ROBERTS HOLDINGS, INC. v. BECCA'S BARKERY, INC., STEVEN KALCH, and REBECCA E. KALCH, Defendants-Respondents.

423 S.W.3d 920, 2014 WL 983003, 2014 Mo. App. LEXIS 287
CourtMissouri Court of Appeals
DecidedMarch 13, 2014
DocketSD32757
StatusPublished
Cited by8 cases

This text of 423 S.W.3d 920 (ROBERTS HOLDINGS, INC. v. BECCA'S BARKERY, INC., STEVEN KALCH, and REBECCA E. KALCH, Defendants-Respondents.) 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
ROBERTS HOLDINGS, INC. v. BECCA'S BARKERY, INC., STEVEN KALCH, and REBECCA E. KALCH, Defendants-Respondents., 423 S.W.3d 920, 2014 WL 983003, 2014 Mo. App. LEXIS 287 (Mo. Ct. App. 2014).

Opinion

DON E. BURRELL, J.

Roberts Holdings, Inc. (“Appellant”) appeals the dismissal of its suit in replevin to acquire possession of certain baking equipment alleged to be currently possessed by Becca’s Barkery, Inc. (“Becca’s Barkery”), Steven Kalch, and Rebecca E. Kalch (“Respondents”) in Texas County. The ease was dismissed under Rule 52.04(b) for an inability to join indispensable parties “without prejudice to the refiling of [Ap *922 pellant’s] claims in the Superior Court of Spokane County, Washington.” 1

The trial court found that the dispute arose from “a failed business enterprise” between two families — “[t]he Kalch family ... and the Roberts family” — and that “a joint venture agreement” (“Joint Venture Agreement”) “obligated [DKS Ventures, LLC (“DKS”) ] to furnish the manufacturing equipment at no cost to the Kalches.” In return, DKS obtained “the partial ownership of Becca’s Barkery[.]” The trial court found that “Kevin Roberts, [Dave] Roberts[, 2 ] and Stuart Roberts are the principals of three companies involved in performing the various parts of the ... business arrangement [involving Respondents]: [DKS], Total Baking Solutions, LLC [(“Total Baking Solutions”)], and [Appellant].” The trial court found that “because the transaction was carried out by several closely related business entities, orderly justice is only possible if all claims and parties are joined for hearing before one judge in one courtroom.”

The trial court further found that the United States District Court for the Western District of Missouri had previously determined that, “based on a forum selection clause contained in the joint venture agreement[,]” “the state of Washington had exclusive jurisdiction over the dispute[.]” As a result, the trial court found that it was “precluded” from hearing all claims and that “the only remaining forum [able] to fully dispense justice is that of the Superior Court of Spokane County, Washington.”

In three points relied on, Appellant contends “[t]he trial court erred in dismissing [Appellant’s] petition under [Rule] 52.04(b) because”: (1) “the parties sought to be joined by Respondents are not necessary under Rule 52.04(a)” as “the only issue in a replevin action is the right of the plaintiff to possess the personal property at issue”; (2) “the trial court failed to articulate the *923 grounds for dismissal under the four[-]part test required under” Rule 52.04(b); and (3) Texas County “is the only appropriate venue for replevin in that no other court can offer the remedy of replevin[.]” Finding no merit in any of these contentions, we affirm the dismissal. .

Facts and Procedural Background

Because the trial court dismissed Appellant’s action based solely upon the pleadings and documents attached to them, we take our factual background from the legal file, including Appellant’s petition (“the re-plevin petition”), documents attached to the replevin petition, Appellant’s “MOTION TO STRIKE [RESPONDENTS’] COUNTER PETITION AND [RESPONDENTS’] MOTION TO JOIN ADDITIONAL PARTIES” (“the motion to strike”), and an order issued by the United States District Court for the Western District of Missouri that was incorporated into the motion to strike.

The Kalches reside in Missouri and own Becca’s Barkery, “a business that produces dog biscuits, dog foods, and related products.” The Roberts are “the principals of [DKS] and [Total Baking Solutions].” 3 In May 2010, Kevin Roberts drafted the “Joint Venture Agreement” in which “DKS agreed to lease equipment from Total Baking Solutions for a period of five years and provide that equipment to Becca’s Bark-ery. After five years, title to the equipment would be transferred to Becca’s Barkery.” In return, the Kalches “agreed to transfer [to] DKS a 49% ownership interest in Becca’s Barkery.” The Joint Venture Agreement contained a forum selection clause which required any litigation concerning the agreement to be maintained in “Superior Court, Spokane County, Washington.”

In September 2010, Appellant agreed to lease “certain baking equipment” (“the bakery equipment”) to DKS under a written lease agreement (“the Lease”). A copy of the Lease was attached to the replevin petition as Exhibit A. The Lease was for a five-year term, “commencing on September 1, 2010[,]” and required DKS to make lease payments of $10,000 per month to Appellant. 4 DKS gave Appellant a “continuing security interest in the bakery equipment.” Appellant alleged that “Muring 2010[,]” it provided the bakery equipment to DKS and DKS then provided it to Respondents. The Lease was signed only by Dave Roberts, who signed it on behalf of Appellant as lessor and on behalf of DKS as lessee. The Lease provided that in the event of default, Appellant “may enter [DKS’s] premises and, without court order or other process of law, repossess and remove equipment either with or without notice to [DKS].” Additionally, the Lease required DKS, “[u]pon demand following a default,” “to fully cooperate and assist [Appellant] in recovering the equipment from any Third-party through the rights afforded by the Security Agreement and applicable law.” The Lease also had a provision that required any disputes involving the Lease or the bakery equipment *924 to be litigated in Spokane County, Washington Superior Court.

A “Security Agreement” (“the Security Agreement”) was attached to the replevin petition as Exhibit B. The Security Agreement was also executed solely by Dave Roberts — on behalf of Appellant as the secured party and on behalf of DKS as the debtor. The Security Agreement provided that the debtor’s rights were those “under the Uniform Commercial Code in force in the State of Washington at the date of th[e] Security Agreement.” The petition also incorporated a December 21, 2010 “UCC1 Initial Filing” form listing Appellant as the secured party and both Dave Roberts and Becca’s Barkery as debtors. The Security Agreement covered “All equipment listed on Exhibit A attached hereto.” No such exhibit to the Security Agreement was included in the legal file. The replevin petition avers that “[d]uring 2010 the [bakery] equipment was provided by [Appellant] to DKS wh[ich] then allowed [Respondents] to use it and it was installed in their business location in Texas County.” DKS never made any lease payments to Appellant.

In May 2011, the Kalches filed suit in Texas County against DKS, the Roberts, and Total Baking Solutions. The defendants removed the case to federal court. The Kalches’ amended complaint sought relief on seven counts, including one for fraudulent inducement and another for fraud. The defendants then successfully moved that the Kalches’ amended complaint be dismissed based upon the forum selection clause contained in the Joint Venture Agreement. The United States district court found “that the agreed-upon forum selection clause should be enforced and that Washington has exclusive jurisdiction over this dispute” and observed that the defendants had “state[d] that there [wa]s already a case pending between the parties in Washington.” 5

In June 2012, Appellant filed the instant action against Respondents in two counts.

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423 S.W.3d 920, 2014 WL 983003, 2014 Mo. App. LEXIS 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberts-holdings-inc-v-beccas-barkery-inc-steven-kalch-and-rebecca-moctapp-2014.