Heiden v. General Motors Corp.

567 S.W.2d 401, 1978 Mo. App. LEXIS 2139
CourtMissouri Court of Appeals
DecidedMay 1, 1978
DocketNo. KCD 29195
StatusPublished
Cited by6 cases

This text of 567 S.W.2d 401 (Heiden v. General Motors Corp.) 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
Heiden v. General Motors Corp., 567 S.W.2d 401, 1978 Mo. App. LEXIS 2139 (Mo. Ct. App. 1978).

Opinion

WASSERSTROM, Judge.

Plaintiffs seek damages for fraud and deceit allegedly practiced upon them by defendant. Defendant moved to dismiss plaintiffs’ petition on the ground that it failed to state a claim upon which relief could be granted. The trial court sustained that motion with leave for plaintiffs to amend within 30 days. Plaintiffs declined to amend, and the trial court thereupon entered final judgment of dismissal with prejudice. Plaintiffs appeal. We affirm.

Plaintiffs’ petition can be summarized as follows. In a prior lawsuit, plaintiffs sought damages against defendant for personal injuries and loss of services arising from the alleged defective design of an automobile manufactured by defendant. Extensive depositions were taken in that personal injury action in the states of Missouri, Iowa and Michigan. The various court reporters submitted their bills for costs totaling $2,339.30, which were paid by plaintiffs and which were spread of record on the books of the circuit court. On May 14, 1976, the parties agreed upon a settlement, and their respective attorneys signed and filed with the circuit court a stipulation for dismissal “at defendant’s costs.”1 Defendant then remonstrated that the amount of costs reflected on the records of the circuit clerk were in excess of the amount permitted by statute, and at the insistance of defendant, the court administrator calculated the amount of deposition costs properly to be allowed under the statute and assessed those costs at $1,295.10.

Plaintiffs’ petition further alleges that no competent reporter is willing to handle depositions for the amount of the statutory scheduled fees; that all such reporters customarily charge higher fees and will not perform their services for the amounts prescribed by the statutory schedule; that there is a custom and practice for such higher charges by the reporters to be certified as deposition costs and to be taxed as court costs in the circuit court of Jackson County; and that when settlements are made and in negotiations for settlement the phrase “court costs” or “costs” means, in addition to the statutory prescribed fees for depositions, the additional amounts which are customarily charged by reporters. Plaintiffs go on to allege that they relied upon the custom and practice described and upon the belief that defendant also relied upon the said custom and practice; that defendant knew that plaintiffs so relied and intended that plaintiffs should believe that the phrase “at defendant’s costs” was being [403]*403used in the sense of the said custom and practice. Plaintiffs then further allege that by reason of the foregoing, defendant represented to plaintiffs that defendant had a present intention of performing the settlement contract in the sense of the custom and practice described, but that said representation was false in that defendant did not intend to pay the full $2,339.30 billed by the reporters, but instead intended to pay only according to the lower statutory schedule (eventually computed by the court administrator to be $1,295.10). Plaintiffs conclude their petition by alleging the actions described to have been fraudulent, for which they pray $1,000,000 compensatory damages and $5,000,000 punitive damages.

The sole question for determination is whether the allegations thus summarized state a cause of action for fraud. Plaintiffs argue that they do within the doctrine of Thieman v. Thieman, 218 S.W.2d 580 (Mo.1949); Dillard v. Earnhart, 457 S.W.2d 666 (Mo.1970); Brennaman v. Andes & Roberts Brothers Const. Co., 506 S.W.2d 462 (Mo.App.1974); and Klecker v. Sutton, 523 S.W.2d 558 (Mo.App.1975).

Essential to that argument is a showing that defendant did contract in accordance with the custom and usage alleged by the plaintiffs; for if defendant never bound itself to pay pursuant to the alleged custom, then there can be no implied representation to that effect upon which to base any fraud. As stated by plaintiffs themselves in their reply brief: “The question is whether respondent could and did agree (via the custom and practice) to pay the costs actually incurred by the appellants;” and as they state in another place in the same brief, “The question is * * * whether the custom and practice to pay the actual costs of depositions * * * was embodied in the settlement agreement * * *.” Stating the problem slightly differently, the basic question is “what did the parties agree?” This narrows down to an inquiry as to what the parties meant by the term “costs,” and specifically whether that term could be expanded through usage and custom to include something more than that included in the statutory schedule.

Costs did not exist at common law, and their allowance is a creature of statute. McClue v. Epsten, 492 S.W.2d 97 (Mo.App. 1973). The statute in this state which provides for deposition expenses to be allowed as costs is Section 492.590.2 That section contains a precise formula specifying just how deposition costs are to be computed.3

The employment in the May 14,1976 agreement of the term “costs,” without any further explicit definition, adopted by reference the statutory formula contained in Sec. 492.590. The rule in this respect is that statutes in force at the time and place of making a contract which affect its validity, performance, discharge, or enforcement, enter into and form a part of it as if they were expressly referred to or incorporated within the terms of the contract. Swabey v. Boyers, 274 Mo. 332, 203 S.W. 204 (1918); Lazare v. Hoffman, 444 S.W.2d 446 (Mo.1969); Curators of Central College v. Rose, 182 S.W.2d 145 (Mo.1944); Union Pacific [404]*404Railroad Co. v. Kansas City Transit Co., 401 S.W.2d 528 (Mo.App.1966); Lux v. Milwaukee Mechanics’ Ins. Co., 221 Mo.App. 999, 295 S.W. 847 (1927); De Hart v. School Dist. No. 39, St. Louis County, 214 Mo.App. 651, 263 S.W. 242 (1924); 17 Am.Jur.2d Contracts, Sec. 257, p. 654. A case which applied the rule under circumstances quite analogous to the one at bar is Webb-Kunze Const. Co. v. Gilsonite Const. Co., 281 Mo. 629, 220 S.W. 857 (1920). In that case, the parties disputed the proper manner in which to measure the amount of certain excavation work. Plaintiff relied upon a statutory formula for measurement. The court held that the statutory method of measurement was incorporated into the contract as a matter of law, absent any contrary provision of the parties. The opinion holds at 220 S.W. l. c. 859:

“The ‘cubic yard’ mentioned in the contract is controlled by the statute; it is a statutory cubic yard.
“The statute necessarily applies to contracts for making earth excavations, and must be read as a part of every contract of that character. Isenhour v. Barton County 190 Mo. 163, loc. cit. 173, 88 S.W. 759; Reed v. Painter, 129 Mo. 674, loc. cit. 680, 31 S.W. 919; Zellars v. Surety Co., 210 Mo. 86, loc. cit. 92, 108 S.W. 548.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jake C. Byers, Inc. v. J.B.C. Investments
834 S.W.2d 806 (Missouri Court of Appeals, 1992)
Oster v. Kribs Ford, Inc.
660 S.W.2d 348 (Missouri Court of Appeals, 1983)
Harris v. Union Electric Co.
622 S.W.2d 239 (Missouri Court of Appeals, 1981)
Parrett v. Integon Life Insurance Co.
590 S.W.2d 411 (Missouri Court of Appeals, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
567 S.W.2d 401, 1978 Mo. App. LEXIS 2139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heiden-v-general-motors-corp-moctapp-1978.