Gillen v. Bayfield

46 S.W.2d 571, 329 Mo. 681, 1932 Mo. LEXIS 756
Supreme Court of Missouri·Decided February 11, 1932·Published·Cited by 24 cases

Opinions

This is an action for damages for breach of an alleged contract to sell plaintiff a 40 per cent interest in a hotel corporation and employ him as manager. *Page 682

Defendant, on January 9, 1925, entered into a written contract to purchase for $230,000 from the owner, Mr. Sodini, all the capital stock of the Majestic Hotel Company, which operated a hotel in St. Louis. Defendant paid $5,000 in cash on the purchase price, and was required by the contract to pay $100,000 in cash on February 1st, and give notes totalling $125,000, payable $1500 per month for the balance. February 1st came on Sunday and defendant claims that the contract required settlement on Saturday, January 31st. (The contract was not in evidence). Defendant had previously talked to plaintiff about going into this deal. They had looked over the hotel together; gone through its books; and checked up the business it was doing. They met again in St. Louis on the day defendant made the contract with Sodini. Plaintiff owned a one-half interest in a hotel in Wichita, Kansas, and could only get the money to pay one-half of the cash payment by selling it.

On the day defendant made the contract with Sodini he wrote out the proposition he made to plaintiff, which was:

"I agree to sell to Mr. Charles Gillen 50% of the capital stock of the Majestic Hotel Corporation of St. Louis, Missouri, at the same price and terms that the stock is sold to me by Mr. Sodini; Mr. Charles Gillen agrees to pay his 50% of the purchase price in cash, and 50% of the working capital. The deal is to be closed February 1, 1925. But Mr. Gillen must notify me that he will take the stock as above outlined not later than the 20th of January, 1925. Salaries to be $950.00, as follows: $650.00 — $300.00 per month. Mr. Gillen $650.00 and Mr. Bayfield $300.00, and railroad fare to and from Terre Haute, Indiana. Mr. Gillen to have rooms and board for himself and family.

"(Signed) W. BAYFIELD."

Defendant was very anxious for plaintiff to go into the deal, but plaintiff either was doubtful about going into it or was unable to make arrangements to raise the money. Defendant sent plaintiff letters and telegrams urging him to go ahead with the deal and offering to help him raise the money. The following were some of the telegrams:

January 12, 1925: "Terre Haute, Indiana. To Chas. Gillen. `Please wire if you are sure of going in on the Majestic. Have several parties anxious to join me. Prefer you but would like to know. Please wire. W.E. Bayfield, Deming Hotel."

January 16, 1925: "If you would prefer not to buy in St. Louis it will be OK with me, but please let me know as soon as possible. W.E. Bayfield."

January 20, 1925: "If I must put up Ten Thousand Dollars more than my share, will expect stock for it, giving you contract to purchase it at cost price. Am willing to advance this, but must not be put off again, time is too short. W.E. Bayfield." *Page 683

January 21, 1925: "I promised to give you the opportunity to buy with me; if you can't make it go, let me know. I have sold enough stuff to take my half. If I have to finance the whole, must know, as the market is changing each day. In answer to your letter just received, hope you can make it, but let me know today, Wednesday, sure. I can't take further chances. W.E. Bayfield."

There were two other telegrams on January 21st by which defendant arranged for plaintiff to meet him at Terre Haute, Indiana, on January 22nd. At that time plaintiff, definitely, advised defendant that "he would be short, in raising enough cash to buy a half interest, because he would have to take some notes" to make a sale of his Kansas hotel interest. Defendant then agreed to let plaintiff in the deal with a purchase of less than half of the stock. Defendant signed and delivered to plaintiff the following proposition, which plaintiff claims was a modification of the proposition of January 9th, to-wit:

"This agreement made and entered into this 22nd day of January, 1925, by and between W.E. Bayfield, of Terre Haute, Indiana, and Charles Gillen, of Wichita, Kansas; Mr. W.E. Bayfield having purchased the entire capital stock of the Majestic Hotel Company, a corporation organized under the laws of the State of Missouri, this stock being the entire capital stock representing the ownership of the Majestic Hotel, St. Louis, Missouri.

"Mr. Charles Gillen desires to purchase a portion of the stock of the Majestic Hotel, and Mr. W.E. Bayfield agrees to sell to Mr. Charles Gillen any portion of the stock up to 50% and not more than 50% of the stock, upon the following conditions:

"Mr. Charles Gillen is to purchase the stock at the same price and under the same conditions that Mr. W.E. Bayfield has purchased the aforesaid stock.

"Mr. Gillen is to have the management of the hotel and give it his entire time and personal supervision at a salary mutually agreed upon. [Here follow provisions concerning the management of the hotel and for plaintiff to sell out to defendant in case of disagreement.]

"This agreement to sell stock to Mr. Charles Gillen is subject to an agreement entered into by Mr. W.E. Bayfield on January 9, 1925, with Mr. Harry Sodini, it being understood that if Mr. W.E. Bayfield cannot effect this deal with Mr. Harry Sodini, in that event this agreement would become null and void and binding in no way to Mr. W.E. Bayfield. This agreement and conditions of sale are binding upon Mr. Charles Gillen, his heirs and assigns.

"(Signed) W.E. BAYFIELD. "(Witness) GEORGE P. KOHLER." *Page 684

While this written proposition did not specify any certain amount of stock which plaintiff was to take, both parties claim that it was expected that defendant, if he came in at all, would take 40% of it and that $40,000 was the amount he undertook to raise. Up to this point, the evidence is harmonious as to the facts, but the parties violently disagree as to what afterward transpired.

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Gillen v. Bayfield, 46 S.W.2d 571, 329 Mo. 681, 1932 Mo. LEXIS 756 (Mo. 1932).

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