Ham v. Wenneker

659 S.W.2d 567, 1983 Mo. App. LEXIS 3615
CourtMissouri Court of Appeals
DecidedOctober 11, 1983
DocketNo. WD 34093
StatusPublished

This text of 659 S.W.2d 567 (Ham v. Wenneker) 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
Ham v. Wenneker, 659 S.W.2d 567, 1983 Mo. App. LEXIS 3615 (Mo. Ct. App. 1983).

Opinion

PRITCHARD, Judge.

The remaining plaintiff and sole appellant herein, Frank Ham, sued respondents, Wenneker, for recovery upon a promissory note given him for real estate commissions earned in the amount of $4,879.15, with 5½% interest per annum. Respondents’ counterclaim was dismissed with prejudice.

The note, dated January-, 1978, given by Wennekers to Ham, provides that they should pay the $4,879.15 with the interest on the unpaid balance on December 1 of each year until maturity, “with the entire unpaid balance of principal and interest being due and payable three (3) years from date; provided however, not withstanding the foregoing, the aforesaid principal and interest payments shall not be due until payment or payments are hereafter made on the One Hundred Seventy Thousand Dollar ($170,000.00) Promissory Note executed by CALVIN L. STEE made payable to DON L. HOPKINS dated November 30, 1977, * * [Italics added.] The note goes on to say that the makers, etc., severally waive presentment for payment, notice of nonpayment, protest and notice of protest, and diligence in bringing suit, extension of time for payment without notice, and that if the note is placed in the hands of an attorney for collection to pay the costs of collection including a reasonable attorney’s fee if collected by an attorney or by process of law.

The Stee note was made payable to Don L. Hopkins who assigned it to one George Lesko under an endorsement with recourse or a guaranty of payment restricted to George Lesko only. The Stee note, acquired by the Wennekers under circumstances hereinafter set forth, provided that it was secured by Tract 6-L, Laura E. Mun-day Survey A-233, Westway Addition, El Paso County, Texas [stipulated as consisting of 37.2 acres]. It was dated November 30,1977, and the principal was to be paid in 20 equal annual installments, plus annual interest, of $8,500.00 each, the first payment to be due on the same day of each succeeding year until paid in full. It was stipulated that Stee had made no payments of principal or interest on his note to the Wennekers while they held it, nor were any such payments made to Robert and Betty Harsh, the Wennekers’ assignees without recourse, as of April 22, 1981 (the date the cause was submitted on stipulation to the trial court).

The history of land purchases and sales culminating in the transfer of the Stee note to the Harshes is this: On September 15, 1977, Wenneker bought the Brine building in Sedalia, Missouri, for $175,000. Estil Nichols, an original plaintiff in this action, represented Wenneker in that purchase.

In December, 1977, Wenneker sold the Brine building to George Lesko, taking the $170,000 Stee note on Lesko’s assignment in which Lesko agreed with Wenneker that in the event of default in its payment he would on demand made by Wenneker or his assigns exercise all rights of recourse which he had against Don L. Hopkins to collect the balance due on the notes. Besides the [569]*569conveyance of the Brine building Wenneker also conveyed 85 acres in Macon County “free and clear”; three lots in Columbia; one lot in Bunceton; and one in Pilot Grove to Lesko. Lesko assumed two notes of Wenneker, $98,000 and $59,000, secured respectively by first and second deeds of trust on the Brine building.

In March, 1978, Wenneker assigned the Stee note to Harsh, in exchange for three tracts of land, without recourse, as stipulated. Attached to Exhibit C-2 (Lesko’s endorsement to Wenneker) is this notation: “Without recourse to the undersigned, without representation or warranty of any kind either express or implied in fact or in law, the undersigned hereby assigns this Promissory note to the holder thereof. (Signed) Ronald R. Wenneker.” The closing statements recite that the Harsh three tracts had these sale prices: 160 acres, $152,000; 80 acres, $84,000; and 120 acres, $70,000, a total of $306,000. There were encumbrance notes respectively on the three tracts in these amounts: 160 acres, $72,800-accrued interest, $389.00; 80 acres, $30,672-accrued interest, $217.26; and 120 acres, $24,500-ac-crued interest, $2,021.25, a total of principal and interest in the amount of $130,599.51. On these figures, this computes as a net equity in the properties of $175,400.49. The Stee note was recited to have accrued interest of $2,793.16, and the closing statement recites that $7,500 commission was paid direct, Wenneker’s testimony being that he paid it and some back taxes on the 120 acre tract in an unspecified amount. It thus appears that the net consideration to the Wennekers was about $4,892.67 less than the principal and interest of their Stee note assigned to Harshes, and the commission paid by the Wennekers.

Although Wenneker testified at trial that the Harsh properties were actually worth about one-half of the recited selling price, and that he believed he received only about $18,000 net for the transfer of the Stee note, the contract prices would seem to be the more reasonable. Besides, there is no issue presented as to the lack of or inadequacy of the consideration received for the note. It is clear, at least, that the Wennek-ers received something for their voluntary assignment without recourse of the Stee note to the Harshes. Wenneker’s receipt of consideration, or inadequacy thereof, is irrelevant to Ham’s claim on his note.

It is the contention of the Wennekers that even after they assigned the Stee note, they have the right to insist upon the condition of payment by Stee on his note before they are liable to Ham on his commission note, regardless of whom would be entitled to receive Stee’s payments. By their assignment to Harshes, the Wennekers have relieved themselves of liability of any recourse on the note by reason of any subsequent nonpayment by Stee. Furthermore, the Wennekers, by the assignment, without recourse, to Harshes, have relieved themselves of any personal right to require Stee to make payments on his note to them personally — his obligation to pay was thereafter to the holders of his note. The condition in Ham’s note was obviously for the benefit of the Wennekers solely, and by their own act of assignment of the Stee note, they have prevented the performance or caused the nonperformance of the condition of Stee’s payment to them. Under these circumstances there was no longer any vitality to the condition in Ham’s note, and the nonperformance of that condition by Stee, as to the Wennekers, is not a defense to Ham’s suit on his commission note. The Wennekers, of course, had a right to insist upon the condition of payment to them by Stee before they would be liable to Ham on his note, so long as they held Stee’s note, but since they assigned Stee’s note, they thereafter lost the right so to insist.

Even if the provision in the Wenneker note to Ham either be regarded as a true condition precedent of payment or merely a provision for the time of payment, Wenneker has by his conduct-the assignment without recourse of the Stee note-prevented or rendered its performance impossible as to the Wennekers. The general rule is stated in 17 Am.Jur.2d Contracts, Sec. 427, p. 882, “One who prevents or makes impossible the performance or happening of a condition [570]*570precedent upon which his liability by the terms of a contract is made to depend cannot avail himself of its nonperformance.

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Bluebook (online)
659 S.W.2d 567, 1983 Mo. App. LEXIS 3615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ham-v-wenneker-moctapp-1983.