Hart v. Midkiff

321 S.W.2d 500
CourtSupreme Court of Missouri
DecidedMarch 9, 1959
Docket46190
StatusPublished
Cited by35 cases

This text of 321 S.W.2d 500 (Hart v. Midkiff) 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
Hart v. Midkiff, 321 S.W.2d 500 (Mo. 1959).

Opinion

STORCKMAN, Presiding Judge.

Plaintiff’s action is concerned with the •establishment and operation of a drayage business in the City of St. Louis. She sued in three counts but dismissed the second with prejudice during the trial. As to Count 1, the trial court, at the request of the defendants, directed a verdict in favor of plaintiff Lorene Hart and against the defendant E & L St. Louis Drayage Co., Inc., in the sum of $183.80, but in favor of the other defendants, John Midkiff, Walter O. Pfeiffer, and Cartage Equipment Co., Inc. On Count 3, the jury found in plaintiff’s favor and against the individual defendants Midkiff and Pfeiffer in the sum of $13,000 actual damages and $3,500 punitive damages. The defendants Midkiff and Pfeiffer filed a joint motion, directed to Count 3 only, for judgment in accordance with their motion for a directed verdict or, in the alternative, for a new trial. The trial court overruled the motion for judgment but sustained the alternative motion for a new trial on the ground that the court erred in giving Instructions No. 2 and No. 6. The plaintiff appealed from the order granting a new trial.

The respondents undertake to justify the grant of the new trial on the ground of error in Instructions 2 and 6. They also contend that an action for fraud under Count 3 is no longer available to the plaintiff because she has accepted without objection the judgment directed on the contract action in Count 1, and further that the plaintiff did not make a submissible case of fraud or conspiracy. These contentions require a somewhat detailed examination of the pleadings and evidence since the parties are in general disagreement with respect to the legal effect of plaintiff’s pleadings as well as the evidence.

Count 1 of the amended petition alleged that a trucking business belonging to plaintiff’s former husband, Edward C. Hart, doing business as E & L Delivery Service, and managed by her, was assigned to the plaintiff by Mr. Hart on January 14, 1954; that on or about January 1, 1954, the defendants Midkiff and Pfeiffer “approached plaintiff with the purpose of making use of her knowledge, ability and contacts to en *502 gage in the drayage business”; that the individual defendants organized E & L St. Louis Drayage Co., Inc., to operate the drayage business and Cartage Equipment Co., Inc., to hold title to the trucks and equipment to be rented to the drayage company; that the defendants hired the plaintiff at an agreed salary of $72 per week, plus 3 per cent of the gross revenue of the drayage company for a period of one year, and promised to raise her salary after two months to $1.80 per hour, and further agreed to pay her 20 per cent of the net profits as long as the business existed; that defendants further agreed to rent one-half of a garage owned by the plaintiff at a monthly rental of $125 and a room in her residence at $30 per month beginning January 1, 1954; that at the time of the organization of the businesses, the plaintiff “controlled the procurement of certain valuable contracts for drayage with various railroads operating in the City of St. Louis,” which contracts were necessary to the operation of the newly formed business and were procured as a result of plaintiff’s good will and influence; that on or about June 1, 1954, the defendants, in violation of their agreement, discharged the plaintiff and without notice removed the businesses from plaintiff’s premises. The prayer of Count 1 was for salary in the amount of $172.80; rent, $250; commission on the estimated gross revenue from June 15, 1954, to December 31, 1954, $1,800; a share of the annual net profits, $3,000; the value of “plaintiff’s good will and valuable contacts,” $15,000; and the trade name E & L Delivery Service owned by plaintiff and appropriated by defendant “without permission or purchase,” $10,000. The total prayer of Count 3 was for $30,282.80.

Count 2 sought actual and punitive damages for defamation of character. Since it was dismissed by the plaintiff and has no bearing on this appeal, it need not be further noticed.

Count 3 by reference realleges all of the allegations of Counts 1 and 2 and further avers “that all of the above actions were unlawfully in the furtherance of a conspiracy by the defendants in and by the use of their offices in the defendant corporations and as individuals, jointly, and each of them were committed from their beginning and inception with the aim and intent by defendants of defrauding plaintiff by making-use of plaintiff’s knowledge, experience, contacts and capabilities and defendants knew, intended and planned that throughout the duration of plaintiff’s employment that they would so use plaintiff and then discharge her, thereby defrauding her of proper payment for these assets; that all of defendants acts constituted a continued and purposeful conspiracy among the defendants and that said course of conduct was pre-conceived, malicious, wanton and wilful, all to the plaintiff’s actual damage of $30,282.80.” Punitive damages in the sum of $25,000 were also prayed for in Count 3.

The defendants’ joint answer admitted' the organization of the corporate defendants and that the individual defendants-were the principal officers and majority stockholders; that the plaintiff was employed by the defendant E & L St. Louis Dray-age Co., Inc., as an employee but that she was discharged for just cause; that the-drayage company rented from plaintiff a. garage located at 511 Baden Street; that the tenancy was terminated by the plaintiff but that all rent due thereon was paid; and further alleged that during the course of' her employment the plaintiff wrongfully solicited business from the defendants’ customers for her own personal gain.

The defendants filed a motion for a directed verdict at the close of plaintiff’s case, but offered no evidence. Plaintiff’s evidence consisted of the testimony of the-plaintiff and Mr. Hart and several documentary exhibits.

From the evidence it appears that Edward Hart started a trucking business in July, 1946, under the name of E & L Delivery Service; he solicited business and drove one of the tracks. His wife Lorene, the plaintiff herein, worked with him as. *503 dispatcher of the delivery trucks. He testified she was one of the best dispatchers in the City. The business name was composed of the first initial of the first names of Mr. & Mrs. Hart. The business was conducted from property on Baden Street, owned by Mr. Hart. A room in the residence had been converted into an office; also there were garage facilities on the premises. The business consisted chiefly of hauling freight by motor trucks to and from railroad loading docks. It appears that if a drayage company was able to bring a sufficient volume of business to the railroad loading dock, the railroad would enter into a contract with such an operator to pay the drayage charges on the freight so delivered. Much was said about these contracts, hut their precise nature was not made clear. However, it is sufficient for our purpose that the evidence tended to prove that these railroad drayage contracts and contacts with shippers and consignees were valuable and necessary to the successful and profitable operation of this kind of hauling service. The E & L Delivery Service had secured contracts with all the railroads in St. Louis and East St. Louis.

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Bluebook (online)
321 S.W.2d 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hart-v-midkiff-mo-1959.