D. Wayne Mayer, Trustee, John J. Stock Trust and Ronald J. Nolle, Trustee, Oscar A. Nolle Trust v. Lindenwood Female College d/b/a Lindenwood University

CourtMissouri Court of Appeals
DecidedNovember 18, 2014
DocketED100587
StatusPublished

This text of D. Wayne Mayer, Trustee, John J. Stock Trust and Ronald J. Nolle, Trustee, Oscar A. Nolle Trust v. Lindenwood Female College d/b/a Lindenwood University (D. Wayne Mayer, Trustee, John J. Stock Trust and Ronald J. Nolle, Trustee, Oscar A. Nolle Trust v. Lindenwood Female College d/b/a Lindenwood University) 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
D. Wayne Mayer, Trustee, John J. Stock Trust and Ronald J. Nolle, Trustee, Oscar A. Nolle Trust v. Lindenwood Female College d/b/a Lindenwood University, (Mo. Ct. App. 2014).

Opinion

In the Missouri Court of Appeals Eastern District DIVISON FOUR

D. WAYNE MAYER, TRUSTEE, JOHN J. ) No. ED100587 STOCK TRUST and RONALD J. NOLLE, ) TRUSTEE, OSCAR A. NOLLE TRUST, ) ) Appellants, ) Appeal from the Circuit Court of ) St. Charles County vs. ) ) LINDENWOOD FEMALE COLLEGE ) Honorable Richard K. Zerr d/b/a LINDENWOOD UNIVERSITY, ) ) Respondents. ) Filed: November 18, 2014

Introduction

D. Wayne Mayer, acting in his capacity as trustee of the John J. Stock Trust, and Ronald

A. Nolle, acting in his capacity as trustee of the Oscar A. Nolle Trust (collectively, “Trusts”),

appeal the trial court’s judgment in favor of Lindenwood University on its action for a judgment

declaring that the proposed redevelopment of the Trusts’ property would not constitute a breach

of the lease or waste. The Trusts also appeal the trial court’s judgment in favor Lindenwood on

the Trusts’ action seeking damages for breach of the lease and waste. Because Mr. Mayer and

Mr. Nolle, who are not licensed attorneys, filed the notice of appeal as trustees on behalf of the

Trusts, and thereby engaged in the unauthorized practice of law, we dismiss the appeal. Factual and Procedural Background

The John J. Stock Trust and Oscar A. Nolle Trust each own an undivided one-half

interest in land located at 2000 First Capital Drive (Property) in St. Charles. In December 1956,

the Trusts executed a ninety-nine year lease agreement (Lease) with East Grand Realty Co.

The Lease granted the lessee broad authority to use the property “for any lawful purpose .

. . for and during the term of Ninety-nine (99) years commencing on the First day of December,

and ending on the Last day of November, 2055 . . . .” The Lease provided the lessee:

. . . the sole exclusive right to erect, build, repair, change, alter or otherwise construct such buildings, appurtenances, or other improvements for commercial use as the Lessee in its sole discretion may determine, so long as same are in no instance used for an unlawful purpose, and so long as the value of such improvements shall not be diminished to less than One Hundred Thousand Dollars ($100,000.00) as the result of such work.

In consideration for the leasehold rights, the lessee agreed to pay the Trusts $6,000 per year in

rent and to construct “one or more commercial type buildings of sound construction . . .which . . .

shall cost an aggregate minimum of One Hundred Thousand Dollars ($100,000.00). . . .”1

In regard to forfeiture, the Lease stated that “upon failure by Lessee . . . to keep and

perform any of the [] covenants, conditions, agreements, and stipulations herein contained . . .

the Lessors may cause a forfeiture of this lease and right of reentry into the demised premises, by

serving notice of such forfeiture and right of reentry upon the Lessee . . . .” Such notice “shall

state the cause or grounds for which the right of forfeiture and reentry is claimed” and “shall be

mailed . . . at least six (6) months before the same shall authorize said forfeiture or reentry by

Lessors . . . .”

1 The Lease provided for the removal of existing structures on the Property, which included a one-story corner building, two residences, a steel garage, and underground storage tanks and oil equipment. 2 Between January 1957 and 1960, East Grand Realty removed the then-existing structures

from the Property and constructed a 15,000-square-foot commercial building (Original

Building). The Original Building housed a Kroger Grocery Store and later Hackmann Lumber

Co. After Hackmann Lumber vacated the Property in 2003, the Original Building remained

unoccupied.

In December 2006, East Grand Realty assigned the Lease to Lindenwood. The Property

was one of sixty parcels of land, totaling over thirty acres, upon which Lindenwood planned to

construct a mixed-use development called “University Commons” (Development).

Lindenwood’s plans included demolishing the Original Building and constructing a new building

– a free-standing, multi-tenant 12,600-square-foot commercial structure (New Building) – on the

Property. In Spring 2011, Lindenwood applied for various construction and demolition permits

from the City of St. Charles.

On May 17, 2011, the Trusts sent the first in a series of letters to Julie Mueller,

Lindenwood’s vice president for operations and chief operating officer. In the letter, the Trusts

accused Lindenwood of breaching the Lease, requested proof that Lindenwood had insured the

Property “in compliance with the terms of the Lease,” and demanded that Lindenwood either

“voluntarily terminate the lease” or “purchase [] our fee simple interest in the property. . . .” Ms.

Mueller responded by letter on May 28, 2011 and provided proof of insurance coverage for

2011. Ms. Mueller also communicated Lindenwood’s position that: “[A]s long as rents are paid

and your heirs receive possession of the tract in 2055 with a commercial building on it worth at

least $100,000, the terms of the lease are satisfied.” The parties exchanged several more letters

over the next two years. Despite the Trusts’ objections, Lindenwood demolished the Original

Building in June 2012.

3 On May 9, 2013, the Trusts erected a “No Trespassing Sign” on the Property. In

response, Lindenwood filed a petition in the Circuit Court of St. Charles County seeking a

judgment “[d]eclaring that Lindenwood’s development of the [Property] and accompanying

change, alteration and/or rebuilding of the Original Building” constituted neither breach of the

Lease nor waste. On the same day, the Trusts filed a petition for breach of lease and a motion for

preliminary injunction. At the Trusts’ request, the trial court consolidated the cases.2

The trial court conducted a bench trial in July 2013 and entered judgment in favor of

Lindenwood on August 16, 2013. In its thirty-five-page order and judgment, the trial court

found that “Lindenwood was contractually allowed to remove the Original Building because

there is no express restriction against doing so, and because the Original Building will be

replaced with a building that is indisputably worth more than $100,000.”3 The trial court also

concluded that the Trusts failed to demonstrate that the Development “will cause waste to their

reversionary interest or the fair market value of the [Property].” Finally, the trial court rejected

the Trusts’ claims for breach of the Lease because: (1) the Trusts did not demand an inspection

of the Property, identify the major repairs the Trusts claimed were necessary, and provide the

required six-month notice that Lindenwood would breach the lease on a specific date if it failed

to cure the alleged breaches; (2) Lindenwood provided the Trusts proof of insurance upon

2 On June 6, 2013, Lindenwood filed a motion for temporary restraining order against the Trusts. The following day, the trial court entered an “agreed preliminary injunction” stating that the Trusts “are enjoined and restrained from depriving Lindenwood of full possession and use of the premises by seeking to expel Lindenwood, making criminal allegations of trespass against Lindenwood and/or physically attempting to bar or interfere with Lindenwood’s proposed construction on and development of the [Property].” 3 Specifically, the trial court found the New Building “will add over $1.6 million in current fair market value to the Premises” and “will increase [the Trusts’] reversionary interest by over 20% . . .

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D. Wayne Mayer, Trustee, John J. Stock Trust and Ronald J. Nolle, Trustee, Oscar A. Nolle Trust v. Lindenwood Female College d/b/a Lindenwood University, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-wayne-mayer-trustee-john-j-stock-trust-and-ronald-j-nolle-trustee-moctapp-2014.