Frostwood Drugs, Inc. v. Fischer & Frichtel Construction Co.

352 S.W.2d 694, 1961 Mo. LEXIS 502
CourtSupreme Court of Missouri
DecidedDecember 11, 1961
Docket48452
StatusPublished
Cited by14 cases

This text of 352 S.W.2d 694 (Frostwood Drugs, Inc. v. Fischer & Frichtel Construction Co.) 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
Frostwood Drugs, Inc. v. Fischer & Frichtel Construction Co., 352 S.W.2d 694, 1961 Mo. LEXIS 502 (Mo. 1961).

Opinion

COIL, Commissioner.

Frostwood Drugs, Inc. brought an action against Fischer & Frichtel Construction Company, Fischer & Frichtel, Inc., James S. Kelly, and Blair Balk. In the first count Frostwood sought to have specifically performed an alleged agreement between it and Fischer & Frichtel Construction Company to enter into a lease. In the second count Frostwood sought $11,000 actual and $150,000 punitive damages against Kelly and Balk for the alleged reason that each had maliciously persuaded Fischer & Frichtel Construction Company to breach its agreement with Frostwood. At the close of appellant’s (plaintiff’s) evidence the trial court sustained respondents’ motions to dismiss and entered a judgment from which Frost-wood has appealed.

Appellant’s second amended petition averred that after June 12, 1959, the Fischer & Frichtel companies entered into a written agreement with it “whereby said defendants agreed to lease to plaintiff certain premises in Carrollton Subdivision Shopping Center situated in the City of Bridgeton, St. Louis County, Missouri, for use by plaintiff as a drug store; that a true copy of such agreement is attached hereto as Plaintiff’s Exhibit A and incorporated herein by reference.

“3. That plaintiff and defendants Fischer & Frichtel Construction Company and Fischer & Frichtel, Inc. further agreed that such lease and plaintiffs occupancy of said premises would otherwise be the same as the lease and occupancy by plaintiff under a lease between plaintiff and said defendants of premises at Frostwood Subdivision Shopping Center, a true copy of which lease is attached hereto as Exhibit B and incorporated herein by reference; * * *

“6. That attached hereto as plaintiff’s Exhibit C is a draft of a lease embodying the provisions agreed to between plaintiff and defendants Fischer & Frichtel Construction Company and Fischer & Frichtel, Inc.”

Respondents, inter alia, asserted the applicable section of the statute of frauds, Section 432.010 RSMo 1959 and V.A.M.S. That section provides in part: “No action shall be brought to charge * * * any person * * * upon any contract made for the sale of lands, tenements, heredita-ments, or an interest in or concerning them, or any lease thereof, for a longer time than one year, * * * unless the agreement upon which the action shall be brought, or some memorandum or note thereof, shall be in writing and signed by the party to be charged therewith, or some other person by him thereto lawfully authorized, * * *."

Herbert Sokolik and Eugene Cooper each owned 49 of the 100 shares of Frost-wood, Inc. Sokolik had been designated Frostwood’s representative as to the matters here in question. Frostwood was lessee in a 1955 lease (Exhibit B mentioned in paragraph 3 of the petition quoted above) wherein Fischer & Frichtel, Inc., had leased to Frostwood a drugstore location in the shopping center of the Frost-wood subdivision which had been a project of Fischer & Frichtel Construction Company. Prior to the end of 1955 and at times during 1957 and 1958 representatives of Fischer & Frichtel made known to Soko-lik and Cooper that the company intended to construct the Carrollton Subdivision and *696 shopping center and, in a general way, the plans therefor were discussed. In September 1958 it was suggested that Fischer & Frichtel soon would be ready to discuss with Sokolik a drugstore lease in the Car-rollton shopping center. Frostwood, through Sokolik, at all times evidenced a desire to discuss such a lease. Tentative plans for and, in March 1959 some sketches of, Carrollton were shown to Sokolik. At a May 1959 meeting, instituted by Edward Fischer of Fischer & Frichtel and attended by Sokolik, an exterior prospectus of the shopping center and plat of the area were displayed and later Fischer furnished So-kolik a “Blue Book” which depicted the plans for the subdivision and shopping center and indicated the location of the drugstore.

At a meeting late in May or early in June at Frostwood drugstore, attended by representatives of Fischer & Frichtel, Sokolik, and at times Cooper, the matter of a lease for the proposed drugstore area was discussed. Sokolik suggested an area of 4,500 square feet instead of the 6,000 shown, with an arrangement for future expansion; Frostwood’s financial statement was requested, and the matter of Frostwood guarantors for any lease which might be executed was mentioned. Mr. Sokolik testified that at that same meeting or at another in early June, Mr. Fischer said “that he would be agreeable to a lease, that of a dollar and seventy-five a square foot, four and a half per cent override; terms of ten years with two five-year options, and that the other terms of the lease would be the same as those at Frostwood” and that Fischer was referring specifically to the Fischer & Frichtel 1955 lease to Frostwood.

A day or two after June 12, 1959, Frost-wood received the following letter from Fischer & Frichtel which Sokolik “accepted,” as indicated, in July or August of 1959, and thereafter delivered to Mr. P'ischer with the request that the requirement for lease guarantors be eliminated:

“June 12, 1959
“Mr. Herb Sokolik
“Frostwood Drugs, Inc.
“8340 Frost Avenue
“Berkeley 21, Missouri
“Dear Sir:
“In reference to the proposed lease to be executed between Frostwood Drugs, Inc. and Fischer & Frichtel Construction Co. for the Carrollton drugstore, this is to advise that we are agreeable to a lease on the following terms:
“1. Area of store to be 4,500 feet, store having an approximate frontage of 60 feet by a depth of 75 feet.
“2. Rental to be $1.75 per square foot.
“3. Term of the lease to be ten years and two consecutive five-year options.
“4. Override to be calculated at 4½% of gross sales, with a minimum annual rental of $1.75 per square foot.
“Provisions for expansion to approximately 6,000 square foot store are to be handled in this manner: An adjoining space containing approximately 1500 square feet is to be leased in such a way that it can be made available to you three years from the date of your occupancy, providing a one-year written notice is given.
“It is our understanding that the group of doctors proposing the hospital clinic in the Carrollton commercial area intend to have a pharmacy. However, in our discussion with them, they have indicated that they would be willing to discuss with the operator of the drug store, some arrangement whereby their pharmacy might be operated by you. However, we do not wish to make this a condition of agreement.
“It is understood that the signature of a third party as ‘Guarantor’ will be required on the lease. Naturally, this letter of agreement is conditioned on *697 ⅛⅞ acceptability by Fischer & Frich-tei Construction Co. of this guarantor.

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Bluebook (online)
352 S.W.2d 694, 1961 Mo. LEXIS 502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frostwood-drugs-inc-v-fischer-frichtel-construction-co-mo-1961.