DIERKER ASSOCIATES, DC, PC v. Gillis

859 S.W.2d 737, 1993 WL 213962
CourtMissouri Court of Appeals
DecidedJune 22, 1993
Docket62047
StatusPublished

This text of 859 S.W.2d 737 (DIERKER ASSOCIATES, DC, PC v. Gillis) 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
DIERKER ASSOCIATES, DC, PC v. Gillis, 859 S.W.2d 737, 1993 WL 213962 (Mo. Ct. App. 1993).

Opinion

859 S.W.2d 737 (1993)

DIERKER ASSOCIATES, D.C., P.C., Plaintiff, and
Carol A. Dierker, and Bernard F. Dierker, Plaintiffs/Appellants,
v.
Jay D. GILLIS, Defendant/Respondent, and
Jacquelyn R. Gillis, Defendant.

No. 62047.

Missouri Court of Appeals, Eastern District, Division Four.

June 22, 1993.
Motion for Rehearing and/or Transfer Denied July 28, 1993.
Application to Transfer Denied September 28, 1993.

*740 Frank Joseph Niesen, Jr., St. Louis, for plaintiffs-appellants.

Gregory S. Kessler, Daniel P. Card, II, Love, Lacks & Paule, Clayton, for defendant-respondent.

Motion for Rehearing and/or Transfer to Supreme Court Denied July 28, 1993.

CRANE, Judge.

Defendant J.D. Gillis filed a counterclaim against plaintiffs seeking damages for breach of contract and fraudulent misrepresentation arising out of plaintiffs' failure to complete the purchase of his chiropractic practice and office equipment. The jury returned a verdict in his favor and awarded him $145,020 in damages on the breach of contract claim and $88,900 actual damages and $145,020 punitive damages on the fraudulent misrepresentation claim. The *741 trial court entered judgment in accordance with the verdicts, overruled plaintiffs' posttrial motions and granted Gillis prejudgment interest in the amount of $86,286.90 on the breach of contract claim. Plaintiffs appeal from this judgment. They challenge the submissibility of both claims, the instructions given on both claims, the reception of the verdicts, and the award of prejudgment interest. We affirm the judgment on the breach of contract claim, the award of prejudgment interest, and the finding of liability on the fraudulent misrepresentation claim, but set aside the damage award on the fraudulent misrepresentation claim and reverse and remand for new trial on the issue of damages on the fraudulent misrepresentation claim.

FACTUAL BACKGROUND

Defendant Jay D. Gillis is a licensed doctor of chiropractic medicine. He owned and operated a chiropractic clinic in St. Louis County known as the Gillis Back Pain Clinic (Gillis Clinic). His wife, Jacquelyn Gillis, was an employee of the Gillis Clinic. Plaintiffs Bernard and Carol Dierker, husband and wife, are both doctors of chiropractic medicine.

The Gillis Clinic, located near the Dierkers' home, averaged 30-35 patients per day. In early 1985 Jay Gillis decided to sell the clinic and move to Louisiana, where his son had opened a clinic.

Gillis had known the Dierkers for several years. Carol Dierker had once mentioned to Gillis that he should let her know if he was ever interested in selling his clinic. During the spring of 1985 Gillis called Carol Dierker about possibly selling his practice, and she stopped by to discuss the matter.

Gillis also listed his clinic for sale with a broker. That listing agreement specifically excluded any sale to the Dierkers. On May 15, 1985 the broker submitted to Gillis an offer for $180,000. This offer had several contingencies and provided that Gillis would finance part of the purchase price. At her request, Gillis allowed Carol Dierker to review the offer.

Gillis and the Dierkers began negotiations for the sale of the Gillis Clinic, including both the practice and the equipment. On July 20, 1985 the parties signed a sales agreement which provided for a $135,000 purchase price for the clinic plus an additional amount for equipment. Closing was to occur on August 1, 1985. Carol Dierker anticipated spending between $150,000 and $160,000 for the entire clinic.

In preparation for the closing Gillis arranged to have the Dierkers assume his lease and to cancel or transfer his utilities and insurance. Gillis also advised patients that his clinic was being transferred to the Dierkers.

On August 1, 1985 Carol Dierker told Gillis that they did not yet have the money to close, but that they would have it within a few days. On August 3, 1985 the Dierkers gave Gillis a partial payment of $2,000. On Sunday, August 4, 1985, Gillis and the Dierkers signed a second sales agreement. That agreement provided for a purchase price of $135,000 for the clinic with "equipment value to be determined from July 12, 1985 review." This agreement provided that it was "contingent upon financing." Gillis simultaneously signed a bill of sale and gave it to the Dierkers. Gillis assigned the lease and delivered the keys and possession of the clinic to the Dierkers. There was evidence that the parties had agreed that the total purchase price, including equipment, was $152,020. The Dierkers assured Gillis that they had the money but, because it was Sunday, they could not get it from their account. They told Gillis that they would pay the balance in a day or two.

The next day, August 5, the Dierkers began operating the clinic and assumed full control of its operation. The Dierkers informed patients that it was their clinic and billed and collected for services rendered during August. The Dierkers also changed the locks on the clinic. Gillis left for Louisiana. His wife remained behind to collect the final payment and help with the transfer of the patients.

The Dierkers did not pay the balance of the purchase price. On August 9, 1985 the Dierkers gave Jacquelyn Gillis a signed *742 note stating their intent to close the deal and make final payment on August 14. The Dierkers failed to pay on that date, causing Gillis to return from Louisiana. On August 27 the Dierkers gave Gillis a check for $5,000 as a show of their good faith. The Dierkers operated the clinic until August 30, 1985. Gillis subsequently received notice that the August rent payment had not been made.

After another meeting in early September, the Dierkers wrote a check for $1,586 for the rent because they "were going to purchase the clinic." Several days later, Gillis was notified that the Dierkers had stopped payment on the check.

At trial Carol Dierker admitted that they had the money to complete the purchase. She also admitted that Gillis had fulfilled all his obligations under the agreement.

On September 25, 1985 the Dierkers entered into a contract to purchase a competing chiropractic clinic located across the street from the Gillis Clinic. This purchase was completed for cash on September 30, 1985.

Gillis was unable to sell his clinic. He attempted to run it himself by commuting from Louisiana on weekends. He also hired another chiropractor to run the clinic. These efforts were unsuccessful and the clinic eventually went out of business.

The Dierkers and plaintiff Dierker Associates, D.C., P.C., subsequently filed suit against Jay Gillis and Jacquelyn Gillis for breach of contract, quantum meruit, fraud and defamation. Jay Gillis filed a counterclaim against Bernard and Carol Dierker alleging breach of contract and fraudulent misrepresentation.

Trial began in the Circuit Court of St. Louis County on March 9, 1992. At the close of plaintiffs' case, the court granted Jacquelyn Gillis' motion for directed verdict on plaintiffs' claims against her. At the close of all the evidence, the court granted Jay Gillis' motion for directed verdict on plaintiffs' fraud and defamation counts. The trial court denied the Dierkers' oral motion for directed verdict.

The jury returned a verdict in favor of Gillis on the Dierkers' remaining counts and in favor of Gillis on his counterclaim. The jury awarded Gillis $145,020.00 on his breach of contract claim and $88,900.00 actual damages and $145,020.00 punitive damages on his fraudulent misrepresentation claim.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Allied Disposal, Inc. v. Bob's Home Service, Inc.
595 S.W.2d 417 (Missouri Court of Appeals, 1980)
Marti v. Economy Fire & Casualty Co.
761 S.W.2d 254 (Missouri Court of Appeals, 1988)
Midwest Materials Co. v. Village Development Co.
806 S.W.2d 477 (Missouri Court of Appeals, 1991)
Kincaid Enterprises, Inc. v. Porter
812 S.W.2d 892 (Missouri Court of Appeals, 1991)
Wiedower v. ACF Industries, Inc.
715 S.W.2d 303 (Missouri Court of Appeals, 1986)
Heberer v. Shell Oil Co.
744 S.W.2d 441 (Supreme Court of Missouri, 1988)
Addison v. Jester
758 S.W.2d 454 (Missouri Court of Appeals, 1988)
Shofler v. Jordan
284 S.W.2d 612 (Missouri Court of Appeals, 1955)
Estate of Gross v. Gross
840 S.W.2d 253 (Missouri Court of Appeals, 1992)
McRaven v. F-Stop Photo Labs, Inc.
660 S.W.2d 459 (Missouri Court of Appeals, 1983)
Denton Construction Co. v. Missouri State Highway Commission
454 S.W.2d 44 (Supreme Court of Missouri, 1970)
Clayton Brokerage Co. of St. Louis v. Pilla
632 S.W.2d 300 (Missouri Court of Appeals, 1982)
Miller v. Ranson and Company
407 S.W.2d 48 (Missouri Court of Appeals, 1966)
Crank v. Firestone Tire & Rubber Co.
692 S.W.2d 397 (Missouri Court of Appeals, 1985)
Maples v. Charles Burt Realtor, Inc.
690 S.W.2d 202 (Missouri Court of Appeals, 1985)
Berry v. Federal Kemper Insurance Co.
621 S.W.2d 948 (Missouri Court of Appeals, 1981)
Hudson v. Carr
668 S.W.2d 68 (Supreme Court of Missouri, 1984)
Ross v. Holton
640 S.W.2d 166 (Missouri Court of Appeals, 1982)
Dudeck v. Ellis
399 S.W.2d 80 (Supreme Court of Missouri, 1966)

Cite This Page — Counsel Stack

Bluebook (online)
859 S.W.2d 737, 1993 WL 213962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dierker-associates-dc-pc-v-gillis-moctapp-1993.