Rice v. James

844 S.W.2d 64, 1992 Mo. App. LEXIS 1630, 1992 WL 302750
CourtMissouri Court of Appeals
DecidedOctober 27, 1992
Docket60499, 60720
StatusPublished
Cited by34 cases

This text of 844 S.W.2d 64 (Rice v. James) 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
Rice v. James, 844 S.W.2d 64, 1992 Mo. App. LEXIS 1630, 1992 WL 302750 (Mo. Ct. App. 1992).

Opinions

CRANDALL, Presiding Judge.

Plaintiff, Chester Rice, appeals from a judgment entered on a counterclaim in a court-tried case, awarding $9,000.00 plus interest to defendant, Leon James, for breach of an oral contract. We reverse.

Defendant is licensed by the City of St. Louis (City) as an electrical contractor. In order to obtain that license from the City, it was necessary for him to pass a test and be approved by an examining board. At the time of the events giving rise to this action, plaintiff was not licensed by the City as an electrical contractor, yet he was doing electrical contracting work at a job known as the Drew Towers project in the City.

On November 30, 1982, plaintiff approached defendant, stating the City was going to stop him from working on the project because he did not have a permit to do the work. Plaintiff could not get a permit because the City required a permit-tee to be a licensed electrical contractor. Plaintiff thereby asked defendant to obtain the permit in exchange for payment of $10,000.00. Defendant, however, was not the electrical contractor hired to do the [66]*66work on the Drew Towers project, nor did his agreement with plaintiff require him to do any work. The agreement, which defendant characterized as a joint venture, provided that defendant, as a licensed contractor, was to obtain the permit for plaintiff, an unlicensed contractor, thereby enabling plaintiff to avoid being shut down. Defendant obtained the permit; plaintiff paid $1,000.00 under the agreement, but refused to pay the balance.

In an action brought by plaintiff, defendant filed a counterclaim seeking the balance claimed under the oral agreement with plaintiff. Following dismissal of all other claims, the counterclaim was court-tried. The trial court entered findings of fact and conclusions of law and rendered judgment in favor of defendant in the amount of $9,000.00 plus interest.

Plaintiff’s defense at trial was “illegality of the contract.” Plaintiffs contention was based upon City of St. Louis Ordinance (City Ordinance) Nos. 58536, adopted March 18, 1982, and 58032, (repealed), § 1504.1, which provided that no permit for electrical work shall be assigned or used to aid or abet any unlicensed person in the performance of electrical work.

The trial court found, inter alia, that plaintiff had failed to properly raise the issue of illegality and that, as matter of evidence, the ordinances were not before the court. Consequently, the trial court concluded that there was a valid and enforceable contract.

Conceptually, using the term “illegal contract” in reference to a bargain or agreement which either in its formation or performance is criminal, tortious or otherwise opposed to public policy is a non sequitur. With few exceptions, such an agreement does not result in a contract and therefore creates no change in legal relations. See Restatement (Second) of Contracts § 178 (1981) (referring to such agreements as “unenforceable”). The determining issue on appeal, therefore, is whether the agreement in this case became a contract which, upon breach, entitled defendant to recover for damages.

We first consider whether the issue of illegality was properly presented to the trial court. Plaintiff raised the issue of illegality in a motion to dismiss filed prior to trial. The record on appeal fails to indicate that plaintiff called up the motion for argument and the motion was never specifically ruled on by the court. By failing to proceed with the motion, plaintiff abandoned it. Vermillion v. Burlington Northern Railroad Company, 813 S.W.2d 947, 949 (Mo.App.1991).

Plaintiff did not raise illegality in his answer to defendant’s counterclaim. Rule 55.08 requires a party’s responsive pleading to set forth affirmatively illegality and any other matter constituting an avoidance or affirmative defense. The purpose of the rule is to give the opposing party notice of the issue so that, the party may then prepare to meet it. Schimmel Fur Company v. American Indemnity Company, 440 S.W.2d 932, 939 (Mo.1969).

An affirmative defense contemplates additional facts not included in the allegations necessary to support plaintiff’s case and avers that plaintiff’s theory of liability, even though sustained by the evidence, does not lead to recovery because the affirmative defense allows the defendant to avoid legal responsibility (citations omitted).

Parker v. Pine, 617 S.W.2d 536, 542 (Mo.App.1981). Notwithstanding the above, illegality, rather than avoiding a valid contract, may render the agreement void and unenforceable from its inception.

Any evidence which tends to show plaintiff's cause never had legal existence is admissible on a general denial even though the facts are affirmative, if and insofar as they are adduced only to negative the plaintiff’s cause of action and are not by way of confession and avoidance (citation omitted). Id.

In Detling v. Edelbrock, 671 S.W.2d 265 (Mo. banc 1984), the landlord filed a motion to dismiss tenants’ petition that sought, inter alia, specific performance of covenants of a rental agreement. Landlord contended that pursuant to provisions of the Property Maintenance Code and the [67]*67Fire Prevention Code, the lease was illegal from its inception. Landlord did not, however, affirmatively plead the illegality. And unlike the present case, landlord’s motion to dismiss failed to raise the defense. Thus, as a matter of pleading, tenants were totally without notice of the defense raised. The Missouri Supreme Court found the defense of illegality waived, invoking the general rule requiring affirmative pleading in the answer. Id. at 271. Implicit in the court’s ruling was that the lease, without more, was valid on its face.

This distinction is apparent in Lucas v. Enkvetchakul, 812 S.W.2d 256, 263 (Mo.App.1991), where plaintiff sued on a promissory note. Defendant sought to avoid the obligation, but failed to affirmatively plead illegality of consideration of the underlying agreement. This court upheld the ruling below that defendant waived the defense, stating: “[t]he promissory note does not show on its face that it was made in contravention of the Missouri Uniform Security Act and so an affirmative plea was necessary” (citation omitted). Id. at 263.

Detling and hacas, accordingly, fall within the general rule that avoidance of a valid contract must be pleaded pursuant to Rule 55.08. Here, the situation is distinguishable from those found in Detling and Lucas. In this case, defendant, as moving party in an action for breach of contract, had the burden to plead and prove by his evidence a valid contract. Defendant thus was required to establish legal consideration,. which is an essential element of any contract. Douros Realty & Const. Co. v. Kelley Properties, Inc., 799 S.W.2d 179, 182 (Mo.App.1990).

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Bluebook (online)
844 S.W.2d 64, 1992 Mo. App. LEXIS 1630, 1992 WL 302750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-james-moctapp-1992.