Oster v. Kribs Ford, Inc.

660 S.W.2d 348, 1983 Mo. App. LEXIS 3626
CourtMissouri Court of Appeals
DecidedSeptember 27, 1983
Docket44788
StatusPublished
Cited by13 cases

This text of 660 S.W.2d 348 (Oster v. Kribs Ford, Inc.) 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
Oster v. Kribs Ford, Inc., 660 S.W.2d 348, 1983 Mo. App. LEXIS 3626 (Mo. Ct. App. 1983).

Opinions

SIMON, Presiding Judge.

Plaintiff brought suit against his former employer, Kribs Ford, Inc., for conversion of business records which he had compiled during his employment with Kribs. The trial court originally dismissed the plain[350]*350tiff’s suit for failure to state a claim on which relief could be granted, finding that the records in question belong to the employer under the “shop rights” rule. See Dewey v. American Stair Glide Corp., 557 S.W.2d 643 (Mo.App.1977). The Supreme Court reversed the dismissal holding that the plaintiff’s petition alleged facts which, if proven at trial, would show that a custom existed with respect to the employment contract making the records in question the property of the plaintiff and thereby bringing the claim within an exception to the general “shop rights” rule. Oster v. Kribs Ford, Inc., 611 S.W.2d 535 (Mo.1981). The case was remanded for trial and the plaintiff secured a favorable jury verdict of $30,-000 in actual damages and $61,000 in punitive damages. Defendant appeals this judgment. We affirm.

On appeal, defendant contends that: (1) the trial court erred in submitting MAI 3.01 (1981 Revision) to the jury without deleting the bracketed language “[or defense]” since no affirmative defense was raised; (2) the plaintiff failed to establish that the defendant was guilty of legal malice, as is necessary for an award of punitive damages; (3) plaintiff failed to provide a link between the defendant’s retention of the records and any loss suffered by plaintiff and consequently there was no basis for granting actual damages; and (4) plaintiff failed to establish the existence of any agreement concerning the records, which is required before custom and practice can have any effect upon their ownership.

Plaintiff was employed by defendant, a Ford dealership, from 1960 to 1976, except for approximately one week in 1971 when he worked for another car dealer. Plaintiff began work with defendant as a new car salesman and continued in that capacity until 1974 when he was promoted to assistant sales manager, a position he held until he left in 1976. As an assistant sales manager the plaintiff still occasionally sold automobiles, though his chief responsibility was the supervision of other salesmen.

During the period of plaintiff’s employment, defendant utilized an invoice packet to record its sales transactions. This packet consisted of an original and three carbon copies of a form used to record the name and address of the customer, the name of the salesman, date of sale, make and model of the car, the accessories on the car and the terms of sale. When a sale was completed, copies of this form were distributed to the front office, the billing clerk, the salesman and the customer.

Salesmen at Kribs were paid once a month exclusively by commission and their copy of the sales invoice provided a means of checking the amount of their paycheck against their own sales records. The salesmen were also encouraged and sometimes required to use these sales slips to contact customers after a sale to insure that the customer was satisfied and to promote future sales. This follow-up procedure is viewed as beneficial to both the dealership and the salesman in that it is a potential source of additional sales for the dealership and additional commissions for the salesman. The character and intensity of these follow-ups varied among salesmen. Some salesmen wrote their own notes on their invoice copies for additional aid in followups. The invoice slips also help salesmen maintain personal contact with their customers. Building a good rapport with one’s customers and establishing a personal clientele are generally regarded as valuable practices for salesmen in the car sales business, and such practices are generally expected of the salesmen. It is also a generally accepted practice in the business for salesmen to maintain contact with their past customers after changing dealerships. Prior to the incident with the plaintiff, the invoice copies distributed to salesmen at Kribs were made available to the salesmen for all of the foregoing purposes.

In March, 1976, the plaintiff informed the sales manager at Kribs, Mr. Seeck, that he intended to leave Kribs to accept the position of sales manager at another dealership. The plaintiff testified that his reason for deciding to leave Kribs was he perceived that there was little chance of an opening in the sales manager position at Kribs in [351]*351the near future and, therefore, to achieve the promotion he desired he felt it was necessary to go to another dealership. Mr. Seeck, at first alone and later in concert with Jack Kribs, the president of Kribs Ford, unsuccessfully attempted to dissuade the plaintiff from leaving Kribs. The plaintiff had in three separate years received a prestigious award from Ford Motor Company for being the top new car salesman in the country for Ford cars and the management at Kribs was admittedly very interested in having the plaintiff remain at Kribs. The plaintiff testified that the attempts to persuade him to stay became heated and when he continued to stand by his decision to leave Bernie Seeck informed him that “you are not leaving with your records.” The plaintiff further testified that he attempted to persuade Mr. Seeck and Jack Kribs, president of Kribs Ford, to allow him to leave with the records, but the two men remained adamant in their refusal and did not give a justification or excuse for their decision. Mr. Seeck and Jack Kribs accompanied the plaintiff to his office and took possession of the sales records as the plaintiff gathered the rest of his possessions and left. Later that summer the plaintiff made some inquiries at Kribs as to the possibility of recovering his sales records, and the plaintiff testified that Jack Kribs told him, “The only way you can get your records is to sue me.” In October, 1976, the plaintiff sent a written request to the defendant asking for the return of his sales slips. In November, 1976, the defendant’s attorney sent a response stating that he had advised the defendant that it was under no obligation to surrender the records. At the time of trial the defendant could not account for the whereabouts of the records.

There was no express agreement, written or oral, between the parties concerning the ownership of the records, nor had the defendant ever made such an agreement with any of its salesmen prior to the incident with the plaintiff. The plaintiff introduced evidence tending to show that a custom and practice existed at Kribs, and most of the car dealerships in the area, allowing salesmen to retain and make use of their sales slips in any manner they desired, including taking the sales slips along with them when they transferred to another dealership. The plaintiff’s evidence also showed that salesmen in general rely on this custom and practice insofar as they forego making their own records of their sales understanding that the invoice copies issued to them can be used as they see fit.

The defendant countered with evidence that some St. Louis dealerships do not distribute sales invoice copies to their salesmen as is done at Kribs Ford. In each of the examples presented by the defendant, however, the salesmen were either encouraged to keep their own records of their sales transactions or they were furnished records other than sales invoices which listed the customers to whom they sold cars, and in any event in no case mentioned was there ever any attempt made to prevent a salesman from taking a list of his customers with him when transferring to another dealership.

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Oster v. Kribs Ford, Inc.
660 S.W.2d 348 (Missouri Court of Appeals, 1983)

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Bluebook (online)
660 S.W.2d 348, 1983 Mo. App. LEXIS 3626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oster-v-kribs-ford-inc-moctapp-1983.