County Asphalt Paving, Co. v. Mosley Construction, Inc.

239 S.W.3d 704, 2007 Mo. App. LEXIS 1653, 2007 WL 4234639
CourtMissouri Court of Appeals
DecidedDecember 4, 2007
DocketED 89415
StatusPublished
Cited by17 cases

This text of 239 S.W.3d 704 (County Asphalt Paving, Co. v. Mosley Construction, Inc.) 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
County Asphalt Paving, Co. v. Mosley Construction, Inc., 239 S.W.3d 704, 2007 Mo. App. LEXIS 1653, 2007 WL 4234639 (Mo. Ct. App. 2007).

Opinion

OPINION

GEORGE W. DRAPER III, Judge.

Christian Embassy Church (hereinafter, “Church”) appeals from the trial court’s grant of summary judgment in favor of County Asphalt Paving Company, Inc. (hereinafter, “CAPC”) on its claim for quantum meruit. Church raises one point on appeal, alleging the trial court erred in granting summary judgment in that CAPC’s claim fails as a matter of law because Church paid for the benefit it received, and as a result, Church was not enriched unjustly. We reverse and remand.

The facts are generally undisputed. Church sought to build a new worship facility in Black Jack, Missouri, in 2003. Church obtained a construction loan from U.S. Bank for approximately $1.2 million dollars. These funds were placed into an escrow account with Title Insurers Agency, Inc. (hereinafter, “Title Company”). Church hired Mosley Construction, Inc. (hereinafter, “Mosley”) as its general contractor.

In March 2004, Mosley and CAPC executed a document entitled, “Standard Form of Agreement between Contractor *707 and Subcontractor.” Pursuant to this agreement, CAPC agreed to furnish and install asphalt pavement for the new worship facility. Mosley agreed to pay CAPC $54,256.00 for materials and labor. The parties subsequently executed three change orders which resulted in additional work and materials for a total of $70,433.00 owed by Mosley to CAPC. It is undisputed CAPC fully performed and completed all of the work pursuant to the original agreement and change orders by June 2005. Construction on the worship facility was completed that same month.

Church approved the work, and CAPC received payments from Mosley in the amount of $51,594.30, leaving a balance of $18,838.70. At some point, Mosley approved payment of the amount owed to CAPC. On June 15, 2005, Title Company issued a check drawn from the escrow account for $18,838.70, but the check was returned for insufficient funds. It was later revealed Title Company’s principals were indicted on federal mail and wire fraud charges related to the misappropriation of money from their clients’ escrow accounts. Church was one of the clients who lost funds. A trustee was appointed to oversee Title Company’s affairs and resolve its creditors’ claims. Church is repaying the loan to U.S. Bank, including the funds that were misappropriated.

CAPC subsequently made demand upon Church and Mosley for the balance due under the agreement. Both refused to render payment to CAPC. Several subcontractors filed timely mechanic’s liens, however, CAPC failed to do so.

CAPC filed suit against Church and Mosley on March 30, 2006, alleging three causes of action. CAPC’s first and second counts were directed at Mosley and are not at issue in this appeal. CAPC’s third count, entitled “Quantum Meruit,” brought against Church and Mosley alleged they retained and received the benefit of the material and labors CAPC provided when it paved the parking lot at the worship facility. As a result, CAPC claimed the retention of the material and labor resulted in unjust enrichment because neither defendant paid CAPC for its services. CAPC sought actual damages in the amount of $18,838.70, reasonable attorneys’ fees, and prejudgment interest.

Mosley filed its answer to CAPC’s petition and admitted CAPC had not received payment from Mosley. Additionally, Mosley filed cross-claims against Church for breach of contract and quantum meruit, alleging Church failed to pay Mosley and various subcontractors, including CAPC. Shortly thereafter, Church filed its amended answer, generally averring it “lack[ed] sufficient information to admit or deny” to almost every allegation. Church raised no affirmative defenses to CAPC’s claim, but raised a defense to Mosley’s cross-claims, stating Mosley “may have received partial or full compensation from others not a party to this litigation for the claim at issue, thus entitling Church to a set off.”

CAPC filed its motion for summary judgment on October 6, 2006. CAPC’s motion alleges, inter alia, that Mosley approved payment of the amount owed as evidenced by the check issued by Title Company that was returned for insufficient funds. CAPC reiterated Church and Mosley refused and failed to pay amounts due and owing despite accepting material and labor. Church’s response to CAPC’s motion for summary judgment contained mere recitations of “admit or deny” similar to its amended answer, and attached the affidavit of Robert Griffin Sr. (hereinafter, “Griffin”), Church’s pastor. Mosley did not file a response to CAPC’s motion for summary judgment.

While the motion for summary judgment was pending, Church filed a “Motion to *708 Dismiss and Statement of Uncontroverted Facts” on February 9, 2007. For the first time during the litigation, Church raised the issue that CAPC’s petition failed to state a claim for relief because CAPC failed to plead an essential element of its claim. Specifically, Church claims CAPC’s petition did not allege that the property owner, Church, failed to pay the general contractor, Mosley, as required by the holding in Green Quarries, Inc. v. Ernie Raasch, 676 S.W.2d 261 (Mo.App. W.D.1984). The trial court never formally called, heard, or ruled on Church’s motion to dismiss.

The trial court entered its judgment on February 13, 2007, granting summary judgment in CAPC’s favor on all counts, holding Mosley and Church jointly and severally liable for the amounts due. However, the trial court denied CAPC’s request for interest and attorney’s fees because “[Mosley and Church’s] failure to timely pay [CAPC] was reasonable in that [Mosley and Church] had deposited all the funds to pay [CAPC] with Title Company in an escrow account. The funds were thereafter misappropriated by the [T]itle [C]ompany through no fault of [Mosley and Church] and were not available for timely payment.” Church appeals.

In its sole point on appeal, Church argues the trial court erred in entering summary judgment on CAPC’s behalf on its quantum meruit claim. Church asserts CAPC’s claim fails as a matter of law in that CAPC’s petition failed to allege Church did not pay Mosley for the cost of construction. In light of this defect, Church contends CAPC failed to prove it was enriched unjustly by receiving CAPC’s services.

It is well-settled that when considering an appeal from a grant of summary judgment, we review the record in the light most favorable to the nonmovant. ITT Commercial Fin. v. Mid-America Marine, 854 S.W.2d 371, 376 (Mo. banc 1993). Our review is essentially de novo. Id. The criteria on appeal for testing the propriety of summary judgment are no different from those employed by the trial court to determine the propriety of sustaining the motion initially. Id. The burden of proof on a summary judgment movant is to establish a legal right to judgment flowing from facts about which there is no genuine dispute. Id. at 378. “The moving party bears the burden of establishing a right to judgment as a matter of law.” Powel v. Chaminade College Preparatory, Inc., 197 S.W.3d 576, 580 (Mo. banc 2006).

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Cite This Page — Counsel Stack

Bluebook (online)
239 S.W.3d 704, 2007 Mo. App. LEXIS 1653, 2007 WL 4234639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-asphalt-paving-co-v-mosley-construction-inc-moctapp-2007.