Jenni v. E.R.B. Land, Inc.

541 S.W.2d 743
CourtMissouri Court of Appeals
DecidedSeptember 14, 1976
DocketNo. 36568
StatusPublished
Cited by4 cases

This text of 541 S.W.2d 743 (Jenni v. E.R.B. Land, 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
Jenni v. E.R.B. Land, Inc., 541 S.W.2d 743 (Mo. Ct. App. 1976).

Opinion

KELLY, Judge.

E. R. B. Land, Inc., the defendant-appellant, brings this appeal to review a judgment of the Circuit Court of Jefferson County decreeing that the plaintiffs-respondents have a security interest in a 78 acre [746]*746parcel of land situate in Jefferson County and which security interest it established as a prior lien to defendant-appellant’s interest in said tract of land together with a declaration that defendant-appellant is a constructive trustee with respect to plaintiffs-respondents’ security interest therein.

This cause was instituted against the E. R. B. Land, Inc., John M. Gamel and Mildred Gamel, his wife, John Clyde Gamel, and David Edgar Gamel. Count I of the petition sought a declaration that certain quit-claim deeds from the Gamels to E. R. B. Land, Inc., were void and that the Ga-mels be directed to execute and deliver to the plaintiffs a first deed of trust conveying the real estate in trust for the plaintiffs to a trustee to be designated by the Court. Count II of the petition sought active damages against the Gamels in an amount of $33,561.84, plus interest at 6% per annum and $150,000.00 exemplary damages for alleged false representations relative to execution and delivery of a second deed of trust to secure the plaintiffs for the balance due on the sale of the real estate. Count III prayed the trial court to declare that the E. R. B. Land, Inc., was a constructive trustee of plaintiffs’ interest in the land, and that E. R. B. Land, Inc., be directed to convey its interest in the land to plaintiffs.1

Counts I and III of the petition, being equitable in nature, were tried to the court; Counts II and IV were dismissed by the respondents-plaintiffs at the close of all of the evidence.

The evidence was that the 78 acres involved in this cause of action was part of what was originally a 200 acre farm owned by the Jennis. In July, 1966, they sold off approximately 122 acres of this farm to Robert M. Williams of the Sunset Realty Company, of Hillsboro. Prior to that time they had sold one acre to the City of Festus. In August, 1966, the Jennis entered into negotiations with John M. and Mildred Ga-mel for the sale of the remaining 75 acres of the farm. Mr. Gamel retained the services of an attorney, J. W. Thurman, of Crystal City, to prepare the necessary legal documents. According to Mr. Thurman, he met with the parties to the sale in his home, where he drafted the necessary legal papers, including a contract, a note, a deed of trust and a deed. The Agreement for Purchase of Realty provided that the purchase price for the tract of land was $39,000.00, of which the Gamels had paid $5,000.00 as earnest money; that the balance of $34,-000.00 was to be paid in equal' monthly installments of $219.08 over a period of 25 years, to be secured by a note and deed of trust on the premises “in the form ordinarily used in this state.” The $5,000.00 earnest money for the down payment had been borrowed by John and Mildred Gamel from Mr. Gamel’s father and he was given a deed of trust as security for the loan.

Mr. Jenni testified that on the day the documents were executed at Mr. Thurman’s home, sometime in August, 1966, the Agreement for Purchase of Real Estate was notarized by Mr. Thurman and dated August 12, 1966 and Mr. Jenni testified that is the date on which he received the $5,000.00 earnest money. The note for $34,000.00, dated July 1, 1966, and a copy of the amortization schedule, along with a copy of the Agreement for Purchase of Real Estate, were given to Mr. Jenni. The deed was not executed on that visit to Mr. Thurman’s but a couple of weeks after they had been at Mr. Thurman’s home, Mr. Jenni received a letter and the warranty deed through the mail from Mr. Thurman. The letter accompanying the warranty deed contained instructions that the Jennis should go before a notary and sign the deed before the notary and then give the warranty deed to the Gamels. The Jennis did as instructed and the warranty deed was executed on September 6, 1966. Although Mr. Thurman testified that he prepared a deed of trust on the property, as well as a chattel mortgage on some personalty and a second note, and [747]*747he delivered the note, deed of trust, copy of the sales contract, the note and the chattel mortgage on the personalty, and “I delivered these papers that Mr. Jenni was entitled to.” When they left his home the Jennis took “all the executed papers with them.” Mr. Jenni denied ever receiving the deed of trust, explaining this by testifying that it was his understanding that Mr. Thurman would “do everything that’s needed to complete this sale.” It is conceded that no deed of trust securing the balance due as evidenced by the note was ever filed in the office of the Recorder of Deeds of Jefferson County. The deed of trust securing the $5,000.00 loan from Mr. Gamel’s father, however, was recorded.

For more than two years the Gamels made the monthly payments on the property in accordance with the amortization schedule until October 1, 1968, after which date they made no further payments. The principal amount remaining unpaid as of that date was $32,584.99.

In February, 1969, Mr. Williams came to Mr. Blackwell, the president and sole shareholder in E. R. B. Land, Inc., and informed Mr. Blackwell that he had been approached by Mr. and Mrs. John Gamel, Sr., with respect to buying the $5,000.00 deed of trust and after questioning Mr. Williams about the property and what it was worth, authorized Mr. Williams to go ahead and negotiate for the purchase of the note and deed of trust. Mr. Williams purchased the note and deed of trust for E. R. B. Land, Inc., for $3,450.00. At the time of purchase of the note no payments on either principal nor interest had been made by the John M. Gamels.

A week or so after the purchase of the $5,000.00 note and deed of trust, Mr. Williams asked Mr. Blackwell if he would be interested in buying the 28 acres inasmuch as he believed the place could be bought. Mr. Blackwell told Mr. Williams to go ahead and try to buy it, and Mr. Williams undertook negotiations for the purchase of the tract, obtaining from the Gamels an option contract for the purchase of their equity in the farm for $2,000.00, plus the cancellation of both of the outstanding obligations of the Gamels to both the Gamel, Srs., and the Jennis. This transaction was completed on February 19, 1969, with Williams making payment to the Gamels, the execution of three quit claim deeds for the property from the Gamels to E. R. B. Land, Inc.,2 and the recording of those deeds by Mr. Williams, in the office of the Recorder of Deeds of Jefferson County. Mr. Williams was the only one representing E. R. B. Land, Inc., to have any contact with the Gamels throughout these negotiations resulting in the purchase of the property; Mr. Blackwell never, at any time, took part in the negotiations.

At trial, Mrs. Gamel testified by deposition that during the negotiations for the sale of the property she had informed Mr. Williams that she and her husband were behind in their payments to the Jennis, and that she showed him the schedule of payments for the note, and told Mr. Williams that she and her husband were obliged to pay off the note. She testified that Mr. Williams replied by saying that he would pay the Gamels for their equity in the land. Although Mr. Williams did not specifically say that he would satisfy the note to the Jennis, he did state that he would “take care of the rest of it.” At at the last meeting, as they were preparing to sign the papers, Mrs.

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Bluebook (online)
541 S.W.2d 743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jenni-v-erb-land-inc-moctapp-1976.