Kansas City Area Transportation Authority v. 4550 Main Associates

893 S.W.2d 861, 1995 Mo. App. LEXIS 350, 1995 WL 77324
CourtMissouri Court of Appeals
DecidedFebruary 28, 1995
DocketWD 48942
StatusPublished
Cited by12 cases

This text of 893 S.W.2d 861 (Kansas City Area Transportation Authority v. 4550 Main Associates) 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
Kansas City Area Transportation Authority v. 4550 Main Associates, 893 S.W.2d 861, 1995 Mo. App. LEXIS 350, 1995 WL 77324 (Mo. Ct. App. 1995).

Opinion

ELLIS, Judge.

This is an appeal by Frank S. Jennings and 4550 Main Associates, a partnership, (appellants) from an Order entered by the Circuit Court of Jackson County awarding an attorney’s lien and general judgment against them in favor of Beckett, Lolli, Bartunek & Beckett, a Kansas City, Missouri law firm. The general judgment and lien was for $150,-128.71.

Frank S. Jennings (Jennings) is an original partner in 4550 Main Associates (4550), a partnership formed in 1979. Jennings and 4550 together owned real estate on which two Tudor-style commercial buildings were situated, located east of the Country Club Plaza and adjacent to the Country Club Right-of-Way, between 45th and 47th Streets on Main Street, in Kansas City. The buildings are commonly known as 4528-4550 Main Street (4550 Main property). Beckett, Lolli, Bartunek & Beckett (BLBB) is a Kansas City, Missouri law firm, and Theodore C. Beckett (Beckett) is the film’s senior partner.

On February 23, 1990, the Kansas City Area Transportation Authority (KCATA) and the City of Kansas City, Missouri (City) filed suit in Jackson County Circuit Court against Jennings, 4550 and others, seeking injunctive relief, a declaratory judgment quiet title and *864 trespass damages. The suit related to what is known as the Country Club Right-of-Way. The Country Club Right-of-Way is a 100 foot wide former railroad right-of-way, and the suit pertained to that portion of the right-of-way adjacent to the 4550 Main property.

Jennings and 4550 were not served until the fall of 1990. After service, Jennings talked about the suit with Keith Wilson Jr., a Kansas City lawyer whom he had known for many year’s and who represented him from time to time over the years. Wilson suggested that Jennings and 4550 hire Beckett to represent them in the action because Beckett was already handling another case involving the right-of-way north and south of the subject property and would therefore be familiar with the issues. At Jennings’ request, Wilson took the petition to Beckett and hired him to represent Jennings and 4550 in the proceedings.

On November 29, 1990, BLBB entered its appearance in the case by filing a motion to dismiss and a motion for partial summary judgment. The parties engaged in extensive briefing of the issues and ultimately, on January 2, 1992, the motions were denied. BLBB then filed an answer and counterclaim on behalf of Jennings and 4550. Beckett communicated with Jennings, personally and on behalf of 4550, for the most part through Keith Wilson Jr. Jennings lived in Mexico and was in Kansas City infrequently. At the time Wilson took the petition to Beckett, no express agreement regarding attorney’s fees was made. However, on June 19, 1991, Jennings and Wilson came to Beckett’s office for the purpose of discussing the case and for Jennings to review and sign interrogatory answei’s. Attorney’s fees were also discussed at that time. Beckett told Jennings that he was charging him at an hourly rate of $150 for his time, and lesser amounts for other lawyers in the firm. There was also discussion of a possible contingent fee agreement rather than hourly rate billing.

Jennings and Beckett met again at Beckett’s office on July 22, 1992. At this point, the motions to dismiss and for partial summary judgment had been denied, and the answer and counterclaim had been filed. This meeting was also held so that Jennings could review further interrogatory answers, and sign them. Fees were also discussed and in the interrogatory answers signed by Jennings that day, one answer reflected that Jennings owed BLBB $56,000 in fees at the end of June, 1992. Beckett presented Jennings with a contingent fee contract, explained it to him, and further advised that if Jennings accepted the agreement, he did not owe Beckett any money unless money was recovered on Jennings’ behalf. Jennings indicated he was in a hurry and would take the contract home, read and sign it, and would send it back the next day. Jennings never signed the agreement. Therefore, on August 4, 1992, Beckett informed Jennings by letter that he was withdrawing his offer to operate under the contingent fee agreement and expected to be paid on an hourly rate basis.

During the July 22nd meeting, Beckett also discussed settlement possibilities with Jennings. He advised him that he had received an offer of $40,000 from KCATA. Jennings rejected the offer. Beckett suggested a counter-demand of $2,000,000. This amount was consistent with the $2 million to $3 million amount of damages Jennings indicated he was seeking in his answer to interrogatories signed by him that day. It was based upon BLBB’s work, and investigation of another pending case which involved an appraisal of property adjoining Jennings’ land to the north. Before Beckett discussed the damage valuation information with Jennings, Jennings told Beckett he had an offer from Twentieth Century Realty, Inc. for the entire 4550 property in the range of $500,000. Beckett advised Jennings he thought the figure was quite low and, based on the work he and his firm had done, he believed the entire property’s value might be as high as $5,000,-000. He provided Jennings with a legal memorandum, prepared by an associate in the firm with an extensive civil engineering background, which plotted the square footage, and a copy of the commissioners’ report in the case pending on the property to the *865 north of 4550 Main. Beckett also discussed with Jennings, and provided him copies of, other valuation documents.

Unknown to Beckett until the July 22nd meeting, Jennings had received an offer from Twentieth Century in May, 1992. Jennings retained attorney John Gibson to assist him in dealing with Twentieth Century, and entered into negotiations for sale of the entire 4550 Main property. The initial offer had been for the north building and lot only. The offer was $750,000. However, on July 10, 1992, Twentieth Century revised its offer to include the entire property at a purchase price of $2,450,000, and communicated the offer to Jennings by letter that day. Negotiations continued and culminated on September 4, 1992, when Jennings and 4550 entered into an agreement with Twentieth Century to sell the entire 4550 Main property (the two buildings and lots, and the west 50 feet of the Country Club Right-of-Way), and to sell and assign them interest in the KCATA lawsuit. The total sale price was $2,500,000.

On July 27, 1992, Beckett wrote Twentieth Century, advised them of his representation of Jennings and 4550 in the KCATA lawsuit, informed them that he had become aware of their negotiations to purchase the 4550 Main property, and asserted an attorney’s lien 1 on any sale proceeds relating to the right-of-way. The September 4,1992 contract to sell the property contained a provision which acknowledged the lien claim, provided that the parties would investigate the matter and attempt to resolve it. As a result, on September 29, 1992, the contract was amended to provide that Twentieth Century would indemnify and hold Jennings harmless with respect to BLBB’s fees. In return, the purchase price was reduced to $2,452,500.

Jennings was deceptive with Beckett about his negotiations with Twentieth Century, even to the extent of denying a contract of sale on September 18, 1992.

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Bluebook (online)
893 S.W.2d 861, 1995 Mo. App. LEXIS 350, 1995 WL 77324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-area-transportation-authority-v-4550-main-associates-moctapp-1995.