Burger v. Crocker

392 S.W.2d 640, 1965 Mo. App. LEXIS 614
CourtMissouri Court of Appeals
DecidedJune 15, 1965
DocketNo. 31837
StatusPublished
Cited by14 cases

This text of 392 S.W.2d 640 (Burger v. Crocker) 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
Burger v. Crocker, 392 S.W.2d 640, 1965 Mo. App. LEXIS 614 (Mo. Ct. App. 1965).

Opinion

BRADY, Commissioner.

The appellant instituted this action against the respondents for the collection of three promissory notes in the aggregate principal sum of $5,661.34, plus interest, attorney fees and costs. A jury trial resulted in a verdict for the respondents and this appeal follows the overruling of appellant’s timely after-trial motions. The parties will hereinafter be referred to by their designation in the trial court.

[642]*642A brief résumé of defendants’ answer is necessary herein. The defendants admitted they executed the notes and that payment had not been made. They also pled failure of consideration. By other allegations in their answers the defendants ■ alleged that Mr. Crocker had committed perjury at the “instigation and request of plaintiff;” that when Crocker was convicted of this offense plaintiff told him that his attorney’s fees and other expenses during his imprisonment would be taken care of by the plaintiff, who would also take care of all other expenses that would need to be met by either Crocker or his wife while Crocker was in prison; and that these notes were executed for the sole purpose of furnishing plaintiff with evidence to present to the United States Government in the event of inquiry by any agency thereof.

The facts, stated in the light required of this court by the jury’s verdict, follow. Mr. Crocker was the general manager and vice-president of Community Motors, Inc., a corporation controlled by the plaintiff. During the years following the end of World War II and while price controls were in effect upon automobiles, Community Motors sold automobiles for prices in excess of the ceiling price. Crocker, pursuant to a general policy set by plaintiff, determined the amount of overage to be paid in cash and collected it, keeping 10% of the overage for himself and turning the other 90% over to the plaintiff. When agents from the Bureau of Internal Revenue of the federal government began an investigation of Community Motors Crocker was asked to give a formal statement. Before going to a meeting with agents of the Internal Revenue, he informed plaintiff of the meeting. Plaintiff gave him instructions as to what to say and also told Crocker that he would “ * * * take care of everything.” During the course of this meeting Crocker gave a sworn statement denying the practice of collecting a cash overage. He was later indicted on a charge of perjury arising out of this denial and upon a plea of guilty was sentenced to eighteen months in a federal prison. In the meantime plaintiff had been indicted in two cases of tax fraud. In one of these indictments Crocker was a co-defendant.

The night before Crocker was to leave for prison plaintiff came to the Crocker home and urged Crocker not to change his admittedly perjured statement. In plaintiff’s presence Crocker signed five promissory notes in blank and gave them to his wife. This arrangement resulted from Crocker’s statement that he was going to need money for his insurance payments. Plaintiff then told Crocker that “ * * * if the wife needed any money to send them in and he would deposit the money to her account.” Crocker’s testimony was that the plaintiff told him the purpose of the notes was to constitute evidence “ * * * that he 0 wasn’t paying me off to take the rap on the deal,” in case the Internal Revenue Agents were to check on it.

A few days after Crocker departed for prison, his bank called his wife and informed her their account was overdrawn. She called the plaintiff’s comptroller. The plaintiff personally met her at the bank where he deposited a check for $2,250.00 in her husband’s account and instructed her to open her own account into which he deposited $250.00. Mrs. Crocker had power of attorney enabling her to draw checks on her husband’s account. These two deposits accounted for the first note in the amount of $2,500.00 which plaintiff seeks to collect. Thereafter Mrs. Crocker called the plaintiff’s comptroller whenever her account was overdrawn. As a result of these calls the plaintiff deposited $250.00 in her account on July 18, 1956, $50.00 on July 23, $25.00 on July 30, and $25.00 on August 1st. In December of that year she went to the plaintiff’s office where she received plaintiff’s check for $500.00. These sums account for the second note in the amount of $850.00. The third note sued on was for $2,311.34 and represents fees and expenses paid to attorney George C. Dyer in connection with his attendance at a hearing in Washington, D. C., regarding a parole for Crocker. This [643]*643sum was also paid to the defendants by the plaintiff.

All the parties involved in this action were represented by Mr. Dyer whose deposition was read into evidence. Plaintiff made specific and vigorous objection to reading that portion of Dyer’s deposition wherein he testified that, having in mind the possibility of a “conspiracy indictment” also being returned against these parties, he asked the plaintiff, “How are you handling these payments that you are making to Crocker. * * * ” Dyer’s testimony was that plaintiff replied “Oh, I have some notes and other papers to show to the government or the agents, if they inquire about it.” Plaintiff’s objection was based on the ground that the conversation between Dyer and the plaintiff was privileged. The objection was overruled and the foregoing portion of the deposition was read at the trial. This conversation took place in July of 1956, and Dyer and the plaintiff were the only ones present. Mr. Dyer subsequently withdrew as attorney for either of these parties.

The first demand for payment of these notes came three days after the plaintiff had been sentenced for income tax fraud as a result of a trial at which Crocker changed his admittedly perjured statement and appeared as a witness for the prosecution.

The defendants submitted their case to the jury by Instruction No. 4 which hypothesized Crocker’s conviction for perjury; the subornation of that perjury by the plaintiff; the plaintiff’s promise to pay Crocker’s attorney’s fees and other trial expenses as well as his promise to pay all other expenses Crocker or his wife might incur while Crocker was in prison; and that these notes were only to be used in the event of an inquiry by any agency of the government as to the reason plaintiff was paying the defendants’ expenses during Crocker’s imprisonment.

The plaintiff has briefed these allegations of prejudicial error. He contends he was entitled to a directed verdict; that the trial court should not have overruled his objection to the reading of that part of Mr. Dyer’s deposition set out herein; and in the giving of Instruction No. 4.

The plaintiff candidly admits the evidence clearly establishes the nature of the agreement between the plaintiff and Crocker. He urges that the defendant, having the burden of proof, cannot advance that defense and therefore plaintiff’s case stands uncontradicted entitling him to a directed verdict. Plaintiff’s reasoning would have us ignore that these parties are in pari delicto and that the contract between them is one which involves an illegal act or which is void as against public policy. A court will not aid either party to enforce such an agreement nor assist them in any attempt to seek relief to a transaction growing out of such agreement. As stated in 17 C.J.S. Contracts § 272, p. 1188: “No principle of law is better settled than that a party to an illegal contract cannot come into a court of law and ask to have his illegal objects carried out; nor can he set up a case in which he must necessarily disclose an illegal purpose as the groundwork of his claim.

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Bluebook (online)
392 S.W.2d 640, 1965 Mo. App. LEXIS 614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burger-v-crocker-moctapp-1965.