Northern Farms,, Inc. v. W.K. Jenkins and M. Earlene Jenkins d/b/a Green Acres Farms

472 S.W.3d 617, 2015 Mo. App. LEXIS 1048
CourtMissouri Court of Appeals
DecidedOctober 13, 2015
DocketWD77053
StatusPublished
Cited by4 cases

This text of 472 S.W.3d 617 (Northern Farms,, Inc. v. W.K. Jenkins and M. Earlene Jenkins d/b/a Green Acres Farms) 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
Northern Farms,, Inc. v. W.K. Jenkins and M. Earlene Jenkins d/b/a Green Acres Farms, 472 S.W.3d 617, 2015 Mo. App. LEXIS 1048 (Mo. Ct. App. 2015).

Opinion

Karen King Mitchell, Presiding Judge

W.K. and M. Earlene Jenkins (referred to respectively as “Father” and “Mother” and collectively as “the Jenkinses”) appeal the trial court’s judgment in favor of Northern Farms on its claims of fraud and unjust enrichment against Father and Mother stemming from the period of time when Father was the president of Northern Farms. Finding no reversible error, we affirm.

Facts

Northern Farms is a corporation founded in 1982 by Father, Mother, and some of their sons. Father served as Northern Farms’ president from 1984 until 2002, when, following a number of disputes, the family shareholders removed Father as an officer. 1

This litigation was initiated ;in December of 2005, when Gary and Judy Guilford, who owed substantial sums on three promissory notes, filed an interpleader action in which they sought to determine who owned the notes. The interpleader action erupted into years of litigation over decades of alleged wrongdoing, fraud, and mismanagement of -the Jenkins family’s farming business. It is but one case in a series of litigation involving the family members. See Wilson v. Jenkins, 237 P.3d 1272 (Kan. Ct. App. 2010); Jenkins v. Jenkins, 448 S.W.3d 834 (Mo. App. W.D. 2014). A full recitation of the unfortunate history is not required, but a brief overview follows. 2

In the 1990s, the Guilfords purchased 460 acres of Kansas farmland from Northern. Farms, signing promissory notes to Northern Farms. The promissory notes were later allegedly assigned to the Jen-kinses. In response to the Guilfords’' in-terpleader action,- both Northern Farms and the Jenkinses claimed ownership of the Guilford notes. The Jenkinses also filed . a . cross-claim against Northern Farms, asserting ownership of a separate $500,000 note from Northern Farms that they claim was signed over to them. In turn, Northern Farms counterclaimed, alleging various breaches of fiduciary duty, fraud, and self-dealing by Father when he was president of the company, and further *620 alleging Mother’s enjoyment of the ill-gotten gains. Northern Farms’ counterclaim sought both legal and equitable remedies.

Following years of litigation, all of the Jenkinses’ claims were dismissed. At the time of trial, the ownership of the Guilford notes, as well as Northern Farms’ various claims of fraud and breach of fiduciary duty against Father, and unjust enrichment . against Mother, remained. The court held a bifurcated trial, in which the parties’ legal claims were tried to a jury, and Northern Farms’ equitable claims were to be addressed later by the court.

At trial, the court entered a directed verdict in favor, of Northern Farms on the Guilford notes. Following trial, the jury returned verdicts for Northern Farms on all counts, , in an amount totaling $1,356,253.58. Following the jury trial, Northern Farms dismissed all of its equitable claims, avoiding the need for a bench trial of the equitable issues, after which the trial court entered judgment in the amount of the verdicts, plus interest, for a total of $2,412,601.36.

The Jenkinses timely appealed.

Analysis

In their four points, the Jenkinses challenge various actions of the trial court, which they argue constitute reversible error: (1) entering judgment against Mother on a count alleging unjust enrichment, which they claim Northern Farms had voluntarily dismissed following trial; (2) allowing Northern Farms to amend its pleadings at trial- to state a new cause of action for-unjust enrichment; and (3) refusing to dismiss claims of Northern Farms’ claims that were allegedly barred by the statute of limitations. For clarity, we will address the points out of order, and combine some into a single discussion.

I. Northern Farms was not allowed to amend its pleadings at trial to state a new cause of action.

The Jenkinses argue that the, trial court erred in allowing “for the first time at trial,” Northern Farms to amend its Count VIII — initially denominated a count for “accounting” — to a count for “unjust enrichment for money had and received.” 3 The Jenkinses claim that “[n]ot until Northern Farms’ opening statement did the terms ‘unjust enrichment’ and ‘money had and received’ first come up,” leaving the Jenkinses “surprised and puzzled,” and without “opportunity to respond to such allegations.” The Jenkinses argue that allowing this sort of amendment at the time of trial is prejudicial and barred by Nichols v. Mama Stuffeati’s, 965 S.W.2d 171, 176 (Mo. App. W.D. 1997), overruled on *621 other grounds by Hampton v. Big Boy Steel Erection, 121 S.W.3d 220, 223 (Mo. banc 2003), because it is a misapplication of “the rule allowing pleadings to be amended at trial to conform to the evidence.” Because the Jenkinses misrepresent the record, and have not challenged the relevant ruling, their argument fails.

Approximately one month before trial, the trial court held a pre-trial conference, where the court took up various issues. The conference was off the record, but the court issued an order, purportedly memorializing the results of the pre-trial conference. Therein, the trial court ordered that “Northern Farms, Inc. will separate its legal and equitable claims by renaming certain of its counts,” and that all . legal claims “will be tried first to the jury” with the equitable claims being tried later to the court.

At a subsequent hearing one week later, counsel for Northern Farms argued that Count VIII, denominated as a claim for “accounting,” included both legal and equitable claims. Northern Farms specifically stated its belief that “the legal side” of Count VIII was “money had and received for unjust enrichment,” and that the parties had previously agreed that the count would be “renamefd] for the jury,” to which the trial court responded “[tjhat’s right.” 4 Northern Farms also indicated its belief that “accounting issues” would remam to be determined by the court when addressing equitable claims. The trial court responded, “[tjhat’s my understanding,” and indicated that it would not be' necessary for Northern Farms to present the¡accounting.case'“in.its entirety”- to the jury, but that whatever evidence was presented to the jury that applied-to “the accounting” would be “take[n] into account [by the court] in the court-tried portion of the matter regarding the accounting.” The Jenkinses did not object at the pretrial conference to-this proposed bifurcation -of Count VIII or disagree that the parties had, in fact, agreed to such bifurcation.

The court held a final hearing on the Friday before the trial, scheduled for the following Monday, to take up last-minute matters and allow the parties to submit jury instructions. At that hearing, counsel for Northern Farms reiterated that “the last claim for relief— is unjust enrichment for money had and received,” which was “[t]he only claim against” Mother.

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472 S.W.3d 617, 2015 Mo. App. LEXIS 1048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-farms-inc-v-wk-jenkins-and-m-earlene-jenkins-dba-green-moctapp-2015.