State ex rel. Premier Marketing, Inc. v. Kramer

2 S.W.3d 118, 1999 Mo. App. LEXIS 1024, 1999 WL 559594
CourtMissouri Court of Appeals
DecidedAugust 3, 1999
DocketNo. WD 56310
StatusPublished
Cited by13 cases

This text of 2 S.W.3d 118 (State ex rel. Premier Marketing, Inc. v. Kramer) 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. Premier Marketing, Inc. v. Kramer, 2 S.W.3d 118, 1999 Mo. App. LEXIS 1024, 1999 WL 559594 (Mo. Ct. App. 1999).

Opinion

HANNA, Judge.

On January 20, 1998, Schwindler Brokerage Company of Kansas City, filed a pleading entitled “Petition on Account Stated” in the circuit court of Jackson County.1 The petition named relators, Premier Marketing, Inc., a Nebraska corporation, and Frank Petsick, a Nebraska resident and president of Premier,2 who was a guarantor, as defendants. The underlying dispute concerns a default under a “Consultation and Advisory Agreement” and promissory note, both dated May 1, 1989.3 The documents, including the guar[120]*120anties, were executed in Omaha, Nebraska. The underlying lawsuit sought judgment against relators under the promissory note, Consultation and Advisory Agreement, and accompanying guaranties. Premier and Petsick subsequently filed a motion to dismiss challenging the subject matter jurisdiction of the Missouri courts based on the forum selection clause in the consultation agreement.4 The Honorable C. William Kramer denied the motion and the relators filed their petition for a writ of prohibition with this court, and we issued our writ.

Relators contend that Missouri courts do not have either subject matter jurisdiction or personal jurisdiction over Premier. Schwindler argues that it entered into a novation with Premier in February 1994, thereby extinguishing the terms of the promissory note and consultation agreement, including the forum selection clause. We hold that the forum selection clause in the parties’ consultation agreement is valid. Therefore, the trial court lacks subject matter jurisdiction, and the preliminary writ is made permanent.

Premier is a Nebraska corporation with its principal place of business in Omaha, Nebraska. It is not registered to do business in Missouri. On or about May 1, 1989, Premier and Schwindler Brokerage Company, Inc., executed a promissory note and entered into a “Consultation and Advisory Agreement.” Both the note and the consultation agreement included guaranties executed by Frank Petstick, president of Premier, and Mel Brammeier.

Schwindler Brokerage Company, Inc., agreed to provide advice and counsel to Premier for a term of five years in exchange for a monthly fee of $2850. The agreement contains a forum selection clause stating that: “[t]his agreement shall be governed in all instances by the laws of the State of Nebraska, and any action on this agreement shall be brought only in the Courts of Nebraska.” The consultar tion agreement stated that it was not assignable and that all amendments must be in writing. The promissory note was signed May 1, 1989, by Petsick as president of Premier and called for payment of $60,000, payable in installments of $1000 a month. Part of the record on appeal consists of a document, unsigned by either party, dated February 7, 1994. Schwin-dler’s petition identifies the document as a “statement of account” calling for payments of $2000 per month commencing March 20, 1994. On February 26, -1996, and again on March 15, 1996, Schwindler sent letters to Premier demanding that they make payment of “all monies owed plus interest.”

The power to issue a writ of prohibition is limited to correction or limitation of an inferior court or agency that is acting without, or in excess of, their jurisdiction. State ex rel. J.E. Dunn Const. Co. v. Fairness in Const. Bd. Of City of K.C., 960 S.W.2d 507, 511 (Mo.App.1997). A writ of prohibition does not issue as a matter of right, and whether a writ should be issued in a particular case is a question left to the sound discretion of the court to which the application has been made. Id. The discretionary authority of the court to issue a writ of prohibition, however, is exercised when the facts and circumstances of a particular case demonstrate unequivocally that there exists an extreme necessity for preventative action. Derfelt v. Yocom, 692 S.W.2d 300, 301 (Mo. banc 1985). A writ of prohibition is an extraordinary remedy and it should be used with “great caution, forbearance, and only in cases of extreme necessity.” Missouri Dept. of Soc. Serv. v. Admin. Hearing Comm’n, 826 S.W.2d 871, 873 (Mo.App. [121]*1211992). However, when it is clear that the pleadings fail to invoke the court’s jurisdiction, prohibition is appropriate. State ex rel. Rival Co. v. Gant, 945 S.W.2d 475, 476 (Mo.App.1997).

The Supreme Court has identified three situations in which writs of prohibition will issue. State ex rel. Chassaing v. Mummert, 887 S.W.2d 573, 577 (Mo. banc 1994). The writ of prohibition will issue to prevent an usurpation of judicial power because the trial court lacks either personal or subject matter jurisdiction; to remedy a clear excess of jurisdiction or an abuse of discretion such that the lower court lacks the power to act as contemplated and; finally, in limited situations where some absolute irreparable harm may come to a litigant if some spirit of justifiable relief is not made available to respond to a trial court’s order. Id. at 577.

A writ of prohibition is the appropriate vehicle in which to raise issues regarding jurisdiction. State ex rel. McDonnell Douglas Corp. v. Ryan, 745 S.W.2d 152, 153 (Mo.1988)(discussing subject matter jurisdiction); State ex rel. William Ranni Assoc., Inc. v. Hartenbach, 742 S.W.2d 134, 136 (Mo. banc 1987)(discussing personal jurisdiction); State ex rel. Phelan v. Davis, 965 S.W.2d 886, 888 (Mo.App.1998)(addressing subject matter and personal jurisdiction).

Relators contend here that the forum selection clause in the consultation agreement divested the Missouri court of subject matter jurisdiction. Relators also argue that the Missouri courts lack personal jurisdiction over Premier because Schwindler failed to demonstrate: (1) that this suit arose out of an activity enumerated in the long-arm statute; (2) that Premier had sufficient minimum contacts with Missouri; and (3) that Schwindler had standing to bring this suit. Because the dispositive issue is the court’s subject matter jurisdiction, we do not reach the personal jurisdiction issue.

Historically, courts did not favor out-bound forum selection clauses; however, the recent trend is to recognize the validity of such clauses unless they can be proven to be unfair or unreasonable. See M/S Bremen GmBH v. Zapata Off-Shore Co., 407 U.S. 1, 10, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972). Missouri courts have now declared valid, fair and reasonable those forum selection clauses that provide for trials outside of Missouri. High Life Sales Co. v. Brown-Forman Corp., 823 S.W.2d 493, 496 (Mo. banc 1992). In

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

Related

Doris Homer v. Eighty Seventh Apartments
Court of Appeals of Texas, 2024
Park Irmat Drug Corp. v. Express Scripts Holding Co.
911 F.3d 505 (Eighth Circuit, 2018)
Park Irmat Drug Corp. v. Express Scripts Holding Co.
310 F. Supp. 3d 1002 (E.D. Missouri, 2018)
James Lutes v. Honorable Lee B. Schaefer
Missouri Court of Appeals, 2014
Lutes v. Schaefer
431 S.W.3d 550 (Missouri Court of Appeals, 2014)
State Ex Rel. Garrett v. Dally
188 S.W.3d 111 (Missouri Court of Appeals, 2006)
National Sur. Corp. v. Prairieland Const. Inc.
354 F. Supp. 2d 1032 (E.D. Missouri, 2004)
Burke v. Goodman
114 S.W.3d 276 (Missouri Court of Appeals, 2003)
L & L WHOLESALE, INC. v. Gibbens
108 S.W.3d 74 (Missouri Court of Appeals, 2003)
State Ex Rel. AG Processing Inc. v. Thompson
100 S.W.3d 915 (Missouri Court of Appeals, 2003)
Jetz Service Co., Inc. v. Botros
91 S.W.3d 157 (Missouri Court of Appeals, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
2 S.W.3d 118, 1999 Mo. App. LEXIS 1024, 1999 WL 559594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-premier-marketing-inc-v-kramer-moctapp-1999.