Quality Wig Co., Inc. v. JC Nichols Co.

728 S.W.2d 611, 1987 Mo. App. LEXIS 3788
CourtMissouri Court of Appeals
DecidedMarch 17, 1987
DocketWD 38004
StatusPublished
Cited by9 cases

This text of 728 S.W.2d 611 (Quality Wig Co., Inc. v. JC Nichols Co.) 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
Quality Wig Co., Inc. v. JC Nichols Co., 728 S.W.2d 611, 1987 Mo. App. LEXIS 3788 (Mo. Ct. App. 1987).

Opinion

CLARK, Chief Judge.

This dispute arises out of a mercantile lease of a retail storeroom and claims generated when the landlord undertook building alterations affecting the tenant’s use of the leased premises. After a jury trial, the tenant recovered damages for breach of contract and misrepresentation. The landlord’s counterclaim for rent was decided in favor of the tenant, but the landlord was given judgment for restitution of the premises. Both parties have appealed.

The history of the case begins with a lease dated September 30, 1975, under which Quality Wig rented a storeroom from the J.C. Nichols Co. in a shopping mall known as The Landing. For some four years thereafter, Quality Wig conducted its business of retail sales of women’s hair fashion products, apparently without controversy and with modest success. In January, 1980, however, the J.C. Nichols Co. informed Quality Wig of plans to convert the mall area fronting the wig shop into rental space for another tenant and sought approval of the alteration. The consequence of the remodeling would have been to exclude the wig shop from mall access and to require wig shop customers to enter the store through an exterior door fronting on the parking lot. Quality Wig refused to agree because of the adverse effect on business.

During subsequent weeks, the parties continued in negotiations which would permit the remodeling but would recognize the rights of Quality Wig for the balance of its lease term then extending to October 31, 1980. It appears to have been conceded at the time that the proposed conversion of mall space into a rental area could not have been validly undertaken without breaching the Quality Wig lease, at least prior to *614 November 1, 1980. With this in view, the Nichols Co. advanced several proposals which culminated in an agreement made February 25, 1980. 1 Summarized, the agreement provided that Quality Wig consented to the appropriation by the Nichols Co. of the mall area and the tenant’s right of access therefrom and in return, Quality Wig could occupy its current space rent free until December 31, 1980. At that time, if Quality Wig ceased business and vacated, it was entitled to receive a lump sum payment from the Nichols Co. of $5,000.00. Alternatively, if Quality Wig elected to remain in business, the Nichols Co. would make comparable sized space available in the center and would assist with the architectural layout and pay moving expenses. At the time this agreement was made, it is suggested by the evidence that Quality Wig management had various possibilities in view including a sale of the business.

After February, 1980, Quality Wig continued to do business at the original location, the mall conversion proceeded on schedule and wig customers used the parking lot entrance. As the year 1980 came to a close, a decision had apparently been made by Quality Wig to remain in business at the center. The parties negotiated a new lease dated February 11, 1981 for space identified as Room 1146 in another area of the center with mall access. On the basis of this prospective move, the Nichols Co. did not require possession of the original premises from Quality Wig on December 31, 1980 as the February, 1980 agreement had provided. Instead, Quality Wig continued in business at its original location paying no rent.

A significant feature of the February, 1981 lease was the affirmative representation by the Nichols Co. that Room 1146 contained total gross leasable floor space of 538 square feet. As it later developed, however, this was incorrect. The Nichols Co. had used an outdated set of plans to compute the area. When Quality Wig, assisted by the architect, prepared plans for relocating the wig store fixtures, it was discovered that the space was substantially less than 538 square feet and was unacceptable for the wig shop. It is this discrepancy in the floor area which is at the heart of the Quality Wig claims for breach of contract and for negligent misrepresentation.

When the deficiency in space was revealed, the parties apparently reached an impasse. The Nichols Co. made no other space available and Quality Wig refused to move from its original shop or to pay any rent. On October 30, 1981, the Nichols Co. gave Quality Wig formal notice to vacate and this action by Quality Wig and the Nichols Co. counterclaim followed. 2 The jury returned verdicts for Quality Wig of $32,000.00 on the count for breach of contract and $10,800.00 on the count for negligent misrepresentation. The jury also refused to award the Nichols Co. a judgment for any unpaid rent.

THE QUALITY WIG APPEAL

I.

In its first point of error, Quality Wig contends its proof of damages was erroneously restricted because the trial court refused to admit evidence showing a prospective loss of business profits plaintiff would otherwise have enjoyed under the lease of the new store location for the term extending to 1991. The trial court did admit *615 estimates of lost profits for the lease term to the date of trial, but not thereafter. As the subsequent discussion in this opinion will demonstrate, this decision by the trial court to admit part and reject part of the testimony of the expert witness raises two issues, one in the Quality Wig appeal and the other in the Nichols Co. cross-appeal. The first poses the question of what is the proper measure of damages in an action for breach of an agreement to lease. The second, considered in the Nichols Co. cross-appeal which challenges the ruling admitting some evidence of lost, anticipated profits, involves the limits on appellate review of a decision by the trial court to admit testimony by an expert witness.

The claim by Quality Wig was that the jury should have been entitled to award damages based on evidence showing what the business profits would have been had storeroom 1146 been as represented and had Quality Wig occupied those premises from February, 1981, for the lease term of ten years. To prove what those profits would have been, Quality Wig offered testimony by an expert witness, Roger Way-man, who prepared a trend-line forecast of profits to be generated at the new location through the lease term to February 10, 1991. The resulting loss was calculated by the witness to be $167,817.00. The trial court refused to admit evidence of prospective lost profits subsequent to the date of trial on the ground that the estimates were too speculative and uncertain of measurement.

It has long been the rule in Missouri, and in most other states, that the measure of damages for breach of a contract to lease is the difference between the rental value of the premises and the rent reserved in the lease. Chouteau v. Missouri-Lincoln Trust Co., 310 Mo. 665, 276 S.W. 49, 54 (1925); Annot., 88 ALR2d 1024 (1963). Prospective future profits from a business to be established in the premises do not constitute an item of damages recoverable for breach of the agreement to lease because such damages are speculative, conjectural and subject to the uncertainties of changing future conditions. Coonis v. Rogers, 429 S.W.2d 709, 714 (Mo.1968) citing Anderson v. Abernathy, 339 S.W.2d 817, 824 (Mo.1960).

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Cite This Page — Counsel Stack

Bluebook (online)
728 S.W.2d 611, 1987 Mo. App. LEXIS 3788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quality-wig-co-inc-v-jc-nichols-co-moctapp-1987.