Mark VII, Inc. v. Barthol

926 S.W.2d 128, 1996 Mo. App. LEXIS 933, 1996 WL 277015
CourtMissouri Court of Appeals
DecidedMay 28, 1996
DocketWD 51355
StatusPublished
Cited by13 cases

This text of 926 S.W.2d 128 (Mark VII, Inc. v. Barthol) 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
Mark VII, Inc. v. Barthol, 926 S.W.2d 128, 1996 Mo. App. LEXIS 933, 1996 WL 277015 (Mo. Ct. App. 1996).

Opinion

EDWIN H. SMITH, Judge.

Appellants appeal from an order sustaining respondent’s motion to dismiss appellants’ claim for civil conspiracy under Mo. Rule 55.27(a)(6). Appellants assert on appeal that the trial court erred in dismissing Count IV of appellants’ Second Amended Petition for Damages as against respondent because: 1) appellants do not have to ahege that respondent interfered with a hen before they can maintain a claim for civil conspiracy against respondent as found by the court; and, 2) appellants’ Second Amended Petition for Damages sets forth the elements necessary to state a cause of action for civil conspiracy against respondent with the specificity required by Missouri law.

FACTS

This case arises out of a claim for civil conspiracy filed by appellants, Mark VII, Inc. (f/k/a MNX, Incorporated) and Missouri-Nebraska Express, Inc., against respondent, Jeffrey B. Tonkin, an attorney practicing in Kansas City, Missouri.

On or about February 6, 1989, MNX and Missouri-Nebraska executed a written contract with a Missouri corporation known as American Financial Services, Inc. (“AFS”). Under the terms of this agreement, AFS agreed to secure the financing necessary for Tractor Leasing, Inc. to obtain, as lessee, 100 semi-tractors. In exchange for the promises made by AFS, MNX and Missouri-Nebraska paid AFS $140,224.50. This sum was to be held by AFS as a security deposit in the finaneing/leasing arrangement and returned to MNX and Missouri-Nebraska if AFS *130 failed to procure the financing needed by Tractor Leasing, Inc. at the rate and under the terms specified in the February 6, 1989 contract.

AFS failed to fulfill its agreement with MNX and Missouri-Nebraska, and further refused to return the $140,224.50 despite its default. Consequently, on June 27, 1989, MNX and Missouri-Nebraska filed suit in the Circuit Court of Buchanan County, Missouri, against AFS to recover the damages resulting from the contractual breaches and tortious acts committed by AFS when it failed to secure the requisite financing and refused to return the $140,224.50 “commitment fee” as agreed. Tonkin was not a party to that cause of action. The case was transferred to Jackson County, Missouri.

During the course of the lawsuit against AFS, appellants sought to depose the corporation’s principals, Steve Barthol and Robert Connor. Neither Barthol nor Connor appeared at their depositions and a default judgment was entered against AFS on November 5, 1990, in the amount of $301,510.52 plus interest.

Appellants executed against the property and effects of AFS and filed three garnishment actions against its accounts, but were only able to obtain a total of $12,774.88. The execution against AFS’s property and effects was returned unsatisfied since respondent and the principals of AFS had hastily liquidated the company in November 1990, leaving only an empty shell.

Thus in 1991, appellants commenced the lawsuit from which this appeal arises. Originally, appellants named Steve Barthol and Robert Connor, the principals of AFS, as the only defendants; however, as discovery in the case progressed, Steve Barthol’s wife, Sherry, was joined as an additional defendant, as was Evergreen Financial Services, Inc. (“EFS”), a company that Steve and Sherry Barthol formed within a month of the November 5, 1990 default judgment. Respondent was joined as a party-defendant in February 1995, after appellants confirmed that he had actively taken part in and otherwise encouraged and profited from the transactions under which AFS was liquidated and EFS was organized as its “successor” in November and December of 1990.

On February 21, 1995, appellants filed their Second Amended Petition in which they pled four counts. Count I was denominated an Action to Pierce the Corporate Veil. Count II sought judgment against EFS on a theory of Successor Liability. Count III sought to set aside conveyances of property from AFS to various respondents on a theory of Fraudulent Conveyance. Count IV sought judgment against Tonkin. Appellants allege that in August 1990, respondent and the principals of AFS conspired or otherwise entered into a common plan or scheme designed to hinder, delay and defraud appellants by draining AFS of all its assets, thus making it impossible for appellants to collect their judgment against AFS. Appellants’ claim for civil conspiracy is predicated on a series of alleged fraudulent conveyances and acts of corporate subterfuge that took place less than three months after obtaining their 1990 judgment. None of the allegations in the Second Amended Petition claim that any of the assets of the corporation that were alleged to be fraudulently conveyed were subject to a hen or other legal interest held by appellants.

On April 12,1995, Tonkin filed a Motion to Dismiss Count IV of appellants’ Second Amended Petition. He did so on three grounds. First, he averred that Count IV failed to state a cause of action because it did not allege that Tonkin interfered with a hen held by appellants. Second, he alleged that the Second Amended Petition failed to state a cause of action because it did not allege essential elements of conspiracy. Third, he claimed that appellants failed to join an indispensable party by dismissing their claim against Connor.

The circuit court heard respondent’s motion to dismiss on May 12, 1995. The trial court entered an amended order on July 5, 1995, dismissing Count IV of appellants’ Second Amended Petition. The court sustained the first prong of respondent’s motion, basing its decision on Dano v. Sharpe, 236 Mo.App. 113, 152 S.W.2d 693 (1941) because appellants did not allege interference with a hen. The court also found that appellants *131 did not allege the elements of a cause of action for civil conspiracy with the specificity required under Missouri law, and that dismissal was appropriate for that alternative reason as well. The court did not find that appellants failed to name an indispensable party. As part of the amended order the trial court found that there was no just reason for delaying entry of a final judgment in favor of Tonkin under Mo. Rule 74.01(b). On July 14, 1995, appellants appealed to this court. On August 7, 1995, plaintiffs and the remaining defendants filed a stipulation dismissing the case against the remaining defendants.

I.

The basis for granting respondent’s motion to dismiss appellants’ claim for civil conspiracy was two — fold: (1) appellants’ failure to allege that respondent interfered with a lien; and, (2) appellants’ failure to plead with sufficient specificity the necessary elements to state a cause of action for civil conspiracy. We will look first at the lien issue.

The standard of review when a case is dismissed under Rule 55.27(a)(6) is “whether, after allowing the pleading its broadest in-tendment, treating all facts alleged as true and construing all allegations favorably to plaintiffs, the averments invoke principles of substantive law entitling plaintiffs to relief.” Lowrey v. Horvath, 689 S.W.2d 625, 626 (Mo. banc 1985). While appellants admit they did not plead the existence of a lien, they claim that there is no such requirement.

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Bluebook (online)
926 S.W.2d 128, 1996 Mo. App. LEXIS 933, 1996 WL 277015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-vii-inc-v-barthol-moctapp-1996.