PREMIUM INVESTMENTS, LLC v. LOWTHER JOHNSON, ATTORNEYS AT LAW, LLC, Defendant-Respondent

575 S.W.3d 744
CourtMissouri Court of Appeals
DecidedApril 30, 2019
DocketSD34662
StatusPublished
Cited by4 cases

This text of 575 S.W.3d 744 (PREMIUM INVESTMENTS, LLC v. LOWTHER JOHNSON, ATTORNEYS AT LAW, LLC, Defendant-Respondent) 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
PREMIUM INVESTMENTS, LLC v. LOWTHER JOHNSON, ATTORNEYS AT LAW, LLC, Defendant-Respondent, 575 S.W.3d 744 (Mo. Ct. App. 2019).

Opinion

PREMIUM INVESTMENTS, LLC, ) ) Plaintiff-Appellant, ) ) v. ) No. SD34662 ) Filed: April 30, 2019 LOWTHER JOHNSON, ATTORNEYS ) AT LAW, LLC, ) ) Defendant-Respondent. )

APPEAL FROM THE CIRCUIT COURT OF GREENE COUNTY

Honorable Laura J. Johnson, Special Judge

AFFIRMED

Premium Investments, LLC (Premium) appeals from a judgment in favor of Lowther

Johnson, Attorneys at Law, LLC (Lowther Johnson) in a legal malpractice action. The trial

court granted summary judgment to Lowther Johnson on two grounds: (1) Premium could

not prove causation; and (2) the applicable statute of limitations had expired. Because the

trial court’s ruling on the causation element was correct, we affirm.1

1 We may affirm a summary judgment on any appropriate theory supported by the record, so it is unnecessary to address the limitations issue. See Piatt v. Indiana Lumbermen’s Mut. Ins. Co., 461 S.W.3d 788, 790 (Mo. banc 2015). Standard of Review

A summary judgment shall be granted “[i]f the motion, the response, the reply and

the sur-reply show that there is no genuine issue as to any material fact and that the moving

party is entitled to judgment as a matter of law[.]” Rule 74.04(c)(6); Schnurbusch v. W.

Plains Reg’l Animal Shelter, 507 S.W.3d 675, 679 (Mo. App. 2017).2 “Facts come into a

summary judgment record only via Rule 74.04(c)’s numbered-paragraphs-and-responses

framework.” Jones v. Union Pac. R.R. Co., 508 S.W.3d 159, 161 (Mo. App. 2016) (italics

in original). Thus, when reviewing a summary judgment, we review the undisputed material

facts established by the process set forth in Rule 74.04(c). Alvis v. Morris, 520 S.W.3d 509,

511-12 (Mo. App. 2017). “We view the record in the light most favorable to the non-moving

party, drawing all inferences in that party’s favor.” Progressive Max Ins. Co. v. Hopkins,

531 S.W.3d 649, 651 (Mo. App. 2017); see also Lindsay v. Mazzio’s Corp., 136 S.W.3d

915, 920 (Mo. App. 2004).

As a defending party, Lowther Johnson can establish a right to summary judgment

by showing: (1) facts negating any one of the claimant’s elements facts; (2) the claimant,

after an adequate period of discovery, has been unable, and will not be able, to produce

evidence sufficient to allow the trier of fact to find the existence of any one of the claimant’s

elements; or (3) the undisputed facts support each of the necessary elements of the defending

party’s properly pleaded affirmative defense. ITT Commercial Fin. Corp. v. Mid-Am.

Marine Supply Corp., 854 S.W.2d 371, 381 (Mo. banc 1993). “Each of these three means

establishes a right to judgment as a matter of law.” Lindsay, 136 S.W.3d at 920. Because

2 All references to rules are to Missouri Court Rules (2018). 2 the propriety of summary judgment is purely an issue of law, we review the grant of a

summary judgment de novo. Id. at 919.

Factual and Procedural Background

As noted above, our summary of the facts is drawn from the statements of

uncontroverted material fact established by the Rule 74.04(c) paragraph-and-response

framework. Alvis, 520 S.W.3d at 512; see Huskey v. Queen City Roofing & Contracting

Co., 523 S.W.3d 610, 617-18 (Mo. App. 2017).

Rib Crib BBQ, Inc. (Corporate) is the franchisor of the Rib Crib restaurant concept.

Bold Ribs Company, LLC (Bold Ribs) was organized in 2002 to own Rib Crib franchised

restaurants. Bold Ribs eventually became the majority owner of seven Rib Crib franchised

restaurants, including one in Rogers, Arkansas.

Rogers Bold Ribs, LLC (RBR) was organized in 2004 to own and operate the Rib

Crib franchise in Rogers. In July 2004, RBR, as tenant, leased real property in Rogers (the

Property) from landlord Pizza Ventures, Inc. (Pizza Ventures) to operate a Rib Crib franchise

restaurant. The lease, a mandatory addendum and an amendment were collectively referred

to as the “Master Lease” for the Property. Bold Ribs executed a guaranty of the Master

Lease. The mandatory addendum was executed by Corporate, Pizza Ventures and RBR.

The Master Lease provided for a 15-year term, ending in November 2019.

In February 2006, Premium purchased the Property from Pizza Ventures. Premium

entered into an assignment and assumption of the Master Lease from Pizza Ventures. The

obligation to pay rent was the responsibility of RBR, as guaranteed by Bold Ribs. RBR

began paying rent directly to Premium that month. When the Property was purchased,

Premium knew the Master Lease contained a provision granting the tenant the unconditional

3 right to assign the lease, or to sublease the property, without the landlord’s consent. If the

tenant decided to assign or sublease, the Master Lease also required the landlord to provide,

upon the lessee’s request, an estoppel certificate (Certificate) confirming that: (1) the Master

Lease was in full force and effect; (2) the tenant was current on rent and other charges; and

(3) the tenant was not in default or subject to any claims by the landlord.

During 2006, RBR was struggling financially. By late 2006, Bold Ribs wanted to

sell RBR. Bold Ribs negotiated with another established franchise operator, but no

agreement was reached. Premium was told that RBR was struggling financially, and efforts

were made by Bold Ribs and RBR to involve Premium in a solution to RBR’s financial

issues.

In September 2007, Corporate agreed to purchase RBR and other assets of Bold Ribs

via an asset purchase agreement (APA). In this APA, however, Corporate was unwilling to

accept a full assignment of the RBR lease because of its terms. Premium was not willing to

negotiate a lower rent rate. Negotiations on this issue continued, and RBR continued to pay

rent to Premium through January 2008.

In January 2008, the parties negotiated an amendment to the APA. Pursuant to this

amendment: (1) RBR and Bold Ribs agreed to sublease the Rogers’ location to Corporate;

and (2) Corporate agreed to pay the obligations of the Master Lease, but only for a minimum

of two years.3 The amendment also specified that, “in the event that landlord consent was

not required that [Bold Ribs] should deliver landlord’s [Certificate] in a form reasonably

approved by [Corporate].” Under the terms of the Master Lease, Premium was obligated to

3 The sublease was for the remaining duration of the lease, but it gave Corporate the right to terminate the sublease upon six months’ notice after 18 months had elapsed.

4 provide the Certificate upon RBR’s request. On January 25, 2008, the Certificate was

prepared for the sublease of RBR and emailed to Premium for signature. Upon receipt of

the Certificate, Premium gave it to Lowther Johnson to review. Premium failed to timely

sign and deliver the Certificate as requested.

The APA closing occurred on February 1, 2008. As of that date, no signed Certificate

for the Property had been provided by Premium. In lieu thereof, Bold Ribs agreed to

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Bluebook (online)
575 S.W.3d 744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/premium-investments-llc-v-lowther-johnson-attorneys-at-law-llc-moctapp-2019.