Seaton v. Western Auto Supply Co.

609 S.W.2d 207, 1980 Mo. App. LEXIS 2723
CourtMissouri Court of Appeals
DecidedNovember 3, 1980
DocketNo. WD 31083
StatusPublished
Cited by3 cases

This text of 609 S.W.2d 207 (Seaton v. Western Auto Supply 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
Seaton v. Western Auto Supply Co., 609 S.W.2d 207, 1980 Mo. App. LEXIS 2723 (Mo. Ct. App. 1980).

Opinion

SOMERVILLE, Judge.

Robert Seaton (Seaton) filed suit against Western Auto Supply Company (Western Auto) for damages claimed to have been incurred as the result of a temporary injunction obtained by Western Auto against Royce Akers (Akers) an “associate dealer” of Western Auto. Following a bench trial, judgment was entered in favor of Seaton and against Western Auto in the amount of $1,627.62 and for costs, and Western Auto appealed.

[208]*208Western Auto advances one point on appeal-that the evidence failed to “establish” a “cause of action” on Seaton’s behalf against Western Auto. As this opinion unfolds, it will become apparent that Western Auto’s position is somewhat unique in the sense that it possesses legal ramifications that go beyond merely questioning the sufficiency of the evidence to support a legally recognizable cause of action.

Unfortunately, the vague and gossamer-like quality of Seaton’s petition offers little, if any, assistance for determining his theory of recovery. Therefore, it is necessary to resort to a close, detailed review of the evidence.

Akers, who was not a party to the action which prompted this appeal, was an “associate dealer” for Western Auto in Greenwood, Missouri. He operated his business in a building initially leased from others. During the course of his business, Akers became indebted to Western Auto in the sum of approximately $30,000.00. This indebtedness was collateralized by a security agreement between Akers and Western Auto. The latter had a perfected security interest in all of the inventory, goods, equipment and fixtures located in the building where Akers operated his business. Ak-ers’ lease with the original lessors of the building did not expire until August 14, 1977. A copy of this lease was on file with Western Auto. Seaton, who operated a general heating and air conditioning business in Greenwood, Missouri, purchased the building leased by Akers on or about February 9,1977. Seaton was aware of the terms of Akers’ lease before he purchased the building. Seaton, anxious to move his heating and air conditioning business into the building which he contemplated purchasing, contacted Akers about getting early possession prior to purchasing the building. An “agreement” was reached between the two that Akers would vacate the building by February 28, 1977. It is impossible to tell from the record whether the “agreement” reached between Seaton and Akers was oral or written, and its terms, other than to the limited extent mentioned, are not disclosed.

On Sunday, February 13,1977, Akers ran a notice in the Kansas City Star that he was quitting business and that numerous items listed therein would be sold at public auction at his place of business on February 18, 1977. The items of property listed in the sale notice were those in which Western Auto had a perfected security interest. Moreover, the security agreement executed by Akers proscribed any sale or alienation of ownership of the collateral except in “the ordinary course of business on terms and prices customary therein.”

Western Auto did not learn of the public auction contemplated by Akers until February 16, 1977. On February 17, 1977, Western Auto filed a three count petition against Akers in the Circuit Court of Jackson County, Missouri, for moneys owed, judicial foreclosure, and injunctive relief. Pursuant thereto, the Judge of Division III of the Circuit Court of Jackson County, on February 17, 1977, (1) ordered Akers to show cause on February 25, 1977, why a temporary injunction should not be issued enjoining Akers from selling the items of property listed in the sale notice until it could be determined whether or not Western Auto was entitled to judicial foreclosure as prayed for, and (2) issued a temporary restraining order prohibiting Akers from conducting the public auction scheduled for February 18, 1977, or otherwise selling or disposing of the items of property listed in the sale notice until the further order of the court. An injunction bond filed by Western Auto in the amount of $1,000.00 was also approved by the court. A copy of the show cause and temporary restraining order was timely served upon Akers. After being served with the order, more particularly on February 18, 1977, Akers, on advice of counsel, “padlocked” the building in which he had been operating his business. Akers, after padlocking the building, made no attempt to move or to seek approval to move the items of property situated therein to a different location.

At the request of Akers’ attorney, the show cause hearing originally set for February 25, 1977, was continued over until [209]*209March 4, 1977. Akers, who appeared as a witness on behalf of Seaton at the trial of the principal action, testified to the effect that at the show cause hearing held on March 4, 1977, he stated that he had to be out of the building on March 1, 1977. Sea-ton testified during the trial of the principal action that he notified counsel for Western Auto sometime between March 1 and March 5, 1977, that it was his “desire to occupy the building”. Following the show cause hearing held on March 4, 1977, more particularly on March 11,1977, the Judge of Division III of the Circuit Court of Jackson County entered an order adjudging and decreeing (1) that the injunction bond filed by Western Auto be increased from $1,000.00 to $30,000.00, (2) that Western Auto have judgment for judicial foreclosure, (3) that the items of property belonging to Akers in said building be sold at public auction pursuant to due notice and advertisement of said public auction, (4) that the proceeds of said public action up to the sum of $29,-905.00 “be deposited, in custodia legis”, subject to the control of the court, awaiting the outcome of the case, and (5) that Akers be enjoined from otherwise disposing of the items of property ordered sold at public auction.

Seaton was neither a party to the action brought by Western Auto against Akers nor did he make any effort to intervene therein after obtaining knowledge on March 1, 1977, of the show cause and temporary restraining order served on Akers. There is no indication in the record that Seaton ever attempted to get Akers to remove the items of property from the building to another location pending the judicial sale or that he contacted either Akers, Western Auto, or the court to see if arrangements could be made to do so. On March 8, 1977, Seaton, in consideration of the sum of $150.00 paid by Akers, notified Akers in writing that he was extending Akers’ “lease” on “the building until midnight of March 28, 1977”. Seaton by way of explanation, testified as follows: “Because the man had no place to go with his merchandise and he had to leave it there, so I granted him the time to leave it there so he could arrange to get it sold and get rid of it.”

A public auction pursuant to the court order of March 11, 1977, was noticed up, advertised and held on March 29, 1977, and Akers vacated the building on the same date.

The amount of $1,627.62 awarded to Sea-ton as damages was ostensibly predicated on Seaton’s testimony that he incurred an obligation for rent at his previous business location in the amount of $1,000.00 while waiting to move into the building which he purchased, $500.00 in moving expenses, and $56.95 for telephone calls, $51.67 for electric charges and $20.00 for insurance in connection with the delay. The trial judge, after pronouncing judgment, announced from the bench that the judgment was based upon his belief that Seaton had sustained damages as a result of Western Auto “obtaining and maintaining the injunction”.

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Bluebook (online)
609 S.W.2d 207, 1980 Mo. App. LEXIS 2723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seaton-v-western-auto-supply-co-moctapp-1980.