Heintz v. Woodson

714 S.W.2d 782, 2 U.C.C. Rep. Serv. 2d (West) 548, 1986 Mo. App. LEXIS 4280
CourtMissouri Court of Appeals
DecidedJune 24, 1986
DocketNo. 50363
StatusPublished
Cited by4 cases

This text of 714 S.W.2d 782 (Heintz v. Woodson) 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
Heintz v. Woodson, 714 S.W.2d 782, 2 U.C.C. Rep. Serv. 2d (West) 548, 1986 Mo. App. LEXIS 4280 (Mo. Ct. App. 1986).

Opinion

PUDLOWSKI, Judge.

Appellant petitioned for a declaratory judgment against respondents regarding inter alia the status of certain real estate located at 801 Old State Road, St. Louis County and claims against it established in 1983 by a settlement agreement. Respondents Allan counterclaimed for declaratory [783]*783judgment against appellant and filed a cross claim against respondent Woodson. Respondent Woodson also counterclaimed for declaratory judgment against appellant and later motioned to cite appellant for contempt and to enforce prior court orders. Both appellant and respondent Woodson motioned to modify the decree of dissolution, the motions later being withdrawn by both parties. The trial court consolidated the actions and found for respondents Allan on the counterclaim against appellant and cross claim against respondent Wood-son and for respondent Woodson on her counterclaim and motions against appellant. The trial court also ordered appellant to hold respondent Woodson harmless and indemnify her on respondents Allan’s cross claim. Appellant appeals. We affirm with modifications and remand to the trial court for determination consistent with our opinion.

Appellant and respondent Woodson were granted a decree of dissolution of their marriage on November 7, 1979. As a result, the custody of the family’s three children was awarded to respondent Woodson, the wife, with appellant, the husband, responsible for child support. The decree also divided various marital property and provided respondent Woodson maintenance. Most significantly, it provided that appellant and respondent Woodson would sell the family home at 801 Old State Road and equally divide the proceeds. In the interim between dissolution and sale, respondent Woodson would live in the house while appellant continued to pay the mortgage, taxes and insurance. Appellant and respondent Woodson had purchased the property in 1973 from Albert and Vera Grosse. Appellant and respondent Wood-son at that time executed a promissory note, secured by a deed of trust, for $71,-000 to the Grosses.

Soon after, appellant neglected to make his child support payments. Respondent Woodson filed several writs of execution and, on September 30, 1980, the trial court found appellant in contempt of court. Further, after April 9, 1981, appellant ceased making the mortgage payments.1 This resulted in Mrs. Grosse accelerating the debt and declared it due.2 With foreclosure threatened, on July 23, 1981, respondents Allan, respondent Woodson’s parents, sent Mrs. Grosse $1,467.00. On November 5, 1981, respondents Allan provided Mrs. Grosse an additional $37,394.29 and respondent Woodson paid $10,000. Mrs. Grosse then “assigned” the promissory note to the three respondents. On January 20, 1983, respondent Woodson transferred, for $11,-500, her interest in the promissory note to the respondents Allan. On May 19, 1983, Mrs. Grosse executed the assignment of the deed of trust to the respondents.

On September 9, 1982, respondent Wood-son filed a “Motion to Determine the Exact Amount Due Petitioner From Respondent and Enforcement of Judgment.” Negotiations led to a “Settlement Agreement” being signed on March 22, 1983 which was then made an order of the court. The pertinent provisions relevant to this appeal are:

1) As of March 22, 1983 appellant owed respondent Woodson $250 in child support.

2) That respondent Woodson would quit claim her interest in the house to appellant for $75,000.

3) That appellant would hold respondent Woodson harmless “from all payments due on the note secured by Deed of Trust ... and any and all other liens, claims or encumbrances.” Further, appellant “recognize[d] that said note secured by Deed of Trust was assigned to Frank Benjamin Allan, Dorothy Virginia Allan and Suzette Elaine Heintz Woodson.”

After this settlement, appellant arranged financing for the $75,000 tender for respondent Woodson’s interest. Contrary to the court order, he demanded that respondent [784]*784Woodson assume responsibility for the amount then owed to respondents Allan out of the $75,000. Respondent Woodson refused. Also, appellant again fell behind in his child support payments.

Appellant then filed this declaratory action. After hearing, the court determined the following:

1) That appellant be found in contempt for his refusal to pay $5,920.28 in past due child support.3

2) That appellant and respondent Wood-son were owners as tenants in common of the Old State Road property.

3) That respondents Allan were the owners of the promissory note secured by a Deed of Trust on the Old State Road property.

4) That appellant’s right under the court order to require respondent Woodson to quit claim her interest in the Old State Road had expired.

5) That respondent Woodson had not defaulted on her obligation under the 1983 court order.

6) That appellant and respondent Wood-son pay respondents Allan $64,321.01 in principal, interest and attorney’s fees.

7) That appellant pay respondent Wood-son $5,910.18 for past due child support and that child support be set at $100 per week.

8) That appellant pay respondent Wood-son $10,000 in attorney fees. •

9) That appellant hold respondent Wood-son harmless from any and all liabilities and damages sustained by her as a result of this judgment, as well as any and all liabilities and damages resulting from any forfeiture or foreclosure. Further, the court declared that the above liabilities and damages including the $64,321.01 owed to respondents Allan be impressed as a lien on appellant’s interest in the Old State Road property.

Appellant raises three points on appeal. First, he states that the trial court erred in finding that the promissory note had been purchased by the respondents from Mrs. Grosse and that, instead, it should have found that the action was a payment which served to discharge appellant from his obligation on the note. Secondly, he says that the trial court should have allowed evidence as to payments made before the 1983 court order. Finally, he asserts that the court order requiring appellant to hold respondent Woodson harmless is ambiguous and indefinite and thereby does not afford relief from uncertainty.

Appellant presents a two prong attack on the trial court’s finding that the “assignment” of the promissory note from Mrs. Grosse to the respondents Allan and respondent Woodson did not discharge appellant from his obligation on the note. First, appellant argues that in such transfers there is a presumption of payment which can only be rebutted by strong proof of a contrary intention. Chandler v. Howard, 312 S.W.2d 26, 30 (Mo.1958). The problem with appellant’s argument is that this presumption applies when the note is paid by the maker. A presumption of purchase applies when the note is transferred to a stranger to the instrument. Id. at 29. Further, even if we were to apply the presumption more favorable to appellant, his argument would still fail for there is strong evidence that the parties intended a purchase. Specifically, Mrs. Grosse wrote on the back of the note “For Value Received I hereby assign this Promissory Note to Frank Benjamin Allan, and Dorothy Virginia Allan and Suzette Elaine Woodson (formerly Suzette E. Heintz).” Considering the standard of review mandated by Murphy v.

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Bluebook (online)
714 S.W.2d 782, 2 U.C.C. Rep. Serv. 2d (West) 548, 1986 Mo. App. LEXIS 4280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heintz-v-woodson-moctapp-1986.