Washington University v. Royal Crown Bottling Co. of St. Louis

801 S.W.2d 458, 1990 Mo. App. LEXIS 1746, 1990 WL 191417
CourtMissouri Court of Appeals
DecidedDecember 4, 1990
Docket57188
StatusPublished
Cited by62 cases

This text of 801 S.W.2d 458 (Washington University v. Royal Crown Bottling Co. of St. Louis) 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
Washington University v. Royal Crown Bottling Co. of St. Louis, 801 S.W.2d 458, 1990 Mo. App. LEXIS 1746, 1990 WL 191417 (Mo. Ct. App. 1990).

Opinion

CRANE, Judge.

Defendants Royal Crown Bottling Company of St. Louis [Royal Crown Bottling], Royal Crown Companies, Inc. [Royal Crown], Universal Foods Corporation [Universal] and American Winery, Inc. [American Winery], [collectively referred to as the defendants] appeal from a judgment granting declaratory judgment and a decree of specific performance in favor of plaintiff The Washington University [the University]. The court decreed that the twenty-five year net lease between the University and Royal Crown Bottling required Royal Crown Bottling to make all repairs to the buildings owned by the University and leased to Royal Crown Bottling. The trial court held that “all repairs” included structural repairs. The court ordered Royal Crown Bottling and Royal Crown to make specific repairs, reimburse the University for emergency repairs made during litigation, and make all repairs that would become necessary in the future. The court further ordered all defendants to pay $125,-934.78 in attorney’s fees and expenses. We affirm the portion of the judgment which grants declaratory relief and specific performance and reverse the portion of the judgment which awards attorney’s fees and expenses.

On July 31, 1976, Royal Crown Bottling entered into a 25 year lease with the University for four parcels of real estate in the City of St. Louis. These properties had been the subject of a preexisting lease between the parties and were used for soft drink bottling and distribution operations. The new lease provided that a one-story building would be improved and modernized, another one-story building would be demolished and a new building would be constructed. The cost of these improvements was amortized into Royal Crown’s rental payments over the life of the lease. The lease specifically provides that it is a “net” lease. The repair clauses provide that lessee will repair all damage and keep the premises in repair. On July 30, 1979, Royal Crown executed a Guarantee of Lease whereby it agreed to honor all of lessee’s obligations under the lease, “... including, but not limited to, ... repair, .... ”

On August 13, 1979, the parties signed a First Amendment to Lease which added three parcels of property to the original lease. [The original lease together with the amendment will hereinafter be referred to as the “master lease”]. The three additional parcels of property were acquired by the University at the request of Royal Crown Bottling. The costs of land acquisition, construction of a parking lot, and specific repairs and improvements to the existing premises were likewise amortized into Royal Crown’s rental payments over the life of the lease. While Royal Crown Bottling occupied the premises, all needed maintenance and repair work was performed by Royal Crown Bottling at its cost.

On May 8, 1981, Royal Crown Bottling subleased the buildings to Universal. Upon subleasing the premises, Universal contracted and paid approximately $98,000 for roof and deck work and $300,000-$400,-000 in repair and remodeling work to the buildings, including replacing portions of the concrete floors. The University was not asked to pay for these repairs.

On April 24, 1985, Universal assigned its sublease to American Winery. The University approved the sublease and assignment with the condition that Royal Crown Bottling was not released from its obligations under the master lease. When American took over the leased property, it continued to make repairs to sewers, walls and doors but did not make roof repairs. In early 1987 the University conducted an informal *462 inspection of the property and found significant problems with the roofs on the buildings. The University requested American to make all necessary repairs. American acknowledged that the repairs were the responsibility of the lessee and advised that the work had been done. The University later discovered that American had not made the repairs.

In the spring of 1987, the University hired Prestige Roofing Design and Consulting, Inc. and the Kuhlmann Design Group to make detailed inspections of the buildings. The two companies reported that extensive repairs, including roofing, tuck-pointing, caulking, painting, and masonry, were needed. The University sent copies of the reports to the defendants along with a letter stating that if the repairs were not undertaken in 30 days the University would do the work and seek reimbursement from them. The defendants denied responsibility for these repairs. This was the first time that a dispute over repairs arose under the lease. Prior to this dispute the University was never asked to pay for any repairs.

Thereafter, the University filed a petition for declaratory judgment and specific performance. The defendants answered that the University was responsible for the repairs and replacements. American and Universal filed counterclaims against the University. The defendants filed cross-claims for declaratory judgments against each other, which were severed for separate trial subject to the stipulation that any order granting relief to the University on its claims would constitute a final adjudication on the merits for the purpose of appeal.

Shortly prior to trial the defendants filed a joint stipulation in which they agreed that certain repair work was needed and that they were responsible for what they characterized as “ordinary repairs” and “routine maintenance”. However, they denied responsibility for any work which they classified as “structural”.

The trial court heard testimony from employees and experts on both sides regarding the necessity and extent of the repairs and made its own inspection of the premises. After trial the trial court entered its Findings of Fact, Conclusions of Law, and Order. The court concluded that the master lease required Royal Crown Bottling to make all repairs, including those that are structural. The court determined that approximately 20% of the then needed repairs were structural and were necessitated by Royal Crown Bottling’s failure to maintain the buildings. The court ordered that all currently needed repairs be made as well as any repair work that became necessary in the future and ordered Royal Crown Bottling to reimburse the University for certain emergency repairs made by the University during the litigation. The court further held that the defendants were jointly and severally liable for $99,112.37 in attorneys’ fees and $26,822.41 in expenses.

Defendants raise nine points on appeal. We will address them in the order in which they were raised.

MOTION TO DISMISS

Defendants first argue that the trial court erred in overruling their Motion to Dismiss. Defendants’ motion, filed on the second day of trial, requested the court to dismiss the First Amended Petition “because it fails to state a claim upon which relief can be granted for the reason that Plaintiff admits in its Petition that it has an adequate remedy of law.” At the hearing in the trial court defendants contended that this admission consisted of the allegations that Royal Crown had an obligation under the lease to make and pay for all repairs and that Royal Crown “breached this lease by failing to maintain and repair the leased premises in accordance with the lease terms.” They further argued that these allegations, combined with a statement in a proposed trial exhibit, constituted an admission that “Plaintiff acknowledges it has a remedy at law.”

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Cite This Page — Counsel Stack

Bluebook (online)
801 S.W.2d 458, 1990 Mo. App. LEXIS 1746, 1990 WL 191417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/washington-university-v-royal-crown-bottling-co-of-st-louis-moctapp-1990.