Sun Oil Co. of Pennsylvania v. Inman Oil Co.

714 S.W.2d 743, 1986 Mo. App. LEXIS 4265
CourtMissouri Court of Appeals
DecidedJune 17, 1986
DocketNo. 14274
StatusPublished

This text of 714 S.W.2d 743 (Sun Oil Co. of Pennsylvania v. Inman Oil 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
Sun Oil Co. of Pennsylvania v. Inman Oil Co., 714 S.W.2d 743, 1986 Mo. App. LEXIS 4265 (Mo. Ct. App. 1986).

Opinion

MAUS, Judge.

Plaintiff Sun Oil Company of Pennsylvania (Sun) by Count I of its first amended petition sought a judgment against Inman Oil Co., Inc., (corporate defendant) for merchandise sold to that defendant. By Count II Sun sought a judgment against Ronald C. Inman and Janet L. Inman (individual defendants) upon the basis of a letter of guaranty. Upon Count I the trial court rendered a summary judgment for Sun against the corporate defendant for $207,-551.19. Upon Count II, upon an agreed submission, it rendered judgment against Sun and for the individual defendants. Sun appeals from the judgment on Count II.

The following is a sketch of the development of the case. The petition was followed by motions, requests for admissions, interrogatories, and other preliminary pleadings. Eventually, Sun filed a motion for summary judgment upon Counts I and II of the first amended petition. The individual defendants filed a motion for summary judgment on Count II of the first amended petition. The evidentiary material placed before the court by those motions established the following. On February 10, 1977, Sun and the corporate defendant executed an Industrial Distributor Agreement whereby Sun agreed to sell to the corporate defendant Sun’s “branded industrial petroleum products.” That agreement was for a term of three years and from year to year thereafter, unless upon 60 days notice by either party it was terminated at the end of the initial term or any yearly extension. On August 4, 1977, the individual defendants executed a “Guarantee” in the form of a letter from them to Sun. The letter recited the individual defendants understood the corporate defendant was about “to complete an arrangement with your company to purchase your products.” The letter continued,

in consideration of the sum of One Dollar ($1.00) and other valuable considerations ... (I) (we) hereby promise and guarantee that the amount or amounts due for all such materials sold or delivered to Inman Oil Co., Inc. and any other charges, shall be duly paid to your company; and, if any bill rendered by you to said Inman Oil Co., Inc. for materials so delivered, or other charges, is not paid [745]*745when due, (I) (we) will forthwith pay the same to you- (emphasis added).

In addition, admissions of the defendants established that Sun’s invoices for products sold to the corporate defendant, totaling $207,551.19, were unpaid. Further, the individual defendants propounded the following interrogatory to Sun: “State the consideration given by Plaintiff to Janet L. Inman for Janet L. Inman executing the Guarantee Agreement identified as Exhibit ‘B’ and attached to Plaintiff’s petition.” The answer of Sun was: “None.” A similar interrogatory was propounded and answer given in respect to Ronald C. Inman.

On February 27, 1985, counsel for each party appeared before the trial court for a pre-trial conference. The court took up the individual defendants’ motion for a summary judgment. That motion alleged the letter of guaranty was executed after the execution of the Industrial Distributor Agreement and failed by reason of lack of consideration. The motion incorporated the interrogatories and answers to those interrogatories concerning consideration. The docket entry concerning the hearing upon that motion reads as follows: “Motion for Summary Judgment on behalf of Ronald C. Inman and Janet L. Inman taken up, evidence adduced, arguments of counsel, Motion taken under submission.” No transcript or other record of that hearing has been filed with this court.

Then, by agreement of counsel, Sun’s motion for a summary judgment on Count I against the corporate defendant was sustained. Sun’s motion for summary judgment on Count II was taken under submission. Each side was “granted leave to prepare and submit to Court briefs and proposed judgment on or before March 15, 1985.”

On March 26, 1985, the following docket entry was made: “By conference telephone call this date, plaintiff appeared by counsel, Michael P. Riley; defendants appeared by counsel, Jerry L. Wilkerson. Parties agreed to submit Stipulation of Facts and proposed Judgments so that Count II may be decided by the Court on its merits. Count II remains under submission.” The judgment complained of is dated April 15, 1985. It first recites, “Plaintiff and Defendants stipulate that Count II of Plaintiff’s Petition may be decided by the Court on the merits and not on the Motions For Summary Judgment heretofore filed.” It continues, “After considering the evidence, briefs and proposed findings filed by counsel the Court finds that no consideration was given by Plaintiff to Defendants Ronald C. Inman and Janet L. Inman for their execution of the guaranty agreement dated August 4, 1977.” The trial court made a further finding that the contract dated February 10, 1977, had been materially changed by subsequent contracts. The judgment upon Count II was in favor of the individual defendants and against Sun.

Sun’s first point is directed to the issue of consideration for the letter of guaranty. The individual defendants argue that the applicable principle of law has received the following expression: “If the contract of guaranty occurs subsequent to the original, it must have a new and independent consideration, not merely the performance embraced in the original.” Springfield Television, Inc. v. Gary, 628 S.W.2d 398, 403 (Mo.App.1982).

By its first point, Sun does not contend that principle is not applicable. Rather, it contends the trial court erred when it held “that there was no consideration for the continuing guaranty agreement, because respondents executed the continuing guaranty agreement in order to obtain an increased line of credit from appellant which appellant supplied, thereby constituting consideration.” To support that point Sun argues: “In the case at bar, the stipulation of facts states that ‘Ronald C. Inman and Janet L. Inman executed the Continuing Guaranty Agreement, ... in order to obtain an increased line of credit from Plaintiff.’ ”

The record before this court consists of the legal file. That file, as originally presented, consists of 130 pages and contains a multitude of documents. Absent, however, is any stipulation of facts. A [746]*746supplemental legal file consists of suggestions in support of each motion for summary judgment which included proposed findings of fact filed with the trial court by Sun and the individual defendants. The suggestions of Sun contains a proposed finding of fact that the individual defendants executed the continuing guaranty agreement in order to obtain an increased line of credit for plaintiff.

As noted, the judgment recites “Plaintiff and Defendants stipulate that Count II of Plaintiff’s Petition may be decided by the Court on the merits and not on the Motions for Summary Judgment heretofore filed.” Sun did not in the trial court, and does not in this court, attack that finding by the trial court. Nor did Sun, before filing its suggestions with the trial court, by motion seek to avoid the agreed submission of the case. Nor did it by a post judgment motion in the trial court seek relief because of an improvident submission or premature disposition of the case. See 3 Am.Jur.2d Agreed Case § 28 and § 29 (1986). At the time of the telephone conference and agreed submission, the trial court had before it the evidentiary material heretofore mentioned.

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Bluebook (online)
714 S.W.2d 743, 1986 Mo. App. LEXIS 4265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-oil-co-of-pennsylvania-v-inman-oil-co-moctapp-1986.