Major Saver Holdings, Inc. v. Education Funding Group, LLC

350 S.W.3d 498, 2011 Mo. App. LEXIS 1336, 2011 WL 4948216
CourtMissouri Court of Appeals
DecidedOctober 18, 2011
DocketWD 73447, WD 73493
StatusPublished
Cited by4 cases

This text of 350 S.W.3d 498 (Major Saver Holdings, Inc. v. Education Funding Group, LLC) 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
Major Saver Holdings, Inc. v. Education Funding Group, LLC, 350 S.W.3d 498, 2011 Mo. App. LEXIS 1336, 2011 WL 4948216 (Mo. Ct. App. 2011).

Opinion

PER CURIAM:

Major Saver Holdings, Inc. (“Major Saver”) appeals the trial court’s judgment in favor of the defendant in its breach of contract action against Education Funding Group, L.L.C. (“Education Funding”). On cross-appeal, Education Funding contests the amount of the award of attorneys’ fees. The judgment is affirmed in all respects. Education Funding’s motion for attorneys’ fees on appeal is granted. We remand to the trial court for assessment of those fees.

Background

This dispute began with a parting of the ways between the appellant company, Major Saver, and one of its former owners, Major Hammett, II, in late 2007. Sometime before October 8, 2008, Hammett began working for the respondent company, Education Funding. Hammett’s departure from Major Saver resulted in litigation between Major Saver and Education Funding. The companies are both in the business of arranging and managing fund-raising campaigns for education foundations, school districts, and parent teacher associations. The companies are in direct competition with one another. The fund-raising efforts consist primarily of the companies creating restaurant discount cards that are then sold by the students to members of the community.

As part of a mediated end to the lawsuit related to Hammett’s separation from Major Saver, Major Saver and Education Funding (among others) entered into a “Settlement Agreement and Release of All Claims.” That agreement contained a provision that limited Education Funding’s ability to solicit business from various Missouri school districts for the period of October 8, 2008 to August 31, 2012. Specifically, Paragraph 8 of the agreement provides:

*502 (a) Non-solicitation. The Defendants agree that they will not solicit the school districts listed below, meaning that the defendants will not directly or indirectly initiate contact with these schools. The Defendants may provide proposals or bids, but only if requested by these schools.

(Emphasis added.) The agreement defined “School Districts” as “the individual or individuals who are charged with making fundraising decisions (ie., those who would make the decision to contract with Defendants or Major Saver)” for specific schools. Significant to this case, among those schools was the Republic School District. In the lawsuit that is the subject of this appeal, Major Saver claimed that Education Funding violated the non-solicitation clause with regard to that school district.

The Republic School District had a prior relationship with both Major Saver and with Mr. Hammett. Major Saver began providing fundraising services for Republic in 2004. Between 2004 and 2007, Mr. Hammett worked with the Republic School District on behalf of Major Saver. In 2008, Republic again used Major Saver’s services for its fundraising drive, but this time, Hammett was not involved with the campaign. Republic raised less money in 2008 than it had raised in 2007. In December 2008, Republic and Major Saver discussed preliminary dates for the upcoming 2009 fundraising drive.

Tracy Hankins is an elementary school principal for the Republic School District. The school principals in the Republic district have direct, hands-on involvement with the fundraising programs provided by the parties in this case. Thus, she was acquainted with Mr. Hammett and had worked closely with him in the past.

In March 2009, Ms. Hankins saw Mr. Hammett at an educational conference she was attending. She approached Mr. Hammett and mentioned that their 2008 fund-raising numbers had been down. Hammett told her he was no longer associated with Major Saver; he said he had “split to a new company.” She then asked “what he could do for us about getting the numbers back up.” Hammett told her that “[i]t would have to be with his new company if that happened.” Ms. Hankins asked Hammett “how Education Funding Group [his new company] could do the program.”

After returning from the conference, Hankins telephoned Stan Coggin, President of the Republic Community Foundation, and told him about her conversation with Hammett. The Republic Community Foundation is a community organization that was responsible for the district’s fundraising efforts. The Foundation is a not-for-profit corporation that was formed for the specific purpose of supporting the community and the school district through grants and gifts. Hankins suggested a lunch meeting between the three of them, and Coggin agreed. Ms. Hankins understood Coggin as asking her to have Hammett call him to schedule the meeting details. At the end of the conversation, Coggin understood that Ms. Hankins would contact Hammett and ask him to call Coggin.

In early April 2009, after her conversation with Coggin, Hankins attended another conference at which she again saw Mr. Hammett. Hankins told Hammett that she and Coggin would like to set up a lunch meeting with him. She gave Hammett Coggin’s telephone number and asked him to call Coggin to finalize the arrangements.

Thereafter, Hammett called Coggin and they arranged a luncheon meeting on April 21st. At that meeting, Hammett described to Coggin and Hankins the services that Education Funding could provide for their 2009 fundraising drive. *503 Coggin said he would ask the Board if it Would permit Hammett to make a presentation on Education Funding’s behalf. Hammett paid for the lunch.

The Board agreed to hear Hammett’s presentation. Hammett made his presentation at the Board’s next meeting in May, and the Board voted to use Education Funding for its 2009 fundraising. Coggin then sent a letter to Major Saver informing it that the Foundation would be using Education Funding for the 2009 campaign. The 2009 campaign took in a total of $46,440, of which, Education Funding’s share was $23,220.

Major Saver filed a petition for breach of contract against Education Funding in December 2009. It alleged that Education Funding, through Hammett, had breached the terms of the settlement agreement by improperly soliciting the Republic Community Foundation. Major Saver sought damages of the amounts that Education Funding earned in the 2009 campaign. 1 It also sought an award of its attorneys’ fees and costs as the prevailing party, pursuant to the terms of the settlement agreement.

The parties presented evidence and arguments at a bench trial in December 2010. By agreement of the parties, excerpts from the depositions of both Tracy Hankins and Stan Coggin were read into the record. Mr. Hammett testified before the court, as did representatives from both Major Saver and Education Funding.

Based on the evidence outlined above, the trial court concluded that Education Funding did not breach the terms of the settlement agreement through any direct or indirect solicitation of Republic. Specifically, the court found that the initiation and solicitation originated with Ms. Han-kins, in that she “twice, at different times,” initiated contact with Hammett. The court found that Hankins was acting as an “agent” of Coggin when she asked Hammett to telephone Coggin, and that Hammett telephoned Coggin in response to that request.

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350 S.W.3d 498, 2011 Mo. App. LEXIS 1336, 2011 WL 4948216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/major-saver-holdings-inc-v-education-funding-group-llc-moctapp-2011.