Norber v. Marcotte

134 S.W.3d 651, 2004 Mo. App. LEXIS 323, 2004 WL 419875
CourtMissouri Court of Appeals
DecidedMarch 9, 2004
DocketED 82672
StatusPublished
Cited by45 cases

This text of 134 S.W.3d 651 (Norber v. Marcotte) 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
Norber v. Marcotte, 134 S.W.3d 651, 2004 Mo. App. LEXIS 323, 2004 WL 419875 (Mo. Ct. App. 2004).

Opinion

BOOKER T. SHAW, Presiding Judge.

Steven and Deborah Marcotte (collectively, “Marcotte”) appeal from the trial court’s entry of a default judgment against them in favor of Douglas Norber (“Nor-ber”) and from the damage awards derived from that judgment. Marcotte raises six points on appeal challenging the trial court’s rulings with respect to the discovery sanctions entered against him and the damage awards arising from Norber’s petition, which Marcotte claims does not state a claim for relief. The trial court’s judgment is affirmed in part, reversed and remanded in part. 1

In October 1993, Marcotte and Norber agreed to open a transmission supply business in the City of St. Louis. Pursuant to their agreement, each party would hold a fifty-percent ownership interest in the business. Norber left his current employment to work full time at the business, while Marcotte continued to work elsewhere.

Norber continued to perform all aspects of management and work full time until sometime in 1997, when Marcotte joined him. Marcotte assumed responsibility for the financial aspects of the business, while Norber retained control over purchasing supplies and inventory, making sales, and handling all personnel matters. Norber took no income during the early years of the business at the behest of Marcotte in an effort to make the business more profitable.

The business flourished from 1998 until 2001. Periodically, Norber approached Marcotte about formalizing their agreement in a written partnership agreement, but Marcotte declined. Marcotte assured Norber that the partnership could be formalized at a later date. Norber also requested to review and inspect the financial papers of the business, but Marcotte did not permit Norber access to these documents.

In July 2001, Norber retained counsel to draft a formalized partnership agreement. When Norber approached Marcotte about reviewing and signing the agreement, Marcotte locked Norber out of the business and prevented him from engaging in any operation of the business.

Norber filed suit against Marcotte for fraud and damages in St. Louis City in August 2001. After protracted discovery disputes, Norber voluntarily dismissed his petition on May 3, 2002.

*657 Later that same day, Norber refiled his petition requesting an accounting of the partnership assets, as well as seeking damages for breach of partnership agreement, breach of fiduciary duty, unjust enrichment, and fraudulent misrepresentation in St. Louis County. In October 2002, Norber propounded interrogatories and requests for production to Marcotte. Marcotte refused to answer several of the interrogatories, objecting to the requests on various grounds. The trial court overruled all of Marcotte’s objections to the discovery requests and granted Norber’s motion to compel production.

Norber filed a motion for sanctions against Marcotte for failing to comply "with the trial court’s order to tender proper discovery. The trial court granted Nor-ber’s motion for sanctions, but allowed Marcotte an additional fifteen days to comply with the discovery requests or his answer would be stricken.

Marcotte delivered two boxes to Norber containing 3,354 pages of discovery. After reviewing its contents, Norber brought a second motion for sanctions, arguing the documents were evasive, duplicative, incomplete, and nonresponsive to his request for production. The trial court conducted an in camera inspection of the documents and agreed with Norber’s assessment. The trial court struck Marcotte’s answer and later entered a default judgment against him.

The trial court held a hearing, on the issue of damages only, in January 2003. Norber presented two witnesses at the damages hearing and testified on his own behalf. The trial court did not permit Marcotte to present any evidence on his behalf, cross-examine any witnesses, or offer any objections during the witnesses’ testimony.

On February 13, 2003, the trial court awarded Norber both actual and punitive damages on his petition. The trial court overruled Marcotte’s motion for new trial. Marcotte appeals, raising six points of error with respect to the trial court’s judgment.

Marcotte’s first point on appeal claims the trial court lacked subject matter jurisdiction to strike his answer and enter a default judgment against him in that Norber’s petition does not state a claim upon which relief can be granted. Mar-cotte argues the petition is replete with legal conclusions and lacks the factual foundation to support Norber’s claims.

The defense of failure to state a claim can be raised at any time, including upon appeal. Rule 55.27(g)(2); Bray v. Brooks, 41 S.W.3d 7, 15 (Mo.App. W.D.2001). The failure to state a claim is a jurisdictional defect and may be raised sua sponte by the appellate court. Bray, 41 S.W.3d at 15.

Our review of whether a petition fails to state a claim requires us to consider the pleadings, allowing them their broadest intendment, and accepting as true the facts as pleaded with all reasonable inferences arising therefrom. Polk v. Inroads/St. Louis, Inc., 951 S.W.2d 646, 647 (Mo.App.E.D.1997). If the allegations invoke principles of substantive law entitling a plaintiff to relief, the petition should not be dismissed. Industrial Testing Laboratories, Inc. v. Thermal Science, Inc., 953 S.W.2d 144, 146 (Mo.App. E.D.1997).

We focus our analysis on Count II of Norber’s petition alleging Marcotte’s breach of the partnership agreement. This claim presupposes a partnership exists between Norber and Marcotte, and it is the basis for every other claim in Nor-ber’s petition. Marcotte claims Norber alleges no factual basis that a partnership exists between them, and therefore, if *658 there is no partnership, the rest of Nor-ber’s petition would fail to state a claim upon which relief could be granted.

The law never presumes a partnership exists, but rather, the burden is upon the party asserting its existence to establish all elements of a partnership by clear, cogent, and convincing evidence. Morrison v. Labor and Indus. Relations Com’n, 23 S.W.3d 902, 907-908 (Mo.App. W.D.2000). “Clear, cogent, and convincing” means the court should be “clearly convinced of the affirmative of the proposition to be proved.” Grissum v. Reesman, 505 S.W.2d 81, 86 (Mo.1974); Hillme v. Chastain, 75 S.W.3d 315, 317 (Mo.App. S.D.2002). This does not mean that there may not be contrary evidence. Id.

Section 358.060.1, RSMo 2000 2 defines a partnership as “an association of two or more persons to carry on as co-owners [of] a business for profit.” Fischer v. Brancato,

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Bluebook (online)
134 S.W.3d 651, 2004 Mo. App. LEXIS 323, 2004 WL 419875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norber-v-marcotte-moctapp-2004.