Sackett v. Hall

478 S.W.2d 381, 1972 Mo. LEXIS 923
CourtSupreme Court of Missouri
DecidedFebruary 22, 1972
DocketNo. 56400
StatusPublished
Cited by2 cases

This text of 478 S.W.2d 381 (Sackett v. Hall) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sackett v. Hall, 478 S.W.2d 381, 1972 Mo. LEXIS 923 (Mo. 1972).

Opinions

LAURANCE M. HYDE, Special Commissioner.

Action for damages in two counts. Count I was for $4,509.90 for value of personal property alleged to have been taken and $10,000 punitive damages. Count II was for $28,000 actual and $50,000 punitive damages claiming conspiracy to deprive plaintiff of his business. The Court directed a verdict for defendant on the second count. The jury found for plaintiff against both defendants for $4,712 on the first count for the value of plaintiff’s personal property and for defendant Roco on its counterclaim for $1,741.09 ($1,283.09 plus interest of $458). All parties have appealed.

Plaintiff admits his debt to Roco and agrees that the verdict on Count I for the verdict for the value of his personal property taken was $202.10 more than he claimed and is willing to remit that amount. With that remittitur we affirm.

In August 1962 plaintiff purchased the filling station operation from Hall, who had leased from Roco, for $9,600, paying $7,100 cash and giving a note for $2,500 secured by a chattel mortgage on equipment purchased from Hall. The note had no due date and stated it was payable “Per amortization.” The chattel mortgage described the note it secured, as follows: “Amortization note in the amount of $2,500.00 payable at the rate of one-half (.005) cent per gallon on gasoline deliveries.” The payments to Hall were made to him monthly by Roco, which added one half cent per gallon to the amount to be paid to them each month by plaintiff. These payments to Hall were usually in the first week of each month, the last shown being March 7, 1963. Apparently another payment would have been due in April 1963 and it appears that a payment was made by Roco to Hall during that month. However, on March 14, 1963, Roco gave written notice to plaintiff that his lease from Roco was cancelled as of March 25, 1963. Roco’s lease to plaintiff made in August 1962, when plaintiff bought from Hall, provided “either party hereto may cancel this lease by giving the other ten days written notice of intention to do so.” Plaintiff’s monthly gasoline sales never were much more than half of the amount the parties expected and declined more during the winter.

On March 26, 1963 (the day after Roco’s notice fixed for termination) Roco sent employees to take possession of the station. However, on that date Internal Revenue officers came and sealed the station because plaintiff had not paid the levy previously made for amounts due for his employees’ taxes withheld by him. Plaintiff later paid these taxes and on April 2, 1963, Internal Revenue officers removed their seals. Seven Roco employees were there, as was plaintiff with a lawyer, and also Hall’s lawyer. Two policemen were there at the request of Roco. Plaintiff demanded the keys be given to him but Roco’s employees took possession of the station, changed locks, and locked in the station the personal property covered by Hall’s chattel mortgage. Other personal property of plaintiff, not included in the chattel mortgage, was placed outside the station. Plaintiff took it away and it is not involved in this action. Hall took possession of the mortgaged per[383]*383sonal property, advertised a foreclosure sale for April 18, 1963 and bought this property at the sale.

Plaintiff and Roco had since February 1963 been considering termination of their business relations, partly because of lower gasoline sales than expected and also plaintiff’s lack of capital. Plaintiff claimed the winter decrease in sales was partly due to a defective condition of gasoline pumps, one of which was not operative part of the time in January 1963. Plaintiff said he told Roco’s representative in February 1963 that he desired to leave the station. It appears there was a custom of the industry for the lessor to assist the lessee in procuring a purchaser for his business when he wanted to sell out. Plaintiff claims Roco wrongfully terminated the lease in violation of this custom. Plaintiff said he found a prospective purchaser and that Roco also claimed to have a purchaser, but before any negotiations for sale were started Roco sent plaintiff a notice of termination of the lease. After possession was taken from plaintiff on April 2, 1963, Hall commenced operation of the station and a new lease was later made with a corporation created by Hall.

Defendants’ first claim is that plaintiff’s petition shows it is a replevin suit for the property mortgaged to Hall which must fail because it conclusively appears that defendants did not have possession of that property at the time this suit was filed. While the petition is inartfully drawn, our view is that it states facts sufficient for an action for conversion of the mortgaged property in the station, which was plaintiff’s proper remedy. 15 Am.Jur.2d Chattel Mortgages § 181, p. 349; 14 C.J.S. Chattel Mortgages § 215, p. 817. Construing it as an action for conversion also disposes of defendants’ claim of error in giving Instruction No. 5 on the ground that it did not require a finding that the property described in the chattel mortgage must have been in the possession of defendants at the time the suit was filed.

Count I was for taking plaintiff’s personal property from the station and was submitted against both defendants on Instruction No. 5 requiring findings that plaintiff was the owner of the equipment purchased from Hall and that defendants “did wrongfully take possession and wrongfully detain this property from plaintiff.” Defendants make no claim of error in their brief about this instruction other than that hereinabove mentioned on the theory that plaintiff’s action was replevin. Defendants’ real claim is that the evidence shows that possession of the chattels was taken by defendant Hall, after plaintiff was legally dispossessed from the service station, under rights claimed by him under the chattel mortgage. It is true as defendants say the lease to plaintiff provided for its termination on ten days’ notice. However, our view is that the jury could reasonably find that defendants acted improperly in forcibly taking possession of the station and the mortgaged property over plaintiff’s protest. Defendants had police officers there to prevent plaintiff from doing more than protest. The lease did provide when the lessor declares the lease ended the lessor may “reenter the premises * * * with or without process of law and expel, remove or evict Lessee * * * using such force as necessary.” The Supreme Court of Ohio has held a similar provision in a chattel mortgage void as contrary to public policy. Hileman v. Harter Bank & Trust Co., 174 Ohio St. 95, 186 N.E.2d 853. The Supreme Court of California in Jordan v. Talbot, 55 Cal.2d 597, 12 Cal.Rptr. 488, 492, 361 P. 2d 20, 24, 6 A.L.R.3d 161, 167, said: “[A] provision in the lease expressly permitting a forcible entry would be void as contrary to the public policy,” as set out in forcible entry and unlawful detainer statutes. See also Spencer v. Commercial Co., 30 Wash. 374, 71 P. 53; see also annotation 6 A.L.R. 3d 177, 186, where it is said: “An increasing number of jurisdictions uphold what seems to be the modern doctrine that a landlord otherwise entitled to possession must, on the refusal of the tenant to surrender the leased premises, resort to the [384]*384remedy given by law to secure it; otherwise he would be liable in damages for using force or deception to regain possession.” An early Missouri case, Krevet v. Meyer, 24 Mo.

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Bluebook (online)
478 S.W.2d 381, 1972 Mo. LEXIS 923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sackett-v-hall-mo-1972.