Doctor's Associates, Inc. v. Duree

30 S.W.3d 884, 2000 Mo. App. LEXIS 1456, 2000 WL 1459763
CourtMissouri Court of Appeals
DecidedOctober 3, 2000
DocketNo. ED 77315
StatusPublished
Cited by9 cases

This text of 30 S.W.3d 884 (Doctor's Associates, Inc. v. Duree) 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
Doctor's Associates, Inc. v. Duree, 30 S.W.3d 884, 2000 Mo. App. LEXIS 1456, 2000 WL 1459763 (Mo. Ct. App. 2000).

Opinion

MARY RHODES RUSSELL, Judge.

David M. Duree (“Attorney”) appeals from a judgment in the Circuit Court of the City of St. Louis registering a Kansas judgment as a foreign judgment pursuant to Rule 74.14. Attorney challenges the judgment’s registration against him for $408,445.25 in sanctions. We affirm in that no grounds exist to deny the foreign judgment’s registration.

This case has a long and storied history stemming back to an action in the Kansas state courts. We recount only those portions of the action that are relevant to the present appeal and necessary for a full understanding of the case.

In 1990, the owner of a Subway franchise, Doctor’s Associates, Inc. (“Subway”), filed suit in Kansas against two persons (“Franchisees”) seeking to recover unpaid franchise royalties and other arrearages. Franchisees hired Attorney as lead counsel and he was admitted pro hac vice in Kansas. Franchisees filed amended counterclaims against Subway, one of which was [886]*886drafted by Attorney and contained allegations of fraud and a request for punitive damages. In support of the counterclaim, Attorney had an accountant (“CPA”) prepare an amended tax return for the Franchisees.

A Kansas trial court granted summary judgment in favor of Subway, ruling that Franchisees could not prove that the alleged fraud caused their losses. This ruling was upheld by the Kansas Court of Appeals. See Subway Restaurants, Inc. v. Kessler, 931 P.2d 1270 (Kan.App.1997).

The Kansas trial court, pursuant to a motion, ordered a $5,250 sanction against Attorney and his co-counsel for “unfounded” impropriety allegations made against Subway.

Subway moved to further sanction Attorney and his co-counsel in the amount of $408,445.25, representing Subway’s fees and costs incurred. The court sanctioned Attorney in that amount and revoked his pro hac vice status. The memorandum opinion stated that “[Attorney] deliberately caused to be prepared a false tax return for use in this litigation.”

Attorney filed a motion to amend the sanction award. Concerned about her continuing objectivity, the Kansas trial judge recused herself prior to hearing the motion because of an ex parte conversation she had with an attorney unconnected with the case.

The case was reassigned to another judge, who presided over a hearing on Attorney’s amended motion to alter or amend the judgment. A full evidentiary hearing was held examining the original judge’s recusal. It was found that a measured decision in the case was reached and there was no influence from the ex parte conversation. The trial court instructed Subway to prepare a journal entry, similar to the memorandum opinion, which was to serve as a judgment in the case.

Attorney appealed to the Kansas Supreme Court, which affirmed the decision of the trial court. See Subway Restaurants, Inc. v. Kessler, 266 Kan. 433, 970 P.2d 526 (1998). The Kansas Supreme Court held that Attorney was not denied due process because of the original judge’s failure to immediately recuse herself after her ex parte conversation. The court held that the original judge wrote the majority of her opinion prior to her ex parte conversation and was candid with the court and the parties about her impartiality in deciding the motion to award sanctions. In addition, the court found there was substantial competent evidence to support the judge’s decision awarding sanctions.

Thereafter, Subway registered the Kansas judgment with the Circuit Court of the City of St. Louis. Since that time, both Attorney and Subway have filed a litany of motions in Missouri; however, we will mention only those relevant to this appeal.

Attorney sought a stay of the judgment’s enforcement pending resolution of its appeal in the Kansas Supreme Court, which was denied by the Missouri trial court. Attorney next filed a motion to dismiss and alternative motion for summary judgment on the grounds of release, which was also denied.

Attorney filed a petition for a writ of prohibition and/or mandamus in both this court and the Missouri Supreme Court, seeking relief from an order directing him to comply with Subway’s discovery requests regarding assets he held. Both petitions were denied.

Next, Attorney filed a motion to vacate all prior orders entered in the case and for a refund of previously garnished funds. Attorney’s motion to vacate was predicated on the fact that Subway had registered the memorandum opinion as the judgment in the case and, under Kansas law, this was not considered a judgment.

Realizing prior counsel in the litigation had made a mistake, Subway then sought leave to register the journal entry from Kansas as a substituted foreign judgment. The Missouri trial court entered a judgment vacating registration of the memo[887]*887randum opinion from Kansas and quashing all garnishments and writs emanating therefrom. The court, however, granted Subway’s motion for leave to register the Kansas journal entry as a judgment.

Attorney timely filed his notice of appeal, challenging that part of the Missouri judgment registering the Kansas judgment. Attorney raises five points on appeal.

Our standard of review is governed by the third prong of Murphy v. Carron, 586 S.W.2d 30, 32 (Mo. banc 1976). We determine whether the trial court erroneously declared or applied the law. Id. The trial court’s decision that the Kansas judgment should be registered in Missouri as a foreign judgment, is a legal conclusion and as such is not binding on appeal. Anchor Centre Partners, Ltd. v. Mercantile Bank, N.A., 803 S.W.2d 23, 32 (Mo. banc 1991). We, therefore, review the judgment de novo after independently considering the evidence and reaching our own conclusions. Landvatter Ready Mix, Inc. v. Buckey, 963 S.W.2d 298, 301 (Mo.App.1997).

State courts must accord full faith and credit to the valid judgments of other states. In re Storment, 873 S.W.2d 227, 230 (Mo. banc 1994). Judgments from a court of competent jurisdiction of a sister state are presumed valid. In Interest of K.P.B., 625 S.W.2d 692, 694 (Mo.App.1981). Absent a showing to the contrary, we presume that the court had both personal and subject matter jurisdiction and that it followed its laws and entered a valid judgment. Id. The burden of proof is on the party asserting the invalidity of the judgment. Id.

There are only three grounds recognized for refusing to give full faith and credit to a sister state’s judgment: (1) lack of jurisdiction over the subject matter; (2) failure to give due notice to the judgment debtor; or (3) fraud in the concoction or procurement of the judgment. Storment, 873 S.W.2d at 230. This court will not inquire into the merits, logic, consistency, or validity of the underlying judgment. Waterloo Lumber Co. v. Gardner, 806 S.W.2d 513, 515 (Mo.App.1991).

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Bluebook (online)
30 S.W.3d 884, 2000 Mo. App. LEXIS 1456, 2000 WL 1459763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doctors-associates-inc-v-duree-moctapp-2000.