Honigmann v. Hunter Group, Inc.

733 S.W.2d 799, 1987 Mo. App. LEXIS 4362
CourtMissouri Court of Appeals
DecidedJuly 14, 1987
Docket50721
StatusPublished
Cited by20 cases

This text of 733 S.W.2d 799 (Honigmann v. Hunter Group, Inc.) 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
Honigmann v. Hunter Group, Inc., 733 S.W.2d 799, 1987 Mo. App. LEXIS 4362 (Mo. Ct. App. 1987).

Opinion

GARY M. GAERTNER, Presiding Judge.

This is an appeal from a judgment following a jury verdict in the Circuit Court of the County of St. Louis. The respondent, Ernest Honigmann, sued appellant, Hunter Group, Inc. 1 for breach of contract. In addition, Honigmann sued Robert Cranston (President of Hunter Group, Inc.) and Barry Todd (Vice-President of Hunter Group, Inc.) for tortious interference with his contractual relationship with Hunter Group, Inc. and tortious interference with business expectancy. The jury found in favor of Honigmann on all three counts and awarded him $29,000.00 in actual damages for breach of contract, $29,000.00 in actual damages for tortious interference with business relations, and $5,000.00 in punitive damages against each of the two individual appellants. 2

Appellants raise a total of eight points on appeal. Appellants challenge the submissi-bility of respondent’s case, claim error in the trial court’s denial of appellants’ motion for a directed verdict, and find error in the admission of alleged hearsay evidence. We affirm.

The evidence shows that Honigmann purchased a business brokerage franchise 3 from Hunter Group, Inc. (then known as American Business Brokers, Inc. 4 ) on April 10, 1980. In July, 1981, Honigmann contacted James Bryant, president of Dixie Cream Flour Company, on the basis of a tip that Bryant was seeking to sell his company. Bryant informed Honigmann that he was interested in selling the business, but that he did not need Honigmann’s services at that time because he had a potential buyer. Bryant nonetheless took Honig-mann on a tour of the company’s facilities and told him that he would be in contact should his potential buyer not complete the deal. Honigmann kept in touch with Bryant over the following months. Bryant then contacted Honigmann in May, 1982, and requested that Honigmann search for a buyer, since Bryant’s own negotiations had not produced a sale. Bryant refused to sign Hunter Group, Inc.’s general listing agreement, apparently because of a prior negative experience with a broker. He orally agreed, however, to pay a commission of 10% of the sale price should Honig-mann deliver a buyer. Honigmann there *803 after obtained financial and corporate information from Bryant about Dixie Cream and prepared a written descriptive profile of the business.

On June 2, 1982, Honigmann and his associate, Dee Quest, introduced Bryant and Michael Whitworth, a prospective buyer. At that time, Bryant signed a “Seller Commission Form” in lieu of a general listing agreement, which provided that Bryant would pay Honigmann a 10% commission if the business were sold to Whit-worth. The Franchisor’s inter-franchise newsletter of June 18, 1982 stated that “Ernie [Honigmann] has an offer based on a seller commission form [for Dixie Cream].” After three weeks of negotiations, the deal fell through.

Honigmann and Quest met with Bryant shortly after the negotiations with Whit-worth terminated. Bryant reconfirmed his desire for them to locate a buyer as well as his intention to pay the commission if they delivered a buyer. Towards this end, Hon-igmann renewed his efforts to find a buyer. He also updated his written profile of Dixie Cream’s financial data on July 14, 1982.

According to Honigmann’s testimony, he learned in August, 1982, from Dee Quest that appellants Cranston and Todd had introduced a prospective buyer to Bryant and that Todd had asked Quest to refrain from further contacting Bryant. Honigmann further testified that he never consented to appellants’ intervention in the Dixie Cream effort. The testimony of Cranston and Todd is contradictory on this point. Appellants contend that after they learned about the failed Bryant-Whitworth negotiations, they sought and expressly received Honig-mann’s approval and consent before entering into the Dixie Cream sale activity. Cranston also testified that they would not have pursued the sale without Honig-mann’s consent.

The evidence further showed that around July 1, 1982, Cranston met with Jim Streett, who was seeking to purchase a business. Cranston informed him about Dixie Cream and Streett eventually purchased Dixie Cream in late December, 1982.

Streett paid approximately $600,000.00 for Dixie Cream. Appellants’ testimony was that Street agreed to pay them a fee of $30,000.00, which they considered to be more of a finder’s fee rather than a commission because Streett asked them not to perform their usual duties as brokers due to the fact that Bryant refused to negotiate with him if brokers were involved. In point of fact, Streett remitted $20,000.00 in August, 1982, and tendered his final payment of $9,000.00 in early 1983, for a total of $29,000.00. The sum was $1,000.00 less than that agreed upon because of a dispute over the payment of legal services. The checks received from Streett were made out to “Hunter Group,” and the funds were deposited into the Franchisor’s bank account and treated by it as income.

Todd informed Honigmann in the fall of 1982 that, according to the Franchise Agreement’s commission splitting arrangement, 5 he would receive 15% of the expected $30,000.00 commission ($4,500.00), since he was the “territorial franchisee” (the one in whose “exclusive territory” the business was located), but that he was not entitled to an additional 20% as the “listing franchisee” because he had not obtained a general listing agreement from Bryant. Hon-igmann thereafter filed the instant suit.

Our standard of review is both familiar and clear: We view the evidence and reasonable inferences therefrom in the light most favorable to the prevailing party, which in this case is the plaintiff, Honigmann. Ross v. Holton, 640 S.W.2d 166, 170 (Mo.App., E.D.1982).

Appellants’ first point alleges that the trial court erred in giving Instruction No. 8, the verdict director for Breach of the Franchise Agreement. They assert that the evidence did not support a finding that Hunter Group, Inc. breached its contract *804 with Honigmann. In essence, appellants contend that Hunter Group, Inc., as Franchisor, had the right under the Franchise Agreement to compete with all of its franchisees, including Honigmann, in the listing and selling of businesses. It is Honig-mann’s contention that Hunter Group, Inc. breached the contract because it was his understanding that only other franchisees, and not the Franchisor, had the right to list and sell businesses in other franchisees’ exclusive territories.

The Franchise Agreement contains the following:

1. FRANCHISE
A. The Franchisor grants to the Franchisee an exclusive Franchise (hereinafter referred to as the “Franchise”) to operate a business brokerage office under the name of “[HUNTER GROUP, INC.]” in the territory and marketing area set forth in Section 2, below, and, in connection therewith, to use the [HUNTER GROUP, INC.] systems, forms, materials, expertise, procedures, techniques, names and lists of businesses for sale, all as elsewhere herein set forth.
B.

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Bluebook (online)
733 S.W.2d 799, 1987 Mo. App. LEXIS 4362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/honigmann-v-hunter-group-inc-moctapp-1987.