Knight v. Johnson

741 S.W.2d 842, 1987 Mo. App. LEXIS 5073, 1987 WL 2723
CourtMissouri Court of Appeals
DecidedDecember 15, 1987
DocketNo. 52677
StatusPublished
Cited by10 cases

This text of 741 S.W.2d 842 (Knight v. Johnson) 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
Knight v. Johnson, 741 S.W.2d 842, 1987 Mo. App. LEXIS 5073, 1987 WL 2723 (Mo. Ct. App. 1987).

Opinion

REINHARD, Judge.

Both parties appeal from a trial court order granting summary judgment to defendant on plaintiff’s claim and summary judgment to plaintiff on defendant’s counterclaim. We affirm.

In his petition plaintiff alleged that he had agreed with defendant that if he located a buyer for defendant’s car wash defendant would pay him 10% of the gross sales price; that he located buyers who purchased the car wash for $160,000.00; that he had received $6,881.84 of the $15,-000.00 commission from defendant; and that he had demanded the balance of $8,118.16 but defendant refused to pay.

In his answer defendant admitted an agreement with plaintiff, that plaintiff had located the buyers, and that he had paid defendant $7,048.46. As an affirmative defense defendant alleged that plaintiff’s petition sought to recover compensation “for services in the buying, selling, exchanging, leasing, renting or negotiating a loan upon real estate within the intent and meaning of [§ 339.160, RSMo.1986]”; that plaintiff was not a licensed real estate broker or salesperson at the time of the transaction; and, because plaintiff’s claim was “improper, illegal, and unlawful” he was “barred from any recovery_” Alleging the money he had already paid was “illegally, unlawfully, and improperly received by plaintiff,” defendant asserted a counterclaim for $7,048.46.

Both parties filed motions for summary judgment contending that the pleadings, depositions, admissions, and affidavits showed that there existed no genuine issue of material fact. Those various documents reveal the following undisputed facts.

Plaintiff was a distributor of car washing equipment. In 1975 defendant purchased equipment from plaintiff and constructed a car wash on leased property in Berkeley, Missouri. In May 1977 the lease was assigned to defendant as lessee. In August 1984, at defendant’s request, plaintiff prepared an appraisal of the car wash. Plaintiff valued the brick building, including exterior signs, gas furnace, water cooler, office equipment, floor safe, and center island house at $130,000.00; exterior landscaping and asphalt at $15,000.00; and the car washing equipment at $44,700 for a total of $189,700.00.

Plaintiff was not a licensed real estate broker or salesperson nor did he represent himself as one to defendant. On November 12, 1984, the parties entered into the following agreement:

LISTING AGREEMENT
Agreement made this date by and between Mr. E.H. Johnson and Mr. Charles M. Knight, whereby Mr. Knight will use his best efforts to sell the Berkeley Car Wash.
This agreement will remain in effect for 60 days from above date and Mr. Johnson does hereby agree to pay Mr. [844]*844Knight 10% of the gross sale price to be negotiated between the buyer and the seller of Berkeley Car Wash.
The closing cost to be negotiated between buyer and seller.

Both parties signed the agreement which was typed on plaintiffs letterhead.

Prior to plaintiff’s appraisal and the execution of the listing agreement, Paul Faix approached plaintiff about getting into the car wash business. On December 10, 1984, at plaintiff’s office, plaintiff and Faix prepared a written offer for the car wash by filling out a “sale contract” form that plaintiff had obtained from an office supply store. Faix and his wife Janet offered to buy the car wash including “all improvements listed in appraisal dated August 10, 1984” for $150,000.00, and the contract was to be contingent on the Faixes’ “satisfactory assumption of the existing lease” and their assumption of the existing Small Business Administration loan. Defendant accepted the offer on December 14, 1984. Plaintiff provided Paul Faix with the telephone numbers of the lessor and the appropriate person at the SBA, and Faix made arrangements with them to assume the lease and the loan.

On December 28, 1984, defendant and the Faixes executed an agreement prepared by the Faixes’ attorney whereby defendant transferred to the buyers “the business including good will, equipment, improvements and fixtures” for $150,-671.60. On that same day, defendant assigned the lease to Faix.

The trial court granted summary judgment to defendant on plaintiff’s claim finding that “[t]he sale of the Berkeley Car Wash involved the ‘procuring of prospects’ by Plaintiff ‘calculated to result in the ... leasing ... of real estate’ § 339.010.1(7), RSMo. Plaintiff was not a ‘licensed real estate broker’ or ‘real estate salesperson.’ As a matter of law, the commission contract was unenforceable. § 339.160, RSMo.” In granting summary judgment to plaintiff on defendant’s counterclaim, the court stated that “[a] court will not aid either of two parties to an illegal contract, but will leave them where it found them.”

Applicable principles of law governing appellate review of a summary judgment are well established. A summary judgment is appropriate only where documents on file, including pleadings, depositions, admissions, and affidavits, show there is no genuine issue of material fact and that any party is entitled to summary judgment as a matter of law. Rule 74.04(c); Edwards v. Heidelbaugh, 574 S.W.2d 25, 27 (Mo.App.1978). Summary judgment, when appropriate, may be rendered against the moving party. Rule 74.04(c).

On appeal, plaintiff alleges the trial court erred in concluding his claim for compensation was barred by § 339.160, RSMo 1986.1 Plaintiff contends his activities did not involve “procuring of prospects, calculated to result in the ... leasing or rental of real estate” as stated in § 339.010.1(7), RSMo 1986, and, therefore, Chapter 339 does not apply. Even if Chapter 339 does apply, he argues that he is seeking compensation for his part in the sale of an on-going business and not for “services rendered in the buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate ...” as stated in § 339.160 because the lease assignment was “merely incidental” to the sale of the business.

The issue presented by plaintiff’s appeal is whether it is necessary for one to have a real estate broker or salesperson license to bring an action for a commission [845]*845on the sale of a business when the transaction includes the transfer of an interest in real property. This issue was presented to us in General Aggregate Corp. v. LaBrayere, 666 S.W.2d 901 (Mo.App.1984) and to the southern district in Ingalls v. Neufeld, 487 S.W.2d 52 (Mo.App.1972). Neither case resolves the issue before us, however. In Ingalls, the trial court dismissed the plaintiff’s petition for failure to state a claim. The court of appeals reversed because it was unclear from the face of the petition whether the plaintiff’s action was barred by § 339.160. In General Aggregate, we did not resolve the issue because of our conclusion that the plaintiff was not a real estate broker as defined in § 339.010, RSMo 1969, the version of the statute in force in 1972-1974, the time of the events that gave rise to the plaintiff’s claim.2

In 1978, however, the legislature amended § 339.010 to its present form, significantly altering its language.

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Cite This Page — Counsel Stack

Bluebook (online)
741 S.W.2d 842, 1987 Mo. App. LEXIS 5073, 1987 WL 2723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knight-v-johnson-moctapp-1987.