Stone v. Crown Diversified Industries Corp.

9 S.W.3d 659, 40 U.C.C. Rep. Serv. 2d (West) 279, 1999 WL 987448
CourtMissouri Court of Appeals
DecidedNovember 2, 1999
DocketED 75452
StatusPublished
Cited by21 cases

This text of 9 S.W.3d 659 (Stone v. Crown Diversified Industries Corp.) 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
Stone v. Crown Diversified Industries Corp., 9 S.W.3d 659, 40 U.C.C. Rep. Serv. 2d (West) 279, 1999 WL 987448 (Mo. Ct. App. 1999).

Opinion

OPINION

JAMES R. DOWD, Presiding Judge.

Plaintiffs David and Barry Stone, d/b/a The Joda Partnership (hereafter “JODA”), appeal from the judgments of the trial court granting Summary Judgment in favor of defendants Crown Diversified Industries Corp., d/b/a Million Air St. Louis (hereafter “Million Air”) and Corporate Aircraft Management, Inc. (hereafter “CAMI”) and denying Summary Judgment to JODA. We reverse the trial court’s grant of defendants’ Motion for Summary Judgment and affirm the trial court’s denial of JODA’s Motion for Summary Judgment.

FACTS

JODA is a general partnership engaged in the business of aircraft financing. In the course of their business, JODA loaned $1,050,000 to a Mexican corporation known as Aerotaxis del Noreste (hereafter “Aero-taxis”). Pursuant to the loan, Aerotaxis executed a promissory note and a security agreement, whereby Aerotaxis pledged a Dassault Falcon Jet (hereafter “jet”), which Aerotaxis owned, as collateral for the loan. At the time of the loan, JODA took possession of the jet and stored it at a maintenance facility in Los Angeles. The jet was kept there so Aerotaxis couldn’t take possession of the jet until the loan was repaid. In addition, as further security for the loan, Aerotaxis issued an undated Bill of Sale naming JODA as the purchaser. The undated Bill of Sale was held in escrow so that, in the event of default, JODA could easily take legal title to the jet. On January 31, 1997, JODA made an additional loan in the amount of $180,000 to Aerotaxis bringing the loan to $1,230,-000. 1

In May of 1997, JODA moved the jet to St. Louis and stored the jet in a hangar at the Spirit of St. Louis Airport. The hangar was owned by defendant Million Air, a corporation in the business of storing and maintaining aircraft. Million Air leased space in its hangar to defendant CAMI, also in the business of storing and maintaining aircraft. JODA contracted with CAMI to store the jet in their hangar space for $1,000 per month.

*663 On June 19, 1997, an unidentified pilot accompanied by a Chesterfield, Missouri police officer presented himself to the service front desk at Million Air’s hangar. The pilot identified the jet in question by its tail number and requested that the jet be delivered to him on the ramp in front of the hangar. He did not identify himself or indicate why he was requesting delivery of the jet, nor did the Million Air employee seek this information. The employee complied with the request solely because the pilot knew the tail number of the jet. The phot then took the jet to Texas.

The pilot to whom the jet was given was a representative from Skytech, an aircraft repair company located in Dallas, Texas. Skytech held an unrecorded and unregistered mechanic’s lien in the amount of $64,954.59 for repairs made to the jet in 1995 and 1996. Skytech repossessed the jet to obtain payment of the lien. There is no evidence JODA had actual or constructive notice of Skytech’s lien.

On June 24, 1997, JODA filed suit against Skytech in the District Court of Dallas County seeking to enjoin Skytech from releasing the jet to Aerotaxis or any other third party. On June 27, 1997, JODA and Skytech reached an agreement whereby JODA paid Skytech $64,954.59 in exchange for the jet. JODA then attempted to register the jet with the FAA in JODA’s name so JODA could sell the jet to satisfy Aerotaxis’ debt, now in default. However, in order for JODA to register the jet with the FAA in the United States, the jet had to be deregistered in Mexico. Despite a prior agreement to deregister the jet and for reasons unclear to this court, Aerotaxis blocked JODA’s efforts to deregister the jet in Mexico, thereby preventing JODA from registering the jet with the FAA. Subsequently, JODA entered into an agreement with Aerotaxis entitled Mutual Release and Settlement Agreement and Covenant Not to Sue dated September 25, 1997, pursuant to which Aerotaxis would allow the jet to be dere-gistered under Mexican law in exchange for JODA making payment to Aerotaxis in the sum of $175,000. Thereafter, the jet was deregistered in Mexico and reregis-tered in JODA’s name by the United States FAA. On October 14, 1997, having registered the jet with the FAA, JODA then sold the jet to Central Business Jets for $1,750,000.

On February 25, 1998, JODA filed suit against both Million Air and CAMI asserting a bailment relationship existed between JODA and both defendants. With respect to the bailment theory, JODA alleged breach of bailment contract, specific negligence, general negligence, and conversion. Pleading in the alternative, in the event that no bailment relationship existed, JODA further asserted a count of general negligence against both defendants. JODA sought damages of $79,110.29, including the $64,954.59 JODA paid to Sky-tech and expenses incurred in regaining possession of the jet.

On September 11, 1998, Million Air filed its Amended Motion for Summary Judgment and CAMI joined in the Motion. On September 28, 1998, JODA filed its Motion for Summary Judgment. On November 16, 1998, the trial court granted Million Air’s Motion and denied JODA’s. The trial court held that Skytech’s lien had priority over JODA’s lien and that Skytech lawfully repossessed the jet. Therefore, because Skytech’s rights to the jet were superior to those of JODA, the trial court held that JODA could not maintain an action against Million Air or CAMI under any recovery and defendants were entitled to Summary Judgment. The trial court further held JODA was not entitled to summary judgment because of the existence of material facts in dispute regarding JODA’s claims. JODA filed this timely appeal seeking review of both the trial court’s decisions granting Million Air’s motion and denying JODA’s.

STANDARD OF REVIEW

Our review is essentially de novo. ITT Commercial Finance Corp. v. Mid- *664 America Marine Supply Corp., 854 S.W.2d 371, 376 (Mo.banc 1993). The criteria on appeal for testing the propriety of summary judgment are no different from those which should be employed by the trial court to determine the propriety of sustaining the motion initially. Id. The propriety of summary judgment is purely an issue of law. Id. As the trial court’s judgment is founded on the record submitted and the law, an appellate court need not defer to the trial court’s order granting summary judgment. Id. When considering an appeal from summary judgment, this Court will review the record in the light most favorable to the party against whom judgment was entered. Id. We accord the non-movant the benefit of all reasonable inferences from the record. Id.

Generally, an order denying a motion for summary judgment is not a final judgment and therefore is not reviewable on appeal. Reben v. Wilson, 861 S.W.2d 171, 175 (Mo.App. E.D.1993).

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Cite This Page — Counsel Stack

Bluebook (online)
9 S.W.3d 659, 40 U.C.C. Rep. Serv. 2d (West) 279, 1999 WL 987448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-crown-diversified-industries-corp-moctapp-1999.