Prange v. Prange

755 S.W.2d 581, 1987 WL 1184
CourtMissouri Court of Appeals
DecidedSeptember 13, 1988
Docket51539, 51522
StatusPublished
Cited by24 cases

This text of 755 S.W.2d 581 (Prange v. Prange) 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
Prange v. Prange, 755 S.W.2d 581, 1987 WL 1184 (Mo. Ct. App. 1988).

Opinion

DOWD, Judge.

All parties appeal following the trial court’s distribution and division of the assets of a dissolved family partnership. We affirm in part and reverse and remand in part.

At issue are the assets of and interests in a family owned farming partnership and certain land farmed by the partnership. Plaintiffs E.L. Prange and his wife Marilyn initiated this action by filing suit in November 1984 seeking the partnership be adjudged dissolved as of February 1, 1984, and that the court enter judgment in plaintiffs’ favor in the amount of their interest in the partnership as of the date of dissolution with interest. Plaintiffs further requested an award for improvements they made to a house owned by plaintiff E.L.’s father. In the final count of their petition plaintiffs prayed for the rental value of a one-third interest in 430 acres of the land farmed by the partnership.

Defendants are plaintiff E.L.’s father, Emerson Prange, E.L.’s brother, Don Prange, and Don’s sons, Gary and Kevin Prange. Defendants counterclaimed alleging that the partnership was dissolved as of March 1, 1984, and requested the court to order the partnership dissolved as of that date. In addition, defendants requested the court to perform an accounting of the assets of the partnership, order a liquidation sale, determine the interests in the partnership and distribute the proceeds accordingly. Defendants also requested damages against plaintiffs for obstruction of the farm operation and destruction of property. Emerson Prange, in the second count of the counterclaim, sought damages against his son E.L. for assault.

The facts leading up to this dispute are as follows. Emerson and Helen Prange, over a period of time, acquired approximately 800 acres of land for farming. Emerson and Helen purchased most of the acreage and inherited the remaining land. At the time of purchase, Emerson and Helen had the names of their three sons E.L., Don, and John placed on the deeds to 430 acres of land. John was approximately six years of age and Don was approximately fourteen when the first parcel of land was acquired by their parents. Emerson and Helen retained the deeds and abstracts in their possession. The deeds were thereafter recorded by Emerson and Helen’s attorney but apparently not at their request. Emerson, Helen, Don, and John all testified the sons’ names were placed on the deeds only to circumvent probate. The parents were to have an interest in the farm for life. The sons never received rent from the land nor did they pay the taxes on the land. The youngest son John testified he had never even seen the deeds.

In 1956, Emerson formed a partnership, “Emerson Prange and Sons,” with his two sons E.L. and Don for the purpose of farming the land. Emerson contributed the capital of $34,188.48 to form the partnership. The partnership was evidenced by a written agreement that did not provide for a termination date. The ownership interests of the partnership were to be a one-half interest to Emerson and one-fourth interests to E.L. and Don. On January 17, 1956, Don and E.L. each executed notes to Emerson in the amount of $8,547.12 to cover their one-fourth interests in the partnerships. Besides certain credits indicated on the reverse sides of the notes, Don and E.L. admitted that they had never paid off these notes.

The partners further agreed at this time that both Don and E.L. would each occupy a house, rent-free, located on Emerson’s land. Both Emerson and Don testified the cost of any improvements were to be the *585 responsibility of the occupier and that all improvements were to belong to Emerson when possession of the premises was returned.

Oral modifications to the partnership agreement were made over time. In 1973, a change was made in the share arrangement of the partnership in that Emerson, E.L., and Don each became one-third owners of the partnership. The increase in Don and E.L.’s interests was possible because of a contribution of a one-sixth interest to the capital account by Emerson in the amount of $21,782.94.

In order to draw social security, Emerson retired from the “Emerson Prange and Sons” partnership as of January 1, 1975. Don and E.L., by an oral agreement, formed a new partnership known as “Prange Brothers.” In 1976, distributions were apparently made from the money accounts of the “Emerson Prange and Sons” partnership. Emerson allowed his interest in the physical assets of the “Emerson Prange and Sons” partnership and his land to be used by the “Prange Brothers” partnership in exchange for rent in the amount of one-third of the farm income of the “Prange Brothers” partnership. The partnership and individual tax returns of the parties during this period reflect such an agreement.

In 1981, a new distribution system was instituted. Emerson was to receive one-fourth of the operating profits as rent, Don’s sons Kevin and Gary would each receive one-eighth of the operating profit, and Don and E.L. would receive one-fourth shares. This new arrangement applied solely to the distribution of operating profits and did not affect the partnership’s capital account. Kevin and Gary testified they at no time acquired an interest in the capital account of the partnership. Don and E.L. continued as the sole partners of the “Prange Brothers” partnership.

In 1983 the Prange family began experiencing family difficulties concerning the farming operations due to disputes between E.L. and Emerson. As a result of these disputes, E.L. intentionally struck his seventy-year-old father on two occasions, once in October 1983 and once in August 1984.

In December 1983, E.L. sent notice to the partnership to cease farming operations on E.L.'s privately owned land by March 1, 1984. On January 30, 1984, E.L. received notice to vacate the house owned by Emerson, which E.L. and his family occupied, by March 1, 1984. On February 21, 1984, without the knowledge of E.L., funds were withdrawn from the partnership account and were distributed between Emerson, Don, E.L., Kevin, and Gary.

The court heard the case in a bifurcated proceeding. With both sides agreeing the partnership was dissolved, in the initial proceeding, the court heard evidence solely to make a determination as to the date of dissolution. The court determined the partnership was dissolved as of March 1, 1984. Neither side appeals from this portion of the trial court’s judgment.

In the second stage of the proceeding the court heard evidence on the remaining issues of the case. Thereafter, the court performed an accounting of the assets of the partnership and made a determination as to the ownership interests.

The court awarded E.L. one-half of the money accounts of the partnership with interest less Emerson’s 1973 contribution to capital with interest. As to the physical assets of the partnership the court awarded E.L. one-third of their value with interest. The total award to E.L. was in the amount of $315,732.25.

The court found against plaintiffs in their count for rent on 430 acres of the land farmed by the partnership holding plaintiffs did not meet their burden of proving they had a present possessory interest in the land. The court also found against plaintiffs in their count for the value of improvements made to the house owned by Emerson which plaintiffs occupied.

As to defendants’ counterclaim, the court found against defendants in their first count for damages against E.L.

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Bluebook (online)
755 S.W.2d 581, 1987 WL 1184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prange-v-prange-moctapp-1988.