Schroeder v. Zykan

255 S.W.2d 105
CourtMissouri Court of Appeals
DecidedFebruary 17, 1953
Docket28460
StatusPublished
Cited by38 cases

This text of 255 S.W.2d 105 (Schroeder v. Zykan) 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
Schroeder v. Zykan, 255 S.W.2d 105 (Mo. Ct. App. 1953).

Opinion

255 S.W.2d 105 (1953)

SCHROEDER
v.
ZYKAN.

No. 28460.

St. Louis Court of Appeals. Missouri.

February 17, 1953.

*107 Arthur U. Simmons, Ludwig Mayer and J. Leonard Walther, Clayton, for appellant.

A. J. Haverstick, St. Louis, Herbert W. Ziercher, Clayton, for respondent.

HOUSER, Commissioner.

Action based upon fraud, to recover the amount of the down payment made on a contract for the purchase of a septic tank cleaning business, and for time lost and expenses incurred. Plaintiff is Frank W. Schroeder, the purchaser. Defendant is Frank E. Zykan, the seller. Plaintiff recovered judgment for $2,338, the jury specifying the following items: $2,000 (the amount of the down payment), $285 for interest and $53 for advertising. Defendant took nothing on his counterclaim for $1,800 which was the balance due on the contract. Defendant appeals from the judgment for plaintiff.

Plaintiff's petition alleged that defendant made the following representations: that he owned and proposed to sell to plaintiff the business, truck tank and equipment of AAA Septic Tank Cleaning Service; that the business would be profitable to plaintiff; that the business was promoted and procured and the public was acquainted with his business by display advertisements in telephone directories; that the future of the business depended upon the uninterrupted rendition of said telephone directory advertising and the corresponding telephone service; and that defendant would continue the telephone advertisement and number and transmit to plaintiff all telephone calls from customers desiring septic tank service. The petition alleged the falsity and fraudulent character of the representations; and that defendant at the time of the closing of the sale did not have a certificate of title to the truck and could not transfer title thereto to plaintiff. The petition further alleged reliance by plaintiff upon the representations, payment of $2,000 on account of the total purchase price of $3,800 for the business, truck and tools, refusal to pay the $1,800 balance when he learned that the representations were false and fraudulent, expenditure of sums in contemplation of acquiring the business, for advertising, printing, and insurance, and loss of time, and concluded with a prayer for $2,175 with interest from May 18, 1949.

The evidence favorable to plaintiff showed that around May 15, 1949 the parties discussed the sale of the business to plaintiff; that in the preliminary discussion defendant represented that he had made $200,000 in the business; that he would like to see plaintiff go into it; that plaintiff had better make up his mind because he had only ten days to renew the advertising in the telephone directory. Defendant admitted that he told plaintiff that he had ten days on some ads and sixty days on other ads in which to get his advertisements in the St. Louis and suburban telephone directories. Plaintiff having had no experience in the business wished to consult a Mr. Curry, a neighbor and a good mechanic, before he would be interested in the business. Curry having indicated that he would go in with plaintiff as a partner, plaintiff notified defendant that he would accept the offer and take over the business. On May 18, 1949, a meeting for the purpose of agreeing upon the terms of the sale was held at defendant's house. Plaintiff, defendant and Mr. Shaughnessy, defendant's bookkeeper, were present. At that time defendant told plaintiff that he would sell him his tank, truck and equipment, give plaintiff the trade name AAA Septic Tank Cleaning Service and the good will that went with it, his personal telephone at his office for a period of time, transfer to plaintiff all calls that came through his office for the period of one year, and turn over all his septic tank business to plaintiff. Defendant told plaintiff that he would have a certain length of time to renew the advertisements in the yellow pages of the telephone book and to have the number changed. A written memorandum was prepared at the time and signed by defendant, reciting that defendant had sold his septic tank business including truck, tank body, bores, tools and the name AAA, and agreeing to assign his interest in the business to plaintiff and to transfer to plaintiff all service calls received by him for a period of one year. *108 The paper, dated May 18, 1949, recited the sale price of $3,800; acknowledged receipt of $2,000 and showed a balance due of $1,800. After defendant signed the paper plaintiff gave defendant a check for $2,000 as part of the purchase price. Plaintiff then asked to see the title to the truck. Defendant was unable to find the title to the truck and assured plaintiff that he had nothing to worry about, urging him to "go on and in a few days I will have it fixed for you and have a title all ready for you." The next day plaintiff sent his wife down to the telephone company for the purpose of renewing the septic tank advertising in the telephone directory. Plaintiff then found that the advertisement had been canceled and that it was too late to renew the advertising in time for it to appear in the forthcoming publication of the St. Louis County and City of St. Charles directories, although there was still sufficient time to have it renewed so as to appear in the St. Louis City directory, which is distributed to all subscribers in the St. Louis County area. It appears that on March 31 defendant had signed cancellations for directory advertising in the Greater St. Louis telephone directory, the St. Louis suburban directory and the St. Charles directory, and had kept the telephone number but changed the listing from "AAA Septic Tank Cleaning Service" to "Frank E. Zykan." The cancellations to the St. Charles and St. Louis suburban directories were effective June 1 and could not be renewed after May 18 but the advertising in the Greater St. Louis directory could have been renewed until August 15. When plaintiff confronted defendant with the information that he could not continue the directory advertising in the suburban and St. Charles directories defendant told him that he could still carry the ad in the Greater St. Louis directory and get enough business out of it, with defendant's telephone number. A week later defendant's telephone was disconnected.

Shortly after May 18 defendant referred a service call to plaintiff and plaintiff did the work, received $65, and used the truck, defendant lending plaintiff a license plate for the truck. Four or five days later plaintiff received another call from defendant to do a cleaning job and that job was completed. These jobs were done after plaintiff's wife had gone to the telephone company and had been told that she could renew the advertising only in the Greater St. Louis directory. Both service calls were made before the date upon which the parties were to close the deal. The truck was purchased new by defendant in 1946. Although he received a bill of sale at that time, no certificate of title was issued and plaintiff did not have a certificate of title on May 18, 1949. On that date defendant assured plaintiff that he would have a title for him in a few days. Defendant made efforts to procure a truck license for plaintiff but was unable to do so because of the lack of a certificate of title. Plaintiff and his wife went to defendant several times but were never given a certificate of title. Plaintiff arranged for a bank to finance the balance due on the transaction and about May 28 plaintiff and defendant met at the bank where a mortgage in blank was signed but the transaction could not be consummated for lack of a certificate of title.

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Bluebook (online)
255 S.W.2d 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schroeder-v-zykan-moctapp-1953.