Sharon Smith v. Julia L. Stewart

CourtMissouri Court of Appeals
DecidedApril 12, 2022
DocketED109668
StatusPublished

This text of Sharon Smith v. Julia L. Stewart (Sharon Smith v. Julia L. Stewart) 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
Sharon Smith v. Julia L. Stewart, (Mo. Ct. App. 2022).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION TWO

SHARON SMITH, et al., ) No. ED109668 ) Appellants, ) Appeal from the Circuit Court ) of Washington County vs. ) 19WA-CC00334 ) JULIA L. STEWART, ) Honorable Troy K. Hyde ) Respondent. ) Filed: April 12, 2022

Sharon Smith (individually “Plaintiff Sharon Smith”), Rebecca Howell (individually

“Plaintiff Howell”), and Margaret Smith (individually “Plaintiff Margaret Smith”) (collectively

“Plaintiffs”) appeal the judgment granting Julia L. Stewart’s (individually “Defendant Stewart”

or “Defendant”) motion to dismiss Plaintiffs’ petition seeking declaratory relief, injunctive relief,

and specific performance relating to a parcel of residential property. The trial court dismissed

Plaintiffs’ petition with prejudice for failure to state a claim upon which relief may be granted.

As explained in detail below, we affirm the trial court’s judgment to the extent the court

found Plaintiffs’ petition should be dismissed for failure to state a claim upon which relief may

be granted. However, we reverse the trial court’s judgment to the extent the court dismissed

Plaintiffs’ petition with prejudice. Additionally, we remand the case with instructions to the trial

court to enter an order reflecting the dismissal of Plaintiffs’ petition is without prejudice; with

instructions to the trial court to give Plaintiffs the opportunity to amend their petition; and for

further proceedings consistent with this opinion. I. BACKGROUND

A. Plaintiffs’ Petition and the Allegations Therein

Plaintiffs filed the petition at issue in this case – their original petition – on September 23,

2019. Because this appeal involves a dismissal by the trial court for failure to state a claim upon

which relief may be granted, we begin by setting out the relevant factual allegations of Plaintiffs’

petition and the exhibits attached thereto.1

Plaintiff Margaret Smith is the daughter of Plaintiff Sharon Smith and is Defendant

Stewart’s niece. Plaintiff Sharon Smith, Plaintiff Howell, and Defendant Stewart are siblings,

and their mother Dorothy A. Watson (“Mother”) passed away in August 2015. Prior to Mother’s

death, she owned a parcel of residential property located at 704 East High Street in Potosi,

Missouri (“Mother’s Residence”).

Plaintiffs’ petition alleges Defendant Stewart has an enforceable contractual obligation to

immediately sell Mother’s Residence to Plaintiff Margaret Smith and Defendant breached such

obligation. The basis of Plaintiffs’ petition pertains to three agreements relating to the

distribution of properties, which were entered into following Mother’s death: an August 2016

Watson-Casey Agreement; a December 2016 Settlement Agreement; and a December 2017

addendum to the December 2016 Settlement Agreement.

The August 2016 Watson-Casey Agreement was entered into on or about August 5, 2016

by Plaintiff Sharon Smith, Plaintiff Howell, and Defendant Stewart (all individually and as

successor trustees of their Mother’s trust)2; “Casey LLC”; and “members of the Casey family”

1 See Tolu v. Reid, 639 S.W.3d 504, 510 n.1, 514, 538 (Mo. App. E.D. 2021) (in an appeal involving a dismissal by the trial court for failure to state a claim upon which relief may be granted, our Court “draw[s] the relevant factual and procedural history from the factual assertions in the dismissed . . . petition and the exhibits attached thereto, as we are required to assume all facts alleged in the petition are true”); see also Missouri Supreme Court Rule 55.12 (effective from September 1, 1973 to the present) (“Rule 55.12”) (providing “[a]n exhibit to a pleading is a part thereof for all purposes”). 2 The official name of Mother’s trust is “the Dorothy A. Watson Surviving Grantor’s TrustU/William H. Watson and Dorothy A. Watson Revocable Trust dated 8/6/93.”

2 (“Watson-Casey Agreement”). While the Watson-Casey Agreement is not attached as an exhibit

to Plaintiffs’ petition, at least some of its alleged terms are referred to in the petition and the

exhibits attached thereto. Taking Plaintiffs’ allegations in their petition and the exhibits attached

thereto as true and viewing all reasonable inferences therefrom in their favor,3 the Watson-Casey

Agreement allegedly provides Plaintiff Sharon Smith, Plaintiff Howell, and Defendant Stewart

would receive multiple parcels of real property, including Mother’s Residence, which are

collectively referred to as the “Watson Properties.”

The second agreement relevant to Plaintiffs’ petition and the distribution of properties – a

settlement and mutual release agreement – was entered into on or about December 27, 2016 by

Plaintiff Sharon Smith, Plaintiff Howell, and Defendant Stewart (“Settlement Agreement”). The

Settlement Agreement is referenced in and attached to the petition as an exhibit and provides in

relevant part that, (1) “the effective date of this Settlement Agreement and all transactions

consummated in connection herewith, shall be on or before January 5, 2017, unless otherwise

expressly provided herein (the ‘Effective Date’)” (emphasis omitted); (2) promptly after, inter

alia, the Effective Date, the parties shall cause Mother’s Residence to be titled solely in the name

of Defendant Stewart; and (3) Defendant Stewart is obligated to sell Mother’s Residence to

Plaintiff Margaret Smith for $170,000.00 subject to closing adjustments and prorations if

Plaintiff Margaret Smith successfully closed on the property on or before the effective date of

June 1, 2017 or if Plaintiff Margaret Smith’s failure to close on or before June 1, 2017 was

through the fault of Defendant.

3 See Tolu, 639 S.W.3d at 510 n.1, 514, 538 and Rule 55.12 (set out in relevant part in footnote 1 of this opinion); Amalaco, LLC v. Butero, 593 S.W.3d 647, 650-51 (Mo. App. E.D. 2019) (in reviewing a motion to dismiss for failure to state a claim, we assume all of the plaintiffs’ allegations in the petition are true and view all reasonable inferences therefrom in favor of the plaintiffs). To avoid unnecessary repetition, footnotes, or citations, all further references to this portion of the standard of review as applied specifically to Plaintiffs’ allegations in their petition and the exhibits attached thereto are supported by Tolu, Rule 55.12, and Amalaco.

3 The third and final agreement relevant to Plaintiffs’ petition and the distribution of

properties – an addendum to the December 2016 Settlement Agreement – was entered into on or

about December 27, 2017 by Plaintiff Sharon Smith, Plaintiff Howell, and Defendant Stewart

(“Addendum”). The Addendum is referenced in and attached to the petition as an exhibit and

provides in relevant part that, (1) “[t]he Effective Date of the Settlement Agreement shall be the

date upon which the closing of the transactions contemplated by the Watson-Casey Agreement

occurs”; (2) “any reference in the Settlement Agreement to any obligation being performed on or

before the Effective Date shall mean the date upon which the closing of the transactions

contemplated by the Watson-Casey Agreement occurs”; and (3) “[e]xcept as expressly set forth

herein, the Settlement Agreement shall remain unmodified, unamended and in full force and

effect.”

Taking Plaintiffs’ allegations as true and viewing all reasonable inferences therefrom in

their favor, Plaintiffs’ petition seeks declaratory relief, injunctive relief, and specific

performance. Plaintiffs’ petition specifically alleges Defendant Stewart has an enforceable

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Sharon Smith v. Julia L. Stewart, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharon-smith-v-julia-l-stewart-moctapp-2022.