Sutter v. Raeder

50 S.W. 813, 149 Mo. 297, 1899 Mo. LEXIS 25
Supreme Court of Missouri·Decided April 14, 1899·Published·Cited by 15 cases

Opinion

MARSHALL, J.

Action for damages for breach of contract.

In 1891, Sutter, Raeder and M. F. Taylor leased certain premises, on the comer of Ninth and Olive streets, in the city of St. Louis, from John W. Kaufman, for a term of ninety-nine year’s, with the purpose of erecting a new building thereon. The lease was not signed by Kaufman’s wife, and contained a clause of forfeiture if any instalment of rent remained unpaid for ten days after it fell due. In consequence of these infirmities, it was found, after several efforts, to be impossible to secure the necessary capital, on the [301] security of tlxe leasehold interest,- to improve the premises, and likewise impossible to sell the lease. The improvements then on the premises were old and unattractive, and in consequence the rents derived from the premises were not sufficient to pay the rent, taxes and insurance or to make necessary repairs, much less improvements. The parties were therefore compelled to meet the excess out of their private resources. On the first of August, 1892, Sutter, the plaintiff, in common with the other parties, had met his responsibility in this respect, having advanced some four thousand dollars for this purpose, and was also liable on two notes — one for $2,500,which was held by defendant for negotiation, and one for $850, which had been negotiated but was not yet due. ITnder the arrangements among themselves defendant owned one-half interest in the lease, and plaintiff and Taylor owned one-quarter interest each. But before the 2d of September, 1892, plaintiff and Taylor had assigned a portion of their interest in the leasehold to IT. J. Meyer, and Taylor had transferred his remaining interest to plaintiff, so that the interests of the parties at that time were: defendant five-tenths, plaintiff three-tenths and Meyer two-tenths. Defendant wanted to get rid of plaintiff as a part-owner of the .leasehold'and wanted to organize a corporation to be called the Central Realty and Improvement Company, with a capital stock of two hundred thousand dollars, to be fully paid up by transferring the leasehold to the corporation, for the purpose of erecting a new building on the premises. Accordingly it was agreed that in consideration of the transfer by plaintiff of his three-tenths interest to defendant, he, defendant, would release plaintiff from his liability on the $2,500 note held by him and would cancel the same, and would also pay the $850 note at maturity, and in addition thereto it was agreed as follows:

“In consideration of one dollar, to me in hand paid, and other valuable consideration,-I agree,
[302] . “l.; That, in case the building project now under consideration for the property bounded on the east by Ninth street, on the north by Locust street, on the south by Olive street and on the west by an alley, in the city of St. Louis, Mo., or a similar building enterprise on the same property costing not less that $750,000, of Tobiah Raeder, Coffin & Crocker are the architects, be an assured fact, within six months from this date I will give to E. A. Meysenburg a note for five thousand dollars, payable in ninety days from the date of issue; this note to be issued when the order has been received by said Raeder, Coffin & Crocker, to proceed with the plans of said building, but in no event later than six months from this date.
“2. In the event said building project, as described above, is an assured fact within the time above stated, the said E. A. Meysenburg shall have the option to choose as payment for the said consideration, in lieu of the said note for $5,000, a note conditioned the same as the note for $5,000, but for the amount of sixteen hundred and sixty-seven dollars and the issue to him of $20,000 of stock in a company to be organized for the purpose of acquiring the present interests in the said property, having total capital of $200,000.
“3. In the event that the building project above described is not an assured fact within six months from this date, I will issue to said E. A. Meysenburg $20,000 in stock of the company to be formed as above described, provided said E. A, Meysenburg calls for said amount of stock within six months from this date, and pay for the proper share falling to this amount of stock of the expenses incurred in carrying the above described property from August 1, 1892.
“Henry Raeder.
“St. Louis, September 2, 1892.”

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Sutter v. Raeder, 50 S.W. 813, 149 Mo. 297, 1899 Mo. LEXIS 25 (Mo. 1899).

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