Sunray DX Oil Company v. Lewis

426 S.W.2d 44, 1968 Mo. LEXIS 1074
CourtSupreme Court of Missouri
DecidedFebruary 12, 1968
Docket52617
StatusPublished
Cited by14 cases

This text of 426 S.W.2d 44 (Sunray DX Oil Company v. Lewis) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunray DX Oil Company v. Lewis, 426 S.W.2d 44, 1968 Mo. LEXIS 1074 (Mo. 1968).

Opinion

GEORGE P. ADAMS, Special Judge.

Defendants-appellants appeal from a decree ordering them to specifically perform certain obligations undertaken by them under a lease with plaintiff-respondent whereby a tract of a little less than an acre, located in the northeast quadrant of the I-70-Noland Road interchange in Jackson County, Missouri was leased to plaintiff.

On and prior to April 25, 1963, defendants were the owners of a number of acres located in the northeast quadrant of said interchange. On the 10th day of May, 1963, and before the actual construction of said interchange, they executed a “station site lease,” dated April 25, 1963, leasing the tract described in said lease to plaintiff for a term of five years at a gallonage rental of one cent per gallon for each gallon of gasoline delivered to said premises by the lessee or its agents, with the further provision that such rental payments would amount to a minimum of Two Hundred Dollars per month.

Plaintiff was permitted to use the site “for a motor vehicle service station for the sale of petroleum products and other merchandise customarily handled by such service stations; and for servicing of motor vehicles; and for the conduct of any other lawful business; and the Lessee is hereby given the right to sublease or underlet said premises.”

Defendants agreed to fill said premises to a grade to be determined by plaintiff, with the cost thereof to be shared on a fifty-fifty basis with plaintiff. Defendants also agreed to construct an “access road” 36 feet in width, running east from the State Highway right-of-way line on Noland Road and abutting the tract along its south boundary, provided “such access road is granted to lessor by the Missouri State Highway Department.” There was no provision for plaintiff to share any of the expenses of the construction of this road.

Defendants were prohibited from constructing, maintaining or operating a motor vehicle service station or permitting the sale of motor fuel or other merchandise “customarily handled by such service stations” on any of their premises immediately adjoining or within three hundred feet of the leased tract.

Plaintiff was granted the option of extending the primary term of the lease for four additional successive periods of five years each, at the same rental per month and on the same terms and conditions.

Plaintiff was granted an option to purchase the premises “on the same terms and at the same price as any bona fide offer for said premises received by lessor and which offer lessor desires to accept.”

The lease further provided that it should not become effective until executed by a Vice-President of plaintiff and that “should the Lessee fail to deliver an executed counterpart of this lease to Lessor on or before *47 ninety days from date hereof, Lessor and Lessee shall be relieved of any further liability to each other.”

Under the terms of the lease, the defendants were required, upon plaintiff’s request, to furnish plaintiff “complete abstracts of title, or proof of insurable title, certified to date, and such other evidence of title as Lessee may request, for examination.”

Within ninety days of the date of said lease, plaintiff, as authorized by the lease, mailed an “executed counterpart” of the lease to defendants.

By the pleadings, the ownership of the premises is agreed to be in the defendants.

In its petition, plaintiff alleged that under said instrument, it was granted a ninety day option to lease the tract described; that the option was exercised by it by executing said lease and delivering the same to defendants within said ninety day period; that defendants refused to recognize the option and refused to deliver to plaintiff satisfactory evidence of their title and refused to perform any of the other duties and obligations undertaken by them “in granting said option and lease.”

In Count I, plaintiff sought a judgment declaring “that the option granted by defendants to plaintiff was valid and that plaintiff exercised said option and holds a valid and existing lease on said real estate and is entitled to possession thereof in accordance with the terms and conditions of said lease and for such further relief as may be equitable.”

In Count II of its petition, plaintiff adopted all of the paragraphs of Count I and prayed “that the defendants be required to specifically perform said option and lease and that plaintiff have such further relief as may be equitable.”

In their Answer, in addition to admitting the ownership of the premises, defendants denied that they were “obligated to recognize the claimed option because none was granted by them,” and denied that they were obligated to deliver any evidence of title to any real property.

Defendants plead further that “if this court should find that the paper writing mentioned by Plaintiff in its petition did in fact constitute an option for ninety days to lease the premises described in said writing that the same is invalid and of no force or effect for the reasons * * (1) there was no consideration for any option; (2) that the description was vague and indefinite and insufficient to enable the location of the area sought to be covered; (3) that “a portion, if not all of the frontage owned by Defendants on Noland Road was contained in an eminent doman (sic) proceeding by the State of Missouri * * * which cause had then resulted in the said Plaintiff (State Highway Commission), obtaining lands of Defendants and in obtaining all of the access said lands had to Noland Road, and that therefore it was impossible for the proposed filling station site to have access to Noland Road * * (4) that the paper writing was indefinite and contradictory; (5) that plaintiff had abandoned its rights under the instrument by rejecting it and making a new and different proposal; (6) that plaintiff was estopped from claiming any rights or benefits by reason of the paper; (7) that it was guilty of laches; (8) that “said paper writing provides for an inequitable and insufficient rental” because defendants would not “be permitted to participate in any of the income derived from the sale of oil ‘and other merchandise customarily handled by such service stations; and for the servicing of motor vehicles; and for the conduct of any other lawful business;’ or to participate in any business which might be carried on by any sub-lessee of said premises.”

In Count I defendants prayed that the court “decree that this Plaintiff has no right, title, interest or estate in or to the lands mentioned in Plaintiff’s petition and for such other and further orders, judg *48 ments and decrees as to the court shall seem just, meet, equitable and proper.”

In Count II of their answer, defendants adopted all of the paragraphs of Count I of the answer, denied the paragraphs of Count II of the petition and prayed that the court “deny the relief sought by the plaintiffs (sic) herein and for such other and further orders, judgments, and decrees as to the Court shall seem just, meet, equitable and proper.”

In its reply, plaintiff denied all of the affirmative matters pled in defendants’ answer.

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Bluebook (online)
426 S.W.2d 44, 1968 Mo. LEXIS 1074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunray-dx-oil-company-v-lewis-mo-1968.