Schauer v. Gundaker Movits Real Estate Co.

813 S.W.2d 112, 1991 Mo. App. LEXIS 1099, 1991 WL 127447
CourtMissouri Court of Appeals
DecidedJuly 16, 1991
DocketNo. 59030
StatusPublished
Cited by10 cases

This text of 813 S.W.2d 112 (Schauer v. Gundaker Movits Real Estate 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
Schauer v. Gundaker Movits Real Estate Co., 813 S.W.2d 112, 1991 Mo. App. LEXIS 1099, 1991 WL 127447 (Mo. Ct. App. 1991).

Opinion

SIMON, Judge.

Plaintiff Bonnie W. Schauer appeals from the dismissal, by the Circuit Court of St. Charles County, of her petition for fraud (Count I), and breach of fiduciary duly (Count II) against defendants Gundaker Movits Real Estate Co., Inc. (Gundaker), and Joyce Mathis. (Collectively referred to as “defendant”.) Plaintiff also claims the trial court abused its discretion by dismissing with prejudice, thereby denying plaintiff the opportunity to amend the petition to cure defects.

On appeal, plaintiff contends that the trial court erred in: (1) dismissing: a) Count I of her petition for failure to state a claim for relief for fraud; b) Count II of her petition for failure to state a claim for relief for breach of fiduciary duty; and (2) abusing its discretion by dismissing with prejudice, thereby denying plaintiff opportunity to amend the petition in order to cure any perceived defects. We affirm in part and reverse and remand in part.

In response to plaintiff’s petition, defendant filed a motion to dismiss or, in the alternative, to make the petition more definite and certain. The trial court called and heard the motion to make more definite, and ordered plaintiff to provide defendant a copy of an exhibit referenced in the petition but not attached to it. This order also stated that defendant’s motion to dismiss was called, heard, and submitted. Later, plaintiff filed a certificate of readiness, and asked that the case be placed on the trial docket. Defendant objected to the certificate of readiness, stating that the case was not at issue. The trial court subsequently sustained defendant’s motion to dismiss “on the grounds therein”, which was failure to state a claim for which relief can be granted. The trial court specifically dismissed plaintiff's petition with prejudice. Plaintiff then moved the trial court to vacate and/or set aside its order of dismissal. An order was entered denying plaintiff’s motion in all respects except the trial court struck from the previous order one sentence which was in reference to a docket sheet indication that leave to file an amended petition had been granted on the day of the original order of dismissal.

In her petition, plaintiff alleged that in November of 1977 she engaged Gundaker, through its agent Mathis, in a listing agreement to sell real property owned by plaintiff. In January of 1978, plaintiff rescinded this listing agreement, and defendant acknowledged this rescission. Approximately two days after this rescission, defendant submitted to plaintiff a residential sales contract containing an offer for the purchase of plaintiff’s property, the terms of which were inconsistent with those sought by plaintiff for the sale of her property. Plaintiff’s petition further alleged that defendant made various false repre[114]*114sentations regarding plaintiffs obligations as to the offer submitted, the listing agreement, and the legal effect of subsequent actions on plaintiffs part. Plaintiff alleged in Count I that these representations were fraudulent and that she reasonably relied on them to her detriment, and in Count II that the making of these representations amounted to a breach of fiduciary duty on the part of defendant.

On appeal, plaintiff combines in her first point the claimed error of the trial court in dismissing both counts of the petition. For the sake of clarity, we address each count of the petition separately. In reviewing plaintiffs points, we shall construe the petition favorably and give the plaintiff the benefit of every reasonable and fair intendment in the facts alleged. The plaintiff has a right to proceed if the facts pleaded, and their reasonable inferences, looked at most favorably from the plaintiffs standpoint, show any ground upon which relief can be granted. Although the plaintiff is required to plead the ultimate facts, it is not necessary to plead the facts or circumstances by which the ultimate facts will be established to avoid a motion to dismiss. Hohenstreet v. Sterling Nat. Land Co., 706 S.W.2d 80, 83 [1-3] (Mo.App.1986).

Plaintiff claims error in the dismissal of her fraud count in that the petition stated a claim for fraud under the existing law of this state. The specific elements of a fraud claim, as agreed by the parties, are set out in Clark v. Olson, 726 S.W.2d 718, 719 [1] (Mo. banc 1987):

(1) a representation;
(2) its falsity;
(3) its materiality;
(4) the speaker’s knowledge of the falsity or his ignorance of the truth;
(5) the speaker’s intent that his representation should be acted upon by the hearer and in the manner reasonably contemplated;
(6) the hearer’s ignorance of the falsity of the representation;
(7) the hearer’s reliance on the truth of the representation;
(8) the hearer’s right to rely thereon;
(9) the hearer’s consequent and proximately caused injury.

Plaintiff must plead every essential element of fraud, and failure to plead any element renders the claim defective and subject to dismissal. Hanrahan v. Nashua Corf., 752 S.W.2d 878, 883 [7, 8] (Mo. App.1988). Also, Rule 55.15 requires all averments of fraud, except malice, intent, knowledge and any other condition of mind of a person, to be stated with particularity. In the absence of compliance with the Rule, no claim is stated. Id.

While defendant attacks plaintiff’s petition in several respects regarding the elements of the fraud count, we conclude the element of consequent and proximately caused damages is dispositive of the issue.

Plaintiff, in paragraph number sixteen of her petition, states that she was “consequently and proximately caused injury ... in reliance on the representations of defendant Gundaker Realty, by and through Defendant Mathis, in the amount of Fifty Thousand Dollars ($50,000.00).” This paragraph apparently pleads the ninth element of fraud but fails to allege any facts showing a causal connection between the alleged fraudulent misrepresentations and the damages of $50,000.00. In sum, it was alleged that defendant represented to plaintiff that she was required to sign the offer, that the amendments to the offer by plaintiff would result in a counteroffer unacceptable to the purchasers, and that defendant misrepresented its present intent to change the offer price from $42,900.00 to plaintiff’s asking price of $43,600.00. The petition contains no allegations other than these which show any other damages.

The most that can be inferred from the facts alleged in the petition, giving it the most favorable inferential interpretation, is that plaintiff was induced to sell her property, after rescinding the listing agreement, for seven hundred dollars less than plaintiff’s original full asking price. Plaintiff concludes, without any supporting factual allegations as to expenses or other liabilities incurred, that she was damaged in the amount of $50,000.00. [115]*115In order for false representations to be actionable, there must exist a causal connection between the misrepresentation and the harm allegedly sustained. Heberer v. Shell Oil Co.,

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Bluebook (online)
813 S.W.2d 112, 1991 Mo. App. LEXIS 1099, 1991 WL 127447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schauer-v-gundaker-movits-real-estate-co-moctapp-1991.