Stallings v. Bone

327 S.W.2d 513, 1959 Mo. App. LEXIS 484
CourtMissouri Court of Appeals
DecidedSeptember 15, 1959
DocketNo. 30257
StatusPublished
Cited by3 cases

This text of 327 S.W.2d 513 (Stallings v. Bone) 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
Stallings v. Bone, 327 S.W.2d 513, 1959 Mo. App. LEXIS 484 (Mo. Ct. App. 1959).

Opinion

RUDDY, Judge.

Plaintiffs in their petition charge the defendants with fraud. From a verdict and judgment in the sum of $3,500 against the defendants they appeal.

The defendants complain that the trial court erred (1) in giving and reading to the jury an instruction which authorized a verdict against defendants if the jury found that the defendants made false representations which related to something to be done in the future, and (2) in allowing plaintiffs’ counsel in his closing argument to the jury to draw unfavorable inferences and make unfavorable comment on the failure of the defendants to call Mr. Redwine as a witness.

One of the plaintiffs, Douglas Stallings, was a salesman for a wholesale liquor company. In the course of his duties as a liquor salesman he called on Arthur C. Bone,, one of the defendants, who operated a retail liquor store at 425 East Pine Street in Poplar Bluff, Missouri.

The plaintiffs are husband and wife and sometime in the month of December 1955 they learned the retail liquor store was for sale and entered into negotiations for the purchase of the store from the defendants, Arthur C. Bone and Alberta Bone, who are husband and wife. The evidence shows that the defendants represented to the plaintiffs they owned the merchandise and had a lease on the premises occupied by the liquor store. Plaintiffs testified that defendants told them they had a lease on the premises and were in a position to sublease the premises to the plaintiffs. Plaintiffs further testified that Arthur C. Bone told them he “was in the process of buying the property.”

Plaintiffs entered into an agreement to purchase the merchandise and the lease for a total price of $16,300. Plaintiffs testified that $11,000 of the purchase price was for the merchandise and $5,300 was for the lease. A contract introduced in evidence provided that the defendants agreed “to sell all of the stock and merchandise in the liquor store referred to in a lease heretofore entered into between the parties hereto and which is located at 425 East [515]*515Pine Street, Poplar Bluff, Missouri” and further -provided that the plaintiffs agreed “to purchase said stock and merchandise.” This contract was signed by the plaintiffs and defendants and was dated January 1, 1956. Also, introduced in evidence was a “Bill of Sale” dated January 1, 1956, executed by Arthur C. Bone, which provided in part as follows: “For the sum of $16,-300.00 I transfer all merchandise and lease on building, located at 425 East Pine, Poplar Bluff, Mo., to Douglas and Onita Stall-ings.”

On the same day the aforesaid contract and bill of sale were executed an alleged lease was entered into between the plaintiffs and the defendants, wherein the defendants as Lessors leased and demised to the plaintiffs “A certain store room known and designated as 425 East Pine Street * * * Poplar Bluff, Missouri.

“To Have and to Hold the same unto the Lessees for a term of five (5) years from the 1st day of January, 1956, down to, through and including the 1st day of January, 1961; Lessees shall have the option of renewal of this lease for a like period of five (5) years under the same terms and conditions.” The rental provided in said lease was $100 per month during the term of the lease or any renewal thereof. The lease was prepared by the attorney for the defendants.

Plaintiffs testified they had no doubt defendants had the right to sub-lease the premises and relied on defendants’ representations that they had a lease and were in the process of buying the property from the owner. The license to operate the liquor store at the time it was purchased by the plaintiffs was in the name of Arthur C. Bone.

Plaintiffs operated the liquor store from January 1 to December 1956, thinking they had a valid lease to the premises occupied by the store. In December they learned that the defendants did not have a lease on the premises when they sold the store and the sub-lease executed by the defendants to plaintiffs was worthless.

The evidence shows that at the time defendants sold the liquor store it was owned by John P. Redwine and that defendant Arthur C. Bone was operating the liquor store for him. Arthur C. Bone testified that John P. Redwine asked him to operate the liquor store until it could be sold. He said the license to the liquor store was in his (Bone’s) name. He further testified that a lease was prepared wherein John P. Redwine was to lease certain described premises to the defendants. The premises described included those occupied by the liquor store. The defendants introduced in evidence an instrument purporting to be the aforesaid lease. This instrument was signed by the defendants but ■ had never been signed by John P. Redwine, the Lessor. Arthur C. Bone said, “I acted as Mr. Red-wine’s agent in leasing this building to Mr. Stallings * * He said he signed the lease with plaintiffs at the direction of Mr. Redwine.

Arthur C. Bone further testified that plaintiffs knew he was operating the store for Mr. Redwine and knew that the lease had not been signed by Mr. Redwine, explaining that Mr. Stallings said he had to have the lease in order to obtain a license to operate the liquor store. He also testified that Mr. Stallings, prior to entering into the sale and lease agreements, had talked to Mr. Redwine over the telephone about the unexecuted lease. All of these matters testified to by Arthur C. Bone were denied by the plaintiffs. They testified they did not know Arthur C. Bone was acting as agent for John P. Redwine and Douglas Stallings testified he had no conversation with John P. Redwine prior to executing the sale and lease agreements.

The record contains much more evidence concerning the negotiations to purchase the liquor store; the circumstances surrounding the preparation of the lease between plaintiffs and defendants, and the manner in which the store rentals were paid. We [516]*516think the facts., we have related are sufficient for a ruling on the two points relied on by the defendants.

Plaintiffs’ instruction No. P-1, among other required findings, contains the following:

“ * * * and if you further find that the defendants, Arthur C. Bone and Alberta Bone, represented to the plaintiffs, Douglas Stallings and Onita Stallings, that they the said Arthur C. Bone and Alberta Bone were in the process of buying the said property from the legal owners * * * and if you further find the defendants well knew that their statements and representations concerning their ownership of said lease and their representations of their intention to buy the said property from the legal owners were untrue, if you so find, * *

In the first point relied on by the defendants it is their contention that the representations made by them that they were negotiating for and intending to purchase the property were representations relating to the future and thus could not be the basis for a charge of fraud. It has been the rule in this state that representations, though false, which relate to something to be done in the future, cannot be made the basis of a charge of fraud. Sparks v. Rudy Fick, Inc., Mo.App., 309 S.W.2d 687.

The rule is that the alleged fraudulent representations must relate to a present or preexisting fact, and that fraud cannot ordinarily be predicated on unfulfilled promises or statements as to future events. Reed v. Cooke, 331 Mo. 507, 55 S.W.2d 275.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mid-West Engineering & Construction Co. v. Campagna
397 S.W.2d 616 (Supreme Court of Missouri, 1965)
Wolf v. St. Louis Public Service Company
357 S.W.2d 950 (Missouri Court of Appeals, 1962)
Lyons v. Taylor
333 S.W.2d 346 (Missouri Court of Appeals, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
327 S.W.2d 513, 1959 Mo. App. LEXIS 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stallings-v-bone-moctapp-1959.