Martinez v. Midland Bank & Trust Co.

652 S.W.2d 193, 1983 Mo. App. LEXIS 3250
CourtMissouri Court of Appeals
DecidedApril 12, 1983
DocketNo. WD33284
StatusPublished
Cited by4 cases

This text of 652 S.W.2d 193 (Martinez v. Midland Bank & Trust Co.) 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
Martinez v. Midland Bank & Trust Co., 652 S.W.2d 193, 1983 Mo. App. LEXIS 3250 (Mo. Ct. App. 1983).

Opinion

WASSERSTROM, Judge.

Rene Martinez died on March 20,1979, as the result of the collapse of a trench in which he was working during the progress of a sewer project. His widow and child collected Workmen’s Compensation death benefits from Gibson & Bowles, Inc. (“Gibson & Bowles”), Martinez’ employer. They then sued as plaintiffs in this action for damages against the following third parties: Midland Bank & Trust Company (“Midland”), Mersco Realty Co., Inc. (“Mer-sco”), North Star Investment Company (“North Star”), Missouri Public Service Company (“MoPub”), Western Electric Company (“Western Electric”), Stanley S. Grace and Lavern M. Grace (“Graces”), Unity School of Christianity (“Unity School”), Dave Cross (“Cross”), W.R. Gibson (“Gibson”), John Mehrer (“Mehrer”) and the City of Lee’s Summit, Missouri (“the City”). Defendants Midland, North Star, MoPub, [195]*195Graces, Unity School, Cross and the City filed motions for summary judgment. Gibson filed a motion to dismiss which was treated as a motion for summary judgment. All said motions were sustained and made final for purpose of appeal. The present appeal by plaintiffs was generated by that ruling.

The following facts appear from plaintiffs’ petition. Defendants Midland, Mer-sco, North Star, MoPub, Western Electric, Graces, Unity School, Cross, and the City all own land within the City. Prior to March 20, 1978, all of those defendants (with the exception of the City) “undertook through contract with Gibson and Bowles, Inc., installation of a sewer line on their property” and the “construction of such sewer on the property of said Defendants, aforesaid, was additionally undertaken by the City of Lee’s Summit, Missouri, jointly with said property owners” and that defendant Gibson “was in general control and supervision over such project as the executive officer of Gibson and Bowles, Inc....”

The petition further stated that as part of the sewer project it was necessary to dig a ditch approximately 15 feet in depth in which to lay the sewer line pipe and that such work was an inherently dangerous condition and activity unless adequate precautions were taken to avoid such danger. The petition proceeded that the defendants and each of them were negligent in failing to shore or undertake other precautions to avoid walls of the ditch caving in, by allowing the operation of heavy equipment in and on top of the ditch, in failing to utilize any equipment to protect the deceased from danger of cave in, and in permitting the ditch to remain in an open condition prior to the date of Martinez’ death.

The following additional facts appear from answers to interrogatories and from affidavits filed in support of the various motions for summary judgment. Gibson is not only the president and a principal stockholder of Gibson & Bowles, but in addition he is chairman of the board and a 35% stock owner of Midland and president and a 50% stock owner of North Star. In 1978, Midland was planning to construct a new bank building and in that connection was going to need sewer service. Gibson knew that the other property owners in the vicinity would likewise need or already needed sewer service to serve their respective properties and thus had an interest in obtaining sewer service. Gibson knew that it would be far cheaper and quicker to get the sewer line built if each property owner would agree to contribute voluntarily rather than having to go through the formalities of setting up a sewer district, assess benefits, and have formal plans and specifications prepared and seek bids. He therefore got in touch with each of the defendant landowners, discussed the proposed sewer project, and explained that the state was about to do some highway construction and the project would be far more expensive if not completed prior to that construction.

After what seems to have been considerable informal discussion, Gibson addressed a letter to each of the property owners on the stationery of Gibson & Bowles under date of December 27, 1978, as follows:

“[Addressed to each property owner]
Re: 50 Highway Main Sewer Lee’s Summit, Missouri
[Dear_:]
I think we finally have all the pieces put together on the above subject sewer. The plans have been approved and all contributors are in agreement.
This sewer will serve all our properties as shown on the enclosed Plans. You will find herewith:
1. Three copies of the Escrow Agreement which will also serve as a contract for Gibson & Bowles.
2. One copy of the construction plans prepared by Larkin & Associates.
Please execute and return two copies of this agreement along with your check in the amount of [$_] to the City of Lee’s Summit. Mail or deliver to:
Mr. Robert G. Keefe,
Finance Director
City of Lee’s Summit
City Hall — 220 S. Main St.
Lee’s Summit MO 64063.
[196]*196Please give this matter your very earliest attention. Time is rapidly running out on us. The Missouri State Highway Commission is letting the section of 1-470 East from Highway 50 January 5, 1979. We must install that section of pipe crossing their right-of-way prior to January 31, 1979. This is no problem if we have back in our hands all contributor’s agreements by January 15th.
Any questions, please call.
Sincerely,
/s/ W.R. Gibson
W.R. Gibson”

In response to that letter, defendants Midland, Grace, Cross, MoPub and Unity School and also Mercantile Stores, Inc. each signed an individual, separate copy of an Escrow Agreement which read as follows:

“To the City of Lee’s Summit, Missouri:
The undersigned herewith delivers and deposits a check in the amount of [$_] representing the pro-rata share of undersigned toward the total cost of a sanitary sewer line designated the 50 Highway Main Sewer, to serve undersigned and other properties. The undersigned understands that Gibson and Bowles, Inc., contractors, will construct the sanitary sewer line as designed and engineered by Larkin and Associates. The undersigned has been advised that the total cost of construction will be One Hundred Eighty One Thousand Nine Hundred Eighty-Six and no/100 Dollars ($181,986.00).
The above sums shall be deposited with the City of Lee’s Summit by each property owner no later than January 15, 1979. The city will then deposit all sums received by it in a trust fund, and investment earnings will be credited to said fund on the same basis as other city funds.
The undersigned has been advised that the property owners involved in this project are Midland Bank, Stanley Grace, Mercantile Stores, Inc., Dave Cross Motors, Missouri Public Service Company, Unity Village and the City of Lee’s Summit, Missouri. Based upon the total cost of construction, the pro-rata share of each is as follows:
Midland Bank $ 17,566.00
Stanley Grace 5,126.00
Mercantile Stores, Inc. 72,358.00

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Bluebook (online)
652 S.W.2d 193, 1983 Mo. App. LEXIS 3250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martinez-v-midland-bank-trust-co-moctapp-1983.