C & W Spreaders, L.L.C. v. Wosoba

324 S.W.3d 462, 2010 Mo. App. LEXIS 1465, 2010 WL 4253670
CourtMissouri Court of Appeals
DecidedOctober 28, 2010
DocketSD 30204
StatusPublished

This text of 324 S.W.3d 462 (C & W Spreaders, L.L.C. v. Wosoba) 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
C & W Spreaders, L.L.C. v. Wosoba, 324 S.W.3d 462, 2010 Mo. App. LEXIS 1465, 2010 WL 4253670 (Mo. Ct. App. 2010).

Opinion

GARY W. LYNCH, Judge.

Daniel Wosoba appeals from a $20,587.45 judgment in favor of CW Spreaders, L.L.C. (“the L.L.C.”). He claims that $13,987.55 of that amount, which the trial court awarded as damages for breach of contract as a result of his interference with the L.L.C.’s business relationship with a supplier, was in error because the contract at issue did not prohibit interference with a business relationship. We agree and reverse that part of the trial court’s judgment.

Factual and Procedural Background

We view the evidence in the light most favorable to the trial court’s judgment. Estate of Thompson v. Hicks, 148 S.W.3d 32, 35 (Mo.App.2004). Furthermore, as neither party requested that the trial court make written findings of fact and conclusions of law, “[a]ll fact issues upon which no specific findings are made shall be considered as having been found in accordance with the result reached.” Rule 73.01(c). 1 Taken in that context, the following evidence was adduced at trial.

William Cary had been a friend of Floyd Wosoba and his son, Daniel, for several years. 2 While Cary was “riding around somewhere” with Floyd, the two began discussing the use of poultry litter as fertilizer, and Floyd, a long-time farmer and fixture in the trucking industry, expressed his desire for Daniel, then eighteen years old, to get involved in the industry and have a steady income. Later on, all three men sat down to discuss setting up a business partnership between Cary and Daniel. In an attempt to assist in that planning, Floyd made multiple unreturned calls to George’s of Missouri (“George’s”), a poultry company located in Springdale, Arkansas. Cary, however, was eventually able to get in touch with Kendall Pender-graph — a long-time friend of Floyd’s and the general manager of George’s — and *464 Cary, Daniel, and Floyd later met with Pendergraph. Out of that meeting came an arrangement for George’s to supply the new business venture with chicken litter.

Pendergraph agreed that George’s would sell the L.L.C. up to six loads of chicken litter per week at a price to be set by Pendergraph. The initial price was $6.00 per ton. Later, Pendergraph raised it to $8.00 per ton. Each load contained approximately 23 tons of litter. Other businesses in the area priced their chicken litter anywhere from $18.00 to $25.00 per ton. Pendergraph was willing to sell litter so cheaply because “it was not really a business deal for him[,]” and he just wanted “a reliable source” to haul away his litter. Pendergraph refused to put the arrangement in writing but told Cary and Daniel that he would honor the arrangement for five years. The L.L.C. was not the only company hauling away George’s litter.

After solidifying George’s as a supplier, in August 2007 Cary and Daniel created a limited liability company they named CW Spreaders, L.L.C. 3 Cary’s wife drafted the operating agreement, which specified that, for purposes of managerial decision making, Cary would have a fifty-one percent interest in the company, while Daniel would have a forty-nine percent interest; the profits, however, would be split equally-

Following its creation, the L.L.C. purchased a spreader truck and trailer to use for the business. The truck was destroyed in an accident on May 23, 2008. The insurance proceeds more than covered the remaining loan on the vehicles, and the surplus was split evenly between Cary and Daniel. After the accident, the L.L.C. arranged in the short term for other individuals to truck the litter from George’s back to the L.L.C.’s base of operations but eventually began using a converted truck belonging to Daniel’s father. Floyd did not want compensation for the L.L.C.’s use of the truck, but the L.L.C. paid for the truck’s maintenance and fuel. The L.L.C. also rented a trailer to use for hauling.

In addition to the initial purchase of the spreader truck and trailer, the L.L.C. also purchased a loader and a bi-directional tractor, as well as another loader truck for parts, two buckets and a grapple for the tractor, and various other “odds and ends mechanical pieces.”

On August 19, 2008, Daniel told Cary that he no longer wanted to be involved with the L.L.C. Daniel asked Cary to “price the physical equipment” and Daniel would decide if he wanted to sell his share to Cary or purchase Cary’s share. Cary priced the L.L.C.’s equipment — a tractor, litter bed, loader truck, and GPS unit — at $10,000.00, plus the $22,000.00 owed in debt. Daniel chose to pay Cary $10,000.00, assume the $22,000.00 debt, and take possession of the L.L.C.’s equipment. Before approaching Cary about withdrawing from the business, Daniel had already purchased another spreader truck. Around that same time, Daniel purchased the trailer that the L.L.C. had been renting and using to haul litter.

In preparation for obtaining a loan to pay off the debt, Daniel asked Cary to write a letter he could give to the bank. The first document Cary prepared listed the items to be transferred and included a statement by Cary agreeing to “release [his] interest in the above items to Daniel Wosoba” for the agreed-upon price. The bank, however, found this document insuf *465 ficient, and Daniel asked Cary to write a second letter and to include the serial numbers for the equipment that would be transferred to Daniel. In addition to listing each piece of equipment with its accompanying serial number and selling price, including the assumption of debt, the second letter included the following statement:

I agree to settle all remaining accounts of customers to date and turn over all monies to C & W Spreaders LLC as per our partnership agreement. I further agree not to interfere with C & W Spreaders LLC business or any contracts they currently hold (verbal or in writing) or in any way act as doing business as C & W Spreaders, or C & W Spreaders LLC etc. As per our agreement I will turn over to you the remaining parts of the wet kit removed from the wrecked 1999 Mack truck.

(Emphasis added). There was no mention of any of the L.L.C.’s other assets in the letter. Daniel signed the letter on August 25, 2008, and Cary acknowledged receipt of the letter that same day.

The next day, Cary withdrew $12,000.00 from the L.L.C.’s bank account and deposited the money in his own personal bank account. Shortly thereafter, Daniel withdrew the remaining money, $8,889.44, from the L.L.C.’s account and closed the account.

Following his withdrawal from the L.L.C. on August 25, 2008, Daniel began hauling litter from George’s the next week under the name “DW Farms.” From that time through the time of trial, he hauled from George’s on a fairly regular basis. Daniel continued to pay George’s $8.00 per ton of chicken litter. George’s allowed him to haul as many as fifteen loads per week. Floyd, under the name “Wosoba Trucking,” also hauled litter from George’s following Daniel’s withdrawal, mostly for his own personal use.

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Bluebook (online)
324 S.W.3d 462, 2010 Mo. App. LEXIS 1465, 2010 WL 4253670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-w-spreaders-llc-v-wosoba-moctapp-2010.