De Mayo v. Lyons

228 S.W.2d 691, 360 Mo. 512, 1950 Mo. LEXIS 615
CourtSupreme Court of Missouri
DecidedApril 10, 1950
Docket41504
StatusPublished
Cited by30 cases

This text of 228 S.W.2d 691 (De Mayo v. Lyons) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Mayo v. Lyons, 228 S.W.2d 691, 360 Mo. 512, 1950 Mo. LEXIS 615 (Mo. 1950).

Opinion

*514 ASCHEMEYER, C.

This appeal is from an order of the Circuit Court of Jiackson County, Missouri, denying appellants’ motion for an order of restitution in accordance with a mandate of this Court issued in DeMayo v. Lyons, 358 Mo. 646, 216 S. W. (2d) 436, where this Court reversed a judgment in favor of Frank DeMayo (plaintiff — now deceased) and against appellants (defendants). Appellants contend that a judgment for $33,669.69 *515 should have been entered' in their favor upon the motion for restitution.

The ease originated as a suit for an accounting upon a partnership for the purchase and sale of whiskey. A judgment in plaintiff’s favor for $22,004.09 was reversed by this Court on the ground that the contract between the parties was illegal and void since they were engaged in the business of selling intoxicating liquors without a license in violation of law. The facts relating to the transaction are more fully stated in the opinion of this Court upon the first appeal. DeMayo v. Lyons, supra.

The first appeal was taken without supersedeas bond so that there was no stay of execution upon the judgment in plaintiff’s favor. (Laws 1943, p. 392, Sec. 132; Mo. R. S. A. § 847.132.) While the appeal was pending, the plaintiff caused an execution to be issued and placed in the hands of the Sheriff of Jackson County, Missouri. Upon writ of garnishment issued in aid of the execution, the Commerce Trust Company of Kansas City delivered to the Sheriff Warehouse Receipt No. 2602 issued by the Adams Transfer and Storage Company to Ann Lyons, one of the appellants, for 853 cases of whiskey. Upon direction of the Sheriff, the warehouse company issued two warehouse receipts in lieu of receipt No. 2602. Receipt No. 2713, covering one-half of the whiskey, was issued in the name of plaintiff and delivered to him. Receipt No. 2714, covering the remaining one-half of the whiskey, was issued in the name of Leonard A. Lyons, one of the appellants. Acting under a general execution issued against Leonard A. Lyons, the Sheriff advertised and sold the whiskey covered by receipt No. 2714 to plaintiff,, who bid it in for $13,000.00. Subsequently, all of the whiskey covered by receipts Nos. 2713 and 2714 was withdrawn by plaintiff or persons to whom he had sold various quantities.

The foregoing facts were shown by appellants in support of their motion for restitution. Appellants’ evidence also showed that plaintiff had sold all but a small quantity of the whiskey obtained by him upon the execution and Sheriff’s sale and that he had received $25,987.00 upon such sales.

The judgment of this Court rendered upon the first appeal, reversing the judgment in plaintiff’s favor, provided, in part, “that the said appellants be restored to all things which they have lost by reason of the said judgment.” A certified copy of the judgment of reversal was, of course, incorporated in the mandate transmitted to the trial court. After, the mandate had been lodged in the trial court, appellants filed their motion for an order of restitution seeking to be restored to all things they had lost under the reversed judgment.

In denying the motion for restitution, the trial judge stated that restitution was not a matter of right but, rather, one within the discretion of the Court so that it ought to be denied in view of the *516 decision of this Court holding the contract between the parties to be illegal and void. The Court reasoned that the relief of restitution ought not to be granted appellants because “the law will leave transgressors, in the circumstances, where they place themselves.” This is essentially the position taken by respondents upon this appeal since respondents argue that restitution was properly denied because: (1) appellants are not entitled to any relief under the partnership contract which was held to be illegal and void, and (2) in any event, after the reversal of the prior judgment, the trial court was vested with discretion which it exercised properly in denying restitution.

The general rule is that, upon reversal of a judgment against him, the appellant -is entitled to restitution from the respondent of all benefits acquired.under the erroneous judgment during the pend-ency of an appeal. This rule has been followed in Missouri in many decisions. Restatement, Restitution, § 74; Freeman on Judgments, 5th Ed., § 1168, p. 2419; State ex rel. Abeille Fire Ins. Co. v. Sevier, 335 Mo. 269, 73 S. W. (2d) 361, 366; Aetna Ins. Co. v. Hyde, 327 Mo. 115, 34 S. W. (2d) 85, 88 and cases cited; Chicago Herald Co. v. Bryan, 195 Mo. 590, 596, 92 S. W. 906; Hurst Automatic Switch & Signal Co. v. Trust Co., 291 Mo. 54, 236 S. W. 58, 60; Warren v. Order of Railway Conductors of America, 199 Mo. App. 200, 201 S. W. 368; Colburn v. Yantis, 176 Mo. 670, 75 S. W. 653, 657. The right to restitution exists even though it is not expressly ordered by the appellate court upon the reversal of an erroneous judgment and a motion for restitution is a proper method of obtaining such relief in the trial court. State ex rel. Abeille Fire Ins. Co., supra; Aetna Ins. Co. v. Hyde, supra; Hurst Automatic Switch & Signal Co., supra; Colburn v. Yantis, supra.

Respondents argue that the Missouri decisions have not recognized the right to restitution in a case where the appellant, who seeks such relief, is a party to an illegal contract which is void and contrary to public policy. It should be apparent that appellants are not seeking relief under the contract which was held to be void. The motion for restitution is not an action to recover upon such contract. It is an effort to be restored to those things which plaintiff had taken from them under an erroneous judgment of the trial court. The benefits secured by plaintiff under this judgment were obtained by execution. The process of the. Court, issued under an erroneous judgment, was used to take property from the appellants and turn it over to plaintiff. The power and duty of the trial court to grant restitution under these circumstances is inherent and ‘ ‘ is. substantially the same which it exercises when its own process has been abused.” State ex rel. Abeille Fire Ins. Co. v. Sevier, supra, quoting with approval from Flemings v. Riddick’s Ex’r, 5 Grat. (Va.) 272, 50 Am. Dec. 119. The trial court should grant 'restitution “without *517 reference to the peculiar nature of the controversy which it had erroneously determined.” 2 R. C. L. 296, 297; Aetna Ins. Co. v. Hyde, supra; Flemings v. Riddick’s Ex’r, supra. An appellant is entitled to restitution even though he is under a moral duty or obligation to make the payment which an erroneous judgment has attempted to coerce. Restatement, Restitution, § 74 c. (Illustration 6.)

Respondents cite two cases in support of their contention that the trial court had discretion to refuse restitution to appellants. Neither of them are applicable. In Teasdale v. Stoller, 133 Mo. 645, 34 S. W. 873, the Court held that plaintiff had voluntarily paid a judgment pending an appeal.. When the judgment was reversed, plaintiff brought an action for money had and received to recover back his payment. It was held that, since the payment was voluntary, plaintiff could not recover unless he showed that he was equitably entitled to the repayment. In Baldwin v. Scott County Milling Co., 343 Mo. 915, 122 S. W.

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Bluebook (online)
228 S.W.2d 691, 360 Mo. 512, 1950 Mo. LEXIS 615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-mayo-v-lyons-mo-1950.