Consolidated Grain & Barge, Co. v. Hobbs

397 S.W.3d 467, 2013 WL 372975, 2013 Mo. App. LEXIS 138
CourtMissouri Court of Appeals
DecidedJanuary 31, 2013
DocketNos. SD 31558, SD 31593
StatusPublished
Cited by5 cases

This text of 397 S.W.3d 467 (Consolidated Grain & Barge, Co. v. Hobbs) 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
Consolidated Grain & Barge, Co. v. Hobbs, 397 S.W.3d 467, 2013 WL 372975, 2013 Mo. App. LEXIS 138 (Mo. Ct. App. 2013).

Opinion

NANCY STEFFEN RAHMEYER, J.

Plaintiff, Consolidated Grain & Barge, Co. (“Consolidated”), and Defendant, Mark Phillip Hobbs in his individual capacity (“Mark Hobbs”), appeal from the trial court’s judgment. Following a trial to the court, the trial court entered a judgment that found in favor of Consolidated on its claims against Mark Hobbs for (1) an im[470]*470plied contract based on fraud or unjust enrichment, and (2) fraudulent misrepresentations, but denied Consolidated’s claim that Mark Hobbs was a partner with his father, George Phillip Hobbs (“George Hobbs”).1 In light of the cross appeals, Consolidated is treated as the Appellant in this appeal pursuant to Rule 84.04(j).2 We reverse the trial court’s judgment to the extent of its rulings in favor of Consolidated because the trial court misapplied the law in so ruling, and affirm the trial court’s judgment denying Consolidated’s claim that Mark Hobbs was a partner with George Hobbs because Consolidated failed to meet its burden of persuasion on that theory of recovery.

Facts and Procedural History

In a first amended petition filed in July 2009, Consolidated alleged in Count I that the “equitable powers” of the trial court authorized the trial court to impose a “constructive trust” on “all assets” received by Mark Hobbs from George Hobbs “on an implied, contract (quasi-contract),” and that “Mark Hobbs will be unjustly enriched at the expense of Consolidated unless the [trial court] exercises its equitable powers.” Consolidated further alleged in Count II that Mark Hobbs “[misled] Consolidated by negotiating with them to satisfy the outstanding contracts, suggesting he would deliver grain, by suggesting he would roll the wheat contracts, all of which representations were false, were known to be false, [and] reasonably relied upon by Consolidated,” and that “[a]s a direct re-suit of the misrepresentations, Consolidated did not file a timely claim in [George Hobbs’] Estate[.]” In Count V of a second amended petition, Consolidated alleged that Mark Hobbs and George Hobbs “were partners in a farming partnership,” and that Mark Hobbs “is liable as a partner.”

In his answer, Mark Hobbs asserted that Consolidated’s claims under Counts I and II of its first amended petition were barred by the probate non-claim statutes of limitation in sections 473.360 and 473.444.

On the morning of the trial, both Consolidated and Mark Hobbs requested findings of fact and conclusions of law. The trial court took judicial notice of the probate division’s court file for the Estate of George Phillip Hobbs. Counsel for Consolidated acknowledged that Consolidated was not alleging that Mark Hobbs “reached” an agreement to satisfy his father’s outstanding contracts to deliver wheat, soybeans, and corn to Consolidated.

Viewed in accordance with our standard of review, the evidence at trial showed the following. George Hobbs is the father of Mark Hobbs. George3 died on November 12, 2007. For a number of years before his death, George and Mark farmed the same land as share croppers, and split the income and expenses of that activity on their individual federal income tax returns in a way that was intended to minimize the total income taxes owed by the two men. [471]*471The split of the income and expenses between the two men changed from year to year in order to minimize the total income taxes owed. The two men did not intend or desire to operate as a partnership, and no partnership tax return ever was filed.

Consolidated is a corporation that buys crops from farmers, takes delivery of those crops at facilities along the Mississippi River and a few other rivers in the Midwest, and then transports the crops by barge to New Orleans where Consolidated then sells the crops to others for export.

Before his death, George entered into several contracts with Consolidated for the delivery of wheat, soybeans, corn, and other crops on dates that turned out to be after his death. George entered into these contracts solely in his name. In each contract, Consolidated agreed to pay George a set price for the crops on delivery. Each contract was a “separate” contract.

After George’s death, Mark delivered the crop called for under one contract,4 but did not deliver the wheat, soybeans and corn called for under seven of these contracts.5 When no crops were delivered under these seven contracts, Consolidated, in October 2008, purchased other wheat, soybeans, and corn to cover the contracts but was required to pay higher prices for the crops than the priees set in the contracts with George. In the aggregate, Consolidated paid $60,519.60 more for the crops than would have been required under the contracts with George. The contracts with George provided for interest and reasonable attorney fees in the event George breached the contract. The seven unfulfilled contracts had “shipment” dates in 2007, and January, June, July, August, September and November 2008. Also after George’s death, the landlord for one of the farms George and Mark sharecropped terminated, or declined to renew, the lease for the farm. Mark sold wheat that had been planted shortly before George’s death on this farm to another farmer. The termination of this lease left Mark with only one farm to sharecrop in 2008.

Murray Sehwieger, an employee of Consolidated who dealt regularly and was “good friends” with George, attended George’s wake. Courtney Blackburn, another Consolidated employee, also was “aware of [George’s] death.” Mark testified he told Murray he was the “executor” of George’s estate in February 2008. Murray testified he did not remember Mark telling him he was the executor or otherwise in charge of George’s estate.

Murray further testified as follows. At the wake, Mark “mentioned” to Murray that “we needed to have a conversation about his dad’s contracts.” In subsequent telephone conversations, Mark and Murray talked about “how we were going to handle the contracts. And I told him we have to work, see what we can do to work things out with him. He told me that he had intended to haul the grain to us.... We talked about him bringing the grain. Then he talked about not having enough.” Murray also “talked to Mark all of the way a little here and there on rolling the contracts as well. He never did sign them.” In late September 2008, Mark told Murray “he wasn’t going to bring the grain” because he had been advised by counsel that “he didn’t have to, he didn’t have any liability because no claim had been filed in his dad’s estate.” Murray then contacted Consolidated’s in-house legal counsel and, [472]*472in October 2008, Consolidated canceled George’s seven unfulfilled contracts and sent a letter to Mark Hobbs notifying him of the cancellation and that Consolidated “would be invoicing them” for damages. At some point after George died, Murray told Mark that the landlords “should be responsible for a portion of those contracts as well.”

Courtney Blackburn testified at deposition that he thought he was dealing with “George Hobbs Farms” when he was dealing with George. Nothing Mark said “induced” Courtney “not to file a claim” on behalf of Consolidated in George’s probate proceeding.

At the time, Consolidated did not have an employee who was responsible for filing claims in the probate estates of deceased customers.

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Bluebook (online)
397 S.W.3d 467, 2013 WL 372975, 2013 Mo. App. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-grain-barge-co-v-hobbs-moctapp-2013.