Medical West Building Corp. v. E. L. Zoernig & Co.

440 S.W.2d 744, 1969 Mo. LEXIS 858
CourtSupreme Court of Missouri
DecidedMay 12, 1969
DocketNo. 53316
StatusPublished
Cited by6 cases

This text of 440 S.W.2d 744 (Medical West Building Corp. v. E. L. Zoernig & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medical West Building Corp. v. E. L. Zoernig & Co., 440 S.W.2d 744, 1969 Mo. LEXIS 858 (Mo. 1969).

Opinion

PAUL E. VARDEMAN, Special Judge.

This action for damages for breach of lease is before us for the second time. After a jury verdict for plaintiff in the amount of $17,220 damages, plus $3616.20 interest, the trial court set aside the verdict and entered judgment for defendant. Plaintiff appealed, and we reversed and remanded with directions to the trial court to consider and act upon defendant’s alternative motion for new trial. Medical West Building Corp. v. E. L. Zoernig & Co., Mo., 414 S.W.2d 287, 294.

After remand, the trial court sustained defendant’s alternative motion for new trial on the grounds that the court had erroneously refused an instruction tendered by defendant submitting defendant's theory that “Zoernig’s quitting was not voluntary.” From that action of the trial court, plaintiff has again appealed.

All references to the parties are as they .appeared in the trial court. The detailed facts giving rise to this controversy are set out at length in our earlier opinion at 414 S.W.2d 287. Only those facts essential to our disposition of this appeal are repeated here.

The plaintiff corporation owned and operated an office building known as Medical West. The parties had entered into a written lease whereby defendant leased premises in the building for a term of five years at a monthly rental of $400 per month. The lease was modified February 3, 1958, to provide: “If at any time during the term of the present lease or the renewal thereof as aforesaid, the employment of Richard J. Zoernig as building manager is terminated by the corporation the lessee shall have the right to cancel the remaining term of said lease without penalty * * * ” provided notice was given plaintiff within ninety days after termination of Zoernig’s employment.

This modification of the lease resulted from negotiations for the purchase of a majority of the stock ownership of the plaintiff corporation by O. S. Rudman and his wife from E. L. Zoernig, Richard Zoernig and others. The Zoernigs had originally been the owners of a controlling majority of the stock of the Medical West Building Corporation. They sold their stock to the Rudmans on February 3, 1958, at which time control of the plaintiff company passed to Rudman who became president. Plaintiff continued the employment of Richard Zoernig as manager of the Medical West Building for one year beginning February 15, 1958, under a written contract.

Many of the tenants in the Medical West Building were stockholders in the plaintiff corporation. In March of 1958 controversy arose over Richard Zoernig’s management of the building. The tenants expressed to Rudman (now president of plaintiff corporation) dissatisfaction with Richard Zoernig’s management. There was in addition controversy over a policy instituted by Rudman and opposed by the tenants as well as Richard Zoernig to charge a fee for use of the parking facilities. For more on that dispute see: Bryan v. Medical West Building Corporation, Mo.App., 345 S.W.2d 389.

On March 25, 1958, a meeting of building tenants and management of the plaintiff corporation was held. Various financial [747]*747difficulties of plaintiff were discussed as well as the tenants’ complaints about the building- management. The day following that meeting Richard Zoernig met with Rudman to discuss building management problems. Subsequent to that meeting Zoernig ceased to function as building manager. He was replaced as manager by one Oxenhandler.

This meeting of March 26, 1958, was attended by Rudman and Oxenhandler, on behalf of plaintiff, and Richard Zoernig and Mr. Charles Judge, an attorney, for the Zoernig interests. Statements made and action taken at that meeting by Rudman and Zoernig are the basis for the dispute as to whether Zoernig’s termination as building manager was voluntary or not.

Defendant relying on the lease took the position that plaintiff had terminated Richard Zoernig as building manager and after giving notice to plaintiff vacated the premises as of September 1, 1958. This litigation followed.

The petition stated a claim for breach of contract, the damage sought by plaintiff being the balance due under the lease agreement. Defendant pleaded that Zoernig’s employment had been terminated by plaintiff, and that defendant Zoernig Company had exercised its right of cancellation by reason of the privilege granted it in the lease in the event Zoernig was terminated as building manager. The answer also raised an equitable defense of estoppel in the alleged failure of plaintiff to advise defendant that it opposed defendant’s lease cancellation.

The issue submitted to the jury at the trial was whether or not Richard Zoernig voluntarily terminated his position with plaintiff. Defendant’s instruction called for a verdict in its favor if the jury believed plaintiff terminated Zoernig’s employment. The jury resolved this issue for the plaintiff by its verdict.

The trial court upon consideration of defendant’s equitable defense of estoppel held that because plaintiff failed to respond to a letter from Zoernig’s attorney, Judge, dated June 4, 1958, notifying it of the cancellation of the lease, it was estopped to deny the validity of the cancellation. The trial court found for the defendant on the equitable defense; set aside the jury verdict on the ground that no jury issue was raised on the question of the voluntariness of Zoernig’s leaving, and entered a judgment for defendant.

As indicated earlier we reversed the action of the trial court on the first appeal for the reason that the facts in evidence did not establish the equitable defense of estop-pel, and held the trial court erred in entering judgment on that theory for defendant. We remanded the cause to afford the trial court the opportunity of ruling on defendant’s alternative motion for new trial. The trial court on consideration of that motion sustained it, granted defendant a new trial, and plaintiff has again appealed.

The trial court in its order granting defendant a new trial stated its reason to be: “The failure of the trial court to- permit the submission of the defense theory that Zoernig’s quitting was not voluntary, but as a result of plaintiff’s action when the trial court refused the following instruction of defendant:

“ ‘Your verdict must be for defendant if you believe: First, that plaintiff encouraged or influenced Richard Zoernig to give up his position as manager of plaintiff’s building, and
Second, that Richard Zoernig did so as a result of such encouragement or influence.’ ”

The legal issue presented by this appeal is whether or not defendant was entitled to the refused instruction. If it was then the trial court properly granted it a new trial.

The appellant argues that the instruction was properly refused originally by the trial court because the instruction contained an error of law in that it assumed that mere [748]

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Bluebook (online)
440 S.W.2d 744, 1969 Mo. LEXIS 858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medical-west-building-corp-v-e-l-zoernig-co-mo-1969.