Schoonover v. Kahn

377 S.W.2d 535, 1964 Mo. App. LEXIS 734
CourtMissouri Court of Appeals
DecidedFebruary 3, 1964
DocketNo. 23896
StatusPublished
Cited by4 cases

This text of 377 S.W.2d 535 (Schoonover v. Kahn) 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
Schoonover v. Kahn, 377 S.W.2d 535, 1964 Mo. App. LEXIS 734 (Mo. Ct. App. 1964).

Opinion

MAUGHMER, Commissioner.

Suit for damages growing out of an alleged breach of a real estate lease. Cor-dell Schoonover, plaintiff-respondent, during the years 1955-59, was engaged in “The meat processing business and appliance business”. He operated under the trade name “Nu-Way Sales”. On December 12, 1955, he and the defendants Lester Kahn and Ben Lightor, entered into a written Store Lease under which he leased for two years defendants’ property located at 3543 Prospect, at a rental of $140 per month.

On November 1, 1956, these parties executed a new lease for the same property. This lease was for three years, commencing November 1, 1956 and ending October 31, 1959. It carried the same rental figure of $140 per month, together with an option [537]*537under which the lessee “shall have the option to purchase the premises leased herein for the sum of $15,000 at any time during the term of this lease by giving written notice of same to lessor 30 days in advance of the exercise of this option”.

Plaintiff said that after the first lease had been in effect for nearly one year he decided to begin processing meat and food in the building; that this required a remodeling of the structure which would be expensive and if he made these changes he wanted “protection on the building”. Therefore he sought and secured the second lease with the option to purchase. It was Mr. Schoonover’s testimony that he purchased the overhead heater and the air conditioners from lessors; that the old building on the rear of the premises needed extensive repairs to make it usable and he employed his “father, Bill Burris, Gene Powell and other laborers” to improve this building. He said the repairs and remodeling included the roof, walls and foundations, that the floors were insulated and electrical fixtures were installed. He declared that the making of these improvements took about six months’ time and cost approximately $15,000. He produced some canceled checks payable to Bill Burris and Gene Powell. He said Powell was paid $60 per week and Burris, who did most of the wiring, and was the contractor, was paid $150 per week.

Schoonover said that in 1958 there was a definite increase in the number of his refrigeration and appliance repossessions brought about by reason of customer defaults in payments. Plaintiff had negotiated this paper to finance companies with recourse on him. The finance companies retained a substantial sum of the purchase price paid for plaintiff’s customer notes as a “reserve” and according to the evidence this “reserve” could not be used to cover repossessions unless and until plaintiff went out-of business. Plaintiff testified that in order to make this reserve, which he estimated at $30,000, available, he closed out the business as it had been operated and formed a new corporation to carry on the venture. He moved some equipment from the premises, part to his residence, and part to a new location.

In December, 1958, plaintiff went to California for about two weeks. He said this trip was partly a vacation and partly to assist his father in a business deal. He left the keys to the leased premises with his employee Gene Powell. Gene Powell at the time was separated from his wife and lived in the premises both day and night. Mr. Powell testified that just before Christmas the defendant Ben Lightor came to the leased premises and asked where Schoon-over was. Powell replied that he was on vacation but would be back. He said Lightor told him he had sold the place and needed the keys. Powell gave Lightor the keys and moved out.

Mr. Schoonover returned from California and early in January, 1959, went to the premises where he found workmen painting and making repairs on the building. Plaintiff had paid all rentals due under the lease through December, 1958. He said that some of his personal property- — office supplies, air conditioners and bins for storing meat — of the total value of $500, had been removed and were never recovered by him. He claimed that he then rented a new location or store room at 31st and Jackson, at a monthly rental of $150, and that the cost of moving, installing his equipment and required remodeling was “approximately $5,000.”

The defendants Lightor, Kahn and Mrs. Gladys Kahn, in December, 1958, conveyed the leased property by warranty deed to Morris M. and Minnie Dloogoff. The Dloogoffs were named as defendants in Count 2 of plaintiff’s petition but had the verdict and no appeal therefrom was taken.

It was the trial contention of defendants that Schoonover had vacated the premises, had removed some of the fixtures and had never sought to exercise his option by [538]*538giving the 30 days’ notice to either Lightor, Kahn or to the Dloogoffs.

The jury verdict and the judgment were for plaintiff and against the defendants Lightor, Kahn and Mrs. Gladys Kahn in the sum of $10,000. These defendants perfected a timely appeal in which they present five assignments of error, namely, (1) the petition fails to state a cause of action; (2) defendants’ motion for directed verdict should have been sustained; (3) it was error to give Instruction No. 1; (4) it was error to give Instruction No. 2 and (5) there is no evidence to support the verdict.

Plaintiff’s second amended petition alleges existence of the lease with option to purchase, compliance by the plaintiff with the rental provisions of the lease, improvements made by plaintiff, sale by defendants during the lease period, the wrongful dispossession of plaintiff and removal of plaintiff’s personal property, all to plaintiff’s damage in the sum of $30,000. The petition, we think, states a cause of action. The evidence which we have summarized is substantial and credible.

Appellants assert that Schoonover never tried to exercise the option by giving the prescribed 30 days’ notice and say he could have enforced the option against the purchasers, the Dloogoffs. Defendants by their sale of the property had made it impossible for them to perform under the option. They had breached the covenant conferring an option to purchase. As stated in 51 C.J.S. Landlord and Tenant § 88, p. 648: “In case of a breach of a covenant conferring on the lessee an option to purchase, the lessee is entitled to recover damages sustained by him”. See Barling v. Horn et al., Mo., 296 S.W.2d 94, where, under a different situation, specific performance was decreed. It is possible that plaintiff might produce evidence under which he might secure specific performance from the Dloogoffs but we shall not pursue or speculate upon this possibility. Defendants by their act in conveying the property made it impossible for them to honor the option.. Plaintiff is not required to seek recompense-for defendants’ breach of the option covenant from the Dloogoffs. He may seek damages from the defendants directly-Points 1, 2 and 5 are overruled.

We set out Instructions 1 and 2;

Instruction No. 1

Free access — add to your briefcase to read the full text and ask questions with AI

Related

C & J DELIVERY, INC. v. Vinyard & Lee & Partners, Inc.
647 S.W.2d 564 (Missouri Court of Appeals, 1983)
Mark Keshishian & Sons, Inc. v. Washington Square, Inc.
414 A.2d 834 (District of Columbia Court of Appeals, 1980)
Coons v. Baird
265 N.E.2d 727 (Indiana Court of Appeals, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
377 S.W.2d 535, 1964 Mo. App. LEXIS 734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schoonover-v-kahn-moctapp-1964.