Kolb v. Dietz

454 S.W.2d 632, 1970 Mo. App. LEXIS 626
CourtMissouri Court of Appeals
DecidedApril 28, 1970
Docket33586
StatusPublished
Cited by8 cases

This text of 454 S.W.2d 632 (Kolb v. Dietz) 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
Kolb v. Dietz, 454 S.W.2d 632, 1970 Mo. App. LEXIS 626 (Mo. Ct. App. 1970).

Opinion

SMITH, Commissioner.

The judgment appealed from is the result of a directed verdict against plaintiff entered at the close of plaintiff’s case in a jury tried case. Plaintiff’s amended petition was in two counts, but an election to proceed on Count I was made at the close of plaintiff’s evidence so Count II need not concern us.

Count I alleged that the parties entered into an oral agreement in the spring of 1964 to form a partnership for the operation of a golf driving range in St. Louis County. The agreement was that plaintiff would hold a minority ownership in the operation, defendant a majority ownership. Plaintiff was to contribute no more than $10,000 in cash for improvements and equipment, would contribute his time to the development of the range and his skill as a plumber to improve existing buildings on the proposed driving range. Plaintiff alleged he devoted at least 428 hours to planning, supervision, development and improvement of the range between the date of the oral agreement and March 28, 1965, in reliance upon the agreement. On March 26, 1965, at the request of defendant, plaintiff withdrew $3200 from his savings account for the purchase of golf balls and other equipment and turned a check for this amount over to defendant who accepted it. Several days later the check was returned by defendant to plaintiff' and defendant advised plaintiff that he could not get the land required and the whole deal was off. Shortly thereafter defendant did acquire the land and purchased balls and equipment. Plaintiff sought judgment for the lost interest on the $3200 and the reasonable value of his services in the amount of $4280. Defendant’s answer was a general denial of all allegations.

Plaintiff’s evidence was sufficient to establish the allegations of his petition and would support the conclusion that defendant’s statement he could not obtain the land was not true and that defendant breached whatever agreement existed between the parties. After this statement and the return of plaintiff’s check defendant did open the driving range and was still operating it at the time of trial.

The testimony also developed the existence of a written document dated March 26, 1965, and entitled Article of Co-partnership, signed by both parties. We find it unnecessary to set out in full this agreement but certain language is to be noted. The agreement is stated as “The parties above named have agreed to become co-partners in business to operate a golf driving range and by these presents do agree to be co-partners together.”

The next paragraph begins “And also, that they shall and will at all times during the said co-partnership; bear, pay, and discharge equally between them, all rents, and other expenses that may be required for the support and management of the said business * * * ”

Thereafter the document contains this language “And also, the said co-partners, once in, whenever deemed necessary, shall make, yield and render, each to the other, a ture (sic), just and perfect inventory and account of all profits and increase by them, or either of them made * * * ”

Defendant’s motion for directed verdict was premised upon the theory that plain *635 tiff’s case established that the parties were partners at the time of defendant’s repudiation of their agreement, that no evidence was presented of an express or implied agreement to pay for the work furnished, and that no evidence was presented of damages based upon a loss of the prospective profits of the enterprise. As previously indicated this motion was granted on the ground that the evidence showed as a matter of law “that plaintiff and defendant formed a partnership and hence the plaintiff cannot maintain against defendant an action for services rendered.” It was the court’s opinion that White v. Lemley, Mo., 328 S.W.2d 694 was controlling.

White v. Lemley, supra, involved a situation where plaintiff and defendant entered into a business relationship under which defendant would provide certain capital and plaintiff would provide services, and after defendant had recouped his capital they would share profits equally. Plaintiff contended that he was wrongfully prevented from completing his service, and that he was entitled to waive the contract and sue for quantum meruit for the services rendered. The parties had operated for some period of time under their agreed arrangement which the court found to be a partnership. It was held that no promise, express or implied, to pay for the services rendered was made and that the only agreement for remuneration was that the parties would share in the profits. Under such circumstances an action for quantum meruit could not be maintained. See also Pemberton v. Ladue Realty and Construction Co., 237 Mo.App. 971, 180 S.W.2d 766, which presented a similar situation. Both White and Pemberton expressly ruled that although quantum meruit would not lie under the circumstances there, the plaintiff could maintain an action at law for breach of the partnership contract or he might sue in equity for formal dissolution and accounting.

The parties here, faced with these two decisions, have taken opposite positions on whether or not the parties had actually formed a partnership or had entered into an agreement to form a partnership in the future. We do not consider this to be the crucial issue in the case for reasons discussed hereafter, but it dees have a bearing on the issues. Which position is correct is essentially a question of the intent of the parties, which must be gleaned from the facts of the particular case. Goodwin v. Winston, Mo.App., 230 S.W.2d 793 [3]; Fyock v. Riales, Mo.App., 251 S.W.2d 102. If reasonable minds could differ on what that intent was it presents a question of fact for the jury. Fyock v. Riales, supra, [1-4]. In determining the correctness of the court’s action we review the evidence in the light most favorable to plaintiff. We are unable to conclude that the written document executed on March 26, 1965, between the parties definitely determines the question of intent either way. It states that the parties have agreed to become co-partners in business to operate a golf driving range and do agree to be co-partners together. On March 26, 1965, there was no golf driving range in operation. The language of the document utilizes the future tense throughout and states “the said co-partners, once in” with no explanation of the emphasized language. If the document was to be immediately effective we cannot understand the use of the term “once in.” Plaintiff’s testimony, which came in without objection, was that he did not consider himself a partner until the range was actually open for business, and that the document executed was an agreement to become partners at that time. Plaintiff testified that, after being advised that the “deal” was off, he at defendant’s request returned his copy of the March 26 agreement to defendant who indicated his intention to burn both copies. Such action is more in keeping with an agreement to form a partnership in a business which could not then be operated, than with an extant partnership where rights and liabilities had already accrued.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chioffi v. Martin
186 A.3d 15 (Connecticut Appellate Court, 2018)
Skinner v. Thomas
982 S.W.2d 698 (Missouri Court of Appeals, 1998)
Chapman v. Dunnegan
665 S.W.2d 643 (Missouri Court of Appeals, 1984)
Wirth v. Wirth
646 S.W.2d 394 (Missouri Court of Appeals, 1983)
Geczy v. LaChappelle
636 P.2d 604 (Alaska Supreme Court, 1981)
Dalton v. Austin
432 A.2d 774 (Supreme Judicial Court of Maine, 1981)
Ghertner v. Lipton
563 S.W.2d 531 (Missouri Court of Appeals, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
454 S.W.2d 632, 1970 Mo. App. LEXIS 626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kolb-v-dietz-moctapp-1970.