J.E. Dunn Jr. & Associates, Inc. v. Total Frame Contractors, Inc.

787 S.W.2d 892, 1990 Mo. App. LEXIS 626, 1990 WL 49784
CourtMissouri Court of Appeals
DecidedApril 24, 1990
DocketNo. WD 42258
StatusPublished

This text of 787 S.W.2d 892 (J.E. Dunn Jr. & Associates, Inc. v. Total Frame Contractors, 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
J.E. Dunn Jr. & Associates, Inc. v. Total Frame Contractors, Inc., 787 S.W.2d 892, 1990 Mo. App. LEXIS 626, 1990 WL 49784 (Mo. Ct. App. 1990).

Opinion

KENNEDY, Presiding Judge.

J.E. Dunn, Jr., and Associates appeal from a judgment dismissing its petition [894]*894against Total Frame Contractors, Inc., and its attorney, Gordon R. Gaebler, for damages for violation of Supreme Court Rule 55.03 (Counts I and II); malicious prosecution (Count III); and, alternatively, equitable relief if Counts I, II, and III were found not to state a cause of action (Count IV).

We treat the trial court’s dismissal of the petition as a summary judgment. Rule 55.27(b); Rule 74.04. The trial court’s dismissal was in response to Total Frame’s “Motion to Dismiss and in the Alternative for Summary Judgment”. The motion was accompanied by affidavits and documentary evidence supporting defendants’ motion.

We note that under Rule 55.27, when matters outside the pleadings are presented to and not excluded by the court, a motion to dismiss is to be treated as one for summary judgment. Under Rule 74.04, summary judgment is to be rendered only when it is clear from the pleadings, depositions, admissions on file, and any affidavits that there is no genuine issue of material fact.

Black Leaf Products Co. v. Chemsico, Inc., 678 S.W.2d 827, 829 (Mo.App.1984).

The facts, gathered from the materials before the trial court on the. motion for summary judgment and not disputed, are as follows:

Dunn was general contractor for the construction of a sewage treatment plant, and Total Frame was subcontractor for the concrete work. The construction project was known as Project T-15. Total Frame encountered numerous problems in the course of construction which caused delays, additional overhead and field expense. It blamed the problems on Dunn’s mismanagement, and on August 20, 1987, it filed suit against Dunn in the Circuit Court of Jackson County, Missouri, for $260,226.08 damages.

On November 11, 1987, Total Frame executed a document entitled “Assignment” in favor of Continental Insurance Company which, according to Dunn’s contention in the case now before us, assigned to Continental Total Frame’s entire claim against Dunn and completely divested Total Frame of any interest in the claim against Dunn. Dunn, however, knew nothing about this assignment at the time. Total Frame continued to prosecute its Jackson County Circuit Court damage case against Dunn until August 30, 1988. Dunn after November 11, 1987, continued the preparation of its defense of the Total Frame lawsuit until Total Frame dismissed its lawsuit on August 30, 1988. Dunn during that period incurred attorney’s fees and litigation expenses of $6,635.00, which it now claims as damages in its lawsuit against Total Frame.

The reason for Total Frame’s assignment to Continental and the circumstances surrounding the same are explained by an agreement preceding the assignment and by the affidavit of Phillip L. Sharp, president of Total Frame. Continental was surety on performance bonds for ten Total Frame construction contracts (not including T-15, the Dunn contract) which Total Frame was unable to complete. Continental was required under its bonds to step in and complete the projects. Phillip L. Sharp and his wife were signators (along with Total Frame and two other Sharp corporations) of an existing indemnity agreement running to Continental, by which they had agreed to indemnify Continental against losses under the bonds. On November 11, 1987, Sharp and his wife and Total Frame agreed to assign to Continental, Total Frame’s claim against Dunn on the T-15 project. Sharp in his affidavit explained: “In any event, the surety, Continental Casualty, wanted to protect itself from expenses and losses and wanted collateral security under their rights under a general indemnity agreement issued to get the bonds [Total Frame] needed.” The assignment itself was executed the same day as the agreement to assign, and the assignment is set out in full later in this opinion.

On August 30, 1988, Total Frame voluntarily dismissed its damage claim against [895]*895Dunn in the Jackson County Circuit Court. On the same day, Continental Insurance Company as Total Frame’s assignee filed the identical breach of contract claim against Dunn in the United States District Court for the Western District of Missouri.

MALICIOUS PROSECUTION COUNT

Dunn maintains that Total Frame after the November 11,1987, assignment to Continental was no longer a real party in interest, see Rule 52.01, and that its continued prosecution of the claim against Dunn was therefore without probable cause.

The basic and dispositive issue in this case, however, is not whether Total Frame was the “real party in interest” with the right to continue to maintain the damage claim against Dunn. The issue is rather whether Total Frame in continuing the prosecution of its damage claim against Dunn after November 11,1987, reasonably in good faith believed it was the real party in interest with the right to continue to maintain the claim. If so, it had “probable cause” or “reasonable cause” to continue the litigation then pending in the Circuit Court of Jackson County. “Probable cause is reasonable cause and may be defined as the existence of such a state of facts as would warrant an ordinarily cautious and prudent man in the belief that the accused was guilty of the offense charged.” Higgins v. Knickmeyer-Fleer Realty & Investment Co., 335 Mo. 1010, 74 S.W.2d 805, 813 (1934); see also, Dodson v. MFA Insurance Co., 509 S.W.2d 461, 467 (Mo.1974); Hughes v. Aetna Insurance Co., 261 S.W.2d 942, 949 (Mo.1953); Kvasnicka v. Montgomery Ward & Co., 350 Mo. 360, 166 S.W.2d 503, 510 (1942). It is the mali cious prosecution plaintiff's burden as a part of his case to prove defendant’s want of probable cause to have initiated or to have continued to prosecute the original action against the malicious prosecution plaintiff. Hoene v. Associated Dry Goods Corp., 487 S.W.2d 479, 483 (Mo.1972); Kvasnicka, 350 Mo. 360, 166 S.W.2d at 510; Hamilton v. Krey Packing Co., 602 S.W.2d 879, 881 (Mo.App.1980). Upon admitted established facts, it becomes a question of law and not of fact whether the malicious prosecution defendant had probable cause for the original lawsuit against the malicious prosecution plaintiff. Alexander v. Laclede Gas Co., 725 S.W.2d 129, 130 (Mo.App.1987); Zahorsky v. Griffin, Dysart, Taylor, Fenner and Lay, P.C., 690 S.W.2d 144, 152 (Mo.App.1985); McGuire v. Wilcher, 689 S.W.2d 719, 721 (Mo.App.1985); see Higgins, 74 S.W.2d at 812-13.

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787 S.W.2d 892, 1990 Mo. App. LEXIS 626, 1990 WL 49784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/je-dunn-jr-associates-inc-v-total-frame-contractors-inc-moctapp-1990.