Moschenross v. St. Louis County

188 S.W.3d 13, 2006 Mo. App. LEXIS 58, 2005 WL 3667428
CourtMissouri Court of Appeals
DecidedJanuary 17, 2006
DocketED 86135
StatusPublished
Cited by14 cases

This text of 188 S.W.3d 13 (Moschenross v. St. Louis County) 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
Moschenross v. St. Louis County, 188 S.W.3d 13, 2006 Mo. App. LEXIS 58, 2005 WL 3667428 (Mo. Ct. App. 2006).

Opinion

PER CURIAM.

Jeanette Mott Oxford and Fred W. Lin-decke 1 (“coalition defendants”) appeal the judgment of the trial court in favor of Don P. Moschenross, UMB Bank, N.A., Missouri Development Finance Board, Regional Conventions and Visitors Commission, and Land Clearance for Redevelopment Authority of the City of St. Louis (collectively referred to herein as “plaintiffs”) and denying the coalition defendants’ cross-claim against St. Louis County (“the county”). The judgment granted plaintiffs’ petition for declaratory judgment, and found that the application of an amendment to the county charter to the county’s agreement to request appropriations to repay bond debt would unconstitutionally impair the contractual rights and obligations of the parties. The coalition defendants argue that the trial court erred in its judgment because there was no impairment of contractual rights, and the financing agreement at issue was illegal and void. They also claim the trial *17 court erred in denying their motion to dismiss because there was no justiciable controversy. The coalition defendants assert error in the trial court’s failure to dismiss plaintiffs’ suit because it targeted the exercise of their First Amendment rights. They also claim the trial court erred in granting the motion to dismiss their counterclaim for damages caused by the filing of a strategic lawsuit against public policy. Finally, the coalition defendants claim the trial court erred in entering judgment in favor of plaintiffs because they did not join an indispensable party, and therefore the court was without jurisdiction. Finding no error, we affirm.

The underlying facts of this case involve the development and financing of a new stadium suited for major league baseball, and intended to be the home of the St. Louis Cardinals (“the ballpark”), as well as the development of certain facilities adjacent to the ballpark (“the ballpark project”). In 2002, the Board of Alderman of the City of St. Louis, through ordinance number 65668, approved a redevelopment plan for the area to build the ballpark and surrounding facilities. This ordinance provided that the Land Clearance for Redevelopment Authority of the City of St. Louis (“LCRA”) was to undertake the development as a land clearance project, and the area was to be redeveloped. Ultimately, as part of the financing for the project, a Project Financing, Construction, and Operation Agreement (“financing agreement”) was entered into between the Missouri Development Finance Board (“MDFB”) and St. Louis County. Pursuant to the agreement, MDFB agreed to issue $46,255,000.00 in bonds. The county agreed to include a request for annual appropriation of amounts to finance the bonds in the annual budget proposals submitted to the county council during the term of the agreement. Pursuant to the financing agreement, the county stated its expectation was to make such payments from revenues collected from the sports and entertainment tax 2 . The county adopted ordinance number 21,644,2003 (“the ordinance”) which authorized the county’s participation in the financing agreement. The county also entered into a Cooperation Agreement with the LCRA and MDFB regarding the sale of the bonds.

On December 23, 2003, a Trust Indenture was executed between MDFB and UMB Bank, N.A. (“UMB”). Pursuant to the Trust Indenture, the bonds were issued, and the proceeds were provided to the LCRA to be used to finance a portion of the cost of the development of the ballpark project. The LCRA loaned the bond proceeds to Cardinals Ballpark, L.L.C. (“team owner”). The team owner then escrowed the funds for construction of the ballpark.

After this financing scheme was in place, the Coalition Against Public Funding for Stadiums filed signatures with the County Board of Election Commissioners proposing an amendment to the county charter. Proposition A, the proposed amendment, was placed on the November 2, 2004, ballot. Proposition A posed the question:

Shall the St. Louis County Charter be amended so that any County assistance of value, whether direct or indirect, to development of a professional sports facility, requires prior to any assistance being given that the County Auditor first prepare a fiscal note and that the governing body proposing to take action to provide financial assistance hold a *18 public hearing and that the financial assistance be approved by a majority of the qualified voters of the County voting thereon?

Proposition A passed, and the election results were certified on November 16, 2004.

Plaintiffs filed suit against the coalition defendants and the county on November 17, 2004, seeking a declaratory judgment and injunctive relief. Plaintiffs sought a declaration that Proposition A did not invalidate the rights and obligations created under the provisions of the ordinance approving the county’s participation in the financing agreement, the Cooperation Agreement, the project agreement or the bonds. They also claimed Proposition A was unconstitutional. The coalition defendants subsequently moved to dismiss the petition for failure to state a claim. They alleged several grounds for dismissal, including lack of standing, lack of justiciable controversy, that the suit constituted a strategic lawsuit against public policy, the financing agreement was unconstitutional, the Cooperation Agreement was invalid, and that plaintiffs failed to state facts showing they were entitled to relief. The coalition defendants also filed a cross-claim against the county. In their cross-claim, they sought a judgment declaring the financing agreement and ordinance illegal and void and declaring Proposition A legal and valid. They also requested injunctive relief to prevent the county from refusing to follow Proposition A. Additionally, the coalition defendants filed a counterclaim against the LCRA. They also filed a counterclaim against all plaintiffs alleging a violation of their First Amendment rights as a result of the filing of a strategic lawsuit against public policy. The coalition defendants’ counterclaim against LCRA and their counterclaim against all plaintiffs were dismissed by the trial court. The trial court also dismissed the petition as to the coalition defendants. The cause proceeded to trial on plaintiffs’ declaratory judgment and injunctive relief claims against the county, and the coalition defendant’s cross-claim against the county. Stipulations of fact and exhibits were provided to the trial court, and testimony was also presented at trial. The court entered a judgment in favor of plaintiffs on their petition for declaratory judgment and in-junctive relief against the county. The court denied the coalition defendants’ motion to dismiss. The court also denied the first amended cross-claim of the coalition defendants against the county as moot. The present appeal followed.

We will affirm the judgment in a court-tried case unless it is not supported by substantial evidence, it is against the weight of the evidence, or it erroneously applies or declares the law. Roeder v. Ferrell-Duncan Clinic, Inc., 155 S.W.3d 76, 79 (Mo.App.2004) (citations omitted). “A judgment is presumed correct, and the appellant has the burden of proving it erroneous.” Id.

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Cite This Page — Counsel Stack

Bluebook (online)
188 S.W.3d 13, 2006 Mo. App. LEXIS 58, 2005 WL 3667428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moschenross-v-st-louis-county-moctapp-2006.