Jennings v. City of Kansas City

812 S.W.2d 724, 1991 WL 70429
CourtMissouri Court of Appeals
DecidedMay 7, 1991
DocketWD 43611
StatusPublished
Cited by20 cases

This text of 812 S.W.2d 724 (Jennings v. City of Kansas City) 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
Jennings v. City of Kansas City, 812 S.W.2d 724, 1991 WL 70429 (Mo. Ct. App. 1991).

Opinion

NUGENT, Chief Judge.

Plaintiff Wesley B. Jennings appeals from the judgment of the circuit court entering summary judgment on all counts in favor of all defendants. We affirm.

In his first of four points on appeal, Mr. Jennings bifurcates his argument, contending first that the trial court’s order did not constitute a declaratory judgment because it failed to include proper “findings of fact and conclusions of law” as required by law. *727 He next maintains that the trial court’s order did not constitute a declaratory judgment because it failed to address each point in his petition as required by law. Mr. Jennings also bifurcates his second point on appeal, asserting that the trial court erred in failing to rule, first, that defendant City of Kansas City violated its charter and, second, that the plaintiff could estop the city from violating state law. In his third point, Mr. Jennings argues that the trial court erred in dismissing the Kansas City Municipal Assistance Corporation (KCMAC), a necessary party to his action, as a defendant from the declaratory judgment action. Finally, he contends that the trial court erred in denying him a second continuance because he needed the time to add additional necessary parties to his action.

In setting out the relevant facts, we rely in large part on the trial court’s findings of fact. A complete statement of the facts requires brief references to the city’s 1925 Charter, still in effect today, and several elections in the 1980’s. Section 101 of the charter, requires that the city council submit to the voters for approval any proposal to issue general obligation bonds. Section 107 permits the city council to issue without voter approval bonds to pay court-imposed judgments and “bonds payable from the proceeds of special benefit assessments for public improvements,” but prohibits those bonds increasing the city’s general indebtedness.

In March, 1983, the city’s voters imposed a one percent sales tax for five years, ending on December 31, 1988. In May, 1984, the city council created KCMAC, a not-for-profit corporation to serve as a “third party” that could facilitate the issuance of tax-exempt bonds and thus assist the city in funding projects. The corporation’s bylaws called for a self-perpetuating board initially composed of seven directors that would always include the city’s manager, attorney and financial officer, along with four members whom the city manager nominates and who may not serve as city officers or employees. The Internal Revenue Service granted the corporation tax-exempt status in August, 1985, under § 501(c)(3) of the Internal Revenue Code (I.R.C.).

In January, 1988, the city council adopted Resolution 62032, in which it pledged one half of the 1983 sales tax revenue to the city’s public schools only until 1993 if the city’s voters approved a reauthorization of the sales tax. The voters did so in March, approving Ordinance 61896, which provided that the city should continue the sales tax until December 31, 2000.

The city council, on November 22, 1989, approved Resolution 64698, which stated that because the city needed $114,000,000 to fund building projects, it would determine the feasibility of funding those projects through bonds issued by KCMAC. In addition, the city would service those bonds through revenues from one half of the one percent sales tax reapproved under Ordinance 61896, “after termination of support for public education as provided in” Resolution 62032.

The first phase of the financing plan conceived in Resolution 64698 involves the city’s authorizing KCMAC to issue $45,-000,000 in bonds. The corporation will then pay the proceeds in a lump sum to the city and lease the properties marked for construction or renovation and carry out those projects. 2 KCMAC then will lease the completed properties back to the city, which pays the rent with general revenue. KCMAC will use the proceeds from the lease to make debt service payments on the bonds, and should it default, the bondholders have no recourse against the city. Moreover, if the city fails to appropriate annual funds to rent a property, its lease *728 terminates. In any event, KCMAC’s leasehold interest in the property terminates with the bonds' retirement. The minutes of a February 15, 1990, meeting of KCMAC’s board reveal that the directors discussed the bond plan, resolved to implement it as provided in Resolution 64698 and to name four local and national brokerage firms as underwriters of the bonds.

On January 11, 1990, the plaintiff filed a petition in prohibition, asking the trial court to command the city council not to issue bonds under Ordinance 61896, and the court issued a preliminary order in prohibition. The defendants moved to dismiss, and Mr. Jennings filed an amended petition asking the court to declare that any ordinance drafted in compliance with Resolution 64698 would violate Missouri’s constitutional and statutory law. He named as defendants the city, its mayor and members of the city council.

The defendants moved for summary judgment in March and in April the court granted the plaintiff’s motion to amend his petition because he wanted to add two counts and KCMAC as an additional party. The defendants again moved for summary judgment, and on June 8 requested a hearing on their motions. The trial court overruled the plaintiff’s motion for a continuance and convened the hearing on June 18. After reviewing exhibits as well as hearing arguments from and thoroughly questioning Mr. Jennings, counsel for KCMAC and counsel for the city, the trial court granted defendant KCMAC’s motion to dismiss the plaintiff’s claims against it for failure to state a claim. The court also entered an order granting the remaining defendants’ motion for summary judgment. The plaintiff appealed.

We review a summary judgment as we would any court-tried or equity proceeding. If we can sustain the judgment under any theory, we must do so. McCready v. Southard, 671 S.W.2d 385, 387 (Mo.App.1984). If the trial court has reached a correct result for incorrect reasons, we still must affirm. Labor Discount Center, Inc. v. State Bank & Trust Co. of Wellston, 526 S.W.2d 407, 429 (Mo.App.1975). We review the entire record in a light favorable to the party against whom the trial court entered judgment. Fisher v. Scott & Fetzer Co., 664 S.W.2d 662, 663 (Mo.App.1984).

A trial court must exercise great care in utilizing summary judgment. Gal v. Bishop, 674 S.W.2d 680, 682 (Mo.App.1984). It may enter a summary judgment where the pleadings, depositions and admissions on file, together with the affidavits, if any, show that no genuine issue of material fact exists and that the law entitles the moving party to a favorable judgment. Ronollo v. Jacobs, 775 S.W.2d 121, 125 (Mo.1989) 3 ; St. Charles County v. Dardenne Realty Co., 771 S.W.2d 828, 830 (Mo.1989); Fisher, supra, 664 S.W.2d at 663; Rule 74.04(c).

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Bluebook (online)
812 S.W.2d 724, 1991 WL 70429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jennings-v-city-of-kansas-city-moctapp-1991.