State ex rel. Danforth v. W. E. Construction Co.

552 S.W.2d 72, 1977 Mo. App. LEXIS 2172
CourtMissouri Court of Appeals
DecidedMay 17, 1977
DocketNo. 37438
StatusPublished
Cited by4 cases

This text of 552 S.W.2d 72 (State ex rel. Danforth v. W. E. Construction 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
State ex rel. Danforth v. W. E. Construction Co., 552 S.W.2d 72, 1977 Mo. App. LEXIS 2172 (Mo. Ct. App. 1977).

Opinion

NORWIN D. HOUSER, Special Judge.

Proceeding by the attorney general under the Merchandising Practices Act, Chap. 407, RSMo 1969, against. W. E. Construction Company, a corporation, and its president and chief stockholder, Floyd Edwin Harris, for injunctive relief. Following a six-day trial the court granted an injunction against the corporate defendant but not against the individual defendant. The attorney general appealed on behalf of the State, contending that the court erred in not enjoining the individual defendant.

Defendants developed several subdivisions in Jefferson County, platting and grading the land, building streets and constructing more than 100 homes, sold to the public through real estate agents.

The petition alleged and the issue tried was whether in connection with the sale, [73]*73offer for sale and advertisement of dwelling houses and real estate defendants and their agents and employees used or employed deception, false promises, false advertising and misrepresentation, and concealed, suppressed and omitted material facts in their selling activities.

The trial court found that the corporation engaged the real estate agencies whose representatives made representations to purchasers of homes in the Quail Run Subdivisions (1) that their homes would be completed by specified dates, but they were not completed by the dates promised; (2) that Partridge Drive would be a dead-end street, which it was not; (3) that the streets in the subdivision would be constructed of concrete, but that they were rolled asphalt.

The trial court found that defendant Harris promised purchasers named Wibben-meyer that the corporation would assist them in moving into their new home in Quail Run Subdivision, but did not honor this promise; that he represented to two other purchasers of homes in the subdivision that Partridge Drive would be a dead-end street; and that he promised the Har-pers, who were dissatisfied with their purchase, that the corporation would build another home for them, but it was not built.

The court found the foregoing facts constituted violations of Chapter 407 “as against defendant W. E. Construction Company only but not against defendant Harris”; found the issues for plaintiff and against the corporation and for defendant Harris and against plaintiff, and entered judgment enjoining the corporation from promising or representing that a house will be completed or that a purchaser can close on a home by a certain date, or that dead-end streets will be built in subdivisions developed by the corporation, or that streets or roads in a subdivision built by the corporation will be concrete, unless such promises or representations are true.

We are not concerned on this appeal with the propriety of the findings and judgment against the corporation, since there is no appeal from the judgment against the corporation. We are concerned only with the propriety of the denial of injunctive relief against the individual defendant.

Appellant raises these points: that the court erred in concluding that defendant Harris did not violate the Act and in failing to issue an injunction against him, because under the statutory definitions in § 407.010, the evidence, and the court’s own findings of fact Harris’ guilt of wrongdoing is demonstrated; that the State’s evidence and the law support an order to protect the public interest, based on Harris’ personal wrongdoing and his position as principal stockholder and president of a corporation found guilty of wrongdoing; and that the court erred in concluding that the element of intent is a necessary component for a finding of a violation of the Act. Respondent contravenes these points and contends that under the standard of review prescribed by Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976), the judgment should be sustained as to defendant Harris.

We do not reach the merits of this appeal for the reason that an overriding consideration demonstrates that there is no basis for injunctive relief.

Section 407.100, RSMo 1969, provides that if the court finds that a person has engaged or is engaging in any method, act, or practice declared to be unlawful by sections 407.010 to 407.130 “it may make such orders or judgments as may be necessary * * * to prevent the use of [or?] employment by such person of any prohibited methods, acts, or practices, * * (Our italics.) The language is not mandatory. Under § 407.100 the court is not required to issue an injunction; it is discretionary with the court. The statute follows the general law that an injunction is not a matter of right but its granting rests in the sound discretion of the court, to be exercised in accordance with well-settled equitable principles and in the light of all the facts and circumstances in the ease. State ex rel. Ellis v. Creech, 364 Mo. 92, 259 S.W.2d 372, 374[4] (banc 1953).

Trade regulation acts generally do not make it mandatory for the court to issue an [74]*74injunction in every instance where it finds that a defendant in a proceeding brought thereunder has committed a violation. The issuance of an injunction in such cases is a matter of discretion. State ex rel. Johnson v. International Harvester Co., 25 Or.App. 9, 548 P.2d 176 (1976), citing Hecht Co. v. Bowles, 321 U.S. 321, 64 S.Ct. 587, 88 L.Ed. 754 (1944). In this connection see also United States v. U. S. Steel Corp., 251 U.S. 417, 445, 40 S.Ct. 293, 64 L.Ed. 343 (1920); Industrial Ass’n of San Francisco v. United States, 268 U.S. 64, 45 S.Ct. 403, 69 L.Ed. 849 (1925); Fram Corporation v. Boyd, 230 F.2d 931[1] (5th Cir. 1956); Parkway Baking Company v. Freihofer Baking Company, 255 F.2d 641, 649[18] (3rd Cir. 1958); Coca-Cola Co. v. Howard Johnson Co., 386 F.Supp. 330, 338-339[19] (N.D.Ga.1974); John Wright, Inc. v. Casper Corp., 419 F.Supp. 292, 326, fn. 20[58] (E.D.Pa.1976). In Parkway Baking Company, supra, 255 F.2d 1.c. 649, the court expressed the rule thusly: “The cases are legion which say that where there has been a cessation of the conduct complained of, at any time prior to judgment, it is a matter for the exercise of the discretion of the court, as to whether an injunction should issue. Under the facts of this case we do not believe that the court below abused its discretion.”

Although Harris flatly denied the charge, there was an evidentiary basis for the court’s findings that Harris made misrepresentations to two purchasers that Partridge Drive would be a dead-end street and broke promises he made to the Wibbenmey-ers and Harpers.

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

Related

State ex rel. Nixon v. Continental Ventures Inc.
84 S.W.3d 114 (Missouri Court of Appeals, 2002)
State ex rel. Webster v. Milbourn
759 S.W.2d 862 (Missouri Court of Appeals, 1988)
May Department Stores Co. v. County of St. Louis
607 S.W.2d 857 (Missouri Court of Appeals, 1980)
Hudson v. School District of Kansas City
578 S.W.2d 301 (Missouri Court of Appeals, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
552 S.W.2d 72, 1977 Mo. App. LEXIS 2172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-danforth-v-w-e-construction-co-moctapp-1977.