Modern Farm Systems, Inc. v. Ferguson

591 S.W.2d 231, 1979 Mo. App. LEXIS 2690
CourtMissouri Court of Appeals
DecidedDecember 3, 1979
DocketNo. KCD 30415
StatusPublished

This text of 591 S.W.2d 231 (Modern Farm Systems, Inc. v. Ferguson) 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
Modern Farm Systems, Inc. v. Ferguson, 591 S.W.2d 231, 1979 Mo. App. LEXIS 2690 (Mo. Ct. App. 1979).

Opinion

ROBERT R. WELBORN, Special Judge.

Suit on promissory note. Trial court gave judgment for payee for amount sued for. Maker of note appeals.

Appellant John H. Ferguson was the operator of a farm supply business in Kings-ville, Missouri. He acted as a distributor of crop dryers and grain bins manufactured by respondent Modern Farm Systems, Inc., of Webster, Iowa. Near the end of 1974, Ferguson owed Modern some $19,000 plus on an open account for goods furnished Ferguson by Modern. Modern requested its salesman, Bragg Brown, to settle some disputes with Ferguson over items on the account and to get a note from Ferguson for the amount owed. After two or three months’ discussion with Ferguson, Brown obtained an eight-month note from Ferguson payable to Modern for $18,545.52, representing the amount shown on the account less credits of some $1,000 to which Brown agreed.

On April 27, 1976, Modern filed suit on the note, claiming that $12,163.69 was then due and unpaid on the note. Ferguson’s answer alleged payment of all sums due Modern under the note and agreement between him and Modern.

At the trial, the execution of the note Was admitted and defendant accepted plaintiff’s record of the payments on the note.

However, testifying in his own behalf, Ferguson stated that there were credits which he claimed had not properly been attributed to his account on the note. One of the items was for $691 charged for a stir-way. In this court, respondent has acknowledged that appellant is entitled to credit for this item and has consented to modification of the judgment accordingly. Ferguson also stated that on a shipment of bins which had been loaded on his truck by Modern employees in Iowa, the truck was overloaded and overturned, damaging the floors for three of the bins. When counsel for Modern objected to testimony regarding the amount of loss as irrelevant, the trial court sustained the objection and stated:

“Is there going to be some testimony, Miss Young, in regard to these damaged items that there was some agreement that he was to receive credit for them in some fashion? If there is not, why that, of course, is a subject for claim by this defendant against the plaintiff rather than — As I understand his answer, is that he paid the Note either by cash or by credit, and unless — unless there is some evidence that he’s got an agreement in regard to having credit, why that’s a subject of another proceeding, or counterclaim in this proceeding. It’s not pleaded as I understand.”

When counsel then asked Ferguson whether or not at the time the note was executed there was an agreement that “these amounts would be adjusted,” he replied:

“Uh, the only — the only, uh, agreement that I had on that was with Bragg. And he said he would help me move some of that stuff. And then, on that stir-way, he said he would get it fixed, and there wasn’t nothing done about it.”

Ferguson later stated that some items for which he had been billed $378.30 on a December 21, 1973 invoice had never been received.

On cross-examination, counsel for plaintiff inquired briefly about the alleged truck accident, generally eliciting that Ferguson’s knowledge of that incident was based upon what his driver had told him.

At the conclusion of the trial, the court announced its finding in favor of plaintiff. Ferguson objected that he was not being allowed credit which plaintiff had agreed to give him. The court stated that the credits pre-existed the note and should have been taken care of when the note was signed.

“ * * * The only questions that are raised in this lawsuit are how much is due [233]*233and owing on this Note, and whether or not you have paid it. And from what I’ve heard you say, you haven’t paid it. What you are saying is that you are entitled to some credit for it, but you haven’t pleaded for any credits.

“What you have said in your pleadings is that it’s been paid, and I haven’t heard anything that says it is paid, so I don’t have any choice but to go ahead and enter judgment on the — on the Note.”

Judgment for plaintiff for $12,132.05, plus interest of $2,260.20, was entered May 15, 1978.

On May 30, 1978, new counsel entered his appearance for Ferguson and filed a motion to amend Ferguson’s answer to assert that defendant was never told that the promissory note would be in full and final settlement of all prior disputed items. He also sought to allege that Brown as agent for plaintiff had agreed to aid defendant in selling certain damaged items and had agreed that if they could not be sold without loss, additional credits would be allowed against the note; that the items were sold at a loss of $1,778.95. He also sought to amend regarding the stir-way. He also asked leave to assert a counterclaim for damages of $5,000 to Ferguson’s truck as a result of negligence on the part of Modern’s employees in overloading the truck. A motion for new trial on behalf of defendant was also filed.

All of defendant’s after-trial motions were overruled and he appeals.

Appellant’s first contention is that the trial court erred in refusing, upon the motion for a new trial, to open the judgment, take additional testimony, and enter a new judgment, such refusal amounting to an abuse of discretion because material evidence which might have affected the merits of the action was excluded as beyond the scope of the pleadings, although request to amend the answer was made by after-trial motion.

Basically, the contention is that appellant’s original counsel who filed an answer on behalf of appellant and withdrew before trial and trial counsel who did not undertake to amend the answer and who failed to make offers of proof when objection to Ferguson’s testimony was sustained ineptly presented his defenses of failure of performance or lack of consideration and also failed to assert possible set-offs which Ferguson had against respondent’s claim. Appellant relies upon Rule 78.01 as authority for the trial court to grant the relief which he sought in order to avoid a result which, according to appellant, “ * * * was possibly unjust and probably the result of ineptness on the part of defense counsel during both the pleading and trial stage of this case.”

Appellant acknowledges that his request was addressed to the trial court’s discretion.

“Civil Rule 78.01, V.A.M.R. vests trial courts with discretion to open the judgment in a court-tried case, take additional testimony, amend findings of fact or make new findings, and direct entry of a new judgment. Such action, however, is not favored and rests largely in the sound discretion of the trial Court. Absent a clear abuse of that discretion, the reviewing court will not interfere. Desloge v. County of St. Louis, 431 S.W.2d 126, 135 (Mo.1968).” Miller Land Company v. Liberty Township, 510 S.W.2d 473, 476[6] (Mo.1974).

No abuse of discretion has been demonstrated in this case. The court heard Ferguson’s vague claims for credit. None was specific except in the case of the stir-way and respondent has agreed that credit may be allowed for that item. Ferguson’s testimony about credit on the items damaged on the truck is quoted above. Obviously it showed no agreement that he was to receive credit as a result of the incident.

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Related

Miller Land Company v. Liberty Township
510 S.W.2d 473 (Supreme Court of Missouri, 1974)
Desloge v. County of St. Louis
431 S.W.2d 126 (Supreme Court of Missouri, 1968)
Pride v. Lamberg
366 S.W.2d 441 (Supreme Court of Missouri, 1963)

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Bluebook (online)
591 S.W.2d 231, 1979 Mo. App. LEXIS 2690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modern-farm-systems-inc-v-ferguson-moctapp-1979.