Spitcaufsky v. Guignon

321 S.W.2d 481, 1959 Mo. LEXIS 909
CourtSupreme Court of Missouri
DecidedFebruary 9, 1959
Docket46605
StatusPublished
Cited by16 cases

This text of 321 S.W.2d 481 (Spitcaufsky v. Guignon) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spitcaufsky v. Guignon, 321 S.W.2d 481, 1959 Mo. LEXIS 909 (Mo. 1959).

Opinion

STOCKARD, Commissioner.

Appellant, Rheva Spitcaufsky, brought suit to quiet title to a tract of land located at 3811 East Blue Parkway, Kansas City, *484 Missouri, and for a declaratory judgment that various claims made by the defendants do not constitute a lien against the land and that appellant is not indebted to any of the defendants for commissions or for labor or materials furnished. The defendants filed numerous counterclaims and cross-claims. The pleadings are set forth in 126 pages of the transcript. Several of the defendants obtained judgment against plaintiff-appellant on their respective counterclaims, but on this appeal appellant challenges the judgment only insofar as it pertains to- five defendants or groups of defendants. Jurisdiction is in this court because the amount in dispute exceeds the sum of $7,500.

Appellant became interested in using an undeveloped tract of land owned by her for the construction of a large retail “supermarket,” but she needed a tenant and one hundred per cent financing to construct the project. Through her father, John Spitcaufsky, who admittedly was acting as her agent, she entered into an oral agreement with Gtiignon Realty Company, a partnership, (hereafter referred to as the Guignons), that it should negotiate in her behalf a lease with some tenant to use a building to be constructed by her. Apparently at the time the parties had in mind as the tenant The Great Atlantic & Pacific Tea Company (hereafter referred as the A & P Company). It was also a part of this oral agreement that the Guignons should obtain financing for appellant in an amount sufficient to construct a building and facilities which would meet the requirements of the tenant, and to pay certain other costs including a title policy, appellant's attorney fees, and the Guignons’ commission. For these services the Guignons were to receive a commission equal to five per cent of the rentals for the initial term of the lease.

Thereafter the Guignons negotiated a lease satisfactory to appellant with the A & P Company which was executed on November 29, 1955. This lease was for an original period of eight years beginning April 1, 1956, with an option to the lessee to< renew for two successive five-year periods at the agreed rental of $1,900 per month. The lease agreement contained general plans and specifications for the construction of the building and parking lot, but these obviously were not the complete plans and it was provided that the plans and specifications for the building were to be submitted to and approved by the lessee. There was also a provision that the agreement was “Predicated on the basis of the lessor’s ability to obtain loan of sufficient sum to cover construction of building, improvements and incidental expenses.”

Don L. Werner, a contractor, was present at the Guignons’ office, and he assisted John Spitcaufsky and the Guignons in estimating the cost of the construction features of the project. By reason of the efforts of the Guignons the New England Mutual Life Insurance Company, by letter to their Kansas City representative, dated February 3, 1956, agreed to loan to appellant the sum of $160,000 for 15 years at 4¾ per cent interest, payable in monthly instalments. However, no money was to be advanced by it until after the building had been completed, occupied and accepted by the A & P Company. Herbert V. Jones & Company agreed to malee an interim loan of $160,000 to appellant payable on August 1, 1956. In this manner financing satisfactory-to- appellant in the amount of $160,000 for the construction of the project was obtained by the Guignons.

While negotiations for the loans were being carried on, Barat Guignon, a member of the Guignon Realty Company, “activated the idea” that appellant should enter into a contract for the construction of the building so- that a fixed cost could be determined before she committed herself to the necessary financing. John Spit-caufsky knew that Werner was a contractor and that he was interested in obtaining the contract, but he insisted on and did obtain bids from other contractors. On January 6, 1956, Werner and appel *485 lant entered into a contract whereby Wer-ner agreed to' construct the project according to plans and specifications already then prepared for the total sum of $146,-000. This contract provided that Werner was to obtain and deliver te> appellant a “Faithful Performance to Completion Bond” in the amount of $146,000, and a “Maintenance Bond” guaranteeing to appellant that for and during the period of five years following the completion of the project Werner would “make good, at his own expense, in accordance with the instructions of Owner, any and all faulty or defective material or workmanship,” and that during the “last summer” of the five-year period Werner would “repair all holes, depressions or ruts in any of the pavements on the premises, and cover the repaired surfaces with a seal coat the same as in the original specifications.” A further provision was that the contract was made “expressly subject to Owner’s ability to obtain a loan of sufficient size to pay all of Owner’s obligations hereunder as well as other improvements” required under the lease with the A & P Company. Appellant agreed to notify Werner upon “receipt of a written firm commitment” for the loan, and Werner agreed to commence work under the contract within ten days thereafter.

On March 19, 1956, appellant notified Werner by letter that “the loan has been accomplished.” Werner had not obtained either of the two' bonds provided for in the contract, but this was known by appellant because the bonds were to have been delivered to and approved by her. After receiving the above notice Wer-ner started work on March 27 at the specific insistence of John Spitcaufsky, and he continued working until April 26. While this work was being done by Wer-ner, John Spitcaufsky was at the project every day as agent for appellant, and appellant was there two or three times each week. On April 24 appellant told Werner that if he did not get “the bond” (apparently the performance bond) he would have to quit work. Werner had been attempting to obtain a performance bond and he thought he could do so, but he discovered that he could not, and when he told appellant this she “shut the job down right then.”

Appellant then attempted to get a new contractor and obtained several bids, one of which was from Sam Dasta & Sons (hereafter referred to as Dasta). By letter dated June 1, 1956, Dasta offered to construct the “A & P Store * * * in accordance with drawings as presented to us by A & P Construction Department and also drawings as presented to us by the owner” for the sum of $145,978. This bid from Dasta included the cost of a performance bond but not a maintenance bond. The construction of the project pursuant to this bid would have been acceptable to the A & P Company, and the bid was within the available financing. Following this offer by Dasta a conference was held in the office of the district manager of the A & P Company which was attended by John Spitcauf-sky, Emile Guignon, Vince Dasta (a member of Sam Dasta & Sons) and a representative of the A & P Company. John Spit-caufsky insisted that certain additional items be included in a contract with Dasta, and as a result Dasta submitted a letter dated June 7 in which he itemized the various items and his price for each. The total amount was $8,850.

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Bluebook (online)
321 S.W.2d 481, 1959 Mo. LEXIS 909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spitcaufsky-v-guignon-mo-1959.