgment of the circuit court of Jackson County in favor of the plaintiff-respondent Brink as trustee for a large number of realty owners in the city, for $64,077.12 and interest. The principal amount is the aggregate of sums long since severally paid by the realty owners in discharge of special assessment taxbills against their respective tracts for the construction of the first section of the Brookside sewer. Recovery of those payments is sought on the theory that the special assessment proceedings were fraudulent and void because of eollusive bidding by sewer contractors at the letting and conspiracy between the contractors and the city officials.

The appellant city contends chiefly, that all of the realty owners’ claims were and are barred by the five year statute of limitations, Sec. 1014, R. S. 1939, Mo. R.S. A. In addition it asserts that: (1) the evidence of fraud was circumstantial, speculative and insufficient; (2) the trial court erred in allowing interest on the claims *314 from the date of payment instead of the date of demand (by bringing this suit), which point respondent concedes; (3) the suit was not in equity but in assumpsit for money had and received, by reason of which the trial court erred in denying the city a jury trial.

The respondent’s chief answering contention is that since the case involves fraud it is covered by the fifth subdivision of Sec. 1014, supra, which provides that “an action for relief on the ground of fraud . . (is) deemed not to have accrued until the discovery by the aggrieved party, at any time within ten years, of the facts constituting the fraud.” (Italics ours). Hence he maintains the five year limitation did not begin to run until the fraud was discovered — which he asserts was less than five years before this suit was brought on August 21, 1944, as to most of the 952 causes of action sued on. He further contends the fraud was concealed by the city; that a fiduciary relation existed between it and the realty owners; that the latter had no means of discovering the fraud; and that the statute of limitations was also tolled by duress (as later explained).

The. special assessment proceedings in this ease were begun on March 22, 1937. A construction contract was let on September 28, 1937. The sewer was completed on January 15, 1938. The special taxbills were certified and issued on February 11, 1938, and were due in 30 days, or, if not then paid in full they became payable in four equal annual* installments bearing 7% interest per annum from date of issue to maturity, and 8% interest thereafter. Nearly 6-% years after the due date of the taxbills the instant action was instituted on August 21, 1944, as stated above, to recover payments theretofore made by the property owners on the taxbills. The third amended petition on which the cause was tried, was filed on February 10, 1947, and was amended by adding 54 new counts and defendants, on December 15, 1947. Of the 952 taxbills involved in that petition, 782 had been paid in full (as we understand) more than five years before the institution of the suit. And on 113 taxbills partial payments were made before that time. Ten counts were dismissed. Thus it appears there were 47 taxbills upon which no payments had been made before the institution of this suit, if our understanding is correct.

Respondent’s legal theory that the appellant city is obligated to refund the amounts paid on the taxbills is based mainly on the first two of the three cases cited below; 1 and the city’s theory of non-liability is based on the third case. The chronology of these three decisions and their holdings must be kept in mind. The first, or Ruckels, case was a class suit in equity brought on August 14, 1939, *315 by a realty owner (in which 208 others later joined) to cancel the contract for the construction of the second section of the Brookside sewer and the special assessment taxbills therefor, on the same grounds as here — collusive bidding and fraudulent conspiracy. The decree of the trial court was reversed because of that fraud, and the taxbills were ordered cancelled by the judgment of this court on July 6, 1943.

In the second ease cited 1 by respondent, hereinafter called the “first Brink case ’ the action was brought by the present respondent Brink on February 25, 1944, a little over seven months after the reversal of the Ruckels case by Division I of this court. It was a class action for money had and received in behalf of about 400 realty owners on the same second section of the Brookside sewer, to recover payments made on taxbills, with interest, on the ground that the taxbills were ■void for fraud, as held in the Ruckels case. The-taxbills on that section of the sewer were not even issued until September 28, 1939, less than five years prior to the institution of this first Brink action and so there could not have been any payments on the taxbills during the intervening time, recovery of which would have been barred under the five year statute of limitations when the suit was brought.

But the city defended on the ground that the realty owners had voluntarily paid the taxbills, and the plaintiff Brink maintained to the contrary that they were paid under legal duress. Division 1 of this court upheld the latter contention on the ground that the great expense involved in litigation to cancel or defend against the tax-bills, and the heavy accumulation of interest payments during its pendency, would have made the financial burden on the realty owners excessive, amounting to coercion or duress. And the decision held this was true notwithstanding the realty owners may have known of the invalidity of the taxbills.

In this connection, it should be further stated that in this first Brink case the petition of the plaintiff in the Ruckels case was introduced in evidence along with the two volume transcript of the evidence in that case. And the Ruckels decision [351 Mo. l. c. 830, 174 SW. (2d) l. c. 188 (2)] stated it appeared from the transcript that the instant plaintiff-respondent Brink was chairman of a property owners’ committee in “the sewer district” (meaning, as we understand, the whole Brookside sewer district). The opinion also further stated that Brink wrote a letter to the property owners in the district on June 9, 1939, telling them the average tax assessment per lot of 50x130 feet would be $48.75; that the sewer was nearly completed; suggesting that each owner contribute 10%• of his anticipated tax to a “litigation fund”; and adding that if the result was successful the sewer would be constructed but that they would not have to pay for it, or ‘ ‘ in other words, you could have your cake and eat it.”

The third case citéd above, 1 hereinafter called “the second Brink ease”, was decided first in Division 2 and affirmed en bane last Feb *316 vuary. It, likewise, was an action for money had and received brought by the instant plaintiff-respondent Brink to recover payments made by realty owners on taxbills for the construction of the second

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

Brink v. Kansas City, 221 S.W.2d 490, 359 Mo. 311, 1949 Mo. LEXIS 618 (Mo. 1949).

221 S.W.2d 490 (Brink v. Kansas City) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Resolution Trust Corp. v. Fiala
870 F. Supp. 962 (E.D. Missouri, 1994)
Aetna Casualty & Surety Company v. Frank Fernandez
830 F.2d 952 (Eighth Circuit, 1987)
Burr v. National Life & Accident Insurance Co.
667 S.W.2d 5 (Missouri Court of Appeals, 1984)