Scott Salvage Yard, LLC v. Gifford

382 S.W.3d 134, 2012 WL 3663971, 2012 Mo. App. LEXIS 1018
CourtMissouri Court of Appeals
DecidedAugust 28, 2012
DocketNo. ED 97870
StatusPublished
Cited by5 cases

This text of 382 S.W.3d 134 (Scott Salvage Yard, LLC v. Gifford) 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
Scott Salvage Yard, LLC v. Gifford, 382 S.W.3d 134, 2012 WL 3663971, 2012 Mo. App. LEXIS 1018 (Mo. Ct. App. 2012).

Opinion

KURT S. ODENWALD, Judge.

Introduction

Harvey Gifford (“Gifford”) appeals from the trial court’s judgment in favor of Scott Salvage Yard, LLC (“Scott”). A jury found Gifford liable to Scott for fraudulent inducement and awarded Scott both compensatory and punitive damages. The trial court entered a judgment accordingly. On appeal, Gifford asserts that the trial court erred in failing to dismiss Scott’s claim of fraud or grant Gifford’s motion for judgment notwithstanding the verdict because Scott’s petition failed to state a claim. Gifford also argues that the trial court erred in submitting the issue of punitive damages to the jury because insufficient evidence exists to support an award of punitive damages. We find that Scott’s petition states a claim for fraudulent inducement and sufficient evidence exists to support submission of the case to a jury on the issue of punitive damages. The judgment of the trial court is affirmed.

[136]*136 Factual and Procedural History

Viewed in the light most favorable to the verdict, the evidence established at trial is as follows. Gifford.owns a vehicle salvage business. Scott operates a metal recycling business that provides the service of crushing vehicles using portable crushing machines. In August 2010, Gifford sought Scott’s service to crush, transport, and recycle salvaged vehicles owned by Gifford and located on his salvage yard. Gifford represented to Scott that he had 1200 cars at his salvage yard, and that he wanted Scott to crush at least 1000 cars, in addition to a large amount of tin.

The parties agreed that Scott would pay Gifford $205 per ton based on Scott crashing 1530 or more tons of salvage from at least 1000 cars and other scrap at Gifford’s salvage yard. The parties further agreed that Scott would tender Gifford a down payment of $25,000 at the beginning of the contract period, and that Gifford would hold, but not deposit, the down payment check until the final loads of crushed salvage were transported from Gifford’s salvage yard. Scott separately contracted with a third-party recycler who agreed to pay Scott $235 a ton for 1500 tons of crushed salvage from approximately 1000 cars, if the salvage was delivered before the end of September 2010. Scott informed Gifford that all work needed to be completed and delivered to Scott’s recycler within 30 days. Gifford assured Scott that Gifford would provide 100 or more cars per day in order to have all work completed within the time parameters set by Scott. Scott entered into the agreement with Gifford in reliance upon Gifford’s representation that Gifford would provide the volume of salvage specified in the agreement. Scott tendered the $25,000 down payment. Shortly thereafter, in violation of the terms of the contract, Gifford deposited the down payment cheek.

On September 8, 2010, Scott traveled to Gifford’s salvage lot with his portable crusher and began work. After the first few days of work, Gifford did not supply the required 100 cars per day for Scott to crush. By the fourth day after Scott began work at Gifford’s salvage yard, Gifford was supplying only 20 to 30 cars per day. After the second week, Scott expressed his concerns to Gifford about Gifford’s failure to provide the agreed volume of cars and the ability to meet the contract deadline.

On September 16, Scott paid Gifford $50,000 for cars crushed and recycled, despite not receiving a statement of the exact’ tonnage from the recycler. On September 17, after receiving a statement of previously recycled tonnage, Scott tendered to Gif-ford a second payment of $50,000. Gifford continued to provide Scott with fewer cars to crush than had been represented by Gifford. Scott again expressed concern to Gifford and stated that he needed Gifford to provide the number of vehicles promised in order for Scott to meet his contractual obligations to the third-party recycler.

Prior to September 20, Gifford contacted Scott and demanded that Scott tender a cash payment of $10,000. On September 20, Scott gave Gifford the demanded cash payment. Gifford signed a receipt acknowledging the $10,000 payment. The next day, Gifford demanded that Scott leave his property immediately. Scott informed Gifford that approximately 84 cars had been crushed but had not yet been loaded for transportation to the recycler. Gifford insisted again that Scott leave. When Scott refused to leave, Gifford had the sheriff escort Scott from the salvage yard. At the time Gifford evicted Scott from his property, Scott had received and crushed only one-third of the agreed upon vehicles and tonnage. Gifford did not allow Scott to complete the crushing of the salvage vehicles per their agreement.

[137]*137Scott filed suit against Gifford claiming multiple theories of relief including breach of contract and fraud. The case was tried before a jury. Scott submitted only the fraud count to the jury, and abandoned the remaining counts to his petition. The jury found Gifford liable on the fraud claim and awarded Scott both compensatory and punitive damages. The trial court entered a judgment accordingly. Gifford now appeals.

Point on Appeal

In his first point on appeal, Gifford asserts that the trial court erred in failing to dismiss Scott’s petition or failing to grant judgment notwithstanding the verdict because Scott’s petition failed to state a claim for fraud. In his second point, Gifford argues that the trial court erred in submitting the case to a jury on the issue of punitive damages because the record contains insufficient evidence to support an award of punitive damages.

Standard of Review

We review de novo whether a petition states a claim. Chochorowski v. Home Depot U.S.A., Inc., 295 S.W.3d 194, 197 (Mo.App. E.D.2009).

We review de novo whether the record contains sufficient evidence to support the trial court’s submission of a punitive damages instruction. Howard v. City of Kan. City, 332 S.W.3d 772, 788 (Mo. banc 2011).

Discussion

I. Scott’s petition states a claim for fraudulent inducement.

Gifford’s first point on appeal is based upon the assertion that the petition does not state a claim for fraud. Gifford argues that the allegations of the petition allege only a breach of promise during a contract, which is not actionable as fraud. We disagree.

In determining whether a petition states a claim, “the sole issue to be decided is whether, after allowing the pleading its broadest intendment, treating all facts alleged as true and construing all allegations favorably to the plaintiff, the plaintiff is entitled to relief.” Doss v. Doss, 822 S.W.2d 427, 428 (Mo. banc 1992) (internal citation omitted). We do not assess the merits of the case or consider evidence beyond the pleadings. Richardson v. City of St. Louis, 293 S.W.3d 133, 136 (Mo.App. E.D.2009).

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Bluebook (online)
382 S.W.3d 134, 2012 WL 3663971, 2012 Mo. App. LEXIS 1018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-salvage-yard-llc-v-gifford-moctapp-2012.